How to build credit

Discussion in 'Credit Talk' started by lesarin, Aug 4, 2002.

  1. lesarin

    lesarin Guest

    IM 23. How should i build credit? i screwed up pretty bad when i was 19. Have 5 chargeoffs. Tu still lists them all. Ex, and eq only list one.

    I have 7 cc's oldest 2 years. other six within the last year. all no derogs.

    i note loan for 4,000.00. Should have been charged off, however company was very nice and 6 months after not paying let me start paying with the oringinal payment, been current for 2 years.

    car loan for 18,000.00 5 year loan. had for full year. no derogs.

    motorcycle loan 16,000.00 had only 4 months.no derogs.

    Since im so young. Credit history seems to be the major thing.


    what can i do to raise my score?

    Also i need a letter to settle with a CA with removal of credit report listing?
     
  2. tix

    tix Well-Known Member

    1. Keep all of your current accounts current
    2. Work on your negative items
    3. Do a search for "Settlement Letter"

    tix
     
  3. KCPaul

    KCPaul Well-Known Member

    Continue with the positive paying history! Always hard to come back from screwing things up a bit (someone who was in CCCS at your age).
    Also, you may want to rid yourself of a CC or 2 when your Debt to income ratio allows.
    And of course, would not apply for anything new.
    Good luck on the right road.
     
  4. lesarin

    lesarin Guest

    so i have just 4 more years and all the derogs will be off. SO it should be right in line with my getting a new car in 4 years. i was raped with 17.9%.

    as far the the cc's go. 3,000 is my highest limit, and all the others are a farce around 300 each.
     
  5. rblues

    rblues Well-Known Member

    Well, I think you've done an exemplary job of building credit so far after so many chargeoffs. The fact that you even got credit after those Coffs is quite the feat.

    You did get raped at 17.9%. What are your current scores with EQ, EXP and TU?

    Keep up the good payment history. This is the best way to build credit!
     
  6. creditwork

    creditwork Well-Known Member

    Keep a positive payment history. Make larger than minimum payments. Once you have your debt to 0, borrow to exercise your credit. The best way to build credit is to borrow and pay it back. Always borrow when you don't need it. Credit is for the people that don't need it, when you do need it, you will probably not get it.

    www.creditsense.com
     
  7. suedan217

    suedan217 Well-Known Member

    Creditwork, I don't understand why you should borrow when you don't need to borrow. Wouldn't that just increase the chances that something could go wrong. He already has two substantial loans. Why would he want to continue borrowing, especially if he does not need to. I always thought that you should only borrow when you have to and only what you need to.
     
  8. picantel

    picantel Well-Known Member

    I do not know if anyone else shares my opinion but at the age of 23 you do not need 7 credit cards. You are asking for trouble. Also, you are probably losing points because you have too many revolving accounts. I would drop down to maybe 3 of your best cards and dump the rest.
     
  9. Kinetix

    Kinetix Well-Known Member

    Maybe you missed what he said :)
     
  10. Brenda

    Brenda Well-Known Member

    7 is not to much, I have over 30 CC my Tu is at 680 to 720 it has alot on how much Bal have on them,and how many you have open. . 50 % or less on 4 to six cards. Are you at your limit with all cards,if so pay them down you score will go up mines does.
     
  11. Kinetix

    Kinetix Well-Known Member

    I kinda agree with both of you, though most only need two or three cards, unless you got some kind of fetish on collecting CC's like a friend of mines has. I'm sure most will agree here that responsible utilization of your cards is the key like Brenda says, regardless of how many cards you have.
     
  12. creditwork

    creditwork Well-Known Member

    Thank you. It seems I am often misunderstood, I am not encouraging borrowing for the sake of borrowing, I thought he wanted to know how to build credit. I know my method works. My sister has over 150,000 of available credit, both my wife and myself also have credit in the mid 100s. BTW, I am not promoting the use of my method, do it any way you can, but you need to borrow and pay back to build good credit. And if you want to build credit, you need to do it when you don't need it. If you try to borrow because you lost your job or had a medical emergency or got divorced, you will probably not be able to get it. Be prepared.

    www.creditsense.com
     
  13. lesarin

    lesarin Guest

    Its called Big down payment. I put up $5,000.00 cash on each loan.

    Like i mentioned i only have a total of 6,000 credit line. out of the 7 cards. one is 3,000.00. its pretty sad to be getting only 300.00 CL when you open up an account. When i was 18 i got a few cards starting at 2,000.00. I guess that just shows im not good with credit. Past 2 years have been perfect, so hopefully i have changed.
     
  14. Kinetix

    Kinetix Well-Known Member

    Lesarin,

    Considering your Charge-offs are probably relatively within reach of renegotiating with the OC for settlement for deletion, I myself would try that route first, considering if you can come up with the cash for it. I would probably recommend going through PlanetFeedBack as it seems a pretty good starting point to reach someone higher up in the chain. I would avoid negotiating with CA for now, as most are unreasonable. I assume the OC is reporting on your reports aswell, try to get those disputed through CRA's if your attemp via PFB fails, try to deal with the CA's listing after you've tried to take care of the original, you might knock out two birds with one stone, settling with OC can usually result in getting deletion of the CA attempting to collect on the same account.. GoodLuck

    PS. do your Due Dilegance on this board, to find the appropriate course of action, and ask away any questions you may have befor maybe "waking a sleeping dog"
     
  15. Brenda

    Brenda Well-Known Member

    Don't hope you change ,Make it stick. Just pay the bill on time if you get in trouble call the CC and come here for help. If you can pay down a few debt say one card you score may go up. I pay down one card my score want up take your 300 limit and pay it off.


    I am also like creditsense I feel Credit should be use to make you money like starting a CO BIG or small I try geting a loan at the bank the guy checkle at me . We got to stop buying that Big Screen Tv,shoes we don't need. Some use credit to go to school ,buy a house, start a Co this is very go reason. We got to think before we say Charge it.
     

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