topic Re: Rebuilding Log - Lets go! in Rebuilding Your Credit

Rebuilding Log - Lets go! OMW to 700!

lamplight2012 — Wed, 22 Feb 2017 01:33:31 GMT

Hello, all.

As of 02/21/2017 the main post has been updated. My journey started back in 2012 when I became frustrated with credit, and always being denied. Especially when I needed $$$ for a lawyer to fight for my son who was taken away. After 5 long years I'm finally back on my feet, and now I'm omw to 700!

My scores back when I started were: New Scores in sig.

EXP: 602, TU: 584, EQ: 604

Debt:

Child Support: 3K(Down from 11K)

Student Loan: 7K(Down from 9K)

Medical Collections: 10 - Following HIPPA Process to remove.

Re: Rebuilding Log - Lets go!

Anonymous — Thu, 08 Oct 2015 00:48:04 GMT

I would check the Cap1 prequalification site to see if they have any unsecured cards you might qualify for. They have a good secured option as well. I went with OpenSky for my secured card. The no credit check for approval was what drew me in. When I started after my BK7, I didn't want a denial, so went with the one that was pretty much guaranteed. Only a $200 minimum deposit and a $29 annual fee. It will never graduate to an unsecured card though, so if you want something that graduates, that is not one to go with. Good luck!

Re: Rebuilding Log - Lets go!

lamplight2012 — Thu, 08 Oct 2015 01:20:34 GMT

Thanks for the response, Cruznmore.

After looking into it briefly it looks like the OpenSky is good, but like you said it doesn't graduate. I still may look into it.

Question: Should I clean up the collections before I apply for a secured credit card that does a credit pull? I'm looking at the Bank Of America Secured Card, and it looks like it does a credit pull on Experian. I just found these requirements from another thread

-----------------------------

To be eligible for a secured account, you must meet the following requirements: Bank Of America Secured CC

Minimum age 18

Must be an U.S. citizen or permanent resident with a valid social security number or Tax payer I.D. number with a US mailing address (for nonresident alien, refer to Non-Resident Alien policy)

No Unpaid Bank of America charge-off

No Bankruptcy No Repossession (voluntary or involuntary) < 36 months

No Foreclosure (includes deed in lieu) < 36 months

No known unpaid charge-off accounts > $1000 with any financial institution including retail cards and student loans < 36 months

Does that mean that any debt above $1,000 disqualifies you? Or does 'charge-off' mean credit cards, auto & student loans?

Re: Rebuilding Log - Lets go!

Anonymous — Thu, 08 Oct 2015 01:47:21 GMT

@lamplight2012 wrote:
Thanks for the response, Cruznmore.

After looking into it briefly it looks like the OpenSky is good, but like you said it doesn't graduate. I still may look into it.

Question: Should I clean up the collections before I apply for a secured credit card that does a credit pull? I'm looking at the Bank Of America Secured Card, and it looks like it does a credit pull on Experian. I just found these requirements from another thread

-----------------------------
To be eligible for a secured account, you must meet the following requirements: Bank Of America Secured CC

Minimum age 18

Must be an U.S. citizen or permanent resident with a valid social security number or Tax payer I.D. number with a US mailing address (for nonresident alien, refer to Non-Resident Alien policy)

No Unpaid Bank of America charge-off

No Bankruptcy No Repossession (voluntary or involuntary) < 36 months

No Foreclosure (includes deed in lieu) < 36 months

No known unpaid charge-off accounts > $1000 with any financial institution including retail cards and student loans < 36 months

Does that mean that any debt above $1,000 disqualifies you? Or does 'charge-off' mean credit cards, auto & student loans?

Normally a charge off will show $0 balance, but they may refer to charge off where the original balance (charged off amount) is more than $1,000

Re: Rebuilding Log - Lets go!

lamplight2012 — Thu, 08 Oct 2015 03:19:58 GMT

Thanks, AhmedInVA

Once First Premier removes the tradeline by or before the 21st of this month I'll take a stab @ BoA. If I get denied, I'll just move forward with OpenSky

Re: Rebuilding Log - Lets go!

Anonymous — Thu, 08 Oct 2015 04:20:30 GMT

@AhmedInVA wrote:
@lamplight2012 wrote:
Thanks for the response, Cruznmore.

After looking into it briefly it looks like the OpenSky is good, but like you said it doesn't graduate. I still may look into it.

Question: Should I clean up the collections before I apply for a secured credit card that does a credit pull? I'm looking at the Bank Of America Secured Card, and it looks like it does a credit pull on Experian. I just found these requirements from another thread

-----------------------------
To be eligible for a secured account, you must meet the following requirements: Bank Of America Secured CC

Minimum age 18

Must be an U.S. citizen or permanent resident with a valid social security number or Tax payer I.D. number with a US mailing address (for nonresident alien, refer to Non-Resident Alien policy)

No Unpaid Bank of America charge-off

No Bankruptcy No Repossession (voluntary or involuntary) < 36 months

No Foreclosure (includes deed in lieu) < 36 months

No known unpaid charge-off accounts > $1000 with any financial institution including retail cards and student loans < 36 months

Does that mean that any debt above $1,000 disqualifies you? Or does 'charge-off' mean credit cards, auto & student loans?
Normally a charge off will show $0 balance, but they may refer to charge off where the original balance (charged off amount) is more than $1,000

Not true at all. Charge off merely means the account has been delinquent for 180 days. That means it is no longer considered an "asset", but a liability or loss. It will not show a zero balance until the account is sold off to a JDB or its paid.

Re: Rebuilding Log - Lets go!

lamplight2012 — Thu, 08 Oct 2015 13:23:20 GMT

NormanFH,

When you say

By account, do you mean any type of collection on the CR? Or is this 'Charge off' only limited to credit type collections? I'm just trying to see if it's worth it to try BoA when I have a few collections that I'm working on. Don't want to waste a HP.

Re: Rebuilding Log - Lets go!

Anonymous — Thu, 08 Oct 2015 14:26:15 GMT

I'd start at the bottom on your collections and see how many you can PFD. Heck $200 would reduce the number of your medical accounts drastically. The number of collection accounts hurts and you could nearly cut them in 1/2 without too much cash outlay. Even more depending on your ability to knock them off! I saw a score jump every time I knocked one off.

Also - make sure you contact the state about the reporting child support. I showed that I had a $30 child support deal on mine - which was impossible - C/S was withheld from my check and I was never behind. It simply reported strangely one month - like payday and reporting day were the same day - so it had been withheld, but the state didn't have it yet - and then they never took it back off. My daughter is 19 years old and lived with me for the past 3 years in which I received C/S and somehow it was just hanging around on the report. I had to contact the state and get a letter showing it was paid as well as asked them to remove from CR - which they did immediately - but sometimes the state is a little slow on reporting those things......just watch it and make sure.

Re: Rebuilding Log - Lets go!

Anonymous — Thu, 08 Oct 2015 15:01:50 GMT

A charge off is for any type of account, not just credit cards. It removes the dollar amount in question from the books as receivable revenue. All it means is the original creditor cannot count it as "income". But the debt is still owed, and only goes to zero if you pay it, or they discharge the debt entirely, and send you a 1099c (I think) for you to pay taxes on it.

Re: Rebuilding Log - Lets go!

lamplight2012 — Thu, 08 Oct 2015 15:39:39 GMT

Jlynn0819,

I've prepared my letters(DV) to be sent to the CA's. Just need to take them to the post office to send once lunch time comes around.

Also, is it okay to list multiple accounts on a DV? I've five with the same collection agency.

Currently, my child support is reporting as 'OK' each month. Mine too is witheld from my check. My balance on the CS order should drop to around 4K after the audit, and correction of the balance. I plan on knocking that out quickly once my lawyer is paid.

I appreciate all of the help!

Re: Rebuilding Log - Lets go!

lamplight2012 — Thu, 08 Oct 2015 15:40:36 GMT

Thanks for the explanation!

@Anonymous wrote:
A charge off is for any type of account, not just credit cards. It removes the dollar amount in question from the books as receivable revenue. All it means is the original creditor cannot count it as "income". But the debt is still owed, and only goes to zero if you pay it, or they discharge the debt entirely, and send you a 1099c (I think) for you to pay taxes on it.

Re: Rebuilding Log - Lets go!

Anonymous — Thu, 08 Oct 2015 17:06:33 GMT

@lamplight2012 wrote:
NormanFH,

When you say
Not true at all. Charge off merely means the account has been delinquent for 180 days. That means it is no longer considered an "asset", but a liability or loss. It will not show a zero balance until the account is sold off to a JDB or its paid.

By account, do you mean any type of collection on the CR? Or is this 'Charge off' only limited to credit type collections? I'm just trying to see if it's worth it to try BoA when I have a few collections that I'm working on. Don't want to waste a HP.

I'm referring to ANY OC account that is reporting as a Charge Off. That can be a credit card, an installment loan, a utility account etc. Collection accounts being reported by a CA do not fall into this category.

Re: Rebuilding Log - Lets go!

Anonymous — Thu, 08 Oct 2015 17:08:40 GMT

@Anonymous wrote:
A charge off is for any type of account, not just credit cards. It removes the dollar amount in question from the books as receivable revenue. All it means is the original creditor cannot count it as "income". But the debt is still owed, and only goes to zero if you pay it, or they discharge the debt entirely, and send you a 1099c (I think) for you to pay taxes on it.

Yes, that is another way the account balance may be zeroed out, although some creditors do not do that, arguing the 1099C is only a IRS 'formality".

Re: Rebuilding Log - Lets go!

lamplight2012 — Thu, 08 Oct 2015 18:13:24 GMT

NormanFH,

That's good news. None of my collections are with the OC except for First Premier & that should be off my CR by the 21st.

Update: I've sent out my letters to the CA's. I'll continue to update my journey! Feels good to be back on track.

I'm referring to ANY OC account that is reporting as a Charge Off. That can be a credit card, an installment loan, a utility account etc. Collection accounts being reported by a CA do not fall into this category.

Re: Rebuilding Log - Lets go!

lamplight2012 — Fri, 09 Oct 2015 01:00:54 GMT

At this time I've sent the following letters: I'm starting with Experian first. I decided to make a spreadsheet on Google Docs to organize everything.

Experian(8 Medical Accts)	Sent Pre-Hippa	10/8/2015
Credit Protection Associates	Goodwill letter(paid)	10/8/2015
KY Higher Education	Goodwill letter(late)	10/8/2015
Enhanced Recovery Corp	Sent DV letter	10/8/2015

Re: Rebuilding Log - Lets go!

Anonymous — Fri, 09 Oct 2015 01:15:56 GMT

You've been busy!! Here's to hoping everything goes smoothly with your requests. I have averaged about 75% success rate with my disputes so far. For every 3 things I get corrected, I get 1 stubborn one that just sticks. So every morning I coach myself in the shower. Patience, patience, patience....sometimes it works better than others.

Re: Rebuilding Log - Lets go!

lamplight2012 — Sat, 10 Oct 2015 21:30:13 GMT

@Anonymous wrote:
You've been busy!! Here's to hoping everything goes smoothly with your requests. I have averaged about 75% success rate with my disputes so far. For every 3 things I get corrected, I get 1 stubborn one that just sticks. So every morning I coach myself in the shower. Patience, patience, patience....sometimes it works better than others.

For sure!

That's what I'm expecting to happen as well. I keep visualizing getting all of these CA's taken care of, and then all of a sudden I get an alert that something has been added to my CR, lol.

I'm trying to make this process very simple, and just keep working at it. Now it's kinda like weight off my shoulders since I've sent the letters. Doing something is better than doing nothing

Good luck to you on your rebuilding process! I may have to start coaching myself in the shower, too. lol

Re: Rebuilding Log - Lets go!

Anonymous — Sun, 11 Oct 2015 05:21:39 GMT

I think the 1099c only comes into play if the debt is over 600.

lamplight2012 - I think I had a similar mindset when I started rebuilding, and I dont think I would do it the same way if I was starting again.

I thought I should clear old problems before starting new TLs so I waited quite awhile to apply for new. There is a definite relationship to old problems and the ability to get good credit lines going again. But I'm thinking that might not be the only point to consider.

The Fico scoring doesnt really care if you have a 'prime' CC or not. It is just looking for 3 or more revolving accounts, and the amounts do not matter right now, and if they are secured or not doesnt matter right now.

I waited, and eventually I got subprime offers from Credit One and Orchard Bank (later sold to Cap1). I joined USAA and got auto insurance, and they offered to let me app for a CC and it was declined, but they offered a secured card and I accepted, and made it for 250. It was somewhere between 18 months and 2 years for this.

I think I could have made more progress in recovering faster by going for secured CCs sooner and for looking for things like Cap1 rebuilder cards.

My point is, credit history counts for 35% of your score, and current accounts including UTI counts for another 30%. But you can and should work on both sections at the same time.

I feel like I would have been two years further ahead if I would have known that when I started rebuilding. Now I am getting rid of the subprime cards and replacing them with better CCs and higer limits, and Fico still doesnt care.

HTH

Re: Rebuilding Log - Lets go!

lamplight2012 — Mon, 12 Oct 2015 18:15:41 GMT

@Anonymous wrote:
I think the 1099c only comes into play if the debt is over 600.

lamplight2012 - I think I had a similar mindset when I started rebuilding, and I dont think I would do it the same way if I was starting again.

I thought I should clear old problems before starting new TLs so I waited quite awhile to apply for new. There is a definite relationship to old problems and the ability to get good credit lines going again. But I'm thinking that might not be the only point to consider.

The Fico scoring doesnt really care if you have a 'prime' CC or not. It is just looking for 3 or more revolving accounts, and the amounts do not matter right now, and if they are secured or not doesnt matter right now.

I waited, and eventually I got subprime offers from Credit One and Orchard Bank (later sold to Cap1). I joined USAA and got auto insurance, and they offered to let me app for a CC and it was declined, but they offered a secured card and I accepted, and made it for 250. It was somewhere between 18 months and 2 years for this.

I think I could have made more progress in recovering faster by going for secured CCs sooner and for looking for things like Cap1 rebuilder cards.

My point is, credit history counts for 35% of your score, and current accounts including UTI counts for another 30%. But you can and should work on both sections at the same time.

I feel like I would have been two years further ahead if I would have known that when I started rebuilding. Now I am getting rid of the subprime cards and replacing them with better CCs and higer limits, and Fico still doesnt care.

HTH

Thank you very much for the insight, ashbinjax!!

After making a thread over in the Credit Card Approval section(http://ficoforums.myfico.com/t5/Credit-Card-Approvals/Bank-Of-America-secured/td-p/4272349) I was given some really good suggestions. Once my ChexSystem report is delivered(In about 5 days) I'll apply for SDFCU for a secured credit card. I have a charge off account that is due to come off by the 21st of this month. So SDFCU is a great option since it only does a soft pull on Experian.

Next, I really want to get the BoA secured credit card since it unsecures after a year & then try for a Capital One, so I can have three revolving accounts.

But, I keep telling myself "One step at a time"

Re: Rebuilding Log - Lets go!

lamplight2012 — Thu, 15 Oct 2015 14:07:51 GMT

I must add,

The waiting game is the worst part.