Building credit - quick!

[Santi78342]

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@Anonymous wrote:
I have one collection account that is reporting PIF on Equifax and closed. I have attempted to dispute for removal, but no luck. I have 3 collection accounts on TU/EXP that are also closed and PIF. these were all PIF within the last year. I had more than this but I was able to get them removed completely.

I only have the one credit card - Amazon. It is in my mothers name and she added me as the signer. I am the only one who uses this.

I haven't applied for a secured on my own because I wasn't sure if that would harm my score, I'm trying to get the hang of this credit thing!

I have student loans also, which have been consolidate into one and it's in good standing. The others are reporting as closed and PIF but I guess it's the PHS that's killing me. I wasn't paying on them as I should've. Young and dumb.

I was hoping to reach the 640 mark around July/Aug , am I being unrealistic?! Please say no , lol 😊😫

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Have you tried to "goodwill" those collection accounts to maybe get them removed? 

What's the balance reporting on the Amazon card? If it's more than $40, you will see a score bump if you pay it below $40 (10% of the credit line).

Secured cards, or any CC, will ding your score in the short term but will help tremendously in the long run. I would highly recommend you try to get 3 cards of your own by going the routes described above. 

640 may be a stretch but I hope you get there! Good luck & welcome to MyFICO! 

[Pway]

Yes having three tradelines for maximum scoring will help your scores.

[Anonymous]

Yes. I had a capital one secured card for 18 months and feel that point I was able to get others. Perhaps I should have left credit one aND milestone credit card alone and waited until I got better offers. So as your credit gets better please do not jump on an offer just because it has your name on it because better ones will come Soon.

[Anonymous]

I have tried to goodwill all my collections still showing , no luck. I will try again.

I keep my CC balance at 0. I use it and pay it off every month. I was told to do it this way by a lot of people early on but I'm starting to think that isn't true.

My mom also has another CC with a higher credit limit that she just got and will add me as this signer. I will be the only one using it. Would doing this be equivalent to getting others in my name? I guess I'm just trying to avoid getting any pulls on my credit.

Also , when I'm on my fico it looks like EQ and TU report every week. So , would I need to use my card and pay it weekly or let the balance build and just pay at EOM as I have been?

[jamesdwi]

Authorized user cards may help your score some, but under manual review they will not be considered, you need your own cards if you hope to get a morgage, banks don't care if you make all the payments in the end you are not responsible for the debt. so not considered. 

[takeshi74]

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@Anonymous wrote:
Building credit - quick!

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No such thing.  Building and rebuilding are long, slow processes.  Be in the right mindset and don't expect to rely on shortcuts.

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@Anonymous wrote:
I have one Amazon CC that I've been using , as an authorized signer, since Decemberand that has helped a little. The limit is $400. The score hasn't gone up dramatically as I had hoped.

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Take a look at the standard scoring factors and relative weights for most:

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

Payment History is the biggest slice.,  Building positive payment history on the accounts you mention is a must but if you have any dergos they are killing your payment history.  That's why we always recommend addressing them first.  Hit the Rebuilding subforum and carefully research to see what you can do about your derogs.  In some cases you can make things worse if you're not careful so, again, don't expect a quick fix and read up, form a plan and ask questions before taking action.

Amounts Owed is the second biggest slice and your revolving utilization falls under this.

Most other factors just take time and reponsible use to build.  Being an AU can help if the tradeline is in good shape.  However, being AU can hurt if the TL is in poor shape.  You have to build your own TL's and cannot rely on being an AU.

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@Anonymous wrote:
I have one collection account that is reporting PIF on Equifax and closed. I have attempted to dispute for removal, but no luck.

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You have no basis for dispute.  It's valid.  All you can do at this ponit is request a goodwill removal and they are under no obligation to do so.

Generally, if you haven't paid you want to aim for a PFD as you want the derog removed entirely.

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@Anonymous wrote:
I haven't applied for a secured on my own because I wasn't sure if that would harm my score, I'm trying to get the hang of this credit thing!

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Not any more than any other new account.  If a hard pull is required then you incur the hit from the HP.  All new accounts will reduce your AAoA but you will need to open some new accounts (at a pace applicable to your credit profile) to build your credit.

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@Anonymous wrote:
I was hoping to reach the 640 mark around July/Aug , am I being unrealistic?! Please say no , lol 😊😫

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If you're relying on FICO 8 scores keep in mind that most mortgage lenders don't use that scoring model.

Also keep in mind that general advice is no new credit 6 months to 1 year prior to a mortgage.  Based on that I'd say your timeline isn't realistic if you're looking to buy a house in that timeframe.

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@Anonymous wrote:
I keep my CC balance at 0. I use it and pay it off every month. I was told to do it this way by a lot of people early on but I'm starting to think that isn't true.

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It's really the reported balance that matters.  If you're paying it off after it reports then it's not reporting a 0 balance.  Most cards report on statement date but you'd need to confirm for your card.  Additionally, you don't want 0 balances reporting for all cards.  When applying you want only one balance reporting at 10% or less.  Generally, though just keep it under 30% but pay the statement balance in full by the due date to avoid interest and going into debt.

All that said, if you have derogs on your reports they tend to have a major impact and tend to hold your scores down.  This is why we recommend addressing them asa top priority.  Going forward you must have 100% payment history.

[Anonymous]

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@Anonymous wrote:
I have tried to goodwill all my collections still showing , no luck. I will try again.

I keep my CC balance at 0. I use it and pay it off every month. I was told to do it this way by a lot of people early on but I'm starting to think that isn't true.

My mom also has another CC with a higher credit limit that she just got and will add me as this signer. I will be the only one using it. Would doing this be equivalent to getting others in my name? I guess I'm just trying to avoid getting any pulls on my credit.

Also , when I'm on my fico it looks like EQ and TU report every week. So , would I need to use my card and pay it weekly or let the balance build and just pay at EOM as I have been?

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What do you mean by keeping the balance at zero?

There are two important dates when it comes to credit cards: the statement date and the due date. The statement date is the date that the statement is cut. The statement is the document that tells you how much you owe, by when, and what the minimum payment is. The due date is when that payment is due.

Most of the time, paying in full means that you had a balance on the statement date (i.e., the company says you owe them something), and you paid the entire amounut before the due date. This keeps interest from accruing with most cards. However, if you manually pay the entire amount before the statement cuts, it will cut stating that you don't owe any money. In your case, this is probably bad. You always want at least one card to cut the statement showing a balance. Otherwise, it looks like you're not using your credit and you can take a scoring hit. 

[Anonymous]

Great info, I'm loving it. Thanks so much everybody!

So, I'll try again to get the collections removed. I have an open auto loan also that is always on time. That's helping me some. I have one that's closed and shows as paid as agreed , no lates.

I have gotten many per approvals for a CapOne card in the mail. I'm going to get one and and maybe another and see where they get me in a few months! I didn't realize being an authorized signer wouldn't effect the score as much. Didn't realize I wasn't "responsible" for the debt.

Any other suggestions? I know it won't be a quick fix but I need to maximize my results. I'm ready to get out into my own home!

[Anonymous]

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@Anonymous wrote:
Hi guys!

I just started trying to rebuild my credit about a year ago. I am trying to purchase my first home! So far I have gone from a 496 to 589 (TU / EXP) and a 593 (EQ). Of course , you have to be at a certain level to even qualify for a home mortgage loan. I have come a long way and very passionate about rebuilding and keeping my credit in great standing. Everyone dreams of great credit , right?! I have one Amazon CC that I've been using , as an authorized signer, since Decemberand that has helped a little. The limit is $400. The score hasn't gone up dramatically as I had hoped.

Any suggestions?!! Should I get another CC with a higher limit?

Help!

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Well the question is, why are your scores so low?  What kind of negatives do your have on your report?  With your scores, I'm assuming that you have a BK on file?  Who did you burn for a BK or CO?

If you can, I'd look into a BoA secured card, those graduate to unsecured cards.  If not, Capital One is usually friendly with rebuilders.

[Anonymous]

I believe it's because of my student loan history. I do not have any BK or CO.