topic Re: Guide for rebuilding to 700 with damaged credit in Rebuilding Your Credit

Guide for rebuilding to 700 with damaged credit

720orBust — Thu, 13 Oct 2022 04:40:02 GMT

I have been looking for a step-by-step guide here that will help someone rebuild their credit from the bottom to the top with a couple of collections. I have seen one that was for BK and it seemed good but I'm not sure how useful it would be for someone who has no BK history.

Would anyone recommend a post from here or even a self-help steps checklist of what to do?

I started watching YouTube videos but they are saturated with so many people wanting to sell credit repair programs or recommending stuff just so they can get some sort of affiliate payout.

I don't mind paying for a program that will teach me how to do it myself. I do not need someone to do it for me because of the saying "you can give a man a fish......."

I know everyone's situation is different. Any recommendations for a post or program out there would be of great help.

Thank you in advance!

Re: Guide for rebuilding to 700 with damaged credit

GZG — Thu, 13 Oct 2022 05:06:12 GMT

Just first steps, because this is something I wish I had when I got here. The master list of threads is a good start and has bits and pieces in various threads here and there, but there's no one thread that tells you what on earth to do from this situation.

I'd love to take a much more thorough stab at this when I have more time.

Step 0:

https://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Helpful-Rebuilding-Threads/td-p/224981

read

Step 0.5 (optional?)

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Credit-Scoring-Primer-pub-5-17-20/m-p/6023348

long read, this justifies the steps

Step 1: How much money do you have to pay your debts? Figure it out. List all of your debts, find them using your credit reports. See how much you owe.

https://www.annualcreditreport.com/

If the amount you owe is more than you think you'll ever see for a few years, perhaps considering asking in the bankruptcy threads if you need that. I wouldn't know a thing about BK.

Step 2: Minimum payments on anything still open and not charged off yet.

Step 3: Go through your collections. Research if they will pay for delete. (anything not from the original creditor) If they will, settle or pay those off first.

Step 4: Settle/Pay in full/wait out 7 years from DOFD the rest of your collections.

Step 5: Settle/Pay in full/wait out 7 years from DOFD the rest of your original creditors.

Step 6: Goodwill letters to anybody still reporting once a week? month? (the threads on GW letters will be more accurate) on different days of the week until they offer to stop reporting or 7 years from DOFD.

Step 6: Stop spending money, double your income, live on ramen, make it your sole life's mission to rid yourself of debt to the point where people think you are insane a-la Dave Ramsey. A lot of his stuff is ehh but the mindset of fixing your relationship with money/life and how we messed up in the first place (even if it was just bad luck) was really helpful for me, personally.

Step 7: Three credit cards, a SSL if you don't have a loan, and time.

Step 8: 5-10k in an emergency fund savings account so you can weather life and prevent from coming back here.

Re: Guide for rebuilding to 700 with damaged credit

720orBust — Thu, 13 Oct 2022 05:04:23 GMT

@GZG wrote:
Just first steps, because this is something I wish I had when I got here. The master list of threads is a good start and has bits and pieces in various threads here and there, but there's no one thread that tells you what on earth to do from this situation.

I'd love to take a much more thorough stab at this when I have more time.

Step 0:

https://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Helpful-Rebuilding-Threads/td-p/224981

read

Step 1: How much money do you have to pay your debts? Figure it out. List all of your debts, find them using your credit reports. See how much you owe.

https://www.annualcreditreport.com/

If the amount you owe is more than you think you'll ever see for a few years, perhaps considering asking in the bankruptcy threads if you need that. I wouldn't know a thing about BK.

Step 2: Minimum payments on anything still open and not charged off yet.

Step 3: Go through your collections. Research if they will pay for delete. (anything not from the original creditor) If they will, settle or pay those off first.

Step 4: Settle/Pay in full/wait out 7 years from DOFD the rest of your collections.

Step 5: Settle/Pay in full/wait out 7 years from DOFD the rest of your original creditors.

Step 6: Goodwill letters to anybody still reporting once a week on different days of the week until they offer to stop reporting or 7 years from DOFD.

Step 6: Stop spending money, double your income, live on ramen, make it your sole life's mission to rid yourself of debt to the point where people think you are insane a-la Dave Ramsey. A lot of his stuff is ehh but the mindset of fixing your relationship with money/life and how we messed up in the first place (even if it was just bad luck) was really helpful for me, personally.

Step 7: Three credit cards, a SSL if you don't have a loan, and time.

Thank you so much for the information. This was very useful. I actually like Dave Ramsey I forgot about him. I will do more research him.

Also, the first #6 you posted is a great idea. I know sending letters can help but maybe if I send them often they will see my desire to improve my credit. I like it. Thank you so much for taking the time to post.

Re: Guide for rebuilding to 700 with damaged credit

mfinsmi1 — Thu, 13 Oct 2022 06:39:12 GMT

make sure you look at your 3b report (bureau to bureau for any innacurate information ) - if there something that is reporting incorrect or wrong that is negatievely impacting your credit score dispute it to try to remove it ---- only if it doesnt belong!! (i say this becuause unless you are knowlegable in metro 2 compliance based disputing following a youtubers method of dispute everything and hope it gets removed will most likely hurt you not help)

Re: Guide for rebuilding to 700 with damaged credit

720orBust — Thu, 13 Oct 2022 06:47:29 GMT

Yes, great advice. I started to follow the advice of YT vloggers but it just seemed shady and I want to improve my credit and not fall down some dark hole that will eventually ruin me. Thank you for the reply.

Re: Guide for rebuilding to 700 with damaged credit

FireMedic1 — Thu, 13 Oct 2022 11:03:55 GMT

Could you list out the baddies. Especially the CA's. You may have some that PFD. We beat any repair service and were free.

Re: Guide for rebuilding to 700 with damaged credit

Jnbmom — Thu, 13 Oct 2022 11:08:22 GMT

As @FireMedic1 stated it's really impossible to advise how you should proceed without knowing what is on your credit file . You need to list all you accounts with whom, their status etc .

Re: Guide for rebuilding to 700 with damaged credit

720orBust — Thu, 13 Oct 2022 11:15:01 GMT

My baddies are

@FireMedic1

Fingerhut/Webbank CLOSED 2017 $224

LVNV (its the Fingerhut account in collections $224

Ideal Cars V rep $2836 2016

Re: Guide for rebuilding to 700 with damaged credit

FireMedic1 — Thu, 13 Oct 2022 11:37:14 GMT

@720orBust wrote:
My baddies are
@FireMedic1
Fingerhut/Webbank CLOSED 2017 $224
LVNV (its the Fingerhut account in collections $224
Ideal Cars V rep $2836 2016

Well good news. LVNV will delete their entry after settled or paid. Payoff Fingerhut. Ideal Cars appears to be past the SOL. Plus looks like it may die off depending in the date. When was it repo'ed?

Re: Guide for rebuilding to 700 with damaged credit

720orBust — Thu, 13 Oct 2022 23:46:03 GMT

@FireMedic1 wrote:
@720orBust wrote:
My baddies are
@FireMedic1
Fingerhut/Webbank CLOSED 2017 $224
LVNV (its the Fingerhut account in collections $224
Ideal Cars V rep $2836 2016
Well good news. LVNV will delete their entry after settled or paid. Payoff Fingerhut. Ideal Cars appears to be past the SOL. Plus looks like it may die off depending in the date. When was it repo'ed?

Thank you I appreciate the lookover. 2 last questions if you will.

Because LVNV is a collection associated with Fingerhut would you recommend paying LVNV or Fingerhut the $224. I just don't want to carry a balance and if they are nice and remove it I would be happy but I understand they will report what it is.

And if I have those on my reports will my score increase with on-time payments and having a couple of low CL (under $500) credit cards until 10% utilization?

Thank you again.

Re: Guide for rebuilding to 700 with damaged credit

FireMedic1 — Fri, 14 Oct 2022 07:47:00 GMT

@720orBust wrote:
@FireMedic1 wrote:
@720orBust wrote:
My baddies are
@FireMedic1
Fingerhut/Webbank CLOSED 2017 $224
LVNV (its the Fingerhut account in collections $224
Ideal Cars V rep $2836 2016
Well good news. LVNV will delete their entry after settled or paid. Payoff Fingerhut. Ideal Cars appears to be past the SOL. Plus looks like it may die off depending in the date. When was it repo'ed?
Thank you I appreciate the lookover. 2 last questions if you will.

Because LVNV is a collection associated with Fingerhut would you recommend paying LVNV or Fingerhut the $224. I just don't want to carry a balance and if they are nice and remove it I would be happy but I understand they will report what it is.

And if I have those on my reports will my score increase with on-time payments and having a couple of low CL (under $500) credit cards until 10% utilization?

Thank you again.

Just pay LVNV. That will dissapear. Then send GW letters to Fingerhut and ask for deletion. In the past a deletion snuck in their. Get util under 6%. Credit Line means nothing really. Its whats reported.

Re: Guide for rebuilding to 700 with damaged credit

GZG — Tue, 18 Oct 2022 23:37:46 GMT

@720orBust wrote:
And if I have those on my reports will my score increase with on-time payments and having a couple of low CL (under $500) credit cards until 10% utilization?

Paying off your debt, you should see reasonable score gains.

Getting three revolvers with one reporting a balance 1-5% will give an additional bonus on top of rebuilding positive payment history.

Once you resolve your baddies, consider discover secured, cap 1, mission lane, petal, nfcu secured for a third revolver.