Got 480 credit score, good income and investments, kinda old

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Got 480 credit score, good income and investments, kinda old

Postby Investor » Fri Dec 06, 2013 2:07 pm

Okay, anyone out there like me?

Almost 40. Got screwed many years ago. Illegal repo by Bank One about 18 years ago.. (can provide details, but it was over insurance on a car loan.)

It has burned down to nothing. I have zero details on my credit history at this point. No entries and something like a 480 credit score. I really have no intrest in having credit except its starting to cost me more money for no reason now. Of course on things like my insurance (I swear they pay each other off).

I pay cash for all my cars. I paid cash for all my houses. The houses are also my income. I have paid taxes every year on that income with no deviation from the truth at all. I guess I grossed somewhere around 50k last year without finding the paperwork.

If I get the ball rolling, I would eventually start leasing instead of buying as my accountant has been telling me to do this for years. I am also in a partnership with the houses , and as a business , we are looking to start buying buildings. So it could help there too.

The question is....WHERE DO I START?
Half the people tell me to try something like a best buy card. The other half tell me to try something like a secured credit card. (I have had a Pay Pal account for 10 years or so). I am just worried of getting turned down and doing damage to my credit, because I imagine it can still get worse.

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Postby PhoenixDown » Sat Dec 07, 2013 1:25 pm

For what its worth, I believe I started off with a 560 credit score. I had collections and judgements on my reports that weren't mine. The one credit card I had with a flimsy limit was closed during the credit crisis and I gave up for a time as it was impossible to fix all this.

About 2 years ago I tried applying for a new home loan (on behalf of my sister). The home was around 50k which is about half my annual income and like you I pay cash for everything and carry no debt so imagine my surprise when I was declined!

I declared war! I read every post I could on forums like this and systematically attached each and every derogatory item on my credit report until it was spotless.

My FICO is now 730. At one point I was as high as 820. I have several great credit cards and limits in what I consider usable levels (10K+). So it will take a little time and some work but you can certainly see great results if you keep after this.

1 - Start with your credit reports. Order all three via snail mail (you can do so for free once a year) and if there's anything bad on them, create a plan of attack for getting rid of those items. Sounds like it should be easy it sounds like any bad items are past the statute of limitations (SOL).

2 - Everyone has a different preferred approach. Some favor store cards, some favor secured cards and others suggest building a relationship with a credit union as they tend to be more flexible on these things. I dont have real advice in this area unfortunately. I dont think a few hard inquiries will hurt at this point. Whatever you get will likely be small but it can be something you can grow.

3 - If your current homes are under a legal business entity, perhaps your business partner can get a business credit card for each of you?? Some report to personal credit reports, others do not. It would help create a separation of business charges from personal charges which is something I imagine your accountant may have advised. Incidentally, if you are incorporated -- I hear annual stockholder meetings in Hawaii are rather nice, and its a legitimate business expense to boot ;)

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Postby MemberSince99 » Sat Dec 07, 2013 3:58 pm

Phoenix gave you some good ideas. Still, if I were you I would order my credit reports and scores and see what your actual FICO scores are. If they are truly in that range (480) then as I'm sure you know, don't bother applying for Amex or the like for a while. Or even Best Buy. I would think if that is truly your score, you will have to settle for the bottom of the barrel like Credit One and First Premiere. But BEFORE doing that, and I sure don't want to see you go that route, try a secured card with a reputable lender. I suspect that's your best option at this point, as I just don't see the prime or even slightly lower than prime lenders wanting to lend to you as far as credit cards right now, IF that is your score and situation (I assume baddies still reporting. That repo SHOULD be off your credit now but there must be other things).

Don't worry about inquiries as far as your score at this point. It's the least of your issues, again assuming it's that low and you have collections and the like on your report.

Since you really don't know I suggest you actually get them, again, as Phoenix said so you know what you have.

BEFORE you do anything, however, I'd caution you that if you have collection agencies or the like trying to track you down, I would not touch this until that resolves as you may unleash more on yourself than you bargained for. Word to the wise.

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Postby otter » Sat Dec 07, 2013 4:06 pm

A lot of great advice from Phoenix, so I thought I'd "+1" this post because there isn't much I could add, but I thought I'd say a lot of us(including me) have been in that boat. Until six months ago, I was where you are now, but I now have over $20,000 in available credit and my most recent FICO score from TransUnion was 750. Read as much as you can, make smart decisions based on what works for you, make payments on time and keep your utilization low and you will be there too...
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

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Postby DavidNY » Sat Dec 07, 2013 4:15 pm

I'd recommend a Bank of America Secured card.

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Postby Investor » Sun Dec 08, 2013 3:07 pm

Thank you everyone.

I had pulled my report the last couple years. It had nothing on it at all. Zero. Name, address, and the AKA's from my name being improperly spelled in the past.

I learned a long time ago that any discussion with bill collectors only prolongs the pain. What happened with the repo. I bought a truck. The saleman never explained that my insurance could not be transferred. I was young and on my dad's with the previous car. I found out three days later and bought a policy. For the next 6-8 months the bank badgered me for proof if insurance and I would sent it in. Finally , I get a repo notice along with a new payment amount and a required amount to pay NOW. SO I call to find out what the hell is going on. Here , they required proof for the first three days , and charged me forced place insurance , retro active. Just over 4,000 dollars. They wanted half now, (or repo) and rolled the other half into the payment along with a rate increase. So......I let it go.Never late, never missed a payment. About a year after they took it, they had a class action lawsuit, that they lost. They dropped the case against my for the repo and the negative marks on my credit, but ut had already been sold off to collectors. If I explained what happened , they played hot potatoe and sold it to someone else. Each adding a negative line to the report. So it looked like I defaulted on 100k worth of stuff. So I found out why they were able to do that. Turns out it was more fun to act like an asshole to them rather then tell the truth anyway.

I recall that being my score on one of them, but I don't remember which. The one report never works. (Espirion?) so it would have been one of the others.

The business account we use now is a bank issued Visa debit card. Pretty much the same with Pay Pal.

I like the Credit union idea the best I think as long as I can confirm that they report to the bureau.

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