Credit problem??

Question

I recently had some collections accounts that were not mine deleted from my credit report...now the only credit I have is a credit card from Premier. I just opened that account about 3 months ago, and I have been doubling up on my payments. That is the only thing one my credit..besides my student loans that aren't due until 2009. Is it best to pay the credit card off, and apply for another credit card, or just make the minimum payments for about 6 months. I also got my credit score and it is in the low 600's. How can I improve that?

Answer 1

You need one more credit card and the simply use the two of them for everyday things being careful never to exceed 30% of your credit limit and pay them off in full before the due date.

This will do two things, it will establish a good pay history and it will keep your debt to credit ratio low. These two things alone make up 65% of your credit score.

The other thing yo can do is get a small personal loan and pay it out over 12-months and never be late. Lenders look for at least 12-payments made as agreed.

Answer 2

Keep the one you have , adding more will hurt when you are ready to buy a house , pay it off and leave it open , start saving up for those student loans , the catch to not being due until 09 means there is going to be some extra costs in there some where , after all they do not give you something for nothing , pay off the card save all you can so you can pay off the loan when it comes due , the less open credit accounts you have will help you in the long run , good credit is not reported only the bad , and open accounts , Learn the difference , credit gives you borrowing power , cash gives you buying power , the banks will let you keep on borrowing they will give you more than you can ever pay back , they want your money , they do not give a rip about you , and what you can afford , I can not go borrow 1000 dollars , yet I have the ability to retire before I am 40 years old. If you live off credit you can never retire , besides my income from working , when I was 20 I started a retirement account ( roth IRA) I put the max amount in for 7 years , and never put anything else in , when I hit 60 it will be worth between 4 , or 5 million , If I am not here my kids will split it , my house will be paid off in a year , I will give it to my son in three years , I just bought another acre for 13 grand less than the market value , by paying cash , I will pay cash to build there as well , and when my daughter finishes school ( she is 10 now ) she too will have a place paid for , both homes together will have a value of 1/2 up to 3/4 of a million , , and I am nothing but a house painter with a high school education , and I did it without Bill Fair and Earl Isaac, ( FICO .) the two do nothings that figured a way give you are score to borrow what you do not have , if they were real smart they would teach people the way to buy without using credit , and how to buy a home without even running a credit check . Anyway pay off that card , do not get another one , work as much as you have to , save all you can , pay off student loans in full or as much as possible , keep saving , then you can buy more for less with cash , you can get a 25 ,000 dollar car , pay on it 6 years , and will pay over 35 grand for it , or you can give them 15 to 18 grand cash , and drive off with the car , which seems smarter , credit companies are out to take all of your money , they are not in business to help you save money , compare their house to yours , they do not need more , but they gladly take it , you need your money , more than they do ..

Answer 3

It will take time for your credit scores to rise. Since you just started using the credit card, then you will have to wait a while. 15% of your credit score is based on the length of your credit history. Since you have had the cc for only a few months and the other accounts on your report are student loans that you're not even paying yet, all they have to base your score on is a small amount of information.

Keep paying your bill on time - that's 35% of your score. It's very important. If you feel you should get another card, then do so, but it's not imperative to do that to boost your score. Keep in mind that while applying for new credit, it will pull down your score. You also don't want to look like a risky borrower by opening up loads and loads of accounts within a short window of time.

If you have the money to pay off the account, pay it off monthly. Don't carry a balance. That's a big misconception that people make. Credit scores will rise when you charge and pay off the full balance.

Good luck to you!

~peace, love & light~

Answer 4

The reason why your credit score is in the low 600s is because you only have 1 tradeline w/c is your Premier Card and the fact that it's only been open for 3 months, it doesn't help your credit history. To obtain a good credit history, you have to have at least 3 major tradelines such as major credit cards with al least $1500 credit line and have a history for at least 24 months. Also, if you've been doubling your payments, you're off to a good start. Another key point is to make sure that your balance does not go over 50% of your credit line. Also, if you have a credit card that you have a zero balance on it, don't close the account, if you don't intend to use it, just keep it open as it will help your credit history. It's funny how we think that if we don't owe anything, the better our score will be but that is really not the case. These are just a few factors that will help you with your credit score. There's a lot more factors that affect credit scores. One of the easiest way to improve credit score is to have someonel ike family members or friends (that you trust) that have good credit history add you to their credit card. Their credit history will reflect on yours.

Answer 5

Take out a small unsecured loan, make only 6 or less payments with the money then pay it off in full.
1) You'll show you received credit
2) You'll show a good credit history with an installment loan verses a credit card.
3) Paid in full and on time will help you.

Answer 6

Continue to double up your payments on your Credit Card,
600 isn't that bad, you don't have a lot of credit history,
try for a simple store charge to your favorite clothing store,
and a gas card, just keep the payments within your budget
so you can be them in full when you get the bill.

Answer 7

One of your problems is that your credit report has no accounts that have been open more than 3 months. Your credit score will improve when the Premier card has been open longer.

Answer 8

One catch with your credit score is a credit history. If you have been good about paying a card's balance, it is good to keep that card so you retain the good credit on your score.

If you are good about paying your balance off, then time is one of your best assets for increasing your score. Hang on to the card with or without a balance (showing you can handle a balance and pay it off is good) and make sure you don't miss any payments on anything else.

Answer 9

Go to your nearest Credit Union and Join!!!!
Have a payroll deduction and build your savings.
Then Take out a small loan with them, pay it off, take out a car loan that is small and pay it off, etc.
Soon your credit will be sparkling and you didn't need a stupid credit card, then get a credit union card and pay off that old card with it.