topic Re: Building a better report. in Rebuilding Your Credit

Building a better report.

Anonymous — Fri, 09 Feb 2018 07:05:11 GMT

Updated - 2/9/18

(This is an older post that I have been updating and editing over time, so it's constantly evolving. I originally wanted to know what advice I could get in order to build a better credit report and also what I should do about a fairly large number of subprime credit cards and shopping cart trick credit cards that I had. I have since gotten rid of all of them with the exception of two from Credit One and one from Surge. If you read through all of the posts that others have posted in order to give me suggestions on building a better credit report, they may be based on credit cards that I have closed and are no longer included in this starting post. There are also a couple of collection accounts that have been removed also. I am currently working on paying off all of my current balances to lower my utilization below 10% and getting rid of both of my Credit One cards and the Surge card. I am still unsure about whether or not I want to keep the Merrick Bank card, but I'll figure that out later.)

I have been rebuilding for a over a year now and feel that I've made strides in the right direction. However, I still have work to do to get to where I want to be. A few years ago, I foolishly let my bills pile up without trying to call my creditors to work out a payment plan and just ignored them like the problem would magically fix itself. For that, I take full responsibility for being in a position where I have to rebuild. I currently have the following open accounts in good standing with no late payments amongst them:

-NFCU nRewards credit card at $2,000 CL, $1,855 balance (Opened August 2016)
-AmEX Green Card at $NPSL, $314 balance (Opened September 2017)
-Capital One Quicksilver at $600 CL, $579 balance (Opened November 2016)
-Merrick Bank credit card at $1,400 CL, $900 balance (Opened September 2016)
-Credit One Visa at $750 CL, $332 balance (Opened November 2016)

-Credit One Mastercard at $800 CL, $319 balance (Opened November 2017)
-Surge credit card at $800, $470 balance (Opened November 2016)
-Walmart credit card at $700 CL, $643 balance (Opened November 2016)
-Fingerhut at $700 CL, $0 balance (Opened October 2012)
-Overstock credit card at $1,050 CL, $50 balance (Opened November 2016)
-Sportman's Guide Visa at $1,000 CL, $0 balance (Opened February 2018)

-PayPal Rewards Cashback Mastercard at $300 CL, $0 balance (Opened February 2018)

-Brooks Brothers credit card at $600 CL, $0 balance (Opened February 2018)

-Discover IT credit card at $1,400 CL, $0 balance (Opened February 2018)

-Zales credit card (Authorized User with DW) at $3,000 CL, $538 balance (Opened February 2018)
-USDOE student loan at $63,978 (Opened April 2007)
-USDOE student loan at $13,979 (Opened November 2009)
-Discover student loan at $8,733 (Opened eMarch 2007)
-Honda car loan at $7,430 (Opened May 2013)
-Honda car loan at $3,696 (Opened October 2012)

I also have the following accounts reported in collections:
-Portfolio Recovery at $0 (Opened February 2015 and recently paid off.)
-Portfolio Recovery at $529 (Opened March 2016 and multiple $25 monthly payments remaining until PIF, but I will increase payments after other accounts are paid off.)

-Calvary Portfolio Services at $673 (Opened December 30, 2014 with monthly payments of $150 until PIF.)
-Nationwide Recovery medical bill at $2,678 (Opened May 2016)
-Central Financial medical bill at $394 (Opened December 2014)

As well, I have 8 closed installment accounts that were in good standing. Two were Honda car loans PIF, no lates. Five were student loan accounts. I also had a $1,000 personal loan that was PIF through Best Bank once their bank shut down. I made 6 on time payments and was given the option to close it with the bank paying the remaining balance since the government shut them down, but it reported as if I made an early lump sum payment.

There are also 5 accounts reporting negative in my credit report. A Georgia's Own credit card that was charged off with multiple late payments in 2014. A Home Depot credit card with multiple late payments, but I caught up on payments and they closed the account in 2015 with it still reporting as pays or paid as agreed with 90 days late. A Walmart credit card that was charged off in 2014 (they gave me another chance at a credit card that I currently have in good standing).There is a TJ Maxx credit card that was charged off in 2014. There is also a graduate level class from GCU that is reporting as a late payment, with a balance due of $1,600. I spoke with a supervisor of their collection's department and he gave me a promise to delete it upon full payment, so that is what I'll be handling.

Re: Building a better report.

Anonymous — Fri, 29 Sep 2017 17:50:25 GMT

Personally - I'd try to PFD a couple of the smaller collections (less than $200). Keep your UTIL low on the cards/accts open - you have a lot. And keep making your payments on your agreements. - Just getting the collections paid off and deleted is probably going to help you the most. Slowly ask for increases on CC's that softpull and try to avoid any HP's for 6 mos prior to going for mortgage.

If you have subprime cards with high annual fees - close them - they still report positive for like 10 years. You only really need to keep 3 cards - but don't close too many too fast either.......but if there a couple you would feel better ditching - go ahead.

It took me 2 years - but I FINALLY qualify for a mortgage - Wish my scores were a little higher - but mortgage score was a 659 - and my landlord wants to sell NOW - so I am out of time. A year is a long time - so work on getting PFDs where you can and know your mortgage score is usually higher than your FICO 8 - mine was by almost 25pts.

Re: Building a better report.

Anonymous — Fri, 29 Sep 2017 19:25:51 GMT

@Anonymous wrote:
Hi everyone, I have been rebuilding for a little over a year now and feel that I've made strides in the right direction. However, I still have work to do to get to where I want to be. A few years ago, I foolishly let my bills pile up without trying to call my creditors to work out a payment plan and just ignored them like the problem would magically fix itself. For that, I take full blame for being in a position where I have to rebuild instead of maintain. In order to get the best advice possible, this is where I currently stand. I currently have the following open accounts in good standing with no late payments:

-NFCU nRewards unsecured credit card at $2,000 CL from a $500 CL secured card, $473 balance (opened August 2016)
-AmEX green card (new and in the mail)
-Capital One Platinum unsecured credit card at $500 CL from $300 CL, $66 balance (opened November 2016)
-Merrick Bank unsecured credit card at $1,200 CL from $600 CL, $1,100 balance (opened September 2016)
-Credit One unsecured credit card at $550 CL from $300 CL, $246 balance (opened
-Total unsecured credit card at $300 CL, $0 balance (Opened November)
-First Access unsecured credit card at $300 CL, $0 balance (Opened December 2016)
-Milestone unsecured credit card at $300 CL, $0 balance (Opened November 2016)
-Surge unsecured credit card at $500 CL, $250 balance (Opened November 2016)
-Verve unsecured credit card at $500 CL, $0 balance (Opened November 2016)
-Walmart credit card at $500 CL, $395 balance (Opened November 2016)
-Fingerhut at $900 CL from $200 CL, $0 balance (Opened October 2012)
-Buckle SCT card at $250 CL, $0 balance (Opened November 2016)
-Victoria's Secret SCT card at $350 CL, $0 balance (Opened November 2016)
-Coldwater Creek SCT card at $500 CL, $0 balance (Opened November 2016)
-J Crew SCT card at $250 CL, $0 balance (Opened November 2016)
-Overstock SCT card at $250 CL, $0 balance (Opened November 2016)
-Full Beauty SCT card at $250 CL, $0 balance (Opened February 2017)
-Ann Taylor SCT card at $250 CL, $0 balance (Opened February 2017)
-Jessica London SCT card at $250 CL, $0 balance (Opened February 2017)
-Eddie Bauer SCT card at $250 CL, $0 balance (Opened February 2017)
-USDOE student loan at $62,923 (Opened April 2007)
-USDOE student loan at $13,699 (Opened November 2009)
-Discover student loan at $8,840 (Opened March 2007)
-Honda car loan at $9,546 (Opened May 2013)
-Honda car loan at $6,101 (Opened October 2012)

I also have the following accounts reported in collections:
-Portfolio Recovery at $215 (Opened February 2015 and two monthly payments remaining before PIF)
-Portfolio Recovery at $655 (Opened March 2016 and multiple $25 monthly payments remaining until PIF, bit will increase payments after other PRA account paid off next month)
-Nationwide Recovery medical bill at $2,678 (Opened May 2016)
-Central Financial medical bill at $394 (Opened December 2014)
-Central Financial medical bill at at $390 (Opened March 2014)
-Central Financial medical bill at $200 (Opened April 2013)

I also have another account not being reported on my credit report, but they served my job with garnishment paperwork, so I set up a payment plan to keep my wages untouched and them from reporting to the 3B's (payments are $150 for about 10 more months).
I also had two other reported collections that disappeared after I paid them off, although I didn't do a PFD with either of them. I was planning on attacking them strategically after they were paid, but they thankfully dismissed themselves.
Additionally, I had judgement from 2-3 years ago that was removed from the 3B's when the new reporting requirements took effect.

As well, I have 8 closed installment accounts that were in good standing. Two were Honda car loans PIF, no lates. Five were student loan accounts. I also had a $1,000 personal loan that was PIF through Best Bank once their bank shut down. I made 6 on time payments and was given the option to close it with the bank paying the remaining balance since the government shut them down, but it reported as if I made an early lump sum payment.
There are also 4 accounts reporting negative in my credit report. A Georgia's Own credit card that was charged off with multiple late payments in 2014. A Home Depot credit card with multiple late payments, but I caught up on payments and they closed the account in 2015 with it still reporting as pays or paid as agreed with 90 days late. A Walmart credit card that was charged off in 2014 (they gave me another chance at a credit card that I currently have in good standing). Also, there is a TJ Maxx credit card that was charged off in 2014.

I was carrying a balance on every one of my credit cards (not the SCT cards) for a few months and had an overall UTI of approximately 75%. However, I have been paying all of them down and now have a overall UTI of 25% and am continuing to attack the few that remain with a balance. I'm also dealing with paying debts that are in collections, so that has taken away from what I could have been putting elsewhere. What I really need advice on is how I need to deal with the subprime credit cards that have lower credit limits and high annual fees. I feel like they have served a purpose in helping me thicken my credit file with positive trade lines, but now that I've improved my scores, approximately 650 FICO 8 across the board from mid to high 500's last year, I'm not sure if I still need them. Nevertheless, I don't know if cancelling them all would be the smartest move as most people say to never close an account. So, I would appreciate any advice on the best way to deal with the subprime cards that I have. Also, since they don't have an AF, should I just let the SCT cards remain open? Any other advice that you think would be helpful would be appreciated as I really am looking forward to purchasing my first home within another year or so and understand that my scores should be as high as possible for the best interest rates.

IMHO, you have WAY too many junk cards. I would suggest you divest yourself from all but the top four cards, NFCU, Amex, Capital One, And Merrick - and maybe the Walmart card if you shop there a lot, because you get decent cashback credit with it. The rest are just junk cards that will keep you in "toy card hell". Cut them up and let the issuer close them from lack of use. The ones with annual fees, just close them before the next fee rolls around.

The Cap One card is more than six months old - apply for a second one (the Platinum, not the QS1), and start requesting CLI's (go online to do it) on the first one until you get it, then every six months from there on. Call their customer service and ask them if they can add QS rewards to it. If they approve you for a second card, (they should), wait 60 days and start requesting CLI's on that one. Request every day until you get it. Also request to have rewards added to that card as well. Use them to pay your bills and groceies and monthly expenses, and PIF every month BEFORE the statements close. The more PIF usage they see, the better. Pay them down every single payday. Those cards will grow VERY quickly if you do this. I went from having a $300 and a $500 card to having a $9800 card in about 18 months. And thats with ~600 FICO scores.

Re: Building a better report.

Anonymous — Sat, 30 Sep 2017 00:07:55 GMT

Hi @jlynn0819, I tried to PFD with the two accounts that I have with Portfolio Recovery, but they told me that they wouldn't. However, as much as I dislike junk debt buyers, the debt was mines and owed to someone, so I agreed to PIF and let it show creditors that I took care of my bad decisions completely. As well, Midland Credit also stopped reporting two collections that I paid off even though they told me that they wouldn't PFD so I'm hoping that the same happens with Portfolio Recovery. I haven't approached dealing with the 4 medical collection accounts yet. I need to figure out the best way to deal with them. With the SCT store cards, are you saying to just let them be and close on their own or do it myself?

Re: Building a better report.

Anonymous — Sat, 30 Sep 2017 07:07:24 GMT

Hi @NormanFH, I do agree with your opinion of having too many and I did literally cut all of them up with the exception NFCU and Cap One. The AmEx is on the way, but I did shred the Merrick Bank. Nevertheless, I'm carrying a balance on it until it's paid off, so will stay open. Thanks for the Cap One info and I'll follow it, but they did give me an auto CLI in May, so do I need to wait until November to see about getting another CLI? How about getting another Cap One card, do I need to wait until 6 months has passed since my last auto CLI or do you advise doing it anytime?

Re: Building a better report.

Anonymous — Sat, 30 Sep 2017 07:12:14 GMT

Update: I called Cap One and they told me that I qualified for an upgrade to the Quicksilver cash rewards card, so I accepted it and was told that my it didn't include an auto CLI. However, they told me to just go online/mobile app and request one. I did this, but was given a message saying something to the effect of I would get an email in a few days with a link to the results of the review! I don't know if this equates to a maybe or a definite no to the CLI. Either way, I'll keep trying to get it raised. I also paid the remaining balance on the card down to a $0 balance before I called them. Not sure how much, if any, that it helped.

Re: Building a better report.

Anonymous — Mon, 02 Oct 2017 01:25:22 GMT

Update: I received my AmEx green card yesterday and activated it. I had to call in to reset my account password, and also asked the CSR about what my internal spending limit was and she said that she was successful in seeing a $500 charge going through and told me that I could also check my spending power in the mobile app or website. She also said that since there was no activity, she could say so that's why she just randomly picked the $500 charge. I was already clear of the spending power button, but was wondering what they had decided to give me access to. At any rate, this card's limit is sort of irrelevant because I'll be keeping it's spend low considering that the bill is due in full every month. I'll focus more of my spend on actual credit cards in the hopes that I get the limits increased.

Speaking of CLI's, I received an email from Cap One saying that a document was available and it was the 2-3 day message saying that there was already a credit limit increase on the card. As said earlier, they gave me an auto CLI in May, so I guess they're waiting until November until they give me another one.

I also began to close some of my subprime credit cards, but was only able to get a CSR from Milestone to answer and went ahead and closed it. The guy that I talked to asked why I wanted to close it and I told him because of the high AF and low CL. He then suggested that I keep it open another month in case I needed to use it, but that was a big negative! He said that they would report it's closing to the 3B's and be sending me a letter noting that it was officially closed. Tomorrow, I'll call a few others and go ahead and get them closed before that AF hits in November for them.

Re: Building a better report.

Anonymous — Tue, 03 Oct 2017 01:07:35 GMT

Update: I called and closed my Total and First Access credit cards today. When I spoke to the CSR about why I was closing the cards, I gave her my reasoning and she agreed that the cards were for people who were rebuilding their credit and that they had served their purpose for me. At any rate, it does seem kind of weird because about a year ago, I was so excited to be approved for these cards, now I’m so excited to be getting rid of them.

Re: Building a better report.

Anonymous — Wed, 04 Oct 2017 00:53:19 GMT

Update: I cancelled three more of the SCT store cards that I didn't put a single charge on. I did the automated cancellation on the Jessica London, Ann Taylor, and Full Beauty cards. I also called and cancelled my Verve credit card. The CSR also advised me that the AF for the Surge credit card would be billed on November 23 at $96, so I'll be paying that balance off and cancelling it before then.

Re: Building a better report.

Adkins — Wed, 04 Oct 2017 17:45:17 GMT

Excellent job! Make sure you receive letters that the accounts are closed with a zero balance. And hold onto them. I put any closed account letters in with that year's tax paper work, so I have hard copy proof in case any shenanigans show up with the accounts later.

Re: Building a better report.

Anonymous — Wed, 04 Oct 2017 18:24:14 GMT

If you product change (upgrade) a Capital One card, it stops CLI requests for 6 months. Always request CLI before requesting an upgrade.

Re: Building a better report.

Anonymous — Wed, 04 Oct 2017 18:54:01 GMT

Thanks @Adkins, that sounds like a good way to keep track of those letters.

Re: Building a better report.

Anonymous — Wed, 04 Oct 2017 18:58:49 GMT

Wow @ABCD2199, if that’s the case. that sucks. The CSR didn’t mention that when I asked her. She just said that it didn’t matter and that I could request it anytime. However, I guess technically I can request whenever I want to, but I should’ve probably asked her was it likely that I’ll get a CLI!