The Secured Solution

What do I do??? 

About 3 years ago, my husband and I decided that we wanted to fix our credit report, and logically, at tax-return time we paid off all accounts that were in collections. 

We thought that this would help us, but our credit report seems to have stayed stagnant. 

We got a mortagage since (in 2006) at a decent rate, but only after much shopping (we wanted fixed rate). The mortgage isn’t even helping our FICO. 

All of our accounts that we paid off state Charge off in current status, and Paid charge-off in comments. 

We currently have NO credit cards, no auto loans, and we pay our student loans on time.  We recently tried to get a credit card (hoping to raise our FICO), but were denied. 

What can we do to raise our credit score?  How can we get the creidt that we need to get in order to raise our FICO so that we can get credit?

Thanks,
Pam

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Hi Pam,

Goodwill letter the paid charge-offs and open three secured credit cards.  A credit limit of $300 each is fine.  

Keep in mind that some outfits offer ‘secured credit cards’ that don’t report to the big three CRAs – obviously, that would not be a benefit.  Last I checked, Bank of America, Fifth Third, and Colonial Bank offered decent deals on secured credit cards. 

Once the cards are open, charge them in the first month and then pay them off entirely.  In six months time, your score will be wonderfully improved.

Thanks for the questions and hope this helps.

Paul

P.S. Please report back in six months so that we can add to this post.  The Broken Credit Blog becomes a lonely place otherwise.