snackpack

Unique Situation

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Hi All!

 

I was a member here back in 2005-2008 and this forum, moderators and others really helped me then so, I hope you can do the same now.

 

My FICO's have been in the dumpster ever since my home went into foreclosure in 2009. In 2008, I had major health crises and underwent 5 operations and recovered for 2 years. CitiMortgage foreclosed on me in 2009 and despite having a lawyer, court appearances, requests and submissions, never evaluated me for HAMP refinance.

 

Fast forward to now, Citi sold my mortgage to another servicer in December 2013 and they reviewed me for HAMP in March 2014, I started my 3 monthly payments in June finished in August and approved late October 2014. My problem is the 120+ late's since Jan. 2009 with the most recent being September and October of 2014 when I was under review immediately after the trial payments. I really feel what Citi did by keeping my home in foreclosure for 6 years without reviewing me for refinance was criminal but that's beside the point.

 

I pulled my credit report and found a tax lien during the time Citi sold my mortgage but it has been released and I will file the correct paperwork to hopefully clear it from my report. For years, I haven't used credit other than making a car payment (24.99 APR) and I have 1- 30 day late (June 2014) due to a car accident and I wrote a goodwill letter (fingers crossed).  Right now, including my mortgage, student loan and house payment my DTI ratio is 17%. 

 

My other negatives is 1 medical collection for $276 in 2013, C/O PLTF in 2011 for my second mortgage, a redeemed repossession in 2010, 3 lines of student loans that I got out of default in 2010. That's it!

 

I did the shopping cart trick for 3 store credit lines (very low limits) and 2 Capital One cards (300 limit). I haven't received any of them and they are not on my credit report yet. But I took a lot of inquiry hits to get the credit cards (8). It seems that Capital One was the only to approve me. BOA, AMEX, BARCLAY's, and Chase all were denied. I hate taking on these new credit cards and hope it was the right decision. My finances are good so that's not a problem.

 

I need business credit because my business (I'm self employed) needs to expand. My FICO scores are 533 TU, 534 EQ, and 599 EX. It's time I come out of my shell and deal with this. Please advise, I am desperate, Thanks!

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First...this forum seldom deals with business credit.  That's a whole different world and full of traps and pitfalls of its own.

 

But...I've been there, done that, and has to declare personal BK to get out of it when my major customer defaulted on me for $250,000 years ago.  So...here's what I'd recommend.

 

First, get incorporated...C Corp, LLc, doesn't matter. Get a DUNS number.

 

Second, open BUSINESS savings and checking accounts in the name of the BUSINESS at a small local bank or credit union in your area.  Run all your BUSINESS income and expenses thru those accounts. 

 

Third, wait.  In 6 to 12 months, approach the local bank manager about either a credit card or line of credit.

 

Chances are they'll still want a personal guarantee, but they might give you the credit you need.

 

Trying to finance a business strictly on personal credit (particularly with your scores) is rough.

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Thanks for your response willing to cope, I didn't mean it to sound like I'm trying to just get business credit. I really want my personal scores to raise to raise, after this length of time I don't know how, unless it is to open up credit card accounts. I'm just going to read and study. BTW, does the BUMP still work to remove hard inquiries?

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BUMP never did work.

 

Advice still holds.  Avoid "secured" credit cards, they don't help.  Store cards don't help (unless you need them to buy supplies for your business).

 

Best bet is to build up a working relationship (i.e., cash flowing in and out) with a local bank or credit union.  Get a debit card on your checking account.

 

You're going to need 6 months to a year of good cash flow to bring your actual FICO scores above 600.

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Willing, BUMP did work but only for TU and EQ.  The downside now is than many who had TC to bump TU inqs got permanently banned from all TU products....then EQ got wise and started "chopping" excess softs so that hards wouldn't bump.  For the most part, today it is a waste of time and effort for 3 - 6 points.

 

OP, to get your personal scores up you are going to need some revolving accts that are positive...about 2 or 3.  Do you have the possibility of getting a Navy acct?  DH with scores in the crapper got approved over the weekend for $2K CC! 

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I just qualified for Quicksilver and Cap 1 Platinum card but only have 300 for a credit limit. I also did the shopping cart and got 3 store cards.

 

Another question??? I noticed my balance on my mortgage was 217,000 but my high credit limit is only 157,000. How can this be when I was just approved for HAMP at 217,000? This puts my debt to credit ratio at 139% which is killing me score wise.

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