I know the tune you are singing!
I am over 60 myself, and gave no attention to anything resembling credit scoring until about 6 years ago. I have raised my FICO score over 150 points since that time, and it is all due to new awareness of what credit scoring is. It is not about financial stability, income, job status, etc., but rather a view of how you have timely paid obligated credit in the past, and how much of your current credit you are currently using. You need credit for a good FICO score.
If you did not have prior credit, FICO looks at you as a risk they cannot reasonably assess.
Not that you are necessarily a bad risk, just not one that they can assess. Thus, low FICO score. FICO is NOT a credit worthiness barometer, it is a risk of payment of existing debt thermometer.
The very first thing I would recommend, without hesitation, is to find a local credit union that you are eligible to join. Start by opening both a checking and savings account with them. Don’t immediately apply for credit. Credit Unions universally offer the best service, and most competitive rates. Most major CUs also offer sponsored, major credit cards at low rates, and great terms. My CU Master Card, for example, has no charge for balance transers. Most majors charge 3-4% up front. Get in the door, and then use them to get you the best CC deal.
The rest is kinda obvious to one who knows how FICO works.
The ideal is to have three major bank cards. Their CL is not critical to FICO. FICO does not score your CL, only your % util of that limit. Under 10% util of each card gives max FICO results.
Never, ever pay late. The absolute kiss of death to FICO scoring.
Pay all old debts. If paid, FICO will still score the delinquency for 7 years on an OC account, and 7 ½ years from date of first default on the OC account for any charge off or collection reported in your CR. To get them removed sooner, you need to go through the good-will process, which is basically a mea culpa plea that most creditors ignore. Unpaid debt can quickly mature from a simple CC monthly late, to a charge-off, then to a collection, and then to legal action. All of which separately compile to your CR, and thus damage your credit score. Decisions not to pay old debt involve legal matter such as statute of limitations (SOL) on your ability to defend yourself should legal action be brought against you. That becomes "hire an attorney" time.
If you have an unpaid collection account, that is where you want to focus. It is a major derog in your credit score. First, know your date of first delinquency (DOFD) with the original creditor (OC) that you first established the debt with. Ignore whatever a collection agency (CA) has posted. Add 7 ½ years to that DOFD, and that is the statutory date after which it must drop from your CR, and thus from FICO scoring.
A CA cannot legally re-age your DOFD, so that would not be a concern of mine in deciding whether to dispute a CA posting.
If you choose to pay a collection account debt, be aware that simple payment in no way improves FICO score. You can try to get a PFD deletion from the CA before paying, or just wait for the 7 ½ period to toll from the DOFD on the OC account. Those are the only two ways to get CA deletion (assuming the debt was legit in the first place)
It is hardly ever a wise strategy to close old accounts. You basically just lose the existing CL on that account. You face dropping of its age of accounts after ten years from closing the account in your average age of accounts calculation. The only legit reason to close an existing account it to avoid yearly maintenance fees.
Pay your car loan only once a month, with at least the minimum monthly balance due. Not to caste disperson on anyone, but loan payments are entered by clerks, not loan officers or attorneys. They might not know the legal implications of recording only a partial payment. Dont confuse the ignorant!
