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23 & me (and my mess)

Ross1998
New Visitor

23 & me (and my mess)

Hi, I've been on this forum off and on stalking since about mid-2016 when I was trying to help my parents recover with their credit and they couldn't really navigate forums well and I took a strong liking to this site and the info it contained. Since then, I've pretty much gone through a lot of difficulties and now have far less than stellar credit. I'm 23 years old, and was hoping someone here could offer some advice about what you would in my situation. 

 

Collections - Burned acccounts

 

- Discover | 2017-2018                      | $2875 

- Target Synchrony | 2017-2018       | $320

- Care Credit | 2017 - 2018                | $2250

- Walmart Synchrony | 2017 - 2018 | $575

- Capital One Journey | 2017-2019  | $600

- FingerHut | 2017 - 2019                  | $450 

- WDServices Dental | 2018-2020    | $2750 

- Verizion | 2018-2020                       | $750

- Citi Card (Secured) | 2020-2020    |  $0 - secured deposit paid out, paid in full but I never got a negative remark from this. 

 

Collections Reporting 
6 accounts
$7,764.00
 

Current Accounts

 

Capital One (Secured) | $300 | Opened 2/2021 - Good Standing

Capital One Unsecured Platnium | $300 | Opened 2 months ago

FingerHut FreshStart | $28/ $3/month installment loan for the next 8 months then it graduates to a $300-500 Unsecured revolving line. Hasn't reported yet.

 

I currenly have a paid off FingerHut installment loan that's still reporting $0 paid in full, satisfatory etc. All my reports list good credit mix since it mentions an installment loan. I'm not sure if that's good enough to ignore the following or not. 

- ??? CreditStrong Save 1000 Installment Loan - 10 years - $15/month - $1000 return at the end, $800 cost of interest over the 10 years. I was thinking about opening this later today or tomorrow since the best time to open it was 5 years ago, next best time is today. Have no foreseeable personal or auto loans coming up within 4 years so this looks to be my only choice for a installment loan in my mix to help? Would it even help with my derogs?

 

Current Scores & Utlization FicoScore8 

Experian 531

Transunion 528

Equifax 549

 

AAoA 5 Months

98% Util across my two cap ones, I submitted a pay bringing one down to $0 and the secured card down to $25 balance so like 8.8%? usage. These will report in about 2-3 weeks. 

 
Reasons & Explanation
 
Started a job when I turned 18, thought I would be able to handle a few credit cards since I had been trying to learn as much as I could through the years on here. By 19 I had around a 670 score and was doing pretty well for myself I thought with decently high CLs on a few lines. Was then kicked out (I came out), lost access to a car I was using for my job, began relying on my CCs, even just the CareCredit one at Raleys (?) for basic neccesities. Tried my best to keep things, most of it defaulted after about 6 months. Got back on my feet and in early 2020 I once again lost my main source of income and basic mental well being after COVID lockdowns were in place and my place of work was shut down and has since re-opened which lead me to now.
 
Suprisingly Cap. One was nice enough to extend another hand to me earlier this year after I left them hanging before after a small recon. discussion with an agent explaining why I'm in a better spot now and hopefully can mend relations. Fingerhut too. Now I'm looking into CreditRight or a similar loan, I don't have enough money on hand (3k) for an SSL loan so that isn't something I can strongly consider right now. I burned a lot of the easy-to-get companies too so I'm really in a hole that is a constant source of anxiety. 
 
I've been thinking strongly about paying down the collections, but sometimes I feel like putting even 2-3k towards them still won't do much in the long run since it's over 7k and it's still going to have the same impact.
 
Thank you for reading this, I appreciate it. If you have any questions, please ask and I will try to answer to the best of my ability. Just looking to fix my wrongs now. 
 

 

 

 

 

Message 1 of 20
19 REPLIES 19
OmarGB9
Community Leader
Super Contributor

Re: 23 & me (and my mess)

I would strongly advise NOT doing that Credit Strong loan, reason being: you have way too many negatives to be worrying about credit mix right now. Any potential point boosts would be negated by all the chargeoffs/collections. Moreover, $800 interest on a $1000 loan is A LOT of money thrown away...

 

You could be putting those $15/mo towards a savings account to avoid a devastating situation like this again. I'm not saying any of it was your fault by any means. I'm simply saying it's always good to have a safety net with at least 3 months of monthly bills/salary saved up in case of emergencies. This is of course easier said than done, but any amount you can put away monthly helps.

 

 

Now, you say you have 6 collection accounts totaling $7,764. Are these true collections, or are you combining charged off accounts with collection accounts? Are those burned accounts you listed the original accounts? As in, are they still showing a balance with the original creditor on your credit reports?


Last App: 05/30/2021
Capital One Auto Refinance Loan

Currently rebuilding as of 04/11/2019.

Starting FICO 8 Scores:




Current FICO 8 scores:


Message 2 of 20
Ross1998
New Visitor

Re: 23 & me (and my mess)

Imgur album 

 

Hi, I linked what experian.com is showing for my balances and accounts. I'm not sure which is which, I think most are charged off. 

Message 3 of 20
OmarGB9
Community Leader
Super Contributor

Re: 23 & me (and my mess)

Link is broken.


Last App: 05/30/2021
Capital One Auto Refinance Loan

Currently rebuilding as of 04/11/2019.

Starting FICO 8 Scores:




Current FICO 8 scores:


Message 4 of 20
Ross1998
New Visitor

Re: 23 & me (and my mess)

https://imgur.com/a/AQvyyxF Smiley Sad think that'll work 

Message 5 of 20
satio
Frequent Contributor

Re: 23 & me (and my mess)

Utilization includes the accounts that are closed so paying off the open accounts will help your overall utilization but not bring it to 8% based on the remaining balances on the closed accounts.

 

7k is alot of money to those with limited income but certainly something that you can overcome. 

 

It would seem that the majority if not all of your closed accounts seem to remain with the original creditor. And given their age you may very well be in a position to settle for less than the full amounts on each of the accounts.

 

You are in the right place to ask questions and get answers. The membership and real world experience you will find in this forum group is well equipped to help you in your credit recovery journey.

 

There are several questions but I will start with what discretionary income do you have each month that could be applied to your debts?

 

And do you have any available time each month that might be applied to a second job or income stream on short or longer term basis to help you achieve your goal?

 



Message 6 of 20
OmarGB9
Community Leader
Super Contributor

Re: 23 & me (and my mess)


@Ross1998 wrote:

https://imgur.com/a/AQvyyxF Smiley Sad think that'll work 


Yea that works. But it appears as though you owe more than that $7.7k in collections. You have 6 collections AND 2 charge offs. If you pay those 2 charge offs, you may see some score boosts, though not much. But it WILL help your utilization so it won't be skewed since charge offs count as maxed accounts and hurt your overall utilization.

 

@satioactually, it appears most of their accounts AREN'T with the OC. In fact, most of them (6) are with CAs now. Only 2 are still with the OC.


Last App: 05/30/2021
Capital One Auto Refinance Loan

Currently rebuilding as of 04/11/2019.

Starting FICO 8 Scores:




Current FICO 8 scores:


Message 7 of 20
Ross1998
New Visitor

Re: 23 & me (and my mess)

 


@satio wrote:

Utilization includes the accounts that are closed so paying off the open accounts will help your overall utilization but not bring it to 8% based on the remaining balances on the closed accounts.

 

7k is alot of money to those with limited income but certainly something that you can overcome. 

 

It would seem that the majority if not all of your closed accounts seem to remain with the original creditor. And given their age you may very well be in a position to settle for less than the full amounts on each of the accounts.

 

You are in the right place to ask questions and get answers. The membership and real world experience you will find in this forum group is well equipped to help you in your credit recovery journey.

 

There are several questions but I will start with what discretionary income do you have each month that could be applied to your debts?

 

And do you have any available time each month that might be applied to a second job or income stream on short or longer term basis to help you achieve your goal?

 


Going forward, I'll have about $125~ a month at most to spare for these issues. I'm juggling about 30 hours a week + full course in college currently so I'm not able to access that much or get another job. I graduate in about 2.5 years, so I'm hoping to figure something out before then to get a lot of it cleared up. I've received a few letters offering like 50% off or 75% off some of the collections but I was going to ask here if I should pay them just off that or try to see what their options of PFD are since a paid collection resets it or something making it just as damaging? I'm not sure,, thank you

Message 8 of 20
Ross1998
New Visitor

Re: 23 & me (and my mess)


@OmarGB9 wrote:

@Ross1998 wrote:

https://imgur.com/a/AQvyyxF Smiley Sad think that'll work 


Yea that works. But it appears as though you owe more than that $7.7k in collections. You have 6 collections AND 2 charge offs. If you pay those 2 charge offs, you may see some score boosts, though not much. But it WILL help your utilization so it won't be skewed since charge offs count as maxed accounts and hurt your overall utilization.

 

@satioactually, it appears most of their accounts AREN'T with the OC. In fact, most of them (6) are with CAs now. Only 2 are still with the OC.


I see, guessing it's better it's with the CA if I'm looking for a lower settlement amount? Discover I've paid about $600~ on since the default but none of it ever reflected on my credit. It was under threat of lawsuit - i got served - paid about $600 then got a letter a few months later saying it was charged off and nothing since

Message 9 of 20
HowDoesThisAllWork
Frequent Contributor

Re: 23 & me (and my mess)

@Ross1998 

 

Good morning (at least here where I am it is "Morning").  And welcome to the forum.  We have all been in tough spots before.  I commend you for having the courage to come to this forum and to put all of your details out there.  No one here will judge you (at least, they better not!) and everyone here will help you (they had better!).

 

I am going to answer in a couple of replies as each will be a bit on the longer side (whoda thunk - from me?  LOL).

 

I would humbly suggest that you worry about the biggest issues first and deal with the 'secondary things' later.  So, skip the idea of the loan in order to improve your credit mix.  As has been suggested by others, your credit mix is - in my opinion - the least of your concerns at this point in time.

 

I would suggest this:

 

1.  Take care of the six collections accounts.  Start with the smallest one.  Knock that one out.  Move on to the second one.  Knock that one out.  Move on to the third one.  Rinse and repeat.  Until you have all of them gone.  Build a little confidence.  Get some "instant gratification".  See some progress.  If you are the type of person for whom this is important, then by all means....DO IT!

 

2.  Attack the Charge Offs.  Actually, you have three.

 

One of them - Webbank/Fingerhut - is a collections account with Jefferson Capital (for $717).  Once that specific Collections Account is handled, my best educated guess is, then Jefferson Capital hands this back over to Webbank and the Charge Off goes back into effect.  However, this is my best guess.  I do not know if Jefferson Capital is acting as an agent for Webbank, attempting to collect a debt on their behalf ---OR--- if Webbank has sold the debt to Jefferson Capital and Jefferson Capital is now the owner of said debt.  For that specific Collections Account | Charge Off I would seek clairfcation (contact Jefferson Capital for that....They should be able to answer that question).

 

Please find below the listing of Collections Accounts and Charge Off Accounts that I see as per your Experian credit report:

 

6 Collection Accounts
======================

1. Collection Agency is "HP Sears"
Original Creditor is "Western Dental Services"
Debt: $3,747
Updated: October 1, 2021


2. Collection Agency is "Jefferson Capital Systems"
Original Creditor is "Verizon Wireless"
Debt: $767
Updated: October 2, 2021


3. Collection Agency is "Portfolio Recovery Association"
Original Creditor is "Capital One"
Debt: $656
Updated: September 21, 2021


4. Collection Agency is "Calvary Portfolio Services"
Original Creditor is "Synchrony Bank"
Debt: $1,406
Updated: September 1, 2021


5. Collection Agency is "Jefferson Capital Systems"
Original Creditor is "Fingerhut Direct Marketing"
Debt: $717
Updated: October 9, 2021


6. Collection Agency is "Calvary Portfolio Services"
Original Creditor is "Synchrony Bank"
Debt: $472
Updated: September 1, 2021

 

3 Charge Offs
=============

1. Discover Financial Services
$2,868
Roughly four years ago???

 

 

2. TD Bank/Target
$479
Roughly four years ago???


3. Webbank/Fingerhut
which is likely the 'Collection Account' with Jefferson Capital for $717

 

FICO8 Scores as of 2021 JULY 21:


FICO Auto 2/4/5 Scores as of 2021 JULY 21:


FICO Bankcard 2/4/5 Scores as of 2021 JULY 21:


FICO Mortgage 2/4/5 Scores as of 2021 JULY 21:


Starting Score: Exp 699
Current Score: Exp 699
Goal Score: Exp 750


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