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RogerK08

Where to go from here

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Hello everyone,

Long time lurker but first time poster here, looking for a little help on where to go next to achieve my goals. Here is a little backstory on what I've done so far. 

I Should have Filed BK a long time ago but was too proud/stubborn to do so. I was absolutely buried in payday loan debt, buried to the point it took almost all of my paycheck to pay them. I basically ran credit cards up to get by. I took out a a 11k loan @ 25% earlier this year to knock out the payday loan debt and tackle some of the CC debt. I know the interest rate is ridiculous but its better than the payday loans and equal to or lower than the CC rates i was paying. I was able to get back on my feet with this loan and now actually have money to pay my bills and then some.  My goal is to get my score up high enough to secure a much lower interest loan to get rid of this crazy 25% loan and hopefully secure a card with a good BT offer to get rid of the rest of the credit card debt. 

Here is what i have going on currently

629 FICO Score 

the 25% loan has right around 10k left on it 

$7877 in revolving debt for a 67% utilization rate. Most of the cards with balances are still close to maxed out 80%+ Utilization 

I was just added as an AU to a card with a $6600 limit and 0 Balance. Once this reports my utilization should be down to roughly 43% 

As for baddies i currently have 1 collection that is due to fall off next month and 3 late payments from Credit one bank. I sent Credit one a goodwill letter and to my surprise i received a response yesterday that they will be deleting those late payments for me. So within a month or so my reports should be completely clean from baddies. 

I will be receiving  a small bonus from work soon. I should net somewhere between 1500-2k if i guessed right on taxes. Where should this money go once i receive it? Does it reflect better on your score to have more cards with 0% utilization or more cards with a balance but none of them with really high utilization?

Also what kind of score do you think i would need to secure a loan to get rid of my current  high % loan and secure a card with a good BT deal to help knock down my revolving debt quicker?


Thanks in advance for all of your help. 
 

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glad things seem to be turning the corner for you.  It will be tough to do much while you still have the collection on your report.  I would wait until that is gone before doing anything.  Depending on how much your score/report improves will dictate your next choice.

 

I think in your situation you might want to look into a CU?  Are you eligible for Navy Federal?  Their credit standards are a bit looser and can probably help with a loan to refinance that personal loan.  If not, there are other CUs that can help as well.  This may be a better option than your traditional lenders.

 

Do you have any emergency funds set up?  I am guessing little to none, which is why you are where you are.  Honestly, since you said you can manage the payments, I would not use any of that upcoming bonus on paying down the debt at this time, but rather save it as the start of an emergency fund.  The worst scenario would be for you to drop the whole bonus on the loan and then 2 weeks later need a major car repair or something of that sort and have to go down the payday loan route to end up right back where you started. 

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2 hours ago, CTSoxFan said:

glad things seem to be turning the corner for you.  It will be tough to do much while you still have the collection on your report.  I would wait until that is gone before doing anything.  Depending on how much your score/report improves will dictate your next choice.

 

I think in your situation you might want to look into a CU?  Are you eligible for Navy Federal?  Their credit standards are a bit looser and can probably help with a loan to refinance that personal loan.  If not, there are other CUs that can help as well.  This may be a better option than your traditional lenders.

 

Do you have any emergency funds set up?  I am guessing little to none, which is why you are where you are.  Honestly, since you said you can manage the payments, I would not use any of that upcoming bonus on paying down the debt at this time, but rather save it as the start of an emergency fund.  The worst scenario would be for you to drop the whole bonus on the loan and then 2 weeks later need a major car repair or something of that sort and have to go down the payday loan route to end up right back where you started. 

 

The collection is due to fall off in August so hopefully my score jumps a bit with that, the late payments gone and the revolving debt % decreased a bit. 

As for Navy Federal I have never been associated with the military, my father is a Vietnam vet not sure if that would get me in or not. I have been a member of a local CU for probably 20 years. I know they require a 640 score to be considered for a loan, their rates dont look great when browsing online but its somewhere to start. 

As for an emergency fund I dont have a ton but enough to cover most things that would pop up unless something catastrophic would happen to the house. Payday loans will not happen ever again, I dont even want to know how much money ive given those people while i was stuck in that cycle.

Refinancing that personal loan is my #1 goal as of now, taking care of the rest of my CC debt is #2 on the list.

Any idea on what rate i should be looking for once it gets to the point where i can refinance this loan? Any other pointers would also be appreciated, This financial mess has been going on too long, My scores were 70-100 points lower than they are now at the beginning of the year, I'm starting to see the light at the end of the tunnel and dont want to make a wrong move.

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Your dad's military service makes you eligible for NFCU membership. 

 

https://membership.navyfederal.org/#/step/family-member-in-military has a list of documents you may use to show your're eligible. NFCU has personally been good for me. I received a great rate on my used car loan about 3 1/2 years ago, when my credit was still only fair (I don't recall the exact score, though). Then, almost a year ago, I opened a goRewards card through them and they gave me a limit of $20,000, which I wasn't expecting. 

 

Consumer State: GA
Consumer Zip: 0
CRA: Trans Union
Date Applied: 08/28/2018
Approved: Yes
Score: 681
Credit Limit: 20000
Comments: 1 paid CO and a 30 day late 6 yrs. old; 66% util and 20% DTI
 
Right now their Platinum has a 0% BT offer. I would wait and see what your score is after that collection falls off. 

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1 hour ago, insolent1 said:

Here are NFCU's criteria for membership:

https://www.navyfederal.org/membership/become-a-member/eligibility.php

 

 

They have changed their criteria somewhat* recently, as it used to be if you weren't a retiree (meaning 20 yrs/pension) and no longer active duty/reservist and you didn't join when you were active, you weren't eligible.  I am glad to see they have changed it to include those who served for a shorter period but chose not to have a military career.

 

OP - In order to join your dad would have to join, then he can sponsor your membership.

 

*I say somewhat because it may have been this year, it may have been since I joined 10 years ago...but I think it was more on the recent end.

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On 7/28/2019 at 4:24 PM, CTSoxFan said:

They have changed their criteria somewhat* recently, as it used to be if you weren't a retiree (meaning 20 yrs/pension) and no longer active duty/reservist and you didn't join when you were active, you weren't eligible.  I am glad to see they have changed it to include those who served for a shorter period but chose not to have a military career.

 

OP - In order to join your dad would have to join, then he can sponsor your membership.

 

*I say somewhat because it may have been this year, it may have been since I joined 10 years ago...but I think it was more on the recent end.

Thanks for the help. I doubt i can talk him into joining but its worth a shot. 

A little update on everything: The late payments have been deleted according to credit karma. Somehow my FAKO score dropped about 50 points with the only thing changing being balance decreases and late payments falling off LOL. We will see what fico says when i get my monthly update in a few days. The AU card hasnt posted yet, the statement is cut the 13th so i assume i will see that show up after that. The collection was due to fall off this month, just not sure what date, cant wait to see that gone. 

 

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3 hours ago, RogerK08 said:

Thanks for the help. I doubt i can talk him into joining but its worth a shot. 

A little update on everything: The late payments have been deleted according to credit karma. Somehow my FAKO score dropped about 50 points with the only thing changing being balance decreases and late payments falling off LOL. We will see what fico says when i get my monthly update in a few days. The AU card hasnt posted yet, the statement is cut the 13th so i assume i will see that show up after that. The collection was due to fall off this month, just not sure what date, cant wait to see that gone. 

 

He only needs to join and open a savings account with $10, then he can sponsor you.  I think he can probably close the account after you are in, but I would wait a couple of months to be certain.

 

As far as your score, it may be the result of rebucketing (or the fact that you are referencing credit karma which is worth less than a pile of dogshit).  When you have bad items on your report, the scoring algorithm buckets you with others that have similar bad items on their reports and compares you to that group.  Now that the lates are gone, you are compared to a different group.  When the collection falls off, don't be surprised if you see a modest increase or a decrease.  Just keep doing the right thing (pay on time and in full and don't apply for a ton of new accounts) and you'll get to where you want to be.

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Quick Update

Good news.

TU Fico 08 sits at 665 so ive seen a 36 point jump in a few months time. 

The collection is gone, the lates from C1 are gone. 

Sitting at 40% utilization on revolving 

Still have a couple accounts over 80% but im getting very close to being under that mark. 

I had a closed comenity card with a balance, this has now been paid in full.

I got my foot in the door with Discover, crappy starting limit but hopefully it will grow unlike the trash cards i currently have. 

I wont be applying for any other credit

I have enough cash in savings to deal with an emergency

The bad.

I forgot about several 30 lates from a closed chase mortgage that was sold. I didnt see them on the CK report but they are definitely there on the real reports. From the research ive done it looks like im most likely stuck with these until they fall off. 

Still have the 25% personal loan. I haven't bothered with trying my credit union yet. I know 640 is the minimum score  for them to approve you but i want to be a little higher than i am now before trying.  I have done a few of the soft pull pre approvals for online personal loans. they've come back with better rates than what i have now but nothing close to making me want to pull the trigger. Now i get to deal with call after call from these clowns. 

It was a no go with NFCU

Edited by RogerK08

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14 hours ago, RogerK08 said:

I forgot about several 30 lates from a closed chase mortgage that was sold. I didnt see them on the CK report but they are definitely there on the real reports. From the research ive done it looks like im most likely stuck with these until they fall off. 

Nothing prevents you from attempting goodwill adjustments from the current servicer, even though the account is closed.  Also, look for errors in reporting for disputing purposes (do you have hard copies of all of your reports which you received via US Mail?). 

 

Who is the current servicer?  How old is the most recent late?

 

PS:  I quoted this section to comment specifically, but the remainder of your post shows progress.  You're off to a good start.  Keep at it!  Your tenacity will keep you moving up.  :good:  

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1 hour ago, cv91915 said:

Nothing prevents you from attempting goodwill adjustments from the current servicer, even though the account is closed.  Also, look for errors in reporting for disputing purposes (do you have hard copies of all of your reports which you received via US Mail?). 

 

Who is the current servicer?  How old is the most recent late?

 

PS:  I quoted this section to comment specifically, but the remainder of your post shows progress.  You're off to a good start.  Keep at it!  Your tenacity will keep you moving up.  :good:  
 

1. Yes i have paper reports, Everything looks accurate to me
2. Flagstar Bank is the current holder of the loan. 
3. Most recent late is from early 2018. I dont have the reports in front of me but i want to say May 

Edited by RogerK08

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Quick update.

Score was 668 with 3 cards reporting over 88.9 at the beginning of the month. All three of those cards are below that mark, one being under 68.9% I have also paid a few others off completely and paid one or two others below their next utilization threshold. 

Paypal Credit started reporting, it was near maxed out but has been paid down to around 80% 

Total utilization is right at 35%

Im not using any credit cards besides the discover which I am using for the rewards and paying in full weekly. 


My plan is to call my local credit union as soon as that last card reports around a week from now, hoping these changes gained me a few points and I can refinance some of it not all of my debt at a much lower interest rate.

Wish me luck

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43 minutes ago, RogerK08 said:

Quick update.

Score was 668 with 3 cards reporting over 88.9 at the beginning of the month. All three of those cards are below that mark, one being under 68.9% I have also paid a few others off completely and paid one or two others below their next utilization threshold. 

Paypal Credit started reporting, it was near maxed out but has been paid down to around 80% 

Total utilization is right at 35%

Im not using any credit cards besides the discover which I am using for the rewards and paying in full weekly. 


My plan is to call my local credit union as soon as that last card reports around a week from now, hoping these changes gained me a few points and I can refinance some of it not all of my debt at a much lower interest rate.

Wish me luck

Impressive job staying on task and making progress!

 

Best of luck on the CU activities.

 

At some point you should qualify for a 0% BT card.  Not sure if you've already tested the waters.  Something to consider if you have not. 

 

Edited by cv91915

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1 hour ago, cv91915 said:

Impressive job staying on task and making progress!

 

Best of luck on the CU activities.

 

At some point you should qualify for a 0% BT card.  Not sure if you've already tested the waters.  Something to consider if you have not. 

 

The BT card is what I've been hoping for but haven't found one yet, all ive tried for are cards with pre-approval sites. 

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21 hours ago, RogerK08 said:

The BT card is what I've been hoping for but haven't found one yet, all ive tried for are cards with pre-approval sites. 

I think you'll be better positioned once you get your existing utilization below 70 (or better, below 50) on your current cards.  

 

Once you get there and the balances update on your reports, consider a blind app for a good BT card.

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34 minutes ago, cv91915 said:

I think you'll be better positioned once you get your existing utilization below 70 (or better, below 50) on your current cards.  

 

Once you get there and the balances update on your reports, consider a blind app for a good BT card.

Are there any specific BT cards you would recommend? 

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8 hours ago, RogerK08 said:

Are there any specific BT cards you would recommend? 

I'm not current on the best ones, but there are numerous options out there.  
 

Look for the longest 0% duration you can find and the lowest transfer fee ($0 is obviously ideal).

 

Hopefully someone with recent experience will post specific recommendations.

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fico got up to 684 after my last payments for the month reported. I went ahead and applied for a debt consolidation loan from the local CU. I applied on Wednesday and haven't heard anything back as of yet, I will report back when i hear from them but i dont have a very good feeling after two business days of silence. 

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1 hour ago, RogerK08 said:

fico got up to 684 after my last payments for the month reported. I went ahead and applied for a debt consolidation loan from the local CU. I applied on Wednesday and haven't heard anything back as of yet, I will report back when i hear from them but i dont have a very good feeling after two business days of silence. 

There’s a good chance that some of the people that would review your application have taken a long weekend due to Thanksgiving. So that department may be either closed or short staffed until Monday. I’d give it a couple more days before getting worried. 

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3 hours ago, DPB said:

There’s a good chance that some of the people that would review your application have taken a long weekend due to Thanksgiving. So that department may be either closed or short staffed until Monday. I’d give it a couple more days before getting worried. 

That was my thought as well, ill be impatiently waiting,

What bothers me is i actually spoke with the loan dept on the phone before applying to make sure they were aware of the purpose of the loan and to try to set up an in person appointment. I was told to just apply online and to expect a phone call shortly after to give them more info, which i never received. 

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On 11/30/2019 at 5:50 AM, RogerK08 said:

fico got up to 684 after my last payments for the month reported. I went ahead and applied for a debt consolidation loan from the local CU. I applied on Wednesday and haven't heard anything back as of yet, I will report back when i hear from them but i dont have a very good feeling after two business days of silence. 

For the most part, Friday was not really a business day.  Yes, markets were open, but as it relates to banks, many of the actual officers would have been out of the office enjoying the holidays...

 

Further, of those who were unlucky enough to BE in the office last week, I can assure you that not much was being done even on Wednesday.  Far less would have been done on Friday.  Thus anything submitted on Wednesday of last week won't likely see any manner of decision until tomorrow or Wednesday at the earliest as they will spend much of today playing catch-up.  Courts are the same way...

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23 hours ago, centex said:

For the most part, Friday was not really a business day.  Yes, markets were open, but as it relates to banks, many of the actual officers would have been out of the office enjoying the holidays...

 

Further, of those who were unlucky enough to BE in the office last week, I can assure you that not much was being done even on Wednesday.  Far less would have been done on Friday.  Thus anything submitted on Wednesday of last week won't likely see any manner of decision until tomorrow or Wednesday at the earliest as they will spend much of today playing catch-up.  Courts are the same way...


 

I understand what you're saying here, it makes perfect sense,  I still haven't heard a word from them, good or bad. No email confirmation that i submitted an application, just silence.  Heck the only reason i know anything has happened is all the notifications i received from the hard pull.  

I guess it just irritates me that I couldn't even get a in person appointment, or even an automated email saying " hey we received your application, we will reach out to you within X amount of business days".  Especially when their whole selling point on their website is basically come give us you're business and experience the credit union difference where you're more than just a number. 

Edited by RogerK08
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