What are my next steps to rebuild??

[Anonymous]

MyFico scores are 640 for EQ, TU and 599 for EX. I have 2 collections and 14 inquiries that should start to fall off. I want to start building good TL. Are there any suggestions on what cards, what loans, etc. to begin building positive history? I have a CapOne card with a positive 6 month history, I have a Fingerhut TL with 2 years positive history. That's all the cards and TL I have. I do have credit union loans that are on payroll deduction so they are positive. Any advice???

[Anonymous]

Trust me, I'm no expert in this as I am rebuilding myself, but there is also the factor of available credit vs usage - meaning, if you have a line of credit or a credit card with little or no balance, that does a fair bit for bumping your score. Since you only have the two cards, it may be worth looking into either an additional card or maybe a credit increase on your Cap One card? Or maybe a line of credit through your credit union.

[Sandman771]

With those scores, you should be able to get a third CC possibly through your local CU for a small SL? 

Also I would check the pre-qual sites for the major cards to see if you have one there. 

Worst case scenario you could get a secured card to have that third card. 

The perfect scoring scenario is three cards, two of which report a zero balance and the third reporting less than 9% balance. get that going and let the bad stuff fall off and you'll be cooking with gasoline. You can also start a PFD campaign on those collections to try to get them off.

I've always said that a PFD > Paid Collection> unpaid reporting collections. 

[Anonymous]

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@Anonymous wrote:

MyFico scores are 640 for EQ, TU and 599 for EX. I have 2 collections and 14 inquiries that should start to fall off. I want to start building good TL. Are there any suggestions on what cards, what loans, etc. to begin building positive history? I have a CapOne card with a positive 6 month history, I have a Fingerhut TL with 2 years positive history. That's all the cards and TL I have. I do have credit union loans that are on payroll deduction so they are positive. Any advice???

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I would start by applying for a second Cap One card. Also try applying for a Discover Secured card - if used wisely it can turn unsecured in less than a year.

[Anonymous]

Thanks guys, was just approved for $1200 with the Discover It card. 

[Sandman771]

Thats a great approval! I don't have Disco, but I think they do CLIs every 6 months or so? Someone else can chime in on that one. I'd put those other two in the sock drawer after I PIF and just let them report zero and keep that disco at less than 9% reporting but more than $5.  So never let it report more than $108 on a statement and your scores will go up. If the utilization goes up in any given month, you'll take a points hit, but it is temporary until you get the UTI back under control. Again great approval.