I've been trying to raise my credit score lately, after some poor choices made in my early 20's and a bout of unemployment. I do not currently have a credit card, but I was told I should get one to try to raise my credit score. Well, I've applied for a few, but I have been declined due to my poor credit score. However, I have been told that if you keep applying for them, that can lower your score,too. Anyone have any advice?
Well I also have bad credit because of a lack of understanding when I was a teen. I wouldn't keep trying for credit cards because it will lower your score. There are ways to build your credit by purchasing something from Rent A Center. I heard that if you pay your bill on time, you can be considered for a credit card. The only negative thing about RAC is they over charge you for items. You'll end up paying double what the item costs, but it is a way to get your credit in good standing. If that doesn't seem like an option cellphones are linked to your credit as well. You would have to buy a contract phone and make the payments without missing one. This is pretty difficult because no one know where they will be in 2 years. Those are the only ways I know to raise your credit score, but good luck I hope everything works out for you.
The best thing to do is talk to your bank representative about your score and discuss better ways to raise your credit score. There are credit cards made specifically for people with extremely low credit scores that help build your score. They are reloadable visas and master cards that you load with your own money and you do get charged to load them and use them. This sounds crappy but no credit card company can trust you with a credit limit if your credit is in bad standing so they do this to see how well you can handle having a credit card with fees applied and since its your own money you are using they dont lose anything. This is usually the only kind of card available for people with bad credit standings. In addition, you are entitled to a free copy of your credit report each year (All three: Experian, TransUnion and Equifax) and can bring it in to discuss it with a credit specialist at your bank. It is normal to be totally lost when it comes to understanding credit reports so having someone there that knows how to interpret them is a huge help. Keep in mind that even if you pay off all your debts this doesnt guarantee a good credit score. In fact, when big debts are paid off in a lump sum your credit score usually drops because you arent "managing" your debt you are simply removing it and thats not what credit companies are interested in seeing. The trick to a good credit score is showing the creditors that you can manage debt succesfully and a healthy mix of liquid assets, loans, credit cards and investments is key for an awesome score. Don't be discouraged - this sounds like hard work but with a financial advisor by your side you can achieve a good score within a few years.
This can help you out, but it can also be a damage to it as well. You just have to keep applying because you may have to settle for one with a low limit and an annual fee. This is what I had to do because of an injury which forced me to miss some bills.
This all depends on what your credit looks like at the moment. Steady applications for you may work but for others who are not in the same financial situation it may be a negative way to go. Each credit inquiry from an application takes anywhere from 1 to 3 points off your score and when you are declined these companies can leave a negative remark on your credit score referring to why you weren't selected for that card. After a few declines you can actually get declined just because of how much you have recently had your credit checked and declined by others which is pretty much an endless cycle. Careful with over applying - definitely not the way to go for everyone.
Applying for multiple credit cards will lower your score. Have you tried getting a secured credit card. They are easier to get and will often report to the credit agencies. Do you belong to a credit union? Can you join one? Open a savings account. After a few months, get a secured loan against the savings account balance. Pay it off. This will start to build your credit. I rebuilt my credit by getting credit at Spiegel and Newport News. They were very easy to get.
I too have mad some bad choices. I would like to get my credit score up, its pretty bad. I just don't know how to. I have a whopping 300 for a score. How can I raise that?
I have heard of people doing this before. However, you need to be careful because if the card is not open for a long enough term it can damage your credit report. So you should carefully weigh on this before you take out the card.
This thread is really helpful. I also have poor credit, I mean who doesn't in this economy now? But I didn't know if taking a credit card would be the best way to go. I do not make A LOT of money, but I could handle a small payment if I was to receive a card. I have never really tried because I am afraid of the consequences if I am unable to pay again. I appreciate all of the ideas that some people have put here, I never knew about the options that credit unions offered. I'm thinking that's the place I'm going to stop next myself.
You need to get some accounts that approve EVERYBODY. Fingerhut approves everyone for at least $200-$300. Chadwicks also approves everyone. Order make some small purchases and either pay it off or make the payments ON TIME without fail. After about 6 months your score will start going up. ALso try Masseys at Log In they approve everyone for at least $100
Not sure this is an option but we co-applied for a credit card with our oldest daughter. That is a way to have her credit score jump by using ours. We will cancel our side as soon as she has the credit score level she needs for rental and loans. Not sure you would find a "good samaritan" to help you that way ....
If you are declined for a credit card that lowers your credit score. It lowers for each card you apply and are declined for. Prepaid cards do absolutely nothing for your credit. They make life much more convenient, but don't affect your credit score at all. Go to Capital One. They have several options, including a credit card for people with semi-bad credit. The interest rate is high, but the point isn't to use it much. Buy a pair of socks each month or something like that, and pay it off. They also have secured credit cards, where you deposit money (like $100) with them and they give you a credit card with that amount as your credit limit. There are fees involved, but as long as you use the card (moderately!!) and pay it off, or make the minimum payment ON TIME every single month, your credit score will go up. My daughter has a Capital One and not so great credit and we've watched her score go up regularly just by paying the credit card on time. She also has taken out payday loans and paid them off on time and that helped her credit score too, but that's very, very expensive and you have to have the discipline to pay it off on time.
Okay - stop applying first off, because you are lowering your score. Next actually get your score and look over what is dragging your score down. Somethings may be about to fall off due to how long ago they occured,while others may give a clue on what you show focus on. Rather than a credit card you might simply want to get something with a recurring payment due that you can pay every month. If you're on the internet alot maybe get a wireless thing from cricket. Then again you should probably talk to someone with a lot of experience and knowledge regarding these situations - like someone at a local bank or credit union.
Having current credit does help your ability to get a loan, but quit applying for those if you cannot get approved. You need current payment history. I suggest a small car title loan that you can pay off in a year or less. This way, you have current credit payment history and the interest rate is similar. You can talk to a debt counselor to help you out as well, and let you know what your options are.
I would definitely recommend trying to get a secured credit card from a bank. It reports to your credit agency, the only difference is you actually have money backing up the limit so the bank is not at any risk. Have you tried clearing the past things from your credit report? Sometimes you can settle pretty cheap, just make sure you don't pay anything until you get the deal and writing and it says the company will remove it from your credit report.
The only way to raise your credit score is to use credit. But yes, applying for and getting rejected from a credit card will damage your score. I would suggest going to a bank and having them help you. They can typically get you set up with a credit card that may have a low limit, but it will build credit none the less. If you can find a credit card with a low annual fee or even better no annual fee that's even better.
Find a secured credit card. You will qualify for one regardless of your credit history or your income. You will have to provide the financial institution with a security deposit which they will hold to secure your account in case you don't pay your bill, but they report to the three major credit bureaus...which builds up your credit. Make sure that you keep your spending under control and pay your bill on time each month. After a year or so, you should be able to qualify for a non-secured card wiht the company of your choice.
Save some money and then go the route of the secured credit card. A credit card can definitely help raise your credit. You don't want too many and you want to keep a majority of the balance available. Make payments on time and you will be fine.
I'm in a very similar situation. Except, I've never had a credit card in the first place, so I haven't even damaged my score that way. However, nobody will give me a credit card because I don't have a stable income, and very much proof I pay my bills. I live at home, so I don't have typical expenses. The only real bill I have is my cell phone bill, and several companies have told me it isn't enough. And now I've hurt my rating by applying for multiple cards. I should have applied for a card when I was in college.
