What to do next?

[Anonymous]

Hello everyone,

I just joined this forum but have read many posts here before and I think it's a great place. With that being said I am in the process of making my credit better. I downloaded the Experian app and signed up for their premium which gives me all 3 reports and scores. 

FICO 08

Experian 626 Inq-8

Equifax 675 Inq-2

Transunion 632 Inq-4

I currently have a

CapitalOne CL $200

Discover IT Secured $300

Kohl's $300

Credit One $300

My Credit Usage is about 26%

Should I just keep paying off the balances each month for some time or is there anything else I should be doing?

[AllZero]

@Anonymous   You should always pay in full. You want to report a balance. You do not want to carry a balance to avoid paying interest fees.

I would recommend reading the below from ABCD2199
The Truth about Credit Card Utilization
My 11 Rules to Credit Rebuilding
FICO Score: What to pay down first?

From Birdman7
General Scoring Primer and Version 8 Master Thread rev.5.17.20

[ccquest]

Keep using them and paying your balances in full each month, that's the best way to improve your credit report. If you want temporary point boost, try to only have one card reporting a balance at a time (but do not carry that balance and pay interest).

If you've had them awhile (over a year), you can also check to see which ones might have SP CLIs and go for those.

[KLEXH25]

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@Anonymous wrote:

Hello everyone,

I just joined this forum but have read many posts here before and I think it's a great place. With that being said I am in the process of making my credit better. I downloaded the Experian app and signed up for their premium which gives me all 3 reports and scores. 

FICO 08

Experian 626 Inq-8

Equifax 675 Inq-2

Transunion 632 Inq-4

I currently have a

CapitalOne CL $200

Discover IT Secured $300

Kohl's $300

Credit One $300

My Credit Usage is about 26%

Should I just keep paying off the balances each month for some time or is there anything else I should be doing?

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How old is each card? How old is your credit history? Do you have any derogs or old accounts? Student loans? Or just the 4 cards?

[Anonymous]

I have 1 derogatory on TU, it's from T-Mobile for $1301. It was a family member that I let get a cellphone under my name and I didn't know it hadn't gotten paid until I started getting collection notices. I was going to start paying it off, I assume that's the best way to do it. Most of these cards are a few months old but I forgot to mention I also have a Fingerhut that I have had for about 2 years but just recently used it for the first time about 3 months ago. 

[AllZero]

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@Anonymous wrote:

I have 1 derogatory on TU, it's from T-Mobile for $1301. It was a family member that I let get a cellphone under my name and I didn't know it hadn't gotten paid until I started getting collection notices. I was going to start paying it off, I assume that's the best way to do it. Most of these cards are a few months old but I forgot to mention I also have a Fingerhut that I have had for about 2 years but just recently used it for the first time about 3 months ago. 

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@Anonymous.  Find out if T-mobile still holds the debt. If yes, see if they will PFD Pay For Delete.

[Brian_Earl_Spilner]

Definitely take care of your derogatories first. I tried building my profile first and it made it so much harder

[Anonymous]

Than you all for the great information. When I call and setup an arrangement, is it bad to take a lower amount if they offer it as far as against my credit I mean?

[Anonymous]

Accepting a lower settlement will have no different effect on your scores than paying in full. The notation "settled for less than balance owed" will be attached to your reports on that account but it changes nothing for your score. Upon a manual review, such as during a mortgage underwriting, some lenders might look at it less favorably but otherwise either solution is identical in its results.