Credit Journey and need some advice

failur3byh3art · ‎09-04-2019

So I just wanted to share a few things. First off, I'm pretty embarassed at my credit profile but I know it's not the absolute worst. I'm in the process of rebuilding my credit but with heavy weight. I neglected to post in the past about my active baddies. Currently I have 5 collections and about 4 COs if that means anything. My credit was tarnished due to my family taking advantage of me (though ultimately it's my fault for saying yes and was my decision to allow it). With all the baddies I owe over 9k in debt which can be managed in 5 months if I absolutely use my income on that direct issue. However, I'm a college student and trying to find oportunity because I'd like to persue a career in Computer Engineering. I know good things will happen with patience, discipline, and hard work. Patience especially. I will say this though.. Bank of America and American express have not sent my accounts into collections and have been emailing and mailing me to settle the account. However, I feel if I PIF without settling for less, it would look better and I can avoid being blacklisted. So far the only company to blacklist me is Barclay.

Now... last year I decided to start my college path after many years and I knew I needed to get back into the credit world. I had a credit score of 495TU according to Credit Karma so I had no knowledge of what my fico scores were at the time. I was constantly denied any chance in the past (obviously from all the baddies) but somehow I ended up being approved for a Cap1 platinum secured. I put 500$ on the card and with time my scores rose 40 points in 3 months. I then ended up applying for Express and was approved for 500$ which shocked me to all heck. The following month I applied for a discover it secured and was approved, thus putting 500 on the card. I ended up going on somewhat of a spree and started being approved for lower cards, but none the less approved. My income per month ranges from 2.5k - 3K depending on the amount of OT I put in (along side being a full time student). I have not attempted to pay off my collection accounts (and keep in mind I do intend on paying them off) and surprisingly some of these cards have approved me. In total I have 9 cards with a total combined CL of 5k. I keep my ratio really low and noticed it has helped with my scores.

Current Scores:
Exp: 588
EQ: 584
TU:614

I do believe my scores rise a lot slower due to the collections in my account because it still shows me as a risk. My latest approval with a Mission Lane card 2 weeks ago with a 750SL. I was surprisingly not given an annual fee because I spoke to a rep and had it waived. This is what brings me to ask, how is it possible to be approved when I have so many negatives on my credit profile? Is it simply the payment history that's carrying my overall score? I never pay interest and carry minimal balances on very few cards and have had 0 issues. It may seem like I apply based on a "spree" but the cards I have, minus the secured cards, are cards I do use via store cards where I shop (Express, Gamestop, Kohls). The rest give me rewards and the one card I'm intending on chopping soon is the Cap 1 plat secured (800CL). Not that I plan on applying for anymore cards but, what should I start doing in terms of here on out. I'm going to try and work on letters for BoA but I don't know if they truly accept goodwill letters even with a PIF for delete. I've heard some success stories and some failures. In about 3 months I plan on applying for a car loan as I was preapproved for a cap1 auto loan for 6.8%apr (however I let the preapproval expire). I figured if my credit profile futher improves, even with the baddies, I could possibly get a better rate. A car is something I would need to commute to school but I'm trying to figure out what I should do first. I apologize for the "essay". I've had quite the journey but you know the feeling when you have tons of negatives and you somehow apply for a card and magically get approved and don't understand why? That's how I feel.

Remedios · ‎09-05-2019

Your post is a bit hard to read, so maybe add some more paragraphs for others who may try to help you

You got some approvals, but they are for store cards. They have lower UW standard in general. There is nothing wrong with store cards, as long as it has good rewards system and you shop there enough to get some benefits from it.

If it's once or twice a year, you wasted an app

What should you do?

That's really simple. You need to address your collections and COs. If I understood you correctly, you make up to $3k per month, so setting up some kind of payment arrangements should not be too hard

With four unpaid COs and four unpaid collections, your scores will stay right around where they are now, no matter how many cards you add because they are updating.

Depending on which collection agencies you're dealing with PFD might be possible. Once collections have been paid, updates will stop.

If they are deleted, even better

COs, same applies. Depending on who you burned and for how much, I'd be concerned about possibility of litigation if you're still within SOL

Are the collections you have resultant from COs or totally separate?

Bottom line, if you want score improvement, you'll have to start paying, not adding more score cards with toy limits.

failur3byh3art · ‎09-06-2019

Sorry, I guess I did leave out quite a bit in my post. Some of the CO's did end up being sold to a collections agency. One is Portfolio Recovery and the other is Midland Funding. Most of the collections are small and the largest being 1k even. I've thought about calling BoA and Amex to set up monthly payments with them to be in somewhat good standing. Those 2 are the companies that have not gone to collections yet, but I was told that once your account goes into collections, they pretty much blacklist you. So I feel I still have a chance, and if I pay the whole amount owed instead of settling for 50% off the original amount, it would be in better standing. I would like to be given another chance in the future with BoA and AMEX especially. In terms of the SOL, I live in California and I believe it's 5 years here. I have 2 more years but don't intend on stretching it that far. Like I said, I do intend on fixing my relationship with AMEX and BoA. By November I was thinking of paying the amount in full for BoA since it's only 1300. They sent me a letter to settle the amount owed for 900 but again, paying it off completely would give me a better chance at not being blacklisted right? I would assume there will be a grace period where I would be on a softblack list just to rebuild credit and allow them to think about it. AMEX sent me a letter awhile back in 2017 stating if I paid the whole amount they would offer me a second chance account. That letter offer expired but I wonder if they would consider it if I sprung it on them

Anonymous · ‎09-06-2019

List any current accounts, CL, %APR, any lates or other derogs?

List closed accounts, any lates? If account was CO, list charge off amounts, DoFD

List collections, collection agency, amount owed, DoFD

Too hard to read this info in paragraph form. Make a list with the above info, not a paragraph.

FireMedic1 · ‎09-06-2019

@failur3byh3art wrote:
Sorry, I guess I did leave out quite a bit in my post. Some of the CO's did end up being sold to a collections agency. One is Portfolio Recovery and the other is Midland Funding. Most of the collections are small and the largest being 1k even. I've thought about calling BoA and Amex to set up monthly payments with them to be in somewhat good standing. Those 2 are the companies that have not gone to collections yet, but I was told that once your account goes into collections, they pretty much blacklist you. So I feel I still have a chance, and if I pay the whole amount owed instead of settling for 50% off the original amount, it would be in better standing. I would like to be given another chance in the future with BoA and AMEX especially. In terms of the SOL, I live in California and I believe it's 5 years here. I have 2 more years but don't intend on stretching it that far. Like I said, I do intend on fixing my relationship with AMEX and BoA. By November I was thinking of paying the amount in full for BoA since it's only 1300. They sent me a letter to settle the amount owed for 900 but again, paying it off completely would give me a better chance at not being blacklisted right? I would assume there will be a grace period where I would be on a softblack list just to rebuild credit and allow them to think about it. AMEX sent me a letter awhile back in 2017 stating if I paid the whole amount they would offer me a second chance account. That letter offer expired but I wonder if they would consider it if I sprung it on them

If Portfolio and Midland are over 2 yrs old. They will delete the accounts off your credit report if you settle or PIF. Contact them. Or sign in on their website and see what the settlement offer is. And go from there to try and pay a lower amount if they accept it. So that helps. BoA will be forver to get back in after full payoff. AMEX will work with you to PIF and you may (If its still active) be able to get the Optima card to prove yourself again. Go after AMEX more than BoA. But work on both at the same time. But BoA is toast for a long time for now. Good Luck!