First off I would try to get the PFD on those collections and if thats not possible just settle them so they can age back in time and quit keeping your Fico depressed with monthly updates. Second you need one more open revolver to drive a rebuild at minimum. I would also make sure only one card reports a small amount (less than 9% of its CL) to the CRAs each month to get your max possible Fico from revolvers. As that BK ages back in time your Fico will gain points but until it is totally gone its the elephant in the room. Welcome to the board.
http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Q-amp-A-Examples-and-PFD-Success-Stories/...
http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Example-Letter/td-p/4519
@Anonymous wrote:Thanks for your response. What is PFD? Do you think it's worth the pull to apply for another secured card at this time? Or would paying off my current cards have the safe effect?
PFD is pay for delete. Doing both will boost your Fico but for now get your balance paid first.
Who are the collections with???
Well the first thing I would attack is the collections, try like heck to get them deleted, if not just pay them off so they are not reporting each month, let them age so it stops depressing your scores...
1 - Call National Credit Systems and Account Resolution Corporation and offer a pay for delete. Per prior threads on this board, they will both do it. If they say they can't put it in writing, that is probably true, especially for NCS (they are known for this), but they will follow through on a verbal agreement. If you want to negotiate, I'd start out offering about 40% of what you owe, but with the amounts you're dealing with, you should be prepared to pay 100% if necessary. It is by far worth that to get them removed from your credit.
2 - Pay down your debts on the secured card and on Wayfair - for credit scoring purposes, under 9% utilization is best and over 30% is scary. Over 50% is VERY scary. You don't need to wait to get your bill in the mail. You can figure out what day of the month your statement cuts, and pay about three days before that, or you can make multiple payments per month in most cases. All that matters for your credit score is your balance at the time your monthly statement cuts.
3 - Your other loans (mortgage and student loans) seem fine/positive to me.
4 - I don't know much about bankruptcy but that is probably something you'll just have to wait out. It has less effect over time. You should be aware of which lenders, if any, your bankruptcy burned; for example, if you burned Amex, you probably will be waiting a while to be able to get another Amex cards. Different lenders are more or less sensitive to this.
5 - I think you'd benefit from either a car loan or a Self Lender loan. If you don't need, or can't afford, a car right now, look up Self Lender. It mimics a car loan (secured personal loan) for credit purposes. It's not a loan where you actually get money. You pay each month, and at the end, you get back most of what you paid in. You lose some due to interest. It's like the worst savings account in the world, but meanwhile, it reports positive each month.
6 - After those steps, you should be in a pretty good position to start building vs merely fixing. Check prequalification sites for cards (Discover, Citi, Amex etc). If you aren't getting many prequalifications, you probably will at that point be able to get a Discover secured card. Discover secured is the king of secured cards, because it gives cash back the same as the unsecured version, and it can unsecure after 7 statements. But you also will probably be on the edge of being able to get some unsecured non-predatory cards, such as Amex Delta Blue or Cap One QuickSilver. If you shop much on Amazon, get an Amazon card (the Chase Visa if you're feeling brave, or else, the Sync Store Card like I have).
7 - Let things build for a while and you should be in pretty good shape; again, I don't know much about bankruptcy, but I would think with that as the only thing on your record and the positive stuff, you will very soon be in the realm of good credit.
Good luck!
