Rebuilding Log - Lets go! OMW to 700!

[lamplight2012]

Hello, all.

As of 02/21/2017 the main post has been updated. My journey started back in 2012 when I became frustrated with credit, and always being denied. Especially when I needed $$$ for a lawyer to fight for my son who was taken away. After 5 long years I'm finally back on my feet, and now I'm omw to 700!

My scores back when I started were: New Scores in sig.

EXP: 602, TU: 584, EQ: 604

Debt:

Child Support: 3K(Down from 11K)

Student Loan: 7K(Down from 9K)

Medical Collections: 10 - Following HIPPA Process to remove.

[Anonymous]

I would check the Cap1 prequalification site to see if they have any unsecured cards you might qualify for. They have a good secured option as well. I went with OpenSky for my secured card. The no credit check for approval was what drew me in. When I started after my BK7, I didn't want a denial, so went with the one that was pretty much guaranteed. Only a $200 minimum deposit and a $29 annual fee. It will never graduate to an unsecured card though, so if you want something that graduates, that is not one to go with. Good luck!

[lamplight2012]

Thanks for the response, Cruznmore.

After looking into it briefly it looks like the OpenSky is good, but like you said it doesn't graduate. I still may look into it.

Question: Should I clean up the collections before I apply for a secured credit card that does a credit pull? I'm looking at the Bank Of America Secured Card, and it looks like it does a credit pull on Experian. I just found these requirements from another thread

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To be eligible for a secured account, you must meet the following requirements: Bank Of America Secured CC

Minimum age 18

Must be an U.S. citizen or permanent resident with a valid social security number or Tax payer I.D. number with a US mailing address (for nonresident alien, refer to Non-Resident Alien policy)

No Unpaid Bank of America charge-off

No Bankruptcy No Repossession (voluntary or involuntary) < 36 months

No Foreclosure (includes deed in lieu) < 36 months

No known unpaid charge-off accounts > $1000 with any financial institution including retail cards and student loans < 36 months

Does that mean that any debt above $1,000 disqualifies you? Or does 'charge-off' mean credit cards, auto & student loans?

[Anonymous]

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@lamplight2012 wrote:

Thanks for the response, Cruznmore.

After looking into it briefly it looks like the OpenSky is good, but like you said it doesn't graduate. I still may look into it.

Question: Should I clean up the collections before I apply for a secured credit card that does a credit pull? I'm looking at the Bank Of America Secured Card, and it looks like it does a credit pull on Experian. I just found these requirements from another thread

-----------------------------

To be eligible for a secured account, you must meet the following requirements: Bank Of America Secured CC

Minimum age 18

Must be an U.S. citizen or permanent resident with a valid social security number or Tax payer I.D. number with a US mailing address (for nonresident alien, refer to Non-Resident Alien policy)

No Unpaid Bank of America charge-off

No Bankruptcy No Repossession (voluntary or involuntary) < 36 months

No Foreclosure (includes deed in lieu) < 36 months

No known unpaid charge-off accounts > $1000 with any financial institution including retail cards and student loans < 36 months

Does that mean that any debt above $1,000 disqualifies you? Or does 'charge-off' mean credit cards, auto & student loans?

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Normally a charge off will show $0 balance, but they may refer to charge off where the original balance (charged off amount) is more than $1,000

[lamplight2012]

Thanks, AhmedInVA

Once First Premier removes the tradeline by or before the 21st of this month I'll take a stab @ BoA. If I get denied, I'll just move forward with OpenSky

[Anonymous]

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@AhmedInVA wrote:

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@lamplight2012 wrote:

Thanks for the response, Cruznmore.

After looking into it briefly it looks like the OpenSky is good, but like you said it doesn't graduate. I still may look into it.

Question: Should I clean up the collections before I apply for a secured credit card that does a credit pull? I'm looking at the Bank Of America Secured Card, and it looks like it does a credit pull on Experian. I just found these requirements from another thread

-----------------------------

To be eligible for a secured account, you must meet the following requirements: Bank Of America Secured CC

Minimum age 18

Must be an U.S. citizen or permanent resident with a valid social security number or Tax payer I.D. number with a US mailing address (for nonresident alien, refer to Non-Resident Alien policy)

No Unpaid Bank of America charge-off

No Bankruptcy No Repossession (voluntary or involuntary) < 36 months

No Foreclosure (includes deed in lieu) < 36 months

No known unpaid charge-off accounts > $1000 with any financial institution including retail cards and student loans < 36 months

Does that mean that any debt above $1,000 disqualifies you? Or does 'charge-off' mean credit cards, auto & student loans?

---

Normally a charge off will show $0 balance, but they may refer to charge off where the original balance (charged off amount) is more than $1,000

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Not true at all. Charge off merely means the account has been delinquent for 180 days. That means it is no longer considered an "asset", but a liability or loss. It will not show a zero balance until the account is sold off to a JDB or its paid.

[lamplight2012]

NormanFH,

When you say

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Not true at all. Charge off merely means the account has been delinquent for 180 days. That means it is no longer considered an "asset", but a liability or loss. It will not show a zero balance until the account is sold off to a JDB or its paid.

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By account, do you mean any type of collection on the CR? Or is this 'Charge off' only limited to credit type collections? I'm just trying to see if it's worth it to try BoA when I have a few collections that I'm working on. Don't want to waste a HP.

[Anonymous]

I'd start at the bottom on your collections and see how many you can PFD.   Heck $200 would reduce the number of your medical accounts drastically.    The number of collection accounts hurts and you could nearly cut them in 1/2 without too much cash outlay.   Even more depending on your ability to knock them off!    I saw a score jump every time I knocked one off.

Also - make sure you contact the state about the reporting child support.   I showed that I had a $30 child support deal on mine - which was impossible - C/S was withheld from my check and I was never behind.    It simply reported strangely one month - like payday and reporting day were the same day - so it had been withheld, but the state didn't have it yet - and then they never took it back off.  My daughter is 19 years old and lived with me for the past 3 years in which I received C/S and somehow it was just hanging around on the report.    I had to contact the state and get a letter showing it was paid as well as asked them to remove from CR - which they did immediately - but sometimes the state is a  little slow on reporting those things......just watch it and make sure.

[Anonymous]

A charge off is for any type of account, not just credit cards. It removes the dollar amount in question from the books as receivable revenue. All it means is the original creditor cannot count it as "income". But the debt is still owed, and only goes to zero if you pay it, or they discharge the debt entirely, and send you a 1099c (I think) for you to pay taxes on it.

[lamplight2012]

Jlynn0819,

I've prepared my letters(DV) to be sent to the CA's. Just need to take them to the post office to send once lunch time comes around.

Also, is it okay to list multiple accounts on a DV? I've five with the same collection agency.

Currently, my child support is reporting as 'OK' each month. Mine too is witheld from my check. My balance on the CS order should drop to around 4K after the audit, and correction of the balance. I plan on knocking that out quickly once my lawyer is paid.

I appreciate all of the help!