I've been rebuilding since May 2012, when I tried and failed to secure a car loan. At the time I had no credit cards, three paid on time student loans, and three paid collections ($18, $112, $127). From the attempted car loan, I had four inquiries on my credit report.
My first step was the apply for a Capital One secure card. I did no research about what card to get, thus why I got a Capital One (I knew Capital One gave credit to rebuilders). I put a $500 deposit on the card and ended up with a credit limit of 651.
Since my collections were so small, someone suggested a few months later that I write letters to get them removed from my credit report. I sent registered debt validations letters to all three collection agencies. One came back validated (a copy of the returned check), one sent me a screen shot of my account (and set a dispute flag on my credit report), the other was returned with a bad address.
I then tried Goodwill letters with two of the original creditors. Cox Communications denied the request and AEP Electric approved it, though they said it would take 60-90 days to get the record off my credit report.
The next month, I sent good will letters to the reporting collection agency. Mid Continential (Cox Communications) responded as if it was a dispute and referenced my last "Dispute". I have not heard back from Payalliance. I called both collecion agencies and made it as far as the Director of Collections. No go on a Good Will Removal.
After six months of paying in full each month, Capital One gave me a hundred dollar recredit increase. I made another deposit to bring my credit limit up to $1000. I have not applied for any more credit card companies; I am waiting for the AEP collection to be removed (90 days will be up next month).
I have one additional Inquiry in Dec. My cell phone contract was up and I wanted to switch to a new providers. Otherwise, I have no other inquiries.
My Next Step is to apply for the Walmart Card and possible the Amazon Store Card. After I move in a few months, I might apply for a card at the First Tech Credit Union (my soon to be new bank).
My goal in all of this is to be able to get a decent car loan and hopefully get a Chase Freedom Card or a Discover IT. Any advice about what I can do now is very much appricated. I'm a bit worried that my collections will kill my chances for a Chase Freedom Card for the next four years.
Easy to reference details about my situation
Number of Inquries: 6
May 2012 Inquries: 5
December 2012 Inquires: 1
Collections
MID CONTINENT CREDIT (Cox Communications - Kansas)
Amount: $112 (Paid)
Drop off Date: 09/2017
Note: All debt validations and goodwill attempts are considered as disputes (even when in the letter you stress it isn't a dispute).
CONVERGENT OUTSOURCING INC (American Electric Power - AEP)
Amount: $127 (Paid)
Drop off Date: 02/2019
Note: Goodwill letter sent to AEP and was accepted. Letter stated that it would take 60-90 days to remove. Still waiting for the record to be removed.
SECURITY CHECK/ Payliance (Papa Johns)
Amount: $18 (Paid)
Drop off Date: 02/2014
Note: No success with Goodwill, though I wasn't trying that hard due to it dropping off my report in a year.
Installment Loans
Two student loans with good payment history since 2008.
One student loan with good payment history since 2009.
Revolving accounts
One Capital One Secure Card with $1000
PIF each month.
You've done some pretty good work. All I would suggest right now is to continue the GW process. It might take a few, but I've had good outcomes from staying with the process. Good Luck!
July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge
Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
June 2017 update: All scores over 820, just pure gardening now.
I've been a bit hesitant to continue the GW process. I'm at the point where they reference my other letters. I've tried different addresses, different people, and different approaches, but it all seems to get funneled to the same person.
Though I guess it doesn't hurt to keep sending them letters. Give the collection agencies a little harrassment back. 
I've had the same thing happen to me. Say that they are reporting correctly, see.. blah, blah, blah,, then bam... It's just gone!
July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge
Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
June 2017 update: All scores over 820, just pure gardening now.
Just printed out new copies of my goodwill letters. I will continue sending them out every month until it gets removed or I run out of stamps.
I got a lot of stamps. 
So I just signed up for Credit Karma and it said that I have no collections on my TU report! How accurate is this? Does Credit Karma show collections in dispute?
I just bought my TU report from here and they show all of my collections still. The AEP collection should have been removed by now. Time to write a letter and refer my previous letter to see what is going on.
