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New Here..

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Anonymous
Not applicable

New Here..

I am pretty clueless about these credit scores. I have only recently started trying to build my credit. I have done the free sites creditkarma and credit sesame and im confused at how different they are... Credit karma says 581 TransUnion, 627 Vantage... but credit sesame says 607. However, myFico says 556. Im a bit ashamed of my scores  Smiley Sad   I am 24 years old - got pregnant at 16 so money has always been an issue for me. Ive finally completed school and started my nursing career. I got married last year and my husband and I are looking to buy a home next year. His credit is great compared to mine and I would feel terrible if I was the reason we got denied for a mortgagae loan. Im coming here to try to ask for help and advice on what I should and should not do. I just applied for a target credit card. It said they would notify me by mail in 7-10 business days. I have never had a credit card before because everytime I apply I get denied. Its frustrating that everything wants credit history but nothing will give me the chance to build up my credit without a crazy high interest rate. Any suggestions? 

Message 1 of 12
11 REPLIES 11
pizzadude
Credit Mentor

Re: New Here..

 

Welcome to the forums !

 

I'd suggest that you take a look at this thread to help you understand some basics on credit scores: 

http://ficoforums.myfico.com/fico/board/message?board.id=ficoscoring&thread.id=29793

 

Also I'm going to move this post to the Rebuilding forum.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 2 of 12
Anonymous
Not applicable

Re: New Here..

The best adivce i can give you is to READ READ READ. There is a wealth of information on this site. When i join i thought i was in over my head and wanted to give up but then i  started reading and asking questions. Alot of time just reading through different topics you can find the answer your looking for and more. Don't panic, get a copy of all 3 of your credit reports and go from there, i promise you you'll get a hang of it really quickly.

Message 3 of 12
seruby
Frequent Contributor

Re: New Here..

Welcome to the shame free zone, where there's never a need to feel embarrassed!  The credit savvy and credit impared live in harmony among these parts.

 

You could always start with a secured card and that will help establish a positive history.  Just find out when your statement date is, as that's usually the reporting date (check credit karma to see when it says they reported), then whatever balance you have, pay it down so the balance is between 1-9% on that date.   Then don't use the card until the website shows you it's been updated with the new balance.     But always make sure you make your minimum payment by the due date, regardless of the statement date.

 

And order your credit reports from annualcreditreport.com.   (Make sure you print TransUnion's because they won't let you see it once you leave that site.  Equifax and Experian will),  and check them for inaccurate information, or negatives that you can work to take care of. 

 

And of course, read the threads here since there's tons of useful information flying around.

Message 4 of 12
p-
Valued Contributor

Re: New Here..


stuntwife wrote:  I am pretty clueless about these credit scores. Any suggestions? 

Scores are a nice measuring stick to see your progress, but don't matter as much as what is actually in your report.

 

Credit is basically just a measure of whether you can be trusted to pay back what you borrow.  They decide that primarliy based on whether you paid the last guy back or not.  So, things like accounts that you paid on time are super helpful.  Especially if there are several of them, over a long period of time.  Accounts that you were late on, or never paid back hurt you.  Accounts that went to collections or have a judgement are toxic.

 

So regardless of the score model, improving your credit means showing a history of paying on time without fail, and managing your credit well.  You want a potential lender to see you using credit responsibly without messing up.

The first step is easy enough.  Go to annualcreditreport.com and get your three reports for free.  Don't bother paying for scores.  Worry about that later.

Take a look at your negative accounts, and list them out.  Work through the DV, PFD, and repair steps listed out in this forum, handling each account one at a time.  At the same time, work on establishing good credit.  If your Husband has a card with good history he can add you as an AU.  Or, you could open up a secured card at a local credit union to begin building some good history.  Whatever you do, from this day forward never borrow what you can't easily pay, and never ever ever miss a payment.

Simply put, get rid of the bad, replace it with good, and show lenders you are worth lending to.  Most of us have been where you are.  I was low 500's when I started here, and now am almost to 800.  It can be done, but it takes a bit of work.  Once you get your first victory it will get a lot easier, maybe even addicting.

 

Welcome, and good luck.

 

 

Message 5 of 12
Anonymous
Not applicable

Re: New Here..

thank you everyone for the replies. and i apologize for posting in the wrong board. i paid off 2 negative accounts on my credit but they still show negative. I wish i would have known you could make them agree to remove it before i paid those. One was $500 and the other was something i was unaware of.. a 'cleaning fee' for a car we traded in to a buy here pay here. it was $210. but lesson learned and they do show paid on my credit now at least. Just frustrating because I was niave and thought paying it off would remove it and make my score go up. The majority of whats on my report is medical bills. Any advice on what to do with those? They total around $2,000. 

Message 6 of 12
Anonymous
Not applicable

Re: New Here..

I think I am also a little confused because Ive never been on a forum site before so I have trouble navagative throughout the boards and finding what I am looking for. 

Message 7 of 12
pizzadude
Credit Mentor

Re: New Here..


@Anonymous wrote:

I think I am also a little confused because Ive never been on a forum site before so I have trouble navagative throughout the boards and finding what I am looking for. 


Don't feel bad at all, there's a lot of information here. As others have recommended, just take your time to browse around and read as much as possible, and feel free to ask questions along the way.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 8 of 12
p-
Valued Contributor

Re: New Here..


stuntwife wrote:...The majority of whats on my report is medical bills. Any advice on what to do with those? They total around $2,000. 

You'll figure out the navigating.  Most of what you will need starting out can be found here:  

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/bd-p/rebuildingcredit

 

Look at the "stickies" near the top like the frequently requested threads, where you'll find beginner guides to scoring, rebuilding, etc.

 

Medical stuff is actually easier than others in some cases.  There's a write up elsewhere on the web you can find by googling "whychat hipaa," which might help sort out some medical stuff.  But to be honest, I found it easier to contact the medical provider directly and ask if they are willing to pull it back from collections in exchange for payment.  That worked well for me.

 

As far as the paid collections, unless you can get them removed via a Goodwill letter, or there is something false about them that justifies a dispute, you might be stuck waiting for them to age off.

Message 9 of 12
Anonymous
Not applicable

Re: New Here..

I did just that and I already feel better! haha. While I was browsing medical related stuff I kept seeing things about a HIPAA letter.. is that for disputing medical charges? I have a lot of them. What can I do to get them deleted from my credit report? Every link i clicked on for the dispute letter gave me an error and said it did not exist or something? Does anyone know the steps for the HIPAA dispute for medical claims?

Message 10 of 12
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