Uphill battle or am I on track?

[pb4953]

I’m looking for some advice on what to do as I am frustrated and ready to call it quits with all this credit stuff. I have been reading and learning from this board and appreciate and respect much of the advice. I hope someone can share some insight.

 

In 2008 I was slammed with the recession blues. Lost my job that paid well above six figures and my partner became very ill and is still to this day (six back surgeries and can hardly walk or sit). I am their only support now. I lost just about everything and coming within in hair’s width of losing the house. I had exceptional credit at this time. Obviously I defaulted on a lot of debt. Unlike many poor individuals I was able to find a job within six months but it paid a fraction of what I made, had no benefits and long hours.

 

Fast forward to January 2014; I started to pay attention to my credit again. I had lived for six years without it and felt I needed to look at it as my now thirteen year old car was dying and I needed to get another. I started with the free annual report for all three CRAs. Eighteen to twenty pages each and not worth the cheap paper I printed them out on. I knew it was bad but honestly had forgotten about some of the accounts. The old OC’s had not. I then decided to join Credit Sesame and Credit Karma to see what my scores where. I know they are Fako but I needed a barometer to see how much pressure was in the pot before pulling the lid off. I couldn’t pay the forty bucks a pop for a FICO so I figured this was a start. Well, TU=572, EQ=580 and EX=561. I thought to myself that it wasn’t as bad as I had thought; I foresaw 300’s and 400’s.

 

I began to go over the details of each report and like clockwork logged into CS and CK every week. I even bought CS monthly subscription but after three months figured the freebie was enough and canceled it. CK started to add Equifax to their offerings (I was in their beta testing group since I’m IT) making it even better for measuring. In September 2014 I took CK’s advertised card for your credit score offer and applied to Cap1 and was approved for a Platinum MC at $300.00 (currently $800). I was excited since I had not carried a credit card in six years. The feel of that hard plastic in an envelope brought tears to my eyes when it came. I started using it and always PIF. A few months later CK advised applying for a Cap1 QS1. I did and got another $500.00. The same day I got an email to apply for a Kohl’s, also from Cap1. Got it at $300.00. I know this isn’t anything special but it was a start for me.

Also in September I bought a car from a buy here pay here place. I figured with my credit I wasn’t going to waste my time and a dealer’s time trying to qualify; each attempt affecting my score as they pull multiple reports each time. I got a decent car, actually the best one on the lot at a payment I can afford but I know it is high in rate. I will keep it a year and then see what I can do later this year with a dealer. The car is paid on time and is reporting on all three CRA’s.

Like a bouncing basketball my scores started to come up on CS and CK. I started to look over the defaults and planned my deletion request with TU since, as advised here, they will delete at the 6.5 year mark. I did this online Saturday and asked for them to remove five old collection accounts DOFD 2008 and some old personal data that was obsolete. Sunday evening I got an email saying they had completed their investigation, couldn’t have been much of one in less than a day and a weekend to boot, and they had removed all of my requested items. I checked the corrected TU report and the items were gone.

 

I wanted to see what my score was via FICO with this stuff off TU’s report so I went to EX and paid the $39.00 for their three report/3 FICO score deal. Got data and was depressed to see that even though five collections where removed my TU score was only 610. Way below the 653 CK was claiming the day before the deletions. I have to admit I was expecting less than what CK said but not that much off and especially since old collections were removed. New accounts were reporting and a car loan. The other 2 CRA’s were EX=585 and EQ=631 about what I expected. After all this work I felt it was for nothing.

 

On my TU report I have LVNV, Millennium JDB’s left and 4 Judgments from them as well. They do not report the DOFD as the actual OC’s and that I will handle next. Six OC that will start to fall off later this year and early next year which I will deal with in late summer at the 6.5 mark.

 

My question is is this worth it? All this work and really no advancement that I can see. I really feel this credit score thing is a market ploy to get people to buy information products. I know credit is important as I have had it in the past with extremely high limits. I remember once going to buy an Explorer and pointing to one on the show room floor and saying I’ll take it. I was actually out the door in less than thirty minutes. Those were the days.

Am I giving up too soon at the one year mark? Do I continue on or is it a hopeless cause. I probably should have gone bankrupt back in 08 but my pride got in the way and I decided to hide under a rock. Any opinions would be appreciated. Sorry this was so long. I started with the idea of a paragraph of bullet points. Now I have a two page dialog.

 

Thanks

[tweak]

It is definitely worth it!

 

From what you describe, you are going to have clean reports within a year.

 

Don't worry about your scores so much right now -- they will jump when all your old negatives are gone.

 

You have 3 credit cards -- that is great for rebuilding, and you'll see the benefit over the next year as your reports improve.

 

Pay all your credit cards in full to $0 BEFORE the statement cuts each month.

The idea is for the statements to show a $0 balance each month, and report that to the CRAs.

FICO likes this.

(After your COs are all gone in the next year, let exactly one card report $2 each month instead of $0 -- for a little extra FICO boost.)

 

Keep plugging along.

Do the 1-2 punch with the JDBs.

 

Hopefully others can offer advice on the judgments.

 

If your auto loan is at a high rate, look into a CU to get a favorable re-fi.

 

Good luck!

[Jordan0542]

Have you looked into the Whychat method for judgements?

 

Also, hang in there. I am 15 months into my journey and wanted to crawl under a rock a few times. Now I am just weeks away from moving into my new house. It takes time, but 2016 will be your year, remember that whenever you get down.

[parisamour]

You're in good company here. Lots of knowledgeable people willing to help out. Good luck OP !

[VintageWillow]

Don't give up now!!! It is perfectly acceptable to take a break as needed, but you are doing great. For some inspiration I recommend reading some of the running threads that people have posted.

mendelssohn's road to 760+

is a good read for some inspiration.

[pb4953]

Thank you very much for your thoughts and recommendations. I appreciate it. I will take heed and look into what you suggested. I have been browsing the site for awhile and joined a few months back. There is a lot of knowledge and camaraderie here. I like that. At least I know I am not alone in a journey of great magnitude. From now on I'll keep it short, simple and try and use the acronyms you all use to make it concise.

[pb4953]

An update to my tome above (sorry again about the length). I got a 1K increase (to 1.5K) on my QS1 Saturday after reading another thread about the LUV button on Capt1 working well. The card is new and from February of this year. I was very surprised. I also had one of the LVNV collections drop off my TU report this weekend. Not sure why as I had not disputed that one yet as it wasn't due until mid summer. it was 3K and I noticed slight increases in my score. I won't ask questions. Thanks again for all your help and well wishes. Like I have read it is a long journey but I think worth the travel. Best to all in your credit endeavors.

[parisamour]

Congrats on the CLI & the early deletion !!

You're doing great!!

[Losluv]

Congrats on your CLI and stay the course! You're making solid progress on the negatives while growing your new TLs.

[Konrad2012]

More work, less sniveling.

 

One round of early deletion disputes on TU via online isn't a lot of work...and from the sounds of things you were successful at getting them all removed.