topic Re: Rebuild Credit Fast in Rebuilding Your Credit

Rebuild Credit Fast

Anonymous — Tue, 28 Apr 2009 22:57:37 GMT

Hello All,

I'm new to the forum and excited to join! I really need some help big time. I need to buy a home by the end of this year. My credit is considered fair (Just a little better than poor, but not good). My EXP is a little over 630 and Trans/Equi Fico just under 670. I have no credit card lines at all. I have a collection, which is in dispute and a couple of charge offs. All I have is my mortgage, which I paid on time month to month for 7 years now and my recent car loan which I only had for a few months, but paid on time as well (YAY). My goaI is to get all 3 scores to 700+ ASAP. Any advice to do this quickly? Time is an issue for me.

If I were to apply for a credit card, I think I may get accepted, but I doubt I would be given a decent limit to help boost my score. So, here's what I was thinking about doing: Apply for a Bank of America Secure Credit Card and put down $10k cash for the $10k limit, but only charge around $100 bucks a month and PIF each month. I'm hoping to see some really big gains in 6 months. Do anyone have a better idea or has anyone done this? I am open to all advice and criticism (as long as it is constructive).

Please help me!

Re: Rebuild Credit Fast

BungalowMo — Tue, 28 Apr 2009 23:11:26 GMT

How old are your bad marks? What's your drop off dates?

Did you have those bad marks when you got your 1st mtg? Were they there when you got the car loan?

Do you still have the car loan??

Just trying to get a bigger picture of your situation.

As far as FICO's go...you're sitting in a nicer place than I & I'm trying to re-fi.

Re: Rebuild Credit Fast

Anonymous — Tue, 28 Apr 2009 23:29:10 GMT

My charge offs are about 5 - 7 years old.. I sent dispute letters asking that it be dropped off..Who knows if they'll listen. When I got my first Mortgage, my credit score was in the 790s (I am kicking myself for letting it drop). At the time, I had multiple lines of credit cards with decent limits + a car loan. And I do have a car loan.... Anyway, that's the past...I'm trying to get it back....

Re: Rebuild Credit Fast

Anonymous — Wed, 29 Apr 2009 14:36:06 GMT

First thing I would do is pull your free annual reports, if you haven't already. See link below.

You sent dispute letters asking that they be dropped to who?

Who did you dispute the collection with? What is the DOFD on that? Is it medical? Is it paid? Is it beyond SOL or can you PIF?

Are the COs paid? Who is reporting them? What is the DOFD?

I thought I read that BoA stopped offering the secured card, maybe not.

I would first see what you could do to make your report cleaner.

Re: Rebuild Credit Fast

ralbusta — Wed, 29 Apr 2009 16:23:37 GMT

As far as opening a card goes higher limit doesn't mean higher score. You would probably be better off using the 10k to cover downpayment.and costs for your home loan.

I would try for a cap 1 card, some people don't like them but I've had good experiences.

Re: Rebuild Credit Fast

BungalowMo — Wed, 29 Apr 2009 17:21:56 GMT

@ralbusta wrote:
As far as opening a card goes higher limit doesn't mean higher score.

I "slightly" disagree here. If you had a new card with, for instance, an $8k limit & you only put $200. on it, it would show you are using the card responsibly. Good thing. But it would also add another $7800. to your available, but unused credit, therefore lowering your overall % of util.

This likely would raise your score. How much?? I don't know.

You would probably be better off using the 10k to cover downpayment.and costs for your home loan.

I cannot argue the point made above! Loan officers like to see you can SAVE$$!!

I would try for a cap 1 card, some people don't like them but I've had good experiences.

Re: Rebuild Credit Fast

Anonymous — Wed, 29 Apr 2009 18:28:16 GMT

BungalowMo wrote:
@ralbusta wrote:
As far as opening a card goes higher limit doesn't mean higher score.
I "slightly" disagree here. If you had a new card with, for instance, an $8k limit & you only put $200. on it, it would show you are using the card responsibly. Good thing. But it would also add another $7800. to your available, but unused credit, therefore lowering your overall % of util.
This likely would raise your score. How much?? I don't know.

What you have said is true, but only because of the lower utilization %. The higher CL doesn't really affect score, the lower % does. So, you could accomplish the same thing by lowering balances.

For example, someone who has no CC would get the same boost to score in both of the following scenarios.

1- CC with CL of $500, balance of $5

2- CC with CL of $5000, balance of $50

Utilization is 1% for both scenarios.

Re: Rebuild Credit Fast

Anonymous — Thu, 30 Apr 2009 00:33:53 GMT

@Anonymous wrote:
First thing I would do is pull your free annual reports, if you haven't already. See link below. Already done this.

You sent dispute letters asking that they be dropped to who? Dispute letters were sent to the CA

Who did you dispute the collection with? My understanding is that per the FTC, delinquent charges past 7 years are to be dropped. So I made reference to this within my dispute letter to the CA. What is the DOFD on that? What is DOFD Is it medical? NO Is it paid? One of the two was Settled. The other was not paid but listed with status of Closed Canceled by grantor. Is it beyond SOL or can you PIF? What is SOL

Are the COs paid? Who is reporting them? What is the DOFD?

I thought I read that BoA stopped offering the secured card, maybe not.

I would first see what you could do to make your report cleaner.

Re: Rebuild Credit Fast

Anonymous — Thu, 30 Apr 2009 00:39:33 GMT

Per FCRA, negative accounts remain 7 - 7 1/2 years from DOFD.

DOFD = Date the account went delinquent prior to charge off/collection/other similar activity

The one listed as "closed/canceled by grantor" who is reporting that?

SOL is statutes of limitations-- the period prescribed by your state for the creditor to recover damages aka sue you.

Re: Rebuild Credit Fast

Anonymous — Thu, 30 Apr 2009 08:21:56 GMT

The one listed as "closed/canceled by grantor" who is reporting that? A dept. store called Macys.... What does that status mean? I imagine it isn't worth paying it off at this point.

Re: Rebuild Credit Fast

Anonymous — Thu, 30 Apr 2009 14:02:44 GMT

From a FICO standpoint, a large CL may not help more than a more moderate CL.

However, from an LO review, the higher CL is better as long as it is not to a level that they feel you present too much potential debt risk.

The reason: If another creditor felt you were worthy of a larger CL, then this speaks to your credibility.

If you have adequate income and savings to cover your down payment, maintain savings/emergency and pay off debt that you need to....then YES YES YES go for the 10k secured card.

If you are not using the CL more than a few hundred bucks, the $10K is still in savings and is part of your financial portfolio because you don't have an offsetting debt against it. While it is "securing" the card, this isn't much different than a CD. You can close the CC at any time and withdraw your savings (minus card balances).

So, the $10K secured card adds to savings, gives you a good CL and CC reference, creates a needed TL and will provide you great utilization percentages when you only use it for expenditures that you PIF each month, maybe leaving $50 as a balance.

Remember: FICO is important, but your CR contents are just as important, and in many ways more important.

Re: Rebuild Credit Fast

Anonymous — Wed, 06 May 2009 14:51:14 GMT

I applied for the unsecured card offerred by BOA and was rejected! Anyway, I am definitely going the Secured Card route. Does anyone have any recommendations? I am looking for a secured card that converts to unsecured. BOA does offer that. Are there any others worth considering?

Re: Rebuild Credit Fast

Anonymous — Wed, 06 May 2009 15:24:40 GMT

Affinaty credit union

Re: Rebuild Credit Fast

BungalowMo — Wed, 06 May 2009 15:32:00 GMT

Just to clarify in my scenerio....I wasn't saying yoiu would need an 8k card. That was just a # I pulled out of the air.

You can accomplish the same util % on a $300. card.

Re: Rebuild Credit Fast

Anonymous — Wed, 06 May 2009 15:38:22 GMT

As an FYI, I used a $15,000 secured card through Amalgamated Bank of Chicago during my rebuilding years. I got that in 2005. In 2006 BoA gave me $10,000 unsecured. Had I only a $300 CL, BoA would have never considered such a CL.

Re: Rebuild Credit Fast

Anonymous — Wed, 06 May 2009 21:09:12 GMT

Hello......

I've recently got a $500 securred cc from my credit union recently.......it did seem to boost my FICO by a few points........from low 500 for mid 500. I'm not sure if getting a securred cc with that much will look good on your CR....perhaps try a smaller amount then work your way up to a larger amount. I'm think that if you were to start off with a smaller amount, pay on that for a while and then go for an increase it would show better on your CR.

Re: Rebuild Credit Fast

Anonymous — Sun, 21 Jun 2015 19:12:49 GMT

Does your bank offer a card that graduates ? I bank with Whitney Bank and it's been too easy having all my money in one place to manage. I don't think you should put the complete 10k because it can actually take up to 90 days to get your money back when it graduates depending on who you go with. I wouldn't want that much money tied up. You can do the same thing with a lower amount as others have said. I can also tell you with my bank there is no set time for a card to graduate so you may want to check with the bank you already have a relationship with, they may surprise you, mine didn't even advertise the secured card.

Re: Rebuild Credit Fast

Anonymous — Sun, 21 Jun 2015 20:23:14 GMT

Good advice but I'm pretty sure this thread is from 09'. I almost replied to it as well before I looked at the date it was started

Re: Rebuild Credit Fast

Pway — Sun, 21 Jun 2015 22:52:39 GMT

I request that this thread be locked due to it being from 2009.