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@Herb, first of all, welcome to the myFico community! I'm so glad you joined us and you couldn't be in a better place to rebuild. I had a Chapter 7 discharged just over 24 months ago and if it wasn't for this forum, I can't imagine where I would be.
A HUGE congrats to you for movin' those scores up by around 100 points. That is a huge accomplishment! You are correct about the utilization but that is the good news as well. If you are up 100 points with that high utilization, wow...you'll really be amazed at where you end up when you start to bring it down. If you can lower it, that would be what I personally would concentrate on right now, as it will have the biggest impact. Lower utilization and time.
I never wanted to here 'time' and 'age the accounts' but I have learned that it may be the most important factor. If you don't need to use the cards anymore right now, throw them in the sock drawer, forget you have them and pay down the balances. Please try to always pay more than the minimum and you will see score improvements as you reduce the total by even 5-10-20%. I know I did.
If you can share some additional details, I know lots of folks will weigh in. Like which cards do you have, what are the limits, interest rates and what do you owe on each. Also, are you looking at true Fico 8 scores (where are you getting the data)?
Personally, I salute your progress so far and there isn't any reason to be discouraged. Just a little tweaking and you'll be headed to the 700's in no time. I will look forward to reading any updated info you care to share and I certainly will look forward to following your journey and future successes. If I can turn it around, anyone can!!
Chapter 7: Discharged November 2015
Total Revolving Credit Lines 1 month post discharge: $2600
Total Revolving Credit Lines 1 Year post discharge (Nov. '16): $86K, Total with installment loans: $174K
Total Revolving Credit Lines 24 months post discharge (Nov '17): $207K, Total with installment loans: $350K
11/15 Fico 8: EQ-585, TU-550, EX- 551
11/17 Fico 8: EQ-697, TU-691, EX-687
Inquires: Next subject please.
Awards: World's VERY worst gardener x 1000! 'I'd like to thank the academy...'
Your utilization is high so pay down your cards and your scores will LAUNCH instantly.
@Anonymous wrote:Your utilization is high so pay down your cards and your scores will LAUNCH instantly.
@+1000 @ima!!!
We all know, lates can happen and it really stinks but it's the way we deal with it and the way we handle things moving forward that count. Clearly, you ARE moving forward and in the right direction. Bravo! Thanks for sharing the details on the cards as it adds more definition to the current situation. So IMHO (veryyyy humble opinion), I think it's great that the cards all have lower limits (since they are pretty well maxed out). I mean, if you are making a $100 payment on a $750 balance, it will have a far greater impact on your balance and scores then if that $100 payment was on a $3000 balance. So this is pretty exciting, you'll see some changes pretty quick if you stop using the cards. In my way of thinking, you are working on four things at the same time.
1). You will make a plan to bring those balances down to under 30%, then under 20%, then 10% utilization and finally pay them off. But on a $750 balance (depending on interest) every $75 that is reduced will be awesome in terms of those scores improving.
2). You are aging the accounts and establishing history which is invaluable.
3). Every 30 days you are putting more and more time between the lates and the present.
4). The suggestion to read up and then take some action regarding the 'goodwill' campaign is solid and because you are working on the first 3, you have time to really blast a goodwill campaign for the lates.
The shared secure loan is a good option if you have the funds to get it going but I will say that even though it will build your scores, IF you haven't been making more than the minimum payments on the cards, concentrate on dropping that utilization first. Every 10% you eliminate will make such a dent in the debt that personally, I would be tunnel visioned about paying down those cards. There is always time to open a secured installment loan but scores don't mean a thing compared to the peace of mind that reducing that debt will bring.
I keep a notbook (long hand-old school) and I list cards and due dates and statement dates and minimums due and what I will actually pay. I pay it as close to the day the new statement cuts as possible, that way I never have to think about getting close to the due date. Take a look at your extra income and see exactly how long it will take you to pay down those cards and keep that date in your mind, own it. You can read up on the 'snowball effect' for reducing debt and one by one those balances will vanish. You're smart to realize that this won't be the best time to apply for more cards, but if you set up a repayment plan, you'll be amazed at what a difference just one more little year will make and how fast it will go by.
I know you can do this and yours will be one of the amazing success stories we read about here everyday in this community. I encourage you to keep this thread going and let us know how you're doing with you plan. Please stay in touch and know that we are all cheering for you!!
Also would be a good time to let the credit inquiries age off, they will become unscoreable a year from the time you applied. It will give you some small points back as each one drops, but also when your utilization does get manageable, you will not be an active credit seeker. Only exception is the SSL spoken of, but that might be a soft pull (does not ding your scores as hard inquiries do), but not sure, should be in the SSL technique thread.
Once you've tackled utilization and having the SSL in for the credit mix, besides goodwill the late payments, is to tackle the collections. Are they recent or large amounts? Your credit report should tell you when they age off-normally 7 to 7 1/2 years from date of first deliquency-if it is close to that period, let them age off. For any that might be 3-5 years old, many here, including myself have tried for a pay for delete. But first google the collection agency and the words pay for delete- you most likely will find a thread here in the forum with someone who has had success, or the agencies that are hard to deal with and can work on those last.
I think you're rebuild is set for a huge improvement since you have obtained decent cards for a rebuild, and are aware of the utilization effect on scores.
All suggestions here are great but I'd like to add one more thing to try - go to your Cap 1 online account page and see if you have any open offers on either card (assuming you haven't done so already?). If there are no offers and there's a way you might be able to sweet talk a CSR into a CLI without a hard pull (or maybe even WITH a hard pull if a potential CLI sounds promising), you might want to try that method. Point is, any CLI on any TL will also help your utilization ratio as you work to pay down your existing CC debts. This is exactly where I'm at right now in my journey...had two $5K accounts increased to >$10000 apiece in the last 2 weeks as I continue to eat that debt elephant - one bite at a time. Good luck to you!!!
After bringing UTI down and doing AZEO method I would suggest going onto cap1 website or app and requesting a credit line increase. Being that you have had it for so long you are due for am increase but I can assure you they won't like to see that high UTI when the CLI is requested. They will also give a better CLI if your UTI is low. Less than 10% preferably. I agree with abcd though. Building credit does not mean building debt. Best of luck to you.