Can't get a break

[Anonymous]

I recently pulled my fico score for equifax 525, I know not good at all. I have 3 student loans showing 1 60 day late payment in 07/12 on each. I hadn't even been notified of payments starting until 08/12 and they put me on a minimum payment plan. A CO for Cap 1 back in '08 or '09. Collection on a phone/internet bill also 07/12 and a tax lien which is actually child support showing an incorrect balance of over 3k but I only owe 900. I recently applied for a walmart cc just to see what happened, got the 7-10 day notice.Also just applied for a secured card with bank of america and got a "reviewing application...decision within 30 days" message. I don't know how to rebuild my credit if no one is willing to give me a chance. Any suggestions on what to do, where to start and if there is any hope at all with such a low score? The fico model tells me my debt is too high. Should I only be concerned with paying down the student loans and forget about applying for credit right now? Also, since I'm paying the student loans on time will it help my credit scores at all and if so how long will it take to show a score increase. I've been paying on time for 5 months now.

Thanks for any help given.

[Anonymous]

30-60 day lates usually only have a negative impact on your scores for the first few years. After 1 year of on time payments you will see your scores rebound partially, and after two years they probably have no impact in your scores at all. If you have 90 day lates and higher those have a much heavier impact on your scores and last much longer on your reports 5-7 years as far as credit scoring is concerned.

Most likely you will only be able to obtain a secured credit card. But do not just keep randomly applying with any company. The more you keep applying the more your score will drop from INQ.  Focus on rebuilder secured cards, like Cap One, and or other suggestions others offer. Usually the secured and sometimes not secured credit cards with very high AF will approve you as the AF is so high they take very limited risk if you default if any risk at all, and they still make money on you.

Just a reminder you, credit rebuilding takes time. You need patience and persistence. 

[Anonymous]

Fix some of the baddies on your credit file/ report, then gw and pfd. Go to your local PNC branch and ask for a secured cc application. Also ask other local banks and CU's

[Anonymous]

But remember this tad bit of advice, you'll be okay, and this will take time. You have a supportive community on here, most will bend over backwards to help you. Also we've all been there, you're not alone, and don't be afraid to ask any questions =). Goodluck

[Anonymous]

Thanks JM-AM!

I have an old cap 1 card that is in charge off status just updated dec 2012 but original charge off is '09 I think, so when does this actually fall off if they are updating every month? Also, is it possible to get another cap 1 secured card if I already have a regular card in charge off?

Again, thanks for any help.

[Anonymous]

Thanks pineappledaydreams,

I actually did apply for a secured card with my bank i have been banking with for years, i'm hoping the message "reviewing..will notify in 30 days" is just for verification of some sort. I can't imagine being turned down for a secured card...

[Anonymous]

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@Anonymous wrote:

Thanks JM-AM!

I have an old cap 1 card that is in charge off status just updated dec 2012 but original charge off is '09 I think, so when does this actually fall off if they are updating every month? Also, is it possible to get another cap 1 secured card if I already have a regular card in charge off?

Again, thanks for any help.

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If you have a charge off with Cap One you would have to do your homework to see how friendly they are with delinquent charge off accounts. You can probably search this forum in the search feature on top of forums to see how others faired In the same type of situation. For example just type Cap One in the search feature in rebuilding and start reading.

While having a relationship with a bank and or CU sure does help when your credit is in the rebuilding stages, there are no guarantees for approval even with a secured card.

Im sure First Premier will issue you a card.. But you for sure do not want to carry any type of balance with them their interest rates are through the roof. They charge $45 processing fee and then a $75 annual feel I believe.  Your credit limit wont be much as low as $150 and probably up to $300 to start off. Just make sure you 

pay them in full and do not accrue interest, I think their interest rates are like 59.9%-79.9% something like that if my memory serves me correctly. 

While these numbers are high and no one wants to pay those fees, I just look at it that its our own fault for letting our credit get into the shape its in, and now we have to pay our dues to fix it.

[Anonymous]

Following up on earlier post... I went to the bank to see what was up with the "review...notify in 30 days.." they actually approved it, that message was just a formality. Hopefully from this point on I can have a success story like so many I have read on here. Are there any tips to getting the most out of this secured card? I only want to make minimum purchases to make sure I can pay in full every month but in not knowing how they will report what is a "safe" balance to carry? Also, how long does it normally take for an increase in scores? Thanks for any replies!

[doc101]

Be patient and you will see your score rise. If you are looking for a rebuilder card, try Cap One. Don't be afraid to seek advice. There are tons of information to be found from helpful people out here. Good luck and keep moving forward

[Shogun]

Congrats on the new secured card.  Garden it well and keep working on the baddies.