What to do in this point of the credit world?

Anonymous · ‎02-27-2020

So rebuilding had been going on for a few years with bumps in the road:

Here is the current status:

Indigo CC no lates 200/300 limit Opened Oct 2018

Citi Secured no lates 150/200 limit opened June 2018

BOA secured no lates 400/500 limit opened 7 months ago

DCU Unsecured 500 loan 1 year ago no lates 7 payments closed

DCU Unsecured 1000 loan 6months ago no lates 7 payments closed

Self Loan 24mo no lates 24 mo end in Oct 2020

Summit Credit Union 1000 24mo Secured Loan 6 years old with one 30 day late

I have 3 Student Loan Accounts totaling $12,000 that says will be removed 10/2020

(is it auctually fall off) Becuase thats the one with 120 or 180 day lates

I want to apply for a Discover Secured So it might graduate when the loans fall off

but is it better to wait incase the stufent loans fall off.

What can i do to get my cards to graduate since soo much time has been by?

Last time DCU gave me a FICO it was like 646 but my cc balances were really low.

What should be the next steps for credit in the next year or the next two be ?

Thank you for the help

AllZero · ‎02-27-2020

Optimize your scores by going AZEO All Zero Except One card reporting a small balance e.g. $5-$10. Use a bank card. Do not use a store card.

You might want to address any derogatory you have; delinquency, charge off, collection, etc. If they are updating monthly, it'll keep your scores suppressed.

Then, ask BoA if they can graduate you from secured to unsecured. I'm not sure what the score threshold would be to graduate.

AllZero · ‎02-27-2020

Early Exclusion:

7 year (plus 180 days) mark is the DoFD exclusion date. You can request for EE Early Exclusion on your derogatory / delinquency from:

TransUnion - 6 months early.

Experian - 3 months early.

Equifax - 1 month early. I would not recommend requesting EE. Let derogatory / delinquency fall off naturally.

Call up TransUnion . Front line csr may be able to assist. If not, request to speak with a supervisor to have the delinquency / derogatory removed. You may not see a score improvement until the last late is removed. However, since EE request is a simple process might as well take advantage of it.

FireMedic1 · ‎02-28-2020

@Anonymous wrote:
So rebuilding had been going on for a few years with bumps in the road:

Here is the current status:
Indigo CC no lates 200/300 limit Opened     Oct 2018
Citi Secured no lates 150/200 limit opened June 2018
BOA secured no lates 400/500 limit opened 7 months ago

DCU Unsecured 500 loan 1 year ago no lates 7 payments   closed
DCU Unsecured 1000 loan 6months ago no lates 7 payments closed
Self Loan 24mo no lates 24 mo end in Oct 2020

Summit Credit Union 1000 24mo Secured Loan 6 years old with one 30 day late

I have 3 Student Loan Accounts totaling $12,000 that says will be removed 10/2020
(is it auctually fall off) Becuase thats the one with 120 or 180 day lates

I want to apply for a Discover Secured So it might graduate when the loans fall off
but is it better to wait incase the stufent loans fall off.

What can i do to get my cards to graduate since soo much time has been by?

    Last time DCU gave me a FICO it was like 646 but my cc balances were really low.

What should be the next steps for credit in the next year or the next two be ?

Thank you for the help

Are the student loans paid? You only need 1 open installment loan for best FICO scoring. How many loans are open now? Being at 75% of your aggregate util is hurting you. Need to get that down below 8.9%. Or as @AllZero said AZEO. Plus the interest your paying is throwing money out the window. If you cant pay it dont charge it. You have the 3 cards for best scoring. Just got to pay them down. With secured cards you want to use them but pay them and dont carry any balances. This shows the creditors your responsible on paying your bills. And can help with graduating.

Anonymous · ‎02-28-2020

I only have one loan that im paying on.

which is the self loan it is about 70% paid down and will be done in october 2020.

The 3 student Loans are in default and i stopped paying them over 6 years ago

hoping they will drop off in Oct 2020 like its says. No need to pay them then, right?

I really wanna apply for the discover secured but i feel it will bring my Aaoa down? being the newest account,

Also is it true that TU will delete 6months earlier than the 7 year point??? anyone tried this,

I'm just gonna use my citi and boa secured cards and use 80-90% of limit, and when statments comes

I;m just gonna PIF to show I can handle a bigger limit. I'm also gonna call the anyalyst for both of them every month

asking for a grdaution being how long its been,

The indigo card, im just gonna keep it at 10-15 out of the 300 limit a month.

So im just gonna wait and garden until OCT for when the defaulted Student loans fall off

unless it comes off early on TU if its true.

Also my sister has a 15yr 10k limit macys card that already has a joint user,

is there anyway to add a 3rd joint user.

Is there any other store cards that let you become a joint user easily by just filling out a form and sending it in?

Thanks for the help

satio · ‎02-28-2020

@Anonymous wrote:
I only have one loan that im paying on.
which is the self loan it is about 70% paid down and will be done in october 2020.

The 3 student Loans are in default and i stopped paying them over 6 years ago
hoping they will drop off in Oct 2020 like its says. No need to pay them then, right?

I really wanna apply for the discover secured but i feel it will bring my Aaoa down? being the newest account,

Also is it true that TU will delete 6months earlier than the 7 year point??? anyone tried this,

I'm just gonna use my citi and boa secured cards and use 80-90% of limit, and when statments comes
I;m just gonna PIF to show I can handle a bigger limit. I'm also gonna call the anyalyst for both of them every month
asking for a grdaution being how long its been,

The indigo card, im just gonna keep it at 10-15 out of the 300 limit a month.

So im just gonna wait and garden until OCT for when the defaulted Student loans fall off
unless it comes off early on TU if its true.

Also my sister has a 15yr 10k limit macys card that already has a joint user,
is there anyway to add a 3rd joint user.

Is there any other store cards that let you become a joint user easily by just filling out a form and sending it in?

Thanks for the help

I am not the student loan expert around here so those that have more experience will hopefully be along to chime in.

However, while these items may fall off your CRA profiles, if they are federal student loans, they will never go away.

You can be subject to wage garnishment all the way and including social security payments.

If they are loans from private institution(s) then they are likely outside SOL so you cannot be sued but they will likely continue to attempt collection.

Anonymous · ‎02-28-2020

Hmm.... My defaulted federal loans all show a date that the accounts will be removed, but they aren't going anywhere. Are these federal student loans? If so, they probably aren't going to just drop off. Student loans do not seem to play by the same set of credit reporting rules as other debt...

Defaulted federal student loans are going to eff your score for 7 years after you pay them. Even if they DO drop off, you will still owe the money. And they will garnish your wages, seize your bank accounts, and/or take your tax refunds until you pay that debt off.

FireMedic1 · ‎02-29-2020

Your AAoA will change whenever you apply for anything at any time. Its nice you spread out your apps. You can always try Disco pre-qual page and see what pops up since its been 7 months. I'll ping @Anonymous on your student loan situation. Before they get here. It will help if its fed or private SL's your talking about. Good Luck.

Anonymous · ‎02-29-2020

@Anonymous wrote:
I only have one loan that im paying on.
which is the self loan it is about 70% paid down and will be done in october 2020.

The 3 student Loans are in default and i stopped paying them over 6 years ago
hoping they will drop off in Oct 2020 like its says. No need to pay them then, right?

I really wanna apply for the discover secured but i feel it will bring my Aaoa down? being the newest account,

Also is it true that TU will delete 6months earlier than the 7 year point??? anyone tried this,

I'm just gonna use my citi and boa secured cards and use 80-90% of limit, and when statments comes
I;m just gonna PIF to show I can handle a bigger limit. I'm also gonna call the anyalyst for both of them every month
asking for a grdaution being how long its been,

The indigo card, im just gonna keep it at 10-15 out of the 300 limit a month.

So im just gonna wait and garden until OCT for when the defaulted Student loans fall off
unless it comes off early on TU if its true.

Also my sister has a 15yr 10k limit macys card that already has a joint user,
is there anyway to add a 3rd joint user.

Is there any other store cards that let you become a joint user easily by just filling out a form and sending it in?

Thanks for the help

Just gonna echo the excellent advice appetit already given here

however the student loan issue I know pretty well. I let $150k student loans drop off my credit report— and they do— after living 15 years abroad. Thought I had beat the system. I come back to the US and my nice tax refund got "treasury offset" - garnished and taken! The loans will haunt you... they never ever go away, by law. But a house? Forget it. My advice, which I am doing, is to

1. find your loans on the national student loan site (go to the Student Loan forum here to find the site) and groan on how much and many you owe

2. Once you're over it, find the servicer of the loans and contact them

3. depending on your situation, you can rehab them or consolidate them. Depends on your situation. I rehabbed mine and pay $5/month due to income. You pay over nine months. Once that's done all your loans reappear on your credit report as new loans. Since mine are so old they are supposed to appear without any lates or derogatory info (over 7 years). In fact, they will increase my AaoA to about 18 years giving me a (big!?) boost in credit score AND i have new installment loans to help out— no need for the self lender loan anymore. (I'll check in with that info in a couple of months)

point is: it's pretty easy but scary to face those loans. Yet you will be doing yourself a favor in the long run for really little effort (depending on your income of course).

Anonymous · ‎03-01-2020

Unfortunately, if those are federal student loans, as already stated, they may fall off. But that will be the least of your worries because they are never forgiven. They do not need to go to a court to garnish your wages, take your tax refund, and even in later life, take from your social security. You likely won't be able to get a home loan.

First step is to check NSLDS website and see what loans are in default and where. There should be up to date or recent contact information on which collection agency they are with. Next you need to get them out of default. Your two options are rehab and consolidation. I usually recommend rehab for two reasons: it will remove the default (you mentioned the date when one will fall off but what about the rest?) And it will also restore the loans on your credit report as a "new" looking timeline but it will actually be the old one, so it will continue to age. This age will give your score a nice bump when your scores settle after rehab. Rehab is 9 monthly payments while consolidation can be done asap or on 3. Consolidation you'd be limited on possible IDR plans (ICR only?) too so if you're looking to have the opportunity of lower payments at any time, I recommend against it. It would also create a brand new tradeline on your credit line, Which will lower your average account age etc.

I can go over how the repayment payments in collection can go if you'd like.

Hope this helps clarify things.