topic Re: First Post in Rebuilding Your Credit

First Post

Oakland915 — Sun, 09 Apr 2017 20:32:34 GMT

Hello Everyone My name is Rudy and I'm working on repairing my credit. Don't really know how it works but I know I'm in the right place. I just checked my scores and their are: EQ: 636; TU: 639. I have the option to redeem the Experian Report but it's telling me I did already. But, I haven't pulled the Experian. What can I do for this so that I can see the scores? I don't have any credit cards of my own. I'm just an authorized user on my wife credit card. What can I do to build up my score? What would be a good credit card to start with? Thanks for all the help and support

Re: First Post

Anonymous — Sun, 09 Apr 2017 20:41:47 GMT

Welcome. Well the first thing I would do is find out what my FICO (not Credit Karma ) scores are and obtain my credit reports. To get really good guidance on this forum, it is best to post you current FICO scores, current utilzation, collections/derogatory accounts, installments and average age of accounts. Also what your short term goals are....

Re: First Post

Oakland915 — Sun, 09 Apr 2017 20:45:53 GMT

I signed up for the fico subscription and my scores are EQ: 636 and TU 639. I have to contact fico tomorrow to find out why i can't access Experian. Short term goals: Need a vehicle but doubt if my scores are good enough. So, I want to work on this. And also to get a card to help me build a good credit history

Re: First Post

Anonymous — Sun, 09 Apr 2017 20:49:03 GMT

Fairly new as well but based on what I've read here, u want 2-3 revolving accounts (CCs) and an installment loan (student loans, auto, personal) to cover ure bases. Then keep one card reporting less than 10% of the limit every month while the other two report 0. However make sure u use them to ensure they aren't closed. Most people seem like they set up a cable bill or phone bill on autopayment then pay it off immediately.

Re: First Post

Oakland915 — Sun, 09 Apr 2017 21:01:02 GMT

Are there any credit cards out there that I might be approved for based on my scores.

Re: First Post

medicgrrl — Mon, 10 Apr 2017 03:32:21 GMT

Have you tried the Cap 1 prequal site yet?

Re: First Post

Oakland915 — Mon, 10 Apr 2017 03:36:33 GMT

I had an account with Cap One before and messed it up.

Re: First Post

medicgrrl — Mon, 10 Apr 2017 03:40:58 GMT

@Oakland915 wrote:
I had an account with Cap One before and messed it up.

How long ago? They are a VERY forgiving company if it's been over a year since it was charged off.

Re: First Post

Anonymous — Mon, 10 Apr 2017 03:44:34 GMT

Do you have some money ($300-$1000) that you can tie up for a while in a secured card?

The reason I ask is because outside of Capital One, there aren't any good cards that are likely to look at you and you don't want to go to the bad cards if you don't have to. NFCU can be one card, but if you try for them and get denied, you'll want to open a secured card ($500) with them instead. If you get approved, then you can get a secured Discover or BOA card.

If you can't tie up that much money, then you may need to go with store cards to fill out your 3-card starting roster.

Re: First Post

Oakland915 — Mon, 10 Apr 2017 03:46:59 GMT

Yes, it's been over a year

Re: First Post

medicgrrl — Mon, 10 Apr 2017 03:51:12 GMT

I would at least try the prequal site. Next questions...What do you have that's negative on your credit report? Is everything paid? The credit cards that you are an authorized user on, what is the credit limit and balances that are reporting? Do you have any installment debt currently reporting on your credit report?

Re: First Post

Oakland915 — Mon, 10 Apr 2017 04:24:21 GMT

I checked out Cap One and it stated that I pre qualify for the QS and the Platinum. The QS annual fee is $39 and the Platinum is $)

Fingerhut/Webbank
Charge Account
XXXXXXXXXXXXXXXX
Individual
Jun, 2011

Nov, 2015 Aug, 2014 -
Not Updated

Closed -
Dec, 2013
$0
Charge-off

Paypalsmart

June 2011

Account states charge off:

I paid this account

Capital One (the one I had)

States Account Terminated

Pays Account as Agreed

Capital one (Authorized User)

Open 2010

Pay account as agreed

Re: First Post

medicgrrl — Mon, 10 Apr 2017 11:48:22 GMT

@Oakland915 wrote:
I checked out Cap One and it stated that I pre qualify for the QS and the Platinum. The QS annual fee is $39 and the Platinum is $)

Fingerhut/Webbank
Charge Account
XXXXXXXXXXXXXXXX
Individual
Jun, 2011

Nov, 2015 Aug, 2014 -
Not Updated
Closed -
Dec, 2013
$0
Charge-off

Paypalsmart

June 2011

Account states charge off:

I paid this account

Capital One (the one I had)

States Account Terminated
Pays Account as Agreed

Capital one (Authorized User)

Open 2010

Pay account as agreed

Awesome on the Cap 1! The QS1 is a rewards card but has an AF. Some people have had luck product changing it to the regular QS card after time. The Platinum seems like an easier one to change to a QS with no AF. You can research those to determine which is best for you.

So from what I can tell with the above info, it looks like your charge off's are about 4 years old, correct? Does your old Cap 1 no longer show as a negative account?

What is the balance and high credit limits on your wifes cards? If she carries a balance, you may find that after you start establishing your own credit your scores would possibly increase by removing yourself as an authorized user. Utilization factors in pretty high on credit scores.

The other thing that will help you is an installment loan. There is a trick that people use to increase their scores thru a shared secured loan. If you search that topic on the forum you will find lots of great information on how that works. If you can't find it just let us know...many people here have the link saved.

I think you are in a much better place on your credit than you realize!

Re: First Post

Oakland915 — Mon, 10 Apr 2017 12:14:13 GMT

My old Cap1 isn't showing negative. My wife credit card limit is $1000 with a balance of $0.00. Should I remove myself from being an authorized user. She was helping me build my credit score. They were pretty bad last year Dec. My scores were in the high 400's. When a new report was available on 4/8 it stated my scores were in the 600's. I was very shocked but happy. I applied for thebcapn1 AS and was approved for $1,000. So, I have two cc's with the same limit.

Re: First Post

medicgrrl — Mon, 10 Apr 2017 12:24:22 GMT

@Oakland915 wrote:
My old Cap1 isn't showing negative. My wife credit card limit is $1000 with a balance of $0.00. Should I remove myself from being an authorized user. She was helping me build my credit score. They were pretty bad last year Dec. My scores were in the high 400's. When a new report was available on 4/8 it stated my scores were in the 600's. I was very shocked but happy. I applied for thebcapn1 AS and was approved for $1,000. So, I have two cc's with the same limit.

No, I wouldn't remove yourself. Since she is not carrying a high balance then the age of her account is helping you. Congrats on the new card! 2 other things to research would be Discover card and NFCU. NFCU is great for rebuilders...not to mention just a really great credit union with exceptional customer service!

For scoring purposes, they say that having 3 revolving accounts with 1 account reporting a small balance of less than 9% will give you better scores than having all of your accounts showing a $0 balance. This is pretty easy to accomplish by paying your credit card before the statement cuts and leaving less than 9% balance. The statement balance is what is typically reported to the credit bureaus. Once the statement cuts, you can pay off the remaining balance so that you are not paying interest.

As far as the auto loan that you are wanting, I really think there are going to be some options out there for you. Cap 1 has a prequal site for that. NFCU is more forgiving when a loan is secured so they would be a good option too if you can join. If you aren't a veteran and don't have a family member who is a veteran, there's another way to join that's listed all over these forums.

Re: First Post

Oakland915 — Tue, 11 Apr 2017 03:47:16 GMT

Thanks medicgrrl

Well, so far I have acquired (2) credit cards Cap1 and Discover with a credit limit of $1,000 each. Do I need to add another one?. I applied for DCU membership. I was thinking of applying for their credit card. For NFCU credit card must you be a member. Also, I went on the Cap1 auto navigator and was approved for a loan up to $35,000. But, the APR confuses me. It states the range of approval is 3.98 - 13.26%. I would love the lower APR.

Also, my wife is trying to improve her scores which are EQ: 617 TU: 618. EX: 614

She had about 4 accounts charged off which she is working on paying off. She had (4) credit card accounts (2) capital one with s $1,000 credit limit $0 balance (authorized user on that one) pays on time: 2nd capital one $750.00 cl $200.00 balance and another cap 1 account restricted with ,$190.00 left to payoff. And, a MCU secured card with $300.00 cl $90 credit balance. When I get my new cards should I make her an authorized user to help her.

Re: First Post

medicgrrl — Tue, 11 Apr 2017 12:30:33 GMT

@Oakland915 wrote:
Thanks medicgrrl

Well, so far I have acquired (2) credit cards Cap1 and Discover with a credit limit of $1,000 each. Do I need to add another one?. I applied for DCU membership. I was thinking of applying for their credit card. For NFCU credit card must you be a member. Also, I went on the Cap1 auto navigator and was approved for a loan up to $35,000. But, the APR confuses me. It states the range of approval is 3.98 - 13.26%. I would love the lower APR.

Also, my wife is trying to improve her scores which are EQ: 617 TU: 618. EX: 614

She had about 4 accounts charged off which she is working on paying off. She had (4) credit card accounts (2) capital one with s $1,000 credit limit $0 balance (authorized user on that one) pays on time: 2nd capital one $750.00 cl $200.00 balance and another cap 1 account restricted with ,$190.00 left to payoff. And, a MCU secured card with $300.00 cl $90 credit balance. When I get my new cards should I make her an authorized user to help her.

I think the 2 new cards plus the 1 card you are an authorized user on should be sufficient at this point. You'll want 2 of the cards to report a $0 balance and 1 card to report a small balance of less than 9%. As far as NFCU, you do have to be a member to apply for their products. There are several ways to join listed on their website. There's also a way on the forums that is not listed on their website and that is thru the Navy League of San Diego. There's an entire thread dedicated to joining this way. Also, research DCU on here. I'm pretty sure that I read that they have great auto products for rebuilders. I went thru Cap 1. The good thing about the auto navigator is that once you have an idea of what kind of car you want, you can put VIN #'s in your application along with down payment information and it will give you a better idea about the rate. I did this with several vehicles I was interested in (different packages etc) and then printed off the information and took it with me to the dealership. I did end up with a slightly higher rate, but that was due to my trade in being less than I anticipated. By bringing in the paperwork, it'll help you from getting a high rate from the dealer. But definitely check out DCU first.

As far as your wife, the charged off accounts are credit cards? If they are, they are hurting her utilization until they are paid. What are the balances and ages on those? If they are old enough, she may be able to negotiate some lower settlements on them. As far as her credit score, the fastest way to increase hers is by paying off the $190 left on the Cap 1 account (Is this account closed? ), pay off the $90 on the MCU and bring the card with the $750 limit down to less than 9%. The thing that would help you both would be to actually pay off the card with the $750 limit and have a balance on the $1000 card that you are an authorized user on. Having a $0 balance on all cards actually hurts your scores (I knew this and actually experienced it this week when I lost 17 points because all of my cards are at $0 right now)

If you can do a joint application for the car loan this will really help you both. The scoring system likes to see a mix of credit so adding an installment loan to both of your reports will be good. What is your timeframe for wanting to purchase a new vehicle?

Re: First Post

Oakland915 — Tue, 11 Apr 2017 14:07:03 GMT

I will search for the NFCU thread about their website.

My wife's charge off's are the following:

Verizon Wireless

Date Open: 2015

Owe: $829.00

Care Credit

Date Open: 2012

Credit limit: $500

High balance $938.00

Ginny's Inc

Date Open: 2012

Owe: $478

Capital One (Joint Owner with dtr)

Dtr never paid so my wife is responsible

Third party had account and my wife couldn't pay it back and they sent it back to Capital One. On credit report states account loss by creditor

Re: First Post

medicgrrl — Tue, 11 Apr 2017 14:17:14 GMT

I would work on the Verizon and Cap 1 accounts first. Verizon is most likely still within the statute of limitations to be able to take legal action. I'm not sure if the other 2 are within the SOL still...it depends on when they became delinquent. Once you get approved for DCU, you may be able to take out a small personal loan to help her fix her credit. Just make sure it's within your debt to income for qualifying for the car loan. I think once those are paid off, she'll see her score increase, probably another increase when she pays her other credit cards down and will also get a boost from having an installment loan if you can get a good rate with both of you on the car loan. If you can transfer the balance from her secured card to the card that you are authorized on, you will probably see a score boost. I'm helping my son with perfecting his credit scores right now and we found the easiest and cheapest way to "balance transfer" was to pay a household bill with the card he wants the balance on and then take the bill money to pay off the card he wants to report $0.

You both are in a really great place for rebuilding right now. Have you been to the auto forum yet? You may get some good info there abou DCU and other lenders.

Re: First Post

Oakland915 — Tue, 11 Apr 2017 14:50:14 GMT

When working on paying off delinquent accounts, can you ask for a settlement offer. When my wife tried to pay one of the accounts through the third party online payment service it stated had reached the SOL.

Also, I was just approved for the DCU checking/savings account. What would be the next step? Should I request for a DCU credit card? Or, just be ok with what I have now. Also, the personal loan is an excellent idea. I will do that.

I'm a little confused on the secured card. The secured card my wife has through her credit union. How would she go about transferring that to her Capital One account? Is that possible?

And, the car loan is needed asap. Will check out the DCU threads now.

thanks medicgrrl we really appreciate this.