540 score and wanting to buy a house, car and qualify for Amex in the next twelve months-need advise

[Anonymous]

Experian Start date         10.13.18             10.21.2018              11.7.2018          11.9.2018                       

Credit Score                       550                         530                     532                         540                 

             Creditor                             Account              Amount              Opened                           

Convergent Outsourcing               Sprint                $107.00               2/1/2016           Removed 10/21 .18

State Collection Service               Hospital Bill       $566.00              12/1/2015         Removed 11.12.18        

Tek-Collect                                   School bill             $285.00              1/1/2017           Removed 11.12.18        

Trident Asset Mgmt                     Verizon                $233.00               2/1/2015           Removed 10.21.18

Wells Fargo Bank revolving         Wells Fargo        $182.00              3/1/2013           Confirmed 11.12.18

Jefferson Capital Systems            Verizon              $2,862.00              6/1/2018       Confirmed 11.9.2018

Transword System                         Electric bill          $388.00              8/1/2015           Confirmed 10.25.18     

I’ve got four objectives:

*To have good credit and to never have bad credit again

*To buy a car next year(SUV @40k)

*To buy a new house

*And my credit card dream-An American express card

Earlier this year(six months ago) I applied for and received a Capitol One Platinum secured card. I used $1000,000 as a deposit and thus that was my credit line. My credit score suffered however because I didn’t realize until two months ago to pay off my charges before the next billing statement. So I am sensitive to credit utilization now-so sensitive that everytime I charge I literally pay it off that day(I pay cash at the bank, call Cap 1 and have it applied right away). I only leave $20-$30 on each billing statement-way under 10% utilization.

BTW-Capitol One, with no notification, increased my credit line by $300. So after six months my credit line is now $1300.

Now the Experian report above shows whats been happening with that report. I’ve got four things deleted and three were confirmed and remain. I need advice on the best way to get them removed. I understand to not call the collection agency directly. The Wells Fargo account was a secured credit card. I cancelled it but I guess I owed money in the end.

Also what can I do to increase my score? I really need to get to 650 quickly. I really want to buy a house, a car and get an Amex next year(the Amex is just a personal thing). Should I get another secured card? I’ve read on this board that Capitol One will graduate the secured to a Quicksilver with a history of good payments. And given they just increased my credit line to $1300 I am hoping they will do that.

Of note-my Transunion and Equifax scores are similar. However Equifax for example confirmed the school bill above that Experian deleted. How can one credit company confirm and another delete?

I make 90K a year and cant get credit for anything with is ridiculous and entirely my fault. Any and all advise would be appreciated and I will be sure to alert everyone to my progress so others can benefit

[Anonymous]

Few corrections and notes from my posts above:

*My Capitol one deposit was $1,000.00

*All of the deletes occurred as a result of challenging them on Experians website. 

[dynamicvb]

I guess you got the ones removed by a dispute. Keep in mind that if they are valid debts, then they may come back. Either with this lender or another collection agency. You need to try and negotiate pay for deletes where possible to get them settled and gone for good. I do recognize some of the names on your list form others posts, so search around and see what others have been able to accomplish.

If you can't get a PFD, then paying is always better than nothing. That way they stop reporting monthly and dinging you each month. Eventually, they will start to age off.

When you pull your scores and you get the list of what is hurting your credit, what is the first item on the list? That is what is hurting you the most. If its too many accounts not in good standing, then these chargeoffs are what is holding you back the most.  

It won't hurt to get some other tradelines reporting positively. They can only help, but until you get some baddies gone you may not see a lot of progress in a score improvement. You did not mention an installment loan, if you don't have one of those open, then you will get hit there on credit mix.

[Anonymous]

ok - you have several goals - and they may NOT all coincide with one another and may be a bit ambitious to get all in a year - just so you know.

First you have to get a score up enough to get the loans, either mortgage or auto, as well as AMEX (I got Blue Everyday Card at a 664 which is the low end for them and I think they pull TU).

Mortgage lenders do not want to see any applications for at least 6 months prior to applying for a mortgage - so if you want to buy a house in December 2019 - you cannot apply for ANYTHING after late May 2019.   Also - you need to watch your DTI on mortgage - if you have high credit card payments, collections, car payment, etc - and they add up to more than about 45% - give or take a % -  of income - you won't qualify) That means you really only have 6 months to raise your scores, the car, and the AMEX.  

You need to work on PFD (Pay for Delete) on the collections - see if you pay them off if they will delete.   In the grand scheme for a mortgage - you HAVE to pay these and show they were paid in order to clear mortgage underwriting.  I will say that the majority of mortgage lenders don't want to see an unpaid collection out there - paid is better than not for manual review in underwriting.   PFD is best!

A self secured loan through a credit union could be a good installment loan for you to get.   Otherwise you need to work on getting 3 cards - with ONE reporting a small balance (See AZEO method). 

You might be able to get a car loan now, but tough with scores where they are - and the interest would kill you.    I'd hold off on the car as long as possible if you can.   I'd even say if you have the scores - go for the mortgage first and get the car loan later....but that's my opinion.

Best of luck!

[Anonymous]

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I did have them removed by dispute. So perhaps you are write in saying they will come back. I do not have any type of installment loans at all. Mainly because I do not qualify for any. And from reading other posts it seems pay for delete is difficult to obtain from collection agencies.

[Anonymous]

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So are you saying that no matter what I need to pay off the collections in order to buy a house? If thats the case I need to get started on paying them. And as I said to the earlier poster I have read that pay for deletes are very difficult to obtain. 

Are you saying I need to get three secured credit cards? What others would you suggest other than my Capitol One Platinum?

The car is not a priority and it can wait. The house is the priority for me. 

I cant qualify for any installement loans. Any suggestions?

Thank you to everyone who is responding.

[Anonymous]

https://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Jefferson-Capital-PFD-success/td-p/5252254

Check out this thread - it looks like they negotiated with Jefferson for a delete.

If you search the other collection agencies on this board you might find Transworld as well.

Wells Fargo is notoriously difficult - but for mortgage purposes I'd work at getting it paid.

[Anonymous]

For an installment loan try a self-secured loan at a credit union.   I didn't have to go this route - but to me it feels like a secured credit card - you make a deposit and then borrow against it.    I'm sure someone else can explain it better.

Credit cards - if you can't get unsecured go secured.  Credit Unions are good - Discover Card has one that graduates to unsecured, or maybe Capital One. 

Yes - Mortgages want collections paid - even if its hanging out there - Paid looks better to the underwriter than unpaid.   Contacting and asking for PFD can be difficult - but not impossible.   

Jefferson - I sent you a link to someone else who was able to do it - you can ask them how.

Wells - that one is tough - You may end up paying it and then trying desparately (again tough with them) for a GW deletion.

Transworld - that looks like a Utility - maybe contact the utility and see if you pay them if they will call it back from collections - I did do that on an old Direct TV bill and that was the easiest one I had to take care of!

Mind you - most of my baddies collections were cleared a couple of years ago...some things may have changed, but the procedures are out there.   Some companies have gotten better about PFD since it helps give someone an incentive to pay.  

[Anonymous]

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Yes if anyone has more info about the secured loan please chime in. I've got the Capitol One card already so i will apply for the Discover. I need a third option..

The Wells is a small amount so I will just pay it.

Transword is a utility bill so I will just call them.

[Anonymous]

Are you getting car loans with your local services? And what documents they require if they give you a loan? I mean, i'm looking for one as well, but in my place in you have only local paydayloansouthdakota.com that not willing to works with them, but that's the only service you can trust to. Others will take almost every property proving document and ig you miss even one day in payments your car is towed to a blocked parking and then to auction house. That's really sucks, but laws here are totally on a company side in almost every situation.