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Looking for help with rebuild strategy

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Heatles2012
New Member

Looking for help with rebuild strategy

Ok so back in 2016 I took out many many credit cards. I was looking to start a business with a buddy of mine. Things didnt work out but I was still left with over 80k of unsecured debt (35k in loans and 45k spread out over like 9 cards). The original plan was to file chapter 7, but I figured i'd wait till im presented with legal action from one of these creditors before I do that. Well I dont know if it was because of the pandemic or what, but in a stroke of pure luck not a single lawsuit was filed. I am now beyond the SOL for all my debt. I've just been buying everything cash for the last 5 years and not touching anything credit related.

 

So as you can imagine, I have a bunch of chargeoffs and collections on my CR. As of last month my CS was 486. I enrolled in one of those services that reports your rent to a couple bureaus and paid off the car that a was financing since 2017 and the next week my scored went to 560 (these scores are all from CreditKarma so I know my real credit score is really lower than even these scores). Thing is, I'd like to get it north of 600 for now. I know I probably wont get 700+ with all these chargeoffs and collections on my CR, but im willing to wait 2 more years for this stuff to fall off anyway.

 

Would getting a secured card help me much? Whats the best way to rebuild my credit as I wait for these charge offs and collections to go away? Or am I stuck at sub 600 till 2024?

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3 REPLIES 3
TheKid2
Frequent Contributor

Re: Looking for help with rebuild strategy

If you're not willing to deal with the CAs and COs, there is nothing that will really help your score. It's a viable strategy to wait until it all falls off as that will certainly save you money and it is especially attractive if you're outside the SOL not risking legal action.

 

With Early Exclusions, you may not even need to wait 2 years. What was the Date of First Deliquency? That is the date against the 7 year clock, which can be cut by months with EE. If it's early 2016, you could be looking at getting stuff off at the end of this year.

 

As long as you don't NEED credit, I'd just wait at this point and get ready for your EE requests. Until then keep your open accounts clean and don't worry about any "boost", which will not change the FICO credit scores that matter.

 

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rmduhon
Valued Contributor

Re: Looking for help with rebuild strategy

Your actual Fico scores could be higher than your CK scores. Currently my CK scores are about 50 points lower, so the only way to truly know what your fico scores are is to get them from somewhere that has them. 

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Heatles2012
New Member

Re: Looking for help with rebuild strategy

Thanks for your response.

 

Date of FD  for most of my accounts is Mar and Apr 2017. Ive never heard of EE. Thanks for the heads up!!

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