mendelssohn's road to 760+

[mendelssohn]

I've been thinking about starting a rebuilding thread for a while to help me track my progress and keep me motivated and focused. It's been a long 2 years just to get where I am now with my scores. Many people that come here start with scores like I have now, but I started with scores in the low 400s.

 

How do you get scores in the low 400s? Defaulted student loans from 3 universities, student loan collections, charged off credit cards, collection accounts for credit cards, collections for utilities, collections for bounced checks, collections for payday loans and late payments on everything. I lived without any credit cards from 2008 until I opened up my first credit card in March 2012. I didn't bother to do much about it because I was living a cash lifestyle and figured my credit was a lost cause.

 

In 2010 my wages were garnished for the student loans, and I ended up consolidating to get them out of default. I made some late payments in 2011, and had numerous late payments on a car loan as well. My last late payment was January 2012 on the car loan.

 

In 2012 I decided that I wanted to be able to buy a house in the near future, and started repairing and rebuilding my credit. I managed to get all of the charged off credit cards deleted except for an HSBC card reporting on EX and TU, all but 2 of my collections accounts and I even managed through luck to get a bunch of student loans deleted from EQ. I had no idea what I was doing building credit and opened an Orchard Bank Visa with a limit of $300. I also opened a Credit One Visa, which I regret, but I am going to leave it open until I get approved for a mortgage. My AAOOA is too low as it is now. As I started reading CB, I realized that I should have been opening secured cards, but it was too late to erase my first 2 mistakes. I then opened secured cards with DCU and SDFCU. My income more than doubled late in 2012, and I really wish that I had put more money on my secured cards, but I was still wary of the idea of secured credit cards. At the end of 2012 I had:

• Orchard Bank Visa-$300
• Credit One Bank Visa-$500
• SDFCU secured Visa-$250
• DCU secured Visa-$500
• Total Credit: $1550

2013 was a major year for me. I deleted 1 of the 2 remaining collections I had, unsecured my DCU card, was approved for some CLIs and added some new tradelines. I also closed my SDFCU secured card. At the end of 2013 I had:

• Capital One Platinum Visa (former Orchard Bank)-$1000
• Credit One Bank Visa-$1000
• DCU Visa-$1000
• NFCU cashRewards Visa-$10,000
• NFCU CLOC-$10,000
• Barclaycard Rewards MC-$1500
• Walmart-$700 and CLI to $850
• Total Credit: $25,350

I was planning on applying for a mortgage early in 2014, but my wife and I decided to wait a while longer. I decided to take the opportunity to apply for some more cards. Since people seem to be having trouble getting D* with Amex, I wanted to establish a D*. I figured my best chance for approval was a charge card. I was expecting to be denied, but they approved me for the PRG! I also added Chase Freedom, Discover and Lowes.

 

The remaining negatives I have on my reports are:

• numerous student loans and collections from 3 universities, the last of which should fall off 12/2015
• 2 30 day late payment on a personal loan from 2011 reporting only on TU
• 30 and 60 day late payments on a car loan, the last of which was Jan 2012
• an HSBC chargeoff reporting on EX and TU, set to fall off 10/2015

I haven't done anything lately with the HSBC chargeoff because they are not updating the status. Every time I dispute it, I get a letter in the mail from Capital One, and I want to avoid Capital One updating it. Since it is set to fall off around the same time as my student loan mess, I'm just going to leave it. For now, I'm working on getting the lates from the personal loan removed from TU. Unfortunately, the car loan was with Santander, and they are hard to get rid of. I may be stuck with it until it ages off. At least by Jan 2016, the last late payment will be 4 years old.

 

My open tradelines as of Feb 2014:

• Capital One Quicksilver Visa (PC from Platinum)-$2000
• Credit One Visa-$1000 (I can't wait to drop this turd)
• DCU Visa-$1000
• Barclaycard Rewards MC-$4500
• Walmart $1150
• NFCU Flagship Rewards Visa (PC from cashRewards)-$17,500
• NFCU CLOC-$15,000
• Chase Freedom Visa-$4500
• Discover-$8500
• Amex PRG
• Lowe's-$300
• Total Credit: $55,450

I don't think I've done too bad considering my scores, other than my early mistakes rebuilding. I don't plan on adding anything else until my student loan mess and HSBC fall off Dec 2015. One of my concerns is getting locked in with toy limit cards, so I am going to work on building history with my current cards and trying for periodic CLIs. Credit One will be closed right after I close on a mortgage.

 

My goal is to get my scores above 760, and I will post here once in a while to update my progress. It's been a long road rebuilding so far, and I still have a long way to go. I welcome any advice from the pros here that might help me along the way.

 

[cv91915]

That's a really impressive summary, and the results are very well deserved.

 

I would venture to say that your first post wasn't the usual "I want to buy a house ASAP. Where's the letter I can copy and mail to someone to make all this $hit go away?"

 

Tenacity wins, and you've come so far. I'm sure you feel it also, but you're gaining momentum. 2015 will be here and gone before you know it.

 

I am absolutely sure you will prevail. Very. Nicely. Done. Keep it up!

[mendelssohn]

That's a really impressive summary, and the results are very well deserved.

 

I would venture to say that your first post wasn't the usual "I want to buy a house ASAP. Where's the letter I can copy and mail to someone to make all this $hit go away?"

 

Tenacity wins, and you've come so far. I'm sure you feel it also, but you're gaining momentum. 2015 will be here and gone before you know it.

 

I am absolutely sure you will prevail. Very. Nicely. Done. Keep it up!

Thanks, CV! Once I realized the mistakes I made early on, I read CB non-stop to plot my next moves. I think part of what has helped me is that I didn't open a ton of low limit cards early on rebuilding. I read plenty of warnings about that early on.

[cv91915]

 

That's a really impressive summary, and the results are very well deserved.

I would venture to say that your first post wasn't the usual "I want to buy a house ASAP. Where's the letter I can copy and mail to someone to make all this $hit go away?"

Tenacity wins, and you've come so far. I'm sure you feel it also, but you're gaining momentum. 2015 will be here and gone before you know it.

I am absolutely sure you will prevail. Very. Nicely. Done. Keep it up!

Thanks, CV! Once I realized the mistakes I made early on, I read CB non-stop to plot my next moves. I think part of what has helped me is that I didn't open a ton of low limit cards early on rebuilding. I read plenty of warnings about that early on.

You're very lucky or very smart (or both) to have limited your mistakes to just a couple early on. I still step into a steaming pile now and then.

[mendelssohn]

I just realized this morning that this month is an important milestone. A year from now, I can start disputing as "obsolete" the first of the student loan accounts on TU, 6 months from when they are set to fall off. If everything gets deleted early, my TU could be in the 700s by summer next year.

[cv91915]

I just realized this morning that this month is an important milestone. A year from now, I can start disputing as "obsolete" the first of the student loan accounts on TU, 6 months from when they are set to fall off. If everything gets deleted early, my TU could be in the 700s by summer next year.

This is big. The obsolete disputes set me free last year. Good luck!! The year will come and go in no time.

Edited March 3, 2014 by cv91915

[gooddfella]

I was in a similar situation last year. Closed my house last week. One thing that helped me with my credit age was getting added to my GF's 4 year old Wells fargo and my dads 16 year old Nordstrom card as a "joint applicant", not just an authorized user. They did not pull my credit, just added me right away. People used to do this with AU back in the day but that doesnt work for mortgages like it used to, though it helps a little.

Edited March 3, 2014 by gooddfella

[mendelssohn]

 

I just realized this morning that this month is an important milestone. A year from now, I can start disputing as "obsolete" the first of the student loan accounts on TU, 6 months from when they are set to fall off. If everything gets deleted early, my TU could be in the 700s by summer next year.

This is big. The obsolete disputes set me free last year. Good luck!! The year will come and go in no time.

 

 

Thanks! I'm thinking that once TU is in good shape that I'm going to app for the Sallie Mae card.

I was in a similar situation last year. Closed my house last week. One thing that helped me with my credit age was getting added to my GF's 4 year old Wells fargo and my dads 16 year old Nordstrom card as a "joint applicant", not just an authorized user. They did not pull my credit, just added me right away. People used to do this with AU back in the day but that doesnt work for mortgages like it used to, though it helps a little.

I wish I could, but I really don't have options for AUs. My parents have perfect payment history, but carry balances. My wife has never had a credit card. My AAOA is actually very good, but my AAOOA is low.

[dramaqueen]

Awesome! Thanks for sharing your progress. I'm close to where you were in 2012 and will be looking to get some higher limits this year. I wish I were eligible for a NFCU membership as they seem to be great at helping people obtain high limits as they rebuild.

[mendelssohn]

Awesome! Thanks for sharing your progress. I'm close to where you were in 2012 and will be looking to get some higher limits this year. I wish I were eligible for a NFCU membership as they seem to be great at helping people obtain high limits as they rebuild.

I credit NFCU for helping me step up from low limit cards. My limits aren't that high now, but when NFCU approved me for a $10K CC and $10K LOC, my highest reporting limit was only $500. I suggest researching CUs and trying to get a CC with a CU that is known to be generous. Stay away from OCCU and Logix!

[dramaqueen]

 

Awesome! Thanks for sharing your progress. I'm close to where you were in 2012 and will be looking to get some higher limits this year. I wish I were eligible for a NFCU membership as they seem to be great at helping people obtain high limits as they rebuild.

I credit NFCU for helping me step up from low limit cards. My limits aren't that high now, but when NFCU approved me for a $10K CC and $10K LOC, my highest reporting limit was only $500. I suggest researching CUs and trying to get a CC with a CU that is known to be generous. Stay away from OCCU and Logix!

 

Thanks for the advice! I've actually started researching different CUs but it's a little challenging to figure out which ones are generous especially when dealing with the local ones. However, I hope to share a success story like yours within a year or so!!! Thanks for the inspiration.

[kiasmith1974]

you've done a great job!

 

I just spent 30 min going back on my credit karma account to see the progress i've made over the last 2 years.

 

I filed BK in 2008 and today have low limits and high balances. I have a plan to reduce the balances this month and I'd like to gain some higher balances on the cards i currently have.

 

My AAOA is really low and I don't want to risk my growth by applying for new cards with low limits.

 

I'm afraid i will be stuck with these low limits for a while.

 

April will be my 6 months since cli with cap one, and my 6 months since obtaining Barclay, so hoping they will show some luv to me!

Edited March 4, 2014 by kiasmith1974

[mendelssohn]

Dramaqueen, check the creditpulls database.

 

Kiasmith1974, thanks! One of the things I realized when I started rebuilding was that if my finances were not in order, I would never have good credit. I treat my credit cards like debit cards. I only charge what I can PIF and do not use then to finance things that I should save for. It's amazing how many points you can get out of FICO by tweaking utilization, even with a dirty file.

[cv91915]

Dramaqueen, check the creditpulls database.

 

For a second I thought that was directed toward me.

[mendelssohn]

 

Dramaqueen, check the creditpulls database.

 

For a second I thought that was directed toward me.

Lmao!

[mendelssohn]

I'm debating whether or not to go ahead and close my Credit One Visa once it hits the 2 year mark before applying for a mortgage in the next year.

 

Pros: the card is useless and has not been used in a long time. There is a monthly payment that is a percentage of the AF. The sooner I close it, the sooner it will fall off my report. When I do app for a mortgage, Sherman Financial will have no reason to be looking at my credit report and share the mortgage inquiry info with the collection branch of the company (in case I have any old collections with them that might pop up).

 

Cons: my AAOOA will take a hit since it is one of my oldest cards.

 

There's only 1 con, but it's a big one. Any advice?

[cleancredit2004]

Wow, you've done a great job! Congrats! I wish I would have stayed with my credit journey back when I started in 2004....but I focused more on my husband since he had the income and I was a SAHM. Now, I make more money then he does (since going back to school) and I'm back to focus on me, lol!

[nysbadmk8]

I'm debating whether or not to go ahead and close my Credit One Visa once it hits the 2 year mark before applying for a mortgage in the next year.

 

Pros: the card is useless and has not been used in a long time. There is a monthly payment that is a percentage of the AF. The sooner I close it, the sooner it will fall off my report. When I do app for a mortgage, Sherman Financial will have no reason to be looking at my credit report and share the mortgage inquiry info with the collection branch of the company (in case I have any old collections with them that might pop up).

 

Cons: my AAOOA will take a hit since it is one of my oldest cards.

 

There's only 1 con, but it's a big one. Any advice?

 

 

Ive kept mine since its one of my oldest cards.. but sooner or later we have to take the wheels off right?

[mendelssohn]

Wow, you've done a great job! Congrats! I wish I would have stayed with my credit journey back when I started in 2004....but I focused more on my husband since he had the income and I was a SAHM. Now, I make more money then he does (since going back to school) and I'm back to focus on me, lol!

Thanks! I've had to fight to get where I am. Now it's mostly a waiting game for the student loans to fall off. Good luck on your rebuilding.

 

 

 

I'm debating whether or not to go ahead and close my Credit One Visa once it hits the 2 year mark before applying for a mortgage in the next year.

 

Pros: the card is useless and has not been used in a long time. There is a monthly payment that is a percentage of the AF. The sooner I close it, the sooner it will fall off my report. When I do app for a mortgage, Sherman Financial will have no reason to be looking at my credit report and share the mortgage inquiry info with the collection branch of the company (in case I have any old collections with them that might pop up).

 

Cons: my AAOOA will take a hit since it is one of my oldest cards.

 

There's only 1 con, but it's a big one. Any advice?

 

Ive kept mine since its one of my oldest cards.. but sooner or later we have to take the wheels off right?

My main worry is a mortgage app.

[nysbadmk8]

 

Wow, you've done a great job! Congrats! I wish I would have stayed with my credit journey back when I started in 2004....but I focused more on my husband since he had the income and I was a SAHM. Now, I make more money then he does (since going back to school) and I'm back to focus on me, lol!

Thanks! I've had to fight to get where I am. Now it's mostly a waiting game for the student loans to fall off. Good luck on your rebuilding.

 

 

I'm debating whether or not to go ahead and close my Credit One Visa once it hits the 2 year mark before applying for a mortgage in the next year.

 

Pros: the card is useless and has not been used in a long time. There is a monthly payment that is a percentage of the AF. The sooner I close it, the sooner it will fall off my report. When I do app for a mortgage, Sherman Financial will have no reason to be looking at my credit report and share the mortgage inquiry info with the collection branch of the company (in case I have any old collections with them that might pop up).

 

Cons: my AAOOA will take a hit since it is one of my oldest cards.

 

There's only 1 con, but it's a big one. Any advice?

 

Ive kept mine since its one of my oldest cards.. but sooner or later we have to take the wheels off right?

My main worry is a mortgage app.

 

 

 

Talk to an LO.. or hit up brian B... see what they say. Your scores arent holding you back

[nysbadmk8]

BTW.. how in the world did you get Discover to give you a 8500 CL w/ a 641? I'm waiting till my TU is B* and clean... I wanted 700 or better for them..

Edited March 24, 2014 by nysbadmk8

[mendelssohn]

BTW.. how in the world did you get Discover to give you a 8500 CL w/ a 641? I'm waiting till my TU is B* and clean... I wanted 700 or better for them..

They pull a bankcard enhanced EQ FICO for apps and TU for CLIs. My EQ was 670 and according to Discover, 693 at the time of my app. No inquiries, $8 reporting on 1 CC and newest account was 8 months old.

[nysbadmk8]

 

BTW.. how in the world did you get Discover to give you a 8500 CL w/ a 641? I'm waiting till my TU is B* and clean... I wanted 700 or better for them..

They pull a bankcard enhanced EQ FICO for apps and TU for CLIs. My EQ was 670 and according to Discover, 693 at the time of my app. No inquiries, $8 reporting on 1 CC and newest account was 8 months old.

 

 

 

Thats a Win... EQ is my best report right now...

[cv91915]

I'm debating whether or not to go ahead and close my Credit One Visa once it hits the 2 year mark before applying for a mortgage in the next year.

Pros: the card is useless and has not been used in a long time. There is a monthly payment that is a percentage of the AF. The sooner I close it, the sooner it will fall off my report. When I do app for a mortgage, Sherman Financial will have no reason to be looking at my credit report and share the mortgage inquiry info with the collection branch of the company (in case I have any old collections with them that might pop up).

Cons: my AAOOA will take a hit since it is one of my oldest cards.

There's only 1 con, but it's a big one. Any advice?

How much is this costing you a year, and if you let it renew do you have to pay for an entire year?

[mendelssohn]

 

I'm debating whether or not to go ahead and close my Credit One Visa once it hits the 2 year mark before applying for a mortgage in the next year.

Pros: the card is useless and has not been used in a long time. There is a monthly payment that is a percentage of the AF. The sooner I close it, the sooner it will fall off my report. When I do app for a mortgage, Sherman Financial will have no reason to be looking at my credit report and share the mortgage inquiry info with the collection branch of the company (in case I have any old collections with them that might pop up).

Cons: my AAOOA will take a hit since it is one of my oldest cards.

There's only 1 con, but it's a big one. Any advice?

How much is this costing you a year, and if you let it renew do you have to pay for an entire year?

It's a monthly fee of just over $8. The AF is charged per month after the first year.