Will this help me?

[Anonymous]

So I currently have a score around 600--about 20 baddies (medical collections) but all are more than two years old. Now I'm just waiting for them to age and working on establishing some positive lines. Here are the things I want to do--can you tell me whether they'll help?

1. I applied for a department store card in 1997. I never bought anything with it, but it's still glowing at the top of all three reports as "never been late." Would it help me to make, say, a $1,000 purchase using that card?

2. I have student loans that are in good standing, but I'm not making payments since they're on in-school deferment. If I were making payments on those, would my score increase?

It's important to note, of course, that either or both of these options would fit easily into my budget. What do you think?

[Revelate]

Welcome to the forums!

On your reports, for the store card see what the date of last activity / date of last report is - would help to make a *small* purchase on the card, a big one doesn't do you any good.

On the assumption that card is still good, if you have the cash to come up with $1K, go see about trying to get a secured card from BOFA ($300 minimum) and if that doesn't work $250 at State Department Federal Credit Union.  If the store card is closed, get two cards, either those two or try for an unsecured card from Capital One (and if that doesn't work, take their secured card, they have a pre-approval you can check).

Regarding student loans, making payments on them is a financial decision rather than a FICO one as to my knowledge they're still accruing interest (may not in all cases) and it may even be compounded while it's in deferrment: it's certainly in your interest to be paying the accrued interest on the student loans as I understand it.

In any event, you want to be building positive history and you want a second credit card to do that on from what you have now... at least two open credit cards, sounds like the store card is still open which is a straight benefit for you.  Should be fine on the installment side either now or when your loans come out of defferment... big thing after the second credit card is try to get the medical collections taken care of, but you're not in a terrible position from the sounds of it.

[Anonymous]

Thanks! I actually have one low-limit unsecured card already through Capital One. It's in good standing and I'm using about 20% of my available credit. I use it to pay for a subscription service and pay it off every month. Slow and steady wins the race on that one. The store card last reported in 2007, and I don't know what to expect when I ask them to reopen it, but if they were willing to give credit to a teenager with no file at all (I applied for it as soon as I turned 18), I think I'll be OK. What amount do you suppose constitutes a "small" purchase? As for the medical collections, more than half of them will be dropping off my report by the end of the year, so it's probaby in my best interest to just let them.

Thanks for the insight!

[Revelate]

What's the status line on the store card? If it's closed go pick up another card from somewhere. If it's still open, as small as possible, even a $1 purchase is fine in this instance as you just want the tradeline to report again.

Great point on letting sleeping dogs lie, and absolutely right on slow and steady wins the credit scoring game (for everything other than derogatory information removal).

[AndySoCal]

First I would verify that the account is still good ( an open account). If so use it the amount spent is not important  using the card will help.