Spirit Lifting Progress!

[Anonymous]

Ok!!!! So I logged in to check my scores (haven't been on in almost 2 weeks) and I must share this small but awesome update:

Equifax was a 571 and is now a 609! 
Transunion is still a 571 and hass been for a while now! 

Experian was a 571 and is now a 603!

*I had a charged off credit card and decided to pay $100 on it and that gave me a 38 point increase with equifax. It also brought my overall uti from 111% to 91%.

*I also had a loan of $4800 and made monthly payments until February 2015 and I paid off $2200 to close out the account. I had one late payment with them in July 2014. They updated the account to closed, paying as agreed and deleted all of the payment history!

This made me sooooo happy! I've been struggling since November to get my scores up to purchase a new home and it seems as if im finally on the way!!!!

[StartingOver10]

Congratulations! Sounds like you have a great beginning!

Do you have at least 3 tradelines reporting that are open and postive?  This is critical if you are applying for a mortgage. They want to see at least 12 months of payment history with no lates. 3 cc accounts will work. You do not need to have large credit lines at all. To optimize your score make sure two of the three are zero balance and the third  reports a balance between 1% and 9% of its individual credit line. 

[Anonymous]

Thanks for responding!

The open accounts i have are: 

*finger hut credit of $230 with a balance of $150

*credit one credit of $300 with a balance of $300

*a $300 loan with my bank i pay monthly $25

I had a first premier card but they closed it bc my bank did not authorize payments from a prepaid card account. It was a credit of $300 with a balance of $59 (I still pay on time).

I can't get approved for capitol one or discover because of two delinquent account on my credit.

Any advice?

Below are accounts currently being listed on my credit reports:

Equifax

Enhanced Recovery Company (Refused to PFD)

Date Reported: 01/2015

Date Assigned: 11/2014

Creditor: ATT

Original Amount: $796

D.O.1st.D: 08/2011

Status: D-Unpaid

Certified Recovery Systems (Agreed to PFD)

Date Reported: 12/2014

Date Assigned: 03/2014

Creditor: St. Jean

Original Amount: $1590

D.O.1st.D: 06/2013

Status: D-Unpaid

Transfinancial, Inc. (Paid last year) (Refused to PFD)

Date Reported: 01/2015

Date Assigned: 01/2012

Creditor: Woman's Hopital

Original Amount: $89

D.O.1st.D: 10/2010

Balance: $0

Status: Paid

Transunion

Certified Recovery Systems (Agreed to PFD)

Placed for Collection: 03/13/2014

Balance: $1625

Original Amount: $1590

Status: Open Account

Enhanced Recovery Company (Refused to PFD but woudl SFL)

Placed for Collection: 11/29/2014

Balance: $796

Status: Open Account

Equidata (Agreed to PFD)

Placed for Collection: 11/24/2012

Original Amount: $226

Status: Open Account

Neighbors Federal Credit Union (Currently Paying) (Refused to PFD)

Date Opened: 5/1/2008

Status: Charge Off

Date Closed: 06/30/2013

Balance: $557

**Made a payment of $100 last week

Experian

Certified Recovery Systems (Agreed to PFD)

Date Reported: 03/01/2014

Status: Open

Balance: $1625

Original Amount: $1590

Neighbors Federal Credit Union (Refused to PFD)

Date Reported: 5/1/2008

Status: Closed - Charge Off

Original Amount: $557

**Made a payment of $100 last week

Enhanced Recovery Company (Refused to PFD but would SFL)

Date Reported: 11/1/2014

Status: Closed

Original Amount: $796

Equidata (Agreed to PFD)

Date Reported: 11/1/2012

Status: Closed

Original Amount: $226

Transfinancial, Inc. (Refused to Delete)

Date Reported: 1/1/2012

Status: Paid - Closed

Original Amount: $89

Balance: $0

[creditstalker]

That is WONDERFUL NEWS....Keep up the great work :-)

[StartingOver10]

Pay off your credit one account.  Are they charging you a "monthly annual fee" yet? They normally charge you the annual fee in 12 monthly installments so you don't need to have any balance reporting other than that fee which you can pay off each month until your scores improve enough to get rid of them. Keep the account open though because you only have two revolvers now.

Pay down your fingerhut account to less than $20.  Do they have a monthly fee?

Get a secured cc. You will have to search on here to see which ones are good to have - some are better than others, but I don't know which ones are good.

Get your first pfd's off your reports right away.

Do the one that will do a Settled in Full

Continue to pay the CU debt until it is paid in full - that one will look really bad if it is outstanding when you apply for a mortgage.

Then see where you are once the above is done. You can have up to $2000 in total collections for an FHA loan - not for USDA.  Not all lenders are the same, some have more strict criteria than others. But FHA itself will insure a loan if your collections total less than $2k and are over (12 or 24 months old, I forget which). If they are newer, pay them off. A paid collection is better than unpaid from a mortgage underwriting POV not a FICO scoring view.

Make sure you also buy the 3B report here and look at your mortgage scores, not your FICO 08 scores. Only the mortgage scores are used. FICO 08 is used for cc's not mortgages.

[Anonymous]

Thank you!

[Anonymous]

Thank you! Finger hut does not have a monthly or annual fee; I know credit one does but I've only had the card since December, so I haven't gotten to that point yet. I will pay them off and close that account as well. I'm working on the PFD Accounts now. That account with ERC I will just have to PIF. I hope as I take care of these issues my scores will continually rise.

Thanks for your feedback!

[Anonymous]

Wow, that seems like amazing progress  for only a few weeks! Well done!

[Anonymous]

Thank you! I have really been trying hard to get things right!

[StartingOver10]

Don't close your credit one account yet. You have already taken the HP and new account hit. Live with it until you get other revolving cc accounts in place and then close Credit One after you have closed on your new home.