Hello everyone!
I have been reading the forums now for the last few months as I began my credit rebuilding journey and have hit a point where I feel some specified advice will be benifical. Thank you to everyone’s posts and topics I have read in the past that really encouraged me to get this ball rolling!
When I first started I had never had a credit card, installment loan or any payment history whatsoever. I had 4 derogatory marks on my credit and my FICO score would not even register while Trans Union and Equifax were in the sub 500’s.
Since then I have taken these steps..
- Paid off (no PFD was offered) 3 of 4 derogatory marks.
- Opened secured Discover Card (July 2017) w/ $300 CL
- Opened Credit One Bank CC (October 2017) w/ $550 limit
- Opened Opportunity Financial Installment Loan (December 2017) for $4,000
Since then I have made 100% of all payments on time (18 total).
Have a utilization rate of 2%
My FICO (via Discover App) is now at 612.
I plan to pay off my last derogatory mark this month (bringing my total to zero).
My current inquiries are high at (9) with Equifax and 6 of these are leasing offices as I have moved a total of 4 times in the last two years (work relocation). The other 3 are from Discover, Credit One, Opportunity Financial.
Here are my points I would like to inquire on..
1 - I would like to pay off my installment loan in full as the interest rates are extremely unfavorable and I have the funds available to do so. (Balance is $3,600 as majority of payments made *$700 per month have gone towards interest). My issue is that I would like to have an installment loan open as I know this is a big boost to credit rebuilding as I have never had one before. Does anyone have experience with OPP? Is it possible to pay down a majority of the balance and keep loan open at a lower monthly payment to keep it active?
2 - I would like to establish credit with American Express specifically in the future. At what target should I set before attempting to get credit Opened with them and what’s a good starting CC for those like myself with extremely limited credit history (length of time) but perfect payment history and no derogatory marks?
3 - Anything to know before settling my final derogatory mark (Verizon Wireless, Claimed 2014).
Thanks everyone!
