What's is my best plan of acti

Discussion in 'Credit Talk' started by Kirk, Sep 20, 2000.

  1. Kirk

    Kirk Guest

    Hi there. First off thanks to everyone of this board for the great advice. I am trying to rehab my credit ratings and it's coming along slowly but surely. I have been using Lexington to help clean up the reports and they've been great. I have stayed away from all credit cards for the last couple of years but now realize that I need to get a couple to help with the rebuilding process. Here's my situation:

    Filed chpt. 7 BK: 8+ years ago
    Salary: $130,000.00/yr. (avg. for last 3 yrs)
    Been in same line of work for 8 yrs, at same company for 2.5.
    Lived in same place for 2.5 yrs (rent)

    My current CR shows folling:
    In collections: 1 (though it isn't and is being removed by creditor)
    Public Records: 1 (BK)
    Current accts w/ neg: 4 (3 of these are incorrect, I'm a JR., and also being removed by creditor)
    Account ever w/ neg: 1 (don't understand that considering the 3 current it shows)

    Showing the following past dues (ever):
    Less than 1 year:
    30 day: 2
    60 day: 1
    90 day: 1

    Over 1 year:
    90 day: 1

    12 inquiies in the last year (8 within 1 month span while car shopping!)
    2 of those in last 6 months.

    Only charge card I currently carry is a Sears car that I've had since '91 with $6900 limit and $0 balance

    This is all from my TransUnion report. Still waiting for updated Equifax and Experian.

    Based on all this. Where should I go from here? Personal secured loan from bank? Secured card (if so sugggestions would be great)? Unsecured (if even possible)? Any help from the experts here would be greatly appreciated. Again thank for all the help/advice and take care.

  2. Michael

    Michael Guest

    RE: What's is my best plan of

    I would try possibly getting the Aria Card, since you do have 1 credit line reporting you should get it, apply on line and let us know!

    If that doesn't work why not get a FCNB Secured and more M/C? With your income you should be able to put 2-3K in a deposit and get a good line of credit 25% more than your deposit. $3200 would give you $4K credit!

    Any amount though would be reported and your card would be coming unsecured about when the BK falls of your C.B.

    After that with your Sears, and either Aria or FCNB I would think you could easily get some prime cards. And again I will point out with your income Discover would be great as it would give you at least 10K credit and offer a increase of 5K to transfer!

    After that AMEX which will match the credit of Discover!

    Good Luck sounds like your about to see the end of that tunnel!
  3. Chet

    Chet Well-Known Member

    RE: What's is my best plan of

    I too filed Chapter 7 bankruptcy 8+ years ago but only make half of what you make in a year. Your income will be a big advantage in your credit rebuilding. You need to get more positive trade lines on your credit reports. Try applying for credit cards at Capital One and Providian (they have secured and unsecured cards and report to the CRA's).

    You mentioned that you have some recent past due accounts that are not yours (that's the way I understood your post)

    - if they are not yours, have them removed,
    the credit bureaus will have to prove their
    yours and if not they will be removed.

    - if they are yours, you need to make a very
    conscious effort to pay your bills ontime

    If you do have current bills that are late and showing on your credit report, it is going to be tough sleding for you because you had the past chapter 7 and it will look like you still can't get you act together and pay your bills ontime.

    You mentioned that you were shopping for a car, did you buy one?
    If not, then buy a car and pay ontime.

    You need some positive trade lines on your credit report which will start you on your way to rebuilding. It all sort of snowballs from there!

    good luck
  4. RichGuy

    RichGuy Guest

    RE: What's is my best plan of

    Michael's characteristic advice fits your situation very well. You have the huge advantage of that high income.

    It was unclear whether your delinquencies are safely in the past, like 2 or 3 years old. If not, you may need a secured card to add an extra trade line. If they are, you could get Capital One unsecured as well as the already mentioned FCNB and Aria.
  5. Kirk

    Kirk Guest

    RE: What's is my best plan of

    Thanks for the advice. Of my 4 delinquencies here's how they break down...

    30 Days Late:

    60 Days Late:

    90 Days Late:

    All of the above late pays are on the same account (thought the account was paid off, didn't find out that it wasn't until July of last year when I started getting serious about fixing my credit and get a CR. All those stupid late pays showing up for a $78 balance!!)

    The only other late delinquency showing is a separate account that shows 90 Days late on 1/1/95. This account is one that I am challenging.

    Hope this helps. Again thank you all for taking the time to respond.

  6. Michael

    Michael Guest

    RE: What's is my best plan of

    I advised 1-2 other trade lines to get started to good prime credit.

    However what Chet states needs to be taken with this knowledge.

    Creditors such as Sears will often evaluate your credit history and deny you if too much of your credit is too recient, don't go overboard at first applying for lot's.

    So for example if you get the Aria, and FCNB M/C then you have 3 strong references on your credit report, 2 are recient but 1 is established, no problem.

    Don't however get 6-7 different card (even gas & Dept. Store cards) because then you have 1 established and 6 new accounts and that will get you denied.

    Set your sights on a goal and stay with it.
    Only take great offers,not the $200.00 Texaco preapproved ones!

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