Road to Healthy Credit (Adulting the right way)

[Anonymous]

In Dec 2019, I decided that 2020 would be the year of recovery, ownership and responsibility.  🙃🙃🙃🙃🤪🤪😭😭

Was off to a good start, I had settled into a new job, was managing my lifestyle properly and in turn my finances.

At the start of 2020 my credit score was 488. The lowest it's ever been in my life. My heart dropped when I saw it and it was an avalanche of everyone coming to collect.

So here's a recap of what my credit is like:

TU: 567

EXP: 586

EQ: 561

Student Loans: 26k

Credit Cards:

Capital One Classic Credit Card $300 limit. (45% usage - currently on track on getting below 30%)

Bank of America Credit Card $3784 (charged off, currently in repayment, original bal. $4034)

Payment History: 95% (missed 2 student loan payments and it multiplied by 8 😨😰. This was before consolidation)

Derogatory Marks: 1 (tmobile account for a visiting relative that ended up not getting paid until I was sent a collection letter. Actually just settled this account and waiting for bureaus to update☺)

At this point I don't know what else is going to jump out of the woodwork but I resolved myself to take responsibility and face it head on.

Paying down these debts and cleaning up my financial habits over the past 6 months despite my current joblessness and the state of the world. Has given me some form of foundation to stand on and continue to build. 

Me posting here is to seek out the people who were where I am and to learn from them the steps to take, how to become credit literate and actually have stability once I'm past my quarter life crisis.

All comments, opinions and guidance are welcomed and craved.

[FireMedic1]

Not much more you can do for now. Paying down the debt is a good thing. But that leaves you with 1 open CC. You'll need to in a slow pace to get up to 3 cards. But since your unemployed (sorry) for now. You cant apply for any more (secured) cards to get going until you have income. Get the baddies done and get that done. Once employed. Grab a couple secured cards and go from there. Good luck!

[Anonymous]

Thank you for your reassurance and tips. I'm feeling more grounded and less aimless than when I first posted. 

[Anonymous]

Update: The collection account was settled. At a lower sum and closed. Unfortunately Tmobile resold the balance to a new collection agency and I stood my ground and disputed it. I am happy I requested all transactions in writing from the previous agency and I have written word that I was settled and closed. After a few months the account has been removed after countless calls and visits to the Tmobile store and my score went to:

EXP:604

TU:605

EQ:605

I also have a Credit Builder account through my bank Chime. And the balance that is automatically $0 has also helped.

Looking forward to getting over the hill of 650 and improving and maintaining my Credit Health. Also got a new job, which has given me more stability and assurance moving forward.

[OmarGB9]

Congrats on the success!

[Doodlebug30]

@Anonymous I just want to say Welcome to Myfico and congrats on the start of your journey! Your determination is fantastic and your are already making amazing progress! You will be able to have a sense of pride in the fact that you started at the bottom and rose up on your own by making the right moves and fixing it! Forming new habits is key!

I know this bc I was much worse off than you are back in 2015 and I was so sick of having crappy credit and being told no. So I researched & read and pushed thru. Tackled one issue at a time and got thru. I'm still rebuilding 5 years later bc unfortunately those pesky student loan lates take 7 years to fall off!(mine were also multiplied by 8!). But I did some serious damage control while I wait and I now have several cc's with 100% on time payments and scores right around 700 across all 3 bureaus. So this is just a little encouragement and me saying YOU CAN DO THIS!

[LakeLife]

Congrats on your success and hard work so far.  Keep it up!