Hi all... new to the site. I have read thru many of the post and this is very good information. a Helluva alot more honest than those folks on myfico.com. I like it but I needed real life not 'send letters and hope for the best!'

Here is my scenario in a nutshell:

Goal -eliminate poor credit brands from my record (1st premier, orchard, creditone, cortrust) MC/Visa LOC - 35000, AMEX (without AU status), Graduate Student loans (plan to apply in April) (>50K).

Bk dismissed 12/02 will fail off 12/09
Providian/WAMU/Chase $7312- due to fall on or about 8/09
Cap1 $1222 - due to fall on or about 10/09
(wait these out but get enough CL to cover these high balances and lower my credit utilzation)

3/12/09
EQ 631
TU 611
EX ???

(I have applied for the following - Hooters (pending decision), Walmart (pending decision), Kay (approved $5K), Discover (student - pre approved; yet declined will ask why nicely))

Current cards and limit increases

Department
Target - 200 - since 5/08
Macys - 500 - since 8/08 ((2) $100 increases last one on 2/09)
Lord&Taylor - 800 - since 3/08 ((3) increases initial line was $400 (200 each) last increase 3/09)
Nordstrom - 500 - since 12/08
Kay - 5000 - since last night (lol)

1st prem visa - 650 (since 3/05 open cl 200 (2) increases) ($25 fee 4 increase)
1st prem mc - 700 (since 6/07 open cl 400 (2) increases) ($25 fee 4 increase)
Orchard visa - 500 (since 9/07 open cl 400 (1) increase no charge)
Orchard mc - 600 (since 10/06 open cl 300 (3) increase no charge)
Cortrust mc - 800 (since 2/06 open cl 300 (5) increases) interest rate too high and they take forever to post payment to account
Creditone visa - 650 (9/06 - open 300 (auto cli) high interest rate and increase from 6 to 6.5 for monthly participation fee) BOO]1stNatl visa[/B] - 400 (since 6/08 open cl 300 (1) increase no charge)
Texans Credit Union LOC - 1000 (since 3/08)
WAMU/Chase visa -2500 - (since 2/08- interest rate has jumped by .5% since Chase purchase)
Juniper MC - 2250 - (since 4/08 clD (WTF) 12/08) was 2500
HSBC Rewardzone MC - 500 (since 12/08)

Here's the situation. Closing those poor card account will kill my credit line and utilization since at this point I only carry balances on 3 of the cards you see above (Juniper, WAMU and Texans LOC)

I need at min on more 'Fair to Good card to wipe out that other stuff and to close them effectively immediately following my bk drop off (from all 3 reporting bureaus).

Scared to apply for Cap1 although from all threads they are most forgiving. But want the charge off to drop before going down that road if you know what I mean.

Getting increases on current accounts are like begging in a chow line.

I make a good salary. I pay on time and never late for the past 4 years.

Hopefully Hooters/Walmart will help as I need to increase CL to improve utilization until old crap is gone.

Goal (student loans and fico scores to 700 by close of the year).

Help any suggestions.

famu93:white-flag:

Thanks in advance. I will update and am officially hooked!:

Here is a flip side to the questions you just asked. OK, when you have student loans, remember that a negative is a negative regardless to who they come from. Student loans are the worse because they will stay with us for the rest of our lives, and the cold part is they only function like other debt when we have paid off, or show improvement for 6 months straight after our last baddie. Now here is the difference:

1. With student loans, we have to stay on top of them faster than regular debt. They can not put any late payments on our reports until after 60 days of none payment. They give us plenty of time to get a payment in on time and will offer plenty of resources to see if we can qualify for some type of deferment or forbearance status. The last thing they want to do is come looking for us, so instead they do all they can to work with us.

2. Now, when we are trying to get some type of stall on our loans, we tend to take our time (me being one of them) because we know that we have a high chance of some type of deferment. But what a lot of people don't know is that, they can ask for you to make a payment on your loan until they process your paperwork. Not doing so will cause a late payment. I had to pay on my student loan from Chase because when I first called in, I was not on a half time status yet because school has not started. If your school is registered through the National Clearing house, then you would want to work a little faster because it can take them 30 days or more to complete your request, and by that time (if you were already stalling time) you could end up with a negative report from them on your credit report. They will tell you in fine print that if you were report to the CB while in the process of your deferment request, and you were past your 60 day late payment, they will not reverse nor remove the negative item from your report regardless if it was through the 4 Cb's or you.

If you paid late while in loan repayment, then I suggest you call them right away to clear it up. I was in loan repayment status but by law, they can not report until after 60 days of non payment. Make sure you call them and negotiate a deal before you go mailing them a payment and thinking everything is OK. We do not want to mess with these peoples because they will haunt us down 6 feet in our graves and ask our bones to pay up. They are not like regular creditors, we can't even file bk on them, they stick to us like white on rice.

Regular creditors such as credit cards, dept stores, personal loans, installments...etc, will report a negative item that will look bad but will not drop the neg item until after 7 yrs, and it does not look bad to some creditors after 2 yrs of on time payments. Student loans on the other hand will put you at a good status if you pay 6 months on-time consecutive payments. But everything on there stays while you pay. What shocked me was when one of my friends paid off her student loan, she was denied a house because they seen that she had a few lates on her student loan way past her 7 yrs sol. Banks can see a little further than what we see and student loans holds info much longer. I had defaulted way back in 1988, and it did not leave my credit report until 7 yrs after it was recovered, and that was in 2001 or 2000. I think it officially left like around 2007 or 2008. But I was told that some banks (like real estate) can see beyond the 7 yrs.

In regards to student loans, that would not damage a report. The main thing that matters is

Thanks for the input. My student loans were late a time or two before I deferred them so that must be the problem.

When you say the negative items will not be removed, do you know what kind of time frame are we talking about? Will it be removed once I start making regular payments, after 7 years, once the loan is completely payed off, or what.

Arizz, I don't think you should open any more CC for the time being (expecially because all your Bank cards were opened in the last 3 months). You should def wait till those accounts age a year and check your scores to see what progress you made. Than, get rid of those high fee cards and get some better ones when your scores progress. Even if you have to go the secured route, you will at least open the door with the big banks which will help you get rid of the high fee cards.

If you are eligible to join NFCU (Navy Federal Credit Union), join them and apply one of their cards because I've heard that their approvals are fairly easy.

HJM, I am a NFCU member (have a share savings account and a checking) and I have had nothing but trouble trying to get a CC from them. I don't think they are that easy at all. Well, I actually spoke to a very nice lady in the Credit Dept a couple of years ago (after being denied for their card) and she told me that typically they don't look at credit scores until the end of the application process. They don't mind that you have CO's or negative factors on your credit, but the only way they will approve you for their card is if all the baddies show a zero balance on you CR. Have you had different experiences from them? If so, please share (I have been trying to get a CC from them for the last 5 years.

Hello and thanks to everyone on this site, You have all been a big help already in my credit recovery efforts. Here is a brief description of my story and situation. I use to have perfect credit was able to finance vehicles in my own name with no money down, had 2 american express cards, etc....
I let my finances get out of line so now I am looking at about 10 accounts in negative standing to include, 2 Repos=20k CO, 5 credit cards=10k CO, and 2 personal loans about 3500 CO.

As of right now I have a Macys 700cl, Continental Credit300cl, Total 250cl, and Orchard bank card 320cl all in good standing and balances low. With the exception of the macys card all the others have been open since December 2008. My scores are EX 584, EQ 505, TU 515.

Should I try to open some more new accounts and pay the high fees to help build my credit faster, or wait 6 months to apply for better cards. I burned capital one with a repo so I am not sure if I am Black from them?? Most of the bad debt is older now 3 years++ so would it be better to play the waiting game or negotiate and get them deleted. Any help from prior experience would be helpfull. Hard lesson learned just trying to recover and lick my wounds now. Thanks guys, and gals! Oh and how quick will my scores jump if I maintain good payment history with my new cards over the next 6 months?

In regards to student loans, that would not damage a report. The main thing that matters is :

1. They are reporting "In Deferment" and "Never late!"
2. Not in default
3. Watch and make sure that your deferments are done in a timely matter because if you take your time, any negative items that hit your report, will not be removed.

I have been in school deferment for at least 5 years and I have the intr added to my balance since day one. No negative here and it never had an impact or stooped me from getting credit. Remind you, I started 6 yrs ago: laugh :: laugh:

Thanks for the replies HJM and Colo.

After poking around here for a day it seems like a secured card is definitely the way to go. Some of the stuff Ive read elsewhere suggests that if the lender reports the card as "secured" (as opposed to an unsecured card) as BOA tells me they do then it could look worse and actually hurt your score, at least temporarily. Anyone know if this is true?

As far as my loans Im not sure why they are all listed negatively either. I assume its because, due to interest, the total amount owed is now higher than the "credit limit" which was the original amount of the loan.

Anyways, thanks for the help guys. Im starting to get a clear picture of what I need to do. Now its time to set the plan in motion.

BofA does indeed report the card as secured. However, BofA has one of the (typically) shortest secured requirements. Citi is 18 months and Wells/US Bank are usually 12.

I suggest going to their website here]https://preapproved.bankofamerica.com/cc/SelfInquiry.aspx[/URL]

Enter your information-it is a soft inquiry so only you and BofA will see it- and it will let you know if you are pre approved for their secured card.

Again, it is going to take time to build/rebuild your credit, it would be worth it to get your feet in the door at a prime bank.

I see what you are saying now about the loans. They were "unsubsidized" so interest accured making your outstanding balance higher then the original loan amount. I always recommend to people to opt in with the bank to pay the monthly interest charges; but if these are law school loans that probably would have been too much. Sounds like you are getting close to the point were you can consolidate all of your student loans into one loan at a low fixed rate-and it will be tax deductable. If it were me, I would consider this a "car loan" so instead of paying the studen loan off in 15 years or something ridiculous, I'd send them basically a car payment each month to get it paid off in 6 years or so. It just depends on your financial situation and how big the loan is. Just a thought.

Thanks for the replies HJM and Colo.

After poking around here for a day it seems like a secured card is definitely the way to go. Some of the stuff Ive read elsewhere suggests that if the lender reports the card as "secured" (as opposed to an unsecured card) as BOA tells me they do then it could look worse and actually hurt your score, at least temporarily. Anyone know if this is true?

As far as my loans Im not sure why they are all listed negatively either. I assume its because, due to interest, the total amount owed is now higher than the "credit limit" which was the original amount of the loan.

Anyways, thanks for the help guys. Im starting to get a clear picture of what I need to do. Now its time to set the plan in motion.

As of right now I have a Macys 700cl, Continental Credit300cl, Total 250cl, and Orchard bank card 320cl all in good standing and balances low. With the exception of the macys card all the others have been open since December 2008. My scores are EX 584, EQ 505, TU 515.

Should I try to open some more new accounts and pay the high fees to help build my credit faster, or wait 6 months to apply for better cards. I burned capital one with a repo so I am not sure if I am Black from them?? Most of the bad debt is older now 3 years++ so would it be better to play the waiting game or negotiate and get them deleted. Thanks guys, and gals! Oh and how quick will my scores jump if I maintain good payment history with my new cards over the next 6 months?

If these charge offs are a little over 3 years old then you have a little over 3 years before they fall off. Keep track of them and really the creditors have to go by the first date of delinquency (the date that the account(s) originally fell past due-not just the date it charged off.)

I'd say stick with what you have for now. You need to keep your inquiries low and opening new accounts will lower your average credit age. Orchard and Macy's are good to have. I have seen Capital One show forgiveness before in terms of credit cards, not sure how it will work if you stuck them with a repo though.

So, you are on the road to recovery; but you need to be patient. Keep the cards you have for now. Maybe next year apply for a BofA, Citi, Wells Fargo or US Bank secured card so that you get a prime bank on your credit report. Then by 2012-ish start disputing those older charge off accounts with the credit bureaus. If the creditors respond that everything is accurate, give them a call and find out when your first date of delinquency is (usually 5-6 months prior to charge off). If you are within that 7 year period let them know that it is obsolete information.

Again, be patient, don't go out applying for new cards-especially since many of the ones you have will not grow with you and will eventually probably need to be kicked to the curb. I would really recommend the secured card from a prime bank next year so that you can have that card age and grow with you.

Good luck.

2) My student loans from Sallie Mae are listed as 4 different accounts totaling over $20,000. Ive got them in forbearance until my wife finishes law school this summer but they are KILLING my debt to credit ratio. Any advice on the best and quickest way to get these items out of negative status?


How are these negative? Aren't they reporting as in hiatus "deferred" ? If it isn't past due it really isn't negative. Unfortunately though the only way to lower them is to pay them. After the Mrs. graduates you might look into a consolidation loan for them. Other then that, there really is nothing you can do about those.

Revolution, welcome to FG! I can't really help with question 1 and 2 but I can help you with number 3. My advice to you and everyone else who wants to build/rebuild their credit, stay away from First Premier! The amount of money that you pay them is enough to open a secured account with a bank or credit union.

It's definitely a good idea to apply for the BOA secured card because not only are you building credit, but you will have your foot in the door with them and they will upgrade your card from secured to unsecured within 9-10 months. I would also recommend applying for the Citi Secured card.

If you are eligible to join NFCU (Navy Federal Credit Union), join them and apply one of their cards because I've heard that their approvals are fairly easy.

Hey Everyone,

Just found this site this morning and it appears to be a tremendous resource. At the age of 30 I have a very poor and limited credit history and need serious help now. I have been researching stuff online but there is so much info out there that my head is spinning a lil bit. Im hoping to get some specific advice from people who have been through similar problems or know more about credit than I do. Please forgive me if this should just be added to another thread or if Im not following protocal here.

My specifics:

My scores from the 3 bureaus websites are 561, 581, and 599. I had some issues with credit cards from my time as an undergrad student. All of that is off of my report now BUT the experience soured me on credit cards and I have not had one since that time (foolishly). I have a judgement from 2004 for a late rent payment that is also listed on my report with a collection agency. Another negative on my reports is 4 student loans (same lender) that are in forbearance but show some late payment history. Also, Ive bought all my cars with cash and while my mortgage is in my name the actual loan is in my parents name and it does not appear on my report. End result is that I have several negative items on my report and NOTHING positive except for one smaller student loan that is in good standing and almost paid off.

My specific questions are:

1) How should I handle the judgement and collection account from 2004? I plan on disputing the judgement of $995.00 even though it is valid and apparently hard to remove. The account has been with a collection agency since 2004 which list the amount owed at over 2,000. After disputes should I try to pay the original creditor the 995.00 first or should I try to negotiate a pay for deletion with the collection agency?

2) My student loans from Sallie Mae are listed as 4 different accounts totaling over $20,000. Ive got them in forbearance until my wife finishes law school this summer but they are KILLING my debt to credit ratio. Any advice on the best and quickest way to get these items out of negative status?

3) In terms of building new credit there is some conflicting advice out there. Im thinking of applying for a First premiere card and a secured BOA card. Does the fact that BOA reports it as a secured card hurt my score or the way its viewed by lenders? Would getting a secured card from my credit union be a better idea? What approach do you think would build my history better and quicker?

Okay, thats a lot of words. Hopefully, someone has time to respond and help me out here. I know that its gonna take time regardless of what I do but Im really trying to develop a focused plan for attacking my issues and rebuilding my credit. Thanks in advance and I look forward to being a contributing member of this great community.

Hello and thanks to everyone on this site, You have all been a big help already in my credit recovery efforts. Here is a brief description of my story and situation. I use to have perfect credit was able to finance vehicles in my own name with no money down, had 2 american express cards, etc....
I let my finances get out of line so now I am looking at about 10 accounts in negative standing to include, 2 Repos=20k CO, 5 credit cards=10k CO, and 2 personal loans about 3500 CO.

As of right now I have a Macys 700cl, Continental Credit300cl, Total 250cl, and Orchard bank card 320cl all in good standing and balances low. With the exception of the macys card all the others have been open since December 2008. My scores are EX 584, EQ 505, TU 515.

Should I try to open some more new accounts and pay the high fees to help build my credit faster, or wait 6 months to apply for better cards. I burned capital one with a repo so I am not sure if I am Black from them?? Most of the bad debt is older now 3 years++ so would it be better to play the waiting game or negotiate and get them deleted. Any help from prior experience would be helpfull. Hard lesson learned just trying to recover and lick my wounds now. Thanks guys, and gals! Oh and how quick will my scores jump if I maintain good payment history with my new cards over the next 6 months?

What kind of business do you have? how long have you been in business? can you prove income? what size loan are you looking for?