Student with bad credit

[sailoholic]

Howdy Y'all,

I am student with a poor credit history. Here is the dirt:

Equifax: 599 account age 4 months

One open account (Student loan) of 263 in good standing

Experian: 579 account age 4 months

One open account (Student loan) of 263 in good standing

Transunion: 585 account age 2 years 11 months

One open account (Student loan) of 263 in good standing

two accounts in collections for $285 and $505 that were paid in full several months ago

one account in collections for $151 that was PAID today, dispute open, and should be changed within 30 days.

I have applied for many unsecured credit cards, even those with high interest rates, and found nothing. I was also just rejected for a secured credit card through my bank for $500

from student grants, I have a yearly income of about $21000 and pay $575 in rent.

What can I do to improve my credit?? I am extremely new to this so any all information is appropiate.

[Whitneyy]

Welcome to the forums!

Since you paid off your collections, you could send off Goodwill letters asking them to delete the CLs, it doesn't always work and takes persistence, but seeing how you already paid your balance, I have read here that some collection agencies will remove them with no issue, its just a matter of sending off your letters.

[baller4life]

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@Whitneyy wrote:

Welcome to the forums!

Since you paid off your collections, you could send off Goodwill letters asking them to delete the CLs, it doesn't always work and takes persistence, but seeing how you already paid your balance, I have read here that some collection agencies will remove them with no issue, its just a matter of sending off your letters.

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+1

Also try secured cards from Cap 1 and Bank of America. You need to build some positive revolving history to increase scores.

[sailoholic]

When I spoke with one today, they said that there was nothing they could do. Should I call them again? Or am I better off spamming them with letters? If the latter, what should the letter compose of? 

[sailoholic]

Hey!

I applied for one today through my bank (Homestreet Bank of Washington) (issued by Elan Financial Services) but was denied. Ill see what exactly the issue is in a few days in the mail, hopefully.

Are some secured cards easier to get than others? 

I was going to wait for the letter/explanation to come in the mail, wait for the unpaid balance on my TransUnion score to change to paid, and then try again.

Thanks for the quick responses!

[09Lexie]

Welcome to the forum.  Sounds like you are racking up inq's and that's not good.  SDFCU is a secured card without a HP- start with them.  In the meantime, let your CR's update, keep sending the GW letters and in 6 mos you'll be in a better situation. 

[sailoholic]

Can you explain what exactly a goodwill letter is? Should I call them? Really, I have no idea and I am new to all of this.

Also, i googled SDFCU and it appears I have to be a gov. employee to get an account there? Also, what do you mean by "without an HP"?

Do all INQ's matter equally, whether they are from a utility, myself, or a credit card?

Would taking out a larger student loan help my score? I also have a loan for a measely 288 dollars, would repaying that off right now be beneficial?

[ceemee2203]

First thing's first, you need to slow down. No more applying for things until you know a little more about what's going on.

Can you explain what exactly a goodwill letter is? Should I call them? Really, I have no idea and I am new to all of this.

A Goodwill letter is communication from you to an Original Creditor (OC) or Collection Agency (CA) asking for goodwill or help in removing specific reporting of a tradeline like lates, status, comments, or even removing the reported tradeline entirely.

Also, i googled SDFCU and it appears I have to be a gov. employee to get an account there? Also, what do you mean by "without an HP"?

I am a member of SDFCU and I don't work for the government. Go to their website and open a Savings account first (the instructions will tell you how to open an account w/o being a member of the State Department). Then I believe you have to call in to get a credit card w/o a hard pull. 

However, before you do that, you should probably read this forum and a few others (google will help) where people who have been where you are answer the questions you have.

Do all INQ's matter equally, whether they are from a utility, myself, or a credit card?

There are hard inquiries and soft inquiries. Soft inquiries do not affect your credit score and are only viewable to yourself. Hard inquiries (which you get when you apply for a credit product like credit cards, apartments, and the like. Your credit score usually takes a hit after the initial hard pull but will bounce back after a few months. Too many hard credit inquiries can signal to other creditors that you are "hungry" for credit and might make those other creditors wary of granting you credit.

Would taking out a larger student loan help my score? I also have a loan for a measely 288 dollars, would repaying that off right now be beneficial?

Loans, when handled responsibly can signal to creditors that you are good at managing your finances. However, I am not a fan of taking out loans for this reason alone, personally. Other people might disagree.

You're still young, which means you have time on your side. Part of what helps your credit score is time (or the average age of your accounts). I say, don't take out loans that you don't need unless you are certain you can pay them back; otherwise, you will only give your future self issues that you presently don't need.

Please read the stickies. They will provide you with very valuable information.