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Msadler626

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I have paid off my debt and trying to get a cc.
I have paid off all but one account that is in collections (i had 5, 4 are paid off) I ordered my annual credit report, and monitor my score here on credit karma. the 5th collections account will be paid off this year. I shipped out a letter requesting an investigation on the 4 accounts (id rather have a fresh start [not bankruptcy], than time in as these are preventing me from doing anything.) Once they start the investigation, from my understanding the 4 accounts probably wont respond, and if they dont they will be removed from my credit report. at that point, i will only have 1 delinquent account (untill i pay this off) will that raise my credit score or lower it? also--i have a line of credit through ginnys (similar to fingerhut) and I always make my payment on time. and have for almost a year now. so removing those, but having the ginny's account will that help or hurt more?

My overall plan as of now is :

1. Pay off collections accounts
2. Get them off my Credit report
3. Get a credit card
4. use a small amount and pay it off (like put 25 on it and then pay it off once a week)

is this a good plan?

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Try a Secured card

I know this post is old, but if I found it, others may too. 

No one wants to do it, I know, but really a Secure card gives you a big jump. Its basically like paying for a credit score improvement. The more you put down, the higher your score goes. Paying off the old debts didn't help me much. Getting my school loans consolidated hurt me at first (new credit line hits it a couple points) then helped my score after the first 3 months

I started off with a secured wellsfargo card. It did help my credit score by about 20 points, but they never ever graduated, even when I got thousands dollars cards unsecured from other companies. I would steer clear of cards that don't graduate.

Discover secured card was phenomenal. I got cash back that i just put towards the bill and exactly at one year, it graduated to unsecured and they mailed me a card.

Capital one was the first unsecured card to approve me. They were also my next 2 unsecured cards to approve me. Bupower card, then platinum, then quicksilver card. 

My approach was this: 

1. Secured card ($200-500)

2. Fingerhut or other store card. Buy one sale item or free shipping item, pay it off, buy nothing more for 3 months and they'll raise your available credit. Your score goes up from that.

3. Secured card #2 ($200-500)

4. wait. NEVER have a balance more than 30% on any card. Pretend the money doesn't exist.

5. Another type of credit for diversified account types. (I chose to consolidate my school loan to get rid of a history of late payments with the original lender and get a better interest rate). I also considered a personal loan at a credit union. 

6. Unsecured Card ($200-500)

7. Another type of credit (I went for an auto loan for a used car. it was $6k and i went through capital one.)

This is how I went up from 568 to 675 in one year. Its not great, but its a hell of a start. It then became really easy to get balance increases I never paid off an old debt because I did that about 4 years ago and my credit score only went up about 11 points, and immediately went back down. Once its a few years old, creditors don't really look at it the same as a fresh delinquency anywys. 

Also ~BEWARE of CreditOne card offers. Many times, they ask you for like $100 a year and %25 interest. it is a black hole meant to trap you completely!

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