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Need Help Estabolishing Credit

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Anonymous
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Need Help Estabolishing Credit

I'm 18 and I have 2 credit cards. I've never been late on either one and always pay more than the minimum due. My credit score is 605, but I don't know what to do to make it better. I'm trying to get a car loan, and I'm not having any luck because my credit isn't good enough.

Message 1 of 7
6 REPLIES 6
Anonymous
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Re: Need Help Estabolishing Credit

What is the  utilization on your cards?
Message 2 of 7
Anonymous
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Re: Need Help Estabolishing Credit

Mandalou, I used to work at a dealership and i'm by no means an expert when it comes to credit. But, when you are applying for a car loan. A few things are giong to matter.

 

1. Credit

2. Income (makes a difference because of how much your monthly payment is)

3. Employment history.

 

1. Your history is going to make a difference becaues you have fairly new credit. Even if you have a score of 650. It's gong to be credit that doesn't have alot of history.

2. They are probably only going to allow you a carpayment between 15-20% of your monthy gross income.

3. They will also look at how long you've been at your current job.

 

Hope this helps

 

 

Message 3 of 7
Anonymous
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Re: Need Help Estabolishing Credit

PLCC-$150 credit limit, my balance is 40

Capital One Visa-$300 credit limit, my balance is 120

 

 

Message 4 of 7
Scamp
Valued Contributor

Re: Need Help Estabolishing Credit


mandalou962 wrote:

PLCC-$150 credit limit, my balance is 40

Capital One Visa-$300 credit limit, my balance is 120

 

 


 

Mandalou, your current overall utilization is ~35%, and this is hurting your scores at least some.  Your Cap 1 card is at an individual util of 40%, which also is hurting it.

 

If at all possible, get one or the other card paid down to 0 and the other to 1-9% of its credit limit (at least), and then keep them there.  That alone should give you something of a score boost, when those updated balances report.

 

If you haven't already, please read Credit Scoring 101 (first couple of posts, really - see link in my signature lines), and maybe also hunt up any post on here by haulingthescoreup and read Understanding Your FICO Score, which is linked in her signature lines.  These should give you a lot of info that will help you in establishing a good credit profile and history.  Hope this helps!

_____________________________________________________________________________
It's never too late to become the person you might have been. ~George Eliot

02/12/09 EX: 701 / 02/08/10 EQ: 719 / 02/08/10 TU: 723

Backdoor Numbers, Credit Scoring 101, Understanding Your FICO Score PDF
Message 5 of 7
Anonymous
Not applicable

Re: Need Help Estabolishing Credit

You are only 18 years of age. You just entering a new era of life. Make sure you understand that earning a good credit takes time and have at least 3-5 years of credit history. So hang in there, be good to your current account and time will give you good credit. That's the concept. After 2-3 years of credit history, time to move on and start getting cards that you want.

 

Credit takes time, time is Money and money is power. So Time IS everything here.

 

 

 

Message 6 of 7
Itsmeagain
Established Contributor

Re: Need Help Estabolishing Credit

Kudos to you mandalou962!!  When I was 18 credit was NOT one of my primary concerns.  Keep up the good work any you will see some stellar improvements.  Congrats . . . . Smiley Wink

Starting Score: TU 737 EQ 721
Current Score: TU 741 EQ 741
Goal Score: TU 765 EQ 760


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