Confused about how to plan for the future

For just about anything you want to get off your chest about credit cards.
7 posts
shoptalk01
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Confused about how to plan for the future

Postby shoptalk01 » Mon Feb 11, 2013 3:31 pm

It's been a long rough roller coaster ride and it feels like the operator went on break and forgot about the ride -- just left it running with me on it! I admit, I rely heavily on Credit Karma, but I'm not sure what else to look at. I started out with a CK score of 552, managed to get a secured card, then for some reason got as low as 512......left us holding our breaths because I was sure I was going to fall below 500, but then it started to rise, fell, started to rise again. I hung out at 572 to 575 for the longest time then went up to 624, then fell to 601 and now am sitting at 618. So far my only 2 cards are Capital One $800 CL and US Bank $300 CL both secured. Cap1 is about 7 months and US Bank is 4 months. Paid both online several times a month and never been over my limit on either. These are the only 2 accounts I have reporting.

My funny family has always been, you get one chance to do it yourself, blow it and we step in and do it for you. Once you've shown you can't handle credit, that's it, you're done. You might be 32 years old, but you're treated like you're 15. I was really only supposed to get one credit card but I got 2. My mom who's 89 argued with me about the MasterCard because she didn't think anyone around here would accept it - a credit card should be a Visa card, end of story. She came uncorked when the bank gave me a debit card because she thought all Visa cards were credit cards, then when she got a rebate on a Visa gift card, she was totally confused.....and she wants to run my life?????

Well, this is a small town, one back woods no service bank -- they say "full service" but they tend to leave customers standing at the window while they are laughing and joking in the back. I totally lost faith in this bank when they told my mom they never heard of US Bank and my credit card was likely a scam. Then they are off on this kick that credit cards are completely unnecessary because debit cards do the same thing now days. I refused to talk to the financial people from the bank further, so I get sent to this jack of all trades who's supposed to sell insurance, have investments, figure taxes, etc. and he's supposed to advise me on the proper use of credit cards?????

Right now, my real reason for having credit cards is to try to get my score up. It's part of planning for the future, because at some point, I would like to buy my mom's house. It's only valued at $20,000 and I should be able to get it for less, but the bank said if my mom passed away today, I'd be totally screwed and wouldn't be able to get it because I wouldn't be able to borrow a dime. Now this investment guy says I should just garden the 2 secured cards I have and wait at least 2 years before filling out any new applications. I would like to think I would be able to get the cash rewards card from Capital One with the $39 annual fee as early as the summer before my annual fee is due on my secured card. I could really use the $650 I gave them back, but then I just get another card I'll outgrow in a year. We discussed getting another secured trade-line, but he said I would do better increasing the deposit on what I had.

The guy looked at my credit report to see if there was something that could be repaired, but it's not looking good. There are 7 charge off's from when I lost my job several years ago, I know I paid most of them but he said they are now stuck on my report for 7 years and nothing can be done. There are 2 open collections, one for $130 and the other for $75. For the life of me I can't figure out what they are for because I didn't get any bills, just poof they showed up on my report, no letter from the collection agency or anything. One is for like something like TIC Group, never heard of them and don't even know how to contact them. He's going to try to help me dispute them as "not mine" but he says when your credit totally sucks like mine, it's hard to get anyone to believe you. He pointed out that the first open collection wasn't dated so we don't know when it was added and it's likely to be stuck on my report for life. The other just hit maybe 3 months ago, but no warning at all.

Now the question remains, how long do I wait to apply for another card and what do I apply for? Would adding a few hundred to my account now make a huge difference in a few months? Is there any possibility of my scores ever improving, or should I just cancel my cards and get my money back?


FutureBillionaire
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Postby FutureBillionaire » Mon Feb 11, 2013 4:58 pm

Do not apply for anything until you have disputed everything on your report that you think is incorrect. That needs to be your first order of business.
Gas: Discover It, Penfed Platinum Rewards x2, Chase freedom, Citi TYP
Plane tickets: CSP
Groceries: AMEX BCP, Penfed Platinum Rewards,Citi TYP
Clothes: Express, Amex BCP, Discover IT
Amazon: Citi Forward, Cash +
Restaurants: Citi Forward, Chase Freedom, Discover IT, CSP
Hotels and other travel: Discover Escape, CSP
Movies: BofA travel rewards visa signature(fandango), Discover IT, Citi Forward, Freedom
Bars, clubs, tomfoolery: CSP, Citi Forward, Discover IT, Freedom
Balance transfers: Kroger 123 rewards
Bill Pay: Chase Ink Plus, Citi Forward
Everyday spending: Bofa Accelerated cash rewards amex, Discover Escape

ceemee
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Postby ceemee » Mon Feb 11, 2013 10:15 pm

Don't apply for any new things right now. Work on getting your report fixed.

CreditKarma provides you with a fake credit score, go to http://myfico.com and get a real TU Fico (it's an older model, but still real), and EQ score from them.

How old are the 7 charge offs?

Google the creditors for your 2 open collections. Your debt was probably sold to them.


kcarter609
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Postby kcarter609 » Mon Feb 11, 2013 10:32 pm

Dude, forget the credit stuff for now. Worry about telling your family to stay out of your business and that you're going to take care of your own stuff. Then put the credit 2nd.

Active Cards:
Chase Freedom 10+10 Visa Signature ($9k Limit - 8/2012)
Chase Sapphire Preferred ($10k Limit - 2/2013)
Chase Ink Plus ($7k Limit - 2/2013)
Discover IT ($9.5k Limit - 10/2012)
AMEX Zync (No Pre-set Limit - 1/2010)
AMEX Blue Cash Everyday ($20k Limit - 1/2013 - Backdate to 1/2010)

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Snowman
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Postby Snowman » Tue Feb 12, 2013 12:39 am

I'm with Carter on this one. Personally, I don't let anybody touch my checking or savings accounts or any of my cards. You're an adult now and you should be able to keep your mom out of your financial life. I would understand if you were 17-18 years old and saying that your mom is in control of your finances, but you are 32? I really think, if anything you should move away from mom or at least get a separate account from another bank (or at least open one with a national credit union or something) and take control instead of letting mom decide things for you. Because it is obvious to me, that she can tread over you financially but you cannot do anything about it. Can you at least find a job in another state or something as to keep mom away from your financials? because of you don't turn around and take control she will keep doing this and running your life for you, because as it seems, you are rather incapable of running your own.

Look, I'm not trying to be a jerk or being condescending here, but please keep your mom out of your financial life and make decisions for you and not for anybody else. If she is paying your bills and stuff, I don't think you have a choice...

Also, just forget about credit for right now. Right now, focus on getting your financial affairs in order and making sure that mom or anybody else you know does not have access to them without you knowing about it. After you are able to figure that out, go to another credit-based forum, and start rebuilding your credit. It will take some time and effort on your part, but like my dad told me once "you dug yourself in a hole, now it's time to dig yourself out of one". After a few years of being patient and letting all the baddies from your report fall off, and making sure you are making on-time payments, and paying back your creditors (if you still want in with them) check your score. If you scores are decent (700+ are good, not ideal for creditors like AMEX and Chase, but still decent nonetheless.) and you have little inquires (1-3 max) and everything else looks good, you should be able to get approved. I know this sounds like it is going to take a long time, but in reality, before you know it and you learn to rebuild, your credit will be good again.

Good luck in whatever path you decide to take. Credit is all about time and being responsible and patient. If you can learn to manage those, you will be set....
Cards And Credit History
Bank Of America: BankAmeriCard Cash Rewards-4/25/12-1,000$ (CLI Increase on 6/15/13)
Citi: Forward-10/27/12-3,000$ (SP CLI 2/8/14)
Discover: More. 10/27/12-2,000 (Auto CLI 5/31/14)
Amex: PRG.- 11/24/12 (Closed 12/13/13) Amex BCE.2k-12/7/13. Amex SPG-4k.-12/8/13
Chase: Freedom-2,400-5/1/13. Southwest Rapid Rewards Plus- 3,600- 6/15/13.
Future Cards
Marriott Premier Rewards
American Airlines AAdvantage Gold
Chase Sapphire Preferred
Fidelity Amex

s.jessica
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Postby s.jessica » Tue Feb 12, 2013 9:19 pm

First off, you are not good with credit, do yourself a favor and cancel the 2 cards you have before you get yourself in trouble. Next, you will need to pay the collections, this IS money you owe and disputes just waste time. Next wait 7 years before doing anything else, by that time everything should fall off your credit reports.

kcarter609
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Postby kcarter609 » Tue Feb 12, 2013 9:47 pm

s.jessica wrote:First off, you are not good with credit, do yourself a favor and cancel the 2 cards you have before you get yourself in trouble. Next, you will need to pay the collections, this IS money you owe and disputes just waste time. Next wait 7 years before doing anything else, by that time everything should fall off your credit reports.


Ok, I would definitely NOT cancel the cards you have, I would just leave them open but don't touch them for now until you get your life on track.

Active Cards:
Chase Freedom 10+10 Visa Signature ($9k Limit - 8/2012)
Chase Sapphire Preferred ($10k Limit - 2/2013)
Chase Ink Plus ($7k Limit - 2/2013)
Discover IT ($9.5k Limit - 10/2012)
AMEX Zync (No Pre-set Limit - 1/2010)
AMEX Blue Cash Everyday ($20k Limit - 1/2013 - Backdate to 1/2010)



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