Valued Contributor
Posts: 2,661
Registered: ‎04-25-2011
Re: Dawgamus and the deep dark hole of sub 600

igids1 wrote:

If you want pure financial/credit advice here it is. Please take this as like SPOCK talking to you, this is only logical, no emotions here. First thing is cancel the 5k for the grandkids car. 


Account Name:    FREEDOM STORES     

Account Status:    Open  

Date Opened:    6/1/2012

Balance:    $2,349.00  

High Balance:    $2,607.00 

Past Due:       $0.00  

Payment Status:    Pays account as agreed  

Comments:    SECURED

Reported by  Equifax


This is hurting you alot in a few ways. First, its new credit. Not even sure what it is. Second, the balance to high balance and the comment that its secured, leads me to think that you are almost maxed out on the credit. If so, the balance that high, is going to have negative impacts on your credit, and keep you from even getting a subprime credit card.


The PFDs are definetely the right track. I think you are underestimating how much its going to cost you to buy a new home. 5k for a down payment plus closing costs seems unreasonably, low, in addition, any place that is going to possibly give you a mortgage is going to want to see that you have some money in "reserves". Telling them that you are giving them your last 5k, and you will have nothing after that, is not going to go well for you. Asset acceptance is definetely going to need to be deleted, or you will most likely not be approved, its too recent. DELTED, not updated to paid in full. How to long to 640 is going to depend on how many of your PFD are accepted.  With your limited history you posted (of positive open credit) I do not feel it is realistic you will be approved for a mortgage by december. I would apply for a capital one secured now, they are VERY forgiving. That will start the positive credit now. And start working on what you have said. I think you are looking at six months depending on how many of your PFDS are accepted.

I don't agree with this post about Freedom Stores hurting you;


Couple of points igids:


First; OP has two positive trade lines, this being one of them.. regardless of high balance, this is a paid as agreed trade line with no lates. This has to stay open; esp if OP intends to eventually build some form of AAoA.  It appears to be a new purchase, likely furniture, that will be paid down monthly, so the balance will go down and the util will as well -- Bottom line is  you cannot have a good credit score until you build credit, this is building credit.


As far as hurting in a few ways; if OP had 6 accounts and a 7 percent util, then yes, this is hurting in a lot of ways.. but the OP doesn't; so it isn't hurting much at all, if anything it is helping by having an open positive trade line. If the goal is a subprime card in one month, then yes, this is impacting, but if the goal is long term rebuilding, you need to start somewhere. OP started here. So; closing it now would do nothing at all



Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 09/14: TU: 784 | EQ: 752 | EX: 784
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession

Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $13900, Citi/Home Depot $8500, Capital One Cash Rewards $3500, BOA $7500 Total Utilization: 3%. AAoA: 2yr, 9mth. INQS: 1 TU, 1 EQ, 3 EX