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Newbie in every way!! help

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Anonymous
Not applicable

Newbie in every way!! help

Hi, 

 

I'm new to the forum so hello everyone.

I need guidance as I have no clue on credit scores and how to build a good credit. The only thing I know is that mine is pretty bad, however I know that with the right guidance I will be able to boost my 405 score (ouch!)

Some facts:

1. Although I'm american, I spent most of my life overseas. I moved back 3-4 years ago so my oldest accounts is only 2.5 years old

2.I have 2 open accounts with some student loan debt ($4280 total) and the minimum payment is like $30, but I neglected the whole thing all together so I have been late on payments

3. I have 2 derogatory marks (medical: one for $80 that I already paid and 2nd one for $300 in another bill which I recently paid)

4. I have ZERO credit cards. I recently applied for Sky open one which was approved but is that type of Credit cards where you have to make a deposit. That's the only I was able to get, still waiting on the mail.

 

So besides paying my collections in total, start making on time payments for my student loans, get a credit card use it and pay it on time, base on my circumstances (above) what else can I do. 

I'm a 100% aware this will be not be sprint but a marathon and it will take time (I'm not in a hurry either) but base on my current circunstances how I can boost and build a decent credit score?

Thank you for all your help

 

Message 1 of 4
3 REPLIES 3
gdale6
Moderator Emeritus

Re: Newbie in every way!! help


@Anonymous wrote:

Hi, 

 

I'm new to the forum so hello everyone.

I need guidance as I have no clue on credit scores and how to build a good credit. The only thing I know is that mine is pretty bad, however I know that with the right guidance I will be able to boost my 405 score (ouch!)

Some facts:

1. Although I'm american, I spent most of my life overseas. I moved back 3-4 years ago so my oldest accounts is only 2.5 years old

2.I have 2 open accounts with some student loan debt ($4280 total) and the minimum payment is like $30, but I neglected the whole thing all together so I have been late on payments

3. I have 2 derogatory marks (medical: one for $80 that I already paid and 2nd one for $300 in another bill which I recently paid)

4. I have ZERO credit cards. I recently applied for Sky open one which was approved but is that type of Credit cards where you have to make a deposit. That's the only I was able to get, still waiting on the mail.

 

So besides paying my collections in total, start making on time payments for my student loans, get a credit card use it and pay it on time, base on my circumstances (above) what else can I do. 

I'm a 100% aware this will be not be sprint but a marathon and it will take time (I'm not in a hurry either) but base on my current circunstances how I can boost and build a decent credit score?

Thank you for all your help

 


On the 2 paid medicals you want to write a goodwill letter to the reporting CAs and ask that it be deleted.

 

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/GW-letter-Q-amp-A-Examples-and-GW-Success-Stories/td-p/1573680

 

Keeping current on the SLs will help over time and you need a total of 3 open revolving accounts to drive your Fico score so 2 more are needed. I would try to get the Capital One Secured and you can check with your local CUs to see if they have a secured rebuilder as their requirements for a card are typically a lot looser than a commercial bank. Welcome to the board and good luck Smiley Happy

Message 2 of 4
Anonymous
Not applicable

Re: Newbie in every way!! help

In addition to the secured card, diversifying your accounts with a revolving credit line can also help. A loan from a local company that reports to TU helped me by about 80 points over 6 months. SelfLender is another option and is accessible online. Certain furniture companies like Badcock and Farmer's also issue low-score Lines of Credit. The drawback here is going to be sky-high interest rates, but the goal is to boost the score to qualify for better rates down the road, right? I'm not a credit expert or professional, so take my advice acordingly. My knowledge came from experience; I've bounced back from a bankruptcy AND a foreclosure, going from 415 to 620 in about a year. I also still have several negative tradelines I'm working on, including student loans and medical debt.

Message 3 of 4
dynamicvb
Valued Contributor

Re: Newbie in every way!! help

What are the lates on the student loans and how old are they? You may want to check into getting it rehabbed as that will help.

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

Current 5/28/20:


First Goal Score: 750+ Reached 3/2019

Next Goal all over 800
Message 4 of 4
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