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I have screwed up pretty bad in my past, mostly with hospital bills that never got paid and an old bank account that was overdrawn. I have NEVER had a credit card though, but every time I apply for one, I get turned down. Now, I'm currently a student and have taken out some student loans. When I start to repay them, will this help build my credit? I would really like to be able to establish some kind of credit for when I finish college. Where do I start?

2006-11-10 02:22:57 · 5 answers · asked by Anonymous in Business & Finance Credit

5 answers

any time you apply for a card it shows up on your report that your credit has been checked, which will drop the points a bit. Stop applying for at least 6 months to get those points back.
Also, any time you have a late payment or collection it drags it down, so as much as possible pay your bills on time.
Too many cards can also effect your credit because it increases your total amount of possible debt. Get rid of the ones you don't use or need.
Taking out a small loan at the bank and paying it off early or on time will also raise your score.
But the thing about it is it takes time to show up.
The bigger things have more of an effect, like a mortgage...it will raise or drop your points way more than say a store card with a $200 limit.
So, just try to pay your bills on time, don't apply for anything new for at least 6 months, and make sure that you don't have anything you owe to a collection agency- because that stays on your credit score for 3 or 5 years- I can't remember which.

2006-11-10 02:37:29 · answer #1 · answered by Anonymous · 0 0

Please understand that the more debt you have out the more it affects your credit rating thus making it harder for you to obtain new credit. Repairing credit is not as simple as paying a bill and it automatically increase. It definetly helps. A great thing for you to do is get a secured credit card which normally gives you about a $200 spending limit that you have to pay in advance. Start by getting this making all your payments. Make sure your monthly balance stays under $50. This will help you develop a true line of credit. Your student loans are gonna affect your dti pretty bad unless you have a job that pays alot of money. Your dti is (debt to income ratio). Start secured and be a good manager of your money! Good luck

2006-11-12 02:11:09 · answer #2 · answered by marcus s 1 · 0 0

student loans will make you or break you. if you pay them on time then it will definitely boost your credit. the worst bad credit is unpaid student loans. you can also go to a bank and apply for a secured credit card. you can get them for as little as 200 dollars. you need to make sure that the bank reports secured cards to the credit bureau. gas cards are also usually easier to get. Good luck !!!! It only takes about 6 months to 1 year to repair credit!!!!!!!!!

2006-11-10 10:36:14 · answer #3 · answered by Anonymous · 0 0

pay off your loans, pay your bills on time. get a credit card and charge groceries or gas and pay off a few times to get a good payment record going. you should be able to clean it up in 2 yrs of of prompt paying.

2006-11-10 10:25:53 · answer #4 · answered by island3girl 6 · 0 0

try this:

Step-by-Step Credit Repair Guide
http://www.debt-loan-refinance-mortgage-credit.com/category/Step-by-Step-Credit-Repair-Guide.html

2006-11-12 05:23:33 · answer #5 · answered by marie a 2 · 0 0

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