is it true about credit?

Question

i have just been told by my dad the age u are the credit goes up im 18 now and have got a bad credit will it improve in the years

Answer 1

It will only improve if you pay up. Don`t buy on credit, you end up paying half as much again.

Answer 2

The only way your credit can improve is if you get rid of what is causing it to be bad. Debt/unpaid bills. Pay off everything and always pay all your bills in full and on time and it will improve as you show that you are respondsible. If you just hope it goes away, or think that time will make it better thats just not going to work. Credit is the proof you can give to people who are lending money that you will pay it back. Bad credit can force you to miss out on a lot of things, sometimes you can't even get a new cellphone because some companies require credit checks now.

Answer 3

Your credit score is made up of the following;

1. Payment history 35%
2. Time in bureau 15%
3. New credit 10%
4. Type of credit used 10%
5. Debt to income ratio 30%

As you can see 1,2 & 5 are the most important score wise. Now at 18 you obviously are not going to have any payment history or time in bureau these only come with time and you just turned legal age to sign a contract.

Most young people get their credit established by either a co-signed loan usually with one of their parents or by getting a secured credit card.

Either way, make your payments on time and if you go the credit card route, never exceed 30% of your limit in one month and pay it off in full every month. This will get around paying any interest and build your credit quickly.

Answer 4

Your credit doesn't just get better. You need to stop charging things you can't afford, and settle any debts you owe. Even if you can't pay all of the debt it is good to call the companies you owe and ask them if you can settle for less. Eventually if you keep your credit clean by paying bills on time, and not running up charge cards, or getting too many loans your credit scores will improve. This may help you to read:
http://inspiredgrowth.org/cleancredit.htm

Answer 5

Your credit score will go up with time IF you're doing the right things with your credit.

For example, I have "sub prime" credit because I haven't had credit very long. My husband doesn't exist, because he's never had credit at all. Five years from now, my score will be higher than it currently is, and his score will continue to not exist.

If you're 18 now and you owe something and don't pay it, 5 years from now your score will be lower. If you pay it, have credit open and always make your payments on time, then it'll go up.

Good luck!

Answer 6

If you are only 18 and have bad credit now please work hard to get yourself out of it!!!! I presume you have no dependants and no real expenditure??? Believe me you will regret it in a few years when you have a family. But you won't.....you will do the same as i did and learn by my mistakes!

lenders take all different factors into account when assessing an application for credit but the way that you have run your existing accounts will be the deciding factor.

Hope this helps

Answer 7

i'm 26 i have no bad credit as i refuse to have a credit card. I have seen so many of my friends in debt, one even went bankrupt by the age of 21!
Only you can control your spending. If you have a credit card and the repayments are hard to keep up with, have a word with your bank to see if they can help lower the repayment costs.

Answer 8

Age itself is not part of your credit score. Any factors affected by the length of time something has been on your report tend to have longer histories as you age.

Answer 9

You can repair your credit by not repeating your mistakes and pay off your debts even if it is just 5.00 a month no matter how much you owe it will show you are doing some thing to fix it .

Answer 10

no... but I wish it were by now I'd be able to borrow a fortune. The only thing about credit I've learned is that you can only get it if you're rich enough not to need it!