View Full Version : GR's Guide To Changing Bad Credit Into Amazing Credit In Less Than 6 Months
GlamourRouge
07-21-2014, 11:08 PM
Why are refis bad? More credit for the lender. I get things in the mail from wells all the time for their free 3 step refi. I've done it 3 times to lower my rate. Didn't cost me a thing. If it were a bad thing for them I don't know why they openly advertise it.
Its not dumb, its totally smart. They have refis with auto loans too. Its exactly the same thing as your loan being transferred lenders..Im assuming it would show up just like that on a credit report, with a $0 paid off balance for the old loan and a brand new loan with the new company listed as a new account & starting around the month the previous one left off.
Does your credit report say anything on the item with the old lender? Or does it just show "paid in full / transferred / closed with a $0 balance"? If it doesn't mention refinance, then I don't see how on earth anyone could ever tell the difference between a refinanced loan and someone who buys multiple properties in the same price range and pays them off before the loan is up.
I've never refi'd anything, but I have had a loan change lenders, and it was perfectly fine. I can't understand why it would be a bad thing. If a bank doesn't want to do business with you because you are maximizing your OWN money and are smart enough to do so, then you don't want to do business with that bank TBH because they're shady. Sorry, but to me, even if it did say "closed and refinanced" I would still think that person is a worthwhile customer because they have proven they are knowledgeable and responsible with their own money.
michele11
07-22-2014, 03:47 PM
No melonie was saying mortgage companies don't like refis.I was referring to her post. Yeah I believe it shows the old amount and says paid in full. its wells Fargo so anyone who looks at the report can see it was a refi.
michele11
07-22-2014, 03:51 PM
Believe me it doesn't hurt your credit. I've owned homes for 24 years and have done multiple ref is over the last 20 years .
michele11
07-22-2014, 03:52 PM
Fucken phone I was trying to quote vamps post!
Under new regulations and policies lenders have to look for responsibility with credit.
The original issue in this part of the discussion was opening and closing credit cards every few months. This kind of turn over with credit looks irresponsible to lenders.
They know when you refinancing. They are trained to read credit reports. They are trained to look for issues people are trying to hide or game the system.
Someone who has 24 years of positive mortgage history on their credit report isnt going to have the same issues as someone who is rebuilding credit or applying for their first mortgage.
As I posted the FICO website agrees with me. Take it how ever you want.
GlamourRouge
07-23-2014, 01:46 AM
The original issue in this part of the discussion was opening and closing credit cards every few months. This kind of turn over with credit looks irresponsible to lenders.
They know when you refinancing. They are trained to read credit reports. They are trained to look for issues people are trying to hide or game the system.
No, I never ever said that. I said when you are building or re-establishing credit, you close the original card because it is a secured card, but you opened another one 3-4 months later already so the second card becomes your oldest card. That was talking about closing ONE card, your first cc with a low limit unless you gave an unnecessary large deposit. The card secured so the limit never increases, which makes a lot of sense to eventually close it.
I flat out had a company tell me they couldn't give me a higher credit line because one of my cards (the secured one) had a low limit in comparison to my other cards. Closed it, and my credit limit skyrocketed a month later with the company. So credit limit is definitely a factor some several lenders. By closing the secured card at one year, you don't have to worry about that anymore.
michele11
07-23-2014, 04:16 PM
Under new regulations and policies lenders have to look for responsibility with credit.
The original issue in this part of the discussion was opening and closing credit cards every few months. This kind of turn over with credit looks irresponsible to lenders.
They know when you refinancing. They are trained to read credit reports. They are trained to look for issues people are trying to hide or game the system.
Someone who has 24 years of positive mortgage history on their credit report isnt going to have the same issues as someone who is rebuilding credit or applying for their first mortgage.
As I posted the FICO website agrees with me. Take it how ever you want.
Are you saying it's irresponsible to refinance?
I know you want to think I am making this all up.... but im really not. All the info below comes from the FICO education center about how FICO scores are calculated.
http://www.myfico.com/CreditEducation/Types-of-Credit.aspx
Have credit cards – but manage them responsibly
Having credit cards and installment loans with a good payment history will raise your FICO Score. People with no credit cards tend to be viewed as a higher risk than people who have managed credit cards responsibly.
What types of credit accounts you have
Do you have experience with both revolving credit and installment type accounts (auto loans, mortgages etc), or has your credit experience been limited to only one type?
How many types of credit accounts
Your FICO® Score also looks at the total number of accounts you have. How many is too many will vary depending on your overall credit picture.
How many new accounts you have
Your FICO® Score looks at how many new accounts you have by type of account. It also may look at how many of your accounts are new accounts.
Don't open new accounts too rapidly
If you have been managing credit for a short time, don’t open a lot of new accounts too rapidly. New accounts will lower your average account age, which will have a larger effect on your FICO® Score if you don’t have a lot of other credit information. Even if you have used credit for a long time, opening a new account can still lower your FICO Score.
http://www.myfico.com/CreditEducation/New-Credit.aspx
GlamourRouge
07-24-2014, 01:31 PM
^^^ All that means is that:
1.) too many accounts opened in the last year will temporarily lower your score, and
2.) FICO goes off the average age of your accounts.
How is that... bad? You absolutely cannot build credit without credit cards. You have to open a bunch at some point, especially when rebuilding credit. Like I said a million times, I was only talking about closing your ONE secured card, and only because the credit limit won't raise on that card so its pointless to keep open.
Also, if your loan lender is transferred, it will turn into a new account, so there is no way that looks bad. It would look the same for a new account or a refi as well. That actually helped my score TBH when it happened to me.
And honestly (and I've done this successfully), you can dispute closed cards and half the time they are deleted off your report completely because there's absolutely no incentive for a company to take time out of their day to verify a closed & paid off card.
Melonie
08-19-2014, 01:49 PM
returning to the basics ...
(snip)The first thing you need to understand is how your credit score is determined. General information is available from Fair Isaac, although the exact algorithm used to determine your credit score is a secret closely guarded by each credit agency. The general guidelines about how your credit score is compiled are broken down into five main categories, with the following percentage weight for each:
•35% payment history (only includes payments later than 30 days)
•30% debt-to-credit ratio
•15% length of credit history
•10% new credit
•10% type of credit in use (installment, revolving, consumer finance) (snip)
thus opening new credit accounts provides a negative force in the 'new credit' category, but also potentially provides a positive force in the 'debt to credit ratio' category which has a higher weighting factor. The decision regarding opening additional credit accounts actually boils down to the total amount of existing credit lines available versus total verifiable income. Unofficial rule of thumb is that total ( unsecured ) credit lines available should be somewhere between 15% and 30% of verifiable annual income. Unofficial rule of thumb also is that the actual amount of credit lines utilized should be between 15% and 30% of total credit lines available.
lynn2009
08-19-2014, 03:51 PM
When calculating debt to income ratio...I know the debt aspect includes mortgage, student loans, minimum credit card payments, car loans but I've never been able to get a clear answer as to whether or not other recurring monthly expenses like rent or a cable bill is included also.
GlamourRouge
08-19-2014, 06:03 PM
When calculating debt to income ratio...I know the debt aspect includes mortgage, student loans, minimum credit card payments, car loans but I've never been able to get a clear answer as to whether or not other recurring monthly expenses like rent or a cable bill is included also.
No, its not included. Rent, cable bill, utilities, cell phone are not on your credit report so they don't count. They will be on your credit report as a collection account if you don't pay them though.
arielbriel
08-19-2014, 10:32 PM
OKay, I think I made a mistake. I got my letter from CHexsystems and immediately paid off the debt (BOA). BOA sent me a letter saying that I paid this in full and I'm going to mail that to them.
Then, I got my credit report for experian and there were 4 things on there that I paid off in full... are they just going to sit there or can I get them removed? How do I get them removed if I already paid for them. OMG :'( I misread your advice and now IDK what to do. What's the point of paying them in full if they don't get removed???
arielbriel
08-20-2014, 12:06 AM
Should I send a certified pay to delete letter even though I already paid? Should I call and ask them to manually delete it? Should I sent a good will letter to all four creditors? I feel like I just fucked myself. I want to cry.
Melonie
08-20-2014, 03:50 AM
^^^ that's a dicey situation since you did pay off the debts. Thus it's difficult to dispute the accuracy of the reports. I'd try sending the 'good will' letters.
However, 'early' repayment is certainly better than 'late' non-payment. So even if your 'early' repayment reports hang around for a while, it isn't the end of the world.
arielbriel
08-20-2014, 11:32 AM
Should I call them first or proceed with the good will letters?
michele11
08-20-2014, 04:07 PM
It depends what kind of debt but it will show for 7 years. When you paid were they in collections? If so you should of got something in writting saying they'd remove it. Otherwise it's hard. i had a macys that was 3 months late( I never used it only like for foundation. I paid it in full and it still shows as a deliquent account but with zero ballance.
arielbriel
08-20-2014, 09:52 PM
Yes, they were in collections. I thought (stupidly) that if I paid them, they would be removed in about 6 months to a year. :'(
GlamourRouge
08-21-2014, 04:11 AM
What's the point of paying them in full if they don't get removed???
There's really no point TBH. But most people don't know that.
At this point, a credit repair person would suggest: wait 6 months and then dispute as not yours, and they likely won't reply and it will get deleted. But they may reply. They would also likely suggest to try and call the company and and tell them its not yours too. A credit repair person would justify the ethics of this as that they should be able to prove it belongs to you regardless.
Melonie
08-21-2014, 09:28 AM
When you paid were they in collections? If so you should of got something in writting saying they'd remove it. Otherwise it's hard. i had a macys that was 3 months late( I never used it only like for foundation. I paid it in full and it still shows as a deliquent account but with zero ballance.
This is a critical point with any debt 'negotiations'. Once the delinquent debt has actually been repaid or 'settled', the creditor has absolutely no incentive to see that the repaid or 'settled' debt is removed from credit reports. But BEFORE a full or partial 'settlement' payment is actually made, the debtor does have some amount of leverage to include a credit report 'whitewash' by the creditor as a condition of payment.
There's really no point TBH. But most people don't know that.
In the 'real world', this isn't exactly true. At least with a full or partial 'settlement' payment, the debt is 'satisfied' and the credit report clock gets set in motion without future possibility of a 'reset'. Non-payment can result in the bad debt being resold, which raises the possibility of unpaid interest / penalty charges leveed by the new creditor causing another entry on credit reports as well as 'resetting' the debt clock. By the letter of the law this is no longer allowed, but in 'real world' terms it often still happens.
GlamourRouge
08-21-2014, 02:45 PM
This is a critical point with any debt 'negotiations'. Once the delinquent debt has actually been repaid or 'settled', the creditor has absolutely no incentive to see that the repaid or 'settled' debt is removed from credit reports. But BEFORE a full or partial 'settlement' payment is actually made, the debtor does have some amount of leverage to include a credit report 'whitewash' by the creditor as a condition of payment.
Yes, but if the creditor doesn't respond to the dispute of "not mine" within 30 days then it gets deleted. They often don't because they don't care since they already got the money. Its a waste of time for them.
In the 'real world', this isn't exactly true. At least with a full or partial 'settlement' payment, the debt is 'satisfied' and the credit report clock gets set in motion without future possibility of a 'reset'. Non-payment can result in the bad debt being resold, which raises the possibility of unpaid interest / penalty charges leveed by the new creditor causing another entry on credit reports as well as 'resetting' the debt clock. By the letter of the law this is no longer allowed, but in 'real world' terms it often still happens.
It actually can't be added back to your report when sold. I mean it can be, but it must immediately be deleted if you dispute it. That happened to me actually. Just about the best they can do is have the account listed, and then underneath say: SOLD TO: __new_company_name__. But the date of last activity is still from the original creditor. If its been more than 7 years, it has to fall off regardless of when it was sold.
I mean if its a student loan or something, you HAVE to pay it at some point, but if its not, then nothing happens to you if you don't pay it and if they never sue you over it.
michele11
08-21-2014, 03:07 PM
This is a critical point with any debt 'negotiations'. Once the delinquent debt has actually been repaid or 'settled', the creditor has absolutely no incentive to see that the repaid or 'settled' debt is removed from credit reports. But BEFORE a full or partial 'settlement' payment is actually made, the debtor does have some amount of leverage to include a credit report 'whitewash' by the creditor as a condition of payment.
In the 'real world', this isn't exactly true. At least with a full or partial 'settlement' payment, the debt is 'satisfied' and the credit report clock gets set in motion without future possibility of a 'reset'. Non-payment can result in the bad debt being resold, which raises the possibility of unpaid interest / penalty charges leveed by the new creditor causing another entry on credit reports as well as 'resetting' the debt clock. By the letter of the law this is no longer allowed, but in 'real world' terms it often still happens.
THis happened to me. I had two small like under 40 dollar medical things that were supposed to drop off in june . Well there they were again. I saw when I got my car last month and they brought down my score a lot too!
GlamourRouge
08-21-2014, 06:55 PM
THis happened to me. I had two small like under 40 dollar medical things that were supposed to drop off in june . Well there they were again. I saw when I got my car last month and they brought down my score a lot too!
Have you tried disputing as "not mine" and then "wrong open date"?
Melonie
08-22-2014, 06:49 AM
^^^ yup agreed that this sort of stuff was supposedly 'outlawed' as a result of recently enacted consumer protection regulations. Unfortunately, that doesn't mean it can't / won't still happen. And indeed it's possible that disputing these sort of credit report entries can result in a restoration of the original debt 'clock' or the deletion of the report entry ( based on lack of a dispute response from the creditor ). But this also requires that the person constantly monitor their credit report and constantly file 'new' disputes when unpaid debts 'resurrect' themselves back onto the credit report under a new creditor name with a 'reset' debt clock.
Also, I'm glad that you brought up the issue of unpaid student loans. Indeed, these will never 'go away' ... from a credit report or from the 'real world'. These days, the IRS has the authority to 'confiscate' tax refunds, to 'garnish' social security and other gov't payments, and even to place leins on estate property after you die, to satisfy unpaid gov't backed student loans.
returning to the basics ...
(snip)The first thing you need to understand is how your credit score is determined. General information is available from Fair Isaac, although the exact algorithm used to determine your credit score is a secret closely guarded by each credit agency. The general guidelines about how your credit score is compiled are broken down into five main categories, with the following percentage weight for each:
•35% payment history (only includes payments later than 30 days)
•30% debt-to-credit ratio
•15% length of credit history
•10% new credit
•10% type of credit in use (installment, revolving, consumer finance) (snip)
thus opening new credit accounts provides a negative force in the 'new credit' category, but also potentially provides a positive force in the 'debt to credit ratio' category which has a higher weighting factor. The decision regarding opening additional credit accounts actually boils down to the total amount of existing credit lines available versus total verifiable income. Unofficial rule of thumb is that total ( unsecured ) credit lines available should be somewhere between 15% and 30% of verifiable annual income. Unofficial rule of thumb also is that the actual amount of credit lines utilized should be between 15% and 30% of total credit lines available.
I dont know where you got this snippet but it isnt correct.
Your debt to income ratio is not included in the calculation of your credit score.
The debt to income ratio is a calculation that is done by the bank when you apply for a loan. The only way your income level is known is when you include it on a loan application. It is then verified by your w-2s or taxes. The debt level used in the calculation is based on the information about current debt on your credit report.
The bank uses both your credit score and debt to income ratio to decide loans. They are two separate items.
This is the information from the FICO site itself about what goes into the calculation of the score.
http://www.myfico.com/images/CreditEducation/ce_scorebreakdown.png
http://www.myfico.com/CreditEducation/WhatsInYourScore.aspx
When calculating debt to income ratio...I know the debt aspect includes mortgage, student loans, minimum credit card payments, car loans but I've never been able to get a clear answer as to whether or not other recurring monthly expenses like rent or a cable bill is included also.
Please read above to see what I define the debt to income ratio as.
The first thing to know is that the ONLY time debt to income ratio is calculated is when you apply for a loan. Banks calculate debt to income ratio by using your gross income (before taxes). The debt used, generally speaking, is the items listed as open on your credit report. For example, even if you do not have a balance on your credit cards, they will use your highest possible min payment as part of the debt ratio. Your highest possible min payment is two percent of your credit limit. They do this in case you max out all your credit cards. Which is why it is a good idea to limit the number of credit cards you have.
Rent is considered. For example when you apply for an auto loan they ask how much you pay for rent or mortgage.
Other items you pay for like cable isnt asked for but kind of considered. For example if your debt to income ratio is too high it doesnt leave room for additional monthly expenses. As a banker i have seen many loans turned down only because the debt to income ratio was too high.
Hope this helps.
For clarification....
Amount owed on accounts determines 30% of my FICO Score
Owing money on credit accounts doesn't necessarily mean you're a high-risk borrower with a low FICO® Score. However, when a high percentage of a person's available credit is been used, this can indicate that a person is overextended, and is more likely to make late or missed payments.
http://www.myfico.com/CreditEducation/Amounts-Owed.aspx
This is not the debt to income ratio
Melonie
08-23-2014, 03:19 AM
debt to CREDIT ratio and amounts owed ( versus total available credit ) are synonymous. Nobody actually mentioned debt to INCOME ratio being a component of credit score.
GlamourRouge
08-23-2014, 11:42 AM
^^^ yup agreed that this sort of stuff was supposedly 'outlawed' as a result of recently enacted consumer protection regulations. Unfortunately, that doesn't mean it can't / won't still happen. And indeed it's possible that disputing these sort of credit report entries can result in a restoration of the original debt 'clock' or the deletion of the report entry ( based on lack of a dispute response from the creditor ). But this also requires that the person constantly monitor their credit report and constantly file 'new' disputes when unpaid debts 'resurrect' themselves back onto the credit report under a new creditor name with a 'reset' debt clock.
Yes, but the thing is, that is NOT your account. The one you are disputing. Because your account, is the one that started on such&such date, and that is one that was opened much later. Its not your fault if the creditor puts the wrong opened date, even if the account was sold. YOUR account was opened long before that one, so you would dispute that one as "not mine" and win in your favor. The date you opened your account was way before the new one, and if they can't prove that (which they can't if its the wrong date), then it must be deleted. That's how I won mine lol.
I dont know where you got this snippet but it isnt correct.
Your debt to income ratio is not included in the calculation of your credit score.
The debt to income ratio is a calculation that is done by the bank when you apply for a loan. The only way your income level is known is when you include it on a loan application. It is then verified by your w-2s or taxes. The debt level used in the calculation is based on the information about current debt on your credit report.
The bank uses both your credit score and debt to income ratio to decide loans. They are two separate items.
This is the information from the FICO site itself about what goes into the calculation of the score.
http://www.myfico.com/images/CreditEducation/ce_scorebreakdown.png
What??? Debt-to-credit is the exact same thing as amounts owed lol. I actually think debt-to-credit is a more accurate way to put it, too. Your credit score, in that 30%, is looking at the percentage of your balance to percentage of available credit. It doesn't care about how much you owe. You could owe 10k, but if your credit card limits combined are 200k, it won't do anything. However, if you owe 10k and your credit card limits total 11k, your score will drop really low because of your debt-to-credit ratio. That is what that 30% is factoring.
The only place I have ever seen the term debt to credit ratio used is on websites that repeat false information about credit scores in order to get people to pay for credit protection services they dont need. NO one in the industry uses the term debt to credit ratio because the term makes no sense.
And since clicking on a website is too much ill include more details....
http://www.myfico.com/CreditEducation/Amounts-Owed.aspx
Amount owed on accounts determines 30% of my FICO Score
The amount owed on all accounts Note that even if you pay off your credit cards in full each month, your credit report may show a balance on those cards. The total balance on your last statement is generally the amount that will show in your credit report.
The amount owed on different types of accounts In addition to the overall amount you owe, your FICO® Score considers the amount you own on specific types of accounts, such as credit cards and installment loans.
Whether you're showing an amount owed on certain types of accounts In some cases, having a very small balance without missing a payment shows that you have managed credit responsibly, and may be slightly better than carrying no balance at all. Having a low credit utilization ratio can be better than having a high one, or none at all. For example, closing unused credit accounts that have zero balances and are in good standing will not raise your FICO® Score.
How many accounts have balances A larger number of accounts with amounts owed can indicate higher risk of over-extension.
How much of the total credit line is being used and other "revolving" credit accounts Someone who is close to "maxing out" several credit cards has a high credit utilization ratio and may have trouble making payments in the future.
How much of the installment loan amounts is still owed, compared with the original loan amount For example, if you borrowed $10,000 to buy a car and you have paid back $2,000, you still owe (with interest) more than 80% of the original loan. Paying down installment loans is a good sign that you're able and willing to manage and repay debt.
GlamourRouge
08-23-2014, 11:57 AM
^^^ Idk what you're arguing, but you're posting the same exact thing Melonie posted.
They don't actually look at the exact amounts owed, I know that. They look at debt-to-income percentage. But they call it the same thing.
I know this because my first 2 cards (post-BR) were Capital One and Target, and they both had low limits totaling $500 when I opened them. I had something low charged on each, around $100 total, but it totaled like 20% of the combined credit limits (which was $500). I then opened Care Credit which had like an 8k or 9k limit, and then my credit score skyrocketed and my debt-to-income aka "amounts owed" as you called it, sector, SKYROCKETED because the ~$100 I had charged, was like NOTHING compared to combined credit limits of $9,500.
What??? Debt-to-credit is the exact same thing as amounts owed lol. I actually think debt-to-credit is a more accurate way to put it, too. Your credit score, in that 30%, is looking at the percentage of your balance to percentage of available credit. It doesn't care about how much you owe. You could owe 10k, but if your credit card limits combined are 200k, it won't do anything. However, if you owe 10k and your credit card limits total 11k, your score will drop really low because of your debt-to-credit ratio. That is what that 30% is factoring.
What you are actually talking about is the percentage of available credit. That is just one aspect in the category of "amounts owed".
GlamourRouge
08-23-2014, 11:59 AM
What you are actually talking about is the percentage of available credit. That is just one aspect in the category of "amounts owed".
That is all exactly the same thing! They just have the different names. It is what makes up the 30% sector in your pie chart you posted.
^^^ Idk what you're arguing, but you're posting the same exact thing Melonie posted.
They don't actually look at the exact amounts owed, I know that. They look at debt-to-income percentage. But they call it the same thing.
I know this because my first 2 cards (post-BR) were Capital One and Target, and they both had low limits totaling $500 when I opened them. I had something low charged on each, but it totaled like 20% of the combined credit limits. I then opened Care Credit which had like an 8k or 9k limit, and then my credit score skyrocketed and my debt-to-income aka "amounts owed" as you called it, sector, SKYROCKETED because the ~$100 I had charged, was like NOTHING compared to combined credit limits of $9,500.
I am not arguing. I am making sure that correct information is being listed here. I am also using the FICO website to verify what I am saying.
Terms and correct information matter because there is too much false information all over the net about credit reports. By following the wrong information someone can hurt their credit alot.
GlamourRouge
08-24-2014, 03:38 PM
I would also like to reinforce that MyFico every month (~$15/mo) is a really helpful tool. It pulls Equifax only though.
My Barclays and Capital One rewards cards also give me a free Experian credit score every month (they both use different models bc the exact scores are different), but it still lacks the tools that MyFico has, like reporting RIGHT when someone pulls my credit, and reflecting immediate changes in credit report/score right when they happen. It also has useful simulator tools which will help you to do things to raise your score, if you don't know how.
- THREE MAJOR BUREAUS: Dispute EVERYTHING negative using the online system for the 3 major bureaus (Equifax, Experian, & Transunion). Just dispute it as "not mine" because it might not be yours anyway. Make sure to also delete all other names, addresses, phone numbers, and employers on file except for your current ones. Dispute everything as "not mine" first
Thanks for all the info! this really is an awesome guide.
I tried to apply for a couple credit cards from Capital One and got denied ;( i want to start building credit in this country so i went for the starter type cards they offered...i haven't tried applying with any other credit card companies yet. i am worried i will get a bunch of denials and make me look even worse.
so i am going to start following this guide as well as others i have found at the links you provided to try and get my credit history lookin good.
when i looked at my credit reports i don't have any credit and i have two medical bills on there only for like 200 bucks that went to collections some years ago. i wonder if that is why i can't seem to get approved. i was also wondering should i go ahead and dispute those as not mine? should i delete all my other addresses and stuff first before i go that route? or does it matter?
also i see no where online to delete all other addresses i've had or phone numbers.
I've considered trying to call the Capone Back door numbers to try and get a reconsideration of my application, but i'm nervous and unsure what to say lol. also i have heard trying to recon with capital one usually gets you no where ;p
GlamourRouge
08-30-2014, 01:50 PM
Thanks for all the info! this really is an awesome guide.
I tried to apply for a couple credit cards from Capital One and got denied ;( i want to start building credit in this country so i went for the starter type cards they offered...i haven't tried applying with any other credit card companies yet. i am worried i will get a bunch of denials and make me look even worse.
so i am going to start following this guide as well as others i have found at the links you provided to try and get my credit history lookin good.
when i looked at my credit reports i don't have any credit and i have two medical bills on there only for like 200 bucks that went to collections some years ago. i wonder if that is why i can't seem to get approved. i was also wondering should i go ahead and dispute those as not mine? should i delete all my other addresses and stuff first before i go that route? or does it matter?
also i see no where online to delete all other addresses i've had or phone numbers.
I've considered trying to call the Capone Back door numbers to try and get a reconsideration of my application, but i'm nervous and unsure what to say lol. also i have heard trying to recon with capital one usually gets you no where ;p
Certify mail "pay for delete letters" to the medical places that you will pay in full in order to delete. If they are recent, maybe just pay them. If they are somewhere near 7 years, just let them fall off.
Apply for Capital One secured credit card. If you don't have credit, the only thing you can really do is get a secured one.
IMO, deleting old addresses is a good thing. Or at least delete most.
Disputing via mail is the most effective way to do it.
BANHammerGoddess
09-01-2014, 01:33 AM
Just an update:
1. Have only just sent off challenges to credit unions.
2. Opened a secured credit card for $400 in November. Paid off any remaining marks against my chexsystem record. Also opened a secured card in beginning of August for $500 and got a secured loan through a credit union (for which I only pay $8 TOTAL in fees for a year long "loan" of $500. awesome.)
3. Around beginning of August (so I don't think it was caused by the new secured card, and loan, though maybe-- I can't remember the time line but it was either at the same time or spaced one week apart) I got an offer from a credit card company. Looked up their reviews and didn't want to go with them, so I waited. In another two weeks I got an offer from a different company, Capital One, to apply. Applied and got $300. Should be increased after a couple of months, and the first year there's no interest. Plus, no annual fee, unlike the first card.
4. Applied for a store card (figured why not, wasn't expecting to get it) and was denied.
5. Applied for Care Credit card a second time, this time just requesting $400, and was turned down. I think I figured out that Care Credit relies on TransUnion, and that has my largest debt on there for $800.
My credit rating still sucks, but I'm going to put more money (I'm up to $500) on my first secured card I got in November, so that when this November rolls around and I'm set to get all that money back and have it transferred to a non-secured card, it will look really good. Then I plan to roll that money over into my second secured card and bump up that credit limit.
so I now have three credit cards. I'm fine with that. I might try to get another one, but three seems a happy medium so long as the non-secured card keeps raising it's limit (reviews are mixed. Some people say they do everything right, and only get maxed out at $500 credit limit even after being with them for 2 years. Other people say that within the first year of normal useage, their credit limit was raised to a couple thousand so it seems kind of like a crap shoot.)
I would eventually like to get a rewards card of some type, but I don't think it's going to happen til sometime next year.
GlamourRouge
09-01-2014, 12:18 PM
^^^ A lot of creditors like store cards don't like when you have any collections on your report(s). They would rather have ones paid off or settled and done with. So keep the 3 cards you have, and work on getting the active collections off your reports (especially Transunion if you want Care Credit) or let them fall off if they are close to 7 years. The reason why I got the cards I wanted is because I had no active collections, I think. Capital One doesn't tend to care about active collections as much though.
When you're done with that and the active collections are deleted, paid, settled, or fell off your report, then maybe try to get a secured bank loan? A second one?
Also, not all store cards are created equally. Different ones look for different things. I would check out the MyFico forums and the CreditBoard forums and see which ones are not sensitive to collections.
Also with Care Credit, they just changed banks from GE Money Bank to Synchrony Bank, so they might have different requirements now.
BANHammerGoddess
09-01-2014, 10:25 PM
I'm considering getting a new car in six to twelve months, and the credit union has said to come talk to them when that happens for a loan. But I may just buy with cash so might go the second secured loan route.
GlamourRouge
09-04-2014, 12:49 AM
So now MyFico apparently has a program where you pay $30/month for all 3 bureau's credit scores + credit reports. Its new so I haven't used it yet. I'm going to sign up for 1 month and see how it works. I don't need this service though because my reports are frozen, but I'm curious how well it works.
Pearl_Sugar
01-21-2015, 03:59 AM
Really hate that GR can't comment on this anymore but this is relevant to credit so I'm going to drop it here.
5 Credit Cards.
2 Comenity, closed permanently, 1 charged off as bad credit, 1 ? probably the same. Once paid off, will stick around for like 7 years. Roughly $2100 of debt.
1 USAA, now under United Collections, owe them about $1800 and I know this company is HELL to deal with.
1 Care Credit, still salvageable but bad credit at this point.
1 CreditOne, ??? in collections, but still getting bills so not too far gone.
Student loans that will never go away but not technically "behind".
Little debt in collections all over.
Should I just file for bankruptcy at this point? At least I'll be able to buy a house in 2 years instead of 7 and be a LOT less fucking stressed over this. I mean altogether its less than $10,000 of debt (bar the student loans), is it worth declaring bankruptcy for that?
chickchick8182
01-21-2015, 08:31 AM
^^ Unrelated to your issue, but I saw you listed CreditOne above. My husband and I, after a shit ton of bad credit/years paying down ect., have what's known as a "thin credit file". Since we've been paying down debt for like 10 yrs we have no actual credit, or accounts open and cannot get approved for anything. CreditOne was suggested to me by a friend, but the reviews are terrible, I mean like atrocious. What was your experience with them?
whirlerz
01-22-2015, 12:25 PM
Well, myself I just re-signed up w/a credit repair law firm..I know I can do it myself, but they have done a lot in the past for me. I had to stop using them, but I am looking forward to working w/them again.
SarahTime
01-22-2015, 10:09 PM
Well, myself I just re-signed up w/a credit repair law firm..I know I can do it myself, but they have done a lot in the past for me. I had to stop using them, but I am looking forward to working w/them again.
Do you mind sharing who it is? I worked with one a while back but I feel like they were a waste of money. It seemed like everything they did I could have done myself.
LAChloe
01-23-2015, 08:27 AM
Really hate that GR can't comment on this anymore but this is relevant to credit so I'm going to drop it here.
5 Credit Cards.
2 Comenity, closed permanently, 1 charged off as bad credit, 1 ? probably the same. Once paid off, will stick around for like 7 years. Roughly $2100 of debt.
1 USAA, now under United Collections, owe them about $1800 and I know this company is HELL to deal with.
1 Care Credit, still salvageable but bad credit at this point.
1 CreditOne, ??? in collections, but still getting bills so not too far gone.
Student loans that will never go away but not technically "behind".
Little debt in collections all over.
Should I just file for bankruptcy at this point? At least I'll be able to buy a house in 2 years instead of 7 and be a LOT less fucking stressed over this. I mean altogether its less than $10,000 of debt (bar the student loans), is it worth declaring bankruptcy for that?
I have totally been where you are at and I know it is frustrating. I read Dave Ramsey's, "Total Money Makeover" and it changed my life so much for the better. I can't recommend him enough. I would highly recommend reading it before you file for bankruptcy.
LAChloe
01-23-2015, 08:43 AM
^^ Unrelated to your issue, but I saw you listed CreditOne above. My husband and I, after a shit ton of bad credit/years paying down ect., have what's known as a "thin credit file". Since we've been paying down debt for like 10 yrs we have no actual credit, or accounts open and cannot get approved for anything. CreditOne was suggested to me by a friend, but the reviews are terrible, I mean like atrocious. What was your experience with them?
I am using them to build my credit. I have had no issues. Yeah, it is a subprime card and the annual fee/interest rate is ridiculous but that is the price you pay for fixing your credit I suppose. They do report to the credit agencies immediately.
LAChloe
01-23-2015, 08:45 AM
Do you mind sharing who it is? I worked with one a while back but I feel like they were a waste of money. It seemed like everything they did I could have done myself.
They are a waste of money. You can do everything yourself…especially YOU have paralegal experience. :) What are you trying to have removed?
LAChloe
01-23-2015, 08:46 AM
So now MyFico apparently has a program where you pay $30/month for all 3 bureau's credit scores + credit reports. Its new so I haven't used it yet. I'm going to sign up for 1 month and see how it works. I don't need this service though because my reports are frozen, but I'm curious how well it works.
Glam, if you are reading, sign up! I have it and I love it. They send you an email every time anything has changed.
Pearl_Sugar
01-23-2015, 12:05 PM
I actually have a CreditOne card that is behind and they have been working with me to get it caught up. The actually haven't closed the account even though it's behind. They just told me to catch up and it would be unrestricted again. I'm going to use them and my student loans to fix my credit.
My VS card charged off and I spoke to DB today to get on a hardship plan.
CareCredit was closed but I can apply to re-open. I kind of need that card, I don't have health insurance...
Still have to call the United collections agency because USAA has practically locked me out of my bank account. -_-; Hopefully I can get on a payment plan.
I'm going to meet with a credit counselor.
I'm still pretty conflicted though. My husband has a ton of debt that will never be repaid, but it's probably all charged off at this point. We're pretty screwed regardless for the next 7-10 years.