WORKING HARD TO REBUILD CREDIT....TIPS?

[bella1013]

So, in the past couple of months I've been doing as much as possible to start fixing my credit.  I paid all my debts, that sadly were in collections for a long period, off in full.  I then sent GW ltrs.  I then got a secured CC for $1,000.00 and an unsecured CC for $500.00.  I'm doing the right thing, only using approx. 10% of my limit and paying off in full every month.  I'm also considering getting a secured loan.  As I am new to all this, does anyone have any other tips on rebuilding my credit besides the obvious, paying my cc on time, etc.  Anthing else I can try doing?  I've gotten mixed reviews on the secured loan thing.  (I was going to get a 12 month secured loan and pay it off in about 5 months.  If I did it, wouldn't want to keep it on my credit more then 5 months or so because in about 6 months I will be applying for a mortgage) 

TIPS??

[sarkell]

Don't. Get a secured loan. You're basically paying for credit at that point. Get rid of baddies helps a lot if you can.

[bella1013]

Thanks!

[DaBears]

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@bella1013 wrote:

So, in the past couple of months I've been doing as much as possible to start fixing my credit.  I paid all my debts, that sadly were in collections for a long period, off in full.  I then sent GW ltrs.  I then got a secured CC for $1,000.00 and an unsecured CC for $500.00.  I'm doing the right thing, only using approx. 10% of my limit and paying off in full every month.  I'm also considering getting a secured loan.  As I am new to all this, does anyone have any other tips on rebuilding my credit besides the obvious, paying my cc on time, etc.  Anthing else I can try doing?  I've gotten mixed reviews on the secured loan thing.  (I was going to get a 12 month secured loan and pay it off in about 5 months.  If I did it, wouldn't want to keep it on my credit more then 5 months or so because in about 6 months I will be applying for a mortgage) 

TIPS??

Installment loans have very little affect on fico scoring. Keep your UTIL between 1-9% you can play with it for a few months to see what works best for you. 

[mnosal9]

Good will Good will Good will letters and when you get declined, Good will some more, send to different people someones gotta say yes. Im still Good willing , I got no no no no no from GEcapital to remove my closed JCP card, so they removed the major derog 60 and 90 day late, took several tries. Never EVER give up Its only impossible if you stop trying.

[donewith600]

Mnosal9 can you give me the address you used to GW jcp. I have a 30 day late I would like to have removed. Thanks!!

[bella1013]

Thanks for the feedback.  I've already sent out my first sets of GW letters and waiting on responses.  I plan on repeatedly sending letters if they say no. 

[guiness56]

An installment loan, secured or not, will help in credit mix.  Making timely payments over time will help.  It is true installment accounts have little affect on your FICO score by themselves.  But positive payment history will and the AAoA will be factored in open or closed.