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GR's Guide To Changing Bad Credit Into Amazing Credit In Less Than 6 Months
GR's Guide To Changing Bad Credit Into Amazing Credit In Less Than 6 Months:
Including: bankruptcies, accounts in collections, late payment history, etc.
I am not a credit expert, but I read a bunch of credit books and used the advice in them to completely repair my credit report after a medical BR. And I stalked the hell out of credit forums.
STEP 1: Ordering Reports (When you pull your own credit report, you don't get any hard inquiries, FYI)
- Pull your credit reports from all 3 main bureaus. You can pull them for free once per year at (freecreditreport dot com is a scam just FYI).
If you have already received your credit reports for the year, purchase them.
- There is a secret hidden 4th credit bureau called Innovis. Pull that one too. You can order it here for free:
- Pull your Chexsystem report too. Chexsystem monitors if you have overdrafted and not paid any fees to banks. If you are in Chexsystem, you are almost automatically denied for any credit you apply for. You can order your report for free here:
STEP 2: Filing Disputes... (You may be able to get your 3 bureau report online, but the others will only be available by mail)
- 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.
- INNOVIS: You will have to call Innovis to dispute because they do not have an online system available for us to use. If they can't do something over the phone, you will have to mail them a dispute. Always send it certified mail return receipt requested or they often won't take it seriously because they know you have no proof you sent it!
- CHEXSYSTEM: If you owe anything, pay it off ASAP and mail a copy of the paid in full receipts to Chexsystem's address so they get deleted. If you went through bankruptcy, all you have to do is mail a copy of the bankruptcy discharge to Chexsystem. Also, I have heard that you can try to dispute the accounts in there as "not mine" and stuff as well, just like with the major credit bureaus.
(You will now have to wait 30 days [or less, but it normally takes the full 30 days!] to see what gets deleted and/or updated. I'm guessing a lot of the negative stuff will be deleted- especially if its for only a couple hundred dollars or is in a weird name or spelled different from your own. If the company does not reply in those 30 days, it automatically gets deleted.)
STEP 3: RIGHT After Filing Those Disputes...
- Call ANY company who lists ANY of your accounts on your credit report as EVER being late! If you were late on payments like 60 days or something, they will often remove those lates if you tell them why you were late. So call them on the phone and try to get the late marks removed. Also, mail them a letter right after you get off the phone with the same information you told them over the phone, and be sure to send it certified mail return receipt requested. If they agree to do anything over the phone, make sure you tell them to mail you a letter confirming the changes they are going to make (ex.: late marks from months XYZ removed!) on their company's letterhead to your address.
- Be sure to follow up with these companies to make sure they actually remove them. If you harass them long enough, they will remove them. I had some removed, but it was actually not on error on my part- it was the company's error anyway. Once an account shows its been late just ONE time, its actually considered a negative/derogatory account for YEARS even if you are paying it on time and in full each and every month!
STEP 4: When The Bureau's Resolve Your First Round Of Disputes... (After 30 days, your credit bureaus HAVE to get back to you with the results of your disputes. If you mailed them something, they have up to 45 days, but you didn't mail them anything [yet!])
- Immediately call each bureau and have them manually remove every old address, name, and phone number on your report if all of them did not get removed.
- Do round #2 of the disputes. This time though, you will want to mail each bureau letters (certified mail, with return receipt requested!), because they do not use the automated system when you hand-mail the letters! This will give you more leverage and more likely be able to get more things deleted. Be sure to pick a DIFFERENT reason to dispute things this time. Do not write "not mine" again for the reason unless you are 100% positive that debt does not belong to you. Look for things that are incorrect. Like "wrong credit limit" or "wrong high balance" or "never late" or "incorrect terms" - things like that. Pick the most applicable one, and do round #2 of dispute. If you have any supporting document supporting your claims- EVEN BETTER! Make sure to include a copy of any supporting documentation! They will normally delete things right away if you have documentation.
(Now you will wait again... 30 to 45 days since you are mailing them this time.)
STEP 5: Paying Debts... (Make sure you read this BEFORE you pay anything though!)
- You will now decide which debts you need to pay. If you have any collections or chargeoffs, they will not automatically delete from your profile if you pay them. They will still sit on your report for 7 years, even if you pay them in full. SO, you now need to CALL each company left on your credit report, and ask them for a "Pay For Delete" where you agree to pay the balance in full within like 10 days (keep your bank statement showing the payment!!!), and they agree to manually delete that collection or chargeoff off your credit report. Win-win situation for both of you, so they will most likely agree. HOWEVER, make sure BEFORE you pay that you get this IN WRITING on their company letterhead, or keep fighting with them until they agree. But DO NOT pay it without a letter in writing stating they will delete it after you pay it in full. You can also send certified letters to them asking for this if they do not agree over the phone. Or, keep calling back, or ask to speak to their supervisor. They will eventually get annoyed and give in.
(You can google templates for your dispute letters, and for your Pay For Delete letter, because there are many like this: )
STEP 6: Repeat Step#4 Until Your Report Looks Much Better! (Dispute, dispute, dispute!)
- Keep disputing once disputes are resolved each and every time, until you've got as much deleted as possible. By now, hopefully you've got some late marks removed off late accounts (if they have 0 lates, they are considered good accounts again!) And hopefully you got a bunch of bad stuff deleted. Keep writing to bureaus (certified mail return receipt requested) until your report is as good as you can get it!
- While you're at it, stalk the FUCK out of credit board forums and google. (These are my personal favorite forums: and ). You can learn a lot there, and see other people's experiences with certain cards or certain things like bankruptcy or collections and stuff.
STEP 7: Building New/More Credit.. (Credit cards and loans are not bad! Sadly, they are needed.)
- Pull your credit scores for all 3 major bureaus. Just to get an idea of where you're at. You can get them at MyFico () and sometimes from just one bureau () Some people say they are not accurate because they use older models.
- You will now be applying for more credit now that your Chexsysem is clear and your credit reports are as good as you can get them.
BAD CREDIT AND/OR BANKRUPTCY:
---> If your credit score is still BAD, you will probably need to go the secured credit card route. I recommend this one: It is by far the best secured card out right now, and Capital One keeps buying out all the other secured cards for some reason. They will ask for a $49, $99, or $200 deposit and then will give you a credit limit of $200, $500, or maybe even more. You can always add money to increase your credit score (which I recommend!).
(And a secured card, for those that don't know, is where you give a deposit in exchange for getting the credit card. You get the deposit back when you close it, but I don't recommend closing accounts!)
---> If you already fucked up with Capital One, there are other cards out there. Target, I hear, is pretty easy to get, even if you have no credit at all. They have some kind of in-house approval (I guess they are their own bank so they can be more lenient?) Barclay's bank is another one. And both are bankruptcy-friendly. (Capital One is bankruptcy-friendly too FYI.) In fact, this is a good list of bankruptcy-friendly credit cards: (read from the last page to the first page since it will be most recent!). A bankruptcy is not a deal-breaker for good credit AT ALL. Its a myth. Its a lie. You just have to know which cards are bankruptcy-friendly, and there are many of them.
---> Take a loan out from the bank. By this, I don't mean applying for a loan. I mean, walk in, tell them you are trying to build your credit, and hand them $500 or $1000 or something and tell them you want to give them that amount, and then take out a loan for the same amount, and have the monthly payments automatically withdrawn from a savings account attached to it. He/she will know what you are taking about. This loan will start to build your credit.
---> After a few months, your credit will be good enough (or should be!) to apply for another card. Wait 6 months if you can. And don't apply for too many cards at once because you don't want lots of hard inquiries. If you get a pre-approval offer in the mail, that's even better! That will save you a hard inquiry. Too many hard inquiries lowers your credit score, but they do delete after 1-2 years. And some say the inquiries stop counting after 6 months even.
---> A few companies will automatically deny people with anything less than amazing credit already. American Express is one of them. Again, search the credit forums or google to find out what the approval criteria the card you are interested in is. Sometimes its just random though.
FAIR OR GOOD CREDIT:
---> If your credit score is DECENT or GOOD, you can probably get approved for most cards, so you won't need a secured card. They may give you a lower limit, but they will raise it quickly if you keep the balance under 20% at all time! If they don't raise it after a few months, CALL THEM and ask them to raise it! They probably won't if you have been charging more than 20% of the credit limit though.
---> Even with good credit (unless you already have a bunch of loans in good standing or something), I still recommend this step too: ---> Take a loan out from the bank. By this, I don't mean applying for a loan. I mean, walk in, tell them you are trying to build your credit, and hand them $500 or $1000 or something and tell them you want to give them that amount, and then take out a loan for the same amount, and have the monthly payments automatically withdraw from a savings account attached to it. He/she will know what you are taking about. This loan will start to build your credit.
IF YOU GET DENIED FOR A CREDIT CARD:
---> Do not fret! Google the company's name + "backdoor number" and call the #s listed until you can get someone on the phone with that company. Ask them why they denied you, and beg them to approve you. Be really nice. They will probably manually approve you. You can also do this with credit limits too! You can call and ask for a higher one, which you might as well do. Especially if they have a 0% APR offer. Just tell them you want a higher limit so you can take advantage of the 0% APR or rewards offer, and then they will likely increase your credit limit. But don't actually ever make that large purchase! Genius.
(**NOTE: You can google most cards you are interested in having, and typically find out which credit bureaus they pull. Some pull all 3, but many only pull a specific one. This is really good to do if one of your credit reports is horrible but the other 2 are really good!)
(***NOTE: Make sure to always keep balances before like 20% of the credit limit if you are ever expecting a credit limit increase!)
STEP 8: Time...
- Wait for time to pass and build up good credit history! You should ideally have a mix of credit. A couple major credit cards like visa/mastercard (they are just called "credit cards"), a store card or 2 (they are called "revolving" or "charge accounts", various loans (student loans, car loans, personal loans, etc.), and I guess real estate helps but isn't necessary if you can't afford it or don't want it. Gas cards can be good too, but they only typically report to one bureau just FYI.
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Re: GR's Guide To Changing Bad Credit Into Amazing Credit In Less Than 6 Months
There is ALOT of innacurate information in this post. Im sorry but there is.
You can not repair credit in six months that is that damaged.
I dont post these kind of blank fixs because so much is dependent on alot of other variables.
If someone is having an issue i would rather answer those issues based on their information.
NEVER have your correct personal information like addresses, phone numbers, employers etc removed from a credit report if they are accurate. As a loan officer we used that information so many times to verify what a customer was telling us. If it isnt on there it looks suspicious.
If you have a bankruptcy nothing is going to make that bankruptcy go away for seven to ten years. No matter what the credit score looks like it wont matter because the bankruptcy is on there. There are alot of bankers who lie to customers telling them to get credit cards and loans at high interest rates ill help. The only time that positive credit will have an impact is AFTER the bankruptcy falls off.
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Re: GR's Guide To Changing Bad Credit Into Amazing Credit In Less Than 6 Months
Quote:
Originally Posted by
Vamp
You can not repair credit in six months that is that damaged.
Lol I posted this because I did this personally. Mine jumped over 100 points since January of this year, when I did my first dispute :). And nearly 150 points since my BR discharge. I monitored it using a starting score I pulled from transunion (and the rest of the bureaus through transunion), and also monthly using the MyFico service.
I also just disputed a SW girl's credit report using my method, and got like 5 collections/charge offs completely deleted from her report, and she is getting 2 of her bad accounts with late notices, removed. She will now only have 1 negative on her report, and I bet I can get that one deleted too since we are only like a month in to fixing her report. She has never had a BR.
Quote:
Originally Posted by
Vamp
NEVER have your correct personal information like addresses, phone numbers, employers etc removed from a credit report if they are accurate. As a loan officer we used that information so many times to verify what a customer was telling us. If it isnt on there it looks suspicious.
I never said remove accurate ones lol. I never once wrote that. But you often can't get old closed/paid accounts deleted if you have the old corresponding information on your credit report. The bureau told me that themselves (Experian) after I called about it several times. Once I got the addresses removed, they removed the items for me that were tethered to the old addresses.
Quote:
Originally Posted by
Vamp
If you have a bankruptcy nothing is going to make that bankruptcy go away for seven to ten years. No matter what the credit score looks like it wont matter because the bankruptcy is on there.
Again, I never once said this. However, I now have a score close to 650 (which will soon be going up much higher, as I just got a new CC), and my bankruptcy discharged last year! A bankruptcy is not a big deal. You can still get apartments, car loans, home loans, etc. Though it can be slightly more challenging. But considering we are sexworkers, money talks anyway which makes it easier for us than the average person.
Quote:
Originally Posted by
Vamp
There are alot of bankers who lie to customers telling them to get credit cards and loans at high interest rates ill help.
I never once talked to a banker about this. This is my own personal experience, and it worked. I purchased several kindle books from amazon on fixing your credit, and then read the 2 forums I posted above and used tips and tricks from those to get my reports to my liking. I probably sent over 30 certified letters, but it was worth it.
Second, not all loans even have high interest rates for bad credit. Same with credit cards- if you don't carry a balance its not a big deal. And 6 months down the line (like in my case!) with good payment history, you qualify for really good cards with a much lower APR.
Quote:
Originally Posted by
Vamp
The only time that positive credit will have an impact is AFTER the bankruptcy falls off.
That's not true. If you get a new card or a new loan when you have a bankruptcy on your report, it makes your score jump. The available credit ratio skyrockets. Its added as an open account when you have none (thanks to bankruptcy). I saw this with my own again. Again, I have credit monitoring through MyFico.com and have this whole time (it notifies me the day something changes, AND tells me what changed, AND tells me what my new score is), and I also had credit monitoring with Transunion. Both links are above to those services. $15/month and $17/month. Worth it.
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Re: GR's Guide To Changing Bad Credit Into Amazing Credit In Less Than 6 Months
The 2 best credit books I read were: "Hidden Credit Repair Secrets" by Mark Clayborne and "How to Remove ALL Negative Items from your Credit Report: Do It Yourself Guide to Dramatically Increase Your Credit Rating" by Riki Roash. They are available here: and
And again, the 2 best credit forums I have found are: and - I searched them using google (like I usually also do with stripperweb) because the search function doesn't always find what I'm looking for.
The combination of those resources above, plus my own personal successful experience, are what raised my score and raised it quickly. A lot of people on the books reviews section and on the credit forums had the same positive experiences that I had. And in 1 year, I am pretty sure my score will be at or near 700 if I follow the information I have read on the forums about which cards to apply for and when.
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Re: GR's Guide To Changing Bad Credit Into Amazing Credit In Less Than 6 Months
Quote:
Originally Posted by
GlamourRouge
That's not true. If you get a new card or a new loan when you have a bankruptcy on your report, it makes your score jump. The available credit ratio skyrockets. Its added as an open account when you have none (thanks to bankruptcy). I saw this with my own again. Again, I have credit monitoring through MyFico.com and have this whole time (it notifies me the day something changes, AND tells me what changed, AND tells me what my new score is), and I also had credit monitoring with Transunion. Both links are above to those services. $15/month and $17/month. Worth it.
When you have a bankruptcy the score does change but the score doesnt matter. People can have a high score with a bankruptcy but they will still get turned down for loans or get insanely high interest rates as long as the bankruptcy is showing.
It is still misleading. If your bankruptcy is about to drop off is one thing. But if you just filed bankruptcy you cant fix it in six months.
Just because you dispute a collection and it is removed from your report does not mean it wont show up again. It also doesnt mean it just goes away. They can still sue you for the dollar amount.
Once again, if you have credit questions please post it in the forum.
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Re: GR's Guide To Changing Bad Credit Into Amazing Credit In Less Than 6 Months
Quote:
Originally Posted by
Vamp
Just because you dispute a collection and it is removed from your report does not mean it wont show up again. It also doesnt mean it just goes away. They can still sue you for the dollar amount.
I wanted to point out: A paid and deleted collection is not going to return to your credit report. Especially if you used a "Pay For Delete" and you have that letter in your hand. That is gold. The bureau is forced to remove it and keep it off. If it returns, you call and tell them you already certified mailed the Pay For Delete agreement from the company, and that it is uploaded in their system. You have also mailed it certified, so you either have the green ticket (proof of delivery) that came in the mail, or the signed receipt that came in your email. And if the bureau then refuses to re-remove it, you can get a lawyer and sue because they are violating the FCRA. The Pay For Delete letter on the company's letterhead agreeing to the removal after payment (which you already have the receipt for, additionally!) means the credit bureau HAS to delete it or it is a violation of the FCRA.
Also, any collections you have during bankruptcy, you get 100% of them deleted if you just send them (the bureau and/or the company) a copy of bankruptcy discharge. With the exception of student loans, but those don't normally turn into a collection if they are through the government, and of course if you are paying or they are deferred.
Quote:
Originally Posted by
Vamp
When you have a bankruptcy the score does change but the score doesnt matter. People can have a high score with a bankruptcy but they will still get turned down for loans or get insanely high interest rates as long as the bankruptcy is showing.
It is still misleading. If your bankruptcy is about to drop off is one thing. But if you just filed bankruptcy you cant fix it in six months.
Lolol I put that in the link above. Which is ALSO, why I included a link to bankruptcy-friendly creditors (and there are many of them!).
There are a TON of bankruptcy-friendly creditors. They will not deny you, or very rarely, especially if you call the backdoor number afterward. That link literally lists like 30 different creditors you can get IMMEDIATELY after bankruptcy discharge, and remember only 3-5 are even needed.
As for car loans, there is Capital One Auto, Nissan Auto, Toyota, and in house financing. However, with a credit score, for example, around 650 like mine, there are a lot more options available. Even immediately after my bankruptcy discharged, I must have received at least 10-15 different letters of pre-approval car loan offers.
As for bankruptcy-friendly creditors, here are the lists:
Some of the easier ones include:
- Capital One (and you can apply for multiple cards from them)
- Barclays Bank (Apple card, US Airways miles card, Virgin Airlines miles card, etc.)
- Target Card
- Best Buy Card
- Various gas cards (though Chevron is questionable)
- All GE Money Bank cards (Care Credit, etc.)
- Orchard Bank (i believe it was just bought out by Capital One)
- First Premier (they may also have been bought out)
- Lowes
- JC Penny
- Walmart
- HSBC Bank / Household Bank Credit Cards
- Firestone
- Jareds (Jewelry)
- Kay Jewelers
- NFCU Bank (credit card)
- Discover
There are a lot more too! And then almost every card except American Express will allow you to get approved 3-4 years after bankruptcy discharge with good history.
My personal plan is: Capital One (already have), Target, Barclays (probably an air miles card), Valero Gas Card, and Care Credit. Also, secured loan from the bank equal to the deposit. Thinking about taking out a car loan with Capital One auto, but will probably pay it off in 2 years. And 6 student loans that show paid in full.
***ALSO: Remember that, as time goes on and you build excellent payment history and low balances (or paid in full balances) with these companies, you can also:
1.) Call and request a credit limit increase. If the card has a low balance and good payment history, there is absolutely no reason they they would object.
2.) Call and request an interest rate deduction. If they won't do this, you can threaten to close your account. Some have minimum APRs though. However, this won't matter anyway, AT ALL, if you are not keeping a balance. You can literally just charge your cell phone bill or utility bill every month to that card, and have the monthly payment automatically deduct from your checking account. You can use lower APR cards for everything else, if you'd prefer.
3.) Call and request any secured cards to be turned into non-secured cards. Capital One does this. They are the only secured card that's worth it IMO. And they keep buying out all the other ones anyway.
I'm guessing you did not read everything, or not thoroughly, because you are arguing everything I already wrote above.
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Re: GR's Guide To Changing Bad Credit Into Amazing Credit In Less Than 6 Months
Quote:
Originally Posted by
GlamourRouge
Oh yes there are alot of bankruptcy friendly creditors. They are called subprime lenders. They charge huge fees and insane interest rates with horrible terms. Subprime car loans are the biggest scam running right now. The car will die before you pay off your loans because of the rate and terms.
I know you mean well but I stand by what I have said.
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Re: GR's Guide To Changing Bad Credit Into Amazing Credit In Less Than 6 Months
Quote:
Originally Posted by
Vamp
Oh yes there are alot of bankruptcy friendly creditors. They are called subprime lenders. They charge huge fees and insane interest rates with horrible terms. Subprime car loans are the biggest scam running right now. The car will die before you pay off your loans because of the rate and terms.
But a.) that doesn't do anything unless you carry a balance. And b.) after 3 months - 12 months of payment history, you qualify for other cards that aren't even in that category. And like I said above, you can stop using your bankruptcy-friendly card any time you please and just charge your monthly cell phone bill or utility bill on it, and have the payment automatically deducted from your checking account. Bills have to be paid somehow anyway!
Second, almost EVERY store card has a high APR regardless if its bankruptcy-friendly or not. They have $0 annual fees, and even the capital one SECURED card only has a $29 annual fee. But various types of cards and loans are NEEDED in order to build your credit. And again, if you carry no balance, what is the big deal? Nothing lost out of your own wallet, so what's the problem? It builds your credit, and builds it fast. Soon enough, you can even call for a credit limit increase or ask to decrease the APR if you really wanted to.
As for a car loans, car loans are never a good idea regardless (afterall, cars are the biggest depreciating asset), but its a loan and it builds your credit. You can pay it off early- even 2 months after you get it if you really wanted to. You just have to make sure there are no penalty fees for paying off your balance early, but obviously you would want to find that out before you actually sign the paperwork for the loan, and have it in writing. But that's kind of common sense to me.
Or, you could even do a loan for something as small as like 3k if you wanted, and pay the rest of the car balance in cash. You would just get the car offer amount in writing from the dealership BEFORE you tell them you have your own financing (which anyone with bad credit or bankruptcy could get immediately after bankruptcy discharge), and there you have it.
As far as loans and credit cards go: APR, etc doesn't matter unless you carry a balance. However, credit and loans are necessary to a good credit score, which makes things easier. Such is life. But, you CAN have a good credit score and be right out of bankruptcy if you know which moves to make (hence why I made this thread). I am living proof of that. Its easy to do, it just takes a bit of time and effort, and that was the point for writing this thread (for anyone who has bad credit, bankruptcy, or no credit).
I still don't get why people try to argue with me about this kind of stuff, when I'm literally paraphrasing top-selling books written by professionals in these industries, as well as based on personal proven experience (myself, and on the forums) with cited references. Odd. People did that to me here too: !
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Re: GR's Guide To Changing Bad Credit Into Amazing Credit In Less Than 6 Months
There are cards that do not have 28 day grace periods. Not all of them are the same. Subprime car loans right now have insane interest rates.
I tell folks that before you get ANY loan or credit card to fix their credit. Paying triple for a purchase is wasting money. Building credit isnt worth wasting money.
This your experience with your credit report. These blanket statements do not apply in all situations.
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Re: GR's Guide To Changing Bad Credit Into Amazing Credit In Less Than 6 Months
Quote:
Originally Posted by
Vamp
There are cards that do not have 28 day grace periods. Not all of them are the same. Subprime car loans right now have insane interest rates.
I tell folks that before you get ANY loan or credit card to fix their credit. Paying triple for a purchase is wasting money. Building credit isnt worth wasting money.
Majority of the ones above have grace periods. Only one in that list, to my knowledge, doesn't have one, and its a secured card anyway (I had already mentioned the only worthwhile secured card is Capital One IMO). I researched it beforehand. People on the credit forums have talked about that too. In fact, I read several threads on that topic.
You are not wasting money if you pay your balance in full every month lol. You ARE wasting money regardless if you take out any loan for a depreciating asset (like a car) regardless what your credit score or credit history is.
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Re: GR's Guide To Changing Bad Credit Into Amazing Credit In Less Than 6 Months
Trying to walk the 'middle ground' on this issue.
- Credit score in and of itself is NOT the whole story. As was alluded to in previous posts, the existence of a bankruptcy, the existence of 'settlements' for less than the full amount owed, the existence of a 'short' sale which failed to recover the full amount owed, etc. are all viewed as high risk factors by potential lenders.
- 'Subprime' lending to people with comparatively low credit scores, or to people with higher credit scores who are also perceived by lenders to pose a high risk factor, is for the moment at least fairly easy to get approved. However, 'subprime' mortgages, auto loans, credit cards etc. all carry significantly higher interest rates and significantly less 'friendly' terms than those made to 'prime' borrowers.
- I would also point out that there have been several anecdotal news reports of people in the adult entertainment industry being recently turned down for 'prime' loans, despite having high credit ratings and sizeable assets, because the potential lenders chose not to do business with adult entertainment industry affiliated 'clients' for reasons having to do with the bank's 'reputation'.
- I would additionally point out that, according to some banking related acquaintances, recently issued lending regulations now require lenders to perform a income verification and 'ability to repay' assessment on potential borrowers. An outgrowth of that income verification and 'ability to repay' assessment is a recognition of the possibility that a dancer / camgirl seeking approval of a 30 year mortgage, or even a 7 year car loan to a lesser degree, may not have the same earnings potential near the end of the term of the loan that she currently has. There is also a recognition that the passage of new laws or the issuance of new court rulings ( such as 'employee' dancers, or no-contact lap dances ) can have an immediate negative impact on the girl's future earnings potential thus 'ability to repay'.
I guess that the bottom line here is that dancers and camgirls who do not also have a secure high paying straight job are increasingly likely to be labeled as 'high risk' borrowers no matter what their credit score and no matter what their net worth. As such, 'investing' in improving your credit score may not actually offer a 'payback' in the form of lower future interest rates on new loans.
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Re: GR's Guide To Changing Bad Credit Into Amazing Credit In Less Than 6 Months
CBS Money Watch just came out with this blurb on credit scores ... from
(snip)"You might also know that the scale tops out at 850. That begs the question: What do you need to do to achieve the highest score? And what number is actually good enough? After all, getting all the way to 850 is probably impossible, so is there an optimal number, beyond which you don't need to work to improve your score?
That's the question recently answered at personal finance blog LearnVest. Bottom line: 760 is the tipping point; beyond that number, there are diminishing returns. According to Anthony Sprauve, director of PR at FICO, "It's important to understand that if you have a FICO score above 760, you're going to be getting the best rates and opportunities."
How can you reach 760 and beyond? For that, technology blog Lifehacker comes to the rescue, with a breakdown of the factors that go into calculating your score:
Payment history: 35 percent of your total score is calculated based on your diligence in making payments on bills and loans. To maximize your performance in this area, pay your bills on time. It's that simple.
Credit utilization: Another 30 percent of your rating is based not quite on what you owe, but more precisely on the ratio of what you owe to your available credit limit. If all of your credit cards are maxed out all the time, that's a very poor credit utilization score. But if you only use a little of your available credit, that's good. The lesson here is that it can pay to leave credit cards open even if you don't use them; if you cancel all your lines of credit, you'll damage your credit utilization score.
Length of credit history: 15 percent of your score is based on how long you've been generating a credit history. So if you're young and just out of school, this part of your score won't look as healthy as someone who has been using a credit card for decades. The lesson here is to start using credit -- responsibly -- as soon as you can.
New credit: 10 percent of your score is reserved for accounting for opening new credit accounts and having your credit checked. Keep in mind that these activities tend to hurt your credit rating in the short term.
Types of credit: Finally, the last 10 percent comes from the particular mix of types of credit you have, and that secret sauce includes auto loans, mortgages, credit cards and more.
With all that in mind, it's obvious that most of the factors governing credit score are fairly simple. The bottom line: Avoid late payments, minimize your credit utilization, nurture your credit history and avoid opening new credit accounts as much as possible."(snip)
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Re: GR's Guide To Changing Bad Credit Into Amazing Credit In Less Than 6 Months
Quote:
Originally Posted by
Melonie
I guess that the bottom line here is that dancers and camgirls who do not also have a secure high paying straight job are increasingly likely to be labeled as 'high risk' borrowers no matter what their credit score and no matter what their net worth. As such, 'investing' in improving your credit score may not actually offer a 'payback' in the form of lower future interest rates on new loans.
That only really applies to a home loan though (which this is not about). Because CCs, bank accounts, and car loans are easy to get using the method above. But anyone who is self-employed regardless of profession, is deemed high risk. However, you can create an S-corp and pay yourself as an employee if this is a big worry or becomes ~*a thing*~.
And home loans these days are harder to get in general, than they ever were before, and that's for everyone.
Chanel Preston, the girl you are referring to who got turned down for a loan, also made it no secret that she was a pornstar, but most cam girls/pornstars/escorts file as something completely non-adult, or at least something vague. Older pornstars created LLCs as their porn name, which was not a dumb idea way back when. But with sites like corporationwiki.com, its easy to figure things out real quick. Its better to just create an LLC in a random name, with a DBA over it, and then just trademark your stage name.
And many sexworkers have the following: official 1099s, tax returns, and bank statements as proof of income. Triple threat.
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Originally Posted by
Melonie
CBS Money Watch just came out with this blurb on credit scores ... from
(snip)"You might also know that the scale tops out at 850. That begs the question: What do you need to do to achieve the highest score? And what number is actually good enough? After all, getting all the way to 850 is probably impossible, so is there an optimal number, beyond which you don't need to work to improve your score?
That's the question recently answered at personal finance blog LearnVest. Bottom line: 760 is the tipping point; beyond that number, there are diminishing returns. According to Anthony Sprauve, director of PR at FICO, "It's important to understand that if you have a FICO score above 760, you're going to be getting the best rates and opportunities."
How can you reach 760 and beyond? For that, technology blog Lifehacker comes to the rescue, with a breakdown of the factors that go into calculating your score:
My Experian score was 760 exactly, when I was 21. And that was without a mortgage or car loan, and with only 3 years of credit history. So that kind of score is not impossible.
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Re: GR's Guide To Changing Bad Credit Into Amazing Credit In Less Than 6 Months
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That only really applies to a home loan though (which this is not about). Because CCs, bank accounts, and car loans are easy to get using the method above
well, the facts lie somewhere in between. While dancers and camgirls can certainly be approved for credit cards, the question remains as to whether they can actually get approved for 'prime' credit cards ( i.e. 10%- interest no annual fee ) versus 'subprime' credit cards ( i.e. 14%+ interest or annual fee ). And while dancers and camgirls can get approved for manufacturer subsidized auto loans and leases ( where the interest rate may be 'gamed' versus a higher sale price or reduced manufacturer credits ), the question remains as to whether they can actually get approved for 'prime' auto loans ( i.e. 3%- fixed ) through a 3rd party lender. Arguably, the level of lender scrutiny that now goes along with 'prime' credit card and 'prime' auto loan approvals now approaches that of a 'prime' home mortgage.
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But anyone who is self-employed regardless of profession, is deemed high risk. However, you can create an S-corp and pay yourself as an employee
This is true, but a lender's knowledge of an adult entertainment industry connection can increase the level of perceived risk, as well as potentially triggering a 'we don't want you as a customer' reaction based on bank policy. Chanel Preston is not the only example of this recent 'we don't want adult entertainers as bank customers' trend. But agreed that an S-Corp with an innocuous name adds a level of 'insulation' in regard to any adult entertainment industry connection, as well as fostering the perception of a more 'stable' income. I established an S-Corp for my own adult entertainment industry related business ventures many years ago, and highly recommend that approach.
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My Experian score was 760 exactly, when I was 21. And that was without a mortgage or car loan, and with only 3 years of credit history. So that kind of score is not impossible.
I never meant to imply that it was. However, these days it probably requires zero late payments of any kind, as well as a substantial level of verifiable income for a period of 3 years, as well as a significant level of savings / positive net worth. And as pointed out above, the author's comments about a 760 credit score 'opening the doors' for approvals of 'prime' credit card, auto loan, and mortgage approvals may have to be tempered by the higher risk factor allocated to self-employed persons in general and to adult entertainment industry affiliations in particular.
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I tell folks that before you get ANY loan or credit card to fix their credit. Paying triple for a purchase is wasting money. Building credit isn't worth wasting money.
This statement is what prompted me to post. I fully agree with Vamp's implied point that, for dancers and camgirls, paying the very real extra costs associated with higher 'subprime' interest rate loans and credit cards in an attempt to improve credit rating need to be carefully weighed against the apparent new reality that self-employed persons in general, and adult entertainment industry related self-employed persons in particular, may now face an obstacle to being approved for 'prime' loan interest rates and terms no matter how high their credit score rises.
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Re: GR's Guide To Changing Bad Credit Into Amazing Credit In Less Than 6 Months
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Originally Posted by
Melonie
This statement is what prompted me to post. I fully agree with Vamp's implied point that, for dancers and camgirls, paying the very real extra costs associated with higher 'subprime' interest rate loans and credit cards in an attempt to improve credit rating need to be carefully weighed against the apparent new reality that self-employed persons in general, and adult entertainment industry related self-employed persons in particular, may now face an obstacle to being approved for 'prime' loan interest rates and terms no matter how high their credit score rises.
But:
1.) The APR would only matter if you kept a balance, but the idea is to pay your balance in full to build up credit, and keep utilization below 30%. There would be no difference at all if you paid it in full every month, which is the plan above
2.) You could call and ask for a lower APR and higher credit limit using a backdoor #, immediately after you get approved, and then like 6 months and 1 year later when you have shown them good payment history and a low balance
3.) Every single store card (aka revolving cards), which are necessary to show a mix of different forms of credit, are never going to have subprime APRs though. Those APRs are almost always 15-25% regardless of credit score
4.) If you had to keep a balance on a card, you could use the card with the lowest APR (which will be a major credit card- visa/mastercard/discover), which you would qualify for 6 months to 1 year after you received cards with a higher APR, due to good payment history and low balances
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Re: GR's Guide To Changing Bad Credit Into Amazing Credit In Less Than 6 Months
^^^ true that higher interest rates don't matter if the monthly balance is paid off in full. However, annual fees and other fees DO matter. Yes after having a 'subprime' credit card for a year or two you can call the underwriting bank and ask for a lower interest rate or a higher credit limit ... but there's no guarantee that the bank will agree.
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Re: GR's Guide To Changing Bad Credit Into Amazing Credit In Less Than 6 Months
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Originally Posted by
Melonie
^^^ true that higher interest rates don't matter if the monthly balance is paid off in full. However, annual fees and other fees DO matter. Yes after having a 'subprime' credit card for a year or two you can call the underwriting bank and ask for a lower interest rate or a higher credit limit ... but there's no guarantee that the bank will agree.
Again, only a couple cards on that list have annual fees (only 3 I believe) and even the capital one secured card's is just $29/year.
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Re: GR's Guide To Changing Bad Credit Into Amazing Credit In Less Than 6 Months
Just wanted to update that I JUST pulled my Transunion score this morning and its 694! Now that my new card just started reporting. So see! Its easy to get your credit score back up quickly. My new goal for 1 year from now is 750.
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Re: GR's Guide To Changing Bad Credit Into Amazing Credit In Less Than 6 Months
<3 Thank you, Glammy BB. <3
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Re: GR's Guide To Changing Bad Credit Into Amazing Credit In Less Than 6 Months
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Originally Posted by
GlamourRouge
Just wanted to update that I JUST pulled my Transunion score this morning and its 694! Now that my new card just started reporting. So see! Its easy to get your credit score back up quickly. My new goal for 1 year from now is 750.
I always find that my transunion score is several points higher than all the other places, but no one seems to go off the transunion score which is frustrating. I'm wondering which one is used the most? Do you know?
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Re: GR's Guide To Changing Bad Credit Into Amazing Credit In Less Than 6 Months
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Originally Posted by
SarahTime
I always find that my transunion score is several points higher than all the other places, but no one seems to go off the transunion score which is frustrating. I'm wondering which one is used the most? Do you know?
It depends on the area you live in and the company. For me, its Equifax or Transunion. Those are my 2 best bureaus anyway. You can put a freeze on your worst bureau so place will just pull a different bureau instead. It costs $10 a bureau.
What a lot of people do to get approved for things is to place a freeze on 2 of their worst bureaus (of the main 3), so that only 1 bureau can be pulled (the best one). I have a freeze on my worst bureau (but it also has something inaccurate on it, and have needed a document that's been in storage, in order to fix it), and that hasn't been a problem at all.
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Re: GR's Guide To Changing Bad Credit Into Amazing Credit In Less Than 6 Months
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Originally Posted by
SarahTime
I always find that my transunion score is several points higher than all the other places, but no one seems to go off the transunion score which is frustrating. I'm wondering which one is used the most? Do you know?
The most used score is your FICO score. The Fico Score uses an average of all three bureaus and additional factors. you can find out how it is calculated here
http://www.myfico.com/CreditEducation/articles/
FICO is used for car loans, mortgages, basically big ticket purchases.
Other types of credit pulls depends on with credit reporting agency the merchant has signed a contract with to get info. For example, it may be cheaper for a landlord to to get access thru Experian then the others, so the landlord has access ONLY to Experian. Merchants sign up and pay a fee to be able to pull your credit report. They also sign a contract that limits how they use that information. Which is why many wont let you see the reports they pull, but then in the mail you get a letter from the credit reporting agency if you were declined.
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Re: GR's Guide To Changing Bad Credit Into Amazing Credit In Less Than 6 Months
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Originally Posted by
GlamourRouge
It depends on the area you live in and the company. For me, its Equifax or Transunion. Those are my 2 best bureaus anyway. You can put a freeze on your worst bureau so place will just pull a different bureau instead. It costs $10 a bureau.
What a lot of people do to get approved for things is to place a freeze on 2 of their worst bureaus (of the main 3), so that only 1 bureau can be pulled (the best one). I have a freeze on my worst bureau (but it also has something inaccurate on it, and have needed a document that's been in storage, in order to fix it), and that hasn't been a problem at all.
This is completely not true.
Putting a freeze on your credit report does not stop the scores from being reported in your FICO score. The only thing a freeze stops is the credit report information itself.
There are several types of freezes. All of which involve lost/stolen information or Identity theft. When banks see that on credit reports they request additional ID and information. Some freezes require a telephone call and additional paperwork on the merchants side. Not all merchants are going to bother with it.
For example, If you have a freeze on your Experian credit report and your potential landlord, can only pull Experian credit reports, they will just deny you. They dont tell you who they pull reports from and they arent going to jump thru hoops to get your report.
Your score should not vary more then 20 points between reporting agencies. If it does then you need to find out why and fix it. It takes 30 to 60 days for payment information to update on credit reports, which can explain the difference sometimes.
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Re: GR's Guide To Changing Bad Credit Into Amazing Credit In Less Than 6 Months
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Originally Posted by
Vamp
The most used score is your FICO score. The Fico Score uses an average of all three bureaus and additional factors. you can find out how it is calculated here
Actually, you have 3 Fico scores. One for each bureau. I know this because I bought all 3 on the actual website you posted (myfico.com).
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Originally Posted by
Vamp
Which is why many wont let you see the reports they pull, but then in the mail you get a letter from the credit reporting agency if you were declined.
You can purchase any credit report you want at the website or through myfico. I have purchased mine several times. So you can see them whenever you want.
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Originally Posted by
Vamp
Putting a freeze on your credit report does not stop the scores from being reported in your FICO score. The only thing a freeze stops is the credit report information itself.
If you put a freeze on a certain credit bureau ($10 per bureau), NO ONE can pull your credit report or your Fico score for that bureau. The ONLY way someone can pull it is if you give them the special pin # you created when you set up the freeze (over the phone). Current creditors can still pull your report and score, but otherwise no without this special pin #.
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Originally Posted by
Vamp
There are several types of freezes. All of which involve lost/stolen information or Identity theft. When banks see that on credit reports they request additional ID and information.
That's actually not a freeze if you have lost/stolen info or identity theft. That's called a "fraud alert" and does not freeze your credit report. It just requires companies to ask you to prove your identity by mailing them a bunch of personal information (like drivers license or ID and proof of addresses) before they will approve you. But it doesn't freeze your report. You can get the $10 fee waived though if you do put a fraud alert on that bureau though.
I was tempted to put a fraud alert, which is how I know this info, and had Experian explain all of this over the phone. In the end I didn't really need the fraud alert because I could just freeze that report completely for $10, so I just did that.
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Originally Posted by
Vamp
For example, If you have a freeze on your Experian credit report and your potential landlord, can only pull Experian credit reports, they will just deny you.
They most certainly do not deny you because they can't pull one bureau. Sometimes maybe initially, but then you call and say that bureau is frozen, and they pull another one. I know this because I did that. But usually they just go ahead and pull the other 2 if one is frozen. No big deal.
And even if it was a ~*big deal*~, all you have to do is tell your landlord not to pull that bureau because its frozen and to pull one of the other two, or if he is insistent on pulling that bureau, just give him the pin # and he can? lol
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Originally Posted by
Vamp
They dont tell you who they pull reports from and they arent going to jump thru hoops to get your report.
You can find out which creditors pull which bureaus in which areas, by using this site: Its scarily accurate. You can also find out all over the forums like the myfico forums and the other ones I've already posted above. Again, not a big deal.
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Originally Posted by
Vamp
Your score should not vary more then 20 points between reporting agencies. If it does then you need to find out why and fix it.
That's not true. Even my Transunion and Equifax scores vary more than 20 points. Different creditors report to different bureaus. Some creditors only report to 1 or 2 bureaus.
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Originally Posted by
Vamp
It takes 30 to 60 days for payment information to update on credit reports, which can explain the difference sometimes.
My payment information always updates every 30 days like on the dot. I have never seen otherwise.
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Re: GR's Guide To Changing Bad Credit Into Amazing Credit In Less Than 6 Months
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Originally Posted by
GlamourRouge
Actually, you have 3 Fico scores. One for each bureau. I know this because I bought all 3 on the actual website you posted (myfico.com).
You can purchase any credit report you want at the website or through myfico. I have purchased mine several times. So you can see them whenever you want.
I am talking about the FICO score the banks most often use. FICO is a formula for calculation. It can be changed to fit a lenders needs. Most banks use a FICO score that averages all three credit reporting scores. But this doesnt change the fact the score is not frozen but still accessible for these calculations when applying for credit.
How do I know this? I have processed the loans for banks for years. I see how the scores are calculated and the raw credit reports with the freezes and flags. I know what merchants see.
Btw there are actually 49 different types of FICO scores if you want to be technical ....
"FICO created the basic formula — the general purpose FICO, if you will — that is used to crunch consumer credit data for all loan types. The credit data is collected by the three major credit bureaus (Equifax, Experian and TransUnion) and analyzed by FICO to create a single, three-digit score. So there are three versions of the basic score, just for starters.
But FICO also has several other versions, customized for the specific type of loan in question — say, an automobile loan, a mortgage or a credit card. Each is also offered by the credit bureaus, under their own brands. And each version may have multiple releases, as FICO’s formula for crunching the data is updated. So you can see how the versions pretty quickly add up to nearly fifty."
http://bucks.blogs.nytimes.com/2012/...o-scores/?_r=0