topic Re: Am I Doing It Right? in Rebuilding Your Credit

Am I Doing It Right?

Anonymous — Mon, 28 Oct 2013 14:43:20 GMT

Hello,

I am a 22 year old student earning around $10,000 per year from various part time jobs. I am in the stages of rebuilding my credit as I am trying to take a strong hold on my financial future. I am wondering if you guys could offer some advice on what I can do and if what I am doing seems to be the way to go.

I have had a Capital One Platinum card for 3 years. 14 months ago I had a 90 day delinquency that I paid back and have had no issues since. The card has a $1250 dollar credit line.

I financed something through Apple/Barclays in April and paid it off and have kept the Visa card open with a $700 credit line.

I was recently approved for the Capital One Journey card with a $500 limit.

I know that the delinquency is really hurting my score, and that it is 670 according to Credit Sesame. Foolishly, I went a little application crazy a year ago, and have 5 hard pulls on my report in the last 3 years.

My plan is to keep all 3 cards open and to never go above 20% usage combined. I will also obviously be making payments on time every month.

I guess my question lies on, is that enough to rebuild? Are there any tricks I can use to help? Are there any flaws in my plan?

Thanks very much for your time
.

Re: Am I Doing It Right?

IOBA — Mon, 21 Oct 2013 15:35:00 GMT

Keep charging small balances on the card, let the small balance report, pay off the card.

It's unlikely that Cap 1 will remove the 90 day late.

The pain of the 90 day late will fade as time passes. The most damage felt is within the first 2 years after the late.

Re: Am I Doing It Right?

Anonymous — Tue, 22 Oct 2013 00:54:04 GMT

An installment loan would help increase your score a bit - FICO scores based on types of credit also. A small credit union loan - a credit rebuilder (you deposit money and take out a loan on it) or a used car loan are some examples.

Re: Am I Doing It Right?

Anonymous — Thu, 24 Oct 2013 10:25:48 GMT

Thanks for the feedback! I'm definitely not counting on Capital One to delete the late, but I am very glad that it will hurt less in a year or so.

I have thought about joining a Credit Union for that exact reason. Thanks for the tip!

Re: Am I Doing It Right?

aurelie00 — Thu, 24 Oct 2013 18:09:35 GMT

Have you tried contacting Cap1 to see if they would do a goodwill adjustment with that 90day late?

Re: Am I Doing It Right?

Anonymous — Thu, 24 Oct 2013 21:32:24 GMT

I must disagree with a previous poster. A 90 day late is considered a major derogatory and its impact will be there for the entire seven years that it appears on your report. Minor derogs (30 and 60 day) have less impact after about 24 months. I would attempt to GW CapOne EO. If you explain your situation honestly, then you may be surprised at what they will do for you. I had nine missed payments removed from an account three weeks ago. I was told that they couldn't do that the first two times I asked, but I received a yes the third attempt.

Also, it is best to keep your utilization between 1 and 9% on one card and make sure all other cards report a zero balance. This will maximize your FICO score.

Re: Am I Doing It Right?

Anonymous — Fri, 25 Oct 2013 23:28:09 GMT

I have not contacted Capital One about removing the late payments. I am just learning how to go about doing that, which is the main reason that I haven't. I do my day-to-day banking with Capital One 360 and with my now 2 cards with them hopefully it is something they would consider. Thanks for the tip on the utilization also.

Re: Am I Doing It Right?

Anonymous — Mon, 28 Oct 2013 14:44:02 GMT

EDIT- I pulled my credit report yesterday and my memory served me very wrong. I actually only had a 60 day late payment in June/July of 2012, and a 30 day late in December of 2011. I am hoping this will hurt less than a 90 day, am I right?

Re: Am I Doing It Right?

Anonymous — Mon, 28 Oct 2013 19:10:47 GMT

If the missed payments were only 30 and 60 days, then your score should rebound gradually after the two year mark. These minor derogatory marks only sting for a couple of years.

Re: Am I Doing It Right?

buildafico — Mon, 28 Oct 2013 19:17:03 GMT

Email the executive office at cap1 and attempt your goodwill request. They're super nice, and they respond quickly.