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Cherylbelinda

Rebooting my credit

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Hi there. 54 year old grandma fell on hard times in 2008 after sickness and job loss. I really felt life was over for credit until the house I was renting went into foreclosure. Long story short I started to do things to rebuild credit such as secured cards. I got three and then my scores went up and I got preapproved to buy the house I live in.

 

One day I learned of shopping cart trick and I fear I may have messed up again. None of the cards are maxed out or anything but I have a lot of them . Worried it may mess up approval for mortgage.

Myc scores after these cards

Eq 583

Tu 599

Ex 649

 

Here are cards and limits

Sdfcu visa 300

Fnb visa 300

Capital one platinum secured 300

Capital one venture 500

Kohls 300

Newegg 500

Walmart 1000

Evine live 400

Victoria secret 250

Marisota 250

Simply be 250

Hsn 750

Overstock 750

Lanebryant 300

Ashley stewart 300

Pier 1 750

I am embarrased, but I couldnt/wouldnt stop applying

My utilization is 25%

 

I want to get a house soon but now shame and terror have me filled with anxiety. Sould I close the accounts or garden and restrain myself?

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​I would close most of the store cards. I'd keep Walmart. Mortgage lender will most likely ask you to close most of them.

 

One more thing......You have a Cap1 Venture with only a $500 credit limit? Is that a typo?

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How were you preapproved for a mortgage with a mid fico of 583?

Reading comprehension is required. She was PREAPPROVED, then applied for those cards and her score dropped.

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May I ask where you learned about the shopping cart trick? And did anyone encourage or more importantly attempt to discourage you from this application spree?

 

In all likelyhood, you probably apped yourself out of a mortgage for a while.

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I fear you're not in a place to be approved for a mortgage at this point. FHA loans require that your middle FICO score be 640+. Most lenders plan on selling the loans they originate, so they conform to FHA standards. If you're a military veteran, VA has lower requirements. Barring that, you're probably a 6-12 months of clean-up away from a mortgage approval.

 

Applying for a lot of store cards is bad, because the inquiries count against your score - especially when you don't have a healthy file to offset the impact. But on the existing store cards -- the cards themselves don't hurt you. The issue is that with those tiny limits, any use at all will typically put you at over 30% utilization, and that WILL hurt your FICOS --- a LOT! I suggest that you close any store cards that you don't have a specific purpose for.

 

With your weak credit file, you should be reporting 0% utilization. Go ahead and use the cards, but monitor your account online, know when your statement cuts, and pay the balance in full before the statement end date each month. Assuming you don't have any negative items on your reports, a couple months of 0% utilization will get your scores back up.

 

And that raises the question -- Do you have any negative items on your reports still (collection accounts, charge-offs, late payments, etc)? If you haven't done so already, get a copy of all three credit reports - directly from Equifax, Experian, and Transunion. You're entitled to one free report each year (go to annualcreditreport.com ). You're also entitled to a free report anytime someone uses the report for a credit decision. If you've applied for any new credit in the past 60 days, you can use that to get a copy of your report.

 

If your financial world fell apart in 2008/2009, you're at the point where any negative items will be dropping off (negatives can only report for 7 years). But you should check your credit reports to make sure there's nothing there that needs helping along.

Edited by JeffeVerde

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Wow! That was fast and thanks you all for your honesty. Initially I was approved and my Middle score was 640. A lot of things fell off and I only had 4 collections which are medicals one of which was a 1200 dollar ambulance ride the others were less than 100.00

 

I keep up with credit reports and I now am sick to my stomach when I see my report.

 

I am trying to work out a deal with collection agency to pay and get the 1200 charge and have it removed.

 

I will definitely heed the advice you wonderful souls have given and get myself out of this jam.

 

One thing I wanna say is that at one point in my life my credit was A1 and after being in a bad place for so long getting those cards made me feel better about myself, but now that buzz is gone and I feel like a loser. I have to be positive now and do all I can to get the house. This is a small thing to a giant. I will overcome this.

 

Forgot to mention Amazon for 1200

 

Also I am retired because of health and my income is Pension.

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And yah I have the venture card

And the limit is only 500. I didn't think Cap1 issued Venture cards with that low of limit.

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​I would close most of the store cards. I'd keep Walmart. Mortgage lender will most likely ask you to close most of them.

 

One more thing......You have a Cap1 Venture with only a $500 credit limit? Is that a typo?

Sorry it's the Quicksilver card

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How long have you had your cards for? You might be able to get some CLIs on some of them.

Edited by AnnMichele

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On those medical bills -- there's a forum section here specifically for medical collections, and one of the contributors here has put together a proven method of dealing with those medical bills (both the service providers and the CA's are pretty clueless as to what HIPAA allows in credit reporting, and they almost always are in violation).

 

Before doing anything else, I strongly suggest that you go the medical collections forum and post the details of your medical accounts there. In two months, I bet your report will be clean of all of them.

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I just want to agree with Jeff. Don't try to work on those medicals yourself. Why Chat's HIPAA process has a very high success rate. Follow the process to the T. Read some of the threads in the medical forum to get an idea of where to start, then start your own for specific and personal guidance from Why Chat.

 

Welcome to CB :wave:

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