Where to Start?

[tealrobinson]

I just signed up for the Ultimate 3B package and have printed off my 3B report so I can start addressing the skeletons in my closet (so to speak). I'm 100% committed to doing whatever I have to to get my credit together, I just am not sure where I need to start. Someone care to point me in the right direction or give me some advice on what to tackle first? This is all so new and I just don't want to make things worse than they already are. Thank you! (:

[Anonymous]

Tell us about your reports and score.

[tealrobinson]

Okay!

Revolving Accounts: 0

Installment Accounts: 17

• 5 are in good standing
• 1 I just got sorted out about 2 months ago
• 10 are student loans
• 1 is dropping off in June

Collections: 22

• 5 are assorted collections from when I was unemployed for 3 years
• 14 are medical from the above period
• 2 are old utilities
• 1 is for our library, I've been fighting it since my apartment burned down (obviously the books went with it) but they aren't really working with me.

Mortgage Accounts: 0

My scores are

• EQ 534
• TU 541
• EX 573

[cmony787]

@oh wrote:

Okay!

Revolving Accounts: 0

Installment Accounts: 17

• 5 are in good standing
• 1 I just got sorted out about 2 months ago
• 10 are student loans
• 1 is dropping off in June

Collections: 22

• 5 are assorted collections from when I was unemployed for 3 years
• 14 are medical from the above period
• 2 are old utilities
• 1 is for our library, I've been fighting it since my apartment burned down (obviously the books went with it) but they aren't really working with me.

Mortgage Accounts: 0

My scores are

• EQ 534
• TU 541
• EX 573

---

First you need to get some revolving credit, ideally 3 cards in total with only 1 showing a balance (keep balance under 10% total utilization)

• Best bet is to try Capital One 1 Platinum and/or Quicksilver.  Other threads show people have qualified with similar scores.
• If you do get approved for Quicksilver, immediatley apply for Platinum as well....Capital One will help grow with you and credit line increases are frequent.
• If you don't get approved for unsecured credit card, go the secure route with Capital One and/or your local credit union (Join USAA or NFCU if eligible)
  • Use these cards as builders...dont charge more than what you can pay off

Next start on those collections

• Research Pay For Delete and Debt Validation process.  Educate yourself with what steps to take and how....Read the sticky threads
• Medical Bills....search HIPPA and medicall bills collections.  Again read read read what other people have already done and apply to your situation

Do you have any lates on your installment accounts?  If so, research GW (Goodwill) letters to attempt for removal of those bad 30/60/90 day lates

This credit rebuilding is a process and doesnt happen over night.  Just stay motivated and soak up as much knowledge as you can through the forums.

Good Luck and Welcome!

[huck1081]

I would start with a study of the wealth of information in this thread!

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Helpful-Rebuilding-Threads/td-p/224981

[tealrobinson]

Thank you both! I will definitely get to reading!

[kjm79]

Go to annualcreditreport.com and pull your reports from each bureau.  You get one report for free each year from the bureaus. These reports will give you more information. You can use MyFico to monitor your scores and reports. You can also use Credti Karma to monitor TU and EQ reports.  After this first year of free reports, space out the reports quarterly so you're getting access to a new report every 3 months instead of just once a year. 

Go through your reports from annual credit report and create yourself a spread sheet that lists all of your negatives. The reports from ACR will give a date that the negative is expected to be removed from your reports. Sometimes, it's better to just let things fall off your reports (now, I'm not advocating to not pay off your debts - just some score/credit rebuilding advice).  Come back after you do that with the Creditor or collection agency name, amount of debt, and date it will fall off your reports and folks here will have more tailored answers to help you with.

You do need to start building some positive history. Cap1 is great. The advice on app'ing for two is sound, Just do it immediately back-to-back. You might have to start with a secured card, that's ok, you have to start somewhere. No matter which card you get, use it for 6 months before app'ing for another card. Building some history with that first card will open more doors for the next card you app for. 

Good luck!

ETA: Because this afternoon I clearly am not capable of spelling correctly.

[tealrobinson]

I pulled my credit reports (that I could) from acr.com and I'm going to start compiling my spreadsheet this weekend (in between working). I also applied for Quicksilver and Platinum (which I was denied) so I went ahead with their secured card and got approved! I'm going to save all my tips this week (from my bartending job) to fund the card and hopefully the beginning of next week I can start tackling some of these collections.

[huck1081]

That's Awesome! You did the right thing with the secured card.  I started with a secured card 15 months ago and had it graduate, and now have 4 unsecured cards with descent limits! Don't fall prey to the predatory lenders. Be patient with the cap one card and in due time you will be in great shape!

[fltireguy]

 Don't fall prey to the predatory lenders.

I.e. Criminal One, And First Predator (CreditOne, First Premier)

There Are are some other decent secured cards out there that aren't predatory. For what it'll cost in fees, etc. to open an account with either of those two, you could take that same $200 and open a second secured card....