topic Re: Please Help Me With Credit Rebuild Project in Rebuilding Your Credit

Please Help Me With Credit Rebuild Project

myCreditNeedsWings — Wed, 04 May 2022 01:18:23 GMT

Greetings - I went through a very rough financial time in 2019 and it caused my credit scores to take a nose dive. Currently I have a secured Capital One card & Chime credit builder card helping me at this time. The following are my accounts and credit scores. My goal is to buy a house in 12-24 months please assist. I will greatly appreciate some guidance, pointers and suggestions as I begin this journey.

4 Collections
I.C. System, Inc (Comcast Xfinity) $445
1St Crd Srvc (Anytime Fitness) $373
Iq Data International (Apartment Lease) $9,100
401YC00000 $316

6 Charge-offs
Covington Credit (Last Update 09/2019) $600
Mariner Finance, LLC (Last Update 07/2019) $2,130
First Citizens Bank (Last Update 04/2020) $0
First Progress Card (Last Activity 06/2019) $161
Opensky Capital Bank (Last Activity 03/2020) $265
First Choice/Green Dot (Last Activity 06/2019) $85

Credit Scores 5/3/22 - EQ:554 TU:542 Ex:518

Re: Please Help Me With Credit Rebuild Project

FireMedic1 — Wed, 04 May 2022 10:21:54 GMT

Well its going to be a tough one with the CO's. Comes down to getting all the baddies settled or PIF. ICS does PFD I believe. Once all the CO's are settled. It wont affect your revovling util %'s any longer. Main thing it will quit updating each month. Then time will do its thing as they age and fall off. 1 collection or CO on a report lingers the entire 7 years. Least they'll all fall off around the same time. CO's wont go anywhere with GW's.

Question. What do you have now thats open?

Re: Please Help Me With Credit Rebuild Project

PNWRambler — Wed, 04 May 2022 19:19:26 GMT

If you have any debt that hasn't gone bad, I'd focus on that first as it will free up cash flow by reducing minimum payments. Otherwise settle those CO's one at a time, lump sum, PIF - and get something in writing before you send them money. If the debt has been sold, you can settle for an even lower amount usually. But don't give the creditor direct access to your checking account. Check, money order, pre-paid debit card...

Re: Please Help Me With Credit Rebuild Project

myCreditNeedsWings — Wed, 04 May 2022 19:24:30 GMT

Hi @FireMedic1 the only account that I have open at this time is a Capital One Card that I pay on time every month. I also just got a Chime credit builder account/card.

Re: Please Help Me With Credit Rebuild Project

myCreditNeedsWings — Wed, 04 May 2022 19:22:29 GMT

Thanks @PNWRambler , I will do that now!

Re: Please Help Me With Credit Rebuild Project

FireMedic1 — Thu, 05 May 2022 09:11:26 GMT

@PNWRambler wrote:
If you have any debt that hasn't gone bad, I'd focus on that first as it will free up cash flow by reducing minimum payments. Otherwise settle those CO's one at a time, lump sum, PIF - and get something in writing before you send them money. If the debt has been sold, you can settle for an even lower amount usually. But don't give the creditor direct access to your checking account. Check, money order, pre-paid debit card...

Agree with all of it until get it in writing. No need for letters when paying down a balance. Letters are for PFD. And then most wont do it due to agreements creditors have with the CRA's to report accurately. Good advice though.

Re: Please Help Me With Credit Rebuild Project

FireMedic1 — Thu, 05 May 2022 09:13:31 GMT

@myCreditNeedsWings wrote:
Hi @FireMedic1 the only account that I have open at this time is a Capital One Card that I pay on time every month. I also just got a Chime credit builder account/card.

Good. Just need 1 more card. If you can. Maybe grab a Disco secured for $500. And you'll have the 3 card rebuild bous and have only 1 report a balance. Let them grow as you get all the debts to $0 balance. Good Luck!

Re: Please Help Me With Credit Rebuild Project

myCreditNeedsWings — Thu, 05 May 2022 12:42:00 GMT

Thanks @FireMedic1 I will look into getting the Disco secured for $500 this week!

Re: Please Help Me With Credit Rebuild Project

FireMedic1 — Fri, 06 May 2022 08:12:45 GMT

Cool. You got this!

Re: Please Help Me With Credit Rebuild Project

myCreditNeedsWings — Sat, 06 Aug 2022 17:32:30 GMT

Things have be going great slow and steady. My disco card with the $500 limit should arrive in a couple weeks. Question: you stated to keep balances to $0, should I make small purchases each month? Thanks in advance!

Re: Please Help Me With Credit Rebuild Project

FireMedic1 — Sat, 06 Aug 2022 20:23:53 GMT

Nice @myCreditNeedsWings . You can use the cards all you want. Get the rewards. I say that so you dont have to pay interest. Emergencies only. Never have all your cards report a balance or none at all. FICO doesnt care for that. Basically if you cant pay it, dont charge it. You'll be fine. Your on your way!

Re: Please Help Me With Credit Rebuild Project

myCreditNeedsWings — Sat, 18 Feb 2023 20:14:33 GMT

Things are going great, I have 5 Credit Cards with only 1 reporting a balance. My middle Fico Score is 617 as of 2/18/23 and I only have two (2) major issues remaining to really get rolling, and they are with "Mariner Finance LLC". They are offering a settlement for $1400 but haven't agreed to removal and are giving me until April to accept offer. The other is a collection with "IQ Data International" they bought an old apartment eviction from 2017 with an original balance of $7,000 but since they have had the account it now includes interest making the account around $9,000.

EQ - 627
TU - 618
Exp - 610

Re: Please Help Me With Credit Rebuild Project

IamWesty12 — Sun, 19 Feb 2023 03:52:26 GMT

@myCreditNeedsWings wrote:
Things are going great, I have 5 Credit Cards with only 1 reporting a balance. My middle Fico Score is 617 as of 2/18/23 and I only have two (2) major issues remaining to really get rolling, and they are with "Mariner Finance LLC". They are offering a settlement for $1400 but haven't agreed to removal and are giving me until April to accept offer. The other is a collection with "IQ Data International" they bought an old apartment eviction from 2017 with an original balance of $7,000 but since they have had the account it now includes interest making the account around $9,000.

EQ - 627
TU - 618
Exp - 610

@myCreditNeedsWings Great job progressing towards your goals. I also started out with a Disco secured CC. At the time when I opened it, I could only muster up $200 but I knew once I established with them and practiced sound credit steps that they were a FI that I would do well with. I used the card as my daily driver at the time and after 6 or 7 months my deposit was returned to me and my card went from secured to a regular credit card as well as them boosting my SL 5x's over to $1K! As if I needed another perk from them but don't forget your cash back after the first year. Whatever you rack up in charges through using the card for the first year they match it dollar for dollar and also send that to you fairly soon after year one. They truly put the customers first and if you treat them well they certainly do the same back. I understand we all have preferences but I highly recommend this card to anyone rebuilding who is reading this. Anyway, congrats again and keep us posted on your continued progression, we all love a comeback story big time !

Re: Please Help Me With Credit Rebuild Project

myCreditNeedsWings — Sun, 19 Feb 2023 04:56:30 GMT

Thank you very much for the kinds words and encouragement because it really helps when working to stay the course. This community has been amazing support system. My Disco Card & Cap1 and NFCU Cards are all secured and my goal is too get them all graduated and continue the journey!

Re: Please Help Me With Credit Rebuild Project

Epiki71 — Mon, 20 Feb 2023 20:57:02 GMT

Op,

Congrats on the progress, keep at it well done.

Re: Please Help Me With Credit Rebuild Project

FireMedic1 — Mon, 20 Feb 2023 21:55:22 GMT

Nice. I know it seems like its so slow. The end is near. Just takes time.