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I need some serious guidance with my credit, please read.

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Anonymous
Not applicable

I need some serious guidance with my credit, please read.

Hello! This is my first forum post. I have lurked on myFico for years when looking for credit card qualifications and such but I decided that I need to make an account and seek out personal help. 

I really made a mess of my credit over the past decade. I got out of the military about 10 years ago and seemingly did everything I could to ruin my credit...like a bull running through a china shop. I sought out help from Lexington Law about a year or so ago, and although they helped a little I still can't qualify for the most basic credit card. My scores are all over the place... EX is 630, EQ is 535, and TU is 513. I'm using the Experian  Identityworks and credit monitoring to pull my FICO 8 scores.

I used a service called "Credit Boost" on the Experian  site a few days ago and it raised my EX by about 70 points. So I decided to try and apply for one of the cards they recommended....Cap One Platinum. I was denied. I have only had one real credit card in my life and one store card years ago. I had a Military Star card as well when I was in the service, but I made the bad decision of stopping payments when I got out. Like I said, I made plenty of mistakes when I was younger...and I'm just trying to fix them now but I don't know where to start.

I have a few medical bills that I am working on getting rid of (trying to get the VA to pay for them since it's service connected), there are a couple of doc-in-the-box bills I need to take care of as well. All of these are in collections by the way....I owe about $5-6k.

 

Is there any hope for me? What do I need to do? All I want is to be able to apply for financing on a smart phone or have a credit card like everyone else. I know I was irresponsible in the past, but I'm older now and ready for the responsibility. Thanks for reading.

11 REPLIES 11
Anonymous
Not applicable

Re: I need some serious guidance with my credit, please read.

If you are having trouble getting approved for anything, the Open Sky secured Visa requires no credit check and is pretty much a guarantee.  You'll need to develop positive payment history going forward.  You'll certainly need 1 active revolving account at the very least as you are taking a big scoring penalty for not having one open on your reports.

 

Once a revolving account starts reporting and you gain positive payment history, I feel you should try the Capital One and Discover prequals on a monthly basis and take anything they offer you including a secured card.  Ideally for the future, it is best if you have 3 cards for scoring purposes.  GL!

Message 2 of 12
Anonymous
Not applicable

Re: I need some serious guidance with my credit, please read.

I've really been hoping that I could repair my credit without using a secured card. But, nothing has worked for me yet lol.

 

Why Open Sky? Obviously I'm very new to the credit world Smiley Wink Thanks for replying

Message 3 of 12
Anonymous
Not applicable

Re: I need some serious guidance with my credit, please read.


@Anonymous wrote:

I've really been hoping that I could repair my credit without using a secured card. But, nothing has worked for me yet lol.

 

Why Open Sky? Obviously I'm very new to the credit world Smiley Wink Thanks for replying


It is not a "Vulture" card which means they do not prey on people with bad credit by charging them excessive fees, high APRs, and anything else they can throw in to make money off of your situation.  There are no hidden fees.  It does have an annual fee of $35 but that is a small price to pay for establishing a positive history.  Their current APR is less than 20% which I consider excellent for no history or not so great histories.  My scores are good and my highest APR is 25.24%

Message 4 of 12
mmajer4211
Regular Contributor

Re: I need some serious guidance with my credit, please read.


@Anonymous wrote:

Hello! This is my first forum post. I have lurked on myFico for years when looking for credit card qualifications and such but I decided that I need to make an account and seek out personal help. 

I really made a mess of my credit over the past decade. I got out of the military about 10 years ago and seemingly did everything I could to ruin my credit...like a bull running through a china shop. I sought out help from Lexington Law about a year or so ago, and although they helped a little I still can't qualify for the most basic credit card. My scores are all over the place... EX is 630, EQ is 535, and TU is 513. I'm using the Experian  Identityworks and credit monitoring to pull my FICO 8 scores.

I used a service called "Credit Boost" on the Experian  site a few days ago and it raised my EX by about 70 points. So I decided to try and apply for one of the cards they recommended....Cap One Platinum. I was denied. I have only had one real credit card in my life and one store card years ago. I had a Military Star card as well when I was in the service, but I made the bad decision of stopping payments when I got out. Like I said, I made plenty of mistakes when I was younger...and I'm just trying to fix them now but I don't know where to start.

I have a few medical bills that I am working on getting rid of (trying to get the VA to pay for them since it's service connected), there are a couple of doc-in-the-box bills I need to take care of as well. All of these are in collections by the way....I owe about $5-6k.

 

Is there any hope for me? What do I need to do? All I want is to be able to apply for financing on a smart phone or have a credit card like everyone else. I know I was irresponsible in the past, but I'm older now and ready for the responsibility. Thanks for reading.


I don't have a ton of advice as I am still new to this as well but I will tell you that there is hope. I started my rebuild on 1/4/19, just a couple months ago, and have made HUGE strides all because of the advice that comes from this site. You can see my starting scores and my current scores in my signature at the bottom. I started with worse scores than you and my collections were over double what you currently have. My point is there is absolutely hope and we are all here help. Hang in there and congrats on starting your rebuild

MASSIVE OVERHALL (48) MONTHS IN



Message 5 of 12
Anonymous
Not applicable

Re: I need some serious guidance with my credit, please read.

Thanks for the encouragement. I have a question though... how did you get your scores to jump 150+ points in a little over a year? Was that all from new credit and paying off your collections?

Message 6 of 12
mmajer4211
Regular Contributor

Re: I need some serious guidance with my credit, please read.


@Anonymous wrote:

Thanks for the encouragement. I have a question though... how did you get your scores to jump 150+ points in a little over a year? Was that all from new credit and paying off your collections?


I jumped it 150+ points in less than 3 months. Started my rebuild January 4th of THIS YEAR. My biggest thing was that I paid absolutely every collection, medical bill, whatever you can think of. I was lucky enough to have a ton of extra money at that point and decided to turn my credit around. It was right around $12,000. Luckily each one of the collections on my account were eligible for Pay For Delete which is as soon as you pay in full or settle with the collections they are removed from your report. The next biggest thing was sending Goodwill Letters to the credit card companies that were still reporting negative items on my report. A Goodwill Letter is just that, you send a letter to the company asking them kindly to remove negative items on your report. All of this guidance came from this site so use it for your benefit. If you list the negative items on your credit report here there are plenty of people that will guide you on how to approach them.

MASSIVE OVERHALL (48) MONTHS IN



Message 7 of 12
Anonymous
Not applicable

Re: I need some serious guidance with my credit, please read.

 


@mmajer4211 wrote:

@Anonymous wrote:

Thanks for the encouragement. I have a question though... how did you get your scores to jump 150+ points in a little over a year? Was that all from new credit and paying off your collections?


I jumped it 150+ points in less than 3 months. Started my rebuild January 4th of THIS YEAR. My biggest thing was that I paid absolutely every collection, medical bill, whatever you can think of. I was lucky enough to have a ton of extra money at that point and decided to turn my credit around. It was right around $12,000. Luckily each one of the collections on my account were eligible for Pay For Delete which is as soon as you pay in full or settle with the collections they are removed from your report. The next biggest thing was sending Goodwill Letters to the credit card companies that were still reporting negative items on my report. A Goodwill Letter is just that, you send a letter to the company asking them kindly to remove negative items on your report. All of this guidance came from this site so use it for your benefit. If you list the negative items on your credit report here there are plenty of people that will guide you on how to approach them.


Oops! I read the dates wrong...still waking up. 3 months huh? Wow.

I guess my first step is getting together money to pay off my collections. Maybe get a secured card at the same time. Once I make some headway I'll make a new post with my negative items. Thanks for your help!

(Finally figured out how to quote...sorry if the thread was confusing)

Message 8 of 12
CreditInspired
Community Leader
Super Contributor

Re: I need some serious guidance with my credit, please read.

Hi OP

So much is going on here, it’s difficult to discern what’s what. 

 

So, let’s do this first. Order all 3

of your reports free from www.annualcreditreport.com and go over them with a fine-tooth comb to identify all negatives. 

 

If there are things there older than 7 years, dispute them. If there is any incorrect info dispute it. 

 

If there are accurate collections, call and see if you can do “pay for delete.”

 

If that doesn’t work, try flooding creditors with goodwill letters. 

 

In order to go forward, you must clean up your credit report and this takes time, patience, and due diligence. Let me repeat that—time, patience, and due diligence. 

 

There’s a wide gap in your scores. Do you know why? If it’s due to inquiries, stop applying for CCs until you get your report cleaned up. 

 

Is there anyone who can make you an AU on their card to give you some history? They don’t need to give you a CC. 

 

GL2U


|| AmX Cash Magnet $40.5K || NFCU CashRewards $30K || Discover IT $24.7K || Macys $24.2K || NFCU CLOC $15K || NFCU Platinum $15K || CitiCostco $12.7K || Chase FU $12.7K || Apple Card $7K || BOA CashRewards $6K
Message 9 of 12
mmajer4211
Regular Contributor

Re: I need some serious guidance with my credit, please read.


@CreditInspired wrote:

Hi OP

So much is going on here, it’s difficult to discern what’s what. 

 

So, let’s do this first. Order all 3

of your reports free from www.annualcreditreport.com and go over them with a fine-tooth comb to identify all negatives. 

 

If there are things there older than 7 years, dispute them. If there is any incorrect info dispute it. 

 

If there are accurate collections, call and see if you can do “pay for delete.”

 

If that doesn’t work, try flooding creditors with goodwill letters. 

 

In order to go forward, you must clean up your credit report and this takes time, patience, and due diligence. Let me repeat that—time, patience, and due diligence. 

 

There’s a wide gap in your scores. Do you know why? If it’s due to inquiries, stop applying for CCs until you get your report cleaned up. 

 

Is there anyone who can make you an AU on their card to give you some history? They don’t need to give you a CC. 

 

GL2U


I saw that gap too but OP states they signed up for Experian Boost and jumped their score by 70 points. I'm assuming thats the difference in the scores.

MASSIVE OVERHALL (48) MONTHS IN



Message 10 of 12
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