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Help! Fix credit

Yynattirb_
New Visitor

Help! Fix credit

I'm trying really hard to fix my credit to hopefully buy a house but of course I have credit issues. 
1. discover card that's max out haven't made a payment 

2. car loan that I'm sometimes late 

3. retail cc that's max out stop making paynents 

4. I do have some low balance collections 

** I have a capital one card I use 10% pay every month on time , never missed a payment 

***bank personal loan I pay every month on time never missed a payment 

My FICO score 581 . I'm barely trying to understand credit, I know it's bad because no one will refinance me on my car loan. 
****My question is where should I start ? 

Message 1 of 3
2 REPLIES 2
ImTheDevil
Community Leader
Senior Contributor

Re: Help! Fix credit

Steps to follow:

 

1 - put the cards away and don't use them anymore

2 - how old is the Discover card? Get a payment to them ASAP, as large as possible but at the minimum 13-14% of your balance to get below the maxed out threshold and stay below it after interest is added

3 - get a payment to the retail card, same way as Discover, before it gets charged off and/or closed

4 - keep up payments on the loan and CapOne (don't use CapOne either)

5 - list all accounts you have in this format: creditor/balance/limit/status (on time, 30 days late, charged off, etc)/month and year it was opened, so we can see if any can be more easily deleted than others. This is for good accounts and bad.

6 - finances before FICOs - ignore scoring for the moment and focus on fixing the issues. The scores will follow.



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Message 2 of 3
CreditInspired
Community Leader
Super Contributor

Re: Help! Fix credit


@Yynattirb_ wrote:

I'm trying really hard to fix my credit to hopefully buy a house but of course I have credit issues. 
1. discover card that's max out haven't made a payment


When was last payment? Why did you stop making payments? Call Disco and ask about a repayment plan to get back on track. 

2. car loan that I'm sometimes late 

 

If you have income, get into the mindset of paying bills on time. If your car is repossessed, that's another ding to your credit which will include the deficiency--difference in the amount you owe and what lender can sell car for. 

3. retail cc that's max out stop making paynents 

 

see 1 above

 

4. I do have some low balance collections 

** I have a capital one card I use 10% pay every month on time , never missed a payment 

***bank personal loan I pay every month on time never missed a payment 

My FICO score 581 . I'm barely trying to understand credit, I know it's bad because no one will refinance me on my car loan. 
****My question is where should I start ? 


The first question is--do you still have income coming in? If yes, why arent you paying at least min pymts? If no, call each CCC and ask about any hardship programs they offer to get back on track. 


Next, the answers are in your questions, which I've bolded above. No one will give you credit because  you've stopped paying back the monies you owe. And since you are thinking about a home purchase, keep in mind that a lender wants to see a clean credit profile a minimum of 12 months prior to mortgage application. 

As ImTheDevil said, stop worrying about scores and start off by paying your debt. This alone will increase your scores. Make paying minimum due a habit every single month! This accounts for 35% of your credit score. 

 

OP, it's doable, but it takes diligence, time, patience and hard work to rebuild one's credit profile. The good news is it can be done. 

Also, I suggest that you peruse the Rebuilding forum. It's a godsend of info that would be extremely helpful to you because there are members who have been there, done that, who can and will guide you in the right direction. Here is the link https://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/bd-p/rebuildingcredit

 

Matter-of-fact, I'll see if your post can be moved there for more exposure. 

GL2U. 


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DEC 2018: EX 777, TU 783, EQ 799

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