How best to repair my score?

After falling off the wagon and failing to make several payments/having several accounts closed, my score is now a 493.

I still have 2 open accounts: 1 Apple card (90 days late now reduced to 60 days late, balance of $287). $50 past due,

and one Bank of America card (90 days late for the last 3 months, balance of $1,154). $297 past due.

My worst closed account is a CareCredit card with Synchrony Bank. It is now charged off as of 2 months ago, but did not update last month. Balance is $1,986. (Should I try to settle/pay this, or just let it go? I hate them.) Full balance past due.

My other closed accounts are:

Chase, now current with payment plan, 150 days late last month. Balance $1,444. ($297 past due).

Credit Union Card (Elan), 150 days late. Balance $759, payment plan available to bring it current ($109 per month for 3 months). $388 past due.

Capital One Card, 90 days late for past 2 months. Balance $1,186. ($210 past due.)

2nd Capital One Card, 90 days late for past 2 months. Balance $1,115. ($192 past due).

3rd Capital One Card, 90 days late for past 2 months. Balance $353. ($112 past due.)

I also have a Samsung charge card reporting current every month, and am an authorized user on a Home Depot charge card, reporting current every month.

What should I focus on? I've got about $600 and should start making ~$3,000 per month in October with no expenses except these.

My gut is to start the payment plan with Elan, bring the Apple card current, and split the rest between everything else (while ignoring the Synchrony charge-off).

Assume all your open accounts are going to balance chase you to zero and close out the accounts on you.

Negotiate settlement/payment plans for your closed accounts. Yes even the one you hate. Be a Lannister “always pay your debts” just as you would want other to pay you back you spent it.

It will likely be a few years before any decent bank will touch your profile, get these accounts current, so they stop reporting every worse lates and/or change their status to charged off/collections, then pay all this off to avoid potentially being sued.

Once that is done save up a bit of money and grab some secured cards and/or alternative credit products like cred.ai or chime pre-paid. Dont worry so much about hard pulls because your credit is already rock bottom. You are looking to find as many accounts reporting positive history as possible while you wait for some of this to age on your report.

In the future talk to your creditors before you get in this situation, all of these banks would have preferred you continued using their products than paying someone to harass you, only to then need to close out your accounts

A simple “ hey [bank] what sort of hardship program do you have for [insert issue here]? I am going through a rough patch but would like to continue my business relationship with you” they have a lot of leeway to freeze interest, payments, or reduce monthly minimum, forgive interest, but if you wait til your are 3-5 months behind after ghosting them they are coming for you like you left them at home 8 months pregnant while you had a foursome with their sister cousin and BFF, and they are going to let the world know it.

Do you think it's worth declaring bankruptcy and starring from scratch, as I have multiple 120-150 day late payments on my report right now?

Blue123 wrote: ↑Wed Sep 11, 2024 4:35 pm Do you think it's worth declaring bankruptcy and starring from scratch, as I have multiple 120-150 day late payments on my report right now?

You have no guarantee you can discharge the debt, the most likely outcome being structured payments. The lates won’t come off but now you also have a BK. Before you consider anything I would suggest see if the banks will offer you a settlement. If not consult a BK attorney often they will give you a free consultation at the very least. My first choice will always be see if you can resolve it. /edit Just re-reading your initial post… going off your claimed excess cash you should be able to pay everything off in a few months even if you paid 100% of it. Just pay your debts you only owe about 3600 and you say you have 3k a month to throw at it. You will be laughed out of BK court.

Blue123 wrote: ↑Wed Sep 11, 2024 4:35 pm Do you think it's worth declaring bankruptcy and starring from scratch, as I have multiple 120-150 day late payments on my report right now?

Honestly with your debt load and your expected free income, you should just pay it off. Yeah, the lates suck, but BK hurts more. Once all your debts are paid off, your scores will start improving, and you can start rebuilding. As for paying them off, I would pay off the highest interest first, and work them down one at a time, while paying the minimums otherwise.

To clarify, I have about 9k-10k in credit card debt.

I also have an "income-sharing-agreement" which is basically an installment loan that I only have to pay when and if I make more than 50k per year. I do have to verify income though, and having been unable to do so, I owe about 3k on that loan. I believe it has stopped reporting while I'm in the military though.

Blue123 wrote: ↑Thu Sep 12, 2024 12:56 am To clarify, I have about 9k-10k in credit card debt. I also have an "income-sharing-agreement" which is basically an installment loan that I only have to pay when and if I make more than 50k per year. I do have to verify income though, and having been unable to do so, I owe about 3k on that loan. I believe it has stopped reporting while I'm in the military though.

What exactly is an income sharing agreement… as in your back child support/alimony? And how exactly is it military can’t verify their income?