I'm 21 years old and got my first CC at around 18, which was a capital one card with a limit of 300$. Of course like a typical teenager I decided that credit wasn't that important and completely eventually maxed out the credit card and pretty much ignored my credit ever sense.
After recently realizing the importance of credit I decided to dedicate my time to rebuilding my own.
I was basing my CC applications on my Credit Karma scores, which were 28-68 pts higher than my Fico 8 scores.
My current scores (don't laugh!) - are experian - 512 / transunion - 481 - / and equifax - 467
Equifax has a collection reported on it that neither of the others have. I also have student loans that I defaulted on, which are currently in the process of being rehabilitated.
Collections : Williams and fudge - 1,800 $ (Owed to an old college)
Portfolio Recovery - 345$ (Definitely payable but i've read that they are pretty set on not doing PFD's)
To help with my rebuild process i'm currently in the Fingerhut fresh start program, (which i'm tempted to pay in full, but some recommened to pay as planned to keep an installment loan reporting?)
I have a secured capital one card with a limit of 200$ (Put down 99$). As well as a Victoria Secret store card with a limit of 350$.
I was thinking of also getting a secured discover card, but after lurking on the forums for a couple of weeks i've seen the advice of only needing 3 open accounts, which I have. But i'm not sure if the store cards really count in that figure.
Any advice for me? Am I pretty much on track or should I add some other efforts to my rebuilding?Thanks for reading in advanced. 
You need 3 revolving cards to drive Fico in a rebuild. If Fingerhut is actually reporting as instalment then you need another revolver and you want bankcards more than storecards. I would also work on getting the derogs paid off even if you dont get a PFD. You can always try GW removal once they are taken care of.
@tryingtogrow21wrote:I'm 21 years old and got my first CC at around 18, which was a capital one card with a limit of 300$. Of course like a typical teenager I decided that credit wasn't that important and completely eventually maxed out the credit card and pretty much ignored my credit ever sense.
After recently realizing the importance of credit I decided to dedicate my time to rebuilding my own.
I was basing my CC applications on my Credit Karma scores, which were 28-68 pts higher than my Fico 8 scores.
My current scores (don't laugh!) - are experian - 512 / transunion - 481 - / and equifax - 467
Equifax has a collection reported on it that neither of the others have. I also have student loans that I defaulted on, which are currently in the process of being rehabilitated.
Collections : Williams and fudge - 1,800 $ (Owed to an old college)
Portfolio Recovery - 345$ (Definitely payable but i've read that they are pretty set on not doing PFD's)
To help with my rebuild process i'm currently in the Fingerhut fresh start program, (which i'm tempted to pay in full, but some recommened to pay as planned to keep an installment loan reporting?)
I have a secured capital one card with a limit of 200$ (Put down 99$). As well as a Victoria Secret store card with a limit of 350$.
I was thinking of also getting a secured discover card, but after lurking on the forums for a couple of weeks i've seen the advice of only needing 3 open accounts, which I have. But i'm not sure if the store cards really count in that figure.
Any advice for me? Am I pretty much on track or should I add some other efforts to my rebuilding?Thanks for reading in advanced.
Ideally taking care of the collections will make your scores soar, and better chances of obtain bank issued credit cards. It does appear that Williams and Fudge (from what I've read in some forum topics) are workable with PFD. I would not count out Portfolio just yet. If you use the search bar at the top of the forums and put Portfolio deletion success, but use the drop down menu and change from board to community, it will bring up some forum topics that person(s) have had success. YMMV.
Ideally, bank cards like Capital One, Discover is preferred over store cards, with the hopes they eventually will graduate you to unsecured.
The only other suggestion in your rebuild is to always pay on time, before due date, and if a balance, make it low utilization. Creditors get spooked with someone carrying high utilization at statement cut (what gets reported), you don't want a 200 line of credit reporting 190 each and every month for a balance. I'd concentrate on usuage of cards for the payment history, small purchases that can be paid off, especially with VS, like a pair of panties every 2-3 months from them to keep the card in active status, but low enough that you can PIF before statement cut.
I'm not real sure Fingerhut is considered installment, it is possible, as it may be viewed as a installment sales contract. Just as your credit does rebound and grow, best to get a self lender loan or try with your local bank or CU to be bona fide installment reporting.
Just be patient, its a journey, and credit takes a good 1, definitely 2 years to adjust up well, to get the credit history, payment history, letting the inquiries age off. So many just shopping cart trick store cards with low lines of credit that honestly they may use once a year.
Look past the 2 year period, you want good scores and bank relations in that credit mix of revolving and installment. You have a student loan now, so that figures in the credit mix now. So keep them open for now and use them. I'd rather have in 2 years, 3 bank issued cards that have given me a CLIs with responsible use and an installment, than someone who has 15 $300 bed bath and beyond, TJ maxx, etc.
You are brilliant to being to rebuIld now. Credit Karma is good for notifications, looking at your report. Just ignore their scores and recommendations. Points are no where close to your FICO scores and the recommendations are paid advertising. Great job rehabbing your Loans. That will benefit you. You should also look at fixing those collections. Once they’re done, they’ll eventually fade away and stop impacting your scores. I think once you get your collections addressed, you scores will begin to grow. I haven’t had a secured Cap One card before, but you want to ensure no more than $60 is reported at statement time. Make sure you know and meet the requirements for graduation. When I was on Cap One’s step program, I would use my card, but make multiple payments to pay it down to less than 30% at statement time. I wouldn’t get another card right now. I know it’s frustrating, but you are laying down a new foundation. The stronger it becomes, more will open up to you. Continue working on those baddies and give everythig time. I was able to increase my scores 50 points in 3 months. Read, research, and learn here.
