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r6yamy

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Suggestions for reestablishing credit and opening a new line of credit
I had a delinquent account with Sony/GE Money that started in 2011. At that time, I was in school with no job. I finally paid it off with a collection agency in 2012, which I recently found out wasn't removed from my credit report until Dec 2013. So now that it's removed, do companies still see it when they make inquiries to my account? I'm just not understanding how this works in relation to the 7 year rule.

I finally have a stable job now, but I'm not making a lot. And I have upcoming vet bills that would cause me financial hardship to pay upfront. So I am considering a credit account with Carecredit/GE Money. Will they even consider me, despite my past history with them? Does GE Money and other credit card giants keep track of information like that between its smaller companies? Should I bother with them? Anyone have alternative ideas?

Besides that, I also have a pretty high debt to credit ratio on my 2 cards, but I've been paying them on time for the past 2 years. Right now, I'm at 656 because of my credit cards and student loans. Do you have any suggestions on how to handle this better so I can improve my credit? I.e. like debt consolidation, opening another type of credit. Thank you for your help.

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656 isn't terrible. It would be hit or miss with care credit though. I was in your situation a few years ago with enormous vet bills and a similar credit score. I got approved for Care Credit. But since you have that past history with them, I'm not sure how that will play out.

With that score, you should be able to open an unsecured credit card, but the APR will be high, so try and keep the balance low.

The 7 year rule is, even though you pay a delinquent balance, your credit report will show it as paid, but it will also show it as having been delinquent in the past. The delinquency mark will fall off after 7 years. Because it's not currently delinquent, it'll help your score, but the delinquency itself will be a black mark for 7 years.

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