Credit Tips: Tips to Help Improve Bad Credit

Posted On: August 1, 2006

Author: katysamommy
Posted: Tue Aug 01, 2006 4:02 pm
Post subject: Bad credit help needed

Hi all,

I am a newbie here, and am desperate to fix my credit. 5 1/2 years ago, I met a guy, and ‘checked out’ mentally from everything. Seriously. I made no credit card payments, walked away from my school loans, I was a complete idiot, and am the first to admit it. So, I’ve grown up. Learned the error of my ways, and am trying to rebuild. So, I got a couple subprime crappo cards to start with, cause my credit was in the toilet and I wanted to start somewhere. I’ve have them both for a year, and have faithfully made every payment on time. My utilization amount is low currently… I also contacted the school loan repayment people and am in rehab for that. As of Feb, 2007 I will be out of rehab, and that big black mark will be off my credit report…. So, I am being honest and stepping up and trying to fix, but it is taking time.

Well, at the 1-year mark, my buddies at Orchard Bank ran my credit report. And since I had a derogatory on there, they bumped my APR to the max default APR which is almost 30%! And of course, I also pay a $59 annual payment as well. I have NEVER BEEN LATE, NEVER went over my limit. I have been the PERFECT customer. I tried to call and ask what the ***** happened. And I asked if there was anything they could do. They were like, No, have a nice day. I know my credit is still in the toilet. Till the student loan thing comes out of default and some of the old junk falls off, I am at their mercy. But am I really? If I call and tell them to cancel the account, will they call my bluff and say ‘ok, we’re cancelling it.’ I want to have them reporting on my credit report cause it is positive credit, but I’m getting screwed… Does anyone have any advice for me? I don’t want to close an account that I can use and have report as a longer term account…

Oh, and burying my head in shame even more… I tried to apply for a BOA Secured card… and I got rejected! I didn’t know they’d do that. It’s got to be my student loan, cause I defaulted on a federal loan… so I’m even afraid to apply for a secured card!

Author: fire3000
Posted: Tue Aug 01, 2006 9:04 pm
Post subject: Tips to Help Improve Bad Credit

Try joining a local credit union that issues cards because they are usually more lenient than the major banks. Avoid paying interest on the Orchard by paying your balance in full each month. Read the posts at creditboards.com to learn how to delete some of your negative items from your reports. Apply for a few merchant cards to build some credit history.

Author: hdporter
Posted: Tue Aug 01, 2006 10:04 pm
Post subject: Tips to Help Improve Bad Credit

As someone who’s been in your shoes — ok, maybe a guy wasn’t involved — I have a lot of empathy for your situation and wish you well as you dig out into better credit days. I’ll commend you for getting a handle on your student loans and going on a rehab plan that will quickly put that headache behind you.

For the time being the best remedy for your situation is to carry as small a balance on your Orchard account. You suggest low utilization, so hopefully the penalty rate won’t be a killer in the interim.

Keep your nose clean and wait out the rehab on the student loans. Once the past adverse info for those accounts has been cleared from your credit reports has been cleared, a year’s + positive credit history should put you in good stead for a decent substitute for your sub-prime cards.

In the meantime, consider the credit union suggestion. I’ve been a member of one for 24 years now and it’s served me well. They’re in a much stronger position to give any credit application much closer consideration and take into account your circumstances and your likely credit worthiness going forward.