I have bad credit and I'm only 26 y/o, how can I raised my credit score?

Question

When I was young, I treated my credit like it was a 14th Street prostitute (if you been to D.C. you'll know what I mean). Anyhow, eventually someday I would like to buy a home. I make okay money. How would I go about making my credit better??

I currently do not have a bank account. Due to messing that up in 2001

Answer 1

Valerie, said exactly what I would've said, but I'll add some more to it. If you need a checking account, click this link http://www.accountnow.net

This will give you an alternative to a checking account it even allows you to sign up for direct deposit and online billpay that is reported with these guys (http://prbc.com/consumers/how/olbp-intro.php)

This way at least you have a means of managing your money and paying your bills on time.

Next...

go to these guys

http://www.nmbplatinumcards.com/dbplat/index.php?id=h53977468h

This is a website where you can get you a secured credit card.

If (and when) you get this, use it sparingly (about $20-30/month) and pay it in full every month, on-time if not early

Answer 2

The process of credit repair is much more than simply eliminating the negative information. You should ensure any positive information that can improve your credit score is actually included.

1. Report Your Positive Accounts:
2. Use Other Person’s History:
3. Go For Plastic Cards If You Don't Have One:
4. Use a Secured Card:

Answer 3

Actually it is very easy to start building credit. I am actually a Lender and although there has been a lot of changes in the past 2 weeks with the market ,there is a lot that you can still do.

First and foremost you need to get a copy of all three of your major Credit Scores. That would be equifax, experian and transunion. You can get online to search there information so that you can request it. You are allowed 1 free report yearly from each major credit Company, so be carefull of those out there that tell you they can give you all that you need. However you will have to provide them personal information to get it. These Companies can a lot of times be scams. Simply get the numbers for each company online and call and request them directly.

Second once you get your scores, make it a point to go through each of the creditors that you have listed. This is so important because so many people do not keep track of their scores and when they finally do it is a never ending battle to get things corrected.

Next... If you see something that is not correct you need to immediatly contact the Company directly, many people tell you that you have to contact the Credit Bureaus, however this is incorect. You have to start at square one. I advise all of my clients to get a notebook and take 3 pages for each creditor on their reports and make notes of anything that is strange. You can then sit down and write that creditor a detailed list of what is wrong, actording to statutes in each state they (the creditor) only has about 30 days max to respond. If at this time they do not then you need to send them a second attempt notice, at this time they sometimes (again depending on the state only have 15 days to respond. If once again they do not respond you send them a final demand to fix and then at this time you now notify all 3 major credit bureaus. This is when the Credit Companies will step into help. However you must have a detailed letter advising of all the steps that you have taken and proof in which manor the letters were sent. FYI this is when I tell my clients to send things certified mail. Most cost on this is $4.00, but $4.00 vs. not being able to get into a home should not make a difference At this time they will then contact that certain creditor with your information. At times I have seen things be completely removed from a borrowers credit if it is incorrect. At other times they update them to where they are reporting correctly.

Now as far as a banking account you need to attempt to open something, even a savings account. There are so many lenders raising guidelines now due to market issues that you have to show that you can hold money. You need to set up a retirement or savings account. You can start one for as little as $500.00 and then add $50.00 a month. This is great for a lender to see, because if something were to happen now you have what they call reserves. You will need to also start some sorts of revolving accounts. There are Credit Cards out there that you can get at low interest rates. For example one that I tell my Customers of is Frist Premier Bank, yes they do have a start up fee but it is a small card that you can use and PO. You dont want to however open 15 different accounts at once. This shows sometimes that you do not know how to handle your finances.

As you see it is a step by step process but I have been able to help my customers get into homes within a year and stop waisting money on rent. If you want a home bad enough you will get it. It might seem like a tough battle but in the end it is worth it.
Hope that helps if not email me and let me know.

Answer 4

Join a bank and apply for a Secured Credit Card.
Limit will be around $500.00. You need to have 500 in your account.. When you charge something, you still have to make a payment (in full if possible) If you don't make the payment the bank will make it for you from the money in the account.
Prove that you can be responsible and make constant payments. Best thing to do is to charge something small each month and pay it off each month.
With-in 6 months your score will start to change.
Many CC's do not help your score's, if anything they hurt.
Keep only 2 card's use them and pay them, be consistant.
P.S. don't charge more then you can pay, and start saving for your house.

Answer 5

a bank acct and bad credit have nothing to do with each other.

open a savings acct and a checking acct.

here is data that will make you very happy;
because of the various credit law and the "law of
math"--

if you make every payment you owe on time for the next
5 yrs, and you spend frugally [lightly], you will be able to
buy any house you want as long as its payments
are no more than 25% of your net take home pay.

-----------
you can probably get a house now if you have not filed
bankruptcy or had many foreclosures.

you might need some cash down. the amount down and
the interest rate offered you will depend on your CURRENT
credit score[s].

in time, EVERYONE"s score will go as high as it can
based on their income-expense ratios and payment history!
thus, philosophically, everone can have an 800 score!

Answer 6

First things first. If you have a bunch of stuff on your credit that isn't paid off and is behind. Get it paid off. If you have a bunch of credit cards that are maxed out, get their limits lowered. If the interest rates are really high, get rid of the cards. It's hard to keep cards and not spend on them. But having some cards still active can help improve your credit score.
Get yourself a copy of your credit report! Then start making a plan of action. Example. This card is first to use my extra money on paying off. ect. But make sure you make the minimum payments on all of them.
All cards and loans, everything.
Get a bank account. You don't need good credit for a bank account. A savings account is good too. But the interest you gain in a savings probably isn't going to be equal to the interest you pay out in your credit cards. So get rid of your debt first.
They will use the amount of money you make and compare it to the total amount of debt you own to determine how much of a credit risk you are when you apply for loans. If your credit is really bad it might take a while to get it good.
Create a budget, but make sure you budget a little for trivial things like going out to eat or buying a new pair of pants. Or whatever. If you don't budget for that, then you will still end up spending that and it will mess up your whole budget. Be realistic.
Set your budget out somewhere you will see it often. And try to stick to it.
But first thing is to list all your bills and total debts owed.
Second is to make sure to always pay your minimums.
Third is to start cracking away at the total debts.
Pay attention to the interest rates. Sometimes, when you make a 20 dollar minimum payment, the interest will end up being 18 dollars. The credit card companies make most of their money off people who max out their cards and only pay the minimums.
Oh and fyi, alot of banks will give you a free checking account if you have direct deposit. Then you can do your bill pay online and have it go out straight from your account. Thus keeping you from putting the money in your hand and having the urge to spend it. Pay your bills before you buy anything else. That's a biggie.

Answer 7

Bad credit is one of the worst problems to have... however there exists a solution.

I will hereby talk from my personal experience.

I did debt consolidation a couple of years ago, however If I had to do it again I would pay to some minor details,
if someone wants to get out of debt today it is pretty easy with a debt consolidation plan, however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,

a good place to start in my humble opinion is astraight to the point ebook with question and answer I found :

http://umgarticles.atspace.com/debt-consolidation.htm

if it helps kindly remember me in your voting!.. cheers!

Answer 8

well ,first of all go to a local reputable credit counselor in your town and work with them and then you have to make sure all the checks are paid for if your account is messed up ,go step by step,get the credit scores to get every thing paid and be responsible from there on in .usually you can make the payment arrangements that fit your budget.good luck

Answer 9

OK this is what my friends do get all the credit cards you can but max them out and ALWAYS pay them off in full. then take out a loan and pay the loan back with the original amount borrowed instead of spending it. like take a loan out for 1500 and than put the 1500 IN an account and don't spend it unless its to pay the loan! get it?

Answer 10

well what you can do is find out what you owded pay it then get like a prepaid visas anddont let it get negative and your bills as soon as they came in pay them on time and work your way around hope that was helpful good luck