Rebuild Delinquent Credit

[Anonymous]

I'm 22 years old with a 500 credit score. I'm not trying to get any credit cards or anything, just trying to pay of delinquent debt that has been sent to collections. Will that increase my credit score or increase my chances of getting a home or car loan in the future?

Besides getting an unsecured credit card and opening an account at a credit union, is there anything else I can do? I'm hoping to have a decent credit score by age 27. Is that possible?

I'm engaged to be married, but I'm going to wait until after I finish dental school (I'm in my first semester) but I don't want to bring debt to my fiancé who has near perfect credit.

Has anyone bounced back from having bad credit at a young age?

[Anonymous]

---

@Anonymous wrote:
I'm 22 years old with a 500 credit score. I'm not trying to get any credit cards or anything, just trying to pay of delinquent debt that has been sent to collections. Will that increase my credit score or increase my chances of getting a home or car loan in the future?

Besides getting an unsecured credit card and opening an account at a credit union, is there anything else I can do? I'm hoping to have a decent credit score by age 27. Is that possible?

I'm engaged to be married, but I'm going to wait until after I finish dental school (I'm in my first semester) but I don't want to bring debt to my fiancé who has near perfect credit.

Has anyone bounced back from having bad credit at a young age?

---

I'm not YOUNG but trying to rebuild after a divorce/layoff/and some medical issues - I know that if you are working on paying delinquent stuff - you want to get a PFD (pay for delete) if you can - that way it comes off the credit report.    Sending GW (goodwill) letters to try to get some late payments/etc. from reporting can help too.   Also check your report and dispute things that can be - So far by paying off ONE car loan - and getting TWO collections off (disputes) my score has gone up over 50 pts in less than 5 months.   I was finally (after like almost 10 years) able to get an unsecured card - actually 2.   I plan on using them - barely - and paying off each month - so that they have limtied utilization on them - and slowly increase credit lines.......I am hoping to buy a house next summer - so I have less time than you to raise my score (abt 609) than you do.   You should have no issues raising yours in the next 5 years - especially as the baddies fall off your report.

[Anonymous]

Thank you so much! All of my credit accounts are delinquent, with the exception of my auto loan and cell phone account. I know it's going to take time, I was just worried because I've heard horror stories of bad credit haunting people forever. You've given me hope!

[Anonymous]

Just remember time is your friend - take care of what you can (and actually try) because the next 5 years will go by no matter what - Some things will fall off after 7 years - others you can take care of.  

[Anonymous]

---

@Anonymous wrote:
I'm 22 years old with a 500 credit score. I'm not trying to get any credit cards or anything, just trying to pay of delinquent debt that has been sent to collections. Will that increase my credit score or increase my chances of getting a home or car loan in the future?

Besides getting an unsecured credit card and opening an account at a credit union, is there anything else I can do? I'm hoping to have a decent credit score by age 27. Is that possible?

I'm engaged to be married, but I'm going to wait until after I finish dental school (I'm in my first semester) but I don't want to bring debt to my fiancé who has near perfect credit.

Has anyone bounced back from having bad credit at a young age?

---

Paying off old debt can help. More important, though, is establishing NEW credit and learning to use it responsibly (took me 50 years to figure it out).

I see you are brand new here. I suggest sitting down and spending the weekend reading as much of this forum as you can.  And then keep on reading for the next two weeks before DOING ANYTHING. A lot of stuff may not make much sense at first, but after a while the peices will start to come together and you'll have an idea of the steps you need to take.

I like to say that we don't "rehab our scores" but rather we "rehab ourselves" as to how we see and use credit.

[Anonymous]

---

@Anonymous wrote:

---

---

Paying off old debt can help. More important, though, is establishing NEW credit and learning to use it responsibly (took me 50 years to figure it out).

I see you are brand new here. I suggest sitting down and spending the weekend reading as much of this forum as you can.  And then keep on reading for the next two weeks before DOING ANYTHING. A lot of stuff may not make much sense at first, but after a while the peices will start to come together and you'll have an idea of the steps you need to take.

I like to say that we don't "rehab our scores" but rather we "rehab ourselves" as to how we see and use credit.

---

Listen to NormanFH - He's already given me some great advice!  

[Anonymous]

I definitely will continue reading the forums. Thank you, I appreciate you both!