Long story short, I have about $14k in Student Loans from Direct Loans (Dept. of Ed.) in rehab with ACT Collections. Only 8 more payments to go...
After pulling my score to see what damage above default had done to my credit, I discovered two baddies from medical bills dating back to 2008/2009 on my credit:
-One that went to collections in January '09 for $264 that I did a PFD; it has been removed from my report as of today
-One that went to collections in August '09 for $91 (yeah, I know..) that was PIF by my father (I had now knowledge of EITHER of these baddies until I pulled my report). I have written the collections agency (Keyes Financial Services, LLC) a GW letter, sent about two weeks ago. Have not heard back yet
I also have a car loan that was PIF for $7,950. No lates.
My FICO is currently at 523.
I would like to be able to purchase a new car after finishing out my rehab program (so in 10 or so months, depending). When I purchased the vehicle I drive now I had got a fantastic deal on it and will be able to sell it for about as much as I purchased it for, so I am planning on using that money as a down payment for my new vehicle.
I have never had a credit card in my life, and I'm wondering what is the best way to go about building my credit as intelligently and "quickly" as possible (I know this is a long process).
I have been told by some amazing people on this forum that a few secured CCs are the way to go. I'm curious as to how many I should obtain, and the best way to utilize them? I have read up a bit on the "gardening" practices, but I really want to make sure I am doing this as well as possible, because I don't want to mess up again. And never having had a CC, I'm still a little unsure about everything.
Any and all advice is very much appreciated!
in the garden until 2019!
One or two secured cards will do amazing work in helping with your CR. Do you belong to a CU?
July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge
Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
June 2017 update: All scores over 820, just pure gardening now.
@Shogun wrote:One or two secured cards will do amazing work in helping with your CR. Do you belong to a CU?
I do not yet, but there is one at school I am planning on talking to next Monday after I recieve the rest of my documentaion from ACT on my rehab program. I've been with the same bank (who also financed my car) for about four years now, but I am seriously contemplating moving to a CU if they can help me out. Plus they offer amazing student discounts as well as financial planning and advice.
How do I go about talking to them about my rehab program? Will they be iffy about my situation?
A CU can really help out alot. And even more so down the road when you are looking to get that new car. Lower rates and such.
Dont think you have to drop your bank to pick up the credit union. I belong to 2 CU's and one bank. I like to have my funds spread based on where the end destination will be.
@Eightiron wrote:A CU can really help out alot. And even more so down the road when you are looking to get that new car. Lower rates and such.
Dont think you have to drop your bank to pick up the credit union. I belong to 2 CU's and one bank. I like to have my funds spread based on where the end destination will be.
I'm thinking about getting a secured CC from the CU and one from my bank. The one through the CU offers a 13% APR & $25 annual fee. My bank has a 17.9% APR and $39 annual fee.