- Green Member
- Posts: 16
- Joined: Sun May 03, 2015 1:24 pm
So I have had pretty bad credit since 2014, as a stupid 20-something year old I signed up for a bunch of cards and bought stuff I didn't need. Previously, the bad stuff was mostly just high credit balances, but, last year I got in a car accident and hurt my back pretty badly. I essentially wasn't able to work for months (I was self employed) and I racked up debt to the max, and missed payments. I had a bunch of accounts "closed by creditor" and other non-ideal things happen. Here is where I stand:
I am self employed and make between $5,000 and $15,000 in any given month (I recently acquired a company that generates about $5,000/mo passively + the work I do). This previously wasn't true becasue of my limited work capacity when I was injured.
1 credit inquiry that is dropping off in 2 months.
120 day late payment on Boscovs card (closed, and now paid in full)
C1 1 30 day late payment
Amazon 90 day late payment
PayPal 60 day late payment
WalMart 2 60 day late payments
I have a few
Discover IT: 250/500
C1 Spark (business) 0/750
C1 Platinum: 310/600
C1 Platinum: 1485/1650
Closed Accounts / Chargeoffs:
Paypal SmartConnect: 2248
WalMart Credit: 663
Amazon Store Card: 1091
Verizon Wireless: 621 (from an unpaid phone bill when I switched to T-mobile 2 years ago)
University of Phoenix: 723 (when I dropped out of college this was a balance due)
LVNV Funding LLC (stemming from a closed credit one bank card): 730
So I have been paying off cards aggressively, and have dropped my overall balances (across both open and closed cards) by about 50% in the past 3 months. My plan is to pay the remaining balances on my open lines this month (~$2000), then it is unclear where to go from there.
1. Collections: what is the appropriate way to deal with this? It is recent. Do I pay it in full, offer a settlement, or do a PFD?
2. Closed Accounts / Chargeoffs: I'm assuming I should pay these balances off as well, is it possible to negotiate this or do a PFD?
Then once everything else is paid off - I want to try to aggressively grow my credit score. Would it be beneficial to get a secured credit card with a large limit (like $5,000-$10,000) or should I just stick with my current cards, ask for soft-pull CLIs and wait it out. My ultimate goal is to qualify for a home loan - ideally through a traditional mortgage, if not through an FHA loan (which is much more lenient w/ a 580 credit requirement). I would not want to do this for a year.
I really appreciate any advise that could be offered here!