Hi,
My credit score is 550 and I have total 1100$ of credit line with 2 cards (800 + 300).In last year i was in debt of 800$ and it took me 7 months to paid off.now I dont have any debt.I have started creating my credit hostory since 2 years and during that I have been denied for 3 times for new card application and denied 1 time for Credit line increase.Now I have more than enough money to spend.I want to create good credit history now.what should I do?Should I do my expenses from Credit card and pay off totally at the end of month ,or should I pay 50% or just minimum payment ? or I should not use credit card and should use debit card ? please give me advice .
Thanks.
2007-09-28 16:38:13 · 4 answers · asked by jagatce 1 in Business & Finance ➔ Credit
Each time you apply for credit it affects your score. Use your card monthly and PAY IN FULL every month. Do not run up bills. You need to keep your credit score up. Now they check your credit for everything. Some jobs do. They don't like to employ people with poor credit. It is a sign of irresponsibility and immaturity. Insurance companies have started to do it also. We get a discount because of our excellent credit. You cannot rent a place or get utilities without good credit also. You are on the right path, keep it up. Don't forget, once you repair it don't ruin it again. Also the better your credit is you can get lower interest rates on your loans.
2007-09-28 17:35:03 · answer #1 · answered by kim h 7 · 0⤊ 0⤋
1. Do not apply for any credit or line increases for at least 10 months.
2. Pay off account as soon as possible. Put a few bucks on the card every other month, and pay in full.
3. Pay on time.
4. Pay off any collection accounts.
2007-09-28 17:08:47 · answer #2 · answered by Gatsby216 7 · 0⤊ 0⤋
Every time you apply for a new credit card or ask for a credit limit increase, you score takes a ding. Stop applying.
Use the credit cards you have and pay them in full every month. This will give you an on time history. Eventually they will automatically increase the credit limits on your cards.
The longer the on time payment history, the better your score.
2007-09-28 16:51:15 · answer #3 · answered by bdancer222 7 · 0⤊ 0⤋
Either pay it all off every month or use it only for emergencies. When you don't pay it off you are probably paying really high interest to carry a balance from month to month.
The best way for you to improve your credit is to pay your bills in full and on time!
2007-09-28 16:48:40 · answer #4 · answered by anon 4 · 0⤊ 0⤋