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New Member
Cb86
Posts: 6
Registered: ‎12-03-2012

Installment loan and secure credit card

I'm trying to get a mortgage. My current score is 577. I started at 500. I had collections that weren't paid. I busted my butt and paid them all off but made them current. I have an auto loan which I pay very high interest for that will be coming to a year of on time payments in less than a month. I also had 2 judgements on my history. I do have good auto loans for history paid in full so it's not like I just don't pay my bills on time. I applied for capital one secure credit card which I was told will get in a week. I'm wondering what else can I do to reuse my score? I only have the auto installment loan for one year and the card on the way. My balance on the auto loan is $1055 left. Will reducing the debt besides the on time payments help my score at all? When I get the credit card I'm going to keep the balance between 10-19%.
Regular Contributor
blk8
Posts: 216
Registered: ‎02-11-2012

Re: Installment loan and secure credit card

Reducing the balance on the auto loan will do nothing at this time. Having 1 revolving account is okay, I would see if you can get another (store card, etc). If it was me, 1 installment loan and 2 revolving cards will do you good ... sit on them for 8-12 months and continue to pay on time.

 

Your biggest obstacle are the paid collections/public records showing up. You should start the GW process and see if you can get them removed.



FICO: EX 662 | EQ 670 | TU 681
New Member
Cb86
Posts: 6
Registered: ‎12-03-2012

Re: Installment loan and secure credit card

Thanks for all that info! What exactly is the GW process?
Regular Contributor
blk8
Posts: 216
Registered: ‎02-11-2012

Re: Installment loan and secure credit card

It's when you send (mail, fax, email, etc) Goodwill letters to the company reporting the negative tradeline. You send them letters asking if they could delete the negative marks off your credit report.

 

You can find a heap of information on this site ... under the "REBUILDING YOUR CREDIT" tab.



FICO: EX 662 | EQ 670 | TU 681
New Member
Cb86
Posts: 6
Registered: ‎12-03-2012

Re: Installment loan and secure credit card

Oh wow I had no idea that was possible thank you so much I will start researching

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