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New to Forum. Ready to rebuild credit and move on with life!

Established Contributor

Re: New to Forum. Ready to rebuild credit and move on with life!

+1

 

Really if you can, build your credit with Banks, make your goal be reward cards in the future, like Capital One graduating and paying you 1.5% on every purchase, Discover 1-5% cash back also. Store cards are for the most part, low lines of credit, not good at credit increases. 

 

Even for people who open their first revolver with a store card vs a bank card, affects the Lexis Nexis reports for auto insurance, but that is a whole other story. Just that same that consumer finance loan (ie, Main Street Finance Company)vs. loan through banks also has a bit of an impact on your credit.  

Starting Score: 2/23/2017 Score 8 EQ 651 TU 659 EX 679
Current Score:09/23/2018 Score 8 EQ 809 TU 828 EX 810
Mortgage Scores 09/23/2018 EQ 775 TU 787 EX 783
Goal Score: 760+ ATB FICO 8-Achieved 4/2018, Middle Mortgage Score 782-Achieved 760+ 2/2018
Message 11 of 23
Established Contributor

Re: New to Forum. Ready to rebuild credit and move on with life!

Are these your Vantage scores or Fico? With the number of baddies you have, I would expect your Fico to be in better shape. Are their any lates or other derogs not listed?

 

As far as the student loan hurting, it's hurting now. since it's in deferment, the interest is adding to the balance and increasing your utilization each month. If you can afford to start making payments on it, you should start paying on it to bring that balance down and building positive payment history. If this is a federal loan, then check out the different payment options you may have on the student loan site. Its got to be paid at some point anyway, may as well save you some interest dollars.

 

You do need to add some more open positive tradelines to offset the chargeoffs. Then see what you can do about getting the chargeoffs settled with possibly a PFD or at least paid so they stop dinging you with updates each month.

Started Rebuild 4/2018: EX 616| TU 604| EQ 621

Current 12/8/18:


Goal Score: 750+
Message 12 of 23
New Member

Re: New to Forum. Ready to rebuild credit and move on with life!

My FICO according to Wells Fargo is 500. Should I get those collections setup before I look at open sky and Discover IT? My ultimate goal here is to get a rewards card that gives gas points. Also, what and how do I do a SL?
Message 13 of 23
Regular Contributor

Re: New to Forum. Ready to rebuild credit and move on with life!

I have found that Credit Unions are the best SL to get and it helps you build a Banking relationship as well as rebuild your credit.  Good luck with your journey.







Message 14 of 23
New Member

Re: New to Forum. Ready to rebuild credit and move on with life!

Update to my short progress:
Talked to NFCU and setup two settlement lumpsums. And talked to AFNI. After 30 days AFNI requests the account be deleted off the report. I also applied for the Discover it card and got approved just have to do my deposit. Which card should I use to carry the balance? I like my CapOne card so far but I don’t really get any rewards. Their online interface are easy to use. Are there other cards besides the OpenSky that is good? Can I get another CapOne secured? Thanks guys!
Message 15 of 23
Established Contributor

Re: New to Forum. Ready to rebuild credit and move on with life!


@LaTortugaMTB wrote:
Update to my short progress:
Talked to NFCU and setup two settlement lumpsums. And talked to AFNI. After 30 days AFNI requests the account be deleted off the report. I also applied for the Discover it card and got approved just have to do my deposit. Which card should I use to carry the balance? I like my CapOne card so far but I don’t really get any rewards. Their online interface are easy to use. Are there other cards besides the OpenSky that is good? Can I get another CapOne secured? Thanks guys!

You generally want 1 to report a balance, not carry a balance, as you will be paying interest. You can alternate between Cap 1 and Discover, just make sure you use both each month. I've had no purchase and zero balance on a Cap 1 once, and they didn't report a pay history for that month. The key is to use wisely, low utilization, whichever one reports (optimal less than 8.9% of it's credit line), PIF after statement, and repeat. 

 

How is the share secured loan coming along? If you have zero installments, this will give you a good bump in credit mix. Best to use the ones on topic here, that will lend a small amount (say $500), but put it on a 5 year term, that will accept a large payment (about $450) without applying to principal and shooting your due date 4 years into the future by paying it under 8.9 % also. 

 

Is your Cap One not giving the 1.5% cashback? If not you can with a good history of about 7-9 months will graduate to unsecured and try for product change to the cash back. 

Starting Score: 2/23/2017 Score 8 EQ 651 TU 659 EX 679
Current Score:09/23/2018 Score 8 EQ 809 TU 828 EX 810
Mortgage Scores 09/23/2018 EQ 775 TU 787 EX 783
Goal Score: 760+ ATB FICO 8-Achieved 4/2018, Middle Mortgage Score 782-Achieved 760+ 2/2018
Message 16 of 23
Regular Contributor

Re: New to Forum. Ready to rebuild credit and move on with life!

DollyLama,

Can you explain this please because I am not sure about the direction you are going with this?

 

How is the share secured loan coming along? If you have zero installments, this will give you a good bump in credit mix. Best to use the ones on topic here, that will lend a small amount (say $500), but put it on a 5 year term, that will accept a large payment (about $450) without applying to principal and shooting your due date 4 years into the future by paying it under 8.9 % 

Thanks







Message 17 of 23
New Member

Re: New to Forum. Ready to rebuild credit and move on with life!

Just a quick update!

I’m working to get my derogatoria taken care of and paying everything. My CapOne reported and my Equifax score went up to 600. That’s pretty exciting to me. I want to keep my credit useage and applications low. I’m thinking about financing my next mountain bike just to get a long term revolving account going. They go through Affirm which is synchrony. At what time and score do you guys estimate I should apply? I’m getting my discover card in the mail soon and going to do a self lender CD as well.
Message 18 of 23
Established Contributor

Re: New to Forum. Ready to rebuild credit and move on with life!

I don’t know about Affirm but I’ve seen data points about other Synchrony offerings here that suggest a 660 minimum before applying (such as Lowe’s). Their standards for Affirm may or may not be the same. If you’re doing a Self Lender though, that loan is the only one you really need - no need for two installments for scoring purposes.
Rebuild commenced 5/2018

AmEx Delta Skymiles Gold | AmEx Hilton Honors | Discover IT | Target | VS | Home Depot | CapOne QuickSilver | Wayfair | Kohl’s | Indigo Plat (RIP 2/2019 before AF comes due)



Message 19 of 23
Frequent Contributor

Re: New to Forum. Ready to rebuild credit and move on with life!


@LaTortugaMTB

Closed accounts

NFCU Auto Loan, $6,840 paid on time in full in 2015

NFCU Auto Loan, $12,014, paid on time in full October 2017

NFCU  Credit card (Charge off)  $1,135, 2016 charge off date

NFCU Personal loan $300 paid in full on time

NFCU Personal Loan $500 paid in full on time



Did you ask Navy about going forward with them if you do pay them off?  It would be great to save that relationship.  Their secured card and SSL would be good to rebuild.


Rebuilding from a sudden, swift and complete credit disaster in early 2014 | Starting Scores 2017 = Low 400's
Message 20 of 23