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I'm hoping to rebuild my credit (My progress thread)

kev2018
Contributor

I'm hoping to rebuild my credit (My progress thread)

Hello. This is my first post, i'm a new member. It took 4 beers for me to make this post, because I didn't know how to start it. But the beers told me to just start it. So here it is.

 

I've read myFico forums for a long time (3-4 years, occasionally), but never joined until now, i'm in late 20s, live by myself, i'm a civil servant. I now have the $39.99/month subscription to track my credit monthly, because i'm so serious about this fixing my credit stuff, and I couldn't afford this until now.

 

I want to use this thread to document my rise to good credit (hopefully). It is currently 557 (EQ), 572 (TU), and 575 (EX) according to myFICO. It is 580 (EX), and 582 (TU) according to CK.

 

I have had charge offs in the past, all PIF except one with Capital One with a current balance of $999.90. I also have student loans from Sallie Mae/Navient all in good standing, and another Discover IT Student card with an $87 dollar balance, closed (no available credit line) but its stauts is "pays as agreed". I paid that down from $900 something every month starting from September (when I got my civil service job). 

 

I have called Cap1 at least 3 times asking for a PFD, I was rejected every time, including the first time, the month right after it was CO'ed (CO'ed August 2017). "We must report accurately" is what I got. I even wrote a letter pouring my heart out, explaining my situation, what got me to the charge off, what happened, what I did to change my financial situation..the letter went unanswered. Not their fault, it's all on me. I'm not owed a PFD, but i'm still salty I didn't get it though. I will finally pay the $999.90 to Cap1 in the coming months. That's where i'm not sure though, to pay it all in one shot, or to pay some of it monthly? The faster I pay the balance, the faster I can start rebuilding? Or slower monthly payments is better? 

 

I hope I can raise my score. I somewhat know what to do, thanks to reading myFICO forums for the past couple of years. But if anyone here has anything they want to say, go ahead. I will use this thread and keep everyone updated in case there's someone in similar position as me. I enjoyed reading success threads here, they are motivational, and I want to hopefully pass the motivation along by allowing everyone to watch me come up from the 500s score.

 

Message 1 of 54
53 REPLIES 53
kev2018
Contributor

Re: I'm hoping to rebuild my credit

*sigh* I didn't noticed I typed so much.

 

Anyway...

 

I got this card called First Progress Platinum Prestige Mastercard secured Credit Card, and put $800 into it. And I got another card called Primor secured Visa Gold Card and put $500 into it. They haven't showed up in my report yet, I got the Primor one in the mailbox yesterday. The other should come either today or in the coming days.

 

Cap1 $999.90 balance is next, but i'm not sure if I should pay all of it right away or pay it monthly? I could do either or. What do you guys suggest.

Message 2 of 54
Newbie2018
Frequent Contributor

Re: I'm hoping to rebuild my credit

Welcome to the Forum Kev. Make yourself comfortable. You will get far here with no worries. Everyone is helpful and reading around in the forums is helpful.

Message 3 of 54
kev2018
Contributor

Re: I'm hoping to rebuild my credit

Thank you Newbie.

 

I see your score was 491 at one point. My credit score was 445 at its lowest, but that was vantagescore, on August 2017, when Cap1 CO'ed my card. I didn't know my FICO score last year. But I imagine it was similar, because now the vantagescore shows 582, and my current FICO TU and EX are in the mid 570s. So I take it vscore and Fico aren't that far apart.

 

I really hope to get to 700+ this year.

Message 4 of 54
Newbie2018
Frequent Contributor

Re: I'm hoping to rebuild my credit

I learned in this forum that vantage scores are useless. Never go by them. FICO 8 is what lenders use. And yes I've been rebuilding for a month and have raised my scores thanks to this forum. Up 155 points. Just ask questions and read. Every question you may have is posted in this forum somewhere. Check out ABCD's tips for rebuilding if you haven't already. That's how I got as far as I have.
Message 5 of 54
Donna71281
Frequent Contributor

Re: I'm hoping to rebuild my credit

Newbie2018 is right. I have read SO much on here. Every topic and question you can imagine is on here. My score has gone up appr 90 points since January.

"As only New Yorkers know, if you can get through the twilight, you’ll live through the night"
Message 6 of 54
thornback
Senior Contributor

Re: I'm hoping to rebuild my credit

If you can pay Cap One in full, do it.

1. Cap One will officially close the account, preventing any future updates to the bureaus. An unpaid charge-off may be continuously updated as late by the original creditor, making the charge-off look "fresh". Paying it will reflect a closed, paid charge-off status which will allow the derogatory account to age and lessen the damage to your score over time.

2. Paying will prevent any further collection activity. Cap One may sell or transfer the unpaid debt to a collection agency at anytime within the Statute of Limitations which could result in a collection item popping up on your reports - in addition to the charge-off. You could also be sued (though rare for a small amount) and end up with a judgement on your reports.

3. The balance owed is currently being factored into your credit utilization. Paying it to zero will eliminate any individual utilization score dings.

4. A paid charge-off looks way better than an unpaid charge-off upon a lender's manual review.

5. You may continue to send goodwill letters after paying the debt in hopes that they land in the hands of some sympathetic soul willing to remove it for you.

Welcome to the forum!
Personal Aphorism:
"Forget What You Feel, Remember What You Deserve"


Starting FICO 8s | 09/2017: EX 641 ✦ EQ 634 ✦ TU 647
Current FICO 8s | 11/2020: EX 780 ✦ EQ 771 ✦ TU 781
Current FICO 9s | 11/2020: EX 793 ✦ EQ 780 ✦ TU 778
2020 Goal Score | 800s


My AAoA: 3.8 years not incl. AU / 4 years incl. AU
My AoOA: 7.10 years not incl. AU / 9.10 years incl. AU
Inquiries: EX 0/6 | 1/12 ✦ EQ 1/6 | 2/12 ✦ TU 0/6 | 1/12
Report Status: Clean


Without patience, we will learn less in life. We will see less. We will feel less. We will hear less. Ironically, rush and more usually mean less.
Message 7 of 54
Donna71281
Frequent Contributor

Re: I'm hoping to rebuild my credit

TMR: What do you suggest doing when you have a charge off (CO in 2014) but creditor (CHASE) hasn't reported since 2015? I want to settle something (their last offer was 10 percent like 8 months ago). I guess they we're just looking for SOMETHING, some sort of payment. At the time, I didn't have it. I also don't want to worry about any litigation in the future. Since they haven't even reported in a few years, should I even do it?

"As only New Yorkers know, if you can get through the twilight, you’ll live through the night"
Message 8 of 54
thornback
Senior Contributor

Re: I'm hoping to rebuild my credit

@Donna71281:

Check the statute of limitations (SOL) for debt collection in your state. It generally spans 4-6 years on average, but it's state specific. If you're still within SOL, you're at risk for further collection attempts. They can also sell or transfer the debt - which leaves you prey to collection agencies.

Also, just because they haven't updated recently, doesn't mean the never will again. They can update sporadically so long as they own the debt.

And consider utilization. How high is the balance owed? Is the account still showing the credit limit, or has the limit been reduced to 0? If its been reduced to 0, then you are at 100+ util for that card. If the limit is still noted, util may just be high, or even over the limit due to excess fees, for that card. Either way, it's factored into your score.

My personal experience - I had a charge-off, also from 2014, last updated Sept 2015, and reporting 113% individual util. I paid it in Sept 2017 and my score jumped 27 points just from the reduction in util - though this big increase was largly because I had no other open lines of revolving credit at the time, so this charge-off was the only credit limit used to gauge util.

I also now have zero concerns about a collections popping up on my reports.

My advice when it comes to charge-off debt still owned by the original creditor is always to just pay / settle it. You'll be better off in the long run.

Side Note: payment in full is better (on paper) than a settlement. If you loaned money to a friend, wouldn't you be more willing to do it a second time if they actually paid back all the money borrowed as opposed to a portion of it? That's how a (now former) underwriter friend of mine explained to me how underwriters tend to think as they do manual report reviews. This charge-off will be on your reports til what, 2020/2021? Do you really want to go the next few years with indisputable proof that you *refuse* to pay your debts on your reports? Because that is how it will likely be interpreted (and that sucks).
Personal Aphorism:
"Forget What You Feel, Remember What You Deserve"


Starting FICO 8s | 09/2017: EX 641 ✦ EQ 634 ✦ TU 647
Current FICO 8s | 11/2020: EX 780 ✦ EQ 771 ✦ TU 781
Current FICO 9s | 11/2020: EX 793 ✦ EQ 780 ✦ TU 778
2020 Goal Score | 800s


My AAoA: 3.8 years not incl. AU / 4 years incl. AU
My AoOA: 7.10 years not incl. AU / 9.10 years incl. AU
Inquiries: EX 0/6 | 1/12 ✦ EQ 1/6 | 2/12 ✦ TU 0/6 | 1/12
Report Status: Clean


Without patience, we will learn less in life. We will see less. We will feel less. We will hear less. Ironically, rush and more usually mean less.
Message 9 of 54
Donna71281
Frequent Contributor

Re: I'm hoping to rebuild my credit

@TMR SOL is 6 years. I live in NY. So I still have until Sept 2020. And same as you. My utilization is showing @ 113%. My balance is over my limit. The balance owed on account is $5880.

"As only New Yorkers know, if you can get through the twilight, you’ll live through the night"
Message 10 of 54
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