*Loan,banking and credit>>>credit score

Why won't my credit score improve??!?

I got in over my head with credit card debt while in college...was late on bill payments, had 2 cards sent to collection agencies, etc. I have since paid off the 2 cards in full (although it was through these agencies) and have a new credit card that I am being really responsible with in order to improve my credit.

I have been tracking my credit score through Experian. It was at its lowest last September. It has since improved 30 points...30 points in a year?? It seems so discouraging. I know this is my fault but now that I have paid off my other two cards and have a new card that I am using responsibly, can I expect to see increases more often? Or will it take ANOTHER year to improve 30 points?

Any answers/suggestions to help improve the score are appreciated, thanks!

Very important! DO NOT PAY ANYONE TO REMOVE BAD CREDIT ITEMS FROM YOUR REPORT. It does not work. You can send in 'correctly worded' letters disputing items on your credit report, and they may even get removed, but the creditor can put them right back on. If it is a legitimate ding (i.e. you did in fact pay late) then it will remain there for around 7 years.

Credit score takes time to improve. There is no way except paying bills on time, and making smart financial decisions to get your credit score up.

In 1991 I graduated college with well over $14,000 in unsecured credit card debt, and probably a pretty bad credit score, if I had known what that was at the time. I was being turned down for cards, loans, etc... Collection agencies were calling the house all the time.

Since then, I have raised my score significantly. How?
Went to my credit union and got a debt consolidation loan. Credit unions are usually more willing to loan to their members then the average bank. Had regular payments made out of my savings account, and canceled most of my credit cards.
Bought a car, and financed it. Paid more then the minimum every month, and paid off the 5 year loan in 3-1/2 years.
Bought a house. (This was tough given my poor credit history), but made the payments on time, with an additional applied against the principal. Lost that house in the divorce, but bought another one, and then again.

Now my credit score is in the high 700s (It has been 16 years since it was in the toilet.) Why not in the 800s? Because I do not have enough credit history. (Like 23 years since I got my first credit card is not enough history?)

Do not feel discouraged because your credit score is only going up 30 points in a year. Time is more important then what you do over a single year. What you do over 5 years is what will make the biggest difference. Then what you do over 10 years, etc...

Also, paying off your credit card in full every month is not the end all and do all of financial responsibility that some folks will try and make it out to be. It actually does less to increase your credit score then paying it off over several months. That is why car loans and mortgages are better then credit cards for establishing good credit. They prove that you can pay consistently over time. Keep a running balance of $50 on a credit card for a year, and you will increase your credit score more then paying it off in full every month. (This of course comes with a cost. That cost is interest.)

Money and credit are tools. And, tools are not free. If you can keep your average daily balance on your credit card at $50 even at 24% interest it is less then $12 a year in interest. Is a dollar a month too high a price to increase your credit score by more then 30 points? Only you can make that call.

When your credit score gets above average (somewhere in the 600s if I understand correctly) then paying off your credit cards in full every month becomes the smart financial move that everyone makes it out to be.

BOL

Hi usually if you maintain good credit with the card you have for a year it shows you are responsible.. Try getting a gas card or department store card they are a little easier to get then use it only once a month or so and pay it off each month.. This will bring your score up.. Since you had bad credit to begin with it will take time to get it up there so be patient keep paying on time and if you are using a prepaid credit card in the next 6 monthes or so apply with like capitol one they will prob give you a limit of like 200 or 300 but it is a credit card and will report as such.. Sometimes it takes a few years to get your credit back after it has been tarnished ... Good luck

just as an after thought everytime you apply for credit or someone pulls your credit report it does go down a few points..
been there did that
Have the negative items removed. . Usually companies charge hundreds of dollars to simply pull your credit and send correctly worded dispute letters鈥攖his is the key鈥?.people will tell you that you can do this yourself for free but the truth of the matter is that the credit bureaus will throw your letters away or simply reject them. There is an easy to use online kit that will deliver the results you want available for just $19.95 at the source website. A similar kit is being sold via infomercials and radio talk shows for seventy dollars more but they try to solicit you repeatedly for other services after the fact.
www.creditrepair101site.com
It takes 7 years for something to be erased for your credit ratings. So even if it was 5 years ago... you got two more years before things look up
Good question.

For once, the Experian score is not worth much to a lender if it is a Vanguard (FAKO)score. It will be the FICO score that matters (www.myfico.com)...
A collection on your credit report is still bad , even if it is paid. Actually when you paid it, you updated (re-aged) that negative information and that hurt your credit score. On the up-side- the older that information gets the better your score.
You could try to dispute the information, but it is not worth to pay to have it disputed- googling "inaccurate credit report information" and "dispute" would bring up a lot of free well- worded sample letters you could use...
What is also important right now is to add more positive information. A loan and another credit card might help with that
...therefore my suggestion is to add more positive tradelines to your credit report and wait for another 6 months-a year. You might be surprised...
You did a great job getting back on track by now, the next steps should be easier...
Good luck !