Finally asking for help ...

[NikisGoingPlaces]

Hello all,

Long time lurker here finally brave enough to ask for help.

Credit rundown:

Fico 8 - EQ 537, TU 564, EX 558, as of 1/11/25, 1/3/25, & 1/11/25 respectively

Fico 10 - Lets just say they are horrible ...

6 collections:

$162 assigned 8/2024

$272 assigned 8/2024

$502 assigned 4/2024

$3225 assigned 10/2023

$766 assigned 10/2022

$548 assigned 10/2022

And lastly, 13 (yeah, I know ... ) inquiries

7 - in 2/2024 (Auto loan inquiries)

2 - in 3/2024

1 - in 9/2024

Currently, I have one US Bank Secured Altitude Go @ $300 CL (started March 2024) and just recently got back with Capital One with a Quicksilver One @ $300 CL unsecured. I receive that card this week. I do have active student loans that are on deferment due to my in school status.

My goals:

To bring up my scores, increase my limits and keep progressing. I am currently in the gardening stage since I have been back in college since 10/2023 to increase my income. I am not working; however, I do receive a small income as a Vet spouse from VA that varies per semester total credit hours. Like so many others, I had taken a major financial hit due to rent, grocery and gas increases. I had just started my financial journey with literacy first and then action back in 2018-2021 and had both retirement and emergency savings, which are both now depleted. I learned quite a bit about where I went wrong.

I am looking for help with my journey this time. I will say I learned not to have so much credit spread across so many different cards. That was another contributing factor to my financial downfall. so until I qualify for much better cards, I will cap my credit cards at two. I will be keeping my US Bank to report around 7-9% each month and use more of my Capital One since I understand now that they only give CLI to those who actually use them.

All help and clarifying questions are much appreciated. Thank you in advance to anyone who take the time to read this and respond! Happy New Year.

[JoeRockhead]

What are all the collections? Are they charged off credit cards, loans, medical bills? It might also help if you list the collection agencies that have the accounts. 

What would help your scores is to address all the collections by getting them paid/settled for less, and requesting PFDs (pay for delete) on those accounts once they're paid. It will also eliminate the possibility of them coming after you legally. Some collection agencies will do PFD, some won't. While getting the collections removed won't have any impact on getting the charge offs being removed from your reports, it will stop them from continuing to report monthly, which will also help your scores start to recover. 

Welcome to the forum. 

[NikisGoingPlaces]

First, thank you for replying and welcoming me to the forum.

Second, to answer your question, three collections are credit cards, two are telecommunication and cell phone, one is a rental prop that was being absolutely impossible the last month I moved out. I will deal with them last.

The end of the month I will see to creating a letter via AI requesting PFD for each collection. Thank you for the suggestion on that. I will definitely update this thread to show where I was successful. I am aware to make sure if they state they will PFD to request a written confirmation on it.

[FicoMike0]

Welcome to the forum.

Ditto @JoeRockhead 

I'd say concentrate on finances, credit isn't your friend.

You're right about Capone. Just to be clear, pif every month. Never carry a balance, the interest will kill you.

When you get the collections under control, you might consider a ssl to boost scores. Post when interested, well explain it.

[NoMoreE46]

Welcome to the forum @NikisGoingPlaces .

You mentioned a varying income source.

After living expenses, do you have anything  available to pay down your debts?

[NikisGoingPlaces]

Thank you for welcoming me @NoMoreE46 

Since my husband takes on our bills until I finish school, I may be able to use my finances to start paying down debts. My credit hours increase the upcoming fall, so my income will slightly increase also.

[NoMoreE46]

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@NikisGoingPlaces wrote:

Thank you for welcoming me @NoMoreE46 

Since my husband takes on our bills until I finish school, I may be able to use my finances to start paying down debts. My credit hours increase the upcoming fall, so my income will slightly increase also.

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It is great that you are addressing your situation.  As noted, settling all of those collections is milestone  #1.   
Just be careful allocating any tuition intended funds for the above.

[NikisGoingPlaces]

@NoMoreE46  ... I have made my collections my first priority.  Thank you for the insight. I truly appreciate it. Wish me luck!