Jump to content

Taking the next step with credit repair


Recommended Posts

Hello all!


Thanks in advance for any help.  It's nice to find a public place like this to seek advice.


I am curious how to best go about taking the next step in repairing my credit.  Four years ago I went through a period of financial difficulty after closing my own business.  I managed to settle a $2000 charge off with my debt collector thinking I was doing the right thing for my record.  I now have this sizable black mark on my report I have been struggling to get out from under.


I've had the good fortune in the ensuing years of learning a lot and becoming very gainfully employed.  I opened a secured credit card with capital one and paid faithfully in the hopes of restoring my credit.  I've now had this account in good standing for two years.  Over the past year I've managed to raise my rating by 100 points by maintaing this account very carefully.  If relevant, before the charge off four years ago I also had an auto loan paid in full over 3 years with no late payments.


What's frustrating is I still seem to be unable to earn the trust of new creditors.  I must admit that I'm a little sore that even my own bank, which can see my regular bi-weekly direct deposits, seems unwilling to extend even a higher interest card to help me establish more of a credit history.  I have stressed to them in person that my desire to open an account is only to continue my efforts rehabilitating my credit, and I maintain a sizable deposit with said bank.  Is this a common thing, to have present income and credit worthiness completely ignored in favor of older events?  I ask because I am trying to determine if I have good cause to take my deposits elsewhere.


What's more, I'd rather keep my good progress with my credit score and avoid further hits from hard inquiries if I'm just going to get denied in the future anyway.  Would it make sense to wait for the older negative events to become even staler before applying for newer accounts?  I was under the impression that adding to ones credit history is a good thing after restoring some good standing, but I could be mistaken.  Has anyone encountered a similar situation?




Link to comment
Share on other sites

Would it be possible for you to get a sizable chunk of money and split it in getting 2-3 additional secured credit cards? Your score would probably dip a little because of the decrease in average account age but it would probably offset and start to increase after a couple of timely payments. You're getting the benefit of adding multiple accounts & getting positive payment history reported which should help your credit worthiness to creditors. In order to add some positive reporting to my credit, I got a Fingerhut card (very easy to obtain) and used it to only buy socks & underwear (overly priced though) and made small payments over time. I initially started with $300 credit from them and within 6 months they increased to $1,000 and right now I'm at $1,500 and I've only had the card for a year. 

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.