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Digging out of the Credit Slums- On the right track?

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Anonymous
Not applicable

Digging out of the Credit Slums- On the right track?

Hi All!  Newbie here, but I've been reading a lot.  I figured I'd start a thread to keep track of what I'm doing and hopefully get some assistance along the way. 

 

37yo professional female who never took my credit serious before now.  I went through a major shift of underemployment and unemployment last year that tanked my "Poor to Fair" credit score into the abyss.  I have gone through a complete shift and am on a serious mission to be intentional about my finances and make significant strides to get healthy financially.  I have been a HORRIBLE steward of my finances and I don't want to take these habits into my 40s.  I currently make about $90k annually and only have about $2500 in monthly recurring expenses. 

 

Fun facts:

Auto Loans- 1 paid as agreed and closed.   1 open auto loan as of June 2017, current

Personal Loans- 1 Self Lender Secured Loan for $1000 opened July 2017

Open Credit Cards- Comenity Bank- $200 limit, will be at 0% usage at the end of this week; Open Sky Secured- $350 limit, 10% UTI; First Bank Secured (opened through my bank) $500, 0% UTI

 

Not so fun facts:

Scores: EQ: 462, TU: 464, EX: 490

Auto Loans- 1 reposession in August of 2016. 

Credit Cards- Fingerhut C/O $700 limit, owe $881; First Premier C/O Limit $300, owe $492

 

TU- 5HP, EQ- 16HP (due to recent vehicle purchase, there were 9 related to this)

Collections- TU- 8; EQ- 7

 

There are a number of collections that are very minor amounts and I'm in a position to pay them off here and there, but I'm trying to figure out the best method to attempt PFDs.

 

Also of note: Student loans are in default and I have a public record for taxes on my files. 

 

I am just not sure what would have the most impact on my credit, paying off collections, or continuing to manage my open lines of credit (which are all in great shape).  I am a member of NFCU and I will likely open a Secured CC with them in the near future. I don't have any major plans to make purchases, but would like to be in a position to purchase a home sometime in the next 2-3 years.  I'm more focused on saving and rebuilding my credit. 

 

I'll update here as I go, please feel free to chime in with any help you can offer!  Thanks in advance! 

25 REPLIES 25
medicgrrl
Valued Contributor

Re: Digging out of the Credit Slums- On the right track?

The CO's are probably the quickest way to increase your score, depending on the utilization they're reporting. Paying those off will help.

Visit the student loan forum for information on how to bring those current.

I would definitely check your state's SOL and determine which accounts have the potential for judgements against you.


EQ 778 EXP 782 TU 729
Message 2 of 26
Anonymous
Not applicable

Re: Digging out of the Credit Slums- On the right track?

Thank you for your suggestions!
Message 3 of 26
medicgrrl
Valued Contributor

Re: Digging out of the Credit Slums- On the right track?

Have you pulled your free reports from the bureau's? Those will show when the DOFD was and will help in determining whether they are within the SOL.

Come back with any questions you have!


EQ 778 EXP 782 TU 729
Message 4 of 26
Anonymous
Not applicable

Re: Digging out of the Credit Slums- On the right track?

No, I have been using the dates on the credit report through CK. Are those accurate?
Message 5 of 26
medicgrrl
Valued Contributor

Re: Digging out of the Credit Slums- On the right track?

Not really, collections are going to show the date the collection agency acquired the account, which will be different than the DOFD. I would go to annualcreditreport.com and get your free reports from the CRA's. Those will show more information.


EQ 778 EXP 782 TU 729
Message 6 of 26
Anonymous
Not applicable

Re: Digging out of the Credit Slums- On the right track?

Welcome to the boards! Looks like Medicgrrl has you covered on the repair. I just wanted to suggest that you consider adding a third card at some point too. Your scores are pretty low for the time being but a Discover secured will give you a strong card to grow. Since we get the best FICO scores with 3 cards and a loan you may want to add it earlier rather than later so they can mature together rather than taking the ding at a future date because you reduced your AAoA.
Message 7 of 26
Anonymous
Not applicable

Re: Digging out of the Credit Slums- On the right track?

1) @MikkiD is correct (or course 😉) but it actually looks like the OP has the 3&1 squared away right now.

She's got
A) Comenity
B) Open Sky
C) First Bank

They aren't the prettiest in the bunch but they'll serve her purposes, till she does some work and IMO probably pops a good unsecured account from Navy, when the time is right.

2) FYI
OP I get what you were looking to do with the Self-Lender...you didn't need it
a) you already had install history, with the old car loan
b) you secured an open current installer with the current car loan obtained the month PRIOR to the Self-Lender
*It's no biggie (except for the IMO hight fees compared to what a CU would charge for the same product) you got, not gonna kill you.
I just want others reading to understand why giving the scenario they can skip that step for future reference.

3) With your income to monthly nut ratio, frankly you have the ability to strategically clean up a bunch of this crap with PFDs because you have the ability to throw CASH around

I say this not to be flippant but at 90k with $2500 in monthly expenses... I can't let $492 type issues drag down my profile...meaning c'mon what's it gonna take $200-$250 and I've bought my way to a prettier profile?
FH take this $500 TODAY let's settle this matter CASH baby...gotta delete though, we good?
BAM for less than the Self-Lender those 2 might be able to puff disappear...

A man/woman committed with the juice (💰) available can move some mountains, if they play it right...lucky when one has relatively small debts they can work miracles that are much more difficult for those who dug bigger holes with limited access to cash

The OP just needs to learn some discipline but luckily it appears, she just went on at lot of 'cheap' joy rides where some may be able to be negotiated away.

Keep the on-time payments happening
Don't dare have a balance on anymore than ONE of those toy rebuilder cards at once &
Keep that 1 at sub 10%

And by Spring next thing you know you're sitting on the pretty girl credit side of the fence 😎

*If my play on words has in anyway offended anyone...you might need a life😱
Seriously, lighten up....just having fun✌

Best of luck OP
Message 8 of 26
Anonymous
Not applicable

Re: Digging out of the Credit Slums- On the right track?

 


@Anonymous wrote:
Welcome to the boards! Looks like Medicgrrl has you covered on the repair. I just wanted to suggest that you consider adding a third card at some point too. Your scores are pretty low for the time being but a Discover secured will give you a strong card to grow. Since we get the best FICO scores with 3 cards and a loan you may want to add it earlier rather than later so they can mature together rather than taking the ding at a future date because you reduced your AAoA.

Thanks Mikki!  Yes, I was considering another card, especially since my AAoA is very low (less than 1 year).  I've been debating between Citi secured and a NFCU secured, do you recommend either?  I don't think I will be approved for Discover, as I burned them way back in college.  It was an unpaid c/o that fell off my report probably 10 years ago.  

 

Also, since I have a $350 limit, a $500 limit, do you suggest that I do a larger limit or a smaller one?  I was thinking that I would open up one for maybe $2k, wouldn't that look better?  Or does it make a difference?  

 

Thnks again!

Message 9 of 26
Anonymous
Not applicable

Re: Digging out of the Credit Slums- On the right track?


@Anonymous wrote:
@1) @Anonymous is correct (or course 😉) but it actually looks like the OP has the 3&1 squared away right now.

She's got
A) Comenity
B) Open Sky
C) First Bank

They aren't the prettiest in the bunch but they'll serve her purposes, till she does some work and IMO probably pops a good unsecured account from Navy, when the time is right.

2) FYI
OP I get what you were looking to do with the Self-Lender...you didn't need it
a) you already had install history, with the old car loan
b) you secured an open current installer with the current car loan obtained the month PRIOR to the Self-Lender
*It's no biggie (except for the IMO hight fees compared to what a CU would charge for the same product) you got, not gonna kill you.
I just want others reading to understand why giving the scenario they can skip that step for future reference.

3) With your income to monthly nut ratio, frankly you have the ability to strategically clean up a bunch of this crap with PFDs because you have the ability to throw CASH around

I say this not to be flippant but at 90k with $2500 in monthly expenses... I can't let $492 type issues drag down my profile...meaning c'mon what's it gonna take $200-$250 and I've bought my way to a prettier profile?
FH take this $500 TODAY let's settle this matter CASH baby...gotta delete though, we good?
BAM for less than the Self-Lender those 2 might be able to puff disappear...

A man/woman committed with the juice (💰) available can move some mountains, if they play it right...lucky when one has relatively small debts they can work miracles that are much more difficult for those who dug bigger holes with limited access to cash

The OP just needs to learn some discipline but luckily it appears, she just went on at lot of 'cheap' joy rides where some may be able to be negotiated away.

Keep the on-time payments happening
Don't dare have a balance on anymore than ONE of those toy rebuilder cards at once &
Keep that 1 at sub 10%

And by Spring next thing you know you're sitting on the pretty girl credit side of the fence 😎

*If my play on words has in anyway offended anyone...you might need a life😱
Seriously, lighten up....just having fun✌

Best of luck OP

No offense taken!!  Thanks so much!  See, I started out knowing pretty much NOTHING about credit because I had been so irresponsible, and now that I have more disposable income (a recent thing, I started here in June, I had been underemployed for well over a year).  Because of my situation, I now live with family and I want to use this time, before striking back out into the "REAL" adult world with more aggressive bills, to clean up my credit mess.  I think I'm just scared to pull the trigger on some of these PFDs.  Does that make sense?  LOL  

 

Should I start with calling those folks or send it straight via letter?

Message 10 of 26
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