Recommendations on effectively rebuilding credit

[Rampage]

I'm trying to help a friend 'rebuild' her credit.

There are 6 accounts with status as 'closed' with payment status listed as either "Paid" (with 30-150 days pas due) or "Current" (with 60-120 days past due). Date opened ranges from 2002-2004.

Besides keeping her one credit card at a 10% usage range, do you have any recommendations on the best way to rebuild her credit? Is there anything that she should do with those closed accounts?

Thanks, in advance, for your thoughts.

[llecs]

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Rampage wrote:
I'm trying to help a friend 'rebuild' her credit.

There are 6 accounts with status as 'closed' with payment status listed as either "Paid" (with 30-150 days pas due) or "Current" (with 60-120 days past due). Date opened ranges from 2002-2004.

Besides keeping her one credit card at a 10% usage range, do you have any recommendations on the best way to rebuild her credit? Is there anything that she should do with those closed accounts?

Thanks, in advance, for your thoughts.

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If these are paid OC accounts, then the only thing she can do is send GW letters or wait out the 7 yrs. She'll likely benefit by adding 1-2 more CCs (esp. if she adds a store charge card). I wouldn't try for the card unless I tackled those lates first, though.

[Anonymous]

llecs, wouldn't a CJ account help her?

[llecs]

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WhatzUrPlan wrote:

llecs, wouldn't a CJ account help her?

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I'm not a CJ fan. Now I never had them, but they only report to two CRAs, you have to pay a high price for low quality jewelry, and you have to pay for the merchandise before they report, from what I have read here anyway. On the flip side, I hear they report a $2500 CL.

I think OP's friend won't have a tough time getting new CCs after she repairs. She already has 1 CC and getting two or more won't be so tough. I bet she can get her scores into the mid-600s with persistent repair and that would open her up to the world of prime CCs and higher CLs.

[Anonymous]

I knew you'd have a great answer for that ~ thank you!

[llecs]

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WhatzUrPlan wrote:

I knew you'd have a great answer for that ~ thank you!

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But for every opponent to CJ out there, there are 5 more proponents.

[Anonymous]

No argument there!  I'm sure you've seen more than one time where I've suggested them.  I am definitely a proponent for those who don't have a weakness for fine jewelry as this is, as you mentioned, high prices for relatively low quality, however, when you are temporarily living in SUB-PRIME world, it can be an effective rebuilder, therefore, DH & I each have one. 

[makeynik]

I went to a CU yesterday and they told me about their Generation Y credit card (visa/mc, not sure) that they market to young adults. It only has a $250 limit, APR is 7.9%, they report to all 3 CRA, the APR is the same for cash advance. They do not pull credit for application. I am getting one, and will use it sparingly. The CL is low, I know, but I am going to use it for the low apr to pay off a larger balance with higher apr while I am rebuilding. Maybe she should check with a cu?

[Anonymous]

What CU was that?

[makeynik]

It is a small cu in northern IL, Blackhawk Area CU...
Although the teller just called me today and said that the lender wanted permission to pull my credit file since I was over 21 (it really is a starter card). I said no, I will wait, not sure that they would approve me yet and didn't want a ding...at least she called!