Rebuild Help and Suggestions

[Anonymous]

I'm another new person trying to rebuild my credit. My report has an old student loan that is 4 years old. It went into collections a long time ago as I was young and never new the long term repercussions of ignoring the debt. My tax returns just recently took care of the debt and the account now has 0$ balance. I also have an account that I missed payments on but has been paid off and closed for 5 years now. I have one judgement that has been paid off that is around 5 years old. Those 4 accounts because the student loan reports twice are the only negative items on my report. I have one auto loan that is about 4 years old that I paid off with a perfect record. I currently have an auto loan and personal loan with around a 20,000$ balance that I have been paying on for 2 years now and they both have perfect records. I have never had a credit card and these 7 accounts are the only credit history I have. The 4 accounts hurting my score have brought my score to around 575. My job security is really strong and my debt to income ratio is excellent. I bring in around 6000/month and my bills are 750$. Any help would be appreciated no matter how trivial or truthful the response may be as I am very green when it comes to credit. Thank you for your time.

[Anonymous]

Welcome to the forum!  You should go to the CapOne site to see if you prequalify for any of their cards. You definitely need 2 to 3 cards to bump your score up. 

[Anonymous]

Hello Ryan and welcome to MyFico! 

From reading around on this forum, writing a goodwill letter to the creditor could help you remove it from your report. I would say that would be the best way to have it removed, other than possibly hiring a company to do it for you; or just simply waiting for them to fall off.

Do you have many credit cards? If so, what?

[Anonymous]

In your opinion what kind of bump will I see and what kind of time frame am I looking at. I know it takes time to rebuild and I'm committed to the process but I'm just trying to get an idea.

[Anonymous]

I have never applied for a credit card those 7 accounts are the extent of my credit.

[Anonymous]

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@Anonymous wrote:
In your opinion what kind of bump will I see and what kind of time frame am I looking at. I know it takes time to rebuild and I'm committed to the process but I'm just trying to get an idea.

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When I started my rebuild last year I had zero credit cards, and a lot of other derogs...my score jumped from 538 to 574 in 1 month when my first NFCU secured card reported. 

[Anonymous]

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@Anonymous wrote:
I have never applied for a credit card those 7 accounts are the extent of my credit.

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Oh wow! *gasps for air*, you're going to love this place then.

What sort of bump? I would say anywhere in the range of 30-50+ points in the first 6 months. It is certainly going to help you greatly either way!

Once you see those baddies fall off, you'd be where you want to be with scores in the 700's.

I would apply for 2-3 secured credit cards if I was you. You want to start relationships with these CC companies as soon as you can. 

[Anonymous]

Ok that is significant. I had no idea that it could be that effective. I will start looking immediately. Thank you for your suggestions.

[Anonymous]

You already have an auto loan and a personal loan...so the credit cards would add revolving accounts to that mix and boost your scores. 

[Anonymous]

Any suggestions on a secured card that tailors to my situation. I know there are all kinds of forums on this so I apologize in advance. Just incertain to where I compare to the others that have asked the same question.