Hopefully somone will want to help me First, I'm 21 and married. He's 23. I have questions about both our credit. First, I have no collections, but do have a credit card with some late feesI have very little credit as well, this I know. My first line of credit was only opened in 05 and closed itself (due to how late I was on payments for awhile) My next line of credit was a car loan opened in March of 06' ( no late payments) then Daniel and I bought a house in April of 06 (was late on a payment October 06 by 30 days). Also opened another car loan in August of 06 and never late on that. I've had two credit cards since febuary of 06 and been late 60 days at the most a couple times. All of this is bad, I know, but I'm young and trying really hard to make up for it. Daniel, well, Daniel has made more mistakes than me. He has the same car and house loans. He is military and his star card has been late twice. And he has a Old Nnavy card as old as '00. But I believe that's been closed. His star card had a high balance of $1600 at one point, but it's down to $900 and I'm paying that off (he's in Iraq right now). As well, Daniel has had three things go to collections, only one of which is showing up. The first two have been pif or I'm paying off, they're quite small amounts. It's a $500+ bill from nextel. Springs of '06 Daniel wanted to close that account as we had signed up on cingular. They apparantly never closed it even though he paid them the extra amount to close it, so it ran the bill up. Anyway, none of that matters. It's there now. And I was wondering if paying that off would help or hurt me? As well, what all goes on the report? Phone bills with qwest? Gas/utilities and such? Is my internet bill going to show up? These things I don't know. As well, I was reading and some of the acrynims through me for a loop, so help with those is appreciated Oh, also, I pay extra on the house and cars every month, does that help? It should because it reduces debt, correct? And, paying everything on time, doing what I need to do with the collections, and keeping everything on time and paying extra, how quickly will my credit rise? Mine's at 534 and his is at 554, and that's really low and it distresses me. I want our future to be better than that, you know? So, any informatin would really be welcomed and appreciated because the earlier I start getting my credit in line, the better our lives will be. Thank you! Leila
A year and a half ago, my FICO scores were in the 515-525-530 range. I had to file bankruptcy in 1999 and it's been slow recovering ever since. However, what I did was to pay off any collection accounts that were a year old or less, and not included in the bankruptcy. Paying off anything older than four years, I discovered, plunged my credit score even further because it makes it appear those accounts are current. I am now at 616-636-649. Other than my car loan, and two open credit card accounts (open, but paid off and stashed in a drawer) I don't use credit any longer. I am on track to pay off my car loan early, actually...and the bankruptcy falls off my credit report in 2009.
I opted out of all credit card offers (even those for subprime credit) and if I can't pay for it, I don't buy it.
I have a 72-hour rule...if I want something really badly, I wait 72 hours so I can discern whether it is something I really need....or just want.
I even pay for our summer vacation at the beach in cash - though the hotels hate that, especially since I use my AAA card for major discounts.
Anyway, good luck...and hang in there. And stick those credit cards in a block of ice. Why pay into someone else's economy? Let someone pay into yours.