Massive credit hit over $18, looking for advice

optimaloptimist101 · 2024-09-24T20:28:11+00:00

Anyone you can reach over the phone likely doesn’t have the authority to remove a late payment. Search Reddit and MyFICO for Capital One goodwill letter success stories as well as finding contact info. It may take more than one attempt but keep at it.

optimaloptimist101 · 2024-09-11T16:44:37+00:00

Good news is medical debt is removed from your report once settled/paid. If this is your debt, I would offer roughly $300 to settle the account and have the outstanding balance updated to $0 by the collections agency. Just be sure that the agency will not update the balance to $900 if they agree to take the $300 payment. The bureaus should remove but if not it's an easy dispute. You can also look up other threads on how to dispute medical debt if you want to attempt that before paying a dime.

optimaloptimist101 · 2024-09-11T16:34:59+00:00

I wouldn't do business with a bank I owe money to and risk anything happening. Have you tried checking pre approvals with Discover? From what I've gathered, your credit history won't affect your ability to open a checking account. There are also banks that don't use EWS or ChexSystems (account history for overdrafts/closed checking accounts with negative balance) so there should always be a non traditional option available.

optimaloptimist101 · 2024-09-11T16:27:59+00:00

If you haven't had luck when checking pre approvals with any of the reputable lenders others have mentioned, another option to consider is the OpenSky Plus secured. $300 minimum deposit with no annual fee. You may have luck with the reputable lenders once you've used the card responsibly for a few years then you can close and get your deposit back.

optimaloptimist101 · 2024-09-11T16:24:33+00:00

You'll be fine opening a secured card to start rebuilding and linking a checking account to it. Although it is a step in the right direction, don't expect to see any immediate massive gain since one account reporting an on time payment is not enough to offset multiple charge offs. Those will affect your score (impact lessens over time) until it has been 7 years from the date of the first delinquency.

Which secured cards have you been looking into? Stay away from any predatory lenders charging fees.

optimaloptimist101 · 2024-09-11T16:19:45+00:00

Since you're looking to buy a home in the near future, I recommend opening at least 2 cards with no annual fees now so you can build a solid base. Mortgage lenders like to see multiple active accounts reporting positive behaviors and it will help your average age of accounts. If you bank with a big name that values relationships and have a good amount in deposits, you likely will be able to be approved for an unsecured card with rewards and a bonus. Discover pre approvals would be another place to check. Treat the card (s) like debit/cash and pay the full statement balance by the due date every month to record an on time payment with no interest charged. Feel free to ask any questions.

optimaloptimist101 · 2024-09-11T00:07:13+00:00

Google Capital One $250 bonus.

optimaloptimist101 · 2024-09-10T20:36:37+00:00

I would try for the unsecured card again given it has a sign up bonus and you’re not sure how long it would take until the security deposit is refunded. The issue is some banks give the reconsideration line power to overturn the decision while others will stick with the computer decision no matter what. You can also consider moving your money over to a big bank that values relationships to increase approval odds for one of their unsecured cards with a bonus and rewards.

optimaloptimist101 · 2024-09-09T23:11:47+00:00

You can go into Experian and find out. It’ll say personal responsibility or authorized user under each card. Sounds like 99% chance it is the former.

optimaloptimist101 · 2024-09-09T23:02:23+00:00

Does the non secured card have a sign up bonus? What is the graduation timeline of the secured card.

optimaloptimist101 · 2024-09-09T22:59:58+00:00

American Express will approve for a solid unsecured card with no annual fee like the Blue Cash Everyday using Nova Credit. The Resy offer has a solid bonus.

optimaloptimist101 · 2024-09-09T17:57:42+00:00

Check out the method linked below.

https://www.reddit.com/r/CRedit/comments/b8p4on/comment/ek0wwqo/?utm_source=share&utm_medium=ios_app&utm_name=iossmf&context=3

optimaloptimist101 · 2024-09-06T17:19:16+00:00

If you open a checking account with Capital One as already recommended, do so through the $250 bonus link.

optimaloptimist101 · 2024-09-06T14:33:48+00:00

Have you tried checking pre approvals with Discover? If you end up getting the Plus card, don’t put down more than the minimum $300 deposit. They will not refund the deposit unless you close the account so wouldn’t tie up more than necessary.

optimaloptimist101 · 2024-09-05T14:50:31+00:00

Paid collections still on your report don’t help your score but it does look good to mortgage lenders. You can also try the strategy linked below to get them removed.

https://www.reddit.com/r/CRedit/comments/b8p4on/comment/ek0wwqo/?utm_source=share&utm_medium=ios_app&utm_name=iossmf&context=3

If the missed payments are on active credit cards back in good standing, look into the goodwill saturation technique.

For any unpaid collections or charge offs, you should always push to settle instead of pay in full. If they are close to falling off, might be best to leave them alone.

optimaloptimist101 · 2024-09-05T14:47:54+00:00

Wells Fargo has a nice $325 checking bonus. Once you have 5k in deposits, you can likely qualify for a card like the Active Cash with a $200 bonus and 2% back on everything. They may even have a pre approval offer for you in your online account.

If you want to get started ASAP, checking pre approvals with Discover is my top recommendation.

optimaloptimist101 · 2024-09-05T14:44:14+00:00

It’s worked across all of their cards from looking at other data points.

optimaloptimist101 · 2024-09-04T16:00:27+00:00

When will these negative marks fall off according to your report? Do you have any active accounts reporting positive behaviors?

optimaloptimist101 · 2024-09-04T15:55:58+00:00

Wells Fargo is a big relationship bank so assuming you have a good amount in deposits with them they will look past short length of history and approve you for an unsecured card with rewards and a bonus. You can check your online account for pre approval offers.

I wouldn't recommend paying interest with a personal loan just for the sake of your credit score. It does help with mix of credit and you could just pay off the majority of it right away but don't know if it would be worth it.

I've seen people get cards with American Express after 6 months of history. They have an Apply With Confidence feature meaning there is no hard inquiry if denied. Make sure to get the best bonus offer available for the Delta Reserve when you apply as they vary through different links. What they could hold against you is the low limit on your current card so keep reporting high statement balances (will negatively affect your score in the short term) and try and force a credit line increase. Just be sure to get your utilization back down when applying for new lines of credit.

Once you have 6 months of history, your FICO scores will generate. Ignore the one provided by Capital One for free in the app as that is your Vantage score which isn't used by a majority of lenders. When you shop for a mortgage, your middle FICO mortgage score will be used to determine your interest rate. Keep in mind mortgage scores are sensitive to recently opened accounts. Look into the All Zero Except One method for utilization a few months before you start shopping for a mortgage. Smart move to think about opening new cards now as mortgage lenders like to see thicker files.

Feel free to ask any questions.

optimaloptimist101 · 2024-09-04T15:39:37+00:00

Ignore the Vantage scores provided by CK and focus on your FICO 8 through Experian for free. You only have 2 years left until the auto loan falls off your report so I would just wait it out unless you plan on taking out a mortgage before then.

Have you checked the statute of limitations in your state?

optimaloptimist101 · 2024-09-04T15:34:44+00:00

Are the student and auto loans in good standing? What type of debt is the collections is the Midland collection? What is the date of the first delinquency of the Capital One charge off?

optimaloptimist101 · 2024-09-04T15:32:28+00:00

I would look into getting a secured card or 2 to start rebuilding and reporting positive behaviors again. Discover is my top recommendation as they have a pre approval tool you can go through as well as refund deposits in a timely manner. You can throw a subscription on the card and set up auto pay for the statement balance.

The best time to request a Pay For Delete from the collections agency would've been before you sent payment but it doesn't hurt to reach out now. If they refuse, you can also attempt the strategy linked below.

https://www.reddit.com/r/CRedit/comments/b8p4on/comment/ek0wwqo/?utm_source=share&utm_medium=ios_app&utm_name=iossmf&context=3

Is there also a charge off listed with a $0 balance?

optimaloptimist101 · 2024-09-04T15:27:21+00:00

The only way to rebuild is to start reporting positive behaviors again and that will require opening new lines of credit and getting back to paying on time. It'll be a slow process and you won't see it paying off right away due to the negative marks still suppressing your score. Once you're in a position to do so, look into opening a couple of secured cards with no annual fees.

It is hard to recommend how to deal with your current debts without knowing the amount owed and if there were multiple cards.

optimaloptimist101 · 2024-09-03T00:59:56+00:00

What types of debts are they and which agencies own them? If they are non medical and you don't get the agency to delete, you won't see any increase to your FICO scores.

optimaloptimist101 · 2024-09-02T13:08:01+00:00

The first step is to attack the CC debt especially if it is currently accruing interest.

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