My credit score is 521 and I know with this score, I can't be approved for anything. I am trying to improve my score. I have not got a credit card for over six years now and I am trying to get one now just to establish a credit card history. With this terrible score, do I have a chance to get any credit card? I have one civil jugement which is over six years old and i am hoping it drop off next year. Please help me. Where can I start from here? I even find it hard to rent an apartment.
I think, you may try to open an secured credit card. You deposit some money into bank account, and get credit card with the same credit limit. Years ago (without any credit histrory) I've deposited $1100 in Citibank. My credit card limit was $1100, yearly fee I guess $ 30. After 18 months, of course always paying on time, Citibank sent me a check in amount of $1100 + interest for 18 months, and rised credit line to $2100. I'm not sure what banks now offer secured credit cards, but if you type in "Google" - "secured credit card", I think yo should find bunch of them. Good luck.
Talk about horror stories! Three years ago I could of probably matced you. My credit score was 536. I was letting bills slide, not answering the phone when they called,put one account into charge-off. See you are only human.
Anyway about the secured credit card.You might want to make sure that they are reporting to the credit bureau or it won't do you any good.
THese are what i did and they helped me a lot to establish my credit. my credit used to be worst than yours, but i brought it upto 600. FIrst of all, try to open a saving account. At least put in $500, don't touch it for a while ,and also open a checking account. Best way to start for having credit is to apply for Gas station credit cards....like MObile, CItGO, SHell, etc. To be honest, thats how i started. if you get one, try to send your payment ahead of due date. Try to apply credit cards from Capitalone, Hsbc, and chase. Some of these banks would like you to pay application fee and Annual fee, just pay it...thats the hard way to start. Try to set up all your payment online. Try to use your credit cards on things you know that you have the money already in your checking account, but instead use your credit cards. Try to check your accounts online twice a week and know when amount is due, and pay it through your online checking account. Try to eliminate how you spend in a week. As for me, i make around 450 to 500 dollars a week, but my budget for a week to spend is between 40 to 60 dollars but in that case i am single, i dont know if you are . IF you do exactly what i said, you will get some good offer on credit cards and good credit in a year.
Is that one judgement the only baddie on your reports? Have you looked at all three reports? Is there anything on your reports that's really old? Anything that was settled for less than the full amount? Any collections or chargeoffs you still owe?
I was able to get an unsecured card from First Premier. It's only a $200 limit and they charged me $39 up front and $144 on the first bill plus $6 a month. I dismissed it at first thinking I might get a secured card instead but woke up one night realizing this was my chance. Keep the balance low and dispute every negative item on your credit reports. Creditors have 30 days to respond or it gets automatically deleted. If they do verify the account contact the creditor directly through certified mail. Be persistent it's free to call the credit bureau's and dispute inaccurate information and they send you an updated copy of your credit report after each dispute.It's worked for me. Hope this helps.
I see that someone mentioned Bank of America for a secured card. My husband applied for a BOA sec. card and what they did was gave him a $500.00 limit with us paying a "deposit" of $100.00. They report (are supossed to I've been told) as an unsecured card to credit bureaus. Also, his score at the time was mid 500.
Tileguy has it right. Dispute everything negative that is possible on all 3 reports. A little over 2 years ago my low score was 499 when I first started to get my act together. I disputed almost every negative closed acct in my reports. There were some errors on my reports but a lot it was stuff I screwed with in the past. Of course the errors came off the reports, but so did some of the legit negatives (I guess they were too lazy to verify the info). More than likely if you follow through on that you can raise your scores a little bit. I got an unsecured HSBC card with a $750 limit about a year and a half ago and if I remember correctly my score was right around 580 at the time. Good luck, Erik
Thanks a lot folks. I just got approved for an unsecured card from HSBC. I know this is my only hope to make the best of this opportunity. I have disputed a lot of cc from my report and I am still waiting for a fitback. The jugement appears only on equifax and transunion and it will be seven years old next year. Most of my other debts are already six years old and will hopefully fall off soon. I will start making payments on my student loan this june and I hope this helps my score too. My only active account now is my car payment and i am trying stay good on that too. Thanks for all your advice. I will update this forum when I notice any change on my score. Maybe this will help other folks out there who have the same problems.