Trying to rebuild

[Anonymous]

hello everyone,

ok so im trying to rebuild my credit that was once 730+. my curret scores are EQ 614, TU 647, EX 596. im in the process of my rehab for student loans which i will complete in may. i have a forclosure that needs another 2 years to be wiped off. ive settled my collections accounts and now my question is whats next? i opened a CC with a CL of 500 and recently opened another CC with a CL of 2k. i was thinking to get a secured loan but dont know what amount or amount of time. maybe get 2 or 3 small secured loans? what should i do next?  

p.s. 

my SO and i are planning to buy a home in 3 years or so. what should i aim for credit wise?

[Anonymous]

A share secured loan for 500 bucks thru a credit union is an easy booster. Alliant, SDFCU, among others do these. If you have a local credit union (which I highly recommend) they will most likely do them as well. Alliant will let you go out to 48 months on a 500 dollar loan (my payments are 11.02) though your student loans should cover installment loans. you probably don't need it.

[Anonymous]

does the rehab process count in my student loan payments? since its not through the lender but the agentcy they hired?

[Anonymous]

The SL rehab process does NOT count, in fact, it doesn't even report to your CR. The default status from the loan servicer remains on your CR until you finish all 9 payments and the loan is sold. Once the loan is sold, the old TL's are removed (in some cases only the default status is removed), and the new loan servicer adds new TL's.

However, when you're out of rehab you should see a healthy bump in your score -- mine jumped over 70 points!

[gdale6]

You want at minimum 3 bankcards and 1 store card for credit mix. If you are rehabbing SLs I would not bother with the instalment rebuilder as you will have open SLs as stated above and they count in the instalment arena.

[Imperfectfuture]

I started in May 2013 with one 500 secured card. In April 2014, got rebuilder card. I followed a thread from bankruptcy to 700 in 2 years.

I got a cap one in sept. 2014. When my first report cleaned, I was over 740.  Then got Amex, a secured installment loan (what counts as mix of credit), and later a chase card.

My current scores are in my sig with all clean reports and 4 new accounts in last 6 months, NOWHERE is a store card. It does not add to any mix of credit, and several major banks (such as Amex) frown on them.

Skip the store card (sorry dale). Store cards are charge accounts, score less than other revolvers (credit cards and charge accounts are all revolvers, not a mix), and are wasted money if you need to carry a balance.

[Anonymous]

great info. so i applied for a barclay card 2 weeks ago and a cap one QS card and was approved for the cap one. including the card i received last year thats 3 inquiries in 1 year. so would it be smart to apply for 1 more so ill have 3 CC's? and so is that the only thing i could do to build? just wait until my rehab finishes in june and wait until my forclousre falls off? 

[Anonymous]

and if i should apply for another CC, which one should i apply for? i have a regular cap one and a QS cap one. should i try and have a certain amout of available credit by the time im ready to buy a home? if so what should that number be? 10k in CC's?

[Imperfectfuture]

Having helped in the mortgage forum, if want another cc, then get a secured one with credit union (500). They don't care about limits.

Your scores and age of accounts aren't ready for.barclay's or any other prime cards. Stay away from credit one and first premier. Most CU credit will graduate after year or two, get one that graduates (check with their underwriting department to see if any negatives stop this, mine could only have medical debt under 259).

Are the collections off your report? If not, get them off. If you paid, and didn't do pay for delete, that will stop you cold.

[Anonymous]

yes i payed for removal but they didnt and after multiple calls and letters i had no luck and ive tried to dispute through all 3 agencies and no change