Rebuilding my credit

[amclaughlin42]

I am wanting to rebuild my by credit. I don't have a ton of money or time. Currently I have one OPEN credit card which is my discover which is over its balance due to interest charges. 

OPEN ACCOUNT:
DISCOVER- $4567 - CL - $4500 - 30 Days Past due in 11/2016 - Has been current since then- Going to ask for goodwill adjustment

Personal Finance Company - $3087 - No Lates

CLOSED ACCOUNT

SimplyMac- Synchrony Bank - $1340 - CL $1500 120 Days past due - in collections

BabiesRUs - Synchrony Bank - $2,543 - CL $2000 - Charged Off 120+ Days past due

Capital One - $604 - CL $500 - Charged Off 120+ Days Past Due

Target - $530 - CL $500 - Charged off 120+ Days Past Due

WOW! Cable - $500 - Charged Off 120+ Days Past Due

All other accounts have been paid down and closed. 

I need advise on the best way to tackle this. Me and my wife are planning on relocating and possible purchasing a new home in 3 years, as well purchase a new car in hopefuly 2 years. I lost my job in October and I wasn't able to pay things down. I was able to save the discover...

I do have a month car payment, but thats to family and its not on my credit report. I will be changing jobs, and not making as much in a 1-3 months. So Whatever I need to do, needs to be as soon as possible. I am also returning back to school in August and I might need to take out some extra non FAFSA Student Loans. So I want to fix any past issues. 

Do I pay off a CO?

Do I just focus on OPEN Accounts? 

Do I try and save the simply mac card? 

What is the best method to improve my score and appearance to future creditors? 

I do not want anymore credit cards if possible! Atleast not until I am free and clear from any credit mishaps!

[rmduhon]

Get the Discover under the limit (by as much as possible) and pay/settle the other cards since they are affecting your UTI also which is killing your scores.

[amclaughlin42]

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@rmduhon wrote:
Get the Discover under the limit (by as much as possible) and pay/settle the other cards since they are affecting your UTI also which is killing your scores.

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But if I can only focus on one or maybe two accounts which should I focus on? 

Syncrony and Discover since they are not charged off? Should I try and save Synchrony from being charged off?

According to my recent FICO Report, the only collection I have is on WOW! Cable. But when I call the OC they say its gone to collection and that was 2 months ago

[rmduhon]

If it's in collections then it's already been charged off. So I'd focus on as many charged off cards that aren't in collections as possible, starting with the Cap1.

[amclaughlin42]

All Closed Accounts are currently in collections. I've called the creditors and have asked them. Synchrony is still atempting to collect, I just got a recent bill in the mail about a week ago from them. That account is with CA but not reported as CO

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@rmduhon wrote:
If it's in collections then it's already been charged off. So I'd focus on as many charged off cards that aren't in collections as possible, starting with the Cap1.

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[medicgrrl]

I would work on the Discover first so they don't close the account. Also, check the SOL for the collections/CO accounts. If any are still within SOL, work on those to prevent a judgement from happening. Then work on the remaining.

[Anonymous]

My 2 cents - I wouldn't stress about the Disc being over the limit.  You're not trying to buy the car and house now.  Having it over the limit now won't matter then, so long as you can get that balance as close to 9% as possible when that time comes.  For now, I would just do everything possible to pay the minimum (and extra whenever you can!) to keep it open and paid while you're in this time of transition.  Based on your current and impending income circumstances, it doesn't seem that handling the COs right now should be a concern.  It seems as though any funds you may be able to throw that way would jeopardize your status with Disc.  Try to keep it open and meet those minimum balances and then turn your focus to the closed accounts when you're in a more stable financial situation (after you've settled into the new job).  

I think medicgrrl's advice is sound, though, about knowing what those SOLs are.  I wouldn't call them or 'rock the boat', if you will, so long as they're not sending you anything about taking you to court.  There are probably bigger fish they're trying to catch.  If they do end up sending you something, then there are steps you can take to ameliorate that situation, but I wouldn't get bogged down with it for now.  I would just try to do everything possible to keep that DC happy.  When you're on the other side of this, the age of that account and the good payments are what will show nicely for you and keep your score afloat.  The utilization will be on your side when the time comes because between now and then you'll be working on paying it down.  Are there any bills that you can pay with that card?  If so, pay it to the card then pay the bill.  This will keep your interest rate lower, too, as they'll assess the interest on charges older than ... 25 days, I believe it is.  It will also keep you from having a late fee assessed and reported to the CBs. 

All the best to you!  You've definitely come to a great place to learn more about this topic!

Almost forgot - why are you not attempting to get a FAFSA based student loan?  If you qualify, which it seems as though you would, you may even get money that is to cover room and board, which you can apply to your DC and living expenses.  You could put funds onto your card for the books, and pay with your card.  I went through a time where this was how I survived, which is why I'm curious about why you seem averse to going this route.  It may be worth considering, is all.

[amclaughlin42]

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@Anonymous wrote:

My 2 cents - I wouldn't stress about the Disc being over the limit.  You're not trying to buy the car and house now.  Having it over the limit now won't matter then, so long as you can get that balance as close to 9% as possible when that time comes.  For now, I would just do everything possible to pay the minimum (and extra whenever you can!) to keep it open and paid while you're in this time of transition.  Based on your current and impending income circumstances, it doesn't seem that handling the COs right now should be a concern.  It seems as though any funds you may be able to throw that way would jeopardize your status with Disc.  Try to keep it open and meet those minimum balances and then turn your focus to the closed accounts when you're in a more stable financial situation (after you've settled into the new job).  

I think medicgrrl's advice is sound, though, about knowing what those SOLs are.  I wouldn't call them or 'rock the boat', if you will, so long as they're not sending you anything about taking you to court.  There are probably bigger fish they're trying to catch.  If they do end up sending you something, then there are steps you can take to ameliorate that situation, but I wouldn't get bogged down with it for now.  I would just try to do everything possible to keep that DC happy.  When you're on the other side of this, the age of that account and the good payments are what will show nicely for you and keep your score afloat.  The utilization will be on your side when the time comes because between now and then you'll be working on paying it down.  Are there any bills that you can pay with that card?  If so, pay it to the card then pay the bill.  This will keep your interest rate lower, too, as they'll assess the interest on charges older than ... 25 days, I believe it is.  It will also keep you from having a late fee assessed and reported to the CBs. 

All the best to you!  You've definitely come to a great place to learn more about this topic!

Almost forgot - why are you not attempting to get a FAFSA based student loan?  If you qualify, which it seems as though you would, you may even get money that is to cover room and board, which you can apply to your DC and living expenses.  You could put funds onto your card for the books, and pay with your card.  I went through a time where this was how I survived, which is why I'm curious about why you seem averse to going this route.  It may be worth considering, is all.

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As far as SOLs go, since it does vary by state, is that the state of my residence since they are trying to collect a debt against me or is it based on the home office locations state? Sorry for the confusion. 

As far as FAFSA based Student Loans, I will be taking those out, but it doesn't cover everything I need it to. 

[haleyjen]

If the Simply Mac is still open and you can stop it from being a charge off, I would, and try to GW the late payments later on.

[WayUpto850]

Greetings amclaughlin42,

I have found Consumer Credit Counselors (Money Management International, MMI) to be very helpful in developing a Budget and Debt Management Plan. There is no cost for their counseling advice. And you can choose to make the payments on your own or have MMI staff call your creditors and negotiate a repayment plan.  In addition, MMI staff will make the agreed upon payments and keep records for you should you ever need them (i.e.: defend in court).

https://www.moneymanagement.org

I wish you weel in your ability to reach your financial goals!!