@Anonymous wrote:On the medical collection the balance is $600. Its not that i cannot pay it off, its more that it will be listed as a "Paid Collection" which doesnt do much good. i m aware of many other boards that help in deletion of paid collections. My medical collection is not exactly a "paid collection" just yet.
On medical collections, the date of service will be Sept 05/ 2010. Sept 2014 makes it four years. just how long will it be before it really starts affecting my scores. I m so brand new to this, i m confused.
Yes KOHL's is pretty new and a revolving account, it sure helps in determining Avg Age of Account. That will indeed be my first ever revolving account. beginning may 2014.
Sounds like TIME is my enemy here. My temptation to AppSpree is forever growing knowing fully well 611 isnt really enough, however, i have very little in ways or raising that score without actually applying for a CC; unless ofcourse i want another secure card and wait.
The collection will report for 7.5 years from the date of the original missed payment with the OC, unless it is a court judgement (appearing in the Public Records section), in which case it will report for exactly 7 years from the date of the judgement. It will significantly degrade your FICO score for the entire time that it is on your credit reports.
The SOL has nothing to do with credit reporting. This just means that the CA can no longer sue you for the amount owed.
Lenders look at more than your FICO score when issuing new credit. Although paying the collection may not increase your FICO score, it will improve your prospective risk status in the eyes of the lender who will note that you have no unpaid debts. It is also much easier to request goodwill removal of a paid collection.
If you choose to ignore the collection, you could try things like the shopping cart trick to get another store card or even get a secured card. But with an upaid collection and a low FICO score, I don't think that you will be approved for any unsecured cards that you will want to keep for very long. Even with just the Kohls card, however, if you can use this card, pay on time, and keep utilization low, your scores will increase. Unlike removing a baddie, ageing a new account is not instant and may take 6 months to a year of good payment history before you start to see the benefits.
EX:694 TU:744 EQ:777
A subprime Cap1 is quite possible. So is a Wal-Mart card.
For many of the better prime cards, I would shoot for around 680 range, but higher will get better terms and credit limits.
The plan you outlined will work.
Some quick notes though:
- That medical collection will probably not be hard to get removed if paid or even settled. This will also have the greatest possible effect on your credit. It should be a high priority.
- Not all secured cards pull chexsystems. In fact, most pull your credit report but have more lenient underwriting criteria since they are secured. Some, such as SDFCU, don't pull your credit at all.
- If you want to try for more store cards, try the shopping cart trick (at stores you actually shop at), since you will take no inquiries
- It will be a good credit practice to keep utilization low and only purchase what you can pay in full by the due date each month. If you are using the cards often, you may also need to make a payment before the statement date. This will prevent your score from dropping drastically every month due to high balances reporting (it will go right back up the next month if you report low that month, but you don't want to freak out any current creditors by having maxed out cards and a FICO that is dropping in the 500 range).
- Rebuilding does take time, but you can do it. There are many members here, including myself, that have had success in getting the credit that they wanted even after charge offs and collections.
@Anonymous wrote:have been browsing lately, noticed a lot of people here doing app spree with medical collection accounts.I m tempted. My EQ & TU are on freezing as of July 1, 2014.
My best FICO score is 611 with EX (as of 6/30/2014; before the zero balance on credit cards). I have OpenSky (Capital Bank) $250 Secure Credit Card with one year of on time payments and as of 7/4/2014 balance is $0. the renew date is 7/14/2014 and AF= $50.Is it worth it.
I have a $600 medical collection account whose 4 years SOL ends in Sept 2014. I just got the $300 KOHL's approved last month, paid in full and zero balance. (first month Reported).
I have two Recent inquiries 1) KOHLs (5/25/2014) and 2) Reliant (6/14/14) a utility company along with Cap1(6/2013) and Two Bank of america (10/12).
Given that i want to AppSpree only EX and with the recent score of 611 with med acct, will i be approved for a VISA/MasterCard/Amex or wait till 4 years of medical account is out. ? After reading here, the cards i have come to believe pulls EX only are
Amex BCE/ Delta Gold Skymiles/ Costco True Earnings Card
FNBO Omaha (Platinum Edition Visa)
CitiAdvantage (masterCard)
Sam's Club (MasterCard) not sure if EX is what it pulls
or
Should i end up with another Secure Card with a higher limit than $250 andb wait till that secure card has 6 more months of online payments.
If you're looking for an unsecured card, might I recommend Credit One. Their whole purpose is to help you rebuild credit and while they have a crappy annual fee, they did just that for me. I've had the card for about 2.5 years now and was just approved for Amex, Discover, Chase, etc the other day with 5k credit limits plus and I'm about to close my Credit One. For me, it served it's purpose in getting me to where I am now and it's just up from here!
Good luck!
You may have a shot at the Quicksilver One, but I would not go on an app spree with scores that low (no offense). I'd rather see you not waste a bunch of HPs on cards you really don't have a shot at right now. Try a PFD on that medical collection. People in the rebuilding forum would be a good start.
