Ok so ugh my credit. Do to some past unpaid bills, my family making me let my sister use my credit to buy a bed for her son (I was not happy about it AT ALL. I was only 18 and was so excited about my increasingly good credit, at the time). I've paid everything off, but my credit is still sooooo horrible!! I've tried applying for different cards so that I could try and raise it that way, like at best buy and walmart (I needed a new computer and had 50% of the money and just wanted to pay the rest off) but I of course have been denied. What else can I do??
Note: I don't have any unpaid bills, Everything is caught up and it's just the bad credit which is left over. Oh and I live with my parents so I don't have any bills that way and I don't have a car to pay off. So It's just the bad credit.
Pay for everything with cash for a few years. Get the Dave
Ramsey book from the library and it will totally change the way you think of money and help you get a great credit score soon. Good luck.
The only options may be a rent to own store, layaway, or a pawnshop. Rent to own you will pay more over time, but if you need it now that may be a good option. good luck it will workout.
No pay day loans. No signature loan places.
Daveramsey.com and Financial Peace University
MegandOllie,
"Credit" as we know it is largely an Amercian myth! You don't need any kind of "credit" for most things. Even to buy a house, all you need is a track record of paying rent on time for several months.
Stop applying for credit cards and close the ones you have. If they are open, they are eating up the small credit line you MAY have available for you. It counts against you so make sure to square away and close any accounts that might be open. You can get a credit report for free and see specifically what "dings" are on your credit.
Become a Dave Ramsay fan and learn that Cash is King! You can do just about everything in the world with a debit card and the cash to cover what you need. Good luck--you're young--the sooner you put this concept to use the easier your life will be!
First off, pull your credit report. Find out what your FICO score is. You need to see what's on there that is delinquent or erroneous. Get those paid off and contest the errors.
Every single time you apply for credit it can reduce your credit score by up to 50 points.
If you have a credit card, do not charge more than 25% of your balance. The higher amount of charges to the credit limit will also drop your score.
Talk with your bank about getting a secured credit card or a personal loan. You have to have a different mix of credit to increase your score.
I went back to school and took a student loan (didn't need it) and I'm using it to improve my score. It was cheaper than buying a car.
Be diligent about your credit reports. All 3 will tend to have different information on them and it is a lot of work to get them cleaned up. I've been working on mine since April and have increased my score almost 100 points. I anticipate by April of next year my credit score will allow me to purchase a house.
forget the credit cards!!!!! Keep saving pool all of your money to get that new computer. Go to DaveRamsey.com you do not need credit to get your things. If you have everything paid off keep it that way. Cash goes alot further. I bet you can come up with the cash and pay less for your computer than if you used a credit card. its called wheeling and dealing. believe me you do not want to get caught back up into that mess. get yourself going with a cd or money market acct and you will not believe how much your money will grow for you! Make your money work for you not you work for your money.
Like so many others said, stop applying for credit cards. Each inquiry is a "hard inquiry" that will lower your score. If you still have credit cards, you still need to use them to show that you can handle the credit. I suggest using them for gas in your car BUT make sure you pay off the balance every month (perhaps put aside the money from you account every time you get gas so you have the money when the bill is due). Another thing you can do is go to optoutprescreen.com and "opt out" from receiving credit card offers. Once this hits your credit your score will increase (anywhere from 5 to 20 points) and you will stop getting credit card offers in the mail. Really, you DON'T need more credit cards.
Good Luck!
Have you tried a starter loan place? I went through one of those signature loan places and its great :)
Pay everything in cash. Then your credit will clear up. I had good credit my whole life and all it did was allow us debt. Now I'm trying like crazy to become debt free! If you have no debt, then you'll have more money and need no credit. Good luck!
Try to get a secured credit card. You can check bankrate.com for banks that offer them and the rates available. Once you show you do pay, you might be able to get a store card, Once you show you are paying things on time, your credit will increase. Good Luck.
Do not apply for just any card because applying too many times, and getting refused, can also affect your credit.
See if you can get a utility in your name. That way you can have a solid monthly bill record to up your score. And the others are right, you need to stop applying for credit. You need to show you are financially worthy, to do so, you need to build up a track record of paid bills. A cell phone, a utility bill, something like that....
Is there anything outstanding on your credit? Doctor bills or an old phone bill? If so, get that paid off. Don't apply for anymore credit cards or loans. Do you have a bank account? If not, get one. You may be able to sit down with your bank and explain the history and see if they can set you on the right track.
The more applications you fill out and are denied for, the more strikes against you. Wait several months before filling anything else out. What about utilities? Are you current on them? Do you even have utilities in your name? What about your % of available credit vs amount charged vs. income? Car loans? Rent? Time at your job? All these items factor in to your credit score.
Ok so I had no credit when I bought my first car so I HAD to have a cosigner. A year later I applied for a cell phone and was totally approved. By the time I needed to by my second car I was approved for the lowest possible interest rate the dealer offered on used cars. Onto my third and I now have tear 1 credit which equals 0% financing. The key is you need secured credit. Companies need somthing tangible they can get back should one with poor/no credit default: Cars, utilites. Someone mentiond the credit card where you put money up front and then use the card up to that limit. Keep paying your bill and they will tell you one day not to cuz your "deposit" will cover until depleated cuz you did a good job. If for some reason you default the company will have the money upfront so they do not lose. Right now you are considered high risk. Credit cards are high risk becuase if you default on them the company can't go in and take your stuff back. Like others have said get utilities in your name. You may have to put down a deposit like with the secured credit card. Companies will not extend you credit if they think they will lose. Utilities will just cut you off so it is not as big of a deal to them. Also STOP APPLYING FOR CREDIT CARDS. If you have no debt then rebuilding your cridit should not be very difficult. You will need money upfront for deposits but look into using your credit where the company has less risk in giving you a line of credit.
I took a finance seminar a few years back. They said the best way to improve your credit score (for those that already have money) is to take out a personal loan to yourself. You already have the money on hand (but don't use that unless you absolutely have to) to make your monthyly payments. You could do it for a few months longer than the moeny you have on hand, that way they are reassured you will be a worthy borrower. You may want to explain the purpose why you're doing this. Be honest with them, since you're not actually taking their money. I hope this makes sense, email me if you have any questions.
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My husband is a really good source to ask any questions you may have about improving your credit. He used to own a non-profit Hud approved credit counseling agency and helped so many with their loan modifications, home buying, and credit problems. Currently he is a licensed mortgage broker as well as a credit repair agent for a company called Financial Education Services. You can simply call him or email him if you like about any questions you may have. He's really knowledgeable and super helpful and kind. He loves to help people :)
Here is his contact information:
____@____.com
###-###-####
His name is AJ
Best of luck to you!
Give it time and stop applying for cards. Each time you apply for something it effects your score negatively. Keep paying the debt you do have on time and be patient. My DH has raised his score 100 points in 1 year but doing just that. You'll get where you want to be! Good Luck!
You have to get a secured credit card. You put your own money into the account and use it asa charge card.... that will rebuild your credit AND you need to pay off the bad credit if you want it to go away.
