Bad Credit!!! Help!?
its not like i have HORRIBLE credit but i cant even get credit. i get denied for EVERY credit card. I have some outstanding debts from like direcTV and Sprint from when i was like 18. What is the best way to repair my credit and start building it. i think my credit score is a whopping 530 or so....HELP!
Public Comments
- Pay off what you owe. Instead of worrying about a worthless credit score, focus on managing your finances correctly.
- 1) Realize that 530 is a horrible score. 530 is in the bottom 7% of the US population. http://www.scribd.com/doc/21502/Understanding-Your-FICO-Credit-Score Just because the score ranges from 300 to 850 does not mean 575 (the middle score) is the average score. The average is really around 700. 2) You probably shouldn't be taking on more credit in your situation. The credit card companies know this, and that's why you are getting denied new credit cards (they don't think you would pay them back). If you absolutely need a credit card, you should get a prepaid card or a secured card. Anyone can get a prepaid card without a credit check, and you can use it just like a normal credit card... but you can only use as much money as you put on it. To raise your score quickly in your situation: Get a copy of your credit report. Look for the smallest debts that you are delinquent on and pay those off immediately. If you have any larger delinquent debts that you cannot pay off with a little self sacrifice, call the company and discuss your situation. They will likely accept a payment plan, they might decrease or eliminate any future interest/penalties, they may even decrease the debt you owe if you tell them you just can't possibly pay that much. But work it out, you do owe still them this money even though you were a silly 18 year old when you borrowed it. Tips for raising your score after paying off delinquent debts: 1) ALWAYS pay on time! 2) Pay down your credit cards. Keeping a high balance on a card is very detrimental to your score. Keeping a $0 balance is best. 3) Don't apply for new credit (including store cards) unless you absolutely need it. Your score goes down every time you request new credit. 4) Don't cancel your older cards even if they have high rates. Simply stop using them. The older your cards, the better they are for your score. **But feel free to cancel them if they have a yearly fee. If you don't have any active credit cards now, you should apply for one only after you have paid off all the current debt that you owe. Once you have paid it all off, credit card companies will be more likely to give you a second chance. Paying off delinquent debts and following the 4 points above will very quickly raise your score. You could have a score of 700 in 3 years if you are serious about this.
- You should get a copy of your credit report. Look at it and contact all the creditors on there you owe money too. Get all your old debt taking care of then that will help. I had bad credit and First Premier through mastercard gave me a small credit line of like $350 to start. Just spend like $20 or $40 a month on it and pay it in full every month. Doing these two things should help get your credit up in about 3-6months.
