Small backstory on how my credit tanked: I was a student in the town in which I grew up, had some issues where we lost our family home and I was forced to relocate. Because of this, I lost my job & defaulted on some student loans and credit cards. I've gotten back on my feet in the last two years. All of my collections accounts are closed and I am working on removing the very last one from my credit report as we speak. Some are "closed/charge off," but I don't know if that makes any difference. What's done is done, right?
Now, I'm sitting at a 611 credit score after being around 525 for the last few years. It was embarrassing that I couldn't even get a really low CLI just to try and scrape some credit points. Eventually, I opened a Discover Secured Card and it's probably my favorite card despite its lower $400 limit. I've had that card for about a year now. In the last few months, I've opened cards with Capital One (who was once a collector against me) and Credit One (I know they're awful, but they were the first to grant me a card without any security deposit. I don't use it.
I was given my first credit raise with Capital One a few days ago and that's now a $600 card. In total, I have about $2,000 in credit card credit available to me and I've been an authorized user on a family member's American Express Platinum card for the last two years. I've been responsible about payments. If I don't pay my balances in full, I come **bleep** near close to it every month. I never make *just* a minimum payment.
In the next year, I'll be graduating college and will hopefully be moving out of a family residence where I pay utilities and grabbing my own place. Of course, I would love to have my credit somewhat respectable before then. I'd like to eventually move and sign for an apartment. My car is currently leased via a family member who co-signed for me. When the lease is up, I would like to try and buy the car on my own without a co-signer. We'll see what happens there.
That's where you all come in. Any advice for me? I am going to hold off on applying for any new cards. I am hoping Discover will graduate me to the standard It card soon and I just plan on using my cards responsibly for recurring bills like Netflix, Spotify, etc. I also use my cards at the grocery store and at gas stations, because I get great cash back with the Discover card. Any other "extra" purchases like clothing or electronics, I try to keep to my checking account. Or, if I have the money, I'll use my credit cards to get rewards and just pay it off immediately.
Aside from keeping my balances low and keeping my payments on time, what else do you all recommend? Very much appreciate any advice. This place seems super helpful.
