Needing help on how to get started with rebuilding... - myFICO® Forums

Anonymous · ‎10-25-2016

ok Im new here y'all (nice to meet you all), and Im now 30 kinda late but im so ready to fix my credit

my scores currently: EQ: 571, TU: 610, EX:610

i have a secured first preimer card with 300 balance that I have had since 2012 with no increase in limit at all. I hadnt always done right by it but recently since the last 4 to 5 months its been good. currently just paid down to 90$ which is 30% and got no score increase and it shows reported in my alerts? wonder why?

I have a credit union secured master card with a 500 limit that i have had for almost a year and recently paid it down to 150$ which is 30% that one wont hit credit until november 10th

My aunt added me as a AU to her capital one credit card with a limit of 750 and I recently paid it down for her to 225 which is 30% but wont see that hit until november 12th

I also have a fingerhut card with 200 limit had that for a year never used it so i recently just bought something for 30% of that amount and will pay it off in full.

hopefully those 2 cards wil allow my scores to go up

as far as collections yes i know if I owe them then pay them and I have been disputing and paying people to help me dipute with no major results. Lexington law has robbed me of so much money I might as well have paid off the collections myself.

I have recently negotiated a settlement with some medical bills that are in collections waiting on a letter of agreement.

Im lost and kind of just winging it can anyone tell me how to increase my scores the fastest trying to purchase a home and would love to clean the credit up in the process.

Stryder · ‎10-26-2016

I am pretty new too and it is never too late to learn about credit...just read everything you can on here on MyFico and you will learn!

The 30% thing is the highest you want your cards to be,,,you probably won't get much of a bump on that ....as you go over that 30% mark they will start to penalize you. They also don't pay much attention to individual UTIL, they look at all of your balances in total...and they want it under 10%. The best scenario, for the best score, is have all the cards except one report zero, leave a small amount on that one...

I had low 600 score this January and only had two small cards. I started to "Flex" them by charging everything I could THAT I WOULD NORMALLY SPEND....no drones, golf clubs, new sunglasses....... I would pay my electric bill, water, groceries. gas, then take the money and pay them in full...then repeat. After 3 months, Cap 1 with my $750 cl took me to a QS with $2,750 limit. I now do that with all my cards and it has improved my cash flow so you don't live week to week. I also do not use my debit card that is linked to my main accounts, which cuts down the risk of fraud where I keep my money. And the credit card people love it and the CB's will reflect your ability to manage your money. And this is with the same money you normally spend...no new money...its so easy. ( you will want rewards cards because it adds up and you make money)

Also, something else that was hard for me to learn, was the different scores. A lot of the sites I started on use a scoring system called Vantage 3.0, they aren't really a Fako, but I don't think any lendors use it. Found it o be 10-20pts different than Fico 8. Since you are on this board, I am assuming you are pulling your scores form here which I think is the most accurate info you can get. Also, you need to look at the other versions which are the most important...Fico 5, Fico 4 etc...they are split up as to the scores that mortgage, car, and CCard lendors use...these are the scores that are important. You can go to a website called creditboards.com and go the the "creditpulls" tab. You can search there to see what different card lendors pull when you try to get another card...very helpful

As I stated before ...read on this board and there are so many helpful people here. Once you start learning, you will find its not that hard, you just need to be dedicated to what you are doing and deligent to make your payments on time. You need a perfect payment records for your scores to improve. If you cant make all of your payments that month...dont pay your phone bill (utilities do not report to cb's), don't eat out that month, what ever you do, don't miss a minimum payment on any loans or credit cards. I had terrible credit in January, but I had perfect payments for 6yrs. I wouldn't have the scores I have now if I wasn't squeekie on my payments. (my 2 lower scores both have a baddie on them, they will jump when it falls off)

Anonymous · ‎10-26-2016

A good first goal would be to have three cards that are not going to nickle and dime you to death (First Premier), or require you to buy vastly overpriced merchandise (Fingerhut), or be at the mercy of someone else who may have credit issues of their own (Capital One AU card).

So, right now, that leaves you with the CU secured card. Work on paying that down to zero. Next, pay off the Fingerhut card and never use it again. It's done it's job for the time being. When that is done, try for a Capital One secured card. If approved, get the AU card off your reports as soon as possible. Once the AU card is gone, keep a small balance reporting on one of the secured cards. After a few months of proper use, apply for a Capital One regular Platinum card. If approved, ditch the First Premier fee harvester. Consider getting a share secured loan outlined in wonderful detail in this section of the forum.

That's how I would approach it. Good luck, and read lots on here.

DIYcredit · ‎10-26-2016

Hi,,WELCOME! When I first came to this GREAT Forum I was thousands in debt, I had lates and collections an different credit reports.Now my debt is paid, and my Fico scoce went from 630-735!This is a great place to learn all about credit.It seem to me you have a 30 day late,which is a minor delinquency..The collections is a major derogatory.The older these get the less effect they will have on your score.The collections will have the most impact on your score.I would concentrate on make charges and pay them back every month on time.Live within your means.Also down the road think about applying for a Capital One cc they are great for rebuilding and forget about anymore store cards.. If you want significant improvement in 1-2 years, follow the same steps I did. P.S. Don't waste your money with Lexington law they got me for $100 about 2 years ago.

1-Pay your bills on time (every time)

2-Keep balances low (below 10% for best results)

3-Only open credit accounts as you need them. .

4-Check your credit reports for mistakes

DIYcredit

Anonymous · ‎10-26-2016

question. In order to raise my score quickly so I can purchase a house should I focus on paying cc down to zero first and keeping it there every month

Or start calling and settling and paying off things in collection.

I have 13 things I collection mainly medical bills

I co signed on a car for my mom and it got repod last year

An old apartment that I know I need gone before I can get a house.

SouthJamaica · ‎10-26-2016

@Anonymous wrote:
ok Im new here y'all (nice to meet you all), and Im now 30 kinda late but im so ready to fix my credit

my scores currently: EQ: 571, TU: 610, EX:610
i have a secured first preimer card with 300 balance that I have had since 2012 with no increase in limit at all. I hadnt always done right by it but recently since the last 4 to 5 months its been good. currently just paid down to 90$ which is 30% and got no score increase and it shows reported in my alerts? wonder why?

I have a credit union secured master card with a 500 limit that i have had for almost a year and recently paid it down to 150$ which is 30% that one wont hit credit until november 10th

My aunt added me as a AU to her capital one credit card with a limit of 750 and I recently paid it down for her to 225 which is 30% but wont see that hit until november 12th

I also have a fingerhut card with 200 limit had that for a year never used it so i recently just bought something for 30% of that amount and will pay it off in full.

hopefully those 2 cards wil allow my scores to go up

as far as collections yes i know if I owe them then pay them and I have been disputing and paying people to help me dipute with no major results. Lexington law has robbed me of so much money I might as well have paid off the collections myself.

I have recently negotiated a settlement with some medical bills that are in collections waiting on a letter of agreement.

Im lost and kind of just winging it can anyone tell me how to increase my scores the fastest trying to purchase a home and would love to clean the credit up in the process.