topic Need Help! in Rebuilding Your Credit

Need Help!

Anonymous — Wed, 18 Jun 2008 06:08:42 GMT

Here is my situation... I am trying to finance a home in three to six months and need to improve my score by 100 points. I am currently in the 490 area on two and 601 on the other. The only recent negatives are a new Treasury charge of 4K that I can pay (Military wants sign on bonus back after I broke my neck...), and a 90 day late mortgage payment from last year (due to broken neck), and a cell phone charge off from last summer for 2K (my soon-to-be ex wifes unpaid bill). Everything else that is negative is from years ago... I have no credit cards. My cars are paid off. I am renting a house from a friend. The 601 report is not showing the treasury charge. I need to be around 600 on all three in three to six months in order to finance this home for me and my son. Is this even possible??? Thanks in Advance!

Re: Need Help!

Anonymous — Wed, 18 Jun 2008 12:13:13 GMT

IMO you need some revolving credit. Since you have no credit cards I'd bet you'd see a jump in points once you have some.

Others more knowldgeable will chime in.

Good luck!

Re: Need Help!

llecs — Wed, 18 Jun 2008 12:30:31 GMT

love2golf wrote:
IMO you need some revolving credit. Since you have no credit cards I'd bet you'd see a jump in points once you have some.

Others more knowldgeable will chime in.

Good luck!

Bingo.

I'd bet OP would see 30-40 point bump at least. Maybe an extra 15-20 points 3-4 months after first reporting. OP should focus on the strong CR and selectively app for new credit based on that report using sites like whogavemecredit.com as a guide. Probably the best mix would be 2 revolving and 1 store charge card. Any more than that could cause a score decrease.

Reaching the 600 club with each CRA is very possible, with hard work.

Re: Need Help!

Anonymous — Wed, 18 Jun 2008 14:15:06 GMT

Any advice on how to handle the recent negative entries? I will pay the big one, but I don't want that on my credit for another seven years. I have some charge offs from around five years ago too, at least one of those has been sold to collection agency who re-reported it.

Re: Need Help!

llecs — Wed, 18 Jun 2008 14:50:47 GMT

BadKarma wrote:
Any advice on how to handle the recent negative entries? I will pay the big one, but I don't want that on my credit for another seven years. I have some charge offs from around five years ago too, at least one of those has been sold to collection agency who re-reported it.

If you pay it, then is will still fall off 7 yrs from DOFD, not 7 yrs from your payment. Try a PFD directed to the OC if a CA isn't reporting. If the CA is reporting, then I'd DV them and then send the PFD. Damage from the CA is greater than damage from the OC, usually.

Re: Need Help!

Anonymous — Wed, 18 Jun 2008 15:28:16 GMT

@llecs wrote:

@Anonymous wrote:
IMO you need some revolving credit. Since you have no credit cards I'd bet you'd see a jump in points once you have some.
Others more knowldgeable will chime in.
Good luck!

Bingo.
I'd bet OP would see 30-40 point bump at least. Maybe an extra 15-20 points 3-4 months after first reporting. OP should focus on the strong CR and selectively app for new credit based on that report using sites like whogavemecredit.com as a guide. Probably the best mix would be 2 revolving and 1 store charge card. Any more than that could cause a score decrease.
Reaching the 600 club with each CRA is very possible, with hard work.

True, but I don't know if the OP could get a CC with a Treasury entry (assuming IRS tax lien, here) on his CR. That is, assuming that whoever he applies with checks the ugly CRs, too (which actually, from WGMC.com, seems to be common).

Speaking of which (not meaning to hijack the thread), it seems as though who a particular CCC pulls is according more to the state the application's filed in rather than any set rule. What do you think, Ilecs??

Re: Need Help!

llecs — Wed, 18 Jun 2008 15:47:17 GMT

@Anonymous wrote:

@llecs wrote:

@Anonymous wrote:
IMO you need some revolving credit. Since you have no credit cards I'd bet you'd see a jump in points once you have some.
Others more knowldgeable will chime in.
Good luck!

Bingo.
I'd bet OP would see 30-40 point bump at least. Maybe an extra 15-20 points 3-4 months after first reporting. OP should focus on the strong CR and selectively app for new credit based on that report using sites like whogavemecredit.com as a guide. Probably the best mix would be 2 revolving and 1 store charge card. Any more than that could cause a score decrease.
Reaching the 600 club with each CRA is very possible, with hard work.

True, but I don't know if the OP could get a CC with a Treasury entry (assuming IRS tax lien, here) on his CR. That is, assuming that whoever he applies with checks the ugly CRs, too (which actually, from WGMC.com, seems to be common).

Speaking of which (not meaning to hijack the thread), it seems as though who a particular CCC pulls is according more to the state the application's filed in rather than any set rule. What do you think, Ilecs??

Absolutely, no doubt, getting that first CC will be an uphill battle, esp. due to the scores and the PR if so listed. IMO, focus on repair, but if OP had exhausted that for the time being, and decided to app for that first card, then going for that first CC is a good next step (mainly due to the score increase).

IMO, WGMC is poorly designed. It gives posters an opportunity to report ALL of their scores. So when we check it out, it is difficult to see who pulls what. Only a rare couple of CCCs will actually pull all 3 (NASA maybe and CapOne). I am partial to a different site but cannot mention it out of risk of getting edited. Covering my Butt.

I have read that about states too. You are probably right. I usually guage based on whether or not the pulls were a vast majority or not. In general, it is safe to say the BofA CCs like EX, WAMU and Nat City like TU, or that most CUs like Penfed like EQ. Its a toss up, but there are exceptions.

Re: Need Help!

Anonymous — Wed, 18 Jun 2008 15:50:57 GMT

True, but I don't know if the OP could get a CC with a Treasury entry (assuming IRS tax lien, here) on his CR.

Not an IRS thing at all. As stated in my initial post, I was military and got hurt on my regular job. It took me a couple of years to get a neck surgery out of workers comp. Went to Military medical review and was found not fit for duty. Then I got a notice that they wanted me to re-pay the sign on bonus... I disputed it because I did not do anything wrong. I just found it on my credit report. Now I have no choice but to pay it, but should I, or can I, PFD it or what?

Re: Need Help!

Anonymous — Wed, 18 Jun 2008 15:54:25 GMT

You know it's going to be REALLY hard to explain lates on the mortgage payment right???...when a new mortgage company see that....it's going to bring a red flag...maybe you should send them a GW letter....QUICK...and ask for that to be removed...