Rebuilding Your Credit

[orlandodean]

My equifax score is 670 as of today.

I have no reason to get a credit card other than to build back up my credit.

The only reason I'm considering getting a card is to make my credit better for when I apply for an auto loan in 6-12mos.

When I did the fico score simulator with a new credit card of $1500 it showed my score could be up or down in the future.

So, in the real world would getting a credit card and using <10% of it monthly while kepping it paid in full every month boost my credit in 6-12mos?

Thanks,

Dean

[Shogun]

Revolving accts. compromise 35% of your FICO score.  So yes, demonstrating good use of Revolving credit is essential for an increased score.

[Guyatthebeach]

Dean,

I would definitely get a credit card. I would make sure the credit line is no more than 10% of your total income, since your main goal is to get a car loan in a year. With a score of 670, you shouldn't have a problem getting from a bank or credit union. I got one from my credit union unsecured at 10.99% six months after my bankruptcy was discharged. In my case I did have a secured card with them. I also got approved for a Barclay's Apple Finance card as well.

Good luck and keep us posted!

[orlandodean]

Hmm.  Okay.  I'll apply for a card at my credit union tomorrow. Thanks for the advice!

Dean

[Guyatthebeach]

If you don't mind, which credit union do you use and where do you live? I live in SC.

[orlandodean]

North Carolina State Employee's Credit Union.

[Guyatthebeach]

I hear State Credit Union is real good. You should not have a problem. If you do have a problem, I know PNC offers a secured card, because I bank with them as well as with SC State Credit Union.

[apandabear]

SECU is a great credit union. They have several products for those with not-so-stellar credit and finances. 

I don't know specifically what they have for rebuilding, but they're great people and should give you a shot.

I LOVE credit unions.. You aren't a customer, you aren't just a way to make money. You're a member. It's such a different world.

And it's nice seeing locals around here too! Good luck. Let us know how it pans out.. And what the CUs products look like!