Starting my rebuilding journey. Advice appreciated.

[medicgrrl]

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@Anonymous wrote:

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@medicgrrl wrote:

You can try writing goodwill letters to the bank for the credit card.  They may be very receptive if it was soley caused by the AF not being paid.  Don't use form letters.  Write them from the heart explaining the circumstances along with why you are now requesting this.  

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Will do, hopefully tomorrow. Should I mention the fact that they incorrectly reported the way in which the account was closed, or should I let that go and focus on taking responsibility for the late payments?

Also, where exactly do I send the letter? Is there usually a special address for such letters, or do I go through my local branch, or what? I did a Google search as well as a search on here and came up with nothing. Couldn't find any addresses on their website either.

Sorry for all the questions. This is all still completely foreign to me. I really appreciate all the advice I've gotten so far!

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https://www.bbb.org/cincinnati/business-reviews/banks/fifth-third-bank-in-cincinnati-oh-356

[Anonymous]

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@medicgrrl wrote:

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@Anonymous wrote:

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@medicgrrl wrote:

You can try writing goodwill letters to the bank for the credit card.  They may be very receptive if it was soley caused by the AF not being paid.  Don't use form letters.  Write them from the heart explaining the circumstances along with why you are now requesting this.  

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Will do, hopefully tomorrow. Should I mention the fact that they incorrectly reported the way in which the account was closed, or should I let that go and focus on taking responsibility for the late payments?

Also, where exactly do I send the letter? Is there usually a special address for such letters, or do I go through my local branch, or what? I did a Google search as well as a search on here and came up with nothing. Couldn't find any addresses on their website either.

Sorry for all the questions. This is all still completely foreign to me. I really appreciate all the advice I've gotten so far!

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https://www.bbb.org/cincinnati/business-reviews/banks/fifth-third-bank-in-cincinnati-oh-356

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Thanks!

[Anonymous]

Try to get a secured Discover Card and or a Bank of Americard. A year of steady payments will do wonders for your file and you will probably qualify for an unsecured card by then like Capital One Credit One or Orchard Bank Merrick Bank. Good Luck! My credit score was 415 in 2011, I'm now in the mid 700 and have qualified for almost every card I've applied for with nice beginning credit lines. I have had 3 car loans too, since with no missed payments. Also try for JC Penney and Walmart card. Good Luck. Time heals all wounds as far as credit goes. Sometimes it takes a really long time though with American Express. If you burn them it can be decades before they let you back in if at all. They have the memory of an elephant.

[Anonymous]

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@Anonymous wrote:

Try to get a secured Discover Card and or a Bank of Americard. A year of steady payments will do wonders for your file and you will probably qualify for an unsecured card by then like Capital One Credit One or Orchard Bank Merrick Bank. Good Luck! My credit score was 415 in 2011, I'm now in the mid 700 and have qualified for almost every card I've applied for with nice beginning credit lines. I have had 3 car loans too, since with no missed payments. Also try for JC Penney and Walmart card. Good Luck. Time heals all wounds as far as credit goes. Sometimes it takes a really long time though with American Express. If you burn them it can be decades before they let you back in if at all. They have the memory of an elephant.

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Were you able to get either one of those cards with a 415 or did you wait until your score was a little higher? I've read of people with score higher than mine that weren't approved for Discover. That's why I've been hesitant to apply for it.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

Just a quick note: I'd get a new card ASAP. Fixing the negatives won't improve your credit to the point that you'll be able to get better cards than you can today. You need to get the positive payment history clock started as soon as possible. Even if it's a $200 Capital One secured card (not the best secured card, but more willing than others to give you a card with low scores). Getting those collections off is important, but it doesn't matter in the long term whether you have them removed today or in 3 months. The overall rebuild needs a positive credit history as its base. That should be your first step, IMHO.

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Won't my negatives hurt my chances of actually getting approved for a card? I went to Capital One's site and was pre-qualified for their platinum secured card I think. I'm still worried I'll get denied though. I also looked into OpenSky, which I'm pretty much guaranteed to get, but I'm a little nervous because I've read a lot of reviews from people who ended up with even worse credit due to problems with payments taking forever to go through, bad customer service, etc. Also looked into Discover, which sounds like it might have slightly better approval odds than Capital One, but I'm still skeptical. Problem is I'm currently unemployed, so I don't know if I'll meet the income requirements. I have plenty of cash on hand to pay off whatever minimal charges I'd be putting on the card, and basically zero living expenses due to living with family, but I don't have what you'd consider a steady income at the moment. Don't know how much that would hurt my chances of being approved.

I guess my dilemma is whether to risk hurting my credit with a less reputable card or risk a hard inquiry and possibly a denial for a better card that's less of a pain in the neck.

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Capital One secured is easier than Discover. Their preapproval page is usually spot on. However, with no verifiable income it may not work.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

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@Anonymous wrote:

Just a quick note: I'd get a new card ASAP. Fixing the negatives won't improve your credit to the point that you'll be able to get better cards than you can today. You need to get the positive payment history clock started as soon as possible. Even if it's a $200 Capital One secured card (not the best secured card, but more willing than others to give you a card with low scores). Getting those collections off is important, but it doesn't matter in the long term whether you have them removed today or in 3 months. The overall rebuild needs a positive credit history as its base. That should be your first step, IMHO.

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Won't my negatives hurt my chances of actually getting approved for a card? I went to Capital One's site and was pre-qualified for their platinum secured card I think. I'm still worried I'll get denied though. I also looked into OpenSky, which I'm pretty much guaranteed to get, but I'm a little nervous because I've read a lot of reviews from people who ended up with even worse credit due to problems with payments taking forever to go through, bad customer service, etc. Also looked into Discover, which sounds like it might have slightly better approval odds than Capital One, but I'm still skeptical. Problem is I'm currently unemployed, so I don't know if I'll meet the income requirements. I have plenty of cash on hand to pay off whatever minimal charges I'd be putting on the card, and basically zero living expenses due to living with family, but I don't have what you'd consider a steady income at the moment. Don't know how much that would hurt my chances of being approved.

I guess my dilemma is whether to risk hurting my credit with a less reputable card or risk a hard inquiry and possibly a denial for a better card that's less of a pain in the neck.

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Capital One secured is easier than Discover. Their preapproval page is usually spot on. However, with no verifiable income it may not work.

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Looked over the application. Under "employment status" I have the option of choosing unemployed, self-employed, student, "other," etc. so it seems like it's not necessary to have a regular full-time job to be approved. It says "You may include personal income, which is income you have earned, including full-time, part-time, or seasonal jobs, self-employment, interest or dividends, retirement, and public assistance. You may also include shared income, which is money from somebody else that is regularly deposited into your individual account or into a joint account that person shares with you. If you are 21 or over, you may also include somebody else’s income that is regularly used to pay your expenses."

I'm really not sure how to approach this because my situation isn't so clear-cut. Within the past year I've gone from full-time student, to having a full-time job and living on my own out of state, to unemployed and living with family. I'm getting support from my family in the form of a free place to stay and meals at home, but not in the form of any kind of regular cash payment. For day-to-day expenses (gas, eating out, phone, etc,) I'm living off of my own savings and income from odd jobs. Could I say "other", and report my total income from the past year, including when I had my job ("income you have earned")? The requirement is that my monthly income exceeds my monthly expenses by $450. Since the only expense it asks for is rent/mortgage (in my case $0), that would work if I averaged it out over 12 months. Or would I be better off to say I'm unemployed and then come up with a cash value for the monthly support I'm getting from my family? Or should I just give it up and not apply until I find a regular job? I'd like to get the card now so my score is slightly less terrible if a potential employer decides to look at my report, but maybe that's just a risk I'll have to accept.

[Anonymous]

Welcome Bob,

I too recently started my rebuild and what I will tell you is simple- it is addicting, to see changes and to know how things affect other things.  I find myself learning so much about the process and actually enjoy trying to write GW letters and learn the laws governing credit reporting.  

I am still learning, but I know it is not overnight and be prepared for more failure than success in rebuild and getting derogs removed. 

[Anonymous]

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@Anonymous wrote:

Welcome Bob,

I too recently started my rebuild and what I will tell you is simple- it is addicting, to see changes and to know how things affect other things.  I find myself learning so much about the process and actually enjoy trying to write GW letters and learn the laws governing credit reporting.  

I am still learning, but I know it is not overnight and be prepared for more failure than success in rebuild and getting derogs removed. 

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Yeah I realize this isn't going to be an easy or short process. But I can totally see what you mean about the addiction. The actual process of jumping through hoops isn't necessarily fun, but the idea that it's possible to recover from your past mistakes and develop better habits is a great feeling.

[Anonymous]

Persistance

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@Anonymous wrote:

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@Anonymous wrote:

Welcome Bob,

I too recently started my rebuild and what I will tell you is simple- it is addicting, to see changes and to know how things affect other things.  I find myself learning so much about the process and actually enjoy trying to write GW letters and learn the laws governing credit reporting.  

I am still learning, but I know it is not overnight and be prepared for more failure than success in rebuild and getting derogs removed. 

---

Yeah I realize this isn't going to be an easy or short process. But I can totally see what you mean about the addiction. The actual process of jumping through hoops isn't necessarily fun, but the idea that it's possible to recover from your past mistakes and develop better habits is a great feeling.

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Also, i'm not sure how to think about applying with your situation.  It seems like a lot of people have had success with the capital one secured card.  An alternate option to a credit card may be a credit union installment loan.  They are usually some type of share savings plan.  For example: 600 loan, pay $50 month for 12 months and after 12 months you have a savings account with $600.  The ones i am familiar with dont require much by way of credit score.  May not be an option with your current situation but just a thought since you have such a thin file it may improve your score enough after a few months of on time payments to apply for a secured card.

[Anonymous]

A bit of an update...

I wanted to get a copy of all 3 reports so I can see exactly what I'm dealing with and so I have a beginning reference point for all 3 to help me track my progress. Found Credit Check Total and paid the $1 for the free trial. I was pleasantly surprised to find out that my 470 Experian is the worst of the 3 by a good amount. TU is 514 and EQ is 521. Don't know how much of a difference it makes in the big picture, but thought I'd mention it.

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@Anonymous wrote:

Persistance

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@Anonymous wrote:

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@Anonymous wrote:

Welcome Bob,

I too recently started my rebuild and what I will tell you is simple- it is addicting, to see changes and to know how things affect other things.  I find myself learning so much about the process and actually enjoy trying to write GW letters and learn the laws governing credit reporting.  

I am still learning, but I know it is not overnight and be prepared for more failure than success in rebuild and getting derogs removed. 

---

Yeah I realize this isn't going to be an easy or short process. But I can totally see what you mean about the addiction. The actual process of jumping through hoops isn't necessarily fun, but the idea that it's possible to recover from your past mistakes and develop better habits is a great feeling.

---

Also, i'm not sure how to think about applying with your situation.  It seems like a lot of people have had success with the capital one secured card.  An alternate option to a credit card may be a credit union installment loan.  They are usually some type of share savings plan.  For example: 600 loan, pay $50 month for 12 months and after 12 months you have a savings account with $600.  The ones i am familiar with dont require much by way of credit score.  May not be an option with your current situation but just a thought since you have such a thin file it may improve your score enough after a few months of on time payments to apply for a secured card.

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I did look into installment loans, but I'd rather not part with that amount of cash right now. $200 for a secured card is much more doable at the moment. I just wish I knew if they'll be ok with my income situation.