topic Re: Credit Re-build OVERKILL!!! HELP!!! in Rebuilding Your Credit

Credit Re-build OVERKILL!!! HELP!!!

Anonymous — Tue, 14 Apr 2020 13:11:38 GMT

updated: 04-14-2020 with collections listed.

Hello Community, Newbie here...

About two months ago I decided to get serious about my credit. My credit rebuild apporach is a little different, however, the end result will be the same. This thread will focus on my open accounts. I'll do a part two thread listing all collections. So, let me roll up my sleeves and lay it all out on the table. Any advise would help...

NOTE: I'm in the garden for TWO WHOLE YEARS!

Release Date: 04/15/2022

Don't beat me up. I know I did the most on secured cards. Initially, I jump out there only wanting my three minimum credit cards. Got them, however, they all came with annual fees. Then, I said..... I don't want annual fees. So..... You guessed it. I went app crazy knowing already that I barley qualify for anything. Citi and Capital One had been denying me for years for their secured cards.

On 03/09/2020, to my suprise I was approved for the Citi Secured Card. I rushed Citi my money so fast! Then...... greed set in. Let me see what Captial One is talking about...... APPROVED! Okay Okay, okay, I'll stop..... for now.

Okay, I wont keep you waiting..... but before my confession. A little voice in my head said that, 3 NO ANNUAL FEE cards would be better to rebuild. I couldn't help myself and I pulled the trigger. APPROVED Georgias Own secured card.

Now, I'm officially in the garden.

My goal is to close (OpenSky, First Premier when annual fees are due).
See what Citi will do in regards to graduation near the end of the year.
Continue to paydown student loans (utilization is high)
Work on collections
PAY BILLS ON-TIME
AZEO

Open Revolving Accounts:

OpenSky Secured ($200.00) Opened 10/2017 Last missed payment 8-9 months ago.

Applied Bank Secured ($200.00) Opened 09/2019 Never Late

First Premier Secured Card ($200.00) 12/2019 Never Late

Citibank Secured Card ($200.00) 04/2020 Never Late

Capital One Secured Card ($200.00) 04/2020 Never Late and won't be need my credit limit increase in 5 month lol

Georgias Own Secured ($200.00) 04/2020 (Haven't completed application yet or received card. Received pre-approval email)

Open Installment Accounts

Student Loan #1

Student Loan #2

Student Loan #3

Collections (Listed from Newest to Oldest)

COLLECTION AGENGY	BALANCE	DATE OPENED
ENCHANCED RECOVERY	$ 158.00	2019-07-29
JEFFERSON CAPITAL SYSTEM	$ 347.00	2019-06-03
CREDENCE RESOURCE MANAGEMENT	$ 311.00	2019-02-18
MEDICAL DATA SYSTEMS INC	$ 1,970.00	2018-08-29
PENN CREDIT CORP	$ 273.00	2018-07-11
ENCHANCED RECOVERY	$ 481.00	2018-06-30
I C STSTEM	$ 183.00	2018-06-26
I C STSTEM	$ 126.00	2018-01-22
I C STSTEM	$ 152.00	2018-01-11
LVNV FUNDING LLC	$ 1,426.00	2017-06-18
CREDIT MANAGENT LP	$ 204.00	2016-10-27
PORTFOLIO RECOVERY	$ 735.00	2016-05-19
NATIONAL CREDIT SYSTEMS	$ 1,511.00	2014-12-13
BANKRUPCY		2013-08-19
CLOSED CREDIT CARD ACCOUNTS W/ BALANCE
NAVY FEDERAL	$ 628.00
ONE UNITED BANK	$ 228.00
FIRST PROGRESS CARD	$ 158.00
GREEN DOT BANK	$ 73.00

Inquiries

TransUnion 10

Equifax 15 Not sure if I took a hit for Georgia's Own yet. If so, 16.

Experian 7

Credit Scores:

TransUnion 513 First Premier FICO, 494 Credit Karma FAKO

Equifax 502 Credit Karma FAKO

Experian 513 FICO

Re: Credit Re-build OVERKILL!!! HELP!!!

Jannelo — Tue, 14 Apr 2020 01:35:59 GMT

Well, I like your spirit! That's a shame about your OpenSky late on your active CC. But we all have to start somewhere. I was in the "poor" FICO score category. So I feel your pain, and it is very humbling to see that and really face it. So kudos to you. I will add, make sure you work on financial security also. Put yourself on a budget and save some money too, if you can, as you are working on your collections, etc. Maybe you are already doing that. If so, great!

Re: Credit Re-build OVERKILL!!! HELP!!!

Anonymous — Tue, 14 Apr 2020 02:47:03 GMT

The late payment and the inquiries shouldn't affect you in the later parts of your rebuild.

Personally, I wouldn't use the revolvers, or maybe just 1, so I could put my energy towards the collections and student loans. I doubt any card would be closed for inactivity since they're all secured. I'd probably also close the OpenSky and First Premier, since you have the other ones which are considerably better; only need 3 revolvers minimum for max FICO pts.

If there's any way to consolidate the loans that could make it more streamlined. Aside from that, just aim to get rid of the collections as those'll hold you down the most. Lots of info about how to tackle them without paying a third-party company to do so here.

Good luck

Re: Credit Re-build OVERKILL!!! HELP!!!

Anonymous — Tue, 14 Apr 2020 03:05:16 GMT

Good for you in taking the steps to improve your credit. Don't forget to set up your accounts for auto pay.

Re: Credit Re-build OVERKILL!!! HELP!!!

Anonymous — Tue, 14 Apr 2020 05:39:19 GMT

One thing to keep in mind if you close your OpenSky card is that it's going to hurt your AAoA being that it's your oldest card. But since all of your accounts are new it won't be a huge deal after the others age a bit. Sounds like gardening these new ones is your best bet for now, and you're on the right track. Can't wait to take a look at the collection post!

Re: Credit Re-build OVERKILL!!! HELP!!!

Anonymous — Tue, 14 Apr 2020 06:15:42 GMT

@Anonymous wrote:
One thing to keep in mind if you close your OpenSky card is that it's going to hurt your AAoA being that it's your oldest card. But since all of your accounts are new it won't be a huge deal after the others age a bit. Sounds like gardening these new ones is your best bet for now, and you're on the right track. Can't wait to take a look at the collection post!

Actually it won't - FICO aging factors aren't affected by closing accounts, as they remain on your reports for up to ten years after closure and continue to contribute to AAoA, AoOA. In Vantage scoring, closed accounts are removed and your age factors can drop but nobody really cares because VS scores are so rarely relevant to lending.

Re: Credit Re-build OVERKILL!!! HELP!!!

Anonymous — Tue, 14 Apr 2020 06:18:36 GMT

Oh that's great to know! Well, in that case OP, no worries there!

Re: Credit Re-build OVERKILL!!! HELP!!!

Anonymous — Tue, 14 Apr 2020 06:53:50 GMT

Yup the idea is that by the time they drop off, you have other aged accounts well old enough to take their place in maintaining your age of account history. Of course there is no guarantee that they stay the full ten years - some have even reported accounts dropping off in a matter of months - but the usual result is that those accounts stay on for a long time so you don't end up penalized for closing an account that no longer fits your plan.

Re: Credit Re-build OVERKILL!!! HELP!!!

FireMedic1 — Tue, 14 Apr 2020 07:14:13 GMT

@Anonymous wrote:
Hello Community, Newbie here...

About two months ago I decided to get serious about my credit. My credit rebuild apporach is a little different, however, the end result will be the same. This thread will focus on my open accounts. I'll do a part two thread listing all collections. So, let me roll up my sleeves and lay it all out on the table. Any advise would help...

NOTE: I'm in the garden for TWO WHOLE YEARS!
Release Date: 04/15/2022

Don't beat me up. I know I did the most on secured cards. Initially, I jump out there only wanting my three minimum credit cards. Got them, however, they all came with annual fees. Then, I said..... I don't want annual fees. So..... You guessed it. I went app crazy knowing already that I barley qualify for anything. Citi and Capital One had been denying me for years for their secured cards.

On 03/09/2020, to my suprise I was approved for the Citi Secured Card. I rushed Citi my money so fast! Then...... greed set in. Let me see what Captial One is talking about...... APPROVED! Okay Okay, okay, I'll stop..... for now.

Okay, I wont keep you waiting..... but before my confession. A little voice in my head said that, 3 NO ANNUAL FEE cards would be better to rebuild. I couldn't help myself and I pulled the trigger. APPROVED Georgias Own secured card.

Now, I'm officially in the garden.

My goal is to close (OpenSky, First Premier when annual fees are due).
See what Citi will do in regards to graduation near the end of the year.
Continue to paydown student loans (utilization is high)
Work on collections
PAY BILLS ON-TIME
AZEO

Open Revolving Accounts:
OpenSky Secured ($200.00) Opened 10/2017 Last missed payment 8-9 months ago.
Applied Bank Secured ($200.00) Opened 09/2019 Never Late
First Premier Secured Card ($200.00) 12/2019 Never Late
Citibank Secured Card ($200.00) 04/2020 Never Late
Capital One Secured Card ($200.00) 04/2020 Never Late and won't be need my credit limit increase in 5 month lol
Georgias Own Secured ($200.00) 04/2020 (Haven't completed application yet or received card. Received pre-approval email)

Open Installment Accounts
Student Loan #1
Student Loan #2
Student Loan #3

Collections
14 Collectively accross all three credit bureaus

Inquiries
TransUnion 10
Equifax 15 Not sure if I took a hit for Georgia's Own yet. If so, 16.
Experian 7

Credit Scores:
TransUnion 513 First Premier FICO, 494 Credit Karma FAKO
Equifax 502 Credit Karma FAKO
Experian 513 FICO

You can list them here. You may have some that will PFD. Remember 1 baddie outweighs all the good. Lets see what we can work with. Fire Away!

Re: Credit Re-build OVERKILL!!! HELP!!!

Anonymous — Tue, 14 Apr 2020 13:13:46 GMT

@FireMedic1 wrote:
@Anonymous wrote:
Hello Community, Newbie here...

About two months ago I decided to get serious about my credit. My credit rebuild apporach is a little different, however, the end result will be the same. This thread will focus on my open accounts. I'll do a part two thread listing all collections. So, let me roll up my sleeves and lay it all out on the table. Any advise would help...

NOTE: I'm in the garden for TWO WHOLE YEARS!
Release Date: 04/15/2022

Don't beat me up. I know I did the most on secured cards. Initially, I jump out there only wanting my three minimum credit cards. Got them, however, they all came with annual fees. Then, I said..... I don't want annual fees. So..... You guessed it. I went app crazy knowing already that I barley qualify for anything. Citi and Capital One had been denying me for years for their secured cards.

On 03/09/2020, to my suprise I was approved for the Citi Secured Card. I rushed Citi my money so fast! Then...... greed set in. Let me see what Captial One is talking about...... APPROVED! Okay Okay, okay, I'll stop..... for now.

Okay, I wont keep you waiting..... but before my confession. A little voice in my head said that, 3 NO ANNUAL FEE cards would be better to rebuild. I couldn't help myself and I pulled the trigger. APPROVED Georgias Own secured card.

Now, I'm officially in the garden.

My goal is to close (OpenSky, First Premier when annual fees are due).
See what Citi will do in regards to graduation near the end of the year.
Continue to paydown student loans (utilization is high)
Work on collections
PAY BILLS ON-TIME
AZEO

Open Revolving Accounts:
OpenSky Secured ($200.00) Opened 10/2017 Last missed payment 8-9 months ago.
Applied Bank Secured ($200.00) Opened 09/2019 Never Late
First Premier Secured Card ($200.00) 12/2019 Never Late
Citibank Secured Card ($200.00) 04/2020 Never Late
Capital One Secured Card ($200.00) 04/2020 Never Late and won't be need my credit limit increase in 5 month lol
Georgias Own Secured ($200.00) 04/2020 (Haven't completed application yet or received card. Received pre-approval email)

Open Installment Accounts
Student Loan #1
Student Loan #2
Student Loan #3

Collections
14 Collectively accross all three credit bureaus

Inquiries
TransUnion 10
Equifax 15 Not sure if I took a hit for Georgia's Own yet. If so, 16.
Experian 7

Credit Scores:
TransUnion 513 First Premier FICO, 494 Credit Karma FAKO
Equifax 502 Credit Karma FAKO
Experian 513 FICO

You can list them here. You may have some that will PFD. Remember 1 baddie outweighs all the good. Lets see what we can work with. Fire Away!

Collection accounts added.

Re: Credit Re-build OVERKILL!!! HELP!!!

Anonymous — Tue, 14 Apr 2020 17:45:40 GMT

Collection accounts added. Newest to oldest.

Re: Credit Re-build OVERKILL!!! HELP!!!

Anonymous — Tue, 14 Apr 2020 21:49:42 GMT

@Anonymous wrote:
Collections (Listed from Newest to Oldest)
COLLECTION AGENGY BALANCE DATE OPENED
ENCHANCED RECOVERY $     158.00 2019-07-29
JEFFERSON CAPITAL SYSTEM $     347.00 2019-06-03
CREDENCE RESOURCE MANAGEMENT $     311.00 2019-02-18
MEDICAL DATA SYSTEMS INC $ 1,970.00 2018-08-29
PENN CREDIT CORP $     273.00 2018-07-11
ENCHANCED RECOVERY $     481.00 2018-06-30
I C STSTEM $     183.00 2018-06-26
I C STSTEM $     126.00 2018-01-22
I C STSTEM $     152.00 2018-01-11
LVNV FUNDING LLC $ 1,426.00 2017-06-18
CREDIT MANAGENT LP $     204.00 2016-10-27
PORTFOLIO RECOVERY $     735.00 2016-05-19
NATIONAL CREDIT SYSTEMS $ 1,511.00 2014-12-13
BANKRUPCY 2013-08-19
CLOSED CREDIT CARD ACCOUNTS W/ BALANCE
NAVY FEDERAL $     628.00
ONE UNITED BANK $     228.00
FIRST PROGRESS CARD $     158.00
GREEN DOT BANK $        73

First thing is to handle the closed accounts with balances. Those show as cards that are maxed over 100% and are hurting you actively. Get them paid off ASAP.

After that, you have collectors that will remove their reports in exchange for payment or settlement. Portfolio, LVNV (recently have been granting PFDs more often) and I believe Jefferson Capital. You can pay those and within a reporting cycle or so they'll vanish as if they never existed. They're the low-hanging fruit, so to speak.

You can search the forum on the other ones to see if they have granted deletions to anyone. There is a thread here on the forum compiling a list of those who do, based on member experience. It should turn up in a search. It's possible one or more of the others will delete. Regardless, you should approach each one with a PFD in mind - a paid collection helps, but not much. Deleting them is where you can make better gains. Any gains made with PFDs will be incremental though until your last one is gone. Then the score shoots up. Goals in descending order are:

PFD

Paid but not deleted

Unpaid and not deleted

You don't have any that are approaching falloff date but check the statute of limitations for your state. Any debts beyond the SOL cannot be used to sue you, so you have more leverage in asking for a PFD or a settled balance. Also, if you're approaching the SOL some agencies may decide to take legal action before the opportunity is lost, so be aware of that. Good luck!

Re: Credit Re-build OVERKILL!!! HELP!!!

Anonymous — Tue, 14 Apr 2020 22:08:05 GMT

Portfolio, enhanced, and LVNV will all do PFD (and settle in full for less than what is owed). The others I'm not familiar with but hopefully someone else here can help.

If you're not already utilizing the personal finance management department through Navy Federal, do it now (unless your paying that balance in full soon). Go to navy federal.org/PFI to submit an application. You may be eligible to have the interest significantly reduced and payments lowered. I would take advantage of that if possible and get back in good graces with NFCU.