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New Member
Posts: 3
Registered: ‎08-25-2007
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How do I build my credit back up?

What is the best route to take concerning building my credit back up?  I'm about to pay off all my credit cards soon, so should I pay them all off or keep one open and pay on it, on time of course for a year then pay it off to bring my credit score back up? 
 
Onthego
Moderator Emeritus
Posts: 7,326
Registered: ‎06-18-2007
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Re: How do I build my credit back up?



onthego wrote:
What is the best route to take concerning building my credit back up?  I'm about to pay off all my credit cards soon, so should I pay them all off or keep one open and pay on it, on time of course for a year then pay it off to bring my credit score back up? 
 
Onthego


never close good CC. You scores are made up of history....the longer the better!
 
CC payments weigh towards scores
 
What are your CC CL & UTIL??  CC UTIL should be under 10% for best scores
Closed CC accounts do not count toward UTIL  only open accounts.
Moderator Emeritus
Posts: 16,374
Registered: ‎03-12-2007
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Re: How do I build my credit back up?



onthego wrote:
What is the best route to take concerning building my credit back up?  I'm about to pay off all my credit cards soon, so should I pay them all off or keep one open and pay on it, on time of course for a year then pay it off to bring my credit score back up? 
 
Onthego


Hi Onthego! Have you read the credit scoring 101 thread? Great Suff!
 
Credit Profile -
FICO 08 Scores (03-26-2015): EQ 814, EX 817, TU 822
All three scores were 850. Lost points for not having an open installment TL. So, BE WARNED!!!!!
Credit History: 26 years ~ AAoA: 13 years ~ Util: 1% ~ Inqs: EX 1, EQ 1

Credit Cards: Amex BCP ~ Amex Clear ~ Amex Platinum ~ Barclay Ring Mastercard ~ Chase Freedom Visa ~ CITI Dividend Platinum World Mastercard ~ FIA Fidelity Investment Platinum Visa ~ First Hawaiian Bank Gold Visa
New Member
Posts: 3
Registered: ‎08-25-2007
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Re: How do I build my credit back up?

Thanks for the responses.  This is a really nice way of getting help.
 
I'm new and I don't know all the terms just yet, but I'm learning.  I had a hard time paying my bills on time for a while and now that I can get caught back up, I just wanted to pay my cc's off and pay my utilities bills and mortgage on time to start building my credit back up. 
 
Do I really need the cc's having a balance when I have other bills like mortgage, phone, water, gas & electric and cable etc?
 
onthego
Moderator Emeritus
Posts: 7,326
Registered: ‎06-18-2007
0

Re: How do I build my credit back up?



onthego wrote:
Thanks for the responses.  This is a really nice way of getting help.
 
I'm new and I don't know all the terms just yet, but I'm learning.  I had a hard time paying my bills on time for a while and now that I can get caught back up, I just wanted to pay my cc's off and pay my utilities bills and mortgage on time to start building my credit back up. 
 
Do I really need the cc's having a balance when I have other bills like mortgage, phone, water, gas & electric and cable etc?
 
onthego


to have a credit score OR a good credit record, YOU must have credit & it must be reported!
 
Utilities and cable do not report unless you do not pay & are turned over for collections.
 
 Mortgage companies report (but mortgage must be in your name)
CC report all ontime payments and lates.
 
The length of history also counts.
CC carry more weight then mortgage & auto loans.
 
You do not need to carry a balance on your cards in order for the CCC to report. They just need to be used once or twice a year so that they show active.  After you PIF    in a few months use a CC to pay your cable or elect. bill...then after it shows on your CC bill...PIF. This way bills are paid & CCC will report.
Contributor
Posts: 92
Registered: ‎06-18-2007
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Re: How do I build my credit back up?

onthego


to have a credit score OR a good credit record, YOU must have credit & it must be reported!
Utilities and cable do not report unless you do not pay & are turned over for collections.


Happy:

Thats not necessarily true at least in my neck of the woods (Chicago). Peoples Gas reports every month just like a credit line, so you need to be real careful when you make generalizations like that.

Kevin
Moderator Emeritus
Posts: 16,374
Registered: ‎03-12-2007
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Re: How do I build my credit back up?



KevinB wrote:
onthego


to have a credit score OR a good credit record, YOU must have credit & it must be reported!
Utilities and cable do not report unless you do not pay & are turned over for collections.


Happy:

Thats not necessarily true at least in my neck of the woods (Chicago). Peoples Gas reports every month just like a credit line, so you need to be real careful when you make generalizations like that.

Kevin


Finally a utility that reports positive and not just negative account info to the CRAs.
Credit Profile -
FICO 08 Scores (03-26-2015): EQ 814, EX 817, TU 822
All three scores were 850. Lost points for not having an open installment TL. So, BE WARNED!!!!!
Credit History: 26 years ~ AAoA: 13 years ~ Util: 1% ~ Inqs: EX 1, EQ 1

Credit Cards: Amex BCP ~ Amex Clear ~ Amex Platinum ~ Barclay Ring Mastercard ~ Chase Freedom Visa ~ CITI Dividend Platinum World Mastercard ~ FIA Fidelity Investment Platinum Visa ~ First Hawaiian Bank Gold Visa
Member
Posts: 8
Registered: ‎08-26-2007
0

Re: How do I build my credit back up?



KevinB wrote:
onthego


to have a credit score OR a good credit record, YOU must have credit & it must be reported!
Utilities and cable do not report unless you do not pay & are turned over for collections.


Happy:

Thats not necessarily true at least in my neck of the woods (Chicago). Peoples Gas reports every month just like a credit line, so you need to be real careful when you make generalizations like that.

Kevin


Also all creditors don't always report to all agencies. They are under no obligation to report.
Contributor
Posts: 92
Registered: ‎06-18-2007
0

Re: How do I build my credit back up?

In this case, Peoples Gas reports to all 3 agencies. I was surprised myself..and thats one bill I autopay to make sure it gets there on time :smileyhappy:

Kevin
Established Contributor
Posts: 565
Registered: ‎06-11-2007
0

Re: How do I build my credit back up?

[ Edited ]
step one: cut a hole in the box

step two: put your junk in that box

Step three: make her open the box


actually, first make a budget--I recommend this software: mybudgetplanner
I don't see the point in trying to boost credit unless you know
you can actually pay every bill on time every month.

Step two--dispute, GW, everything you can on your CR. Pull credit every day
from www.truecredit.com and ask questions/read things in these forums.

step three--pay all your balances down to 1-10% of your total credit line, and start
paying everything on time--never miss a payment on anything again for any reason.

Message Edited by rifleman on 08-27-2007 06:14 AM
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