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Thread: I know nothing about credit and need help

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    Veteran Member Nocturnelle's Avatar
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    Default I know nothing about credit and need help

    Ahhh, yeah. I'm 22 and when I was 18 I discovered credit cards. For simplicties sake I'll just list everything I owe/owed and what I need help with.. Sorry if this is confusing, my brain is mush at the moment.

    In January I received a summons for an old vet bill for 73$ back from October. I paid it in full with legal fees, turned to be around 150$. Paid.
    A few years ago I opened an American Eagle credit card and had a balance of around 250$, I paid that off a few weeks ago. Paid.
    I have an outstanding library card fee (lol..) of around 250$ that hasn't showed up on any credit reports that I have unpaid.
    I have my capital one credit card that has been revoked, that I have two payments left totalling 150$
    And a medical bill for around 190$ that my parents helped me out with. Paid.

    I rent and live by myself. My parents had to co-sign for me but my bills (internet and electric) are in my name and I pay rent through my checking account.

    That capital one card was my only credit card. They said the account is closed and if I want to reapply once the balance is paid I can.

    Okay.. After that quick summary, what can I do to improve my score? It's (estimated) at 579 right now and through the credit estimator should be at around 610 once I pay off my capital one card. The only outstanding balance would be my student loans (totaling around 2500 that my parents help me with and all payments have been made on time).

    I don't know if I can get another card in my name. The only thing showing up on my credit reports is a bill from my cable company from 2010 that was paid, my american eagle card that shows it was paid, my student loans and the capital one card. Is there a way to get that stuff off my report or do I have to wait 7 years? The loan is okay but I just.. Ugh, am so confused. I know next to NOTHING about credit and credit history/credit scores.

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    Default Re: I know nothing about credit and need help

    I am in the same situation as you. You can improve you credit by getting a secured credit card. You will have to put down a deposit but many help build credit.

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    Banned Melonie's Avatar
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    Default Re: I know nothing about credit and need help

    the other major ingredient toward getting another credit card in your name, in light of new lender regulations, is being able to demonstrate that have you an income that can be 'verified'.

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    Featured Member HaydenBlue's Avatar
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    Default Re: I know nothing about credit and need help

    Buy Suze Ormans book "Young, Fabulous and Broke" It taught me a lot about credit







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    Featured Member gingerstripper's Avatar
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    Default Re: I know nothing about credit and need help

    what you can do to help ur credit...is make the montly payment..on time.
    Lets say you have a bill of 100 bucks...pay it on time...then to get rid of the interest you will make that same payment or more in 2 weeks, it will cancel out the interest on the credit card. and youll end up paying it off faster.
    Also if you have a payment plan of like a year or longer...make sure you pay atleast 6 months of payments, dont try to pay it off in huge lump sums in like 2 months..cause your credit wont get a boost...thats where a lot of people go wrong. Im 24 and have pretty good credit. hope that helps.

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    God/dess SarahTime's Avatar
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    Default Re: I know nothing about credit and need help

    Quote Originally Posted by Nocturnelle View Post
    Is there a way to get that stuff off my report or do I have to wait 7 years?
    The only way to have it removed before 7 years is if there is inaccurate information being reported. Otherwise, it's there for 7 years.
    xoxo ~ Sarah




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    Featured Member Vamp's Avatar
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    Default Re: I know nothing about credit and need help

    Quote Originally Posted by Nocturnelle View Post
    I rent and live by myself. My parents had to co-sign for me but my bills (internet and electric) are in my name and I pay rent through my checking account.

    That capital one card was my only credit card. They said the account is closed and if I want to reapply once the balance is paid I can.

    Okay.. After that quick summary, what can I do to improve my score? It's (estimated) at 579 right now and through the credit estimator should be at around 610 once I pay off my capital one card. The only outstanding balance would be my student loans (totaling around 2500 that my parents help me with and all payments have been made on time).

    I don't know if I can get another card in my name. The only thing showing up on my credit reports is a bill from my cable company from 2010 that was paid, my american eagle card that shows it was paid, my student loans and the capital one card. Is there a way to get that stuff off my report or do I have to wait 7 years? The loan is okay but I just.. Ugh, am so confused. I know next to NOTHING about credit and credit history/credit scores.
    The first thing you need to do is find out what is wrong with your score. Anything we say here is just guessing. Go to www.annualcreditreport.com and get a free copy of your credit report. It is a government sponsered website. The report is totally free. It will list all the negative things that are holding your credit back. There are three credit reporting agencies Experian, Transunion, and Equafax. Each has their own website with tons of information.
    ie http://www.transunion.com/

    Keep in mind the ONLY on time payments that show up on a credit report are from loans and lines of credit. Your rent, electric bills, etc do not effect your credit score. If you dont pay your rent, electric bills etc they can put a collections notice on your report which would lower your score.

    When in doubt dispute! Any item on your credit report can be disputed. Each credit reporting agency has information about their dispute process. If the creditor doesnt respond the item is removed. So there is always that chance. Unpaid Collections are the hardest to dispute and have removed though. If the collections is paid and you dispute it they will remove it. You may have to mail in documentation to verify that it is paid off.
    Nature knows no indecencies; man invents them. ~ Mark Twain


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    Featured Member Vamp's Avatar
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    Default Re: I know nothing about credit and need help

    Some things I want to add..... If you have negative items weighing down your credit score NOTHING will increase the score alot until those negatives are gone. There are alot of myths out there that bankers and sales people play. A new credit card or installment loan wont improve 6 years of bad credit. Remove each the negative items that are listed when you go to www.annualcreditreport.com.

    Do not get loans or a credit card JUST to build credit. Do not make big purchases on a credit card to build credit. The only thing that builds credit is on time payments. So if you buy a pack of gum with a credit card and pay it off every month you are building credit. It really is that simple.

    In addition to your credit score (which is just on time payments) you will also want to understand your fico score ( credit score adjusted with long standing credit history, percentage of available credit, etc). www.myfico.com has a great education center on what is used in your fico score. When you go to a bank for a car loan or mortgage they are looking at your fico score. They will call it your credit score because most in the public dont understand the difference. Understanding each seperately can give you an advantage.
    Nature knows no indecencies; man invents them. ~ Mark Twain


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