@Randy2191 welcome to this forum and hello. I am sure you will get some top notch advice soon, I just wanted to pop in and say I think you asking for advice on this forum is truly the best step you could have taken to rigth the wrongs. You are young and willing to learn so cudos. I wish I had been more open to advice and logic from others when I was 28. You have taken a very important step in your credit future!
@Randy2191 wrote:Hello, I am 28 years old and never really needed/worried about credit until now.
The person I live with is dying and in order for me to stay in house, I will need a 650 TU score. Currently 537.checking my credit and found negatives.
1. $1000 credit card from when I was in college and didn't pay will be 7 years since last payment next month.
2. $300 collections from not returning equipment to cable company. (Paid today said it should be removed 30-45 days IC system)3. $660 collections similar as above, same company. Plan to pay next week.
4. $220 fingerhut acct that has charge off remark from 4 years ago (paid it today, they won't remove)5. in 2019 I called to put my student loans on hold when I lost my job, and since I didn't get monthly bills like I usually would, I never thought about it, until I got a big one after they said I missed 8 payments in a row (on 3 loans) so this shows my payments at 73% made on time
what I have done to try and start to build new credit so far
1. capital one $200 secured.
2. Self inc 2 year loan $5003. Daniels Jewelers loan $600
I plan to get another secured card, and when reading about best ones found this place, so figured I'd ask for advice, because I'm way over my head.
Starting Score: 461
@Randy2191 You seem like your trying to do it all at once, I would advise slowing down. I can understand feeling in a hurry and trying to rush, but rushing will not help you build your credit. I know and understand from experience.
I would pay off the collections and stay where you are. Look up the AZEO method and follow it on the Capital One card and give it 90 days to 6 months and your score will go up and you'll qualify for unsecured cards.
As for the student loans have you tried talking to the servicer? Are these DOE loans? You might be able to talk to them and get some relief.
Go to annualcreditreport.com and pull all of your reports. Look for the DoFD. Fall off date goes by DoFD and not last payment. If everything is paid in time from the past. Does the SL servicer show a bunch of 120 day lates? And how long ago. Looks like a few things may linger and hamper your quest as it stands now. List out what you posted.
Creditor/ Credit Line/Balance
Collection Agency/Amount owed
SL/Servicer/ # of lates/ Dates
The late payments will fade, although you might research a "Goodwill" letter and try it.
TU is not the only CRA, so you want all 3 reports as @FireMedic1 mentioned.
You can also get your free Experian FICO Score by signing up at experian.com.
And is that a FICO or is that a Credit Karma Vantage Score?
Just asking as people will confuse the two where Credit Karma, Nerd Wallet, WalletHub, and many others give you a Vantage Score and don't always make it well known they are not giving you the same thing as a FICO Score.
@FireMedic1 wrote:Go to annualcreditreport.com and pull all of your reports. Look for the DoFD. Fall off date goes by DoFD and not last payment. If everything is paid in time from the past. Does the SL servicer show a bunch of 120 day lates? And how long ago. Looks like a few things may linger and hamper your quest as it stands now. List out what you posted.
Creditor/ Credit Line/Balance
Collection Agency/Amount owed
SL/Servicer/ # of lates/ Dates
Exactly what I was going to suggest. Wonder why? Ha! Ha!
Now, for all of us who have been in the forum for a bit - and for the new folks - I would like to take a second to remind everyone that we here in the US can get a copy of our credit reports from annualcreditreport.com every seven days (aka, one week) through December, 2022.
This was changed (for like the third time, I believe) as this service was to be discontinued in April, 2022 (RIGHT NOW!!! LOL). Naturally, this change in allowing weekly credit reports (vs. once a year) is due to COVID-19.
This is evedenced from the link below (none other than the FTC here in the USA):
Enjoy!
@Randy2191 wrote:Hello, I am 28 years old and never really needed/worried about credit until now.
The person I live with is dying and in order for me to stay in house, I will need a 650 TU score. Currently 537.checking my credit and found negatives.
1. $1000 credit card from when I was in college and didn't pay will be 7 years since last payment next month.
2. $300 collections from not returning equipment to cable company. (Paid today said it should be removed 30-45 days IC system)3. $660 collections similar as above, same company. Plan to pay next week.
4. $220 fingerhut acct that has charge off remark from 4 years ago (paid it today, they won't remove)5. in 2019 I called to put my student loans on hold when I lost my job, and since I didn't get monthly bills like I usually would, I never thought about it, until I got a big one after they said I missed 8 payments in a row (on 3 loans) so this shows my payments at 73% made on time
what I have done to try and start to build new credit so far
1. capital one $200 secured.
2. Self inc 2 year loan $5003. Daniels Jewelers loan $600
I plan to get another secured card, and when reading about best ones found this place, so figured I'd ask for advice, because I'm way over my head.
Welcome to the forum.
As @FireMedic1 suggested, the recommended first step is to get your credit reports. Yes, sir! Credit ReportS! There are three:
1. Experian
2. Equifax
3. Transunion
The formatting in each is a bit different. But look for "Negative" (or, "Potentially Negative") accounts listed. Ensure that what you find - in terms of Collections and/or Charge-Off and/or Late Payments - are consistent on all three of the CRAs (Credit Reporting Agencies).
Use that (what you find in the Credit Reports) as what is actually going on. At least, in this very moment.
And then list everything out (as requested).
DofD is "Date of First Delinqency". This is a VERY IMPORTANT date when you have "baddies" (the three things that I listed above.....collections, charge-off, lates - to be clear, there are several other baddies, these three are the three that we most commonly see, though).
A Collections Account is something that you can potentially have removed entirely. BUT......there are certain things that need to be in place (depending on who the Collections Agency is and what criteria it may have. One such common criteria is that the amount to be collected be due for at least two years....so, if one of your collections is only nine months old...then they would not offer to remove it...and this "offer to remove it" is called a "Pay to Delete"). There is also a list of known Collections Agencies who are willing to play ball, and there is a list of others who are not so willing to play ball.
The Charge Off is a different animal from a collections or from a late. It is very challenging to have a Charge Off removed (read: not talking about waiting the seven years from DofD.....talking about asking a Creditor to remove it 'early'). Not impossible. But not very frequent.
Anyway, there is enough information to digest at this point.
Looking forward to that list....
Once again. Pull your reports. For an example. Need to know is the $1000 card paid yet? Its probably a CO. It affects your aggregate util % and is considered a maxed out card. Need more info as asked above.