Hello All, Everyone says this is the best place to get good credit advice, so here my first post! I am 23 (almost 24) and I do not have much credit. The credit I do have is not good. My FICO is 550. One of my student loans went to collections in December 06 (I paid the balance off in full), but it is a derogatory in my report. I have one student loan in good standing and the other one has had some late payments noted on my credit report. Total student loan debt is about 14k. I have a collection from 2004 which I paid off in 2005. Now for the good stuff. I have an auto loan (7600 balance) in good standing, never late. A credit card in good standing (balance is at about 900 out of 1000), and I recently got an Orchard Bank CC that I haven't used yet. I got the card because I heard they are the best for re-establishing credit. I also have a payday loan paid off from 2002 which is on my report in good standing. My question is, what steps should I take to build my credit? My goal is to be able to get a mortgage next year and also qualify for a GOOD credit card (like a Citi or Chase) etc. I am going to have my credit card paid off in full, and I plan to consolidate my student loans, but what else should I do? I feel I am mature enough now to take care of this situation. I also make decent money and I would like to see my credit go from 550 to 650 in a year, I know it is a process but I've been told it can be done, thanks!
We saw a jump on our credit reports after we paid down our balances to under 50% of the limit. Also, we get a few point jump every few months by just letting our good accounts age with on-time payments... Good luck!
Pay down your balances on revolving accounts under 33%. Dispute your inquiries on Equifax, if any. Sign-up for True Credit in order to remove them from Trans Union. Dispute the old, paid collection.
Thanks for the advice! Should I pay down my revolving lines to zero balance or should I carry a balance? Also, regarding the student loan that was paid off, should I try and have it removed completely from my credit report? Here is what it says: Pay Status: 120 Days Past Due Now, that was back in December 2006 when it charged off, I paid the thing off in March 2007, and it even says zero balance, so what should I do? I talked to the organization I got the loan from and they should it as paid in their system. I think this is hurting my credit the most! One item not listed is my government credit card, it was a Mastercard I had when I worked for the gov't, but it doesn't appear on my credit anywhere, any advice? Thanks again!
Attempt to remove the student loan. I wouldn't carry a balance if I could pay it off. There is no substantive evidence that doing so is more beneficial for FICO scores than a zero balance. You could call the underwriter for your old military account and request they report it.
Thanks, good advice! The card was through Citi, do you think if I write them that they will report it to the three bureaus?
