Don't know what I'm doing

Anonymous · ‎07-16-2014

Hi,

I posted on here a few months. I am trying, very slowly, to build up a good credit score. So I took everyone's advice and first thing I did was get a new bank account and I dropped the debit card I was using that charged me for using it. It was one of those cards you get at the convenience store. I have a TD Bank account and so far so good. Next thing I did was request my credit report. My current score is 529. I have no current revolving credit, no open accounts, I have a recent car reposession, a public record for an apartment eviction in 2012. Where do I go from here? I will be getting some money in a couple of weeks that may help me pay some stuff off. Basically I would like to know, should I contact the creditors one by one and discuss paying the accounts in full? I heard that paying them in full will help my credit score? Also, should I try to get a secured card and just have it, not use it? Any help would be so appreciated! I really need to get my stuff together and I don't know if I could do this on my own! Thank you so much for any feedback!

gdale6 · ‎07-16-2014

@Anonymous wrote:
Hi,

I posted on here a few months. I am trying, very slowly, to build up a good credit score. So I took everyone's advice and first thing I did was get a new bank account and I dropped the debit card I was using that charged me for using it. It was one of those cards you get at the convenience store. I have a TD Bank account and so far so good. Next thing I did was request my credit report. My current score is 529. I have no current revolving credit, no open accounts, I have a recent car reposession, a public record for an apartment eviction in 2012. Where do I go from here? I will be getting some money in a couple of weeks that may help me pay some stuff off. Basically I would like to know, should I contact the creditors one by one and discuss paying the accounts in full? I heard that paying them in full will help my credit score? Also, should I try to get a secured card and just have it, not use it? Any help would be so appreciated! I really need to get my stuff together and I don't know if I could do this on my own! Thank you so much for any feedback!

I would suggest taking some of that money and getting yourself a few secured credit cards, you can check out SDFCU and also your local CUs. Paying off your debt will look good in the long run (on manual review by a UW) but when you do and if you dont get the PFD its going to drop your score unless they are updating monthly already. Do not just put away the secured cards not using them does nothing for you, you want to use them some and let one of them reporet 1-9% of its CL to the CRAs each month. To maximize Fico you are going to need at least 3 bankcards and 1 store card but starting with the 2 is just fine, then you would go about contacting your creditors to make payment offers as you have the funds available. Good luck

Anonymous · ‎07-17-2014

Thank you so much!! This is exactly the advice I needed...somewhere to begin!!! I'll keep the forum posted as I move forward!

yfan · ‎07-17-2014

Paying your creditors in full might help your score some, but keep in mind that the delinquencies are going to be on your credit report whether you pay them at all or not. And right now, you cannot get ANY unsecured credit.

Use these two things to your advantage. Use it to negotiate with your creditors so that you can pay a reasonable amount for them to write off the rest and report out a zero balance. They know about the seven year limit, make sure they know you do as well. I am not telling you to use it to avoid responsibility - that is both wrong and won't work - but with the money you have, you want to pay off as many accounts as you can, and that might require negotiating to settle to pay an amount that is less than 100% of what is owed.

Anonymous · ‎07-18-2014

Thank you for the advice! I figured I'd get 2 secured cards and there is a program with a furniture store out here that allows you to make payments on your furniture and they report to credit agencies to help build your credit. They only need your job and a bill with your address and name. Good thing I've been at the same job for the past 12 years! I am going to send out some PFD letters after I get the cards and the furniture. I just want to start off fresh and on the right foot. I know my CBR will look shady with everything in the past, but all I can do is grow up, take responsibility for my past actions and try to fix things from now on! Thanks again for all the advice this has been so helpful!

Anonymous · ‎07-18-2014

Try KOHLS charge card.

Anonymous · ‎07-18-2014

Thanks! I'll try. I'll let you know what happens...