Hello! Just getting (seriously) started

[Anonymous]

Hello all!

I have been clawing my way back to stability for the past few years, and now I'm in the position that I'd really like to buy a home in the near future. So here is the basic rundown of where I currently stand. I have been using Credit Karma, which I understand isn't the most accurate. But if anyone knows of a better (preferably free) tool, I'm all ears.

..Negatives..

Berlin Wheeler $292

I C System $159

Aargon Agency $259

Account Management Resource $172

-These are all getting paid off in the next month-

Which will leave these two

NCC Business SVC $2660

Enhanced Recovery Company $372

Equifax actually has a couple of medical collection accounts as well, which I think I've read may be handled differently (is that true?)

Positives

Navient student loan, income driven repayment so its current

Credit Acceptance (auto) high interest rate 20% but its current and I'm not upside down. Hoping to refinance this.

Brand new

Victoria Secret CC limit $250 (balance $40)

NY&co limit $250 (balance $0)

Now Credit Karma has me at 589 eq and TU at 582.

I am planning to alternate using my two store cards keeping a small balance on one at a time. I also have a CO scheduled to drop off in May. I would love to get rid of the NCC account but I've read they are horrendous to deal with, and thus far have been unwilling to settle. 

Any suggestions? Feedback?

[Gratitude]

Patience and Wisdom will get you to your goals of repair.  There are plenty of knowledgeable folks contributing to this forum... loads of valuable information, so the Wisdom will come. Don't stress. 

In under a month I have personally received great suggestions and guidance here that has helped my credit profile & score! 

I will let those pro's offer you some sharp solutions... meantime, if you haven't yet,  as a primer, please read this post on 11 Rules to Credit Building. It will give you some tips until you get more specific info based on your situation.

Best of Luck!

---

Merrick Bank Visa $1500 | Citi BestBuy Visa $5300 | Chase Freedom $500 | Amex BCE $2000

FICO8:  EQ 12/17: 721  |  1/18: 706   || .  TU 12/17: 742  |  1/18: 744 .  ||   EX 12/17: 736  |   1/18: 720

[Anonymous]

Yes I've been reading the forums for a few days now. There's so much to learn here!

[Sandman771]

If you are able to join a credit union. Their fees are lower and their CCs are somewhat more relationship driven for approvals and most are rebuilder-friendly. 

In order to maximize your score you need an installment loan (you have it handled by your auto) and you need three revolving cards. You have two store cards, but if you can afford it I'd look at Cap one or Discover for a secured major card that will graduate. 

As to balances, I would use the cards  you have and always let them show a 0 balance. The three card trick is to pay two to 0 and one to less than 9%. So if you had a $500 Disco you want it to report less than $45 on the statement cut date. Then pay in full so you pay no interest. 

As someone else responded read ABCD's guide to credit rebuilding. He is really a sharp guy. 

[Anonymous]

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@Gratitude wrote:

Patience and Wisdom will get you to your goals of repair.  There are plenty of knowledgeable folks contributing to this forum... loads of valuable information, so the Wisdom will come. Don't stress. 

In under a month I have personally received great suggestions and guidance here that has helped my credit profile & score! 

I will let those pro's offer you some sharp solutions... meantime, if you haven't yet,  as a primer, please read this post on 11 Rules to Credit Building. It will give you some tips until you get more specific info based on your situation.

Best of Luck!

---

Merrick Bank Visa $1500 | Citi BestBuy Visa $5300 | Chase Freedom $500 | Amex BCE $2000

FICO8:  EQ 12/17: 721  |  1/18: 706   || .  TU 12/17: 742  |  1/18: 744 .  ||   EX 12/17: 736  |   1/18: 720

---

I would just like to second what Gratitude writes!  Also, I'll add that you should read EVERYTHING that ABCD writes (he authored  11 Rules to Credit Building)!  There are others that I would put stock into readying, too.

The most important thing, for me, is just to take some sort of action.  When I make myself the most uncomfortable, I see the most results!

Best of luck in your journey.

Thanks!

Peace!

[Anonymous]

Yeah really disregard that credit karma fako. Use credit check total $1 dollar trial for a week to get your true fico. Just cancel it right after so you aren't hit with the full price after a week. And once again read ABCD's post as previously stated. And good luck and never be scared to ask questions. Everyone on here is understanding and have awesome knowledge

[Anonymous]

So I have a CU account, and I chose them because they tend to run great refinancing offers on auto loans, but I don't see an option for credit cards on their site. Is that something most credit unions offer?

[mysterythemoon]

What are your dates of first deliquency on your negative tradelines?

[Anonymous]

Oh ouch. Did the credit check total, and my highest score is about 40 points lower that CK. It did however agree with the Discover Scorecard someone suggested in another post, so that may be what I use going forward.

The main thing that seems to be hurting right now (aside from the collections accounts) is my lack of credit cards. I have 4-5 years on my average account age, and nothing new has been reported as late or in collections for over a year.

Once I pay off those 4 collections accounts, that should help significantly right? I am so bummed, I thought I was much closer to 600.

[Anonymous]

Before paying those off I would look into a PFD (pay for delete). You can offer to pay in full with the agreement that the CA will remove it from your report. Not all CA will do this but if they agree get it in writing before paying them anything. A collection marked paid is ok but it will still report until it ages off