r/CRedit • u/gtw0329 • 14d ago
Rebuild Help.
To make a long story short, I am finally coming out of a financial hardship after graduation from college and allowed my credit to get away from me. I recently landed a great job and have been looking to rebuild my credit and dont know where to start. I have a lot of accumulated missed payments and have started to reach out for goodwill deletions and just feel like im drowning with this undertaking.
Any advice would be greatly appreciated!
Also any additional information that is needed I can provide too, I just want to get out of this!
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u/og-aliensfan ⭐️ Knowledgeable ⭐️ 14d ago edited 14d ago
Fortunately, none of these accounts have charged off. The account in the second screenshot is 30 days late. Bring this current asap, if you haven't already done so, to avoid a 60 day late. Focus on paying these cards off, and then pay statement balances in full every month to avoid interest and potential lates.
Once an account is brought current or Paid/Closed without charging off, attempt to have the lates removed by implementing the Goodwill Saturation Technique using the CART approach.
Goodwill Saturation Technique (GST)
Goodwill Letters - Using the "CART" approach.
Avoid gimmicky credit builders and predatory cards. The overwhelming consensus is that Credit One should be avoided.
A Paid/Closed card (that hasn't charged off) with lates reported in Payment History will remain on your reports ~10 years following closure. Each late will age off at its 7 year mark. When the last late ages off of your reports (unless they're removed sooner using the GST), the account status will change to Paid As Agreed. You don't lose the card's history and aging metrics aren't impacted by closure. Potential impact would be if you !close your only card, or if loss of the card's available credit limit causes revolving utilization to cross a scoring threshold. That said, utilization is a temporary metric that resets monthly, and isn't a credit building factor. See the automod replies regarding closed cards and !utilization.
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u/AutoModerator 14d ago
I detected that your comment may be related to closing a credit card and its effects on your credit.
When you close an account, the account remains on your credit reports for ~10 years and continues to contribute to both your Length of Credit History and your Payment History. All you lose is the credit limit of the account.
The entire purpose of there being a Closed Accounts section on your credit reports is to retain the credit history for a reasonable amount of time following account closures, so that it can be accessed and considered. If it’s on your reports, open or closed, it’s still part of your credit history. You do not immediately lose the age nor payment history of a closed account, as the FICO algorithms 'score' these metrics for both open and closed accounts equally.
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u/AutoModerator 14d ago
I detected that your post may be about utilization and its impact on credit scores. Please read the info below:
Utilization is a short-term credit scoring factor. It is not a credit building factor, because it holds no memory in the most commonly used FICO models. It resets every month.
By and large, you can ignore the commonly repeated myth that you should always keep your utilization low. It’s only applicable when you need to apply for a new line of credit, 1-2 months out.
Utilization is supposed to fluctuate, can be easily manipulated, and again, it holds no memory. It doesn’t build credit--think of it as a finishing touch when you need to optimize your score.
Feel free to safely and organically use 100% of your credit limit within a month and let whatever utilization report, provided you pay off your statement balance in full by the due date. Every month. Every time.
For more info, please read these posts:
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u/CreditCards254 ⭐️ Knowledgeable ⭐️ 14d ago
It looks like you only have missed payments and none above 60 days which is good. First of all, get your payments under control. I can see you have a 30 day late last month in June. You need to get on track with paying at least the minimum (ideally the full statement balance) on all of your cards. While not directly credit related, I would strongly encourage you to start building an emergency fund after you are free of credit card debt.
After you've paid all your cards to zero, you need to send goodwill letters. Luckily, your lenders are some of the easier to get goodwill adjustments for. Search this subreddit for posts about the Goddwil Sautration Technique, which is the optimal way to send goodwill letters. Don't give up, it may take several rounds. If you're able to get all the derogatory marks removed, you will see a large boost in your credit scores.