topic Re: Looking for advice on rebuilding. in Rebuilding Your Credit

Looking for advice on rebuilding.

falcon7xx — Mon, 16 Jul 2018 17:44:37 GMT

I lost a business 2 years ago and it crushed me as I had no income and a stack of debt. Over the past 2 years I have paid everything off or settled my debts. My scores are as follows:

Equifax - 611
Transunion - 582
Experian - 613

Recently I took out a motorcycle loan for a Harley I bought. Probably not the smartest idea but I figured it would help build my credit with on time payments. I have no credit cards currently, so what is my best bet for getting a credit card again to help build my credit? Also I am an authorized signor on a company credit card that shows up on my personal credit report. The credit card limit is high as well at the utilization on that card however it’s always paid on time but I’m wondering if this is hurting me or helping me. My credit report shows the high balance but when I use the credit simulator it does not show it as high utilization.

I also need to go for an auto loan soon, so I am trying my best to bump my scores before applying. I have a very good debt to income ratio as I make over $100k/year and currently just have the Harley as my only debt.

Any suggestions are greatly appreciated.

Re: Looking for advice on rebuilding.

Anonymous — Mon, 16 Jul 2018 19:48:02 GMT

@falcon7xx wrote:
I lost a business 2 years ago and it crushed me as I had no income and a stack of debt. Over the past 2 years I have paid everything off or settled my debts. My scores are as follows:

Equifax - 611
Transunion - 582
Experian - 613

Recently I took out a motorcycle loan for a Harley I bought. Probably not the smartest idea but I figured it would help build my credit with on time payments. I have no credit cards currently, so what is my best bet for getting a credit card again to help build my credit? Also I am an authorized signor on a company credit card that shows up on my personal credit report. The credit card limit is high as well at the utilization on that card however it’s always paid on time but I’m wondering if this is hurting me or helping me. My credit report shows the high balance but when I use the credit simulator it does not show it as high utilization.

I also need to go for an auto loan soon, so I am trying my best to bump my scores before applying. I have a very good debt to income ratio as I make over $100k/year and currently just have the Harley as my only debt.

Any suggestions are greatly appreciated.

Thanks for sharing, OP!

I suggest getting 3 secured cards because you need at least 3 revolving accounts to build an optimal Fico score.

I am curious as to whether you have any accounts in collections or charge-offs. If so, please tell me with what lenders and whether you still owe them.

Re: Looking for advice on rebuilding.

falcon7xx — Mon, 16 Jul 2018 20:11:55 GMT

I have 2 or 3 medical bills in collection as well as A utility company. I do have charge off from Discover, Capital One, Chase as I settled the amounts for 20-40 cents on the dollar on some of them. I know it might not have been the best decision but they were hounding me with threatening lawsuits because of the high credit amounts, so I negotiated every credit card down to low settlements. They all asked what happened since I was such a good payer until everything went bust. Also had my father pass away with cancer at the time, so it was a hectic time.

I don’t know if I could get a cap one or discover secured card due to my recent history with them.

Re: Looking for advice on rebuilding.

Anonymous — Mon, 16 Jul 2018 20:18:44 GMT

@falcon7xx wrote:
I have 2 or 3 medical bills in collection as well as A utility company. I do have charge off from Discover, Capital One, Chase as I settled the amounts for 20-40 cents on the dollar on some of them. I know it might not have been the best decision but they were hounding me with threatening lawsuits because of the high credit amounts, so I negotiated every credit card down to low settlements. They all asked what happened since I was such a good payer until everything went bust. Also had my father pass away with cancer at the time, so it was a hectic time.

I don’t know if I could get a cap one or discover secured card due to my recent history with them.

If settling meant being able to breathe again, don't worry---I am in the same boat.

You are probably blacklisted from Capital One and Discover, so consider going for the Open Sky Secured Visa (it requires no credit check), Bank of America Secured Visa or the US Bank Secured Visa assuming that you did not settle with them.

BTW: I am very sorry about your father.

Re: Looking for advice on rebuilding.

falcon7xx — Mon, 16 Jul 2018 20:25:03 GMT

Thanks...that’s the way life works. Do you get blacklisted forever from those credit cards or after a while they let you back in?

Also do I just go for one secured card right now or 3?

Also any other steps to take?

Re: Looking for advice on rebuilding.

Anonymous — Mon, 16 Jul 2018 20:28:29 GMT

@falcon7xx wrote:
Thanks...that’s the way life works. Do you get blacklisted forever from those credit cards or after a while they let you back in?

Also any other steps to take?

With most lender, yes. But give Capital One a year, and they let you back in---they are very forgiving.

As for steps, try to keep your credit utilization below 30% and pay in full every month. Also, don't be reliant on credit cards and consider opening a savings account (unless you have one). Your father's death was a wake-up call (I would know ), so you will need to be prepared for what life throws at you.

Don't apply for subprime cards like Credit One and First Premier---they are not worth it. Based on your scores, you should be in the 700s club in the next year or two. But the charge-offs and collections will stay on your report for 7 sevens starting from the date of first delinquency.

You are strong, OP! Feel free to peruse the forums for advice on developing good credit-managing habits.

Re: Looking for advice on rebuilding.

Anonymous — Mon, 16 Jul 2018 20:29:27 GMT

@falcon7xx wrote:
Thanks...that’s the way life works. Do you get blacklisted forever from those credit cards or after a while they let you back in?

Also do I just go for one secured card right now or 3?

Also any other steps to take?

If possible, yes. If not, take your time and work towards it slowly. 3 is recommended for an optimal Fico score.

Re: Looking for advice on rebuilding.

falcon7xx — Mon, 16 Jul 2018 20:36:24 GMT

I do currently have a savings account with a decent balance. Does a savings account help with your credit in anyway or just as a great practice since we all don’t want to have this credit drop happen again.

Re: Looking for advice on rebuilding.

Anonymous — Mon, 16 Jul 2018 20:39:35 GMT

@falcon7xx wrote:
I do currently have a savings account with a decent balance. Does a savings account help with your credit in anyway or just as a great practice since we all don’t want to have this credit drop happen again.

It can be useful for when things start to fall apart again.

Re: Looking for advice on rebuilding.

falcon7xx — Mon, 16 Jul 2018 20:48:40 GMT

I just applied for the US Bank secured Visa. They said takes 7-10 days for a decision. Seems strange if your securing the whole amount, why they would be approval right away

Re: Looking for advice on rebuilding.

Anonymous — Mon, 16 Jul 2018 20:49:43 GMT

@falcon7xx wrote:
I just applied for the US Bank secured Visa. They said takes 7-10 days for a decision. Seems strange if your securing the whole amount, why they would be approval right away

I would call in and see whether you can verify some information---that usually is the case.

Re: Looking for advice on rebuilding.

Anonymous — Mon, 16 Jul 2018 20:55:44 GMT

I have been in banking for several years and I have an idea of a way to get a loan to rebuild your credit. You said you have some money in savings. Go to a bank and open up a Certificate of Deposit and then you will be able to get an installment loan using your Certificate of Deposit for collateral. There are no credit checks usually and this is a way that a lot of people rebuild their credit. Hope this helps.

Re: Looking for advice on rebuilding.

Anonymous — Mon, 16 Jul 2018 20:59:01 GMT

@Anonymous wrote:
I have been in banking for several years and I have an idea of a way to get a loan to rebuild your credit. You said you have some money in savings. Go to a bank and open up a Certificate of Deposit and then you will be able to get an installment loan using your Certificate of Deposit for collateral. There are no credit checks usually and this is a way that a lot of people rebuild their credit. Hope this helps.

Great suggestion! I have that kind of account; it really helps with credit mix.

Re: Looking for advice on rebuilding.

falcon7xx — Mon, 16 Jul 2018 21:17:16 GMT

I called US Bank they said it has to go through a manual review. I have never dealt with them before so hopefully it goes through. Bank of American denied me. I’m guessing it’s because I had some delinquent payments with them even though I paid that off in full a few months ago. I am going to try the open sky now. What is the best strategy with the installment loan. Open a CD and then take a loan out against it but for how much and how long?

Re: Looking for advice on rebuilding.

Anonymous — Mon, 16 Jul 2018 21:19:58 GMT

@falcon7xx wrote:
I called US Bank they said it has to go through a manual review. I have never dealt with them before so hopefully it goes through. Bank of American denied me. I’m guessing it’s because I had some delinquent payments with them even though I paid that off in full a few months ago. I am going to try the open sky now. What is the best strategy with the installment loan. Open a CD and then take a loan out against it but for how much and how long?

The length and amount are really up to you. I recommend Self Lender---they approve anyone and require no credit check.

Re: Looking for advice on rebuilding.

Anonymous — Mon, 16 Jul 2018 21:23:32 GMT

@falcon7xx wrote:
I called US Bank they said it has to go through a manual review. I have never dealt with them before so hopefully it goes through. Bank of American denied me. I’m guessing it’s because I had some delinquent payments with them even though I paid that off in full a few months ago. I am going to try the open sky now. What is the best strategy with the installment loan. Open a CD and then take a loan out against it but for how much and how long?

For a third secured card, try Green Dot Bank's Secured Visa. It requires no credit check, and you can fund your security deposit at any participating Green Dot retailer (e.g., Rite Aid, Walgreens) or by mailing it in. I have the card (see siggy below), and I have no complaints.

Re: Looking for advice on rebuilding.

falcon7xx — Mon, 16 Jul 2018 21:29:52 GMT

Is taking a installment loan going to help? With the 3 revolving secured cards and the motorcycle loan, is that both enough of a mix?

Re: Looking for advice on rebuilding.

Anonymous — Mon, 16 Jul 2018 21:34:16 GMT

@falcon7xx wrote:
Is taking a installment loan going to help? With the 3 revolving secured cards and the motorcycle loan, is that both enough of a mix?

I overlooked the motocycle loan. You do not need another installment. The motorcycle loan is the installment loan. All you need are credit cards.

Re: Looking for advice on rebuilding.

falcon7xx — Mon, 16 Jul 2018 21:39:23 GMT

Ok awesome! Thanks for the help! If US bank decides to decline me is there another card I should look at?

Also I know my plan of attack is to pay everything on time and only have one card showing a balance of around 5-10%

Re: Looking for advice on rebuilding.

Anonymous — Mon, 16 Jul 2018 21:55:44 GMT

@falcon7xx wrote:
Ok awesome! Thanks for the help! If US bank decides to decline me is there another card I should look at?

Also I know my plan of attack is to pay everything on time and only have one card showing a balance of around 5-10%

The Merrick Bank Secured Visa (they do check your credit),the First Progress Mastercard (no credit check), or the Citibank Secured Mastercard. (they do check your credit; you may have to call in).