topic Looking how to properly repair my credit. in Rebuilding Your Credit

Looking how to properly repair my credit.

kwehnke — Sat, 02 Feb 2019 17:50:43 GMT

My credit has already been through quite a lot starting off I'm 19 and my credit score is 530. Which from what I had it at Christmas of 2017 it was a 350. I currently have a car loan for 14k which I've never missed a payment on in 8 months. I have 2 student loans that total around 2.2k which I also have never missed a payment on. Then I have 1 CC that I opened around 4 months ago that has a 200 dollar CL that's secured which currently is maxed out. I originally got the card to put 2 subscriptions on and pay in full every month but I went the wrong direction and used it for other things. I already plan to pay this card off and keep my balance around 9% and also give my CL a bump to 500 dollars just so I have more room to keep the utilization down. This is where we get more into the mess of my report... I have 38 credit inquiries that I got when I just turned 18 bc I couldn't find a CC. I have a collection with Portfolio Recovery for 485 from SYNC bank and another collection from SW Credit systems L.P. for 336 from T-Mobile. I have a Fingerhut account that is 643 and was sold to another lender. I have a Verizon account that was for 1,704 dollars because they gave me a CL to buy electronics cases etc which state it was sent for collection. There's a GAP card but that's the PRA collection. Then I have Kohl's that is a CO for 780. Then a First Premier bank card that was CO for 378. I have a Discover Sec card with a CO of 229. I have a Credit one card that was CO and sold to a lender and that balance is 855. Finally, I have a Cap One card CO for 614. I must say I lost a job for 2 months didn't have any money after that and I was making sure I could still survive while those went on the back burner. I live with my SO now I have a nice job my life is now back on track and I want to fix this and start safely using credit. I know the mistakes I have made and I know the severity of them. I need someone to help me fix this mess.

Re: Looking how to properly repair my credit.

Anonymous — Sat, 02 Feb 2019 18:12:01 GMT

You dug yourself a big hole right out of the starting gate, but the good thing is you’re still very young & can turn this around and have a long life of good credit. Please send me a PM with your email address. I’ll send you my budget template, which I’d like you to fill in your net income, living expenses, and what your min monthly payments are. Get it back to me & i’ll try and put a plan together for you to start paying off your debt. GL!

Re: Looking how to properly repair my credit.

Anonymous — Sat, 02 Feb 2019 19:39:20 GMT

This is what I see:

Current credit score - 530

Car Loan - 14k

Student loans - 2.2k

Secured CC - 200/500?

Collections total - 6,024

Portfolio - 485

SW Credit (T-mobile) - 336

Fingerhut - 643

Verizon - 1704

Kohls - 780

First Prem - 378

Discover - 229

Credit One - 855

Cap One - 614

You need to stay current with your open accounts and start reaching out to the collection accounts. Snowball is probably best, pay off the lowest balance then put the extra to the next lowest until it is paid off. Rinse and repeat until all collections are paid off. Some may do a pay for delete, but you will need to work with them all individually and get it figured out. It will take time, but will get better.

Re: Looking how to properly repair my credit.

DIYcredit — Sun, 03 Feb 2019 04:49:15 GMT

You should follow the great advice from this two contributors.As far as rebuilding use your secured card,auto loan and student loans to build a history of monthly on time payments.With the advice given try to pay down the secured card asap.Stay away from any more future derogatory information.As the derogatories age your Fico score will improve as positive information is added.As your score improves you will want to graduate up to a unsecured cc like a capital one.In the long run you will want three cc's,but you have alot of time.When you get your first cc keep it open make that your oldest cc account.Don't apply anything yet only as needed.Your score is very low so right now, so you probability won't get any cc's anyway.In the long run these strategies combined will improve your Fico score.The keys are patience and persistence.GOOD LUCK...

Re: Looking how to properly repair my credit.

Brooklyn2018 — Sun, 03 Feb 2019 05:41:56 GMT

+++1 @contributors

@OP

IMHO, I wouldn't add any more $$$ to the card you have now. If you're already maxed out...I can't imagine the temptation you might have to add to an even higher maxed out card. Instead, pay it down and ONLY use it to buy something small and JUST PAY IT OFF. At this juncture, you shouldn't be concerned about UTL%/AZEO unless/until you have several cards to support the technique(when needed) and your temptations are absolutely under control. =or else your wasting your time, in short...JMHO, of course.

Your main focus(as stated upthread) is to stay current with your existing open accounts=Show your current lenders and future potential lenders you can pay your bills ON TIME!! =handling the credit you have now(which seems you're doing great with)

...DO NOT app for anything until your HP's have aged AND during which time, taking care of your baddies. NO NEED to go deeper into debt until you've cleaned your profile up, show, IMHO, another good 6-12 months of on-time payments, and definitely try to start saving towards and emergency fund $20 a week or whatever you can afford. It will feel good=just don't touch it!

Things may seem overwhelming at first but, once you start tackling things, one-by-one, it becomes easier. I started with 15 collections...and now I'm down to 2. Thanks to the Fine Folks here on this Forum!!=FACT!!!

Best of Luck, OP!!

...and Welcome to myFICO Forums!!!