How Do You Make Your Credit Better?
Okay, so I'm 21 and have a pretty aweful credit rating. Last I checked it was like a 320 or something really bad. Anyway, I'm currently working to lower my debt ratio which is my biggest problem and I have a couple of lines of credit open right now. After I get my debt paid off and some of my credit inquires fall off of my record, will I see a big jump in my credit score? If not, how do you make it better? Do I just keep my credit lines open and maybe take out a few loans and pay them back or what? I know it will take time but I want to do things the right way and really improve my credit.
Thanks,
It shouldn't be a 320 without negatives like slow pays, chargeoffs, judgments or other problems. You need to get those off the reports.
First, you need to get all three reports.
Then you need to dispute away all but the last two years of addresses.
Then you need to start disputing those negative trade lines.
Also get your utilization (debt to limit ratio) down to about 30% by paying down your lines of credit.
Lucky for you there are so many things you can do to improve your rating. Oh man, where do I start? The above advice is very good, take it. Also, however, I would understand that credit cards will hurt you. It is a good way to build credit, IF you use them correctly. Never charge what you can't pay in full every month (two months MAX) , get and keep a phone in your name. Same address for over 12 months actually helps. Keep your job, shows responsibility. Get or use a bank account properly. After a few months of responsible usage, you could go in and ask for say a, $500 loan. Do not spend this money, put it in your account and use it to make the payments.
There's so much more to tell! Be patient and alert and most of all....do your homework on all financial decisions!
Bottom line: "Get control of your finances, and take credit seriously."
Great Advice (all of it!) but I would like to add that you can go to your bank and put $500 or $1000 in a CD and then borrow against it for around 3% over what the CD pays. In essance you are borrowing at 3%. When you've paid it off , you will have paid very little in interest and you still have the CD when it's over.
When you say borrow against the CD do you mean you can borrow the amount of the CD you open? Just want to make sure I understand. An interesting idea...
Take out a personal loan using the CD as collateral. The loan amount should be the same amount as the CD but you're going to make the monthly min payment on it. The trick is DON'T use the loan money for anything else besides repaying. This will get you in trouble if you can't pick up.
The banks are just looking for ontime, responsible payors...just show them you can be responsible over a certain period of time.
Also, what is meant by "dispute away all but the last two years of addresses." Could you explain that further please?
Quote:
On 2003-11-25 16:24, TaraG wrote:
Also, what is meant by "dispute away all but the last two years of addresses." Could you explain that further please?
Negative TLs are reported with an address. Getting rid of old addresses can sometimes disrupt the ability to connect a TL with the person who is the subject of the report. Voila! The TL vanishes on its own, or is easily disputed off the report with a "not mine" dispute reason.
Forgive me, but, what does TL stand for?
See my 11/20 post.
I don't know how to find your 11/20 post. Will you please tell me what TL stands for?
TL = trade lines...got it.
I use a credit repair law they do great work and are very professional. Cost $50 a month I don't have the timeto do it myself although I have the knowledge to do so. Trying to get all 3 FICO scrores to 700+