@Anonymous wrote:
@myfavoritehue wrote:Rebuilding. I have a $1,200 credit limit that was charged off, which I am disputing now. Other than that, I do not have any revolving accounts, as of now other than the car loan, which should post when my scores update next month.
My scores are TU - 531, EX - 522, EQ - 524.
Paying this off ASAP is going to be the biggest gain you're going to get short-term.
Pay that off. Wait until it updates on your report. Then, get two secured cards. Your bank, Capital One, or Discover are good options. Keep utilization under 30% (under 10% is best).
Consider a "self-lender loan" from your bank or a bank close to you. It's not absolutely needed looking long term, but can be a mid-term boost if you're willing to trade the cost of interest/fees for having a more robust credit profile.
Wait six to twelve months. Apply for a 3rd card that may work for you.
From there, you should be doing well. Ask for limit increases every six months until the cards get to a reasonable point.
You mentioned credit for your business. I'd recommend checking the business credit board. You absolutely need to get the idea of "six months from now" out of your head. It takes years and is a slow start when your personal credit is currently in the 500s. Don't sweat it, though. Just keep going one month at a time and you'll be 700+ in less time than you may think.
+1 on everything except the self lender suggestion. OP has 7 student loans, no need to add another installment to the mix.
To sum what is said in all the posts -
1. Pay off any baddies. You wanna have as clean as of a report as you can have.
2. Get secured cards. App for NFCU since you already are a member.
3. Time and patience. (I think this has been mentioned many times so no need to delve too much into it again).
4. I have seen many other credit boards, from FT to Creditboards and more, they have knowledge and data, but not all of it is correct, as with any forum. Best thing to do is read and read more. DoC is a good source of info and this forum have been the most resourceful overall to me.
5. Ask questions, regardless what they are. This is how we learn.
1. Pay off any baddies. You wanna have as clean as of a report as you can have.
2. Get secured cards. App for NFCU since you already are a member.
3. Time and patience. (I think this has been mentioned many times so no need to delve too much into it again).
4. I have seen many other credit boards, from FT to Creditboards and more, they have knowledge and data, but not all of it is correct, as with any forum. Best thing to do is read and read more. DoC is a good source of info and this forum have been the most resourceful overall to me.
5. Ask questions, regardless what they are. This is how we learn.
My thoughts:
- In my opinion, $600 spread across three secured cards ($200 x 3) is far wiser, cheaper and more beneficial than any of the tradelines listed in the first post. As alluded to earlier, credit limits do not matter. Utilization does. Because you do not currently have any revolvoing debt, there is ZERO benefit of a $1K, $5K or even $15K tradeline. get low-limit cards and keep the utilization low.
- Many people with less than 3 cards see a score boost when going from under three cards to three in total. So, unlike some of the other posts, I'd recommend trying to get three cards cards now. Going from zero revolving tradelines to >0 (ideally 3) and I'd expect you'll see a nice score bump in a very short period of time (2-3 months)
- Any money put toward a secured card is YOURS. You get it back when the card unsecures or you close the account. On the other hand, the money you pay to these "pay-to-play" tradelines in fees or for product is gone. So, at the end of the day you would be paying more money for a temporary solution that is decidely worse.
- It's counterproductive to get these other tradelines. The only goal they serve is to improve your score so that you can get better credit options down the road. However, the better options are available to you NOW. So... why not just get them now (via the secured route if necessary)? Start building those bank relationships today. Also, another benefit is that you don't have these non-beneficial tradelines adversely impacting your AAoA and AoYA
Hey Keverone,
I was in your same position last year and through hard work and persistence, I'm now on the correct path to building a solid business profile.
The most important thing for you to do is write down a 1yr -2yr plan. Anything that you do now, may affect what you want to do in the future.
The most important thing that I've found that help was building some type of history.. You may as well build a business history that can grow with you.
Two items you should focus on is the Wells fargo Business secured card as well as the BBVA business rewards secured card. In the future, the wells fargo card can unsecure and the BBVA can help you qualify for the non secured version. As someone pointed it out, it's not about the limits but the utilization.
In the future you dont want "To many new accounts within 12 months" stopping you from getting something you can really use. Opening 4-5 of those accounts can hurt your future plans.
