@DSBABC wrote:
Yea, what really put me over the edge of closing them was that I realized that CreditStrong (Austin Capital Bank) had only reported 1x since April (instead on monthly); and Kikoff didn't report to all 3 bureaus. To pay for a service, that isn't even performed, seemed a bit pointless --
I've never heard of those credit builder products you mentioned and hopefully they didn't charge you too much. To pay for something like that I think is pointless. It's like people who pay credit repair companies to do the same disputing that you can do yourself.
Sounds like you're on the right track. Lots of good info here. I've done well with mine post Ch 13 and will have clean reports within the next 12 months or so.
Good luck!
First, you need to get this derogatory removed if they cannot prove that you owe it!
That should be fairly easy provided that they don't have a judgement against you, however you'd likely know it if they did as it would show up in your credit reports. Start by writing the ex-landlord a letter to investigate the debt and to provide proof of the debt. If they don't respond or don't remove it, you could send a copy along with a letter to investigate with the CRAs. I'd include in that letter that the ex-landlord has not responded to a written request sent via US Mail - Certified Return Receipt Requested (RRR). Always use this service as it proves that the documents were sent and include a copy of the return receipt in your package. They have 30-days to investigate a request, however it's 45-days if you are disputing a line item on your free annual credit report(s). Call me old fashioned, but I find a nicely developed packet goes much further than requesting an investigation online!
Next up, you're banking with NFCU, an excellent choice, so use their services to your advantage!!! You can take out a "pledge loan" with them instead of using these secured loan services that many of us never heard of. The nRewards Card was smart, but ensure that you use it, pay it off regularly and they will eventually graduate you! It took me 13-months to graduate, so be patient. I got their "credit card trifecta" not long thereafter, maybe 18-months total to include the More Rewards AMEX and Platinum Visa cards. You'll likely be approved for a second, unsecured card right after graduating. Just DON'T apply for the Flagship Card as that will take some time! Back to the nRewards card, I paid mine off 2 or 3 times per month and tried to keep the utilization at any given time below 30%. I would strongly recommend putting a minimum of $1,000 down as your security deposit as it will show as much on your credit reports. Nobody but you and Navy Federal will know it's a secured card – maximize it!
As everyone is saying, it's all a waiting game, and that's very much true. You could get some more accounts strategically and though they will cost you more HPs, they also will show positive credit usage and aging. I'd try to show a variety, at least right now. Use what you have and this is the important part:
Keep your utilization as low as possible – meaning 7% or less is ideal, 10% is good, and under 30% is pretty much a must! You'll be amazed how much a couple hundred bucks showing as balances could swing your score at this juncture.
Another idea for a reputable loan is the Upgrade Card as it shows like a Personal Line of Credit (P-LOC). The interest is on the higher side, but it's an easy way to show that you could manage a P-LOC. Basically, this product works like a credit card for purchasing, but you pay it back as a loan as the end of the month balance is turned into equal monthly payments. They are VERY likely to ask for documentation, but are not hard to get, IMHO. As long as you're not self-employed the application process is not too bad.
Next up, I've been getting better-and-better cards for two years now, and I've used the card recommendations on Credit Karma to my favor. They were very accurate in my case! I would NOT use the recommendations from Experian as they are still offering me subpar cards! Capital One usually gives everyone their first "Unsecured Platinum Card" with a $300 limit, more if you're very lucky. Honestly, I wouldn't worry too much about the HPs if you're showing some strong growth as they too will drop off. The thing is to put MORE weight into those HPs if you expect to use credit to fund a major purchase such as a car loan or home mortgage.
The bottom line, IMHO, is to get that report cleaned spotlessly! It will be far easier to get new credit with it off of there. Based on what you said, I'd start the disputed in a "one-two combo" to ensure that you have the necessary backup to bring to the CRAs if it comes to it, and it likely will as they haven't replied back thus far. Use a strong letter, so start looking for quality templates to work with. Now, it's different though as you'll have a plan. In the meantime, take advantage of what NFCU offers as I mentioned above! Let everything else garden while waiting for that derogatory to be removed. Once removed, try for a couple unsecured cards based on reliable recommendations and let it all garden after that! My signature (below)has many of the credit products that I took advantage of while in a similar boat. Just try to avoid annual fees and the like whenever possible, personally $39 is even a stretch, but may be do-able. Feel free to DM me with any questions, but I may take a while to reply as I never know how I will feel from one day to the next. That's a long story all it's own though!
