My First Step to Rebuilding Credit.

My First Step to Rebuilding Credit.My First Step to Rebuilding Credit.
PhilipWen asked 3 years ago

It’s good to know that others are in a very similar boat I’m rowing, being able to read other stories of success and determination has been a great positive reinforcement to get myself on the right track. I’m going to do the same for myself and to possibly give other’s hope too.  I figure making my goals and steps public will give me an open door to advice!

 

Day one pulled my Credit Report and Fico Scores and here is where I stand:

EQ: 612, TU: 622, EX: 592

 

Revolving Accounts:

Capital One CC- Opened 4/15, Limit: $ 4000, Balance: $ 1949, Status: Pays account as agreed/Good Standing

Synch- Opened 2/09, Limit: $ 6500, Balance: $ 0, Status: Pays account as agreed/Good Standing

RC Willey- Opened 3/08, Limit: $ 2000, Balance: $ 599, Status: Pays account as agreed/Good Standing

Capital One CC- Opened 12/04, Limit: $ 500, Balance: $ 0, Status: Pays account as agreed/Good Standing

Wells Fargo CC- Opened 6/06, Limit: $ 5,000, Balance: $ 5,280, Status: Charge-off/Charged off as bad debt

Bank Of America- Opened 4/06, Limit: $ 5,500, Balance:  $ 4,035 Status: Charge-off/Charged off as bad debt

 

Installment Loans:

Wells Fargo EFS- Opened 12/11, Balance $ 4,160, Status: Pays account as agreed/Good Standing

Auto Loan/Alpine Credit Union- Opened 4/11, Balance $ 614, Status: Pays account as agreed/Good Standing

Fed Loan Servicing- Opened 1/11, Balance $ 0, Status: Pays account as agreed/Paid or Paying as agreed/Was delinquent 180 days or more past due date.

Wells Fargo EFS- Opened 6/10, Balance $ 6,933, Status: Charge-off, Charged off as bad debt

 

The biggest reason for my “baddies” simply stated would be that I was uneducated and too care free to really grasp how much of a financial responsibility I was taking on vs. what I could handle. If only I could go back 10 years ago and slap myself some sense, I would!   But, here’s what I have done so far and my plan I have set for myself.

 

Step One(today):

I called Wells Fargo about my CC balance of $ 5,280 and set up a monthly payment plan.

I called Bank Of America to do the same with the $ 4,035 balance, they had already sold it to a third party but once I was connected with them I also set up a monthly payment plan.

I paid off the remaining balance on my RC Willey account. So I am interested to see how that will reflect on my score.

At this time my finances are streched too thin and I wasn’t able to contact Wells Fargo on behalf of my Charged Off Student Loan Account yet.

 

Going Forward(goals):

I have gathered my tax info and whatever amount I get back (if any) will go straight to the balance of Bank of America.

I will put myself in “financial bootcamp” as I’m calling it my plan is to pay off my two revolving accounts in bad status first, then tackle my bad standing Student Loan balance with Wells Fargo.

 

 

After much of my reading and playing with the myFICO Simulator it seems as though my best bet is to simply make monthly payments and knock down my utilization. Sorry for the essay, any feedback is more than welcome and appreciated, even just validation that I’m not completely wrong in my plan of action would be good to!

Thanks.

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