Richard asks…
How do I improve my credit score?
I just checked my credit score - it is (embarrassingly) in the high 500s. Yes, it sucks.
There's nothing really terrible on my credit report - no bankruptcy, no collections. I was late 30-60 days a few times, but that was back in 2003. Everything has been current and paid on time since then. I believe the thing that is lowering my score is my credit usage/utilization - almost 100%. I have about 5K in CC debt on 3 CCs.
Now that I can afford to pay this off slowly, would it be better for me to pay off one CC at a time or a little off each one, gradually paying all 3 off? Does it make a difference?
I don't think there's really much more I can do to improve my credit score except to pay off this balance and increase my available credit. Would it help to get a secured card with a high credit limit (which would increase my available credit)???
Help me please.
admin answers:
YOU COULD GO GET IT CLEARED.
Ruth asks…
How can I start to improve my credit score?
I recently moved in with my cousin, and one of my bills I never got because I completely forgot until I saw it as an alert that I was over 30 days late on my credit score. And it was only for a 30 dollar card payment and it is the first time I have ever been late on anything. But I still understand it hurts my score, and remains on the report for seven years. It made my score drop 90 points right away, I thought that was a little drastic but I knew it would affect it, especially since I only have about a year of credit history, and the most ive ever owed is like 1000 dollars all together. So even a little bad thing makes a big difference. Even though it stays on it for seven years, is there any way to quicken the process of improving my score, will the score drop stay this big for all seven years even if I am perfect from here on out? Please give me some tips I know I goofed and should have been more responsible, but now I have to deal with it. Thank you.
I completely understand that I have made a mistake, and no I don't use the card anymore just pay for it, thank you for the advice but I do not need to be told that I messed up. I am not making any excuses I simply put what happen, and it is completely my fault and only I will have to take responsibility for it. I am just asking for some advice. Thank you.
admin answers:
Your score will recover long before this remark disappears off your credit report.
It isn't going to happen over night and take this as a lesson not to "forget" about a credit card payment. There really isn't any excuse... The card is sitting in your wallet all the time. Why all the sudden do you think it would be ok to forget to go after the bill at the old place?
It can take a year or two... But that is the price you pay for "forgetting" to pay on time.
Betty asks…
How much and how fast will my credit score improve?
I had 6 cards and I am paying all of them off only 1 still has a balance and I am almost done. I closed 2 of them because I figured 6 was way too many. But I have also heard not to close your credit cards when you pay them off. Any advice what I should do with the 4 remaining ones? Close 1-2 more or leave them all?
As I pay them off how fast and how much can I expect to see my score improve? It's currently around a 590 and I don't know why it's so low I was only late once or twice and never more than 30 days. I've been working in paying them off for a while now and haven't seen it go up at all.. what gives?
admin answers:
Closing unused credit cards messes with your ratio of credit card debt to available credit. You should have a total of 11 credit accounts. 7 credit cards ( such as department-store charge card , gas cards or bank cards) 4 installment loans ( auto loans, mortgage, student loan...) Installment accounts will help your score the most .
Your FICO score is made up of 5 components.
1. 35 % payment history
2. 30% Amounts owed
3. 15% Length of credit history
4. 10% new credit
5. 10% Types of credit used
History is the most important . I hope you did not close the oldest account. And When you don't have a long history , a little thing such as a few inquires affect you score.
Note: even if you pay off your credit cards in full every month, your credit reportmay still shows a balance on those cards. The balance on your LAST STATEMENT will show in your credit report. Usually due date and closing bill date are different date . Make sure you pay on time and keep the money in your account til closing bill date .
Maria asks…
HOW TO IMPROVE MY CREDIT SCORE PLEASE HELP?
MY CREDIT SCORE IS 525 DUE MOSTLY TO MEDICAL BILLS FROM BEFORE I WAS 18 I RAISED HELL TODAY TO THE COLLECTION AGENCY THAT REPORTED ME TO THE CREDIT AGENCYS. THE COLLECTION COMPANY PUT IN A REQUEST TO HAVE THEM REMOVED. IT MAY TAKE 30 DAYS TO GET THEM OFF OF MY REPORT BUT THAT IS SETTLED. NOW.. I HAVE 2 CREDIT CARDS MAXED OUT HOWEVER WILL BE PAYING THEM COMPLETLY OFF THIS WEEK THE TOTAL REVOLVING DEBT IS 3500 DOLLARS AND I HAVE A CAR LOAN FOR 11,000$ .
15,000$ WILL BE DEPOSITED INTO MY ACCOUNT NEXT WEEK. IS IT BETTER TO PAY THE CREDIT CARDS OFF OR PAY THEM DOWN TO SAY LIKE 100$ LEFT ON EACH CARD AND JUST CONTINUE MAKING REGULAR PAYMENTS AFTER THAT. and is it possible to raise my credit to 650 in 1 year thanks
admin answers:
Your credit score is made up of many factors. Collection Accounts are the worst thing that can be on your report next to Bankruptcies, Foreclosures and Repos.
The next biggest thing is your credit card balances. Since you are maxed out that is really harming your score. So pay off the entire balance.
Depending on the rest of your report I would not be surprised if the above two actions raised your score into the low 600's. So the next thing to do is just use the cards on a regular basis and pay them off at the end of the month to avoid interest. The catch here is don't use more than 30% of your total credit limit at any one time.
Then be sure that all of your payments are made on-time for any other account you may have.
Lisa asks…
How can a young student improve their credit score?
I am a 22 year old grad student. I have had 2 credit cards since I turned 18 and have never had a late payment. I have one account that is about 2 years old that had ONE late payment when I had my child about 1.5 yrs ago. So over 4 years, I had one late payment (30 days late). I had a medical bill from my daughter go to collections that her father was court ordered to pay but it still went to my report instead of his :( I paid it off the moment I saw it pop up on the report so it showed a red box on the report for only a month. So basically I have two negatives (the one late pmt about 1.5 yrs ago and the collections account that was not my fault). I have 4 open credit card accounts right now, and also a car loan that I have NEVER been late on nor any of the cards. The kicker is I have 70k in student loans from my private school and masters program. I will be in the health field and hopefully will have no problem paying them off since they are 90% federal loans.
My credit score is only 647...I would like to buy a house in a few years but I just feel very discouraged that my score went from 747 down to 647 from those two negatives. Is there hope for obtaining a mortgage in say, two years, if I keep my perfect payment schedule? Or will my student loans drown me? I just need HELP!! Thanks so much!
admin answers:
I think you will be fine.
The late payment will probably drop off your credit record after 2 years from the date of the incident. The collections report will last longer, but when it becomes the only negative, your score will increase.
You do have a lot of debt, however. You can't do much about the big student loan, but you can try to pay off the car loan as quickly as possible--certainly try to be done with it before you apply for the mortgage. Keep the credit card accounts as clean as possible. Pay off the entire amount due each month, and try never to pay the minimum. A year of paying off fully every month will also increase your scores.
If you stay out of trouble for the next couple of years, you should get at least to 700, which should put you in pretty good shape. (720 would be even better, but 700 is enough for most mortgages).
I wish you the best with your career and your soon-to-be house. :-)
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