topic Re: Please give me some direction, and hope! in General Credit Topics

Please give me some direction, and hope!

Lawlover2 — Fri, 26 Oct 2007 19:09:10 GMT

I have several baddies on my report (3 charge offs- all paid in full (dumb, I know)). I have $80k in student loans (current). Mortgage that is now current ($250k - high rate of 9.9% -thinking of refinancing). However, showing 2X 30days late b/c we made the payment on line and it did not post in time - any suggestions for getting that removed?? Two car loans - one $25k current never late, one $11k late several times but now current. One credit card current w/ a $2600 balance on $1,000 limit (depressing and part of the problem I know). We make good money $200k/yr so we have the ability to straighten all of this out and now that I am out of school, we have made a HUGE dent!! But now, once I pay this additional $2600 off - there will be nothing other than house and student loans and car to pay - all of which I don't mind making payments on and can easily afford! What do you do when you have paid all of the revolving debt down / off? Should I attempt to get a new credit card and use at 1-9% utilitization - a few? My credit scores suck now - EQ 513, TU 538, Exp 518 - I would like to get these up to mid-660's by April of next year? I just don't have any direction now? I have read that I should pay $300 or $400 on that credit car for a few months rather than all up front - any suggestions? There is so much informaiton on this website but I have spent 2 months reading and haven't taken a stance or adopted a strategy - can someone please just provide me some direction! I challenged just about everything I could on my credit reports and won on only 1 item - a checking account that was showing $27 charge off (I moved, thought it was closed) and I don't think it will make much of a difference. Teh rest, other than the mortgage that is showing late EVEN though I made the payment almost 4 days ahead of time, are all legitimate - I was irresponsible and broke and NOW oh NOW do I SUFFER! Glad I learned my lesson now, rather than later And, I am so glad that I found this forum! My husband is in the mid 600's. He too, is trying to rebuild his schore.

1.) Shoudl I pay the $2,600 down in sevearl months or all at once?

2.) Should I apply for a credit card, several credits cards?

3.) If so, where?

4.) Any other guidance or advice?

Re: Please give me some direction, and hope!

SmartCookie — Fri, 26 Oct 2007 19:44:40 GMT

hi lawlover2 and welcome! Continue to refer back to the Credit Scoring 101: http://ficoforums.myfico.com/fico/board/message?board.id=ficoscoring&thread.id=2654

Do more repair before you rebuild, so no new credit cards just yet. Don't worry, they're not far off.

Keep GW letters going to anything that is still derog and paid, even if the account is open. Keep trying even if they won't do it... resend every month or so.

Get that CC paid off in full all at once, you are severely over limit and the CC co is not liking how that looks. After PIF, pay new charges weekly or whatever you need to do to show the company you can handle charging and paying... and make sure that under $100 of new charges report on the new statement. This is good for utilization on your reports. In the near future you can ask the CC co for a CLI, but demonstrate good pay habits first.

Re: Please give me some direction, and hope!

Anonymous — Fri, 26 Oct 2007 19:47:04 GMT

1.) Shoudl I pay the $2,600 down in sevearl months or all at once?

2.) Should I apply for a credit card, several credits cards?

3.) If so, where?

4.) Any other guidance or advice?

Well you do have alot, but dont worry because as long as you stay current and on TIME with everything else then it will work out. To answer your questions, paying down the revolving debt would be a good idea and just charge lil small things on it over time and pay those off, so they can see you are current and active with the card......Applying for one new card may help you like say an Orchard Card but then I wouldnt want you to take the hit for the inquiry if you dont get approved....I really wish it was more to say but overall you just have to stay current and on time with all payments even if you have to pay a week or two in advance, that way you always know the payment will get there on time.

Re: Please give me some direction, and hope!

Lawlover2 — Fri, 26 Oct 2007 20:38:33 GMT

Thanks for the info - only problem is that the CC I owe on currenlty (the $2,600) was CLOSED by the CREDITOR - so, even if I pay it off, I can no longer use it which means that I have absolutely no credit cards to build credit with! I get offers in the mail from Orchard Bank, etc. - should I go for one jus to build the credit? Otherwise, the only thing I will have going for me is on time payment and time! I want more control and ability to repair. I will begin sending GW letters but how often do you think they work? Why would they care to go to the effor to take it off? Who should I send / address those letters to? THANKSSSS!!!

Re: Please give me some direction, and hope!

SmartCookie — Fri, 26 Oct 2007 20:50:10 GMT

You need a PFD for that card then since it is closed that would be your best bet.

I agree, you need some sort of card. Please search the boards for the BoA 99/500 card. Sounds perfect for you as a rebuilder.

Re: Please give me some direction, and hope!

SmartCookie — Fri, 26 Oct 2007 20:52:23 GMT

Regarding Orchard etc... try to rebuild with a more prime lender like the BoA if possible for the moment. You want a card right now that you can have a relationship with for decades to build account age. Orchard is no ones first pick for that.

Re: Please give me some direction, and hope!

Lawlover2 — Fri, 26 Oct 2007 20:55:41 GMT

It is a Washington Mutual / Providian card. I had another card w/ them that I paid off (like $5800) but they would NOT do a PFD. Any suggestions on a better way to get that? I just requested it over and over and, nothing! I'll search for that! Thanks!

Re: Please give me some direction, and hope!

SmartCookie — Fri, 26 Oct 2007 21:03:53 GMT

Did you do a written PFD with WaMu, or they just told you this on a phone call? Icky!

Re: Please give me some direction, and hope!

Lawlover2 — Fri, 26 Oct 2007 21:06:39 GMT

Over the phone. I have never done a written - I don't know who to address it to when I mail it. Also, I tried for the BOA - it says I am eligible for a secured credit card. Do secured card help w/ credit? I'll do it if it will help! How will it report?

Re: Please give me some direction, and hope!

SmartCookie — Fri, 26 Oct 2007 21:18:13 GMT

Ok please read on what a PFD is... it is a letter and you Pay For Delete. You can do this with the current situation and hopefully they will delete the derog tradeline. WaMu apparently blacklists... so I suggest a PIF and not the attempt at a settlement for PFD that I usually tout.

Send the PFD to att'n accounts dept at the address on your last statement. If they don't answer... keep sending... if still no response... take it higher. You'll have to check the boards to see if someone has a better address to move up to. Start at the standard address though before escalating.

Hang on... how did you try for the BoA? You need to apply for a particular card to get the offer for the partially secure card. You don't want the fully secured card if you can get the 99/500... what did ya do?

Re: Please give me some direction, and hope!

Lawlover2 — Fri, 26 Oct 2007 21:26:00 GMT

https://preapproved.bankofamerica.com/cc/SelfInquiry.aspx

I did some searches on the CC forum and found this - it says I wasn't preapproved but I could try for their $1 for $1 secured card.

Oh, and everytime I mention or request PFD - I get the same crap about how it is illegal them to do that b/c they would be incorrectly reporting . . . I have heard it so many times I could repeat it for you!

Oh, and thanks for your help.

By the way, how to agencies score creditors - BOA v Orchard Bank - is it more beneficial to ahve unseucred w/ higher limit from Orchard or secured from BoA? Just curious as to you opinion - you seem pretty good at this!

Re: Please give me some direction, and hope!

SmartCookie — Fri, 26 Oct 2007 21:27:22 GMT

Hoping you only did the pre-approval soft INQ with BoA to "see what you might be approved for".

Do not apply for the secured card that you will get if you did that method.

Go right to the Platinum application without checking what you can be approved for... apply for the Platinum card... and you should get declined and get the offer for the 99/500 (partially secured)card. There is no direct offer for this card, just this counter offer. Applying is a hard INQ just to let you know. I don't feel that should hold you back as you need a card now, hopefully this one.

Re: Please give me some direction, and hope!

SmartCookie — Fri, 26 Oct 2007 21:28:26 GMT

Phew you only did the pre-approval!!!

Re: Please give me some direction, and hope!

Lawlover2 — Fri, 26 Oct 2007 21:35:20 GMT

Probably not good

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Re: Please give me some direction, and hope!

SmartCookie — Fri, 26 Oct 2007 21:43:42 GMT

Ummm... odd... you did not get an instant denial. I will laugh myself off the chair if it turns out you wind up with a Plat card!!!

Don't worry... the counter offer is not always instant but can also be mailed. So, hopefully in a few weeks you will either have a Plat Plus card or the 99/500!

Call them in a few days... maybe they will have the status.

Re: Please give me some direction, and hope!

Lawlover2 — Fri, 26 Oct 2007 21:51:02 GMT

I will honestly fall out of my chair - my credit scores SUCK! Although, I previously got an AmEx last year and paid it on time every month (most recent card I had) but they took it away in May I think my credit scores must have went down . . . I hope I get something for the INQ on my CR - This is all so frustrating. You suggest I wait a few days and call? Do they ususally instantly deny if they are going to instantly deny? I'm new at this! Thanks thanks thanks! I feel like I am playing the lottery!

Re: Please give me some direction, and hope!

SmartCookie — Fri, 26 Oct 2007 22:08:23 GMT

Lawlover2 wrote:
I will honestly fall out of my chair - my credit scores SUCK! Although, I previously got an AmEx last year and paid it on time every month (most recent card I had) but they took it away in May I think my credit scores must have went down . . . I hope I get something for the INQ on my CR - This is all so frustrating. You suggest I wait a few days and call? Do they ususally instantly deny if they are going to instantly deny? I'm new at this! Thanks thanks thanks! I feel like I am playing the lottery!

Quickly regarding my opinion on Orchard vs etc... there are a lot of good opinions on how to rebuild CCs but mine is to save that hard INQ for the better other card and/or credit limit with card or other card that you will be able to get in as little as a month from now with agressive CBR clean up. I believe the BoA partially secured card does not report as a secured card, which is good. Yes all things equal a large CL on a subprime would be better than a small on a secured. It's intricate.

I would call BoA in a few days because I'd be dwelling on it too and it would be nice to know ASAP so you know what to anticipate.

Oooooooh defaulted AMEX? PLEASE search the board for the 3 AMEX OASIS numbers to call to find out if you are in the program. I had an old account and it turns out I was eligible for the program... I am getting a new AMEX (Oasis) Optima with a CL of half of the debt that I had to pay in full to them. The card is guaranteed and has no hard INQ... and also has the original date of my old defaulted card. If you are in the program... treat this new card like gold. If they tell you that you are not... I would not try to pay the debt until it goes into the program personally.

Re: Please give me some direction, and hope!

Lawlover2 — Fri, 26 Oct 2007 22:13:16 GMT

I didn't default on it, in fact it had a zero balance on it. They just took it away - a letter about my credit? I didn't know what to do - I called and they said there was nothing I could do. And I was so mad, I paid it on time every month! Should I still call?

Re: Please give me some direction, and hope!

SmartCookie — Fri, 26 Oct 2007 22:16:47 GMT

Lawlover2 wrote:
I didn't default on it, in fact it had a zero balance on it. They just took it away - a letter about my credit? I didn't know what to do - I called and they said there was nothing I could do. And I was so mad, I paid it on time every month! Should I still call?

Crummy of them... Universal Default or an unresponded to account review. I wouldn't call as a priority... the program is only for people who owe $$. What I would do is see if they will open that account back up without re-applying once you have done some clean-up.

Re: Please give me some direction, and hope!

Lawlover2 — Fri, 26 Oct 2007 22:29:29 GMT

I am actually on the phone w/ them right now - it was a credit score decrease in June. Which is odd b/c I had a lower score when I got this, by far, than I do now? Guy on the phone is checking w/ sales department to see what he can do . . . keep your fingers crossed. I would be so happy to have my AmEx back