topic Re: Rebuilding credit advice pleeease in Rebuilding Your Credit

Rebuilding credit advice pleeease

Anonymous — Sun, 28 Jun 2015 00:25:41 GMT

Ok so here is my situation I have 6 derogatory accounts on my equifax-- 5 on my exp and 1 on trans. I would like to know if it's possible for me to build my credit score up to the 700s with them on my file as long as I keep my utilization low and make payments on time.I have never have a credit card or loan all the stuff are medical bills I had in college and a few bills from my sons old docs I didn't know about until I checked my credit last month for the first time ever. The most recent collection account is from 2013 oldest is from 2009. I just applied for cap one n discover it both secured and got approved for both, 200 dollar limit. Can someone please help me on what I need to do to recover from this bad credit and if the 700s in a year I even possible. Thank you in advance!

Re: Rebuilding credit advice pleeease

gdale6 — Sun, 28 Jun 2015 00:41:09 GMT

@Anonymous wrote:
Ok so here is my situation I have 6 derogatory accounts on my equifax-- 5 on my exp and 1 on trans. I would like to know if it's possible for me to build my credit score up to the 700s with them on my file as long as I keep my utilization low and make payments on time.I have never have a credit card or loan all the stuff are medical bills I had in college and a few bills from my sons old docs I didn't know about until I checked my credit last month for the first time ever. The most recent collection account is from 2013 oldest is from 2009. I just applied for cap one n discover it both secured and got approved for both, 200 dollar limit. Can someone please help me on what I need to do to recover from this bad credit and if the 700s in a year I even possible. Thank you in advance!

Welcome to My fico

If they are not updating on a monthly basis you may be able to hit your goal but all bets are most likely off it they are. Medical debts are some of the easiest to get rid of off your reports if you have the funds to pay them. You need at least 3 revolving cards to help drive your Fico scores and its great you got your first 2.

For unpaid medical debt that is reporting on your CR:

1. Call the OC and ask that they recall the collection in exchange for full payment
2. Send the reporting CA a PFD offer
3. Google the HIPAA Process and contact its creator for help

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Q-amp-A-Examples-and-PFD-Success-Stories/td-p/2031275

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Example-Letter/td-p/4519

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Secured-Cards-Database/td-p/3846302

Re: Rebuilding credit advice pleeease

Anonymous — Sun, 28 Jun 2015 00:47:29 GMT

Thank you so much for advice you are awesome I had no clue about ANY of that.. Then again I just started learning about credit last month lol but u said I need three accounts what should be my third acct? Any advice? And should I raise my limits to help boost my score with more deposit or will the 200 dollar limits be enough?

Re: Rebuilding credit advice pleeease

gdale6 — Sun, 28 Jun 2015 00:52:16 GMT

@Anonymous wrote:
Thank you so much for advice you are awesome I had no clue about ANY of that.. Then again I just started learning about credit last month lol but u said I need three accounts what should be my third acct? Any advice? And should I raise my limits to help boost my score with more deposit or will the 200 dollar limits be enough?

I recommend 3 bankcards, eventually as your score rises and you show good payment history on your new cards then you can app for a store card to help you with the credit mix category also as you build history with the secureds and settle your collections you can then app for some unsecured cards. The limit of the cards doesnt need to be high to obtain good scores how you use them matters. What you want to do is only let one report a small balance (1-9% of that particular cards limit) to the CRAs each month and the other revolvers at 0 if you are looking to get your best possible Fico score. You can take it right to the limit, pay it off multi times in a month.

Re: Rebuilding credit advice pleeease

Anonymous — Sun, 28 Jun 2015 00:58:32 GMT

Ok that makes sense.. So I can go all the way up to the 200 dollar limit as long as I pay it down before it reports? Sorry for all the questions I just want to make sure I do it right. I'm only 26 and I have a credit score in the 500s and I want to change that.

Re: Rebuilding credit advice pleeease

gdale6 — Sun, 28 Jun 2015 01:01:49 GMT

@Anonymous wrote:
Ok that makes sense.. So I can go all the way up to the 200 dollar limit as long as I pay it down before it reports? Sorry for all the questions I just want to make sure I do it right. I'm only 26 and I have a credit score in the 500s and I want to change that.

Yes and you can charge and pay multi times in a month too.

Re: Rebuilding credit advice pleeease

Anonymous — Sun, 28 Jun 2015 01:03:40 GMT

Thank you sooo much for your advice I really appreciate it u have helped a lot!

Re: Rebuilding credit advice pleeease

Anonymous — Sun, 28 Jun 2015 07:15:35 GMT

@Anonymous wrote:
Ok so here is my situation I have 6 derogatory accounts on my equifax-- 5 on my exp and 1 on trans. I would like to know if it's possible for me to build my credit score up to the 700s with them on my file as long as I keep my utilization low and make payments on time.I have never have a credit card or loan all the stuff are medical bills I had in college and a few bills from my sons old docs I didn't know about until I checked my credit last month for the first time ever. The most recent collection account is from 2013 oldest is from 2009. I just applied for cap one n discover it both secured and got approved for both, 200 dollar limit. Can someone please help me on what I need to do to recover from this bad credit and if the 700s in a year I even possible. Thank you in advance!

As long as you settle old collections so they don't keep updating the report, establish 3 or more revolving accounts and one installment account (like an auto loan or student loan), and maintain spotless payment history for 2 years, and keep your revolving balances in check, YES it is VERY possible to hit 700.

Re: Rebuilding credit advice pleeease

Anonymous — Sun, 28 Jun 2015 09:09:11 GMT

Ok thanks for your advice, now I'm not sure I can qualify for an auto loan right now but for the installment loan would a share secure loan work?

Re: Rebuilding credit advice pleeease

gdale6 — Sun, 28 Jun 2015 15:33:37 GMT

@Anonymous wrote:
Ok thanks for your advice, now I'm not sure I can qualify for an auto loan right now but for the installment loan would a share secure loan work?

If you have no student loans or personal loans now then yes the share secured would work for this.

Re: Rebuilding credit advice pleeease

Anonymous — Sun, 28 Jun 2015 16:18:45 GMT

Ok I'll get on top of that. Does the loan amount Matter or can it be for 500?something low as well?

Re: Rebuilding credit advice pleeease

jbsea — Sun, 28 Jun 2015 17:14:25 GMT

No, as with cc it does not matter how much your loan is for. Also the one thing you really want to be careful of with low limit cc is never go over your credit limit. It might be difficult with only $200 limit but this is also very important.

@Anonymous wrote:
Ok I'll get on top of that. Does the loan amount Matter or can it be for 500?something low as well?

Re: Rebuilding credit advice pleeease

gdale6 — Sun, 28 Jun 2015 18:34:08 GMT

@Anonymous wrote:
Ok I'll get on top of that. Does the loan amount Matter or can it be for 500?something low as well?

No it doesnt really matter as already stated but I would do for no lower than 500 and if you can get it over multi years thats even better.

Re: Rebuilding credit advice pleeease

Anonymous — Sun, 28 Jun 2015 19:16:48 GMT

Ok so before I do all of these things should I pay off the collection accounts? Also I notice that one of my collection accts was reporting open which was weird..

Re: Rebuilding credit advice pleeease

gdale6 — Sun, 28 Jun 2015 20:07:08 GMT

@Anonymous wrote:
Ok so before I do all of these things should I pay off the collection accounts? Also I notice that one of my collection accts was reporting open which was weird..

For a CU shared secured loan you should not need to settle all the collections first, there is no risk to the creditor in a secured loan. If a CA is actively working a collection then it would be reported as open.

Re: Rebuilding credit advice pleeease

Anonymous — Sun, 28 Jun 2015 20:35:17 GMT

Ok now the ca is reporting closed on exp and open on trans that's all that confused me. Any other advice you guys may have to help me get to where I want to be would be very welcomed!! I want to thank u all again for all the advice u have given me I feel like I was a just a 26 year old female with no clue about any of this but after just one day I have learned so much!! This forum is amazing

Re: Rebuilding credit advice pleeease

Anonymous — Mon, 29 Jun 2015 14:53:01 GMT

@Anonymous wrote:
Ok so before I do all of these things should I pay off the collection accounts? Also I notice that one of my collection accts was reporting open which was weird..

Whether you pay old collection accounts is really up to you, but it does look better to have old items paid, even though it may not make much difference in your scores. Any CO credit card accounts that show an unpaid balance to the OC should be settled as priority number one, then any collections that are being updated each month should be settled. After that just work backward in time, trying to PFD each item.

Re: Rebuilding credit advice pleeease

Anonymous — Mon, 29 Jun 2015 15:04:34 GMT

Ok well I never had a credit card so I don't think I would have any debt that way. And I am new to this so i don't know what pfd means lol I'm sorry