M.P. asks from Orem, UT on October 09, 2010
Credit Help!! - Orem,UT
Ok so ugh my credit. Do to some past unpaid bills, my family making me let my sister use my credit to buy a bed for her son (I was not happy about it AT ALL. I was only 18 and was so excited about my increasingly good credit, at the time). I've paid everything off, but my credit is still sooooo horrible!! I've tried applying for different cards so that I could try and raise it that way, like at best buy and walmart (I needed a new computer and had 50% of the money and just wanted to pay the rest off) but I of course have been denied. What else can I do??
So What Happened?™
Note: I don't have any unpaid bills, Everything is caught up and it's just the bad credit which is left over. Oh and I live with my parents so I don't have any bills that way and I don't have a car to pay off. So It's just the bad credit.
S.S. answers from Salt Lake City on October 10, 2010
Pay for everything with cash for a few years. Get the Dave
Ramsey book from the library and it will totally change the way you think of money and help you get a great credit score soon. Good luck.
S.G. answers from Dallas on October 09, 2010
The only options may be a rent to own store, layaway, or a pawnshop. Rent to own you will pay more over time, but if you need it now that may be a good option. good luck it will workout.
S.O. answers from San Antonio on October 09, 2010
No pay day loans. No signature loan places.
Daveramsey.com and Financial Peace University
3 moms found this helpful
D.P. answers from Pittsburgh on October 09, 2010
"Credit" as we know it is largely an Amercian myth! You don't need any kind of "credit" for most things. Even to buy a house, all you need is a track record of paying rent on time for several months.
Stop applying for credit cards and close the ones you have. If they are open, they are eating up the small credit line you MAY have available for you. It counts against you so make sure to square away and close any accounts that might be open. You can get a credit report for free and see specifically what "dings" are on your credit.
Become a Dave Ramsay fan and learn that Cash is King! You can do just about everything in the world with a debit card and the cash to cover what you need. Good luck--you're young--the sooner you put this concept to use the easier your life will be!
2 moms found this helpful
J.O. answers from Denver on October 09, 2010
Like so many others said, stop applying for credit cards. Each inquiry is a "hard inquiry" that will lower your score. If you still have credit cards, you still need to use them to show that you can handle the credit. I suggest using them for gas in your car BUT make sure you pay off the balance every month (perhaps put aside the money from you account every time you get gas so you have the money when the bill is due). Another thing you can do is go to optoutprescreen.com and "opt out" from receiving credit card offers. Once this hits your credit your score will increase (anywhere from 5 to 20 points) and you will stop getting credit card offers in the mail. Really, you DON'T need more credit cards.
1 mom found this helpful
K.G. answers from Fort Wayne on October 09, 2010
forget the credit cards!!!!! Keep saving pool all of your money to get that new computer. Go to DaveRamsey.com you do not need credit to get your things. If you have everything paid off keep it that way. Cash goes alot further. I bet you can come up with the cash and pay less for your computer than if you used a credit card. its called wheeling and dealing. believe me you do not want to get caught back up into that mess. get yourself going with a cd or money market acct and you will not believe how much your money will grow for you! Make your money work for you not you work for your money.
1 mom found this helpful
C.G. answers from Denver on October 10, 2010
First off, pull your credit report. Find out what your FICO score is. You need to see what's on there that is delinquent or erroneous. Get those paid off and contest the errors.
Every single time you apply for credit it can reduce your credit score by up to 50 points.
If you have a credit card, do not charge more than 25% of your balance. The higher amount of charges to the credit limit will also drop your score.
Talk with your bank about getting a secured credit card or a personal loan. You have to have a different mix of credit to increase your score.
I went back to school and took a student loan (didn't need it) and I'm using it to improve my score. It was cheaper than buying a car.
Be diligent about your credit reports. All 3 will tend to have different information on them and it is a lot of work to get them cleaned up. I've been working on mine since April and have increased my score almost 100 points. I anticipate by April of next year my credit score will allow me to purchase a house.
1 mom found this helpful
A.M. answers from College Station on October 09, 2010
Have you tried a starter loan place? I went through one of those signature loan places and its great :)
E.M. answers from Johnstown on October 09, 2010
The more applications you fill out and are denied for, the more strikes against you. Wait several months before filling anything else out. What about utilities? Are you current on them? Do you even have utilities in your name? What about your % of available credit vs amount charged vs. income? Car loans? Rent? Time at your job? All these items factor in to your credit score.
M.F. answers from Minneapolis on October 09, 2010
I took a finance seminar a few years back. They said the best way to improve your credit score (for those that already have money) is to take out a personal loan to yourself. You already have the money on hand (but don't use that unless you absolutely have to) to make your monthyly payments. You could do it for a few months longer than the moeny you have on hand, that way they are reassured you will be a worthy borrower. You may want to explain the purpose why you're doing this. Be honest with them, since you're not actually taking their money. I hope this makes sense, email me if you have any questions.