kleankut wrote:
As we all know the first thing they tell you when you get to school is stay away from credit cards, I did that. However, there are many other forms of credit that can screw up your credit score. I am a case of that. I need any and all advice on how to correctly fix my credit score that is around 500. I am 21 years old and I know they say once its ruined its a long road back, however, I believe if I start rebuilding it now when the time comes to purchase a house, etc. 7-10 years down the line I will be fine. Heres a brief breakdown:
I have in-store past due balances, such as old navy and express, should I pay them off and bring the account back active and effectively manage them? Or pay them completely off and never use them again.
IMO, because you say you want to rebuild for when you are ready to purchase 7-10 years down the line, I would bring these current, keep them current, and keep them open- if possible. Use them every now and then for something small and PIF to keep them active. The lates will fall off in 7 - 7 1/2 years and when you are ready to purchase, you'll have the age of the accounts and they'll show clean records.
Only 1 credit card bill, same thing. Should I make the payment and keep the account active or not use it at all? Same as above.
Feeding off that inquiry, I heard from some sources you should not get credit cards just to help with your credit score by paying them off on time, etc. in the end that it can actually hurt my score. Is this true?
Could what hurt your score? Paying your CC off on time? Getting CC?
Keeping 0% util can give you a ding, because you aren't showing FICO you can manage your credit. You just aren't using it. So, letting a small balance report, will help you more than letting a $0 balance. However, this doesn't mean you can't pay them off on time. Figure out what day they report, what balance they report(report the balance on the day they report, on your statement, etc) and pay off after they report, but before you are charged interest on the purchase.
Getting one or more CC could cause a decrease in your score because of the associated inquiry, having a new account, decreasing your AAoA, etc. But these are all things that fade away in time.
Also, I have a few other random accounts that I owe. Once I pay these off, I plan on asking them to immediately remove them from my credit report although, I know this in some cases takes up to 7 years, I am going into it with a mindset of the worse they can do is say no.
Are these being reported from the CA or OC? The 7 year CRTP starts from DOFD. What is the current status of the accounts? When were they opened? Removing them may not be the best option.
Lastly, from this point how can I start rebuilding my credit score over time. I know this wont happen overnight, that is not what I am looking for. Like working out only consistency will get me to my goal of 700+, so if anybody can give me legit advice on this matter. I would greatly appreciate it. Thanks.
Best way to start is getting eveything current, keeping it current, don't open accounts you don't need, and just let things sit and age. Check out the links below.
