Alright everyone, I felt compelled to tell my story bc I was where many of you are or had been at one time.....down in the dumps, thinking you'll never get out. So the better part of my 20's consisted of poor financial decisions, biting off more than I could chew, being rejected for credit and getting defensive anytime I was in department store and they ask "Do you have a Macy's card?" My stomach was churning every time bc I knew they would ask and it reminded me how bad I felt. So this past May I decided enoughs enough!! My credit was a dismal 519 across the board!! I've had a good job but the car I (had) was killing me!! It was breaking down all the time, I was upside down, I was paying 16.7% and 454 a month. Trust me it sucked.
The first order of business was going after collections. I owed around $1500 btwn 5 of them (all medical, accept 1) As I payed them I disputed them all with the CB'S. I simply said they agreed to remove upon payment. Just in case you don't know, your run of the mill CA is terrible with paperwork. So when something's disputed often times they don't respond bc they got their money. Now a company such as a credit card company or others like it will often times be more difficult to have removed. Anyways, within 4 or 5 days of paying them and getting them removed, my score went up 70 points.
After that success, I was sitting at the 580 range. I then focused on paying off my cc's. I owed around 2500 but had 97% util on high interest cards. So every extra penny I could scrap up went to them and then realized leveraging cycle end dates Helps as well bc they report the balance on the end date. My goal to lower my util was to initially grt to 65% util, then 40%, 25%, then under 15. Once I did that scores jumped to 630 to 640.
Lastly, I disputed everything negative in my report. Lates (which I had a good amount), inquiries, updated personal info, I mean everything. This past week, I get a score watch alert. Equifax jumps to 665!!! So what did I do with needing a new car? I went online, immediately. I first applied to Cap One, immediate approval of 7.36 (I about had a heart attack), then Wells Fargo, 6.99. Went car shopping, picked out my car and by a little negotiation, needed up with a 5.84!!!! It's not .9 or 0%. But considering I was at 16.7, huge success!!!
I tell you this story bc 5 months ago I never thought I'd be here today, hell, even one week ago. Put the effort in, be committed, and it will happen.......I promise!!!
Good for you! I am hoping to be where you are in 5 months from now! Love to hear these stories. What was your total increase from paying off the credit cards? 580 to 640? I am really hoping that is the thing that will bring us up!
Great story! Congrats! You are so right about learning about the reporting dates for the ccs. I used to not really get that, I would use the card, pay it, but my credit was still bad. Now I have a little chart on my computer with all of the cut off dates and the reporting dates, so I try to pay in full or as close as possible to full by those dates. I saw big jumps in my score when I got my utilization way down to less than 10%. It's learning how to play the game!
Congrats on your new car!
519 to 560 to 595 to 665
the collections caused a huge jump as did getting my util down. If you Chet at or under 15% you should see significant increase. I'd say 30+ pts.
Better and better!!!!!
Congrat on your new cars...and successful story.....love it...