Best way to rebuild credit and increase limits

Anonymous · ‎02-09-2016

Back in college i paid a lot of tuition on credit cards, and didn't pay them all back right away. I completely quit using credit for 7-8 years and now everything has been paid off or dropped off all credit reports. I've been making a lot of money and have been paying cash for everything so really don't have any established credit anymore. There's still a couple items on my reports ($51, $53, $350) that aren't mine and i've tried unsuccessfully to dispute, should i just pay those off? I got a secured credit card for $200 and have an auto lease with a cosigner, also am a signer on a couple low amount credit cards. I need to do whatever possible to ramp up my credit and get everything rebuilt. I 'm also willing to spend $20,000 or so this year in any fees needed to help rebuild my credit. I also have plenty of people willing to co-sign and do whatever I need to get assistance in this.

Should I max out this $200 credit card and pay it off multiple times per week?

Should I become a signer on other peoples credit cards with a high limit ($25,000+) to help establish credit?

Should I purchase multiple auto loans and other loans with collateral then pay them off in a few months?

any other suggestions?

CH-7-Mission-Accomplished · ‎02-09-2016

@Anonymous wrote:
Back in college i paid a lot of tuition on credit cards, and didn't pay them all back right away. I completely quit using credit for 7-8 years and now everything has been paid off or dropped off all credit reports. I've been making a lot of money and have been paying cash for everything so really don't have any established credit anymore. There's still a couple items on my reports ($51, $53, $350) that aren't mine and i've tried unsuccessfully to dispute, should i just pay those off? I got a secured credit card for $200 and have an auto lease with a cosigner, also am a signer on a couple low amount credit cards. I need to do whatever possible to ramp up my credit and get everything rebuilt. I 'm also willing to spend $20,000 or so this year in any fees needed to help rebuild my credit. I also have plenty of people willing to co-sign and do whatever I need to get assistance in this.

Should I max out this $200 credit card and pay it off multiple times per week?
Should I become a signer on other peoples credit cards with a high limit ($25,000+) to help establish credit?
Should I purchase multiple auto loans and other loans with collateral then pay them off in a few months?
any other suggestions?

Send me the 20K and I will tell you.

Anonymous · ‎02-09-2016

@Anonymous wrote:
Back in college i paid a lot of tuition on credit cards, and didn't pay them all back right away. I completely quit using credit for 7-8 years and now everything has been paid off or dropped off all credit reports. I've been making a lot of money and have been paying cash for everything so really don't have any established credit anymore. There's still a couple items on my reports ($51, $53, $350) that aren't mine and i've tried unsuccessfully to dispute, should i just pay those off? I got a secured credit card for $200 and have an auto lease with a cosigner, also am a signer on a couple low amount credit cards. I need to do whatever possible to ramp up my credit and get everything rebuilt. I 'm also willing to spend $20,000 or so this year in any fees needed to help rebuild my credit. I also have plenty of people willing to co-sign and do whatever I need to get assistance in this.

Should I max out this $200 credit card and pay it off multiple times per week? That is a good usage pattern.
Should I become a signer on other peoples credit cards with a high limit ($25,000+) to help establish credit? IMHO, no.
Should I purchase multiple auto loans and other loans with collateral then pay them off in a few months? No.
any other suggestions?

Use FCRA 605B (ID Theft provision) to get items that are not yours off of your reports. After 90 days of good usage on your secured card, apply for a couple of unsecured Capital One cards. Use them a lot, pay in full several times per month, and start requesting CLI's after the second statement. Keep asking every few days until you get it. You will also get an automatic increase at six months. From there on out ask for a CLI every six months.

Anonymous · ‎02-09-2016

@Anonymous wrote:
Back in college i paid a lot of tuition on credit cards, and didn't pay them all back right away. I completely quit using credit for 7-8 years and now everything has been paid off or dropped off all credit reports. I've been making a lot of money and have been paying cash for everything so really don't have any established credit anymore. There's still a couple items on my reports ($51, $53, $350) that aren't mine and i've tried unsuccessfully to dispute, should i just pay those off? I got a secured credit card for $200 and have an auto lease with a cosigner, also am a signer on a couple low amount credit cards. I need to do whatever possible to ramp up my credit and get everything rebuilt. I 'm also willing to spend $20,000 or so this year in any fees needed to help rebuild my credit. I also have plenty of people willing to co-sign and do whatever I need to get assistance in this.

Should I max out this $200 credit card and pay it off multiple times per week?
Should I become a signer on other peoples credit cards with a high limit ($25,000+) to help establish credit?
Should I purchase multiple auto loans and other loans with collateral then pay them off in a few months?
any other suggestions?

WOW! There are a couple of questions that need to be asked for anyone to address this with any certainty.

1. What are your true FICO scores? You can go through myFICO and for $30 a mnth get some very handy real time info on your scores and so forth or go to creditchecktotal.com and sign up for the $1-7day special then cancel within the 7 days and they will offer you a 50% reduction for monthly updates.

2. What do your real reports say? If you don't know go to annualcreditreport.com to get them for free and go over them with a fine toothed comb.

Check for any pre-approvals for credit

https://findmycard.capitalone.com/en/PageVersions/LandingPages/LP_ONE_V01.aspx?external_id=WWW_WR635_ZZZ_ONL-SE_ZZZGO_T_SEM2_ZZZZ_c_Zg_f7ecda28-52d9-49c9-8a48-d907a1d476c0_53854865832_17461

https://www.discovercard.com/application/fmo?execution=e1s1

https://creditcards.chase.com/prequalified-offers

You could go the Credit Union route and get a "Shared Secure" acct where you deposit money for an installment loan, get the money and use it to get a secured CC and you will kill 2 birds with one deposit. I'm not sure which ones are the best for this but there are a couple of tricks that can be used to make this work better for you and others can speak to that or you can search for CU's here in some of the catagories and get a good picture.

There is more info about all of these options available but we would need to get a better pictuer of your history and true current score position.

Hope this helps.

Blessings

Anonymous · ‎02-09-2016

Equifax = 593, TU=616, Experian=633

I've been using my annual creditreport.com and credit karma to resolve disputes and got some of them removed and paid.

I had about $50,000 in student loans that we're in deferrment (says a lot of missing payments) but that's all been paid off in December.

I have 6 collections, $52 ATT, $53 ATT, Animal $315 which aren't mine or somthing. There's also a medical collections for $1006 and 124 that i paid sometime last year which is still on there.

I have a $1000 jared dept store card (never touched), a $200 cap1 secured card and a $350 authorized user card. There are about 6 other old accounts (2003 and 2004) that were opened then closed in there ($0 balance)

Then i have my auto lease which is a joint lease ($500 a month, ending Oct).

This spring I'm planning on buying a new motorcycle ($20,000), and a new car (30,000-70,000) would love to get loans for these but am planning on paying cash for them.

Anonymous · ‎02-09-2016

@Anonymous wrote:
Equifax = 593, TU=616, Experian=633

I've been using my annual creditreport.com and credit karma to resolve disputes and got some of them removed and paid.

I had about $50,000 in student loans that we're in deferrment (says a lot of missing payments) but that's all been paid off in December.

I have 6 collections, $52 ATT, $53 ATT, Animal $315 which aren't mine or somthing. There's also a medical collections for $1006 and 124 that i paid sometime last year which is still on there.

I have a $1000 jared dept store card (never touched), a $200 cap1 secured card and a $350 authorized user card. There are about 6 other old accounts (2003 and 2004) that were opened then closed in there ($0 balance)

Then i have my auto lease which is a joint lease ($500 a month, ending Oct).

This spring I'm planning on buying a new motorcycle ($20,000), and a new car (30,000-70,000) would love to get loans for these but am planning on paying cash for them.

Try the Cap1 site. You should get the QS1 $ Platinum options right off the bat but you could get the regular QS as well. App for all that come up and you should get them. With your scores you should get between $500 and $1000 Cl on each. Use them and pay them often, after teh 2nd statement you should PC the Platinum to a QS, after the 3mnth period on both cards start hitting the LUV button or go on chat and ask fpr CLI's. They are very liberal with CLI's for those who are usiong them and paying them regularly. After the 6mth statement you CAN (you don't have to) combine them both into the QS or a Venture if you prefer Miles Rewards over the Cash of the QS adn you will hvae the 1 CC with a combined balance of the 2 CC's. The QS1 card somes with 1.5% cash back on all purchases and has a $39AF. Once you combine them you will have a noAF card or you can simply PC the QS1 to a Venture and you would have the QS and Venture.

Your Secured Cap1 card will not PC to another type so you'll end up closing it anyway. Keep it for now if you want to. and put it in a drawer for a few months till the other ones achieve what you want.

It is said that you need 3 CC's and 1 installlment loan to maximize your scoring and there are many ways to achieve that but this is a start and once you've received the Cap1 cards come back with some wquestions here for more info.

Anonymous · ‎02-09-2016

ill definately give it a try soon. I just got the cap1 secured card activated yesterday and maxed it out, ill pay off and do that a couple times this month, then will try.

Anonymous · ‎03-02-2016

Thank you for all your help. I did just get a Capital One Platinum for $1000 yesterday and plan to use it. My scores are currently EQ580 TU603 EX614. They dropped a lot when i maxxed out that secured card (2/19), even though i paid it off a week later (way before the min payment date). I dont think they've updated yet to reflect they were paid off.

going forward how should i use my cards to maximize the effect on my credit, I have a $200 Secured and a $1000 normal cap1 card, should i just use 50% of each max multiple times per month then pay them off?

Any other tips going forward?

Anonymous · ‎03-02-2016

@Anonymous wrote:
Thank you for all your help. I did just get a Capital One Platinum for $1000 yesterday and plan to use it. My scores are currently EQ580 TU603 EX614. They dropped a lot when i maxxed out that secured card (2/19), even though i paid it off a week later (way before the min payment date). I dont think they've updated yet to reflect they were paid off.

going forward how should i use my cards to maximize the effect on my credit, I have a $200 Secured and a $1000 normal cap1 card, should i just use 50% of each max multiple times per month then pay them off?

Any other tips going forward?

When are you closing dates for your cards?

I always have a small balance reporting even though my QS1 gets close to it's limit every month. My cards close on the 20th and report on the 23rd.
I always Pay down my balance on the 19th and leave maybe $50-$100 hovering to show usage.