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Brandon1008

Rebuilding Credit - Advice Please

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Hello,

 

My Score is 636 and looking to improve. I have 1 Charge off for 6k (I have a topic opened on that). I have not decided if I should pay that or not... I think Ill wait for now. It will fall off in 3.5 years and I do not want to wait that long... but CO's are bad... even if I paid in full.

 

I have about 13k in my saving and I always keep 500-1000.00 in my checking account.

 

I currently have 2 credit cards.... 1 for $150.00 limit and another which is a secured Cap1 for $200.00 limit that I paid $49.00 for 15 months ago.

 

Today I applied and was accepted for a regular Credit card through Cap1 for 3k. I wont really use this except to build credit as the interest is high.

 

So my only credit is 3 cards for a total of $3,350.00.

 

What else should I open to build credit and improve score? What would YOU do?

 

Thanks.

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Is the CO still within SOL for lawsuits? Are you planning on getting a mortgage within the next 3 years?

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Congrats on the new Cap1 card. That's pretty meaningful in Cap1s perspective.

 

I'd go ahead and rebuild with some easier cards like Synchrony (GECRB)

Look at my signature and you will find loads of them. They've been really good to me. I just used the backdoor today to increase CLs on my Banana Republic Visa and Dillard's AMEX.

 

Don't be afraid of low initial limits. Treat Synchrony right and they'll do the same. I have total 76.3k with them at the moment across the cards.

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Is the CO still within SOL for lawsuits? Are you planning on getting a mortgage within the next 3 years?

 

No, I believe MD has a 3 yr. SOL which I am passed. They didnt try hard at all to collect... no letters or anything. I did receive some from a CA after about 6 months, but the CA is NOT listed on any of my reports.. the OC is.

 

I would like to buy a house in exactly 2 years, but not likely.

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Does anyone else have any recommedations? or links/articles you could point me to? Thanks.

Edited by Brandon1008

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I would like to buy a house in exactly 2 years, but not likely.

 

 

Others can chime in, but please remember that home-buying is a different credit product and a process that uses similar but different credit criteria. Some here have found buying a home easier (i.e. after Bankruptcy) since its a loan secured by the home itself.

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Should i have some type of installment loan? I have many paid off loans, but all are from years ago. ie. vehicle, student loan, ect.

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if your previous installment loans were paid off in good standing and STILL being reported, then it wouldn't be necessary at this time IMHO to get another installment loan just for the sake of having one, unless you have run into some trouble recently and would like to prove you are still capable of maintaining a good installment loan payment history.

 

But even then, I would rather concentrate on factors of your credit that MAY need improving, such as keeping utilization of credit lines low, maintaining good RECENT payment history, cleaning up errors on credit reports, etc.

 

You'll be on your way to getting that house in 2 years, hopefully.

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My utilization is well under 30% and with the 3k approval from today it will be very low in a few weeks or the next time they report/update.

 

I have no errors on my reports, and ALL of my payment activity is good minus the old charge off mentioned. Not sure what to do about the charge off so trying to improve in other areas for the time being.

 

Thanks for the help.

Edited by Brandon1008

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Dude don't worry about your credit.. just let it flow and DONT miss any payment eventually will go up... if I were you I would apply for 1 or 2 more CC and close the 2 low limits... just freeze EX and apply.. barclaycard is one option they have one CC for average credit. I remember I got approved with a 620 7 month ago.. good luck

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I would like to buy a house in exactly 2 years, but not likely.

 

Others can chime in, but please remember that home-buying is a different credit product and a process that uses similar but different credit criteria. Some here have found buying a home easier (i.e. after Bankruptcy) since its a loan secured by the home itself.

The question about buying a home arises because SOME mortgage lenders require that any unpaid COs or CAs be paid. Edited by Second Chances

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Dude don't worry about your credit.. just let it flow and DONT miss any payment eventually will go up... if I were you I would apply for 1 or 2 more CC and close the 2 low limits... just freeze EX and apply.. barclaycard is one option they have one CC for average credit. I remember I got approved with a 620 7 month ago.. good luck

 

OP isn't in a position to close cards. He needs to thicken his file with positive trade line.

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I agree CV....

 

also someone building or rebuilding shouldn't just leave the credit to grow on its own....

 

there are successful methods mentioned here in CB to nurture the credit to the desired levels and achieving robust FICO scores faster.... gardening as it were.... ie asking for CLIs every 4-6 months depending on the creditor, wisely choosing what trade lines to add to the credit profiles.... etc.

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Dude don't worry about your credit.. just let it flow and DONT miss any payment eventually will go up... if I were you I would apply for 1 or 2 more CC and close the 2 low limits... just freeze EX and apply.. barclaycard is one option they have one CC for average credit. I remember I got approved with a 620 7 month ago.. good luck What was your credit limit with barclay when you got approved?

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Is the CO still within SOL for lawsuits? Are you planning on getting a mortgage within the next 3 years?

 

No, I believe MD has a 3 yr. SOL which I am passed. They didnt try hard at all to collect... no letters or anything. I did receive some from a CA after about 6 months, but the CA is NOT listed on any of my reports.. the OC is.

 

I would like to buy a house in exactly 2 years, but not likely.

 

 

 

If the SOL has passed, then ignore the debt. Because you have no immediate NEED for credit (mortgage), don't pay the CO.

 

Continue using your credit cards and always pay on time. Add some more revolving accounts (no store or subprime cards) and let them age.

 

Your credit profile will gradually improve. In the meantime, you can try disputing that CO with the CRA.

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Dude don't worry about your credit.. just let it flow and DONT miss any payment eventually will go up... if I were you I would apply for 1 or 2 more CC and close the 2 low limits... just freeze EX and apply.. barclaycard is one option they have one CC for average credit. I remember I got approved with a 620 7 month ago.. good luck What was your credit limit with barclay when you got approved?

It was $500 then after 6 month called and they bump it to $1200 With a 720 TU credit score...

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Update:

 

Ive joined NFCU and since they had to run my credit to open Check & Save accounts, I decided to apply for the NFCU cash rewards Visa.

 

I was approved for 2k @ 17% interest.

 

This will be used for building credit. I went from 2 CC's (1 secured, $200 limit & 1 PayPal, $150 limit) to now a total of 4.

 

The CapOne @ 3k and the NFCU @ 2k.

 

I think I will let this alone for a few months and use the cards a little, PIF and request a CLI in 3-4 months. Is that a wise plan??

 

Still leaving my 1 CO alone... the heck with them. Cant beleive they turned down a FREE 6k... but so be it.

 

Thanks for the contining advice.

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Update:

 

Ive joined NFCU and since they had to run my credit to open Check & Save accounts, I decided to apply for the NFCU cash rewards Visa.

 

I was approved for 2k @ 17% interest.

 

This will be used for building credit. I went from 2 CC's (1 secured, $200 limit & 1 PayPal, $150 limit) to now a total of 4.

 

The CapOne @ 3k and the NFCU @ 2k.

 

I think I will let this alone for a few months and use the cards a little, PIF and request a CLI in 3-4 months. Is that a wise plan??

 

Still leaving my 1 CO alone... the heck with them. Cant beleive they turned down a FREE 6k... but so be it.

 

Thanks for the contining advice.

 

:good:

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Congrats on the new accounts. Use them, always PIF and request CLI in 6 months.

 

As for the CO, either dispute with the CRA or just let it sit there. Maybe another year of aging will persuade these clowns to do a PFD (at 35-40%)

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Congrats on the new accounts. Use them, always PIF and request CLI in 6 months.

 

As for the CO, either dispute with the CRA or just let it sit there. Maybe another year of aging will persuade these clowns to do a PFD (at 35-40%)

 

Ok thank you. I did an online dispute with TU and it came back as the exact same. I think I see a problem... they reports I was late for a few months and then it went to CO. It says "account closed by credit grantor". If I remember correctly, I actually closed the account. Should I dispute with a mail in copy now?

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In addition to my 2 questions above, what should I do (if anything) with the PayPal Smartconnect card?

 

-Its my oldest open account.

 

-The interest is 26.99%

 

-The limit is $150

 

-Bank that hold "SmartConnect" is Synchrnony Bank (formerly GE)

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Your chance of successfully disputing the CO with the CRA is slim but it may come off with some persistence. MAIL in your dispute, citing incorrect info.

 

As for the Paypal account, keep it open until your newer accounts have aged. The interest is of no significance if you don't carry a balance.

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Ok guys, its been since July and I think have improved a LOT with my credit.

 

Ive also gotten a nice raise from work, and have a good cash reserve... but still adding.

 

Im looking on what I could do to keep improving my credit. Id also like to get BETTER credit cards with no such high interest.

 

What I have so far is:

 

Cap1 Secured Card - I don't use this anymore... $200 limit

Cap1 Platinum - $3,000 limit. $272 balance.

WalMart - $150 limit. $26 balance. I got this for the free FICO score. My Score as of now is 698 :)

NFCU Checking LOC - $1,000 limit. $140 balance

NFCU Cash rewards VISA - $3,000 limit. $334 balance.

Ally Auto - HAD to buy a new truck. 5.9% interest. 25,528 owed. Payment is CHEAP! :)

PayPal Smart Connect CC (GE Bank) - $150 limit. $44 balance

 

$15k in Savings,

$500 - $1000 in Checking.

Edited by Brandon1008

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