Long time lurker, second time rebuild

[Seang239]

I'd like to start by thanking everyone for the incredible trove of information this forum contains. The time you all spend in these forums giving advice is changing peoples lives.

I joined 2 1/2 years ago when I originally began my rebuild journey. I went from a low 400's (basically no credit besides a few old collections) to 608 in the span of 1 1/2 years following the advice presented in these threads. My income was impacted last year and I now find myself back down to mid/high 400's. Everything was great until July 2021. Here's where I'm at, comments/advice welcome:

Fico 8 on 2/7/22:

EQ-462 TU-485 EX-482

My Accounts:

CapitalOne Qs opened 11/19. All payments through 6/21 on time.

Charged off 12/21 with 150 day deliq.

Bal $942/$500 limit. 188% util.

CapitalOne Plat opened 7/19. All payments through 6/21 on time.

Charged off 12/21 with 150 day deliq.

Bal $461/$1,300 limit. 35% util.

Discover IT opened 10/19. All payments through 6/21 on time.

7/21 through 10/21 went 30, 60, 90, 120 day late. Worked an agreement, reporting current from 11/21 to present.

Account open and current, card suspended. Their system checks monthly to see if they'll un-suspend my card.

Bal $2,173/$2,500 limit. 87% util.

Navy Fed Cash Rewards Opened 8/19. 30 day late 8/21, everything else current.

Account open and current.

Bal $5,159/$5,000 limit. 103% util.

Chrysler Capital opened 1/20. On time all of 2020. Only paid 2/21 and 3/21, missed every other payment.

Charged off 10/21. No repo, kept in garage.

Bal $45,565.

Navy Fed Shares Pledged loan opened 8/19. Closed 9/20.

$6,500 loan, all paid ontime.

The Equitable Finance Company opened 2/14. Closed 6/14.

$6,301 car loan, paid on time, and paid off, 4 months after purchase.

Navy Fed Shares Pleged loan opened 2/22. Not reporting yet.

$3,500, paid down to $300 bal the following day. I just opened this becase I didn't have an installment loan since Chrysler stopped reporting to the bureaus after 10/21. I wanted to get the points for having an installment loan.

Collections:

Receivable Management / Progressive

$355. Assigned 8/21.

Medical Data Systems Inc.

$2,562. Assigned 4/21.

Online Information Service / Duke Energy

$374. Assigned 10/16.

AU Accounts:

Home Depot/CBNA opened 10/19. 30 day late 8/21, everything else on time and current.

Bal $282/$400 limit. 71% util.

Belk/Syncb opened 02/18. All payments on time and current,

Bal $247/$1,700 limit. 15% util.

CapitalOne Plat opened 07/19. 30 day, then 60 day late on 7/21 and 8/21, everything else on time and current.

Bal $1,265/$1,300 limit. 97% util.

Navy Fed Cash Rewards opened 08/19. All payments on time and current.

Bal $6,143/$5,900 limit. 104% util.

Navy Fed Shares Pleged Loan opened 8/19. Closed 8/20.

$5,500 loan, all paid on time.

[Cowboys4Life]

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@Seang239 wrote:

I'd like to start by thanking everyone for the incredible trove of information this forum contains. The time you all spend in these forums giving advice is changing peoples lives.

I joined 2 1/2 years ago when I originally began my rebuild journey. I went from a low 400's (basically no credit besides a few old collections) to 608 in the span of 1 1/2 years following the advice presented in these threads. My income was impacted last year and I now find myself back down to mid/high 400's. Everything was great until July 2021. Here's where I'm at, comments/advice welcome:

Fico 8 on 2/7/22:

EQ-462 TU-485 EX-482

My Accounts:

CapitalOne Qs opened 11/19. All payments through 6/21 on time.

Charged off 12/21 with 150 day deliq.

Bal $942/$500 limit. 188% util.

CapitalOne Plat opened 7/19. All payments through 6/21 on time.

Charged off 12/21 with 150 day deliq.

Bal $461/$1,300 limit. 35% util.

Discover IT opened 10/19. All payments through 6/21 on time.

7/21 through 10/21 went 30, 60, 90, 120 day late. Worked an agreement, reporting current from 11/21 to present.

Account open and current, card suspended. Their system checks monthly to see if they'll un-suspend my card.

Bal $2,173/$2,500 limit. 87% util.

Navy Fed Cash Rewards Opened 8/19. 30 day late 8/21, everything else current.

Account open and current.

Bal $5,159/$5,000 limit. 103% util.

Chrysler Capital opened 1/20. On time all of 2020. Only paid 2/21 and 3/21, missed every other payment.

Charged off 10/21. No repo, kept in garage.

Bal $45,565.

Here are my thoughts:

You need to look at possibly settling the Cap1 and Discover accounts.  They are 2 of the top 3 aggressive creditors that will sue and will win.  They are also forgiving and can help rebuild.  

As for the car/Chrysler:  you need to look at turning that car in.  It has to be out for repo and intentionally concealing the car could lead to criminal charges for doing so.  If you are still driving it do not underestimate their ability to track it and grab it when it is least convenient for you.  

Once you deal with those items you can concentrate on rebuilding and dealing with the rest of the negative information.

[FireMedic1]

Before we begin. How much do you have to work with? The AU accounts. If your the AU. Get off them ASAP.

[FireMedic1]

I re-worked your accounts:

CapitalOne Qs opened 11/19.

Charged off

Bal $942/$500 limit.

CapitalOne Plat

Charged off 12/21

Bal $461/$1,300 limit.

Discover IT opened 10/19.

Worked an agreement. Card suspended.

Bal $2,173/$2,500 limit. 87% util.

Navy Fed Cash Rewards Opened 8/19.

Account open and current.

Bal $5,159/$5,000 limit. 103% util.

Chrysler Capital

Charged off 10/21. No repo, kept in garage.

Bal $45,565. Turn it in. Or. Todays market you might be able to sell it to PIF.

I removed the perfect payment lines. Thats expected for all of us to do. We can help. Lets see what you got to tackle these baddies.

[Seang239]

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@Cowboys4Life wrote:

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Here are my thoughts:

You need to look at possibly settling the Cap1 and Discover accounts.  They are 2 of the top 3 aggressive creditors that will sue and will win.  They are also forgiving and can help rebuild.  CapitalOne offered to reduce the amount for both by $300. I'm not sure saving $300 is worth having it show settled for reduced amount instead of "paid in full" on my report. I'm leaning towards paying it in full.

Discover isn't threatening me with anything. They're current and reporting as a good account. The issue is they have my card suspended. When I call, they tell me their system checks once per month to see if I meet their eligibility for the card to be un-suspended. I'm suspecting my truck note combined with the Cap1 charge off's are why my card is suspended. I believe once Cap1 accounts show as PIF, and my truck reports as being PIF, my card will un-suspend itself.

As for the car/Chrysler:  you need to look at turning that car in.  It has to be out for repo and intentionally concealing the car could lead to criminal charges for doing so.  If you are still driving it do not underestimate their ability to track it and grab it when it is least convenient for you.  I spoke to my local dealer and they made me an offer. I'm selling it for $50k on the nose which gives me roughly $4500 to put towards my other baddies. I put down $15k when I purchased the truck, it isn't upside down.

Once you deal with those items you can concentrate on rebuilding and dealing with the rest of the negative information.

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[Seang239]

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@FireMedic1 wrote:

I re-worked your accounts:

CapitalOne Qs opened 11/19.

Charged off

Bal $942/$500 limit.

CapitalOne Plat

Charged off 12/21

Bal $461/$1,300 limit.

Discover IT opened 10/19.

Worked an agreement. Card suspended.

Bal $2,173/$2,500 limit. 87% util.

Navy Fed Cash Rewards Opened 8/19.

Account open and current.

Bal $5,159/$5,000 limit. 103% util.

Chrysler Capital

Charged off 10/21. No repo, kept in garage.

Bal $45,565. Turn it in. Or. Todays market you might be able to sell it to PIF.

I removed the perfect payment lines. Thats expected for all of us to do. We can help. Lets see what you got to tackle these baddies.

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Thanks.

Between DW and I, we have $2k-ish per month we can use. The AU accounts I listed are DW accounts with me as AU. My truck will be sold this afternoon and I'll have roughly $4500 that I plan to use to pay in full the Cap1 accounts and pay down the Discover and NFCU trade lines.

Since my Cap1 accounts charged off, I now only have 2 revolving accounts in my name. I'm thinking I'll wait until Chrysler reports as PIF and then both Cap1 reports as PIF to apply for a 3rd revolving line. I'm not sure what paying those off will do to my fico or whether it will be enough to re-apply to Cap1 for another card.

[FireMedic1]

BTW. Welcome.

I'd payoff Discover. Your over the limit. Plus it isn't closed or in CO status. You can save that account. They dont have anything to do with the car stuff being suspended. You have 2 accounts open. Then work on paying off NFCU whatever is left over. And make timely payments till its down to $0. Tons of interest saved paying. There is no interest in CO's. They already been written off. Sock drawer the cards and dont use them. Then work on settling the CO's. At the same time the DW's balances have to come down.

You asked for help and we'll go out of our way to do so. But from what you posted. The 2 of you have what I call swipe fever. You dont need more credit right now. You have to fix whats broken first. Then scores will rise and then you can try for a 3rd card. Once all the accounts are back under control on both sides. You'll have to live by, if you cant pay it. Dont charge it. Emergencies only. Paying interest is throwing money away. And if its cash back card and you pay interest. Well there goes your cash back. Not being mean or anything like that. But its time to hit the reset button. Best of luck on your journey back to financial freedom.

[RSX]

agreed to all previous notes

my additional notes

you seem concerned with your Credit Score, when you have much bigger items to address - address those issues, and your score will follow

(i am referencing you opening a Loan, so that you can have an Installment Loan on your acct - that is done, so fine, but don't focus on those advanced Credit items until you sort the rest - similar to looking for a 3rd card for a credit mix - that is down the road - not in the near term)

drop yourself from ALL of the AU items

don't worry about a note on Cap1 (or any card) saying Settled for Less - that $300 is way important to you than a note on a CRA that most here say is NOT a factor at all - so don't pay extra for a note on a file

pay down should be your focus - get those overlimit CC's paid down as quickly as possible - stop using them for sure, fix all credit problems before moving onto AZEO/Loan mix/Revolver mix

you know you can do this, since you have in the past

Good Luck to You!