05-18-2017 07:34 AM - edited 05-18-2017 07:35 AM
Here goes my first post! I've been lurking for almost a week now.
I've made some mistakes in the past, mainly related to ignoring bills until they went into collections and not doing anything to put a hold on student loans, despite not holding a job (or holding very low income positions). Before last year, I didn't really care about my credit.
Now I have a steady, good-paying job and a wonderful SO whom I'd love to marry in the next year or so. I've also got my eye on home ownership, because the rental life is driving me insane. So my goal is to get mortgage-worthy by the summer of 2018. For this year's challenge, I'm going to try and pull myself up to an even 650 across the board. My FPB CO should be dropping next month. Other than that, my 2017 goals are:
- PIF ~$1800 collections
- Try to get ahead of medical bills which will be reporting soon
- Stick to payment plan with both student loans, which are deferred until July
- Properly utilize Cap1 Secured that I got approved for recently
- Try not to app anything else (I plan on moving to another apartment in a few months, which may be another pull)
Any and all help is appreciated. There's a lot to learn about this world, but I'm eager to do it. I really want that house and to not have to worry about my credit creating speedbumps in the relationship.
Welcome to the forums!
Before PIFing those collections, check on them over in Rebuilding (which I wish I'd done personally haha) as there may be some options like PFD or otherwise which might get them completely off your report which is way way better than just getting them paid/closed.
This is a great place to start though!
05-19-2017 05:59 PM
I know I'm late to the game, but I'm ready to clean house. It's been a crazy 12+ months, and I'm just getting around to cleaning up my credit. I graduated from grad school a little over a year ago, started a great job last August, and am earning enough to pay my debts off and raise my score so I can buy a house.
I have 2 credit cards that are active that I'm paying down. One is a citibank card with a balance of 8400 (limit 9300), and the other is Bank of America 3900 (limit 5800). I decided to do the "snowball" technique as both have the same interest rate. I also have a Chase card that was closed by the issuer with a balance of 6500 on it when I ran into financial trouble after graduation and unable to immediately get a job. I'm paying minimums on that one too, because from what I understand, paying it off is not really going to affect my credit score until the others aren't so close to their balance. How did I get here? Grad school, unemployment, and unanticipated expenses. By the end of school, I was completely broke. Had some late payments, as a result.
I have 2 collections, one from when I was hospitalized ($2400) with a severe illness while I was in school and unemployed! Life has such perfect timing, doesn't it? The other ($480), I'm not quite sure what it is, and so the moment I get actually get ahold of the collection agency, I'm likely going to dispute it.
I have a car loan, with about 4400 on it and 13 months left of payments. A few late payments when I ran into trouble last year with my being depleted financially. I have a personal loan of 7500 with around 17 months left. No late payments here, as it's been on autopay.
And, of course, I have a student loan (several, consolidated into one), having been in grad school. You probably don't want to know how much the principle is, but I'm paying 1200 a month on it on autopay, so never a late payment. Interest rate is 6.4%
At least I'm earning a 6 figure salary now...so that helps.
So, I'm going to start with BofA and pay 2000 a month to get that one gone. It's an airline miles card, so I want to make sure it stays active, so I'll use it for gas, or whatever.
Then I'm going to pay that medical collection, in full. I agree with it, I know I did it, so I'll take responsibility. As for the other one, if I find out that I'm indeed responsible, I'll pay that one too. It's only right.
Then I'm going to move on to the Citi card--and pay 3000 a month. I'm getting a raise in August, so I may actually be able to through some more at it.
Then I'll get rid of Chase with large payments until it's gone.
As for the student loan, as soon as I have a better credit score, I'm going to refi that one to a lower rate.
By then, it should be nearing the end of the year. I don't know whether to pay the car off at that point, and then the personal loan, or just continue to autopay those down...there won't be much left on them. I guess I'll see how everything is going!
Thanks, excited to clean up my cluster of a credit score/report after a really tough year!
05-19-2017 08:21 PM
05-20-2017 09:33 PM
My first time on this site. i am 8 months discharged from BK. I was blessed to be able to get a auto loan 4 days after discharged thru capital one. I started rebuilding in January with Capital One Platinum Secured Card Discover It Unsecured and now Walmart Credit Card. My have raised my scores a least 50 points sinced then.
1 Continuing to rebuilding my credit, basically getting all 3 Fico scoreds in the 700s
2 Becoming on homeownwer