I have been reading these forumss for a couple of years now, and I would like to thank everyone for providing such useful information and sharing your stories. I am one of those people that thought that I would NEVER be able to obtain any credit.
Long story short, when I first found this community my credit scores were in the 400's across the board mainly due to accepting every line of credit I was offered in college, with no understanding of the credit system or how to properly manage my finances. Once I graduated, I had also had a ton of student loans that went into default (about $60,000 worth.)Not to mention, that while I had a ton of fradulent entries to my credit report due to Identiy theft.
I make decent money, but anytime I would apply for ANYTHING I either got a flat out denial, or when it came to things like cell phones, they wanted astronimical desposits. I learned to live solely off cash and carry.
After coming here I put a plan of action together. The first was to address the ID theft. I was able to get everything deleted after allot of time, patience, and consistency in dealing with the CRAs and CAs. Needless to say, that was no easy feat.
Feeling confident, I then started attacking my actual deliquencies and managed to get them to do "pay for deletes." After seeing a jump in my score (not a massive jump) I then decided to get on top of those student loans. I did a consolodation, and then asked the orginal serving companies if they would remove the entries on my report. Some did, some did not. However they will fall off in time so I just let that alone and got on the path of actually apllying for credit.
The first thing that I applied for was the BOA secured card. I only put $400 on it and after reading everyhting here about making multiple payments to keep down the utilization and show my ability to pay, I decided to take the leap and ask for an early graduation. To my surprise, I was graduated to an unsecured card with a $1000 limit.
But before getting that graduation, I used the "cart trick" for commentiy and got a couple of commenity cards. They started off with low limits of $250, but after paying on them and requesting increased they have collectively increased by about $1200. I haven't attempted to get them increased any further as I was just using them as positive trades.
After getting those increases, I applied for Capital one. They started me off in their Credit Builder Program with a $300 limit. After making my 5 payments the card automatically increased to $500. ***I'm wondering if I can ask for more considering every card I have has a higher limit than that? Any assistance on that matter would be greatly appreciated. I searched the forums, but could not find an answer. I also called customer service with a general inquiry and they told me that all cards that start off at $300 are automatically increased to $500 after 5 payments. I have never been late on this card or any of my others,and I ALWAYS make muliple payments because the limit on this card is so low. It has cash rewards so I use it all the time to collect them.
So after getting the Cap1 QS, I did accept an offer from First Premier. Initial limit $750. I have my cell phone on automatic bill pay on this card, and that is it. I understand that it isnt the most desirable card to have in my collection, but for now it is doing what I need it to do. Im not too concerned about the fees as the American Express card I want to eventually get has higher annual fees, and I feel like it is preparation.
The next thing I did was obtain a personal loan through my credit union. I was shocked that I was approved and at a very low interst rate.
After that I went looking for a vehicle just to see what was out there, and got suckered into actuallying applying. I didnt think I would be approved, but I was by three different financing companies. I didnt really like the interest rates however so I decided to decline and just wait. I have mupiple vehicles already, and they are all paid off.
Feeling good, I applied for the Barclay's card and DUN DUN DUN... got the 7-10 days message. After recieving my denial letter, I called the backdoor number and spole with a very nice representative who was impressed by my journey of improvement. We talked about my past student loans. She saw that I had consolidated and was making regualr payments. She also saw that I have never been late since I started re-building. However she stated that I would have to let those inquires age and she was sure that I would be approved if I apply again.
My last thing was to get the Walmart card . It was logical for me since I shop there ALL the time. They only approved for a $400 limit to start, but I am okay with that. I know that after my fourth payment, I can ask for an increase.
Since getting that card, I have been gardening.
I did all of this in a year's time. My scores have gone from the 400's to 620 TU and I am unsure of my others as I am waiting a bit longer before I pull my actual FICO scores.
I just wanted to say thank you all for contributing to this forum. Considering everything that I have stated above, I would like to know if there is anything that I am missing that I should do next?
Starting Score: 611 (02/28/2014 EQ MyFico) 608 (Barclays TU 03/28/14)