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New to credit

Skippy101
Member

New to credit

So I'm new to credit. I have opened a BOA secured CC $500 limit,and discover secured CC $200 limit. I also have a CD taken out on my self to help report a history I have 2 things bad on my report, a medical bill that's charged off at $700 2 years ago and phone bill from 5 years ago $371. my score is 580 according to my credit reports EX/ EU I'm 29 years old. I would like to buy a car at a decent rate if I can even get approved by this time next year. I recently opened up both cards and CD 1 month ago do you have any tips for a newbie like me ? I pay both cards in full, and early and kept the amount spent on them below 28% before it was paid. and my CD is paid early in full as well 

Message 1 of 8
7 REPLIES 7
FireMedic1
Super Contributor

Re: New to credit

Have 1 of your cards report say $20 each month then pay it off after statement date. Never have all accounts report $0. FICO doesnt like that. And a 3rd card will help. In rebuilding FICO likes 3 cards and a installment loan. Is the medical a collection? If so whos it with? May be one that PFD. The 2 baddies get them paid off so they quit updating. Slow steps but it can be done.






Homeowner since Sept 2020. My posts are JMHO. My siggy is not to brag. Just sharing my experiences after BK from learning here from rebuild to recovery from the @ 540's.
Message 2 of 8
Skippy101
Member

Re: New to credit

So my question now is do I get another secured CC or wait until I can get a unsecured card ? The medical bill says charged off collection  it's with advent health and I have an installment loan ( the cd ) 

Message 3 of 8
SouthJamaica
Super Contributor

Re: New to credit


@Skippy101 wrote:

So I'm new to credit I have opened a BOA secured CC $500 limit and discover secured CC $200 limit I also have a CD taken out on my self to help report a history I have 2 things bad on my report a medical bill that's charged off at $700 2 years ago and phone bill from 5 years ago $371 my score is 580 Experian says I'm 29 I would like to buy a car at a decent rate if I can even get approved by this time next year I recently opened up both cards and CD 1 month ago do you have any tips for a newbie like me ? I pay both cards in full and early and kept the amount spent on them below 28% before it was paid and my CD is paid early in full as well 


As @FireMedic1 says, let one card report a small balance each month while the other reports zero.

 

Pay your CD-secured loan down to 9% of the original loan amount, then pay it as slowly as posssible.

 

I think 2 secured cards is enough. I would wait until you can get an unsecured card.

 

I would join a credit union, one that doesn't do a hard pull for membership.


Total revolving limits 698000 (605000 reporting) FICO 8: EQ 721 TU 742 EX 715

Message 4 of 8
NYC_Fella
Regular Contributor

Re: New to credit


@Skippy101 wrote:

So I'm new to credit I have opened a BOA secured CC $500 limit and discover secured CC $200 limit I also have a CD taken out on my self to help report a history I have 2 things bad on my report a medical bill that's charged off at $700 2 years ago and phone bill from 5 years ago $371 my score is 580 Experian says I'm 29 I would like to buy a car at a decent rate if I can even get approved by this time next year I recently opened up both cards and CD 1 month ago do you have any tips for a newbie like me ? I pay both cards in full and early and kept the amount spent on them below 28% before it was paid and my CD is paid early in full as well 


No offense, but adding some punctuation would motivate more people to read your query. I gave up halfway.

Message 5 of 8
SoCalGardener
Established Contributor

Re: New to credit


@NYC_Fella wrote:

@Skippy101 wrote:

So I'm new to credit I have opened a BOA secured CC $500 limit and discover secured CC $200 limit I also have a CD taken out on my self to help report a history I have 2 things bad on my report a medical bill that's charged off at $700 2 years ago and phone bill from 5 years ago $371 my score is 580 Experian says I'm 29 I would like to buy a car at a decent rate if I can even get approved by this time next year I recently opened up both cards and CD 1 month ago do you have any tips for a newbie like me ? I pay both cards in full and early and kept the amount spent on them below 28% before it was paid and my CD is paid early in full as well 


No offense, but adding some punctuation would motivate more people to read your query. I gave up halfway.


I gave up at "my score is 580 Experian says I'm 29"--like, huh, Experian says you're 29? Okay then.... *shrug*

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Message 6 of 8
Skippy101
Member

Re: New to credit

I fixed it sorry, I use talk to text a lot because,I have issues with my hand.

Message 7 of 8
Ilinferno
Frequent Contributor

Re: New to credit


@Skippy101 wrote:

I fixed it sorry, I use talk to text a lot because,I have issues with my hand.


No worries, was able to track with what you were saying. Follow the above advice and keep at it! Good luck on your credit journey.

Message 8 of 8
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