cancel
Showing results for 
Search instead for 
Did you mean: 

Suggestions on next steps in rebuilding...

tag
Anonymous
Not applicable

Suggestions on next steps in rebuilding...

To save a long backstory I have a love hate relationship with credit and rebuildling. I find myself so  motivated and then get discouraged and stop. I'm coming out of one those episodes but the difference this time is I haven't been this close to a "fair" credit rating on one of my reports in at least 7+ years. 

 

My current goal right now is to get out of this robbery of a car finance arrangement. I'm paying a 22% interest rate on a 10k vehicle. I want to refinance as soon as possible. 

 

EX - 563, TU - 515, EQ- 490

I fell behind on my car payments due to job loss but that is now current and caused a 56 point jump on experian. Hasn't yet updated on TU and EQ (via credit karma).

 

My NFCU secured is currently reporting over the limit on all 3 reports but I paid that down and on the 20th all my reports will update to reflect. I am hoping that jump puts me in fair credit on experian! Otherwise, always paid ontime monthly, no derogs.

 

I let a capital one card go to hell last year and it was reporting as a charge off and updating monthly. I just paid the balance on it yesterday and expect a positive impact to  my report in the next few days. 

 

I have a $50 urgent care collection that I have no knowledge of reporting on Transunion just added 2 days ago. I also have a $147 verizon in collections. I plan to dispute the urgent care one but dispute center is closed. Should I settle with verizon, will this make an impact?

 

I completed rehabilation on my student loans and had three derog accounts fall off and all payment history erased. That brought me up into the 500s from 470s, motivation for those going through it. 

 

When my three reports all update with my credit usage going down on NFCU, my auto loan being current, and the capital one account paid closed. I hope to be in the low 600s (at least on EX and TU). I then will only have one credit card, auto loan and student on my credit report as active/open and good standing accounts. 

 

Should I do a self account? Or any other suggestions to get another positive line of credit going? What are the best places to start with refinancing, in a virtual world...

Message 1 of 3
2 REPLIES 2
FireMedic1
Community Leader
Mega Contributor

Re: Suggestions on next steps in rebuilding...


@Anonymous wrote:

To save a long backstory I have a love hate relationship with credit and rebuildling. I find myself so  motivated and then get discouraged and stop. I'm coming out of one those episodes but the difference this time is I haven't been this close to a "fair" credit rating on one of my reports in at least 7+ years. 

 

My current goal right now is to get out of this robbery of a car finance arrangement. I'm paying a 22% interest rate on a 10k vehicle. I want to refinance as soon as possible. 

 

EX - 563, TU - 515, EQ- 490

I fell behind on my car payments due to job loss but that is now current and caused a 56 point jump on experian. Hasn't yet updated on TU and EQ (via credit karma).

 

My NFCU secured is currently reporting over the limit on all 3 reports but I paid that down and on the 20th all my reports will update to reflect. I am hoping that jump puts me in fair credit on experian! Otherwise, always paid ontime monthly, no derogs. FICO goes by scores. Not Good, Fair, Poor, ect. Thats fluff descriptions.

 

I let a capital one card go to hell last year and it was reporting as a charge off and updating monthly. I just paid the balance on it yesterday and expect a positive impact to  my report in the next few days. It will help some since a charge off is considered a maxed out card. Depending on the util % across all cards. Yes it will help. But the CO will still ding until it falls off.

 

I have a $50 urgent care collection that I have no knowledge of reporting on Transunion just added 2 days ago.Go to the Urgent Care center in person and ask about the account. If its for real. Pay it. If its a mistake have them corect it. I also have a $147 verizon in collections. Go to a Verizon store and offer to pay it. Verizon has internal collections. I plan to dispute (Dont dispute) the urgent care one but dispute center is closed. Should I settle with verizon, will this make an impact? See above.

 

I completed rehabilation on my student loans and had three derog accounts fall off and all payment history erased. That brought me up into the 500s from 470s, motivation for those going through it. 

 

When my three reports all update with my credit usage going down on NFCU, my auto loan being current, and the capital one account paid closed. I hope to be in the low 600s (at least on EX and TU). I then will only have one credit card, auto loan and student on my credit report as active/open and good standing accounts. 

 

Should I do a self account? Or any other suggestions to get another positive line of credit going? What are the best places to start with refinancing, in a virtual world... Dont need another installment loan. You have an auto loan already


Welcome @Anonymous 

Once all these are taken care of. Then look for another card like Cap1. You'll want to work up to 3 revolvers over the next year. Slow and steady.


Message 2 of 3
RSX
Valued Contributor

Re: Suggestions on next steps in rebuilding...

^^ all great steps to take

 

also - though the int rate is horrible for that car loan, while you are waiting for your scores to jump, pay every little extra on that debt that you can

 

sometimes we get so focused on a refi or Balance Transfer to get out of a bad loan/CC - when the real goal is to just get the debt amount down

 

after you take care of that verizon and Urgent Care payoffs, put every spare dollar on the car loan

i mean even making a $25 payment if you have it

 

these seemingly small amounts add up quickly and it may be a lot lower by the time you get the scores to refi it

 

good luck to you!

 

Dec 16/2019. EX. 721. EQ. 723. TU 746
Jan 25/2024 EX. 774 EQ. 751 TU 758
Inq. EX 2 EQ 3 TU 6 - - CC 2x24, 0x12
Amex BCP $35k - Apple GS $21k - BMW/Elan $19k - Cap1 QS $16.7k - Chase Amazon $13.6k - Chase Bonvoy Bountiful $10k - Chase United Club Infinite $26k - Citi CustomCash $3k - Citi DC $14.5k - CreditUnion1 $9k - DiscoverIT $31.5k - PayBoo - $15.6k - Penfed Gold - $19.3k - USB AltitudeGO -$19k- USBank Cash+ -$25k - PenFed LOC - $20k - USB LOC - $15k
Message 3 of 3
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.