Hey guys, so a little bit of background - I'm 23, when I was 19 I let a cable bill go into collections, which is now a major ding on my credit report. I've been working really hard this year to build my credit, and have raised it almost 100 points. It was at around 570, now it's 652. Largely this is due to me finally getting my first credit card (basically a pre-paid credit card). So for the past few months I've been buying one thing a month, usually a pizza with my credit card, and paying it off on time. Will using it more, increase my credit rating more? For instance if I used it to pay for gas as well. So my balance is understandably really low on this card, $300 limit. How long should I apply for a card with a higher limit? I'm in school right now and will graduate in 2 years as an RN. I want a credit score of at least 700 by then. I feel like I'm making a lot of the right steps, but can't just erase my dings (not that I should be able to, or deserve to), so is this possible? I want to be able to easily get into just about any apartment of my choosing, and get a really good rate on a new car after graduation. I feel like I'm not in that bad of shape given my history.
That cable bill collection is a real drag, but the good thing is you are young and have plenty of time to improve your credit scores. In fact, by the time you graduate as an RN, that collection should be about ready to completely drop off your credit reports. And it sounds like you're already taking wise steps - using a small amount of your available credit and paying it off on time and in full each month. Using your card more at this point isn't really going to help you in any way. Just keep doing what you're doing, and your credit scores will continue to improve. You have a very low limit ($300), so spend less than $30 on the card each month and keep paying it off on time and in full. How long have you had your current card? Your credit score is in the "fair credit" range already, so in the next 6-12 months I would look into getting a student credit card like the Citi Forward card, which is a great option because it rewards you for being financially responsible and you should be able to obtain a higher limit. Good luck and please come back and keep us updated on your progress!
