My credit score is 550. How can I improve my score without going further into debt?
My credit score is poor at 550 level. I don't have any credit cards now, but how can I raise my score?? I have student loans on my credit report, but payments are deferred till I finished college. I have some collections items on my credit report, and was wondering if paying them now will improve my credit score. Frustrated SSN bearer.
Public Comments
- get a secured Credit Card I had a low Credit Score and got a secure credit card and payed each bill on time after 3 months my score shot up 70 points
- Your credit score is not based om how much debt you have, it's based on your ability and willingness to make payments on time. It also takes into consideration what kind of debts are not paid on time. For example, your credit score will be reduced more if you are late paying your car or home loan, because these are necessities. Late payments on credit cards will reduce your score, but not as much. If you have collection items, contact the lender. They may be willing to remove the collection item if you pay the debt. It's worth a try. Get your credit report first to determine what's actually being reported. Take care of ay public records first, because they stay on your credit report longer. Don't worry about accounts that are 6+ years since you first went delinquent; they will fall off your report soon.
- the sooner you will start to pay your collection, the better for you in the long run. if you have any collection, that are 7 years old- don't pay them , they will be removed from your credit report after 7 years . if you will start to pay your newer collection, this will hurt your credit for a while, but after couple mth of timely payment or paying them in full- you will see credit score improvements. also if you can , open new credit card and in your situation , you can get only secured credit card and remember, don't max up your credit card, only use as much as you can pay each mth or live balance below 40% of your credit limit.ask maybe your parents to put you on their credit card like authorized user and their payment history will show on your credit witch will help you a lot.
