topic Need help rebuilding in Rebuilding Your Credit

Need help rebuilding

Rf32222 — Mon, 15 Oct 2018 14:10:23 GMT

My current fico 8 scores are eq 635 ,tu 630, and ex 631. When I started getting serious about rebuilding 6 months ago they were EQ 545, tu537, and ex 542. All of these scores are from experian and my fico. I have 4 baddies on my reports .
Portfolio Recovery = 473 collection (cap 1)
First premier = 571 charge off.
Commenity = 450 (settled for less)
Carmax = multiple 30 and 60 day lates paid
Off now.
My current situation is much better and I am in the process of paying Portfolio in full . I have not contacted first premier but it is due to fall off in 11 to 12 months. I am still going to pay it in full after I finish portfolio. I currently have had no lates for 4 months. And my uti is at 1 %. I have following credit.
Cap 1 Quicksilver = 601limit
Cap 1 Quicksilver1= 400 limit
Discover secured = 1000 limit
Citi secured = 500 limit
Credit One = 450 limit
Fingerhut = 200 limit
First Premier = 300 limit
I also have a 1 year self lender for 550.
I use the first 3 cards for everything , but pay all off weekly except 1 which I leave 10 t0 20 on then pay off on due date. I also have a car loan which is current. I'm going to add more money to Discover and close First Premier .I was able to open a account at NFCU because of my Dad's Navy service and after I clean up credit some more I hope to build a good relationship with them. The Quicksilver was a product change from a secured Platinum that unsecured at 11 months.would appreciate any advice on rebuilding. I made all the mistakes,some my fault and some not ( tucking accident , out of work for 1 year) but I'd love to get back to the middle 700'S Where I was before. Please give me any insight that may help and so sorry post is so long. Thanks everyone.

Re: Need help rebuilding

Anonymous — Mon, 15 Oct 2018 14:16:10 GMT

Looks to me like you’re doing everything right. Just keep doing what you’re doing and planning and let time and history work.

Re: Need help rebuilding

Rf32222 — Mon, 15 Oct 2018 14:19:35 GMT

Thanks. I realize it's going to take time and patince.

Re: Need help rebuilding

Anonymous — Mon, 15 Oct 2018 14:24:40 GMT

Exactly. You’re doing all the proper things for Account mix and balance management. Now just let it work for you.

Re: Need help rebuilding

Medic981 — Mon, 15 Oct 2018 15:36:47 GMT

@Rf32222, Welcome to the myFICO forums!

If I were you, I would close the Credit One and First Premier. They are sub-prime cards with annual fees and high interest rates. With Cap1, Disco and Citi in your credit portfolio, you do not need sub-prime cards anymore. JMHO

Ultimately, what a person needs to improve their FICO scores and build credit are three open credit cards (secured or unsecured) in good standing and one open installment loan in good standing such as a car, home, student, personal, share secured, or credit building loan. This combination is what the myFICO score theorists here have determined is what you need for optimal credit building and FICO score. You can have more CCs and more installment loans, however, this will not increase your FICO scores.

Next, (this is only important if you are attempting to purchase a large ticket item like a home or car) is paying in full all of the credit card balances each month, before the posting date, except one. This is called the All Zero Except One (AZEO) method. The one credit card you allow to post a balance needs to be less than 8.9% of the credit limit of the card. So using one card each month to buy lunch, letting it report and then paying in full will maximize FICO scoring. Keeping your utilization of your cards below 28.9% both individually and collectively will prevent you from incurring a FICO scoring penalty.

An installment loan will have its greatest impact on your FICO score when the amount owed is at 8.9% or less of the original amount owed which is usually in the final months before the loan is paid in full. If you don't have an installment loan you can check into SelfLender or a Share Secured Loan at a Credit Union.

Keep in mind, building credit is a marathon, not a sprint. It involves demonstrating to a potential creditor that a person can handle credit responsibly. If you have open, active accounts that are being paid on time and pay all of your bills on time all the time, apply for credit only when you actually need it and use credit cards sparingly maintaining low credit utilization, then you’re going to earn and maintain great credit scores. It would be impossible for you not to do so. This is the fastest way to build good, solid credit.

Good luck and best wishes in your credit rebuild journey.

Re: Need help rebuilding

Rf32222 — Mon, 15 Oct 2018 15:52:32 GMT

I am closing First Premier. Credit one is my oldest card by 2 months would that hurt me.

Re: Need help rebuilding

Medic981 — Mon, 15 Oct 2018 15:56:38 GMT

@Rf32222 wrote:
I am closing First Premier. Credit one is my oldest card by 2 months would that hurt me.

No. Credit One will continue to report as a positive tradeline for ten years after you close it and count towards your AAoA for that time.

Re: Need help rebuilding

Rf32222 — Mon, 15 Oct 2018 16:01:25 GMT

Thanks, I'll do exactly that then. I can't stand either one of them I'll just add to my Discover to offset limits loss.

Re: Need help rebuilding

Medic981 — Mon, 15 Oct 2018 16:12:52 GMT

@Rf32222 wrote:
Thanks, I'll do exactly that then. I can't stand either one of them I'll just add to my Discover to offset limits loss.

Excellent plan! I started with a secured Discover it at $200 because I wanted a Disco card and they kept denying me. Three months later they graduated me to an unsecured card with a SL of $2000. Six months later after several failed CLI attempts, Disco out of the blue gave me a CLI to $3000. Disco is a great CCC and will treat you well if you are responsible and pay Disco on time.

Re: Need help rebuilding

Rf32222 — Mon, 15 Oct 2018 16:19:10 GMT

That's awesome. I have heard they are a great FCC to grow with.

Re: Need help rebuilding

Rf32222 — Mon, 15 Oct 2018 16:20:46 GMT

I meant ccc