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Help with Rebuilding Fairly New Credit

New Visitor

Help with Rebuilding Fairly New Credit


I am ready to start fixing my credit but I am young and want the best advice possible. My credit is fairly new, one year and 4 months and I have only had one thing on my credit, a credit card for capital one that is unfortunately a closed account. This closed account has a payment status of: charged off, with a balance of $451. The card hasnt been paid since February 2022. I am trying to figure out if I should pay the 50% settlement offer cap one is offering me or should I pay off the $451 in full? I am not sure if settling or paying in full looks better. Also, I am assuming this is the first step I should take for my rebuilding journey (if it isn't please advise)


Once I handle the above situation, where do I start? Should I apply to new cards? maybe a secured card? or wait a few months? I am not sure what to do. Please help me in any way. I am all ears and just want to fix my credit while I am young so it doesn't affect me in the future. Thank you so much for your time. #credithelp

Message 1 of 3
Community Leader
Super Contributor

Re: Help with Rebuilding Fairly New Credit

Welcome @Jwaxa7ym4 

Once paid or settled Cap1 will be the first to let you back in. Very forgiving. Is that the only revovling account you ever had so far? Theres Mission Lane, Self, or you can go the secured route. Happen to be a student?

Homeowner since Sept 2020. 2021 Explorer ST Chase 3.1%. Sharing my experiences after BK from learning here. Started 540's.
Message 2 of 3
New Visitor

Re: Help with Rebuilding Fairly New Credit

@FireMedic1 Thank you so much for responding to me. Yes, I am a student about to turn 22. The capital one card is the only revolving card I have had so far. Do you think its better for me to pay off the total amount due or settle for half? I am not sure if that makes a difference. 

I am so thankful for your guidance!

Message 3 of 3
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