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Helping my Parents Rebuild!!

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Helping my Parents Rebuild!!

Hey everyone!

 

I'm new to the forum, but I've been leaning on it heavily throughout the year. I recently got serious about my credit early this year, and through reading this forum I was able to bring my low 600 scores up to 719 across the board! Now that I have my credit in check, I'm trying to help my parents get their very very poor scores up and need a little guidance, as their situation is a lot different than mine was.

 

They used to have good scores, but a combination of health issues and a need to relocate tanked them both. They had to make some tough decisions about what to pay and what to let slide after the health problems came up, so of course the last thing on their list of priorities were their credit cards. Currently my dad's score is 580 and my mom's is 500.

 

They have a lot of 30/60/90 marks on their accounts, and I actually had to convince them to save their last couple of cards (Capital One) because they weren't going to pay them, thinking it was a lost cause. Now my dad's card has a zero balance and my mom is working on paying hers down. They had charging rights frozen on them for a few months, but they've been reinstated. So there's been light at the end of the tunnel. 

 

Utilization, the lates, and having things in collections seems to be their biggest issues.

 

Their Collections; 

 

  • They each have a Credit One card currently in collections at roughly $1000. 
  • My Mom has two medical bills in collections as well, each are about $50-$70, so I was going to have her just pay those and make sure she gets them to mark them as paid in full. 
  • My Dad has an $117 collection from the Credit Bureau Association of Georgia. When they moved from a house they were renting, the landlord asked him if he'd keep the electric on, because he already had another renter. The landlord was gonna have the new tenant put the electric in her name and just leave it in my dad's until she moved in the following month. Naturally the new tenant didn't move in immediately, so there was a bill in my dad's name for a month he wasn't actually living in the house. He called the landlord and the landlord said he was sorry and he'd pay it, but as I'm sure you can guess, he never did. He started ignoring my dad's texts/calls about it, and it went to collections. I believe it was posted April 2019, so it's fairly new. My dad is in his sixties, so he's pretty mad that the landlord did this to him, cause he was from a time when "someone's word meant everything", and said he refuses to pay anything toward it because of the principle of the matter. I tried to get him to see if he could settle the bill for a smaller amount, but he won't budge. Is there any way to contact the OC and explain what happened? Or is that a lost cause because the bill was in his name?

 

 

As for Utilization;

 

  • My dad has a Capital One Plat card that's at 0, but the limit is only $300. Then he has an Indigo card (he was desperate) that also has a $300 limit, but the balance is $220.
  • Credit Karma keeps suggesting he gets another card to give him a util pad, but I don't know if that's actually good advice or Credit Karma just doing Credit Karma things. I'd rather he not go the Premier route or whatever they're suggesting.
  • I was going to have him request a CLI from Capital One after having him charge and pay off his balance in full for about six months and try to give him more availability that way. I know three cards is usually the go-to, but would it be worth it for him to try and get a secured card from somewhere? 

 

  • My mom only has a Capital One Plat card, and it has a $1000 limit. Her balance is around $700.
  • I feel like it wouldn't be worth it for her to get a secured card, since she already has an unsecured card with a limit like that. I was thinking it'd be best for her to pay down her balance, try to work on the collections, then see how big of a score jump she gets and see if she could apply for another unsecured card. Or maybe a store card. Does that sound like a good idea?

 

Forgive me for the LONG post. But I'd appreciate any advice! My parents are frustrated with how bad their credit has gotten, but don't know how to go about tackling this kind of stuff. They actually listen to me now, so I figure there's no better group to help than this forum!

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Super Contributor

Re: Helping my Parents Rebuild!!


@drdog17 wrote:

Hey everyone!

 

I'm new to the forum, but I've been leaning on it heavily throughout the year. I recently got serious about my credit early this year, and through reading this forum I was able to bring my low 600 scores up to 719 across the board! Now that I have my credit in check, I'm trying to help my parents get their very very poor scores up and need a little guidance, as their situation is a lot different than mine was. Congrats!

 

They used to have good scores, but a combination of health issues and a need to relocate tanked them both. They had to make some tough decisions about what to pay and what to let slide after the health problems came up, so of course the last thing on their list of priorities were their credit cards. Currently my dad's score is 580 and my mom's is 500.

 

They have a lot of 30/60/90 marks on their accounts, and I actually had to convince them to save their last couple of cards (Capital One) because they weren't going to pay them, thinking it was a lost cause. Now my dad's card has a zero balance and my mom is working on paying hers down. They had charging rights frozen on them for a few months, but they've been reinstated. So there's been light at the end of the tunnel. 

 

Utilization, the lates, and having things in collections seems to be their biggest issues.

 

Their Collections; 

 

  • They each have a Credit One card currently in collections at roughly $1000. 
  • My Mom has two medical bills in collections as well, each are about $50-$70, so I was going to have her just pay those and make sure she gets them to mark them as paid in full. Try and pay the Doc or whatever the med debt is directly and ask them to recall the debt.
  • My Dad has an $117 collection from the Credit Bureau Association of Georgia. When they moved from a house they were renting, the landlord asked him if he'd keep the electric on, because he already had another renter. The landlord was gonna have the new tenant put the electric in her name and just leave it in my dad's until she moved in the following month. Naturally the new tenant didn't move in immediately, so there was a bill in my dad's name for a month he wasn't actually living in the house. He called the landlord and the landlord said he was sorry and he'd pay it, but as I'm sure you can guess, he never did. He started ignoring my dad's texts/calls about it, and it went to collections. I believe it was posted April 2019, so it's fairly new. My dad is in his sixties, so he's pretty mad that the landlord did this to him, cause he was from a time when "someone's word meant everything", and said he refuses to pay anything toward it because of the principle of the matter. I tried to get him to see if he could settle the bill for a smaller amount, but he won't budge. Is there any way to contact the OC and explain what happened? Or is that a lost cause because the bill was in his name? Too trusting and got nothing in writing. So its word of mouth from a landlord that shafted Pops. just get him to pay it and be done with it.

 

 

As for Utilization;

 

  • My dad has a Capital One Plat card that's at 0, but the limit is only $300. Then he has an Indigo card (he was desperate) that also has a $300 limit, but the balance is $220.
  • Credit Karma keeps suggesting he gets another card to give him a util pad, but I don't know if that's actually good advice or Credit Karma just doing Credit Karma things. I'd rather he not go the Premier route or whatever they're suggesting. No and ignore CK
  • I was going to have him request a CLI from Capital One after having him charge and pay off his balance in full for about six months and try to give him more availability that way. I know three cards is usually the go-to, but would it be worth it for him to try and get a secured card from somewhere? 

 

  • My mom only has a Capital One Plat card, and it has a $1000 limit. Her balance is around $700.
  • I feel like it wouldn't be worth it for her to get a secured card, since she already has an unsecured card with a limit like that. I was thinking it'd be best for her to pay down her balance, try to work on the collections, then see how big of a score jump she gets and see if she could apply for another unsecured card. Or maybe a store card. Does that sound like a good idea?

 

Forgive me for the LONG post. But I'd appreciate any advice! My parents are frustrated with how bad their credit has gotten, but don't know how to go about tackling this kind of stuff. They actually listen to me now, so I figure there's no better group to help than this forum!


The best advise i can give is this. Not knowing their age. Get the baddies PIF and try for PFD first. Clean up the trash first. Then move forward. But carrying a balance is like throwing money out the window in interest. Moms at 70% util. Not good. Got to get that down and stay down. carry a balance for emergencies only. If you cant pay it, not charge it. Go to this upgrade link soMom and Dad can upgrade to a QS and get some cash back from Cap1:

https://verified.capitalone.com/sic-ui/#/esignin?Product=Card&Action=ProductUpgrade  

 

Give Disco a pre-qual check. Even the secured will graduate. The bottom feeder cards wont. But get the past paid. Get the present in check. Then look to get Disco. But it also depends how long ago the major lates were. Disco may or may not jump. Good Luck!

 





My posts are JMHO. My siggy is not to brag at all. Just sharing my experiences after learning here from rebuild to recovery after BK DC at 540's. And to show fellow members what can be accomplished when you do it right and play the FICO Credit Game. Pay it Forward!
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