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Hi All,
I'd like to get some feedback on my rebuilding plan. My current FICO 8 scores are as follows...560 EX, 568 TU, 581 EQ. I started rebuilding about 2 months ago by opening a secured card with a local credit union with a $300.00 limit. About a month ago I opened a Discover IT secured with a $200.00 credit limit, and then today I opened a Fingerhut account with a $400 limit,
My plan is to pay all cards off monthly (I doubt I'll use the Fingerhut except once or twice a year to keep it active). I am charging gas and restaurants on the Discover and pay it off except for a balance of less than 10% to show on statement date. Then I pay that off. Other cards will report a zero balance.
I have two charged off Capital One cards that appear to be affecting my utilization. It doesn't show on the reports, but I was denied credit at Kohl's and high utilization was listed. I know that paying collections off doesn't really impact my score, but will it in these circumstances? Card 1 - Limit 300, balance 335. Card 2 Limit 300, balance 274.
They have offered me a settlement in the past, if I do that will it help me?
@Anonymous wrote:Hi All,
I'd like to get some feedback on my rebuilding plan. My current FICO 8 scores are as follows...560 EX, 568 TU, 581 EQ. I started rebuilding about 2 months ago by opening a secured card with a local credit union with a $300.00 limit. About a month ago I opened a Discover IT secured with a $200.00 credit limit, and then today I opened a Fingerhut account with a $400 limit,
My plan is to pay all cards off monthly (I doubt I'll use the Fingerhut except once or twice a year to keep it active). I am charging gas and restaurants on the Discover and pay it off except for a balance of less than 10% to show on statement date. Then I pay that off. Other cards will report a zero balance.
I have two charged off Capital One cards that appear to be affecting my utilization. It doesn't show on the reports, but I was denied credit at Kohl's and high utilization was listed. I know that paying collections off doesn't really impact my score, but will it in these circumstances? Card 1 - Limit 300, balance 335. Card 2 Limit 300, balance 274.
They have offered me a settlement in the past, if I do that will it help me?
Yes, paying them should help you out. Even if its not apparent in your scores, lenders are much more likely to approve you with PAID charge offs vs UNPAID charge offs.
As for the FH account - I opened one in December 2014, I have not used it AT ALL, and its still there reporting as good every month....
BTW, how old are the Cap One charge offs?
Both charged off in March of 2015.
@Anonymous wrote:Both charged off in March of 2015.
They will almost certainly approve you for a new account if you get those paid. Its beyond their 12 month blacklist period.
Good to know. I'm hoping they will take a settlement.
At this point I have three lines reporting so I will wait a few months to a year before applying for anything else. I might increase the limit on the DIscover by another $100 or $200 if they approve it as I use that card the most and am trying to maximize the cash back. They match the first year's total.
@Anonymous wrote:Good to know. I'm hoping they will take a settlement.
At this point I have three lines reporting so I will wait a few months to a year before applying for anything else. I might increase the limit on the DIscover by another $100 or $200 if they approve it as I use that card the most and am trying to maximize the cash back. They match the first year's total.
I wasn't aware this was possible, do you just call them and ask them?
I believe it is possible with an additional deposit. They have to approve the amount you want to deposit.
Payment of the debt will also prevent continued updates, if they were being made, thus keeping score depressed.
The account is no longer delinquent, and thus derogs can now begin to decay in scoring impact.