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Help with a roadmap - 6+ Years Gone

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New Visitor

Help with a roadmap - 6+ Years Gone

Hey guys, I was hoping some people could give me some guidance on building my credit. I'm watching so many youtube vids/reading this and that and I just want to make sure I'm on the right path. So... I'm just finishing a prison sentence and trying to rebuild my credit after being gone almost 7 years. I had credit before but had mesed it up in 08' during the recession. All that stuff is gone now. Trying to do everything right this time. My only goal credit wise right now is to be able to get decent rewards cards. - Right now I have (according to credit karma/vantage score) a 633 TU & a 630 equifax. Experian will not score me because of lack of history. - I have a $40 collection on TU & Equifax that is legit but will fall of in May of next year. I had a $500 collection that I disputed and removed from TU & experian. I'm working on getting it taken off equifax (its noted right now as having been disputed, that gave me some points) - I applied for and was denied an Amazon store card, PayPal credit, Petal(sp) overstock(sp) and fingerhut. The first hp from the amazon card pulled my TU from a 663 to a 633. Oddly, the paypal hp boosted my equifax 4 points. - After getting denied for fingerhut I figured unsecured credit was off the table. I went ahead and got a secured Discover and I put up $1,000. Should get the card this week. - I signed up for Kikoff & made my first payment last week. - Using the shopping cart trick I got approved for $1,500 with Appliance Connection. What next? I regret those shots in the dark when I first started that resulted in a hp with no approval. I feel like I need at least one more line of credit so my file isn't so thin? A $200 secured capital one? MyJewelers Club? I don't have HUGE goals but I want to get the following in my wallet: Chase Signature Amazon Visa, Apple card, & Citi Double. Any advice appreciated. I just feel dizzy with all these angles you find listed online.
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Community Leader
Senior Contributor

Re: Help with a roadmap - 6+ Years Gone

Welcome to the boards Smiley Happy  For scoring mix, all you need is an installment (I assume that's what Kikoff is) and three revolvers. You have AC and Disco already. Next good bet is OpenSky - it's a no-credit-check card with a $39 annual fee, well worth it for its purpose. 

Very simply, once you have the three cards and the installment, use them all you like but when the statements cut, let a $10-15 balance report on Disco and have the other two fully paid off. This is called AZEO, all zero except one. It helps with some extra points. A good practice to get into would be to make your minimum payment as soon as the statement cuts, so your obligation is done and you can't be late. Then pay off later charges before the due date, in full for AC and OpenSky and all but that $15 on Disco. Long as you pay that off once the statement cuts, you'll pay no interest and preserve your grace period.

 

Other than that, just do AZEO, make every payment on time, always, not even an hour late, and just cruise for two years. At that point, all your HPs will be gone, you'll have two solid years of perfect history, and you'll have zero derogs on your reports. Sky's the limit at that point!



Rose Gold NPSL | BCP | Delta Gold | Hilton Surpass | Hilton Honors | PenFed PCR | IT Cash | IT Chrome | GHSFCU Visa Plat | Quicksilver | Target | VS | Home Depot | Lowes | Sams MC | Firestone | Overstock | Kohl’s | 2017 Audi A6 Premium Plus S-Line





TCL $85,600 | Agg. Util under 5%
Message 2 of 23
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Valued Contributor

Re: Help with a roadmap - 6+ Years Gone

At this point what you need is TIME 

Right now you don't have a FICO score, you need 6 months of credit history to generate FICO scores.

If I was you, I would use your Discover card responsibly and wait until you get an actual FICO score 

Scores hover around 800
Haven't been AZEO in over a year
Rome was not built in a day, neither is a good credit profile
Message 3 of 23
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Frequent Contributor

Re: Help with a roadmap - 6+ Years Gone

It will take time to build a profile for the prime cards that you want.  I'm not familiar with Kikoff, but my advice would be to let the three accounts you have gain age & and let the inq's you burned before picking them up get older as well.  If you garden for at least a year, you'll have three lines with a year of positive payments and your inq's, while still visible to lenders, will have become unscorable.  (The inq's will fall off your reports after two years.)  Since you've been out of the credit game for 7 years, you're pretty much starting over from scratch, and just like someone new to credit, you'll have to establish history and grow score before the major lenders will open up their rewards cards to you.  In the meantime, you actually have a good rewards card in the Discover secured, and you can request they switch it from the capped 2% dining/gas rewards structure to the 5% rotating categories the It CB has, if you think that would work better for you.  Additionally, it can graduate to a unsecured card in < 1 yr if your profile supports it.

 

While you're gardening, I'd suggest researching and reading up on credit scores and credit reports from good sources.  @Birdman7's scoring primer is an excellent place to start.  The Vantage scores you're seeing from CK have a pretty limited value in judging where you are in your credit journey since very few lenders actually use them.  FICO scores are the ones you really want to monitor, and you're not seeing a FICO from EX yet b/c you need six mo's of credit history to generate a FICO score.  That's ofc another good reason to garden for a bit, as you'll be spending your HPs on denials for the most part until you actually have a score. 

 

The $40 collection actually isn't counting against score on FICO version 8 & 9, as they discount nuisance collections of < $100.  Good luck on getting the $500 CA dropped from EQ.  If you run into any trouble with it, there are a lot of good people in this rebuilding forum who can advise you on further steps.

 

Welcome to the forums, and good luck on your journey!

Wallet: Chase FU & Disco IT CB
Sock Drawer: Chase Amazon, State Farm GN
TU 817, EX 817, EQ 826
Message 4 of 23
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Valued Contributor

Re: Help with a roadmap - 6+ Years Gone

Forgot to address your request for a "road map" to your goal cards

Chase: in general likes to see at least 1 year of revolving account history. Also has 5/24 rule, which is if you have opened 5 or more accounts in the last 24 months it is a automatic denial 

Citi: very inquiry sensitive, limit your number of inquiries in the 6 months before applying 

Apple card: I have no knowledge about this card as I don't own any fruit technology lol

Scores hover around 800
Haven't been AZEO in over a year
Rome was not built in a day, neither is a good credit profile
Message 5 of 23
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New Visitor

Re: Help with a roadmap - 6+ Years Gone

Wow! What a warm welcome. Thanks for the advice so far. Kikoff *is* an installment loan. They loan you $12 and you pay back $1/mo. I do plan to switch the Discover over to the 5% rewards & will probably max out the $2,500 security deposit to take the most advantage of the rewards. The CK vantage scores gave me lofty expectations but it sunk in that time was the biggest factor when fingerhut denied me. Right now I just want to make sure I have the right seeds planted. Thanks again.
Message 6 of 23
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Community Leader
Senior Contributor

Re: Help with a roadmap - 6+ Years Gone

You do. In credit, only the negatives happen quickly. Building a solid profile takes time and patience with some strategy. Stick around here, read like crazy, and ask questions as they occur to you. We'll help you set yourself up nicely.



Rose Gold NPSL | BCP | Delta Gold | Hilton Surpass | Hilton Honors | PenFed PCR | IT Cash | IT Chrome | GHSFCU Visa Plat | Quicksilver | Target | VS | Home Depot | Lowes | Sams MC | Firestone | Overstock | Kohl’s | 2017 Audi A6 Premium Plus S-Line





TCL $85,600 | Agg. Util under 5%
Message 7 of 23
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New Visitor

Re: Help with a roadmap - 6+ Years Gone

Sorry about the formatting. I'm on a 'dumb' phone while I wait for the new iphone & its not putting in my paragraph breaks. My $500 CA is showing as being from 2016, for a verizon account, but that would be during my 'vacation' so not posible. My best guess is that its actually an older debt that was resold and they messed up the date one of the times it changed hands. I Disputed it w/ TU and experian super easily online but equifax is being a pain about letting me get setup with their site. They sent me a pin in the mail and now they want me to call. Thinking I may just mail out a letter this weekend. After winning the dispute on the other two bureaus my equifax entry did get updated (assumingly by the collection agency themselves?) to say I disputed the claim (and my vantage score went up like 20 points) but nothing has progressed past that.
Message 8 of 23
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Valued Contributor

Re: Help with a roadmap - 6+ Years Gone


@MrMGee wrote:
Sorry about the formatting. I'm on a 'dumb' phone while I wait for the new iphone & its not putting in my paragraph breaks. My $500 CA is showing as being from 2016, for a verizon account, but that would be during my 'vacation' so not posible. My best guess is that its actually an older debt that was resold and they messed up the date one of the times it changed hands. I Disputed it w/ TU and experian super easily online but equifax is being a pain about letting me get setup with their site. They sent me a pin in the mail and now they want me to call. Thinking I may just mail out a letter this weekend. After winning the dispute on the other two bureaus my equifax entry did get updated (assumingly by the collection agency themselves?) to say I disputed the claim (and my vantage score went up like 20 points) but nothing has progressed past that.

Have you pulled your reports directly from annual credit report site? It is currently allowing weekly pulls of your reports. 

It is important to understand that with CA the "date opened" has nothing to do with the date of first default (DOFD) which is what credit report exclusion is based on.

Your actual reports will either list the DOFD (EQ) or "on report until" date so you can figure out how old this account actually is. 

Scores hover around 800
Haven't been AZEO in over a year
Rome was not built in a day, neither is a good credit profile
Message 9 of 23
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Super Contributor

Re: Help with a roadmap - 6+ Years Gone

That’s exactly what I was going to say, pull your ACR reports to determine the real date it falls off.
Our FICO scoring wisdom, regularly updated: Link to Scoring Primer.

Negative Reason Codes/Scoring Factors by CassieCard: Link to Reason Code Chart.

ccquest’s awesome workbook to calculate metrics for you: Link to Workbook.


Oct 2020. Oldest/average varies. (Estimates above.)
Real world maximums for the mortgage scores are:
EQ5-818, TU4-839, EX2-844.



RIP: (Forgive typos, mobile. Everything said is JMHO.)
In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (Mature/young), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR? AoYA? Etc...
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