Rebuilding Your Credit

[Progressive_Credit]

What I am interested in doing is working towards getting a credit card with the highest cash back % I can qualify for that I essentially treat as a debit card for routine purchases, that have been budgeted for, and can be paid back within the month as to avoid interest charges. Secondly, I’m interested in eventually getting a credit card with the greatest long term value (with lowest non-introductory APR possible, and highest possible credit limit as my criteria) for emergencies where it is necessary for me to carry a balance on a card.

My thinking behind this is that the sooner I can start earning cash back on the things I normally buy anyway, establish a positive credit history, and improve my debt-to-credit ratio (one of the reasons for seeking a high limit credit card that I rarely use), the better. I’m also thinking that two credit cards is probably not considered “too many”, and that I should be good there as well.

However, I have an unpaid charge off on my credit report, that I am concerned may get in the way of me trying to do this, particularly if disputes and debt validation are as time consuming, and drawn out of a process as what I hear they are. Another concern is whether or not applying for credit cards will affect me adversely in terms of what the collection agency could, or would do. (Like could they learn of my contact information and employer contact information through a credit card company as to attempt garnishment, or a suit?)

What I’m essentially trying to figure out is if I can move forward before taking care of this, of whether or not this must be taken care of before I can move forward in rebuilding my credit. If nothing else, would it really hurt me to appy for a 1% cash back debit card from say Paypal, or a credit union for the benefit of just cash back if applying for credit cards is not advisable at this time?

[drkaje]

High limit and cash back cards might be pretty difficult to get with an unpaid CO.

Without addressing the CO you might be in the secured realm.

As I inderstand things, paying the CO won't really help, score wise, but will make you look less risky to some lenders.

[newportguy]

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Progressive_Credit wrote:

What I am interested in doing is working towards getting a credit card with the highest cash back % I can qualify for that I essentially treat as a debit card for routine purchases, that have been budgeted for, and can be paid back within the month as to avoid interest charges. Secondly, I’m interested in eventually getting a credit card with the greatest long term value (with lowest non-introductory APR possible, and highest possible credit limit as my criteria) for emergencies where it is necessary for me to carry a balance on a card.

My thinking behind this is that the sooner I can start earning cash back on the things I normally buy anyway, establish a positive credit history, and improve my debt-to-credit ratio (one of the reasons for seeking a high limit credit card that I rarely use), the better. I’m also thinking that two credit cards is probably not considered “too many”, and that I should be good there as well.

However, I have an unpaid charge off on my credit report, that I am concerned may get in the way of me trying to do this, particularly if disputes and debt validation are as time consuming, and drawn out of a process as what I hear they are. Another concern is whether or not applying for credit cards will affect me adversely in terms of what the collection agency could, or would do. (Like could they learn of my contact information and employer contact information through a credit card company as to attempt garnishment, or a suit?)

What I’m essentially trying to figure out is if I can move forward before taking care of this, of whether or not this must be taken care of before I can move forward in rebuilding my credit. If nothing else, would it really hurt me to appy for a 1% cash back debit card from say Paypal, or a credit union for the benefit of just cash back if applying for credit cards is not advisable at this time?

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The answer to this is NO ........ The only way a CA can get your info is from the credit Bureau's when they place the CO on your reports.

[newportguy]

What you need to do is work on building a soild report and open (like 2 ) secured CC"s ...... Cap1 and Wells Fargo have great Secured cards

[guiness56]

No, a CA can't get information from a credit card company.  But, if they are trying to collect a debt, even if they are not on your CR, they can pull it to find out information about you. 

And they do not need to wait until a CO is placed on your CR.

[newportguy]

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guiness56 wrote:

No, a CA can't get information from a credit card company.  But, if they are trying to collect a debt, even if they are not on your CR, they can pull it to find out information about you. 

And they do not need to wait until a CO is placed on your CR.

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What do you think , the first thing they are going to do ??? Place it on your report and get your contact info

[guiness56]

They don't have to wait to put it on your CR before getting your contact info.  They can pull your CR first, get your info, decide if it is worth trying to collect, then put it on your report.

Have you never had inquiries from CAs that are not on your CR? 

[newportguy]

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guiness56 wrote:

They don't have to wait to put it on your CR before getting your contact info.  They can pull your CR first, get your info, decide if it is worth trying to collect, then put it on your report.

Have you never had inquiries from CAs that are not on your CR? 

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No Sir, i can say i have not.

[guiness56]

Well l have. Lucky me. It is perfectly legal. 

[Progressive_Credit]

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newportguy wrote:

What you need to do is work on building a soild report and open (like 2 ) secured CC"s ...... Cap1 and Wells Fargo have great Secured cards

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If I am able to get the charge off removed from my credit report, would I still necessarily need to start out with secured credit cards to rebuild my credit?