Rebuild Advice

[Anonymous]

Hi all,

New here, looking for advice going forward. All advice is appreciated. Details below:

Signed up for CCT $1 trial today. Scores as follows:

Experian: Fico8: 655, Fico2: 704, FicoAuto8: 653, FicoAuto2: 717, FicoBankcard8: 645, FicoBankcard3: 721, FicoBankcard2 738

Equifax: Fico8: 638

TU: Fico8: 658 

Installment loans:

Student loans:

-7 closed (were sent to collections then rehabbed)

-7 open (current, no lates since being rehabbed 12/18)

-Secured Loan through my credit union - I opened this just to get some good payment history, but now I think I understand it's not really helping me, but I'm also unsure whether to go ahead and close it or not

-Super old Perkins loan that has shown as closed - in collections. Paid in full a couple weeks ago. Just waiting for the collection company to update the university and for them to update the bureaus.

-I have good history on an old auto loan that I think is getting ready to age off (Equifax shows close May 1,2011)

CC's

AU on two of my mothers cards (mainly helping age of accounts - she pays in full every month if used)

Cap 1 - 15 years, 4 mo

Sam's Club MC - 10 yrs, 2 mo

Discover It Cashback $1500 CL- just approved. Will probably set this up to pay rent ($1000) each month, pay down below 8% prior to statement, then pay in full after statement.

Long term goal: to build a good foundation to let age and get my scores up in the 750s

Short term goal: My car is going on 12 years old, so looking to purchase around Dec-Feb and would like to maximize scores to get the best rate possible. Just applied for an IBR plan on the student loans to help with monthly DTI ratio.

I think that's most of it. Feel free to ask, if I've left some important info out. I appreciate any help/advice you guys can give. TIA

[Guyatthebeach]

JP62278,

Welcome to the forum!  It looks like you are on the right track.

Personally since you have the student loans, I would pay off the secured loan after the 6th month mark. It will serve its purpose of being a positive payment history and PIF tradeline.

I would definitely see about getting on the IBR repayment program.  While you are doing that, I would also ask if the lender could remove the late payment notices off your CR.  The worst they will say is no. 

Is the Discover card yours or your mom’s? I would make sure that you let it report a 10% balance every month.  Also at the 6 month mark of positive payment history on your secured loan, check Capital One for a preaproval.  If they have a card with no annual free, take it.  

Guyatthebeach. 

[Remedios]

Do not apply for any more new credit until you're ready to buy a car. You dont want to keep dropping your scores and reducing AAoA. Let your accounts age. 

I'd wait till your scores are in better shape to apply for a car loan. You really do not want to get stuck with a higher than necessary interest on an expensive item. It's easier to wait a little than having to refinance and start all over

Most car dealerships will pull either fico 8 classic or fico 8 auto, so those are the scores you should focus on. Bankcard scores wont be used for this purpose. 

[Anonymous]

Discover card is mine.

Student loans are federal so I'm not sure there's any hope of removing lates. I'll Google some more and see if anyone's having luck with that.

Secured loan was opened at the end of January so the payment this week will mark 6 months. Will go ahead and close it a few days later. I'm guessing I will take a hit to my scores once closed, do you think it will bounce back by December?

I was playing around on Capital One Auto Navigator last night and was pre-approved for rates as low as 4.08%. I really just wanted to see where I was at to know what to expect when I'm ready to buy. Honestly, I know it's not a great rate, but I was shocked to see it so low. Now just gotta see if I can get it lower.

[Anonymous]

I wouldn’t sweat the points from closing the secured loan since you have other loans reporting. Any point loss should be minimal, likely just a couple if any, and should bounce back quickly.

[Guyatthebeach]

To be honest, you should not get a hit on Fico score if you pay the secured loan off early. You should get a little of bit of an increase as you paid off a trade line and improved your debt to income ratio.

I would revisit the car loan after you get your students loans on the IBR program. The more positive payment history you have with the student loans should help you out a lot.

Guyatthebeach

[FireMedic1]

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@Anonymous wrote:

Hi all,

New here, looking for advice going forward. All advice is appreciated. Details below:

Signed up for CCT $1 trial today. Scores as follows:

Experian: Fico8: 655, Fico2: 704, FicoAuto8: 653, FicoAuto2: 717, FicoBankcard8: 645, FicoBankcard3: 721, FicoBankcard2 738

Equifax: Fico8: 638

TU: Fico8: 658 

Installment loans:

Student loans:

-7 closed (were sent to collections then rehabbed)

-7 open (current, no lates since being rehabbed 12/18)

-Secured Loan through my credit union - I opened this just to get some good payment history, but now I think I understand it's not really helping me, but I'm also unsure whether to go ahead and close it or not You can close it out. The student loans are considered instalment loans. So closing it wont do much at all to your score. Wont affect AAoA's for 10 yrs after closing.

-Super old Perkins loan that has shown as closed - in collections. Paid in full a couple weeks ago. Just waiting for the collection company to update the university and for them to update the bureaus. Once completed ask for GW deletion.

-I have good history on an old auto loan that I think is getting ready to age off (Equifax shows close May 1,2011) Should be on your reports until 2021.

CC's

AU on two of my mothers cards (mainly helping age of accounts - she pays in full every month if used)

Cap 1 - 15 years, 4 mo

Sam's Club MC - 10 yrs, 2 mo

Discover It Cashback $1500 CL- just approved. Will probably set this up to pay rent ($1000) each month, pay down below 8% prior to statement, then pay in full after statement.

Long term goal: to build a good foundation to let age and get my scores up in the 750s

Short term goal: My car is going on 12 years old, so looking to purchase around Dec-Feb and would like to maximize scores to get the best rate possible. Just applied for an IBR plan on the student loans to help with monthly DTI ratio. Excellent. Hope it goes thru.

I think that's most of it. Feel free to ask, if I've left some important info out. I appreciate any help/advice you guys can give. TIA

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Seems your headed in the right direction. If the SL's can be rearrainged, get that CA deleted. That will help a lot. Good Luck!

[Anonymous]

Just a quick update:

I've made some progress. IBR for the student loans was granted. Paid off secured loan through my CU (not reporting yet).

Discover started reporting ($65/1500) which resulted in a whopping 73 pt increase on Experian and similar number on TU! 

So currently I'm sitting at Ex 728 Eq 679 TU 719!  

Overall, I'm pretty amazed and satisfied thus far. Unfortunately, I think I'm now at a point that's going to be slow going. 

The only items that remain are for the charged off Perkins loan (experian) and secured loan through my credit union to report as PIF. I'm guessing neither should result in significant increases. Was kinda hoping to get into the 750's prior to buying a car but I think I'm ok where I'm at. Or, at least, can't delay purchase long enough for time to do it's thing. 

After car purchase, I plan to go ahead and get two more credit cards and let them grow.

Thanks for the support. Any advice is welcome and appreciated. This is an awesome community!