topic Re: Rebuilding from 590 / 600 Credit Score in Rebuilding Your Credit

Rebuilding from 590 / 600 Credit Score

anik28 — Sat, 06 Jun 2020 23:22:59 GMT

Hello all,

I am new to MyFico and looking for credit advice. In my early 20's I was very uneducated about how credit worked. I got myself into a financial mess and have spent the last 6-7 years slowly crawling out of the hole. I have a few credit cards but they are all very low limits - some I've had for a couple of years but none of them will give me a CLI. I really need advice on how to move my score up and get credit lines with much higher limits. I am much more educated on how credit works now, but cannot seem to get my score to budge. Any advice is welcomed as improving my credit has been a painfully slow process.

Income:

75K / year. Single and rent an apartment.

Current FICOScore 8:

- Experian 586

- Equifax 551

- TransUnion 609

Open Accounts:

Student Loans - 10,000$ Balance. Paid on time.

Capital One Quicksilver - 500$ Limit. Paid almost in full each month. Opened Nov 2018

Credit One Bank - 300$ Limit. 120$ Balance. Opened May 2019

Indigio (I want to get rid of these subprime accounts) - 300$ Limit. Opened Dec 2019. 150$ Balance.

US Bank Secured Card (Just opened this one) - $300 Limit.

Nordstrom Card - 1,500$ Limit. Opened Dec 2019. 1,400$ Balance (Paying this one day and not using)

Closed Accounts:

Autoloan Repo: Opened June 2014 (This is very close to falling off my credit, but I know its hurting me bad)

Discover Secured Card: Opened June 2016. Paid in Full (they closed this account because I was maxed out and only making the minimums each month. They refuse to approve me for another card)

Medical Bill: Opened 2017 (720$ for an ambulance ride that I couldn't pay)

Citi Secured Card: Opened June 2016 (Similar to Discover, they closed the account due to a returned payment history)

Inquires:

I have about 50 on each report, I know this is terrible. I am trying my best to stop applying - If I know I can fix some of these negative items soon I will be more cautious about applying for anything unless I know I'm really qualified.

Credit Goals:

- 675 to 700 Score

- Citi DoubleCash, Chase Saphire, AMEX Delta, Home Loan to buy a Condo

I'm aware I have a lot of work to do, but my score was in the 400's just a short year and a half ago so I know it's possible to pull myself out of the dark hole. Any help / advice on how to grow my limits and score would be much appreciated. I have confidence in myself to do this where I didn't have 5 years ago.

Much thanks!

Re: Rebuilding from 590 / 600 Credit Score

Anonymous — Sat, 06 Jun 2020 23:46:55 GMT

Are all of the closed accounts paid? Or are the sitting as unpaid collection accounts or charge offs?

Re: Rebuilding from 590 / 600 Credit Score

anik28 — Sun, 07 Jun 2020 00:17:32 GMT

The car charge off is not paid. Hits the 7 year mark next year. Outstanding balance is 9K which I know is ruining my chances of getting any prime cards.

Discover is paid in full.
Citibank is a charge off with a balance.

Re: Rebuilding from 590 / 600 Credit Score

Anonymous — Sun, 07 Jun 2020 00:42:56 GMT

@anik28 wrote:
Hello all,

I am new to MyFico and looking for credit advice. In my early 20's I was very uneducated about how credit worked. I got myself into a financial mess and have spent the last 6-7 years slowly crawling out of the hole. I have a few credit cards but they are all very low limits - some I've had for a couple of years but none of them will give me a CLI. I really need advice on how to move my score up and get credit lines with much higher limits. I am much more educated on how credit works now, but cannot seem to get my score to budge. Any advice is welcomed as improving my credit has been a painfully slow process.

Income:
75K / year. Single and rent an apartment.

Current FICOScore 8:
- Experian 586
- Equifax 551
- TransUnion 609

Open Accounts:
Student Loans - 10,000$ Balance. Paid on time.
Capital One Quicksilver - 500$ Limit. Paid almost in full each month. Opened Nov 2018
Credit One Bank - 300$ Limit. 120$ Balance. Opened May 2019
Indigio (I want to get rid of these subprime accounts) - 300$ Limit. Opened Dec 2019. 150$ Balance.
US Bank Secured Card (Just opened this one) - $300 Limit.
Nordstrom Card - 1,500$ Limit. Opened Dec 2019. 1,400$ Balance (Paying this one day and not using)

Closed Accounts:
Autoloan Repo: Opened June 2014 (This is very close to falling off my credit, but I know its hurting me bad)
Discover Secured Card: Opened June 2016. Paid in Full (they closed this account because I was maxed out and only making the minimums each month. They refuse to approve me for another card)
Medical Bill: Opened 2017 (720$ for an ambulance ride that I couldn't pay)
Citi Secured Card: Opened June 2016 (Similar to Discover, they closed the account due to a returned payment history)

Inquires:
I have about 50 on each report, I know this is terrible. I am trying my best to stop applying - If I know I can fix some of these negative items soon I will be more cautious about applying for anything unless I know I'm really qualified.

Credit Goals:
- 675 to 700 Score
- Citi DoubleCash, Chase Saphire, AMEX Delta, Home Loan to buy a Condo

I'm aware I have a lot of work to do, but my score was in the 400's just a short year and a half ago so I know it's possible to pull myself out of the dark hole. Any help / advice on how to grow my limits and score would be much appreciated. I have confidence in myself to do this where I didn't have 5 years ago.

Much thanks!

I agree with you 100%!

You need to stop apping. The sheer number of inq along with not good scores screams credit seeking.

Most of the cards you have are super recent. You need to let them age and treat them well.

For a few quick points boost in your scores, you should implement AZEO. All zero except one. Pay all those CCs down to $0, but one. And that one just have a few bucks on report (5-20 bucks), but make sure that it is 8.9% utilization of your CL or less.

Those CCs probably have terrible interest rates, so you should just focus on being a "transactor" and not a "revolver". Only buy what you would pay for from your debit card. Treat them as debit cards and not like money you don't have.

You can control what reports to the CBs. You can use your csrds all you want (as a transactor - purchases you would have made anyway with cash/debit) just make sure to pay *before* the statement cut date. This is not usually the same as your due date. That is also how to make AZEO work while still using your cards.

While tending to your new accounts, no apping. While those inq fall off, by that time the repo will have dropped off. It seems like a lot of positives in your future, if you just don't app. You will be in a probably much better place to app at that time.

If you pull your CRs from annual credit report for free (no scores included) you will find out exactly when to expect thise baddies to fall off. Then when you get to 6 months prior to that, you can start looking into EE for TU and EX.

Remember to avoid apping for anything for the whole year before apping for a mortgage.

A bunch of new accounts also affects your AAoA, so it also affects your scores. So add them sparingly. Since you recently got the accounts you no longer want, you already took the hit to your AAoA, so I wouldn't close them while rebuilding.

Good luck!

If you have any other questions feel free to ask!

There are lots of great people here that will chime in with their suggestions.

Re: Rebuilding from 590 / 600 Credit Score

anik28 — Sun, 07 Jun 2020 00:48:50 GMT

@Anonymous thank you for the very insightful advice. Patience is key here, I agree that in the next year I'll be in a pretty good spot to get better cards / rates.

In terms of the AZEO, can that include me paying off the full balance before the statement date or 0 balance used the entire 30 day statement period? My Capital One card is the one I use mainly, and pay off in full each month before the statement cuts.

Re: Rebuilding from 590 / 600 Credit Score

Anonymous — Sun, 07 Jun 2020 01:02:28 GMT

With AZEO you will want to have all of your cards at $0 balance, except 1 card that will have a small balance on it (less than 8.9% of credit limit). You can use your cards as much as you want, but just make sure that they follow AZEO when reporting time comes around each month.

Re: Rebuilding from 590 / 600 Credit Score

anik28 — Sun, 07 Jun 2020 01:14:44 GMT

Got it, hopefully this will get me out of the high 500s and into the low 600s before the negatives fall off my report. as soon as I see my scores go up it'll give me the confidence I need to keep going. It's deflating having these extremely subprime cards. I'm 2 years away from turning 30 and hope to have much better credit by then, that's my goal

Re: Rebuilding from 590 / 600 Credit Score

Anonymous — Sun, 07 Jun 2020 01:39:13 GMT

Just take care of what you can and the scores will follow. Don't get to wrapped up on the points or you can drive yourself crazy. Good luck!

Re: Rebuilding from 590 / 600 Credit Score

anik28 — Sun, 07 Jun 2020 02:00:27 GMT

@Anonymous thank you! One day I'll get there, it's definitely a long process to rebuild.

Re: Rebuilding from 590 / 600 Credit Score

TheKid2 — Sun, 07 Jun 2020 13:53:35 GMT

Just some notes from my experience:

Stop applying for credit. LOCK your CRs if you need to! You don't need any more cards to maximize your scores. Stop applying for credit for AT LEAST the next year. If getting CLIs and improving your scores is important, you need all those Inqs to drop and it will take at least 12 months to become unscoreable.
Spend time to learn about how FICO scoring works, but don't worry about AZEO and carrying balances on your open revolvers, yet. AZEO is like the whip cream on your FICO ice cream - do that last. Let your active CCs carry some balance, pay them ON TIME, and use extra money you have to settle and pay off your old debt first. Past due debt crushes your Util and AZEO is meaningless until you settle all of it.
Patience is key. It is a painfully slow process and will continue to be. Stay focused on the end game. Keep posting about progress and learning from this site.

Good luck!

Re: Rebuilding from 590 / 600 Credit Score

Anonymous — Sun, 07 Jun 2020 14:04:00 GMT

@TheKid2 wrote:
Just some notes from my experience:

Stop applying for credit. LOCK your CRs if you need to! You don't need any more cards to maximize your scores. Stop applying for credit for AT LEAST the next year. If getting CLIs and improving your scores is important, you need all those Inqs to drop and it will take at least 12 months to become unscoreable.
Spend time to learn about how FICO scoring works, but don't worry about AZEO and carrying balances on your open revolvers, yet. AZEO is like the whip cream on your FICO ice cream - do that last. Let your active CCs carry some balance, pay them ON TIME, and use extra money you have to settle and pay off your old debt first. Past due debt crushes your Util and AZEO is meaningless until you settle all of it.
Patience is key. It is a painfully slow process and will continue to be. Stay focused on the end game. Keep posting about progress and learning from this site.
Good luck!

AZEO is probably the most overrated thing frequently advocated on this forum.

Re: Rebuilding from 590 / 600 Credit Score

anik28 — Sun, 07 Jun 2020 17:17:20 GMT

@TheKid2 agreed. Already locked my Experian, going to lock the other 2. Is there a chance of getting to 650 in the next 12 months if I stick to this plan?

thanks!

Re: Rebuilding from 590 / 600 Credit Score

TheKid2 — Sun, 07 Jun 2020 17:36:32 GMT

@anik28 wrote:
@TheKid2 agreed. Already locked my Experian, going to lock the other 2. Is there a chance of getting to 650 in the next 12 months if I stick to this plan?

thanks!

It's really hard to say as there are so many factors in scoring. But settling old debt, not seeking credit / opening new accounts, and getting CAs deleted are all great steps that will help your scores. Start a plan, a document, a spreadsheet, a post here, and track your scores and progress. It helps keep you on task!

Good luck!

Re: Rebuilding from 590 / 600 Credit Score

anik28 — Sun, 07 Jun 2020 18:38:46 GMT

I'm most curious how my credit profile is going to be affected by the car charge - off repo. I know that must be a huge flag to lenders and I've resigned for the past 6 years that my credit would be severly affected until it falls off. Is there anything I can do to ensure that the repo comes off right after 7 years?

I've learned my lesson hardcore on this one, I will never ever let an account go bad even if I have to pay the minimums until I can pay in full. I have a great career and have worked hard to get where I am at, my credit has been a source of huge embarrasment and I'm ready to have better circumstances.

Thanks for the advice all!

Re: Rebuilding from 590 / 600 Credit Score

Anonymous — Sun, 07 Jun 2020 19:04:29 GMT

The CRA's are typically pretty good about removing things that are past date. Your best bet is to pull your CR's from annualcreditreport.com (free weekly pulls through 4/2021) and make sure there is a removal date showing on there. Then make sure it is correct based on your DoFD (date of first delinquency). Your DoFD will be the first late payment you had that led up to the repo. Add 7 1/2 years and that should be the exclusion date. If the removal date listed on your CR is beyond that date then there is an issue. If it is earlier than that, then no worries.

Re: Rebuilding from 590 / 600 Credit Score

anik28 — Sun, 07 Jun 2020 20:28:22 GMT

I've tried contacting Citibank today to see if I can settle the small collection account of $344 - they cannot find it in their system and said it was likely sold off to a collection agency. That can't be possible because its being reported by them every single month, and theres no collection account for it.

Any recommendations on how to deal with this? If it's not in their system, then how can they be reporting it each month? it needs to be removed or settled.

Re: Rebuilding from 590 / 600 Credit Score

Anonymous — Sun, 07 Jun 2020 20:39:49 GMT

If they sold it they should be able to tell you who they sold it too. I would call back again tomorrow and hopefully get a more knowledgeable rep. If they truly can't find the account, then I would assume they have no way to verify any information if it was disputed.

Re: Rebuilding from 590 / 600 Credit Score

anik28 — Sun, 07 Jun 2020 20:55:43 GMT

@Anonymous If they truly cannot locate the account or the collection agency - how do I go about disputing it and getting the account removed? I've disputed this item a number of times and it never gets removed. Should I call the CRA's and see if they can manually dispute?

Re: Rebuilding from 590 / 600 Credit Score

anik28 — Sun, 07 Jun 2020 21:03:02 GMT

I also have a Wells Fargo secured card that I opened, but never funded. It's reporting as Closed - but it's been past the 7 year mark from 2013 and they still have not removed from my report. Do I contact WF to remove or the CRA's?

Re: Rebuilding from 590 / 600 Credit Score

Anonymous — Sun, 07 Jun 2020 21:23:49 GMT

@anik28 wrote:
I also have a Wells Fargo secured card that I opened, but never funded. It's reporting as Closed - but it's been past the 7 year mark from 2013 and they still have not removed from my report. Do I contact WF to remove or the CRA's?

positive (or in this case neutral, imo) stays on your CRs for 10+ years. There is nothing to dispute.