Journey to my Credit Repair

Hi...My name is Misty and I am just starting the process of repairing my credit. Now I've heard that using a credit counseling service doesn't look good on your credit so I'm attempting to do this on my own through research on the internet and speaking with financial institutions and creditors.


My credit score is very low due to a terrible marriage we won't mention. But regardless, my score is only 469. Can't do much with a score like this. I have tried applying for store cards like Target and Old Navy and have been denied. I do have recent reportings from medical bills but have worked very hard to pay my car payments on time for the last sixth months or so.



Two weeks ago, I received a letter in the mail from Orchard Bank telling me I was pre-approved for thier credit card. I applied and to my amazement was approved. I have a terrible interest rate and only a $300 limit but believe me this is a blessing. I know from talking to banks and creditors that the first step to repairing is building.


Tips on Credit Card Usuage: Never charge more than you can pay back in less than 30 days. The trick, I'm told, is to make monthly charges every month, and pay off the full balance within 30 days. You will avoid interest charges and build your credit at the same time so this is where my journey begins.


Feeling motivated, Last Weekend, I took a big step and tried to finance a new or used car and got denied. This is when it hit home how terrible my score really is. I've never had a repossession or bankruptcy but have been very late on some bills and almost had my car repossessed once in late 2005. This is how I found out my score.


We still got the car, just without my name. My fiance on the other hand has no credit. He's 22 and has never taken out any loans and is commonly referred to as a ghost in the credit world. No score at all. He got approved for the car as a first time buyer. So we are going to build his credit as well.


He's also a member of a credit union who advised him to pay on the car for sixth months and then apply to refinance the car and obtain a better interest rate. Right now his interest rate is 17%, over $5,000 in interest charges alone.


They also told him that we can obtain a free copy of our credit report by writing a letter to the three major credit vendors and requesting a copy. You can obtain one free copy from them each year. We are writing the letters tonight and will then see what's on there and how to take it off. I will keep posting with this inforamtion as I learn myself.


So where we stand as of today:
New Car - Payments due monthly (must pay on time and never more than 30 days late because this is when it marks on your credit)
Credit Card Due to Arrive - (make monthly charges and pay off full balance every month)


I will start putting up articles I find on the internet that may be useful in repairing credit in other situations and I hope this site is helpful for all in establishing your financial freedom.


Please come back and visit frequently and feel free to post your views and advice as well.


Thank you,
Misty