topic Re: Crazy Credit Rebuild / Comeback in General Credit Topics

Crazy Credit Rebuild / Comeback

Anonymous — Wed, 07 Feb 2018 11:51:31 GMT

Hi All

I just wanted to share my story and crazy credit rebuild over the last 11-12 months.

Backstory:

2006: Typical high school graduate going to college; no real credit knowledge. Mom helped get first credit card and gave the tried and true advice of "only buy what you can pay back/ afford." That card was a basic Capital One Card. I believe the CL was 300. After "managing" that card for about 3 months I felt I had a handle on how to use credit cards (or so I thought). So I applied for an Old Navy and Express cards; $200 CL each, respectively (It was "free money" right). Made sense, since most of my closet was either ON or Express. Now fast forward 1 yr to early 2007; wallet was lost/stolen. Called in to all 3 card issuers; never recieved and new cards. Eventually fell into collections. At the time I knew nothing of FICO, credit reporting, reports, bureaus or scores and how they would affect me down the road.

So from late 2007 to 2014 I fell in with the misinformed and deemed all credit is bad, cash is king sheep mentality. In that same time frame I would learn very basic credit tips; not really taking the whole credit the thing seriously. All the while my credit scores had been tanking! In 2015 is when I told myself that I'm going to seriously get on the right track. So the first thing I did was the "Get Fixed Quick" method of pay for deletion. Lets just say there was to much pay for not much deletion. But I did get my first FICO scores right after. Cringe-worthy scores that ranged from 412 - 448. 2016 rolls around and I randomly apply for cars and or credit throughout the first qtr of '16. I believe I app'd at Toyota, BofA (banking with them since '09), Capital One and Wells Fargo - obviously all denied.

Frustrated I took the remainder of the '16 to learn all that I could from forums, blog post, news articles about credit and I could say with certainty a solid 1k plus videos on Youtube about anything credit. With all this new found knowledge I was confident to start my vigorous credit rebuilding plan. SO HERES HOW IT WENT!

*Side note: late 2016 added an initial fraud alert and then did an extended 7 yr FA (EFA)* - very important security feature

Feb '17

Some inquiries had fallen off and the old CC's from '06 were obviously past the SOL and had been removed from CR. Decided to wait one more month.

FICO - 583

Mar '17

Took a chance and app'd for my dream car (Camaro Rs). Was approved for a "new" 2016 RS! Got 6k off for it being a demo; only had 200 miles. 11.5% APR for 6 yrs. Total loan through Capital One Auto Finance 36K.

FICO 584

April '17

Car loan was through Cap1 so I decided to app for their most basic credit card, fully prepared to drop a security depo of $300 for a secured card. In branch you they allow you to app for all and they will let you know which ones you get approved for. Got 7-10 day message (because of EFA). So I went across the street to BofA and just used the $300 to open a secured card with them. Approved! 24 - 48 hr later Cap1 called because of the EFA on my CR to verify my identity. Approved for the Platinum! $300 SL. BofA does verification "on the spot" if you have a EFA FICO - 579

May - Nov '17

You could say I was in the garden. I specifically used the Secured BankAmericard and C1P alternating them for gas and gas only because I knew that was something I always had paid for with cash. First thing I did was find the closing date on both cards (luckily only one day apart). Anytime I used the card I would wait for 2 - 3 days so it would post to the acct and then pay it down to 1%. I would then alternate months of PIF and having a 1% balance to total card limits when the closing date was 2 days out (just to give payments time to post) to have the desired balance . In my case this was $0 - $6 across both cards. No missed auto payments.

FICO's - May 603 - June 611 - July 654 - Aug 641 - Sep 596 - Oct 643 - Nov 668 (No missed/late payments)

Dec '17

Now here comes the fun part. I had been planning to go on a Mass App Spree on the last day of Nov. because I wanted hit the scoring threshold of 15k credit and I wanted to garden for the first 6 half of '18; planning to buy a house second half. I was excited, nervous and scared because I didn't know what the outcome would be. Did my research on the cards that best fit my spending habits and what I would like to benefit from each card. Plus a Golden Egg card lol. My scores was at the highest its ever been, so i figured why not. So the last day finally came and I pulled EVERY. SINGLE. TRIGGER! Chase Freedom, Discover IT, Citi Double Cash, UsBank Platinum, Target Card, *AMEX (golden egg).

All gave me the 7-10 message due to EFA. The next morning I called the reconsideration lines with some ammo. That particular day I knew my FICO for TU was 700. So when I called in Citi, UsBank and Target they would not re-pull for TU even after informing them that there was incorrect info on EX and EQ. All three resulted in denials. Chase was an initial denial; asked for repull of TU (analyst actually got excited about the point difference of TU). APPROVED for CFree SL of $4500. Did the same with Discover IT and was approved for $1500! The AMEX was a long shot but was ultimately denied. Obviously lol. Went on to get approved for a JSC Federal Credit Union CC for $1000 a week later.

Jan - Feb '17

Went from measly $600 total CL to $7600. I was content. At the time of the apps I still had 8-10 HP's and now at 5/54.

But the other day (2/4/18) I saw offers on my Chase portal for the SLATE, CFU and CSP! App'd for the CSP, 7-10 msg...next day Chase called for verification and APPROVED for $5000 SL! Logged in to check acct and the CFU was still there! App'd for CFU, 7-10 msg...and Chase called again to verify. BOOM! Approved for a $2000 CL!

Not only did I go from HORRIBLE credit at the beginning of the year to a new car, 5 new lines of credit, FICO's holding at 650+! I walked in right pass the Chase 5/24 Rule to 7/24, right on to the CHASE TRIFECTA! All in all I would say that last year was a good rebuild to start a strong new foundation. Also attained and passed my initial credit rebuild goal of 15k Total Credit Limit with CLI's from

BofA - (unsecured in late Jan) $300 CL to $1000 CL and C1P from $300 to $600 to $1100 CL.

Now it's off to the GARDEN I GO! HI! HO! - Also any feedback on how to strengthen my credit standing is welcomed

Thanks for reading

2/7/2018

FICO® Score 8 Experian - 689

FICO® Score 8 Transunion - 685

FICO® Score 8 Exquifax - 656

Re: Crazy Credit Rebuild / Comeback

AverageJoesCredit — Wed, 07 Feb 2018 12:04:34 GMT

Fantastic job Wish you continued success . If you dont mind adding more or less your income as a datapoint to help future readers appreciate it.

Re: Crazy Credit Rebuild / Comeback

Newbie2018 — Wed, 07 Feb 2018 13:43:20 GMT

I wish there was a love button! Way to go. Enjoy your gardening. I don't know you but I'm proud of you and inspire me to get my crap together lol.

Re: Crazy Credit Rebuild / Comeback

Anonymous — Wed, 07 Feb 2018 13:43:46 GMT

My income is 50k My wifes income is 65k. "Strategically" we have all our income funnel through one joint into our own seperate accts to show cash flow/funds/income. Ive only applied confidently for cards that allowed you to include income you have resonable access to. Mainly because I manage the money and also just in case a financial review is triggered in the futrue. That way any supporting docs have both our name attached. So I can always enter 115k in the income field.

Re: Crazy Credit Rebuild / Comeback

Anonymous — Wed, 07 Feb 2018 13:53:58 GMT

@ @Newbie2018

wrote:
I wish there was a love button! Way to go. Enjoy your gardening. I don't know you but I'm proud of you and inspire me to get my crap together lol.

Thank you! A lot of it came from mycard usage and payment habits. Im sure you will find a method that works for you. But you definately have to treat it like a second job. Good luck to you

Re: Crazy Credit Rebuild / Comeback

Anonymous — Wed, 07 Feb 2018 18:13:37 GMT

Wow, what a comeback! That's super awesome! I am looking to get there eventually myself.

Re: Crazy Credit Rebuild / Comeback

Anonymous — Thu, 08 Feb 2018 03:04:04 GMT

@
jessemg1128

wrote:
Wow, what a comeback! That's super awesome! I am looking to get there eventually myself.

You will...just comb through the forum you'll find some good tips and tricks to help you along the way

Re: Crazy Credit Rebuild / Comeback

Anonymous — Thu, 08 Feb 2018 14:40:10 GMT

Huge thanks on the 1% tip, carrying a balance (but not my high revolving one while still topping 780....) is something I would never have thought of. A balance is a balance, and it's important. I wonder because the cards need to make money off us and ">0" as the criteria is the ticket. I had one card I paid off in full every month, and charged everything on it. I don't think it had any impact.

Pretty sure my score is about 200 now, was just served for 1 of 4 cards I can't pay - no income, lost house to mold, lost retirement to neurological damage and lung disease that social security disability conveniently overlooked. The appeal will go through June 2019 and I was 3 weeks from the homeless shelters. Middle of winter, best time. Of all the people with extra rooms in their houses they don't use, none are willing to RENT one for a so-called friend about to hit the streets.

I'm "uncollectable" as I have no income, no home, 1998 car was "totaled" by insurance after I was sandwiched in an auto accident and I at least fixed the frame damage. No retirement (market high was 300k at one point but not when I withdrew with penalty), encephalitis barely held in check by 4 years of anti-fungals, an HOA that wouldn't fix the roof leak - pretty much a raw deal. I obtained advice as I felt like such a criminal, not paying my bills.... There are good attorneys out there, but I don't forsee ever renting a basic studio much less an apartment, nor getting a vehicle should mine call 20 years good enough.

Credit is so unbelievably important for anything now. My landlord (friend who decided to rent me a room while I sell all my sports gear and belongings waiting for SSI to deny me....sigh.....) well, she's talking quite a bit about selling her house in a couple months. She owns it outright. ((I owned a house once......and then a condo.......))

My advice to you with your working the cards down to what sounds like an unsecured card? REFINANCE YOUR CAR! 12% is insane. See if you can get in a credit union after your flury of activity settles and you can probably get 3-5% loan. They are the best option, but mine's taking me to court now :'(

Find or make a spreadsheet that slaps on that 12% per month, then enter what you pay each month, and you'll see you pay like $4 towards the car and the rest towards interest. The percentages flip, like a teeter totter, over time. But as your car loses value weekly, you're not paying to own that value and will be "upside down" should life decide other plans for you.

Again, thanks for that 1% tip! I can't research much (master's degree, career, and now a simple shower, feeding the dog, and going to a doc appointment somehow eat up my entire day? Go mold! (plus a lucky gene combination) Mother nature's most effecient waste managemnet system!) I see no end so I'm not looking, but 1% will be my mantra..

Good luck!

Re: Crazy Credit Rebuild / Comeback

Anonymous — Fri, 09 Feb 2018 07:02:32 GMT

@sourgrapes

No, I want to thank you! The fact that my personal credit habits might actually benefit someone else shows that I am making smart and informed decisions about my credit.I am definitely going to refi my car. 12% is high but seeing where my score/credit started I was actully surprised lol...but I am looking at knocking it down to under 5%. Going to wait 4 more months til after I hit min spend on my CFU and CSP over the next 3 months.

Also I wish you well and hopefully you pull through your situation.

Re: Crazy Credit Rebuild / Comeback

Anonymous — Wed, 15 Aug 2018 12:17:19 GMT

Thanks for sharing your journey! Stories like yours give me much needed inspiration and hope!