topic Re: Newbie needs help pls! How to go forward in Rebuilding Your Credit

Newbie needs help pls! How to go forward

Anonymous — Mon, 23 Sep 2019 16:46:28 GMT

Hello! I have so many of you to thank, I discovered you and have been lurking here for about two months, I would deeply appreciate any and all advice as to how to go forward.

After many years of avoiding credit cards and simply paying cash for everything, my goals are to gain as high a personal credit score as possible; I also want to open a small business next year. I am committed to not going into debt or ruining my credit ever again.

I started with attempting a Cap1 Secure card back in May, was turned down, waited a month, and they gave me $200 on a Secure. I got my credit scores back then:
TU - 570
EQ - 538
I couldn’t get Experian score without writing a letter (due to some issues with validating my identity), so I still don’t have that.

I discovered that I had a medical collection that never should have been on there (I paid the doctor months ago), so it was taken off. Due to that, and getting the Cap1 card and using it correctly, my score since June:
TU - 658
EQ - 652
I have been using the Cap 1 card, sometimes paying it off once or twice mid month, so I have a very low Util rate when it bills, keeping it at about 8%.

I also found out they have a BofA closed Secure card from 2015 that was charged off for $152 (this was the only item on my reports from last 10 years).

Last week I decided to try to get another card from Cap1, hoping to improve my score and get more credit, and from everything I read here I thought I would have to do Cap1 Plat first, but I went ahead directly to Cap1 QS and they approved me for $300.

Questions:

I just realized last night that my TU report says that altho the BofA card was “charged off”, it still says “$152 outstanding”! Is there anyway to get them to have some GW and remove it if I pay them $152? Does anyone have a contact address/email, or can you tell me how to do this?

2) I know I’m at the bottom of the barrel to start, but these credit limits are a joke to try and use at $200 and $300! Is it worth a call to Cap1 to CLI the $300 limit before I activate the card?

3) How do you suggest I go forward? I was wanting to wait about 2 months, then try to get a Nordie (it would be useful), I’ve read a lot on here about how to build with them, it would be a long game towards their Visa for me. Then I thought in about 3 or 4 months I could try for a better bank card? In the future I am interested in Amex BCE and SW RR Visa. Also, I was going to open a Savings account at Chase next month to start building credit with them, then figured in about 10-12 months I would try to get a Chase SW RR and/or a Chase Ink Business?

4) Are those “credit simulators” thru creditkarma and/or Cap1 CreditWise accurate? Today I saw that with my current score, a new $1000 CL on a new card would decrease me to 648 score, but that a lower credit limit, (like the $300 Cap1QS I am getting) will actually decrease me all the way to 626 credit score!! Could that be correct? I thought that getting a few cards was supposed to INCREASE my score? My plan is to keep all at 0 balance at billing time, except one card that I will keep at 8%.

5) Is it bad through the next 6 months to add Nordstrom, and possibly Macy’s and VS? I can probably get VS thru shopping cart trick, Macy’s I would try in store. I would use these and pay off before cycle. I would love feedback to know if these 3 cards would help or hurt my credit.

You guys are awesome, thanks for your help!

Re: Newbie needs help pls! How to go forward

Anonymous — Mon, 23 Sep 2019 17:47:04 GMT

First off, it sounds to me like your scores are from CK. If so, disregard them. They’re not FICO scores. You need your FICOs before you can gauge approval odds and standings. Www.creditchecktotal.com will give you a seven day trial for $1. Get your scores and cancel.

Ignore simulators - they’re inaccurate. Period.

Don’t app for anything else. My bet is that your FICOs are lower than the VantageScore 3.0 scores you have and that’s part of why the limits on your cards are as low as they are.

Get your scores and come back with them and we can guide you better.

Re: Newbie needs help pls! How to go forward

SouthJamaica — Mon, 23 Sep 2019 17:50:43 GMT

@Anonymous wrote:
Hello! I have so many of you to thank, I discovered you and have been lurking here for about two months, I would deeply appreciate any and all advice as to how to go forward.
After many years of avoiding credit cards and simply paying cash for everything, my goals are to gain as high a personal credit score as possible; I also want to open a small business next year. I am committed to not going into debt or ruining my credit ever again.

I started with attempting a Cap1 Secure card back in May, was turned down, waited a month, and they gave me $200 on a Secure. I got my credit scores back then:
TU - 570
EQ - 538
I couldn’t get Experian score without writing a letter (due to some issues with validating my identity), so I still don’t have that.
I discovered that I had a medical collection that never should have been on there (I paid the doctor months ago), so it was taken off. Due to that, and getting the Cap1 card and using it correctly, my score since June:
TU - 658
EQ - 652
I have been using the Cap 1 card, sometimes paying it off once or twice mid month, so I have a very low Util rate when it bills, keeping it at about 8%.
I also found out they have a BofA closed Secure card from 2015 that was charged off for $152 (this was the only item on my reports from last 10 years).
Last week I decided to try to get another card from Cap1, hoping to improve my score and get more credit, and from everything I read here I thought I would have to do Cap1 Plat first, but I went ahead directly to Cap1 QS and they approved me for $300.
Questions:
I just realized last night that my TU report says that altho the BofA card was “charged off”, it still says “$152 outstanding”! Is there anyway to get them to have some GW and remove it if I pay them $152? Does anyone have a contact address/email, or can you tell me how to do this?

I don't have a special number but you should try to get them to delete it if you pay it. They probably won't agree but then you should pay it anyway.

2) I know I’m at the bottom of the barrel to start, but these credit limits are a joke to try and use at $200 and $300! Is it worth a call to Cap1 to CLI the $300 limit before I activate the card?

No it's not.

3) How do you suggest I go forward?

Don't make any applications for a while. Each month let one of the two cards report a low balance while the other reports a zero balance.

I was wanting to wait about 2 months, then try to get a Nordie (it would be useful), I’ve read a lot on here about how to build with them, it would be a long game towards their Visa for me. Then I thought in about 3 or 4 months I could try for a better bank card? In the future I am interested in Amex BCE and SW RR Visa. Also, I was going to open a Savings account at Chase next month to start building credit with them, then figured in about 10-12 months I would try to get a Chase SW RR and/or a Chase Ink Business?

I think you should hold off a while and try to get rid of more negatives.

4) Are those “credit simulators” thru creditkarma and/or Cap1 CreditWise accurate?

They are garbage. And as @Anonymous correctly observed, the Vantage scores are likewise -- for your purposes -- garbage.

Today I saw that with my current score, a new $1000 CL on a new card would decrease me to 648 score, but that a lower credit limit, (like the $300 Cap1QS I am getting) will actually decrease me all the way to 626 credit score!! Could that be correct? I thought that getting a few cards was supposed to INCREASE my score? My plan is to keep all at 0 balance at billing time, except one card that I will keep at 8%.
5) Is it bad through the next 6 months to add Nordstrom, and possibly Macy’s and VS? I can probably get VS thru shopping cart trick, Macy’s I would try in store. I would use these and pay off before cycle. I would love feedback to know if these 3 cards would help or hurt my credit.

Whether it's the next few months or the next few years, I would advise you to avoid store cards. Period.
You guys are awesome, thanks for your help!

Re: Newbie needs help pls! How to go forward

randomguy1 — Mon, 23 Sep 2019 18:00:22 GMT

For the Capital 1, it is possible you can add more of a deposit to the secured card and get an increase.

Reference:

https://www.capitalone.com/credit-cards/LP/secured-mastercard-gen-faq/

Can I make an additional deposit and increase my initial credit line?

Yes. If your application is approved and you provide the minimum required security deposit prior to the expiration date, your account will be opened, and you will receive the minimum initial credit line of $200. To increase your initial credit line, simply deposit more than your minimum required security deposit within 35 days of being approved and before you activate your card. You can raise your initial credit line by the amount of your additional deposit, up to $1,000.

I would pass on store cards, not a fan of them. If you were to apply for another card, I would see if I can prequalify for a Discover. The Discover IT is probably out of your range right now, perhaps they will qualify you for the secured.

https://www.discovercard.com/application/website/prequal

https://www.discover.com/credit-cards/secured/

Re: Newbie needs help pls! How to go forward

CreditInspired — Mon, 23 Sep 2019 18:19:21 GMT

@Anonymous wrote:
Hello! I have so many of you to thank, I discovered you and have been lurking here for about two months, I would deeply appreciate any and all advice as to how to go forward.
After many years of avoiding credit cards and simply paying cash for everything, my goals are to gain as high a personal credit score as possible; I also want to open a small business next year. I am committed to not going into debt or ruining my credit ever again.

I started with attempting a Cap1 Secure card back in May, was turned down, waited a month, and they gave me $200 on a Secure. I got my credit scores back then:
TU - 570
EQ - 538
I couldn’t get Experian score without writing a letter (due to some issues with validating my identity), so I still don’t have that.
I discovered that I had a medical collection that never should have been on there (I paid the doctor months ago), so it was taken off. Due to that, and getting the Cap1 card and using it correctly, my score since June:
TU - 658
EQ - 652
I have been using the Cap 1 card, sometimes paying it off once or twice mid month, so I have a very low Util rate when it bills, keeping it at about 8%.
I also found out they have a BofA closed Secure card from 2015 that was charged off for $152 (this was the only item on my reports from last 10 years).
Last week I decided to try to get another card from Cap1, hoping to improve my score and get more credit, and from everything I read here I thought I would have to do Cap1 Plat first, but I went ahead directly to Cap1 QS and they approved me for $300.
Questions:
I just realized last night that my TU report says that altho the BofA card was “charged off”, it still says “$152 outstanding”! Is there anyway to get them to have some GW and remove it if I pay them $152? Does anyone have a contact address/email, or can you tell me how to do this?
2) I know I’m at the bottom of the barrel to start, but these credit limits are a joke to try and use at $200 and $300! Is it worth a call to Cap1 to CLI the $300 limit before I activate the card?
3) How do you suggest I go forward? I was wanting to wait about 2 months, then try to get a Nordie (it would be useful), I’ve read a lot on here about how to build with them, it would be a long game towards their Visa for me. Then I thought in about 3 or 4 months I could try for a better bank card? In the future I am interested in Amex BCE and SW RR Visa. Also, I was going to open a Savings account at Chase next month to start building credit with them, then figured in about 10-12 months I would try to get a Chase SW RR and/or a Chase Ink Business?
4) Are those “credit simulators” thru creditkarma and/or Cap1 CreditWise accurate? Today I saw that with my current score, a new $1000 CL on a new card would decrease me to 648 score, but that a lower credit limit, (like the $300 Cap1QS I am getting) will actually decrease me all the way to 626 credit score!! Could that be correct? I thought that getting a few cards was supposed to INCREASE my score? My plan is to keep all at 0 balance at billing time, except one card that I will keep at 8%.
5) Is it bad through the next 6 months to add Nordstrom, and possibly Macy’s and VS? I can probably get VS thru shopping cart trick, Macy’s I would try in store. I would use these and pay off before cycle. I would love feedback to know if these 3 cards would help or hurt my credit.
You guys are awesome, thanks for your help!

Hi and welcome to myFICO

First you need your FICO scores.

Second, check Discover and AmX prequalification page to see if you have any preapprovals.

Third, don't apply for any store cards, especially since you're thinking of starting a business. You want to have bank cards in your wallet.

And finally, clear up any negatives on your CRs.

GL2U

Re: Newbie needs help pls! How to go forward

Anonymous — Mon, 23 Sep 2019 18:23:11 GMT

Thanks, will do!

Re: Newbie needs help pls! How to go forward

Anonymous — Mon, 23 Sep 2019 18:24:46 GMT

Thank you!

Re: Newbie needs help pls! How to go forward

Anonymous — Tue, 24 Sep 2019 21:33:34 GMT

Hi, following up... and I appreciate more feedback!

I got my real scores.... WHOA ***shudder***

EQ - 601

TU - 612

EX - 593 (FICO 8, but there were multiple other FICO Bankccard scores, let me know if I should add those)

I had no idea Bank of America has been showing up all this time as a CLOSED CHARGEOFF, but it also says "Past Due Amt"! One of the reports said 47 past due because of this! It's only $152, which I can pay off right away, but how should I do this, can I try to get them to delete it, or does it matter? It does make my "oldest" look to be 5 yrs 9 mos, as opposed to my new recent Cap1 Secure from 3 mos ago. My new Cap1 QS is not showing yet as an open account, I just got that card yesterday.

1) How do I deal with this BofA situation? It is showing on all three FICO's.

2) What else should I do/don't do? Experian noted that if I pay everything on time the next 3 months my score should go from 593 to 633.

My inquiries showing: EQ - 1 TU - 1 EX - 3

This was from since May of this year, before I learned anything here at ficoforum!

BTW, hardly anything from my Cap1 card has been reported, just 2 months worth at this point, but I am paying before statement date and staying below 8% util.

3) I have military family, so I was planning to open a NFCU savings account this month, then next month do the $3001 Shared Secure Loan, (just learned about those this week on this forum) and also keep saving with them just to grow my credit with them, maybe in about 6 months get a credit card with them, even if I have to do Secured? Any comments on these?

I am willing to be patient! Thanks in advance!

Re: Newbie needs help pls! How to go forward

K-in-Boston — Tue, 24 Sep 2019 22:02:34 GMT

@Anonymous welcome to the forums. I've moved your thread over here to Rebuilding Your Credit so that it will get better better exposure to help you.

Re: Newbie needs help pls! How to go forward

Remedios — Tue, 24 Sep 2019 22:26:02 GMT

@Anonymous wrote:
Hello! I have so many of you to thank, I discovered you and have been lurking here for about two months, I would deeply appreciate any and all advice as to how to go forward.
After many years of avoiding credit cards and simply paying cash for everything, my goals are to gain as high a personal credit score as possible; I also want to open a small business next year. I am committed to not going into debt or ruining my credit ever again.

I started with attempting a Cap1 Secure card back in May, was turned down, waited a month, and they gave me $200 on a Secure. I got my credit scores back then:
TU - 570
EQ - 538
I couldn’t get Experian score without writing a letter (due to some issues with validating my identity), so I still don’t have that.
I discovered that I had a medical collection that never should have been on there (I paid the doctor months ago), so it was taken off. Due to that, and getting the Cap1 card and using it correctly, my score since June:
TU - 658
EQ - 652
I have been using the Cap 1 card, sometimes paying it off once or twice mid month, so I have a very low Util rate when it bills, keeping it at about 8%.
I also found out they have a BofA closed Secure card from 2015 that was charged off for $152 (this was the only item on my reports from last 10 years).
Last week I decided to try to get another card from Cap1, hoping to improve my score and get more credit, and from everything I read here I thought I would have to do Cap1 Plat first, but I went ahead directly to Cap1 QS and they approved me for $300.
Questions:
I just realized last night that my TU report says that altho the BofA card was “charged off”, it still says “$152 outstanding”! Is there anyway to get them to have some GW and remove it if I pay them $152? Does anyone have a contact address/email, or can you tell me how to do this?

Once the original creditor charges off a card, there is almost no chance to get the entire tradeline removed. BoA will not remove no matter how many letters you write or calls you make. Best you can do is pay it to $0.00, wait for the balance to update

2) I know I’m at the bottom of the barrel to start, but these credit limits are a joke to try and use at $200 and $300! Is it worth a call to Cap1 to CLI the $300 limit before I activate the card?

They are not a joke when you're starting out and/or rebuilding. It's what's available and it's a decent card to start your rebuild with. Guard it with your life and hope you never encounter likes of Credit One, First Premier etc...Cap One will not increase your limit at this time. Most likely you're enrolled in steps program and will get a CLI after 5 statements.

3) How do you suggest I go forward? I was wanting to wait about 2 months, then try to get a Nordie (it would be useful), I’ve read a lot on here about how to build with them, it would be a long game towards their Visa for me. Then I thought in about 3 or 4 months I could try for a better bank card? In the future I am interested in Amex BCE and SW RR Visa. Also, I was going to open a Savings account at Chase next month to start building credit with them, then figured in about 10-12 months I would try to get a Chase SW RR and/or a Chase Ink Business?

You have a recent charge off. Most of your plans will need to be put on hold. If you qualify for secured Discover, that would be one option. If not, look at some local credit unions, sometimes they will have decent rebuilder/starter cards. Also, US Bank and Citi have good secured cards that have potential to graduate given no further credit issues and scoring improvement. Same goes for Discover card

4) Are those “credit simulators” thru creditkarma and/or Cap1 CreditWise accurate? Today I saw that with my current score, a new $1000 CL on a new card would decrease me to 648 score, but that a lower credit limit, (like the $300 Cap1QS I am getting) will actually decrease me all the way to 626 credit score!! Could that be correct? I thought that getting a few cards was supposed to INCREASE my score? My plan is to keep all at 0 balance at billing time, except one card that I will keep at 8%.

Credit simulators are toys. They cannot predict what comes after 1. Credit limits play some role in Vantage scores, but Vantage scores are not really used in lending (with a few exceptions) so dont worry about it. Credit Karma is good for monitoring your reports and nothing else.
Also , keep in mind they get paid for peddling cards. Whether you get approved or denied makes no difference. Yours and their interest are not the same

5) Is it bad through the next 6 months to add Nordstrom, and possibly Macy’s and VS? I can probably get VS thru shopping cart trick, Macy’s I would try in store. I would use these and pay off before cycle. I would love feedback to know if these 3 cards would help or hurt my credit.
You guys are awesome, thanks for your help!

Dont weigh yourself down with store cards. Depending on how much you shop at the particular store, one or two may be a good idea at some point later. Dont shoot yourself in the foot by accumulating inquiries and denials. Nordy's card will require you to raise your scores up a bit. VS might be doable once you take care of that unresolved charge off. Macy's, probably same as Nordy's. Work on your scores first

First start working on that charge off. It's updating and keeping your scores really low. You cannot expect to see any significant improvement in your scores till CO is paid and updates stop. The recovery will be gradual and over time.

Re: Newbie needs help pls! How to go forward

CreditInspired — Tue, 24 Sep 2019 23:19:20 GMT

First WooHoo on being able to get in with NFCU. So new goal. Put all your focus on getting your next 3 cards with them vs other lenders even if you have to start with a secured NFCU card.

Second, open a regular savings account tomorrow. It’s only $5 to become a member.

Third, if it were me I would not do the SSL at this moment in times. I didn't have an installment loan until I purchased my home in 2018.

Definitely pay that $152 collection ASAP whether they delete or not. Stop the bleeding. But definitely ask. If they say no, just pay it.

If you get a secured NFCU, fund it nicely so you have enough to use comfortably and pay on time until it graduates.

And who knows, with NFCU, they just may approve an unsecured card. They are just totally different from other lenders. And, if they do approve, let us know and we’ll guide you from there.

GL2U

Re: Newbie needs help pls! How to go forward

Anonymous — Tue, 24 Sep 2019 23:54:18 GMT

Definitely hold off any action until you have an idea on what your strategy would be. You need to do now what will prepare you for what to do 3,6,12 months from now. So with that in mind, I wouldn’t app for anything at the moment.

- do you have any loans reporting? Vehicle loans, mortgages, student loans, etc?

- is the Bank of America the only negative you currently have? I saw improvements of almost 20 points when I paid off a $500 charge off. So definitely paid is better than unpaid.

Those secured cards will pave the way moving forward so I wouldn’t consider them a joke just yet.

Re: Newbie needs help pls! How to go forward

Anonymous — Wed, 25 Sep 2019 17:55:31 GMT

Thanks to everyone for all the great advice!

No, there's nothing else on my reports, just the old BofA I just discovered, and now my new Cap1 Secure card. It will be interesting to watch what happens next month or two, once the BofA shows paid and the addition of my Cap1 QS, and paying early with low util!

Why is it NOT a good idea to the NFCU Shared Secure Loan $3001 next month? I thought adding an installment loan would help me, since I don't have one currently, I've paid cash for cars and everything for years!

Re: Newbie needs help pls! How to go forward

CreditInspired — Wed, 25 Sep 2019 19:01:08 GMT

@Anonymous wrote:
Thanks to everyone for all the great advice!

No, there's nothing else on my reports, just the old BofA I just discovered, and now my new Cap1 Secure card. It will be interesting to watch what happens next month or two, once the BofA shows paid and the addition of my Cap1 QS, and paying early with low util!

Why is it NOT a good idea to the NFCU Shared Secure Loan $3001 next month? I thought adding an installment loan would help me, since I don't have one currently, I've paid cash for cars and everything for years!

I didn't say it wasn't a good idea. I said if it were me, I wouldn't get an SSL. I've never had an installment loan until I purchased a condo in 2018 and at that time my scores were 790+. So, I'm just saying it wasn't needed to boost scores.