New to This Site

[Anonymous]

Hello there,

I finally decided to make an account after lurking the forums for a while. Ive found these forums to be a wealth of information and I'm hoping if someone could offer guidance. My husband and I are planning to buy a car in a few months when we pay off our current auto loan and buy a house some time next year or later and are looking to repair my credit.

Essentially, I have little credit and the TLs i do have are pretty much negative.

• I have a loan with the Dept of Ed that Ive just resumed payments on, after being in deferment, and have signed up for automatic payments.
• I have a collection account with Credit Bureaus of America from Charter Communications, from earlier this year in which i completely forgot to pay after we moved. Ive disputed with TU and its been removed and have recently disputed with the other CRAs. If this works, I still plan to pay Charter because i dont want them to start the collection process over. If it doesn't work,  I'm not sure if i should try pay the OC and have them recall the account or try a PFD with CBA.
• I have two medical accounts in collections with Paramount Recovery from 2014, which I plan to PFD.
• I have a collection account with Midland Funding in 2013 from TMobile, which I have sent a TX DV letter. I had a prepaid flex account with TMobile at the time and not sure how I incurred charges when i switched carriers.
• I have a collection account with Enhanced Recovery for Sprint in 2011. Ive sent a TX DV letter to them. I have no idea where this account came from. Ive never had Sprint.
• I have a closed account from Capital One showing paid as agreed and closed by consumer from 2011. It shows late payments.

Ive been added to 2 of my husbands credit cards as an authorized user, these are low limit ($300) with low utilization ratios.

I'm not sure if I'm taking the right steps. Any feedback would be much appreciated.

Thanks

[Anonymous]

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@Anonymous wrote:

Hello there,

I finally decided to make an account after lurking the forums for a while. Ive found these forums to be a wealth of information and I'm hoping if someone could offer guidance. My husband and I are planning to buy a car in a few months when we pay off our current auto loan and buy a house some time next year or later and are looking to repair my credit.

Essentially, I have little credit and the TLs i do have are pretty much negative.

• I have a loan with the Dept of Ed that Ive just resumed payments on, after being in deferment, and have signed up for automatic payments.
• I have a collection account with Credit Bureaus of America from Charter Communications, from earlier this year in which i completely forgot to pay after we moved. Ive disputed with TU and its been removed and have recently disputed with the other CRAs. If this works, I still plan to pay Charter because i dont want them to start the collection process over. If it doesn't work,  I'm not sure if i should try pay the OC and have them recall the account or try a PFD with CBA.
• I have two medical accounts in collections with Paramount Recovery from 2014, which I plan to PFD.
• I have a collection account with Midland Funding in 2013 from TMobile, which I have sent a TX DV letter. I had a prepaid flex account with TMobile at the time and not sure how I incurred charges when i switched carriers.
• I have a collection account with Enhanced Recovery for Sprint in 2011. Ive sent a TX DV letter to them. I have no idea where this account came from. Ive never had Sprint.
• I have a closed account from Capital One showing paid as agreed and closed by consumer from 2011. It shows late payments.

Ive been added to 2 of my husbands credit cards as an authorized user, these are low limit ($300) with low utilization ratios.

I'm not sure if I'm taking the right steps. Any feedback would be much appreciated.

Thanks

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Get the sprint account removed using FCRA 605B, ID Theft Provision.

Get yourself 3 credit cards as soon as you can. I'd start with couple of Capital One cards.

[Anonymous]

I will look into the theft provision. Thanks!

[Anonymous]

Welcome to the myFico forums!

I am going to elaborate on what NormanFH said:

The Fico algorithms look for 3 or more revolving accounts (CCs) and the best score bumps will come from having 2 report as 0 and 1 report at 9% or less, but not zero.

It doesnt matter if they are secured CCs or unsecured, just that they report to all 3 CRBs and are in good standing.  It also doesnt matter what the CLs are at this point - meaning if you get a secured card, it doesnt have to be funded at 10k, 500 or even 250 will do. You do need to use them to show usage and egt a UTI calculation. 

It also looks for 1 or more installment loans, like an auto, but any installment will do.  Also a mortgage, and you said that was a goal.

Time is your friend to show good responsible use.  If you have a late, it will have less effect at 1 yrs, then less at 2 yrs, etc.

Any baddie you can get eliminated is a good thing.  A paid collection or CO is better than an unpaid.  If you determine it is likely impossible to get a PFD, then 'legally paid for less than full' is better than not paid.  Some creditors will let you back in if you did a PIF, some will let you back in with a settled account, some will never let you back in.

GL

[Anonymous]

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@Anonymous wrote:

Welcome to the myFico forums!

I am going to elaborate on what NormanFH said:

The Fico algorithms look for 3 or more revolving accounts (CCs) and the best score bumps will come from having 2 report as 0 and 1 report at 9% or less, but not zero.

It doesnt matter if they are secured CCs or unsecured, just that they report to all 3 CRBs and are in good standing.  It also doesnt matter what the CLs are at this point - meaning if you get a secured card, it doesnt have to be funded at 10k, 500 or even 250 will do. You do need to use them to show usage and egt a UTI calculation. 

It also looks for 1 or more installment loans, like an auto, but any installment will do.  Also a mortgage, and you said that was a goal.

Time is your friend to show good responsible use.  If you have a late, it will have less effect at 1 yrs, then less at 2 yrs, etc.

Any baddie you can get eliminated is a good thing.  A paid collection or CO is better than an unpaid.  If you determine it is likely impossible to get a PFD, then 'legally paid for less than full' is better than not paid.  Some creditors will let you back in if you did a PIF, some will let you back in with a settled account, some will never let you back in.

GL

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Thanks!