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Getting New Accounts in Rebuilding, avoid the old old stores and banks?

AspiringDink1991
Valued Member

Getting New Accounts in Rebuilding, avoid the old old stores and banks?

So i’ve Been in the process now of rebuilding my credit in the last year (started March of 2018) This is my first month of being with MyFICO

According to my Credit Report I have a bad history with CitiBank, Capital One, Synchrony, Barclay. I’m trying to find out where I can possibly get new credit to further rebuild.

 

Is there ant sort of chart that details all the retail companies and their lender used? When I first started this process using CreditKarma I was seeing scores of about 555, here today I’m seeing FICO scores of 590-617. Iv’e only just started this month with SelfLender and MyJewlersClub (all things i’ve Seen said they don’t do a hard inquiry but they do). I have a 5 year impeccable auto payment history bewteen Honda and Capital One.

 

I’m stil working to get negative accounts removed (Amaozon/Sync, Kohls/Cap One, Cap One, Lowes/Sync, DiscountTire/Sync, Barclay, Conns) I had impeccable history and fantastic credit until I had a life changing diagnosis in 2016 (when late payments and delinquencies started). Now that i’ve Recovered and outcomes are looking great for a future life my goals are to buy a cheap 70k house that I can pay off in 7years. Once my credit score is a little bit better ill be able to refinance my current Honda (at 12.5%) down and between house payments, car and monthly bills ill be at about 50% debt to income ratio with monthly payments just in case anything ever does happen again with insurance and disability that will well cover me.

 

I’m currently working on getting with NFCU for their secured card. Prior to my illness none of of my credit cards were over $2500 limit my goals are to get into the premium tiers of credit. Instead of being stuck in subprime lending hell. It’s my understanding that for some reason credit cards over $5000 limits help you to get into the premium tiers. If these bad accounts come off of my credit will I be able to get credit with these companies again?



1-19 scores
1-20 scores
11-20 scores
1-21 scores

11-18 MyJewelersClub $5k CL
1-19 Discover $1k
1-19 Commenity $300 unsecured, CLI to $620 1-20
8-19 NFCU $500 secured graduated to non secured with limit of $4,500
8-19 NFCU SSL $3k paid down to $233
2-20 NFCU Cash Rewards $15k
5-20 Honda $46k @2.9%
1-21 PayPal Credit SL $3.5k
1-21 CapOne Platinum SL$ 3k
Cant believe it's been 2 years now, these recoveries are so slow its torturous!
Message 1 of 10
9 REPLIES 9
DIYcredit
Frequent Contributor

Re: Getting New Accounts in Rebuilding, avoid the old old stores and banks?

Sorry to hear about your life changing illness and I'm glad you recovered.Each account that is removed from credit report good or bad will affect your Fico score through aaoa.The presence of any derogatories on your credit report will always affect your Fico score.If these companies will give you credit again depends  on how your credit report looks as a whole not just one or two factors plus other information they consider.As an example I was once denied a cc for having a recent collection and short revolving history.I would get the secured cars as long it reports to three credit bureaus if you have no other open cc's and start rebuilding.   GOOD LUCK...

Message 2 of 10
FiresOut
Super Contributor

Re: Getting New Accounts in Rebuilding, avoid the old old stores and banks?

You could try for the Discover secured. Try the pre-qual page. Slight chance you may get a unsecured. Stay away from store cards. They all HP now. Theres OpenSky no HP and doesnt report as unsecured. No predatory fee cards.You only need 1 more card to have the desired 3 revolvers for best FICO scoring. You already have an installment loan with your car. No need for any other loans. 

 

Best thing for now is time and build a history with what you got. Not going to happen overnight. Good Luck on your GW attempts.

Message 3 of 10
AspiringDink1991
Valued Member

Re: Getting New Accounts in Rebuilding, avoid the old old stores and banks?

I intend to do the Discover Secured and try to get with DCU and get their secured as well

As for store cards, its my understanding that doing the shopping cart trick is a soft pull, is that still true?

You say Open Sky doesnt report as unsecured, if it reports as secured is that a bad thing?



1-19 scores
1-20 scores
11-20 scores
1-21 scores

11-18 MyJewelersClub $5k CL
1-19 Discover $1k
1-19 Commenity $300 unsecured, CLI to $620 1-20
8-19 NFCU $500 secured graduated to non secured with limit of $4,500
8-19 NFCU SSL $3k paid down to $233
2-20 NFCU Cash Rewards $15k
5-20 Honda $46k @2.9%
1-21 PayPal Credit SL $3.5k
1-21 CapOne Platinum SL$ 3k
Cant believe it's been 2 years now, these recoveries are so slow its torturous!
Message 4 of 10
AspiringDink1991
Valued Member

Re: Getting New Accounts in Rebuilding, avoid the old old stores and banks?

I have another question a couple of the old Charge off accounts on my report have low amounts I was considering doing PFD with them, would I be able to use my new Secured Cards to be able to do this with the accounts, or should PFD only be done with like prepaid cards or Money Orders

 

Honestly I have the cash saved that all ~$10,000 in delinquencies/charge-offs I could pay in full and try for PFD but I really feel like that would be a waste of money. Everybody says paying charge off and collections has no benefit to your score.



1-19 scores
1-20 scores
11-20 scores
1-21 scores

11-18 MyJewelersClub $5k CL
1-19 Discover $1k
1-19 Commenity $300 unsecured, CLI to $620 1-20
8-19 NFCU $500 secured graduated to non secured with limit of $4,500
8-19 NFCU SSL $3k paid down to $233
2-20 NFCU Cash Rewards $15k
5-20 Honda $46k @2.9%
1-21 PayPal Credit SL $3.5k
1-21 CapOne Platinum SL$ 3k
Cant believe it's been 2 years now, these recoveries are so slow its torturous!
Message 5 of 10
FiresOut
Super Contributor

Re: Getting New Accounts in Rebuilding, avoid the old old stores and banks?

Anything that is paid in full will reflect a whole lot better than owed. The clock will then start to countdown the chargeoffs paid and fall off your reports in 7 yrs or you might hit it lucky with a PFD after you contact them to negotiate. Until then they will still report a balance each month. And yes any store cards by Commenity Bank are now HP's. Also you will have a better feeling that you paid your debts and did the right thing. Plus it will help down the road to potential creditors that you paid your debts. Its almost a win win situation short term and long term. Good Luck with the PFD's!

Message 6 of 10
SOGGIE
Established Contributor

Re: Getting New Accounts in Rebuilding, avoid the old old stores and banks?

Portfolio Recovery (Cap One) has a somewhat new policy. if a consumer pays a debt in full or settles on a delinquent debt, Portfolio Recovery will remove the delinquent account from the three major credit bureaus within 30 days of receipt of payment. www.portfoliorecovery.com

Deletions for reported PRA accounts apply to both accounts paid in full or settled in full. So if a consumer can't pay the full amount, they can call in and request to settle for a lesser amount. Good luck!

I would contact with your other creditors to inquire if they offer similar options.

Life was a lot simpler when what we honored was father and mother, rather than all major credit cards. ~Robert Orben

SCORES: Excellent · 830 to 848
INQUIRIES: 0
UNIVERSAL REVOLVERS: $200K Club
NUMBER OF CC ACCOUNTS: Less than 10
CARD USAGE: Minimal
CREDIT HISTORY: Very Lengthy · Seasoned Accounts
INCOME: Sufficient
UTIL: 1-2%
PYMTS: 100% Positive · Always PIF · AZEO
INSTALLMENTS: No thanks!
ASSETS: 100% Equity
TOTALLY REFUSE TO: Pay Interest or Annual Fees, Combine Accounts, Reduce Limits, Submit 4506-T, SCT, App Spree, Accumulate Inquiries, Do business with Comenity, Synchrony, Cap One, Wells Fargo, Citi, Barclays or any other credit-cancerous lending institutions
Message 7 of 10
calyx
Senior Contributor

Re: Getting New Accounts in Rebuilding, avoid the old old stores and banks?


@AspiringDink1991 wrote:

I intend to do the Discover Secured and try to get with DCU and get their secured as well

As for store cards, its my understanding that doing the shopping cart trick is a soft pull, is that still true?

You say Open Sky doesnt report as unsecured, if it reports as secured is that a bad thing?


For FICO scoring, it is not bad (there is no difference betweens secured and non-secured), but if you have a manual review, it might come up.
I have three secured cards - one of which is Opensky, and I can confirm that it (still) does not report as secured.




F8 EQ: 803 | EX: 796 | TU: 796 | Accounts: 1/6 3/12 7/24
Happy practitioner of AZE9or10or11or12 | Team Finances > FICO
Message 8 of 10
AspiringDink1991
Valued Member

Re: Getting New Accounts in Rebuilding, avoid the old old stores and banks?

Would this also get the original Charge Off removed?



1-19 scores
1-20 scores
11-20 scores
1-21 scores

11-18 MyJewelersClub $5k CL
1-19 Discover $1k
1-19 Commenity $300 unsecured, CLI to $620 1-20
8-19 NFCU $500 secured graduated to non secured with limit of $4,500
8-19 NFCU SSL $3k paid down to $233
2-20 NFCU Cash Rewards $15k
5-20 Honda $46k @2.9%
1-21 PayPal Credit SL $3.5k
1-21 CapOne Platinum SL$ 3k
Cant believe it's been 2 years now, these recoveries are so slow its torturous!
Message 9 of 10
FishingGuy
New Contributor

Re: Getting New Accounts in Rebuilding, avoid the old old stores and banks?

If they are small ones.... ( or even not so small, depending on your current financial situation )...

 

Contact them to say you will pay off in full if they remove it from the reporting agencies..... not mark settled or paid in full.

They may have purchased the debt at 10 cents on the dollar and will be happy to do so.... as long as they are paid and collect their money...... but......... I would request it in writing  

Message 10 of 10
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