topic Re: Getting Started in Rebuilding Your Credit

Getting Started

mojo_ny — Thu, 02 May 2013 13:04:58 GMT

Ok...Where to start? I am looking to improve my credit score so that I can qualify for a mortgage. I have always struggled with my credit and enough is enough. I don't really know where to start. My score (according to credit Karma) is 600 (down from 660 a couple months ago) I had some student loans go very late (90 days) without even realizing. I am currently enrolled with Lexington Law, But I am not sure If I should stay with them. AnnualCreditReport.com says I already recieved my report (for 2 of the Credit Bureaus). My main questions are as follows:

1. Should I buy all my reports (Does it count against me)

2. Whats the best way to monitor score without negatively impacting it?

3. I have only one card (300 Limit) It was maxed... now I am paying it off

4. Should I get another card (will it help me)

5. I just paid a CA in full for an old capital 1 account They said they will mark it paid w/ the 3 Crebit Bureus (How should I follow up, Will it affect the Capital 1 Charge OFF)

My main debt is as follows:

152K to Wells Fargo on Home Mortgage

26K Ally Auto Loan

~20K in Student loans

I know this has probably been asked alot But I really need to get my financial life in order. I am sick of overpaying for everything.

Thank you.

Re: Getting Started

qd — Thu, 02 May 2013 13:14:46 GMT

@mojo_ny wrote:
Ok...Where to start? I am looking to improve my credit score so that I can qualify for a mortgage. I have always struggled with my credit and enough is enough. I don't really know where to start. My score (according to credit Karma) is 600 (down from 660 a couple months ago) I had some student loans go very late (90 days) without even realizing. I am currently enrolled with Lexington Law, But I am not sure If I should stay with them. AnnualCreditReport.com says I already recieved my report (for 2 of the Credit Bureaus). My main questions are as follows:

1. Should I buy all my reports (Does it count against me)
2. Whats the best way to monitor score without negatively impacting it?
3. I have only one card (300 Limit) It was maxed... now I am paying it off
4. Should I get another card (will it help me)
5. I just paid a CA in full for an old capital 1 account They said they will mark it paid w/ the 3 Crebit Bureus (How should I follow up, Will it affect the Capital 1 Charge OFF)

My main debt is as follows:

152K to Wells Fargo on Home Mortgage
26K Ally Auto Loan
~20K in Student loans

I know this has probably been asked alot But I really need to get my financial life in order. I am sick of overpaying for everything.

Thank you.

Credit Karma scores mean nothing, but it is a decent site to track changes. Their scores are not real FICO scores. You can get your real FICO scores for TU and EQ here on Myfico. I don't trust their Scorewatch product though so I use eliminateidtheft.com instead. This lets me track changes on all three CRAs and get daily reports from all three as well. Read up on GW and PFD letters and use them after you pull all three reports and analyze them. For the CA you just paid in full you will want to start with the GW letters. As far as credit cards, just be careful you don't go on an app spree all of a sudden. You may want another card to garden, but take your time with deciding which card to go for, and pay down your current card as much as possible before apping for anything else.

Re: Getting Started

Burned2manybridgesB4 — Thu, 02 May 2013 13:16:54 GMT

First: cancel the repair firm!!! you can learn all/more than they accomplish here, and it doesn't cost a dime.

Second: checking your own credit doesn't count against you

Third: take a look at the credit monitioring link somewhere here...think it's under general credit topics.

If you're having problems paying one card, ask yourself if another one is the right thing to do....

The CA will update as paid, and the CO will stay as it is (guessing it's at $0, unless they still owned the debt and subbed it out to the CA to collect.

There are no quick fixes on building up a score. Once the dust settles from the firm's disputes, and everything "rights itself" in the world of ficoland, your scores will not be any better off unless you have positives to make it go up. Disputing only temporarily inflates scores...sometimes if not making them drop more, due to removing factored in accounts.

Re: Getting Started

mojo_ny — Thu, 02 May 2013 13:48:52 GMT

Thanks for the input. I have no problem paying off the card. I was just to ignorant to know it was hurting my carrying a balance So I guess I am still unclear if I need to have more available credit or not.

Re: Getting Started

mojo_ny — Thu, 02 May 2013 13:49:58 GMT

GW Letters to the CA or to the original Creditor? Sorry for my confusion.

Re: Getting Started

Burned2manybridgesB4 — Thu, 02 May 2013 13:51:43 GMT

Credit is like your underwear...are you ready for a better change?

If you feel you're ready for more, do it, but be selective. Don't app for everything under the sun.

Think like this..."will it help me? Will it be in my wallet five years from now?"

Re: Getting Started

mojo_ny — Thu, 02 May 2013 13:54:34 GMT

Thats the thing.. I don't really have a use for a credit card. I would only get/apply for one if it was beneficial to my FICO score. I just wish I could understand if it would help or hurt me. I would event get a secured card if it helps. I heard that using a card and keeping the balance low can raise your score.

Re: Getting Started

Burned2manybridgesB4 — Thu, 02 May 2013 13:56:06 GMT

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Your-Guide-to-Credit-Scoring/m-p/718550#U718550

Re: Getting Started

mojo_ny — Thu, 02 May 2013 15:06:46 GMT

Thanks that was helpful... So I can get EQ and TU from this site. Do I get Experian reports/scores directly through Experian?

Re: Getting Started

llecs — Thu, 02 May 2013 18:38:41 GMT

@mojo_ny wrote:
Thanks that was helpful... So I can get EQ and TU from this site. Do I get Experian reports/scores directly through Experian?

You cannot pull your own EX FICO score. Experian blocked consumer access of that a few years ago. There are some banks and CUs that will provide it to you though when you apply, or even if you ask in some situations.

For the EX reports, you can get them from most anywhere, though the most accurate report would be the one from annualcreditreport.com or directly from Experian.com. These reports show more info.

Re: Getting Started

mojo_ny — Thu, 02 May 2013 19:23:58 GMT

Thanks I appreciate the feedback.