Credit Restoration Planning

Discussion in 'Credit Talk' started by Jim, May 28, 2001.

  1. Jim

    Jim Well-Known Member

    A while ago, someone on the board posted that he/she had a detailed plan to build credit. I remember being impressed with this idea. Recently, PSUgirl listed some creative plans for the year.

    I am 27 months post BK discharge. Therefore my credit plans are different than someone with excellent credit. This year, 2001, I will make 114 on-time credit account payments. I could have made 120 payment but I am deliberately letting my Cap One, Macy's and Robinsons accounts rest for respectively 2 months each during the year.

    In 2002, there is no foreseeable incentive to let any of my existing 11 accounts rest during the year. Therefore, 132 (12x11) on-time payments will be made.

    In 2003, I will be house hunting. So I may trim my credit accounts a little to fit the FICO score model that maximizes points. I plan to make relatively less credit purchases and my auto loan will be paid off.

    In January I joined 2 additional credit unions. I now belong to 5. I will start my mortgage shopping in 2003 with the C/U's.

    I hope this did not bore anyone to death. I just think it is worthwhile to have a plan.
  2. DaveLV

    DaveLV Well-Known Member

    I was thinking about joining the second credit union I am eligible for but that would give me a total of three bank accounts, and I didn't think I could keep enough money in each account and show enough positive activity to make the third account worthwhile.

    What are your plans in that regard?
  3. Jim

    Jim Well-Known Member

    Hi Dave!

    I have a checking account and savings account and visa at 1 credit union.

    At a second C/U, I have a savings account and visa. I did a secured 12 month loan a while back to build credit. It has been discussed on the board.

    I have a savings account at each of the other 3 credit unions. No other activity.

    I pay no fees at any of the 5 credit unions. The 2 visa cards are unsecured and have a fixed 13.9% apr. I use them every month. I have the ability to apply for additional visa cards and loans at all 5 C/U's.

    All 5 C/U's have mortgage money with very few fees. The year 2003 is not really that far away.

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