Embarassing Low Credit Scores of 482 and 513 (Need Help!)

For just about anything you want to get off your chest about credit cards.
10 posts
Wasn't That Smart
Green Member
Green Member
 
Posts: 8
Joined: Fri Nov 22, 2013 12:40 pm
Location: Florida

Embarassing Low Credit Scores of 482 and 513 (Need Help!)

Postby Wasn't That Smart » Fri Nov 22, 2013 12:57 pm

Well this is tough to talk about but I figured I'm finally in a situation (financially) where I can get serious on rebuilding my credit.

As of 11/15/13 My EX - 482 TU - 513 EF - 481.

I know this is horrible. I had a very rough couple of years and paying for it dearly now. I have a bunch of student loans that I feel behind on, a couple of credit cards that ended up in collections. I lost my job and just couldn't pay anything back. But no more excuses. I recently landed a way better paying job and need to get myself back in order.

I've been a reader of the site for quite some time now and everyone seems very helpful so I figured I'd bite the bullet, tell my story and hopefully get some good tips to rebuild credit. I know this is going to take years of hard work but It needs to be done!

Now to the good stuff, I have about 50K in student loans, that are under economic hardship deferment. 30K are federal and are in deferment and 20K are private, which I currently pay every month (set up auto pay so I'm no longer late)

My wife has 3 CC which I am an AU on and they do report monthly.

Now for my derogatory CC. I have two CITI cards in collections. 1 Cap One Card and one Target card. Of course all in Collection. I just set up a payment plan on my Target card to get that paid off and I plan on setting up settlements for the others over the course of 2014 hopefully having all collection accounts paid off.

My question is, realistically speaking, can I have good credit again, even with my student loan debt so high?

Any tips or suggestions you guys have will help me a ton. I'm dedicated on getting my score up.

Thanks in advance everyone.
Starting Scores - 07/01/13
EX - 482
TU - 513
EQ - 481

Current Scores - 12/09/13
EX - 589
TU - 534
EQ - 517

Current Cards (mine)
Walmart - $400.00
Fingerhut -$400.00

Best Buy - AU - $300.00
Cap One - AU - $1000.00
Barclaycard - AU - $2000.00
5/3 - AU - $300.00


User avatar
otter
Centurion Member
Centurion Member
 
Posts: 639
Joined: Sat Aug 24, 2013 8:45 pm
Location: Grand Forks, ND

Postby otter » Sun Nov 24, 2013 5:07 am

Welcome to the forum! Glad you decided to join...

Many of us here have been exactly where you are now. You ask can you ever have good credit again. Well, actually I think I had a worse score than you did. I think at one time, I had nine delinquent accounts and a car repo going on at the same time. I'm not sure exactly what my credit score was because I was really afraid to even look, but I'm sure it was lower than yours. It will take time, though.

The good news is you have a better paying job. Now is the time to get your financial house in order. You say you are an AU on your wife's accounts- depending on the issuer, this may help you reestablish your own credit. Personally, I think the most important things to do right now are: (1) Build up your own personal nest egg and emergency resources. Before I started rebuilding my credit, I made it a point of making sure I had a few months of income stored up and started investing some money for the future. This is important... if I lost my job tomorrow, I know I can pay all my current debts and bills until I find another job. You will at some point have to start paying the 30k in federal loans so plan for that day. (2) Stay current on your student loans and try to settle your credit card debts. All your derogatory information will stay on your credit report for seven years from when they became delinquent. After a few years, the impact they have on your score will lessen. I don't know if I could recommend adding an additional credit card(and with your score it might be hard to get anything other than cards by scum issuers such as First Premier). Maybe getting a store card might be possible, but you wouldn't want to use it except maybe once every few months and pay it in full.

Another thing which might be a good thing would be to find a small local bank or credit union, open an account, and establish a good relationship with them. be up front with them about your past problems and they can be someone who can help you as your credit improves.

Things will get better- you just have to let time work its magic...

Good luck!
In my Wallet:
  • Amex PRG NPSL[3-14, bd 91]
  • Sallie Mae MC $8000[1-14]
  • Chase Freedom $4700[1-14]
  • Discover It $2750[8-13]
  • BoA UCF Alumni Cash Rewards $5000 [3-15]
Sometimes in my Wallet:
  • GM BuyPower WEMC $5000[9-14]
  • Wells Fargo Propel 365 Amex $7000[4-14]
  • Barclaycard Arrival WEMC $7000[3-14]
  • BoA Better Balance $3000[2-15]
In my sockdrawer: Amex BCE $1000[10-13, bd 91], OCCU Duck $10000 [11-13], The Sportsman's Guide Visa $8000[8-14], Chase Slate $4000 [9-14]Delta Gold Amex $2000 [2-15 bd 91], Diners Club MC $20000 [10-14] Commerce Bank Visa $2000 [3-15] Citi Double Cash $1000 [3-15]
Total CL: $90450

MemberSince99
Centurion Member
Centurion Member
 
Posts: 4913
Joined: Sun May 20, 2012 4:35 pm
Location: WI

Postby MemberSince99 » Sun Nov 24, 2013 7:48 am

I can tell you from personal experience your credit will someday get better assuming you take care of it now. It will be years but it will happen.


I also lost my job, and ended up defaulting on a pile of credit cards. I had student loans like you that I had put on auto pay so they were paid. My credit was like yours just horrid, but once the collections fell off I was in the low to mid 700s due to my student loans and auto loan I had paid (though that had a late on it from when I got laid off again).


So it will happen. It just won't happen overnight.

mdl28
Centurion Member
Centurion Member
 
Posts: 211
Joined: Thu Mar 21, 2013 10:18 pm
Location: TX

Postby mdl28 » Sun Nov 24, 2013 8:14 pm

Been there and gone through that. Just keep up the motivation to dig out of the hole you got yourself in. Stay on track and don't tell yourself that it will just "get better". Continue to work at it. Call your creditors, ask them to distribute you letters once you have set up payment plans and get a good track record of on time payments. Therefore when you do need to take out your next installment loan ie: auto, line of credit, or mortgage you will have statements from creditors to show your new creditors that you are on the right path now and may be worth extending you reasonable credit terms again. Keep in mind this is not a quick fix. It will take a few years to get back on your feet unless you have enough cash to payoff all debt and start off fresh now. Keep your self motivated and you will get there. It's always got to get a little messy to clean things up.
MDL

Amex Gold Prem'r
Amex BCP
Amex Green
Barclays Ring Platinum MasterCard
Citi Diamond Pref'd
Chase Sapphire Pref'd Visa Signature
Chase Freedom MasterCard
Discover It
New York Life Visa Signature

Wasn't That Smart
Green Member
Green Member
 
Posts: 8
Joined: Fri Nov 22, 2013 12:40 pm
Location: Florida

Postby Wasn't That Smart » Mon Nov 25, 2013 10:29 am

I really appreciate the responses everyone. It helps a lot to know I'm not the only one who has gone through this and that there is still hope for me. Thank you for the tips.

2 of the 4 cards my wife has that I am an AU on show up on my report. I've learned a lot reading on this site, so I'm using everything to make sure we build her credit correctly.

I'm more determined than ever to get my credit score up and I know it's going to be a rough couple of years.

Now a few questions I have. Should I even attempt to try and get say a store credit card now? Or will it be just a waste of inquiries because of how low my score is?

Also I've heard mixed opinions regarding collection accounts. I've read on some sites that you shouldn't pay collections accounts if they are really old (3-4 years or longer) because as soon as you make a payment it brings it current again. Or should I make arrangements to pay them all off? This is a big concern, because I have a couple of collections that are a few years old, and if you say they lose impact on my score after a few years I don't want to bring them current and have my score tank even more.

Thanks again for the help.
Starting Scores - 07/01/13

EX - 482

TU - 513

EQ - 481



Current Scores - 12/09/13

EX - 589

TU - 534

EQ - 517



Current Cards (mine)

Walmart - $400.00

Fingerhut -$400.00



Best Buy - AU - $300.00

Cap One - AU - $1000.00

Barclaycard - AU - $2000.00

5/3 - AU - $300.00

Wasn't That Smart
Green Member
Green Member
 
Posts: 8
Joined: Fri Nov 22, 2013 12:40 pm
Location: Florida

Postby Wasn't That Smart » Tue Nov 26, 2013 11:31 am

Thanks for the response everyone. It helps a bit knowing that I'm not the only one that was in this spot and I have hope!. Just a few questions.

Should I even try to apply for a secured card or store card? Or will it just be a waste of an inquiry at this point?

Also regarding collection accounts. I've read alot about this, some people say don't pay collection accounts because that resets the clock. I have some accounts in collections for 3 years+. Should I make payments on these are just continue to wait and let them fall off?

Thanks again for the help.
Starting Scores - 07/01/13

EX - 482

TU - 513

EQ - 481



Current Scores - 12/09/13

EX - 589

TU - 534

EQ - 517



Current Cards (mine)

Walmart - $400.00

Fingerhut -$400.00



Best Buy - AU - $300.00

Cap One - AU - $1000.00

Barclaycard - AU - $2000.00

5/3 - AU - $300.00

Wasn't That Smart
Green Member
Green Member
 
Posts: 8
Joined: Fri Nov 22, 2013 12:40 pm
Location: Florida

Postby Wasn't That Smart » Tue Dec 10, 2013 11:28 am

Just wanted to give a brief update on my situation. I went ahead and bought my credit reports from MyFico and was shocked to see my scores had actually gone up a bit from where they were.

12/06 - EX - 589
12/06 - EQ - 517
12/06 - TU - 534

I was able to get a $400 Fingerhut account. I know this isn't the best, but they do report to the Bureaus so it will help.
Also I was approved for a $400 WalMart card, I've heard of good things about CLI on this card so hopefully it will work well for me.

It isn't much, but hopefully as my bad accounts start slowly going away due to time this will help me to get my credit score up a bit.
Starting Scores - 07/01/13

EX - 482

TU - 513

EQ - 481



Current Scores - 12/09/13

EX - 589

TU - 534

EQ - 517



Current Cards (mine)

Walmart - $400.00

Fingerhut -$400.00



Best Buy - AU - $300.00

Cap One - AU - $1000.00

Barclaycard - AU - $2000.00

5/3 - AU - $300.00

MemberSince99
Centurion Member
Centurion Member
 
Posts: 4913
Joined: Sun May 20, 2012 4:35 pm
Location: WI

Postby MemberSince99 » Tue Dec 10, 2013 1:33 pm

Congratulations to you I think you did well. I'm sorry for not seeing your post and responding sooner but you really didn't need the help. Those will build your credit and in time you will move on to even better. So you did very well I think and are on the right track.

Wasn't That Smart
Green Member
Green Member
 
Posts: 8
Joined: Fri Nov 22, 2013 12:40 pm
Location: Florida

Postby Wasn't That Smart » Tue Dec 10, 2013 2:12 pm

No problem, and thank you! It was definitely a good feeling seeing the instant approvals (it's been years) and finally having one that's mine and not just being an AU.

I've just been reading all the posts I've been able too regarding rebuilding credit and it has helped a lot. I'm still not 100% on collections, but I figured I should just go ahead and pay them as I can. I already set up a payment arrangement on one and will try to knock them out. If the collections will show on my report for a few more years anyways, I'd rather them show paid.

Really looking forward to getting some prime cards over the next couple of years!
Starting Scores - 07/01/13

EX - 482

TU - 513

EQ - 481



Current Scores - 12/09/13

EX - 589

TU - 534

EQ - 517



Current Cards (mine)

Walmart - $400.00

Fingerhut -$400.00



Best Buy - AU - $300.00

Cap One - AU - $1000.00

Barclaycard - AU - $2000.00

5/3 - AU - $300.00

MemberSince99
Centurion Member
Centurion Member
 
Posts: 4913
Joined: Sun May 20, 2012 4:35 pm
Location: WI

Postby MemberSince99 » Tue Dec 10, 2013 4:28 pm

Keep going like that and soon, before you know it, you will be getting prime cards. Good for you!



Return to “General Credit Card Talk”

Who is online

Users browsing this forum: No registered users and 2 guests