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New Contributor
Sheisaking
Posts: 74
Registered: ‎01-07-2013
0

What now?

I have been working so hard to rebuild my credit. I had no idea what I was doing when I was younger so I bought things I couldn't pay for and managed my finances poorly. Over the past year, I have made really great improvements. I have been able to get 7 of my 10 collections deleted from all 3 credit bureaus. I have recently opened a capital one secured card and it has started reporting with 5% utlization. I would like to purchase a home soon. The problem I am having is that with me having all of the negative things deleted, i don't have too much else on my credit report. I have a vehicle loan for the past 19 months that has been paid on time each month and 2 student loans from 5 or 6 years ago that were also paid on time every month.  Those accounts are closed. I would like to add other things to build my credit but i'm not sure what do next. I want to apply for a card i'm sure I will get, but not another secured card. Any advice. What steps might I take now? Any advice at all would really help.

 

Oh, and just incase you need to know this the 3 collections that remain:  2 will fall off (7 year mark) next year. The other is a vehicle reposession that happened 3 years ago.


Starting Score: 400s
Current Score: Equifax: 676, TransUnion: 710, Experian: 721
Goal Score: 750 or higher


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New Member
benjita
Posts: 16
Registered: ‎07-24-2013
0

Re: What now?

If you are thinking of buying a home within the next year I wouldn't appy for anymore credit. All you need are three active tradelines. If you need more credit, see if you can get a CLI on existing cards with a soft pull. Utilization is huge and something you have control over, so focus on that if you can. 

New Contributor
Sheisaking
Posts: 74
Registered: ‎01-07-2013
0

Re: What now?

Thank you for responding. When that time comes for me to buy, the only active line I will have will be my credit card. My car will be paid of by then. Hopefully, that won't be a problem.

Starting Score: 400s
Current Score: Equifax: 676, TransUnion: 710, Experian: 721
Goal Score: 750 or higher


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Member
AllyInSac
Posts: 12
Registered: ‎06-24-2013
0

Re: What now?

This is actually a subject I've learned a lot about recently!

 

I just closed on my home...and believe it or not, just 10 months ago, I had a credit score in the 400s!

 

Like you, I was young and stupid...too many credit cards, not enough income, yada yada yada!  Well, when I ran my reports earlier this year, I found that there was a ton of information that was incorrect, and it was hindering my score from rising.  Bada-bing...after a few of those accounts were deleted my score sky rocketed 130 points.  Then I got a US Bank Secured card with a $300 balance and just kept it under a 10% balance.  Then, I was added as an authorized user on one of my fiance's credit cards and it jumped again.

 

What a lot of people dont know is there are a number of factors that go into qualifying for a mortgage.  The most important is the ability to pay the loan monthly.  I qualified for an FHA loan with a credit score of 630, which isnt wonderful, but not really horrible either.  What got me over the threashold was the fact that they looked at 3 years of tax returns.

 

I know this is a lot...but, I hope it helped a little :smileyhappy:


Starting Score: 03/13 ESP-457 TU-503 EQ-505
Current Score: 09/13 ESP-740 TU 662 EQ-661
Goal Score: 750


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New Contributor
Sheisaking
Posts: 74
Registered: ‎01-07-2013
0

Re: What now?

Thank you for your feedback allynsac!!! This really gives me hope!! I do have a couple of questions. Did you still have collections at the time you qualified? And did you have any other open accounts aside from the two credit cards? Thanks in advance.

Starting Score: 400s
Current Score: Equifax: 676, TransUnion: 710, Experian: 721
Goal Score: 750 or higher


Take the myFICO Fitness Challenge

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