I am in the works to repair my credit. As of now, my score is 522, which I know sucks and total, I have about 3,500 in debt in on credit reports, not counting my tuition, which I have deferred payments while I straighten out my credit.
My apartment lease is up next April, my plan is to hopefully start loooking for a home to buy. If my score is not where I want it to be by then (in the 700s), then I will renew my lease for 6 more months while I heal the wounds on my report.
I should have the 3,500K paid off by next year. there is one large account that I'm paying in montly installments and will be done with in March, and the 3 small balances paid off by the end of the year.
I have shot myself in the foot recently and applied for too many credit cards at once and my score went from 544 to where it is now, so I've definitely learned my lesson of never apply for too many cards at once. My intentions were to get a secured credit card so that I can also start increasing my credit score because I know paying debts alone will not help me. I applied for one and I'm waiting to hear back from them, so hear's hoping someone will "take a chance" on me.
My questions to you all are:
1. Does my plan seem feasible? Are there any gaps that I'm missing?
2. For those of who you are in the same boat as I and scores have improved, how long did it take and what steps did you all take to repair your credit.
3. When banks look at my credit report and they see debts that went to collections, but are paid off, how will that affect the chances of me obtaining a home loan at a good rate.
4. If I'm denied for this final secured card, how long should I wait to apply for another card? I don't want to reduce my score even further. Can anyone suggest any good credit cards for credit repair?
Any other input is greatly appreciated!
Thank you all so much for your time in reading and responding to my post!
Sleepyhead (and I am quite sleepy right now!)
