I just found this sight today and have always been unsure of my credit. I'd never checked it until today. I just assumed it was bad because I was denied a credit card about two years ago primarily because (according to the cc company) I had settled a previous debt with Citi. I was looking into Lexington etc... because frankly I didn't want to deal with it, but I was inspired by everyone on this site. So I decided to use creditnet (link from this site) and found out I have a score of 657 based on Equifax, which they call "fair". I got all three reports but only the Equifax score. My Q's: 1. Will the scores from Trans and Exp be approximately the same as Equi? 2. How does a 657 stack up overall? I was able to fiddle with some things on that site and found that eliminating my balance on a closed Discover account ($400) would increase my score to 685 which would classify me as "good", so I figure I can't be doing too bad. 3. I paid off early an MNBA account I used to finance a laptop about three years ago. I'm assuming this would be a positive listing but it is absent from all three reports. Should I bother? 4. I searched the whole report and saw nothing marked as late (to my shock, b/c several should be), but alot of things for a given month here and there were unmarked, which is described in the legend as "no data reported." Is this bad? Good? What to do? 5. I have never spoken with a home loan officer or mortgage broker. How far am I from being eligible for home ownership? 6. I have no open accounts except student loans. Should I apply for something to build credit? Will I even be approved? Sorry if these are stupid questions. THANKS SO MUCH FOR ANY REPLIES!!!
It sounds like the main reason for your scores are lack of credit / credit history. The best wasy to build up a history is to get a secured credit card from a major bank. Use it, not more than 30% utilization, and pay it off every month....within 9 months to a year you will see your scores increase, they may even take you off of "secured" status, and give you a regular credit line. Keep paying it off on time. After a year or so, apply for another, regular CC and there's a good chance you'll be approved. Oh, by the way, welcome to CN...read, read, read and you will soon become an expert!
Thanks for your comments. Do you think a secured card is the only way? Are all of the cards in the "bad credit" section on the site secured cards? If not, would any of the unsecured ones be an option? Thanks!
Well, secured cards are not the only way to go, but that is what I used a few years ago to really build up my scores...now around 740-760 on all 3 CR's. and I can apply for, and be approved for, any card now. You don't want to make a lot of applications, and get denied, as the inquiries will lower your scores. With the secured card, they will make an iquiry but you're just about assured of getting the card. As far as the other CC's for bad credit, I don't know, I never used the ones from places like CAP1, Providian, or Orchard, but others here have. You have to watch out for the annual fees they charge, and low credit limits
Thanks for the reply. I guess in regard to secured cards, how much bang for my buck do I get relative to the fees etc... How quickly will my score improve. Say I pay off the $400 and am at a 685. Would I be in the ballpark of more favorable unsecured cards? Would I qualify for a dept score card? Dillards, Lowes, Circuit City etc... If so , would that be a better choice than a secured card? Also, will a secured card show up as secured on my CR? Is that bad? Thanks again!
