I recently been browsing around the website and have come to terms with myself that rebuilding my credit now will give me the best chance at supplementing my college degree run and a strong career start.
Immediate (Six Month) Goals:
a. Remove one collection account from each credit report
b. Get in touch with Capital One to find out about potentially settling a charged off account
c. Apply for TWO secured cards
Long-Term (Six+ Month) Goals:
a. Apply for TWO GE cards
b. Apply for an auto loan (mix of installment)
As of 12/09/2012, my credit scores are:
TRANSUNION: 652, EXPERIAN: 611, EQUIFAX: Unknown
Current NEGATIVE Accounts: 1
Current COLLECTION Accounts: 1
Current POSITIVE Accounts: 2 (One revolving, one installment)
Utilization: 100% (This is due the old NEGATIVE account balance being combined with my one revolving account I have now, with a $1.2k credit limit, and 45% utilization that I've been paying down.)
My intentions are to reach 700 within' the next 6-12 months. In the coming month or two, I'm hoping to get two secured credit cards to age along with the one unsecured card that I have at the moment.
Plan looks good. With your current scores, you may want to look at applying for some sub-prime unsecured cards instead of tying your money up in secured cards when you really may not have to.
Capital One approved me for a $300 unsecured when I had an active charge-off with them from another Capital One unsecured, so it seems that is for sure a good starting point. If you can find yourself a nice offer from First Premier with a low AF and NO monthly then they will approve you too. My score was ~500 and they approved me for $800 unsecured, but be VERY careful with them and ONLY use the card to get a positive TL, do NOT carry a balance and if you lose your job or something pay the card to $0 and just leave it alone.
I think I would pay that util down first. That is money better spent. Once the util has been handed, then get a secured or 2 if you want.