topic Re: My Credit Journey in Rebuilding Your Credit

My Credit Journey

Anonymous — Wed, 01 Dec 2021 15:14:38 GMT

Hello, everyone. I've been lurking here for a while and decided to create an account and document my credit rebuilding journey. I will post monthly updates to help keep myself accountable. I hope this helps others in the same situation.

A quick bio: I'm 33, divorced (I don't pay alimony), stable job with an income of $116k. I made some stupid decisions in my 20's that resulted in destroying my credit. I am looking to purchase a house in the next 1.5 to 2 years and decided it's time to face my fears and fix my credit.

My FICO 8 scores on 8/17/2021

Equifax: 596
TransUnion: 602
Experian: 598
Credit Utilization: 16%
Open Accounts: 5
Accounts Late: 12
Closed Accounts: 10
Collections: 6
Inquiries: 6

My current FICO 8 scores

Equifax: 653
TransUnion: 635
Experian: 619
Credit Utilization: 2% (AZEO)
Open Accounts: 5
Accounts Late: 6
Closed Accounts: 9
Collections: 1
Inquiries: 2

Positive Items

Capital One Platinum CC: $500 limit, no lates, $0 balance
Capital One QS One CC: $1,500 limit, no lates, $0 balance (recent automatic CLI of $1,000)
Navy Fed More Rewards CC: $15,000 limit, no lates, $0 balance (primary card, AZEO)
Home Depot charge card: $1,850 limit, no lates, $336 balance (authorized user, grandfather's card)
Honda Financial Services Auto Loan: $18,003, no lates

Negative Items

AMEX Blue Cash CC: paid in full, charge off, closed
Best Buy charge card: $2,579 balance, charge off, closed
Discover It CC: $2,200 balance, charge off, closed
USE CU Auto Loan: $6,051 balance, charge off, closed
Upstart Loan: $7,000 balance, charge off, closed

Collection Items

~~Security Credit Services: $3078 balance~~ (deleted 11/30/21)

I spent the last few months sending debt validation letters and disputing inquiries which have resulted in the removal of some negative items off my credit report. I've also paid off my Capital One Platinum and Capital One QuickSilver One, and recently acquired a Navy Fed More Rewards card. I have gotten into the habit of only using my Navy Fed card and paying off the balance in full before Navy Fed reports to the credit bureaus. Should I be using my Capital One QuickSilver One instead if I want to build towards qualifying for the Capital One Venture X?

My next steps are to remove the last collection, and pay in full or settle the 5 closed/charged off accounts. The 6 lates listed on my accounts are with some of the closed/charged off accounts. All of my open accounts have exceptional payment history. Are there any other tips or pointers specific to my situation?

Thank you all and I look forward to posting more updates soon!

Edit: changed post to reflect deleted collection!

Re: My Credit Journey

Anonymous — Tue, 09 Nov 2021 18:25:58 GMT

I added more detail to my original post. Thanks for reading everyone.

Re: My Credit Journey

FireMedic1 — Tue, 09 Nov 2021 21:25:00 GMT

Your on the right track. Pay all the baddies off. Quit disputing Inq's. They wont go anywhere unless its fraud. Just remember each time you dispute it comes back verified and a new update hits your scores. Venture X wont be easy. There are folks with 800 scores and cant even get the Savor. Keep doing what you planned to do. Age will take care of the rest. Those CO's once fallen off will be the biggest gains and better things will come your way.

Re: My Credit Journey

Anonymous — Tue, 09 Nov 2021 22:00:04 GMT

I was hoping and waiting for you to comment on my post @FireMedic1 Thank you for the feedback, I appreciate it! I didn't know about the disputes, good to know.

Re: My Credit Journey

FireMedic1 — Tue, 09 Nov 2021 23:28:46 GMT

No problem. Things always work out in the end. We all want it yesterday. I was the same after BK. I want it NOW! But its a snails pace rebuilding and getting up the ladder. (cough cough) But eventually time does go by fast and you'll be there before you know it. Just remember. Finances over FICO. You'll get there. Good things come to those who wait.

Re: My Credit Journey

gtnitright — Tue, 09 Nov 2021 22:53:12 GMT

Congratulations on your rebuild. And I always enjoy @FireMedic1 post. Always encouraging!

Re: My Credit Journey

FireMedic1 — Tue, 09 Nov 2021 23:29:47 GMT

@gtnitright wrote:
Congratulations on your rebuild. And I always enjoy @FireMedic1 post. Always encouraging!

Thanks! @gtnitright 👍

Re: My Credit Journey

Anonymous — Wed, 10 Nov 2021 19:23:56 GMT

Your rebuild is so inspiring! Thanks for the encouragement. I do have a question about the Home Depot charge card that I'm an AU on: should I just have my grandfather remove me? He carries a small balance on it and it was just opened last year. Is there any benefit to having this on my credit report?

Re: My Credit Journey

NewMe1120 — Wed, 10 Nov 2021 20:15:05 GMT

Congrats to you on your rebuilding journey! You're already making progress.

I am older than you but you have definitely inspired me. I also want to buy a house next year so attempting to move my credit scores up.

I will watch you as you continue your journey to rebuild and restore!

Re: My Credit Journey

Anonymous — Wed, 10 Nov 2021 23:22:43 GMT

Thank you so much @NewMe1120 for the kind words and encouragement! I saw your post about your scores rising - job well done! I can't wait to get to where you are at.

Re: My Credit Journey

IamWesty12 — Sat, 13 Nov 2021 22:50:48 GMT

This is awesome, congrats @Anonymous on your hard work repairing what you can and for your "future" patience while waiting for time to truly help the rest

Life is full of ups and downs and we ALL make mistakes. I myself am in the same trajectory of your situation and have finally *accepted* that I can only change and learn from & for what I have control over. The rest, well, that is out of my hands but as long as I have learned from my past less than stellar choices and move forward making wiser ones than I am doing my part. You've made some great choices and you have put yourself on a path to succeed.

I remind myself that my credit wasn't trashed overnight and took quite a few mistakes over and over again to trash my credit. Likewise, when fixing my credit and making better choices to positively affect my credit these days, this too will not happen overnight and over time these good choices and solid habits are setting a solid foundatiion for my new today and future!

Virtual cheers up as we all continue to grow and watch our credit mature. I have to remind myself often to be patient and to try not to force these positive changes for my credit.

Re: My Credit Journey

Anonymous — Mon, 15 Nov 2021 19:01:17 GMT

Thank you so much for your very kind words and encouragement @IamWesty12! It certainly takes a lot to accept the situation and put in the effort to turn it around. For years I ignored my situation because I didn't think it was repairable and I was beyond embarassed and disappointed in myself. I'm so glad I found these forums with such great people such as yourself. You're right about it not happening overnight! That is a great reminder that I will use for myself as well

Re: My Credit Journey

Anonymous — Wed, 17 Nov 2021 02:18:50 GMT

To my surprise, I got an invitation today from American Express to regain membership with their Optima card. The letter says I'm being offered this as a result of paying my charge off in full. This is definitely strange because I paid this in full about 2-3 years ago. The rep mentioned the Optima but I never got the offer in the mail.

I will do further research on this forum, but I'm assuming the Optima card is crucial to repairing the relationship with American Express.

Re: My Credit Journey

Anonymous — Wed, 17 Nov 2021 02:21:05 GMT

I am on the fence about the Optima card. I am trying to avoid an HP as much as possible and my goal is to apply for the Capital One Venture in January. I don't want to screw up my chances. Does anyone have any guidance?

I would like a card with AMEX eventually but definitely in no rush to get it. Once I get my hands on the Venture I'm going to AZEO that bad boy and rack up points to transfer to airline partners. I fly internationally once a year.

Re: My Credit Journey

Anonymous — Wed, 01 Dec 2021 15:17:25 GMT

Just a small update. I was able to get the last collection on my credit report removed (Security Credit Services). I was happy initially because my TransUnion score went up 15 points. Because of this, I was expecting at least a small bump with Experian and Equifax but instead lost 1 point each. Frustrating, but at least I no longer have collections on my report. Still working on the charge offs!