How To Build Credit

[#1Beaver]

I have bad credit a score of 560 average from all 3 companies!
And I want to build it somehow.....someone told me to try a secure load I think were I give them a certain amount to secure the loan? But how can iI do that if my credit is so bad?
I have paid my credit card bills, I had 3 of them that is 3 years over due but no change so what should I do?

Thanks For The Help!!!!!

[Paree4g63]

hmm, only ways I'd know of are to:
**pay off as much as you paid with your credit cards in the first place asap!
For example: Bought a turbo kit a week ago for $2k.. pay off or a large sum by the payment due date or make several payments during your grace periods.
**If you have a mortgage/car loan; Pay more then the minimum or do it so you'll never be late and stay accurate.
**Try & accrue credit by gaining more debt:
Example: Paying for bills under your name(cell phone, utility bills, cable tv, satellite, car insurance)
**Descrepencies, bankruptcies, car repossessions, late or any negative behavior that isn't supposed to be part of your credit will decrease your credit score.. Or maybe someone stole your identity and is using your social security number and is f** up your credit score when you don't know it.

Just my 2cents

[Jin]

**Try & accrue credit by gaining more debt:
Example: Paying for bills under your name(cell phone, utility bills, cable tv, satellite, car insurance)

I agree with most of what you said except the above.

The bills you mentioned have no way of helping your credit due to the fact that they aren't revolving accounts nor are they reported in good standing. They will affect your credit if you default on them. Sure, they check your credit for cell phones, cable, etc., but they only check it to ensure that you qualify. (eg : outstanding collections with the similar company your applying for) Also gaining more debt isn't a good way to fix credit. Its a good way to get in over your head therefore making your credit worse.

The best way to improve a credit score is time.

Pay off any derogatory balances/accounts and slowly open accounts you can manage.

Also try to minimize any credit inquiries.

[Paree4g63]

I agree with most of what you said except the above.

The bills you mentioned have no way of helping your credit due to the fact that they aren't revolving accounts nor are they reported in good standing. They will affect your credit if you default on them. Sure, they check your credit for cell phones, cable, etc., but they only check it to ensure that you qualify. (eg : outstanding collections with the similar company your applying for) Also gaining more debt isn't a good way to fix credit. Its a good way to get in over your head therefore making your credit worse.

The best way to improve a credit score is time.

Pay off any derogatory balances/accounts and slowly open accounts you can manage.

Also try to minimize any credit inquiries.

Yea, that's also true too. You can open new *credit accounts* and try to rebuild your credit by showing the bureaus or whomever you are improving. Example would be to get a credit card that has the features that'll help you rebuild your credit scores. Just use one for gas and pay it off at the end of the month. Also, auto insurance has their own scoring system as well. The longer and the more credibility you show your insurance company, you will be better off in the future as to lower insurance rates and also obtain better options for you in the future.

Utility bills and etc help you in a way also.. everything under your name alone shows some kind of credibility towards someone/something. What goes around comes around..

[JennB]

I agree with most of what you said except the above.

The bills you mentioned have no way of helping your credit due to the fact that they aren't revolving accounts nor are they reported in good standing. They will affect your credit if you default on them. Sure, they check your credit for cell phones, cable, etc., but they only check it to ensure that you qualify. (eg : outstanding collections with the similar company your applying for) Also gaining more debt isn't a good way to fix credit. Its a good way to get in over your head therefore making your credit worse.

The best way to improve a credit score is time.

Pay off any derogatory balances/accounts and slowly open accounts you can manage.

Also try to minimize any credit inquiries.

You are 100% correct. Cell phones, utilities, insurance, cable, etc have NO effect on your credit unless you default. You could pay your phone bill on time, every month for 15 years and it does nothing. They do not report to the credit bureaus. I used to look at about 20 credit reports per day when i worked in auto finance and can pull my own up at any time becuase I have one of those credit monitoring services. I assure you, my phone, gas, insurance, cable are not on there and never have been.

First of all, you need to work on your past due accounts. Work out a payment plan with them. Are they still trying to collect? There is a point where they give up and stop trying (sometimes, depends on the collection agency) and after that it takes years for the effect on your credit to lessen. Technically, If they want, they can keep reporting and that bad debt can stay with you for a decade or more. It is a large amount?

As for opening a secured card, you can easily get one with really bad credit. Why? Becuase you are securing it with cash. You give them $300, they give you a card with a $300 limit. No risk to them. They still get to collect interest on your balances so it's a big win for the credit card company. They report it and you slowly build credit. But if you have negative items still reporting, it will take a long time for this to do much good.

Gas cards and jewelry store credit cards are easy to get. Go get a card somewhere cheap like Friedmans, buy a watch or something and pay it off by paying a little over the minimum each month.

You've got to figure out the situation with the bad debt though. With no resolution, it can continue to hurt you for years. Debt collectors are getting more aggressive and don't give up as easily as they did in years past.

[HeLLo iM iZzY]

Time and of course money is the key to getting good credit.

Give a bit more then the due amount every month and make sure you pay it on time.

Collecting late charges will hurt you and the interest if it's taking you forever to pay off $100.

[SouthSide Tay]

well these guys are exactly right. my credit is f'd up too. here is a pretty good guide to check out when you got a minute or too to do some reading. and it also gives you templets to disputing discrepancies on your report.

http://www.creditinfocenter.com/repair/Repair.shtml#4

[95alty]

Yes... credit is a biotch... check out www.buyerscreditcoach.com and they have ways to dispute things on your credit report to get them erased or resolved... make sure you pay off those delinquent accounts and start to open new ones... best way... hate to say it... is to open those credit cards you get in the mail... DONT USE THEM...!!! credit is based on time and paying things off... never close a credit account... once you pay it off let it sit for a million years... it only increases your credit score... length of time plays a big role in credit scoring between the 3 companies.. equifax, trans union, and one more... Also, keep only 2/3 the amount of the credit card used... say you have a 300$ limit... only use up to $200... if you use 250 it actually decreases your score... 2/3 will allow your score to increase because it shows your status of not MAXING out your limit... if there is anything else you need let me know... im like the credit guru

[JConner]

Yes... credit is a biotch... check out www.buyerscreditcoach.com and they have ways to dispute things on your credit report to get them erased or resolved... make sure you pay off those delinquent accounts and start to open new ones... best way... hate to say it... is to open those credit cards you get in the mail... DONT USE THEM...!!! credit is based on time and paying things off... never close a credit account... once you pay it off let it sit for a million years... it only increases your credit score... length of time plays a big role in credit scoring between the 3 companies.. equifax, trans union, and one more... Also, keep only 2/3 the amount of the credit card used... say you have a 300$ limit... only use up to $200... if you use 250 it actually decreases your score... 2/3 will allow your score to increase because it shows your status of not MAXING out your limit... if there is anything else you need let me know... im like the credit guru

actually, you should only use 1/3 of your avaliable credit to increase your score. Anything above that decreases your FICO score. Using $200 of $300 in avaliable credit will decrease your FICO score. It would be better to use $0-100 out of $300 in credit.

[95alty]

actually, you should only use 1/3 of your avaliable credit to increase your score. Anything above that decreases your FICO score. Using $200 of $300 in avaliable credit will decrease your FICO score. It would be better to use $0-100 out of $300 in credit.

You are correct... sorry i was mistaken... it is 1/3 not 2/3

[JConner]

You are correct... sorry i was mistaken... it is 1/3 not 2/3

[JConner]

check out www.clarkhoward.com . i listen to him daily and he is very smart. You need to get credit cards! Don't use them, just have the credit avaliable! This is the easiest way to increase your credit score, I am 21 and have 4 credit cards that I use maybe once per year each (to keep the account active). I have a 7xx FICO score thanks to my pratice of having lots of credit avaliable to me if i need it.

[Blitanicle99]

My buddy who is about to be 21 has a 790 because he paid off his M3 in one lump sum. I wish...

[BABY J]

Whoever dies while owing the most people money wins.

Ready? Set? GO!