Two years, still stuck in the low 600s

[Hockeypnc1]

Hi,

I am a long time reader but never have posted. Sorry if I don't do it right!

I am over 2 years past a CHP. 7 filing and almost immediate discharge (Oct. 16 and discharge less than 2 months after). I am struggling to recover though!

I kept a car loan from American Honda past the bankruptcy, but then re-financed with Capital One for a slightly lower payment. I still pay $322 a month for a 2014 Honda Accord with 101,000 miles on it that I got new in 2014 (originally a lease, turned into a purchase). I still owe $12,000 on it.

I burned American Express for about $12,000 and CitiBank for about $18,000. Also burned BankAmerica for $1,000 and Capital One for $500 and $1,000. I also burned a $300 secured US Bank card and an $800 Boston Store (dept store) and $200 Kohls card (dept store).

The recovery has been a slow and painful process. 

I was able to get a $1000 secured card from UW Credit Union (May 2017) and after a little over a year they allowed me to get my sec. deposit back and approve me for a $1,500 unsecured Visa, non-rewards card.

I was able to get an $1800 Discover IT card by using their prequalify tool. Recently they upped the limit to $2,200 without me asking.

I have a $1,000 "creditbuilder" loan from Guaranty Bank (which is now First Citizens Bank). I got this in Sept. of 17 and owe about $500 on it. It's a 5-year loan, but I want to pay it off in the next few months. 

I also have about $75,000 in student loans, which you can't burn in bankruptcy, unfortunately. They are in deferment right now, but those will come due soon.

I have multiple store cards that I got from the "shopping cart trick." All with 0 balances on them except one that was for a laptop that is nearly paid off (Overstock.com card)

My Discover Card is at about $700 balance right now, the UW Credit Union card at about $800.

I know everyone is going to say, to keep my cards below 30 percent and to pay them all down, but that just isn't possible with my pretty low income ($15 per hour) and bills like rent, cell phone, insurance, car payment ($322 per month).

Besides paying down these cards ever so slowly, is there anything I can do? Or am I just doomed with these 610 credit scores?? 

No card will touch me anymore because of my low score, lots of inquiries, public record present on file, and balances on my cards.

[Hockeypnc1]

Sorry my Discover IT card is at $1495 as of this writing. I was quite far off!

Sorry!

[csl1]

I sympathize with your income conundrum; it's hard to pay in full when your income is limited. But unfortunately, it really does seem that your high utilization is probably the culprit. Utilization is 30 to 35% of your credit score. ... And although 30% UTIL is recommended, it's even better if you're able to get your balances down between 8% and 10% if you really want to see your scores jump higher. Is there a way that you can bring in a little more income so that you can pay down your cards? Perhaps as an uber driver or in another part time job a couple of nights a week? 

I wish you the best, by the way. I've been there and I totally know how it is. Best wishes.

[Hockeypnc1]

I am a Lyft driver, but haven't done it in quite some time.

I also am a DoorDash food driver, but also haven't done it in quite some time.

I don't have that much free time with a 2nd shift job. 

[FireMedic1]

Really not much more you can do than just stop using the cards and get the debts under control. As the balances go down the score will go up. No more installment loans. You have a car loan and didnt really need another loan. So spend the new year paying down what you have and dont spend what you dont have. Once you see your scores go up it will give you more incentive to finish the goal. Happy New year!

[pizza1]

Will agree with @FireMedic1. May not be what you want to hear, but your cards are 50-70% util! Thats way too much! Fico hates that for starters, and you will get dinged for that. 

Sorry, but the only way to get better scores is to pay down your debt and pay it off. Once your debt is paid down, then let one card report a very small balance of less than 9%. YOu'll see big scores then. 

Dont head down that path again. 2 yrs out and already back in debt isnt a good thing at all. I understand your lower income makes it a little more challenging, but dont spend on anything except current needs.....utilites, rent, gas, insurance etc.. give yourself 6 months to see how much you can pay off, and go from there. I also think that if you were to get another cc, it would be too tempting for you to not use it. Your current cards are already over 50% now and you're barely making a dent in them.  Stick to a strict budget for 6 months, and then re-evaluate. 6 months in the whole scope of things really isnt that long. 

[Hockeypnc1]

Thank you for the replies.

I am working to pay off balances. I make small payments pretty much every day and always try to pay well over the minimum on my 2 major cards (the UW Credit Union Platinum and the Discover IT Card)

[mrsjr]

Have you also checked all of your credit reports for accuracy?  Any accounts that were included in bankruptcy could be disputed and removed.  All of my accounts included were removed and I was only left with the public record.  My score went us significantly after that.

[Hockeypnc1]

Those that were included in bankruptcy say:

"included in bankruptcy" and list a $0 balance.

How should I dispute them?

[pizza1]

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@Hockeypnc1 wrote:

Those that were included in bankruptcy say:

"included in bankruptcy" and list a $0 balance.

How should I dispute them?

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You shouldnt, as they are reporting correctly . 0/IIB