cancel
Showing results for 
Search instead for 
Did you mean: 

Trying to get my credit in shape, need guidance

tag
Anonymous
Not applicable

Trying to get my credit in shape, need guidance

I'm 24 years old, and it wasn't very long ago that I was completely unaware of the world of "credit" entirely. As a result, a few bills went unpaid and left my young credit history blemished.

 

Home ownership has long been a goal of mine, and I'm really starting to try and get my ducks in a row so that I will be able to buy something.

 

So here's my situations right now..

 

 FICO score of 563. I have one auto finance loan in satisfactory/never late standing with 2 more years left to pay. I have 6 collections accounts. I have no credit cards.

 

Recently I was successful in having one of the collections accounts stricken from my report through experian and my score went up 20 points (I was at 544). Also just yesterday I took my income tax check and paid off 3 more debts through the collector. I was assured by the agent that my credit report would be adjusted to reflect it next month when they report. 

 

I was hoping someone could tell me approximately how much my credit score stands to improve based on the info provided.

 

My plan is that HOPEFULLY my score will improve just enough so that I can qualify for an unsecured credit card, and I would open one and keep it in good standing just for the purpose of improving it that much more. Then I would continue to pay my car payments ontime and have the account closed in satisfactory standing, and hopefully that will improve my score quite a bit.

 

Do you think I'm on the right track for having my credit score worthy of a 30 year home mortgage say in 2 or 3 years?

 

Any input will be apreciated.

Thanks.

Message 1 of 5
4 REPLIES 4
PayingTheBills
Frequent Contributor

Re: Trying to get my credit in shape, need guidance

If you have an extra $500+, would you consider opening a secured credit card?  The fact that you do not have a revolving line of credit is definitely going to drop your score.  Plus, you would be able to immediately start establishing a positive credit line, and you could eventually transition into an unsecured card.  The only thing is that you would want to make sure that you NEVER ran abalance on that card.  Also, your score would dip a little at first because of the new account, but if you are responsible with it, it will help a lot in the long run.

 

just my $.02


Starting Score: 540 EQ 517 TU on 11/17/08
Current Score: 668 EQ 726 TU
Goal Score: 760 EQ 760 TU


My Credit Repair Journal
Message 2 of 5
Anonymous
Not applicable

Re: Trying to get my credit in shape, need guidance

So, do you think the credit card thing is really impacting my credit score that much? I knew that having a credit card open and in good standing was a boost, and I plan on doing that. The thing with secured cards, like you said, they require me to have to tie up a few hundred dollars that I just don't have available to tie up. But if you think that it's something that could drastically change my credit scores I may consider it.

 

Whats generally the minimum score to qualify for a crappy APR nonsecured card?

Message 3 of 5
PayingTheBills
Frequent Contributor

Re: Trying to get my credit in shape, need guidance

More important than having a credit card open and in good standing is to have a credit card open and in good standing for a long time.   The sooner you start, the better.  And if you show that you can be responsible, your limit can be increased over time.

 

That's the beauty of the secured card, there's really no prerequisites because YOU are providing the credit limit with your own funds.  If you can not do without $500-$1,000, this option isn't for you, because you do NOT want to run a balance on one of these cards.

Here's a few options with no annual fee and no credit check:

http://www.nmbadvantagecard.com/index.php?id=h83671693h

https://www.eufora.com/apply/83?tag=51043739

 

I found those offers using the myfico.com "Get a credit card" tab:

http://www.myfico.com/LoanCenter/Offers/CreditCards.aspx
Message Edited by PayingTheBills on 01-29-2009 08:06 PM
Message Edited by PayingTheBills on 01-29-2009 08:10 PM

Starting Score: 540 EQ 517 TU on 11/17/08
Current Score: 668 EQ 726 TU
Goal Score: 760 EQ 760 TU


My Credit Repair Journal
Message 4 of 5
Scamp
Valued Contributor

Re: Trying to get my credit in shape, need guidance


VelcroStrapShoes wrote:

I'm 24 years old, and it wasn't very long ago that I was completely unaware of the world of "credit" entirely. As a result, a few bills went unpaid and left my young credit history blemished.

 

Home ownership has long been a goal of mine, and I'm really starting to try and get my ducks in a row so that I will be able to buy something.

 

So here's my situations right now..

 

 FICO score of 563. I have one auto finance loan in satisfactory/never late standing with 2 more years left to pay. I have 6 collections accounts. I have no credit cards.

 

Recently I was successful in having one of the collections accounts stricken from my report through experian and my score went up 20 points (I was at 544). Also just yesterday I took my income tax check and paid off 3 more debts through the collector. I was assured by the agent that my credit report would be adjusted to reflect it next month when they report. 

 

I was hoping someone could tell me approximately how much my credit score stands to improve based on the info provided.

 

My plan is that HOPEFULLY my score will improve just enough so that I can qualify for an unsecured credit card, and I would open one and keep it in good standing just for the purpose of improving it that much more. Then I would continue to pay my car payments ontime and have the account closed in satisfactory standing, and hopefully that will improve my score quite a bit.

 

Do you think I'm on the right track for having my credit score worthy of a 30 year home mortgage say in 2 or 3 years?

 

Any input will be apreciated.

Thanks.


Welcome to the forums, Velcro! 

 

To help you better understand the impact on your scores of the items on your reports, and the things missing from your reports, please read Credit Scoring 101 (at least the first couple of posts).

 

To give you a primer on how to address the baddies on your reports, please read What Steps Do I Take? Do I DV? PFD?.

 

These will give you some necessary background and a good sense of how best to move forward while waiting for more input from our rebuilding gurus. Smiley Wink

 

Good luck, and welcome again!

_____________________________________________________________________________
It's never too late to become the person you might have been. ~George Eliot

02/12/09 EX: 701 / 02/08/10 EQ: 719 / 02/08/10 TU: 723

Backdoor Numbers, Credit Scoring 101, Understanding Your FICO Score PDF
Message 5 of 5
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.