open up new credit while cleaning up credit?

Anonymous · ‎05-04-2008

i have had some misfortune...fell behind on credit cards which are now closed/charged off...well i have personal loan with my credit union which will be paid off this month...i am wondering should i try to open up a new loan to help me while im rebuilding/cleaning up credit? btw my credit scores are in the low 500's, i mean high 400's

Anonymous · ‎05-04-2008

I was advised to open up a credit card to boost my FICO score. I was not sure which one to use. There seems to be about three major company's that'll lend to people with "bad" credit. Orchard Bank, Premier, and Credit One. Orchard bank was the only one without a ridiculous fee. Mine was only a $19.00 app. fee and I must say that sincehaving it keeping my balances low and paying off the entire bill each month, my score has gone from low 500's to high 500's/low 600's in about 6 months.

Scamp · ‎05-04-2008

mskay01 wrote:
i have had some misfortune...fell behind on credit cards which are now closed/charged off...well i have personal loan with my credit union which will be paid off this month...i am wondering should i try to open up a new loan to help me while im rebuilding/cleaning up credit? btw my credit scores are in the low 500's, i mean high 400's

If you handled your CU personal loan well and therefore have a good relationship with them, you might check with them on what they might be able to do for you, credit card-wise, instead of doing another loan.

_____________________________________________________________________________
It's never too late to become the person you might have been. ~George Eliot

02/12/09 EX: 701 / 02/08/10 EQ: 719 / 02/08/10 TU: 723

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Anonymous · ‎05-04-2008

mskay01 wrote:
i have had some misfortune...fell behind on credit cards which are now closed/charged off...well i have personal loan with my credit union which will be paid off this month...i am wondering should i try to open up a new loan to help me while im rebuilding/cleaning up credit? btw my credit scores are in the low 500's, i mean high 400's

Are those closed/charged off cards paid or unpaid?

As the other poster suggested, I'd talk to your CU about opening a CC, even a secured(if they offer).

If not, try to get a secured CC from someplace like BoA. If you have no open/good CC reporting, this will help your scores if you get one.

Anonymous · ‎05-04-2008

Yes, if you have bad credit, you definitely need to add some good, recent credit to balance it off.

Anonymous · ‎05-04-2008

Go for an orchard card, they are great for ppl like us! You definitely need to keep using credit (wisely) to bring your score up up up!

Anonymous · ‎05-05-2008

sidewinder:

Are those closed/charged off cards paid or unpaid?

unfortunatle my charged/closed accounts are not paid...as of this moment i am dv'ing them with the CA

Anonymous · ‎05-05-2008

thank you all for your advise...i am going to call credit union to see about a secured card...if that fails i'll check out the other secured cards

again thank you all

Anonymous · ‎05-05-2008

I'm in a similar situation with my CR. My scores are TU559 EQ 556 EX 509 as of 2/14 down to 545-500 roughly across all three now. I recently had a DFAS acct go to collections and I'm currently scrambling to pay it off b/f it goes to judgement (which it is on its way there). Prior to this happening I was in the process of applying for a home loan. Now i don't know what to do??

The only other pos cr acct I have is a consolidated student loan acct. That has been current and paid on time since Sept 2006. I have about 18 other neg accts- CA's all save two or three that are paid off or zero balance. I need to est another good cc acct but don't know where to start. Any suggestions?