I want to improve my credit score - any advice.

[zeek69]

as a first step to gaining clarity and control over my credit situation, I've subscribed to my fico.  I have very poor credit: equifax 531, tu 535, experian 515.  I have a history of late payments and there are public records on my report. I recently acquired a secured card which is in good standing, and I have a long credit history.  I am not looking to get new credit cards, or take on debt, but rather I would like some advice on how best I can build up my credit scores so I have more flexibilty in the future. I've gained a lot of clarity over my finances and I am commited to living a solvent existance. Any advice would be much appreciated.

[Pway]

To maximize your scores I would open up a store card and obtain another credit card and charge something little on them.

[Anonymous]

You have taken a good first step in getting the secured card. Generally for rebuilding purposes its recommended to establish three revolving accounts (Credit Cards) - that does not mean you have to go in debt with them, however. Just use them for 'every day' expenses that you would normally pay cash for, and then pay the charges as soon as they post. That way you show usage of the card, but you don't carry balances and there's no interest charges incurred.

You would likely get a decent immediate score boost just by adding a second secured card. A third, not so much, but its helpful over the long run.

Another thing that helps push your scores up is your credit mix. FICO likes to see several credit cards, one installment account and one real estate loan.

[Goblin]

Have you attempted to write any goodwill letters to the companies that you've been late with?  

As you can see from my signature, I started with worse scores and I remember the moment when I received clarity about credit.  Just remember it's a long process and persistance is key!   

[zeek69]

That's an amazing improvement GOBLIN! Thanks for the advice. I'll look into good will letters. I am also open to getting another secured card as suggested above. DCU Secured Visa seems like a smart option. And I'll follow the advice of the FICO score simulator. Thanks everyone for your help and please keep the advice coming!!

[Anonymous]

I am still rebuidling mine but my suggestions would be:

-Good will letters to collections/late payments to see if they will remove them.

-Keep utilization on secured card below 10%.

-Try and open a store card or two or obtain another secure card (if you can afford it) so there is more revolving debt.  

-Keep monitoring myfico and joining in on the forums.

-Dont get frustrated with credit or take it personally (I have a problem with this at times), just continue to improve.

-public records generally take 7 years to come off but some states are different, check to see what your state laws are.

Keep pluggin away!

[Goblin]

I wish I would have known this at the time of my early rebuilding, but I've read that Bank of America's secured card allows you to graduate to unsecured after some time.  So that is a good foot in the door with them. 

Definitely try those goodwill letters.  If they say no, just keep trying!  Some of mine took months of attempts.  Depending on how old your accounts are, you can try the credit reporting agencies for early exclusions as well. 

[mb2621]

I'm in a similar situation. I am looking to apply for a secured card soon as well. I have some stuff that will fall off in the next year-year and a half. 

1. Should I apply now or wait for the bad history to go away?

2. Will 1 secured card be sufficient? I don't want to open up more, as that what was got me in trouble last time.

[Anonymous]

Sooner the better. Yes, one secured card is sufficient, though your scores will build much faster with three revolving accounts.