If you have credit cards keep them around 20% utilization rate when the billing cycle ends. People who say pay off fully are incorrect because then it looks like your not paying towards anything and credits want to see you can properly pay towards something on monthly basis . If you dont I'd open a finger hut account or capital one secured card. 2 quick ways to build credit for lower credit users.
I am 35 with perfect credit the highest! I know what your thinking...I am not rich by any means! My mom gave me the best advise when I turned 18 and I’ll pass that on to you! They want to see you pay off debt repeatedly every month debt can mean anything from $1.00 to infinity. So the fasted way I was able to start building and raising my score from an early age was to open a credit card or two! YOU HAVE TO HAVE A PLAN and most importantly SELF CONTROL! I would take my credit cards that of corse had super high interest rates and once a month I would use them in a gas station to buy a soda or candy bar 5.00 purchase! And then I would go home and pay it off at my computer right away. Do this with 2 cards once a month and pay it off right away. Paying it down to zero once a month will avoid you paying any interest at all meaning zero interest! Easy as that! Like I said all they want to see is action on your card so use it for a small amount and pay it off right away back down to zero! Watch your score grow but most importantly never cancel a card! Having a card open for years raises your score too! If you don’t want to use a card anymore put it in a drawer Instead. This is the best advise I can give anyone... remember you don’t have to spend a lot of money to gain credit it can literally be a soda or a candy bar! Keep it manageable and don’t lose control!
Which credit company do you use to quote a credit score? They never seem to agree. Many times the experian number is a lot lower than the other two, but yet Experian seems to be contacted the most.
If you have a way of fixing it, instead of bankruptcy, I would certainly give it a go, but sometimes you are so much in debt that there truly is no way to fix it,but to file bankruptcy.... I just finally got my 10 year Bankruptcy to be fully removed from my credit reports... I thought once it got removed that my score was going to go up by at least 40 points, NOT, Didn't go up at all, but at least it didn't go down, I have heard horrible stories about it making people's credit score lose tons of points! Anyways, my friend, even if you have to file bankruptcy, I know that you won't make the same mistakes ever again, you live and learn, and slowly keep growing your credit scores.... Good luck my friend...
I have never myself of anyone I know ever took a 90 point hit on my credit score from only one hard inquiry, about 3 points is typically the max a score will drop from a single credit card hard inquiry. Something else hurt your score, check it out
The entire "credit reporting system" is flawed beyond all common sense. Example: I showed up on the "credit radar" 30 YEARS ago. In that time, I have had the basics (credit cards) to the more stringent home mortgage. However, if you look at the "age" of my credit, it reflects 4.5 years (deemed "fair" by Experian/Equifax/TransUnion). Thus, my credit score is rated, in part, as if I was my 25 year old daughter. It isn't as if the agencies don't have the data by which to reflect my credit history correctly, they just don't deem it important (despite all accounts, some in the 6-figures, that were paid on time and several paid off before their contract maturity date) UNLESS we are talking about a $300 Kohl's card I had a late payment on. Once. THAT they have lingering on like a cancer. It doesn't matter that the account was immediately brought current and then paid off entirely a month later. Score dropped 65 points for that late payment, gained 2 points when it was paid off. Which brings up another flaw. If I open an account (you get good human points if your credit portfolio is "diverse) then the age of my credit history is reduced and I lose points. If I close an old account, I lose points even though it has never been late, reduces my D/I ratio, etc. Then, these agencies score you on an entirely different "model" from auto finance and mortgages. Lastly, but certainly not all inclusive, are the hoops you have to go through to get something corrected on your file. They are quick to penalize you, but excruciatingly slow when it comes to correcting an error they have confirmed IS an error. Example: GMAC made an error which, when they reported it on my file, plummeted my score almost 100 points. It took each agency over 6 months to correct it, and despite my not having any late payments/closed accounts/new lines of credit and in fact, my debt ratio dropped during that time, when the error was removed from my report? My score only improved 35 points.
Bottom line here is this: If any other business was as inept in their practices as the "Elite Three" (aka: Judge/Jury/Executioner), they would be out of business.
If you don't use a card, the lender will close it for non-use. Your credit will take a hit for doing NOTHING wrong. The government should shut down the "Elite Three" until they come up with an ACCURATE way to reflect the financial stability of someone.