What's the road to credit repair?

I need to walk it, so I can up my scores.

I do not have any open credit accounts. I am paying off collection accounts from the credit cards - 1 in full each month.

If you have a timeline to up your credit score by, I would rather pay down several cards below 50% of the credit limit rather than pay each card in full one by one.

For all the credit info, I found this site to be helpful:

Thanks. There’s nothing to pay down. I do not have any open credit. They are all collection accounts.

Check out www.creditboards.com

There is a ton of stuff that will help you there.

Closing tradelines hurts your credit. Even if you do not want to use a credit line again, don’t close it.

Pick-up some secured credit cards…make sure that they report to atleast two of the credit reporting companies. Use these secured credit cards to pay your collections.

That should be a good start to credit repair.

I did not close the accounts. They were closed by the credit grantor.

I spent about $15 on a few books about credit repair and keep them close to me at all times.

I paid down my highest-interest account first and worked my way down the line. As my overall debt went down, my credit scores creeped up.

During that period of time (about 18 months ago), I took a calculated risk and applied for a secured credit card and began using it, paying it, using it, etc. Some analysts would’ve disagreed with putting cash into a secured account that could’ve been used to pay off a debt, but I had to start the rebuilding as quickly as possible.

A year later, I applied for another secured card and have been using it as well. Sure, having the $1000 tied up might seem like a bad idea, but because of my line of work, it’s imperative that I have solid credit.

The first card has now been ‘graduated’ to unsecured status and they’re sending my money back. My overall score is barely average (672), but it’s a LOT better than it was a year ago (mid 5s).

So, being committed to getting out of debt and making timely payments will pay dividends. Good luck.

Which secured card did you go with? I don’t have the high interest rate gig. All of my cards are closed and in collections.

Go with a Providian or Capital One secured credit cards… they’ll get you established with tradelines.

Once when you establish a credit with these two cards or any other… ask for an increase in your credit limit… that should boost up your FICO at least 20 points.

Good Luck,

I went with Wells Fargo first, as they were one of the banks that ‘claimed’ they did not report that it was a ‘secured’ card. It’s a real credit card now, though, so I’m not complaining.

I later got one with Navy Federal Credit Union.

I just applied for an unsecured Chase card. Their ‘pre-approved’ offer came with an 8.99% APR, so I decided to see if they’d grant me any credit at all. Even if it’s a low limit card, that’ll still be moving me in the right direction.

One caveat about Providian - they can be difficult to pay off if you’re looking to close down an account. I paid my account to $0 and then moved a few weeks later. Apparently, there was a small balance remaining and it ballooned to over $100 in the next couple of months. During the time I was asking for a reprieve, etc., it kept growing. Next thing I knew, I owed $385!! I don’t know if they still behave that way, but if they do, let this be a reminder to make sure you keep in touch with them all the time.