Ways to fix bad credit?
My credit score is poor from a credit card I got a while ago (being stupid, didnt know what trouble it would get me into...) the debt is $750....my credit score is 582...what are ways i can build credit (along with secured credit cards now that im older and working)... Id like to start rebuilding it, so that when im done with school in 2 yeares and its time to buy another car or a house..ill have a little less trouble Thanks in advance... Wow, thanks for some of these answers!
Public Comments
- Secured credit card and apply for a small personal loan. Start investing as well....
- just always make your payments. NEVER miss a payment. and it will go up slowly. To prevent further drops, don't apply for any more credit unless absolutely necessary.
- just pay bill litter at time and your credit will be ok in the long ran
- Get a settlement worked out with that credit card company and maybe get a furniture account or a gas account and pay those on time or early. It may take a while to get it back to excellent but when you get it there it will be worth it.
- The best way to improve your credit score is to start paying your bills.
- don't use your credit cards and start paying off the balance. be sure you are making you payments on time every month. This will help you score go back. Avoid taking out any new credit - credit cards, personal or auto loans - for now as applications for credit can lower your credit score. Examine your debt to available credit percentage - you want this number to be as low as possible as the higher the number the lower your credit score. Do not close any open accounts - this will reduce your availabe credit and therefore increase your debt to credit. Here is how your FICO score is figured: 35% - Your Payment History 30% - Amounts You Owe 15% - Length of Your Credit History 10% - Types of Credit Used 10% - New Credit
- First, Pay off the debt! Next open a checking account with overdraft protection - BUT NEVER OVERDRAFT the account! To build credit, get a credit card BUT DON'T USE IT ALL THE TIME. I would start with a Discover card. They will usually take anyone as a customer, and the fees are low or maybe free. Buy only one thing per month with the card - maybe one week worth of groceries, but ONLY 1 THING EACH MONTH - THEN PAY IT OFF every month. Don't let any debt build up. Don't shop for mortgages, or other credit - this dings your credit score too. USE CASH FOR EVERYTHING - that way you know how much you have left. You cant overspend if you don't have any cash! If you do that for 1 year, your score will top 650 and head toward 700, after 2 years -750 is possible. Do that your whole life, and they ask you if you want to borrow any money.
- Pay ur payment ontime
