How to build or repair credit score?
I'm 19 and sort of have bad credit already b/c when I tried to get an apartment for college I was rejected so instead had to get one in my parents' name. Sometimes I would pay payments early, but other times I would just totally forget about it and not pay and then I be charged interest..this has been going off and on. So, I have a few questions.. -In order to build my credit score, is it possible to just withdraw less than 30% or so from my credit line from the ATM then when it gets near the payment due date I can just pay off that entire withdrawal amount then repeat? -How long does it take to repair bad credit?....like years? Would I have to pay off credit card payments consistently for many years in order to repair my credit rating? -What's the fastest and most efficient way to repair/build credit?...And how long would it take?...Would cutting my credit card up right now and just stop using it until I graduate from college and get a job repair and/or build my credit? THanks!
Public Comments
- Do not get any credit cards ever. Never take out an unsecured loan. Pay all your bills. Cut up your credit cards. They are a scam.
- On-time payment history and debt-to-credit ratio are the best ways to rebuild the credit. There is no ethical way to quickly rebuild your credit; it is going to take some time. (between 18-24 months of on-time payments.) I would recommend you get rid of all your credit cards and just use your own cash to purchase what you need. If you can't get it with your own money, then you really can't afford it.
- Do not use your credit card at an atm to rebuild your credit. Not only do you get a 3% or higher fee for doing so you also pay interest daily on a cash advance there is no grace period for a cash advance you only get that on purchases.
- fast way~~by far Many people out there believe that credit repair is a scam. And, to be honest, there are a lot of scam artists out there posing as credit repair specialists. However, it should be noted that most of the myths about credit repair are perpetuated by the credit reporting agencies. They don't want you challenging what they do because it costs them money. So they will tell you that you don't need to do credit repair or that you can do it yourself. While that is true, it is also true that you can repair your car yourself when it breaks down. However, you take it to a mechanic because you know the mechanic understands engines better than you do. I KNOW its legitimate i went from a 502 credit score to a 767 in 6 months!!!!!!!!!!!! Best thing i ever did!!!!! The company i used offered a money back guarantee. The decision is ultimately yours. there credentials and reputation are unimpeachable. It comes down to, are you going to listen to people who only believe what they hear on TV or are you going to believe people who actually work in the field every day and know the truth? http://www.karunaservices.com/
- First things, first. What ever debt you current owe you need to make sure that you pay it on time and pay more than the minimum due. This will immediately start to improve your credit situation. I don't suggest getting cash advances and then using that money to pay off the bill because that will make your debt to income ratio much higher and may reflect poorly on your credit report.
- A credit card is a great financial tool. It can be more convenient to use and carry than cash, and it offers valuable consumer protections under federal law. At the same time, it's a big responsibility. If you don't use it carefully, you may owe more than you can repay, damage your credit rating and create credit problems for yourself that can be difficult to fix. A good credit rating is a crucial part of achieving financial independence. By improving your credit rating you can save thousands of dollars in interest charges on your auto and home loan. You can also get approved for new, low interest loans and credit cards. Therefore, to build or repair your credit, if you have extra cash, pay down as much of your debt as possible. The lower your ratio of current debt to available credit limits, the better you look to a lender, and the higher your credit score will be. The flip side of this is to call existing credit card accounts you may have and ask them to increase your limit, though you won't actually use it. You should do this as often as possible, even if you don't need the credit. This will also increase your credit score. However, please, do not not open additional credit card accounts to increase this ratio, since that may hurt your credit unless you have under 4 open credit cards. But increased credit limits on existing accounts will help since you will be lowering your overall debt ratio. In summary: You don't need to carry a balance on a credit card to have a good credit score. Paying your bill off in full is the best way to keep your finances in shape and build your credit at the same time. Pay your bills on time. Delinquent payments can have a major negative impact on your score and the longer you pay your bills on time, the better your score. Keep balances low on credit cards. High outstanding debt can affect your score. Maxing out your credit cards could lower your average score by as much as 70 points. Don't open a number of new credit cards that you don't need. New accounts will lower your average account age, which could actually lower your score by up to 10 points. Have credit cards - but manage them responsibly. Having credit cards and installment loans (and making timely payments) will raise your score. Someone with no credit cards, for example, tends to be higher risk than someone who has managed credit cards responsibly. Good luck!
