Aug
30
mnetrucker asked:
I’m going to be honest here, my credit score sucks right now. last i looked it was 580. I was very irresponsible with my credit and spending and overall finances some years ago. I was out of work for over a year due to a car accident. So I foolishly put bills and whatnot all on credit cards with no way of paying them. So I had one go to collections. I have since then paid off all my debt. I have two credit cards now, one fully paid off. The other with a small (300$) balance. I’m looking to possibly get a house, but my credit sucks, what can I do to really improve credit and my score. I heard closing my credit cards hurts credit. So I keep them, but should I pay them off every month in full or make more than min. payments. I don’t know which looks better or helps credit score. There’s no outstanding debt on my credit reports, just the ugly past mistakes that are haunting me (the old collections that i paid off) So any help or tips to improve my credit would be most helpful. should I make small purchases on my credit card and make more than half of the min. payment, or pay it off in full every month? Or close them out? And what else can I do to gain better credit.
Charlotte
I’m going to be honest here, my credit score sucks right now. last i looked it was 580. I was very irresponsible with my credit and spending and overall finances some years ago. I was out of work for over a year due to a car accident. So I foolishly put bills and whatnot all on credit cards with no way of paying them. So I had one go to collections. I have since then paid off all my debt. I have two credit cards now, one fully paid off. The other with a small (300$) balance. I’m looking to possibly get a house, but my credit sucks, what can I do to really improve credit and my score. I heard closing my credit cards hurts credit. So I keep them, but should I pay them off every month in full or make more than min. payments. I don’t know which looks better or helps credit score. There’s no outstanding debt on my credit reports, just the ugly past mistakes that are haunting me (the old collections that i paid off) So any help or tips to improve my credit would be most helpful. should I make small purchases on my credit card and make more than half of the min. payment, or pay it off in full every month? Or close them out? And what else can I do to gain better credit.
Charlotte
Comments
4 Responses to “Need help and gneral info about credit scores/rating?”
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Carl
I completely understand…keep the cards and pay off every billing cycle. Always keep up with your credit report, if all is paid off, then all you can do to improve your rating is keep it clean. Time will improve it.
Lynn
closing your accounts hurt your credit what you should do is to try to keep you credit limit to less than half off dept for example if your credit limit is 500.00 bring your dept to at least 150.00 if you can pay it off is even better it looks good an you record and you will see your credit score go up it takes about 3 months for you to see the score go up but it will also make all your payments on time that will also boost you score and be patient do not apply for credit if not necessary the more inquiries you have th more you score goes down for each time you apply for credit your score goes down at least 2 – 5 points if you have a car loan pay it on time each month and you see how it helps you another thing don’t worry about what ever you have in your credit report at this time if you payed your old dept it looks to you as a negative but the creditors see that you at least payed it you can also but a comment on your credit report explaining the reason you did not make those payments from the pass let them know you had lost your job and that know you are taking care of all your old dept good luck.
Jerry
Keep both credit card account open. Use them every month and pay them in full. This will continue to build a good payment history. There is no advantage to carrying balances and stringing out payment. It just costs you interest.
Your derogatory items will fall off your credit report 7-1/2 years from the date of first deficiency. The older they get, the less impact on your score.
You’ll improve your odds of getting approved for a mortgage by having a large downpayment. Put a set amount into a savings account every payday for the downpayment and closing costs.
Peter
In order to improve your credit score,i can tell you some tips here:-
1) Approximately 35% of your credit score is based on past debts that are over 30 days late. This means if for some reason you are going to be late on a payment, do not let it slip past 30 days late.
2) Canceling credit cards can actually hurt your credit score, particularly if they are an old and established part of your credit history. Even if you no longer use a card that is ten or twenty years old, in most cases it is better to simply shred it since 15% of your score is based on the length of your history. In addition, keeping accounts open gives you a better debt to credit ratio, which makes up 30% of your credit score.
3) While not taking on any debt and paying for everything with cash seems like a logical choice for individuals who can afford this lifestyle, no credit means bad credit in the eyes of lenders. There is bound to be a time when you cannot buy something with cash, such as purchasing your first house, so make the effort to open at least one account and make purchases with the credit card occasionally.
4) Applying for too many credit cards at once is extremely detrimental to your credit score since every time someone checks your current credit status, it leaves a ding that lasts a year. When you suddenly start applying for a large amount of credit, it sends up a red flag that you are enduring some financial trouble you are prepared for or that you are accumulating too much debt.
5) Although teenagers are not always the most responsible with money, getting your child a credit card early in life can make a significant difference in the long run as it is paid off in time. There are a few excellent options for low-limit cards and prepaid cards, which will both help you child start building a positive foundation for their future credit.
6) And finally, avoid freecreditreport.com like the plague! It isn’t free and is a complete scam. If you want your credit report for free you can check all three major reporting companies every 12 months without any negative effects at the government sponsored site: annualcreditreport.com
7) Never lie or falsify information about your credit score! Your credit score is easily checked by anyone and you may even face legal action for lying about it on loan applications.