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| *Loan,banking and credit>>>credit repair |
Help!! Need advice on repairing my credit? |
I am tring to repair my credit score and I have no open accounts to help build my credit. I only have had 2 credit cards and they both wereboth charged off and have a 0 balance. How could I help estabish a good payment history? Good for you for taking a step in the right direction: you're establishing good credit history for yourself! You can establish good credit history by opening a secured credit card account. The best ones have no annual fee, no activation fee, and they do pay YOU a tiny interest rate on your security deposit. Look around for "semi-secured" cards that require a security deposit that is less than the entire credit limit you will be offered. To compare fees and rates, type the following words into a search engine: compare secured credit cards It is a myth that you need to carry a balance - and thus pay finance charges - to improve your Fair Isaac (FICO) credit score at the fastest rate. 35% of your score is for payment history. You can score max FICO points by making a small, NECESSARY purchase once a month on the card and paying the card off in full every month, always on time. Examples: groceries, gasoline or a utility bill that you set up with auto-pay. Post-delinquency, you want to show a mortgage lender that you don't need credit for anything except a mortgage loan. Change your lifestyle so that you don't need to carry balances. You can get a free copy of your credit report from each of the 3 major credit reporting agencies (CRAs), once per year, at www.annualcreditreport.com. Look at your TransUnion credit report. It reports up to 48 consecutive months of activity, month-by-month, in a little box. Your goal is to produce a string of 48 consecutive boxes having OK in them, on every account, no finance charges. That will be a beautiful sight to a mortgage lender. 30% of your score is credit utilization: how much of your credit limit is used up by your balance? You need to keep your balance below 30% of your credit limit, or you will hurt your FICO score. For example, if you have an $800 credit limit, you must not have a balance higher than $240, which is 30% of $800. If your credit cards are secured, you can just pay the start-up fees the first month. After 6 consecutive ontime payments-in-full for 6 consecutive months, ask to have your card converted to unsecured, have your security deposit returned with interest, and have your annual fee waived. If the company refuses, try again at 9 months and 12 months. The company may convert you to unsecured automatically. If your card goes unsecured and you have no more fees charged to it, leave it open. 15% of your FICO score is for length of credit history. The average credit user has an oldest open account that has been open for 14 years. They also score you on the average length of time all your open accounts have been open. You cannot improve your score by closing credit card accounts; you can only hurt your score. Just don't pay money to keep the account open (i.e., an annual fee). Please vote: Did this help? Source(s): www.myFICO.com "What's In Your Score" Life experience, and reading much expert advice online. Just use your cards minimally and make the payments the same day you use them. I hate credit cards. They got me into so much trouble! I ruined my credit future (cars, housing, everything!) because I charged way over what I could afford! I blame them, they make it too tempting especially in such a materialistic society where a min. wage employee can get a card with a $5000 limit! That's insane! You can go to your bank and get a secured credit card. You give them like $300.00 and the credit card has a limit of that. It is a great way to start rebuilding, or just establishing good credit. |
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