Homeowner · Orange, TX · Member since 2008 · 12 posts · 2 votes
I have a question. So this past year I've really come around a long way with keeping up and mantaining my credit score. I'm kinda young and made a few mistakes with my credit cards. Who doesn't? So I had about 3 accounts that I've defaulted multiple times about 2 months in a row late 30 days, the next one was 30,60,90 . 30, 60, 90 and another one just one late month. That's pretty much all that is wrong I don't have any collection accounts or anything so would do you think it's possible to reach a 741 credit score and be eligle for those (excellent) credit people credit cards. I'm about a year from that whole situation. Will I be able to reach that if i stay consistant or will that not even be possilble till it falls off 7 years from now?
Los Angeles, CA · Member since 2008 · 557 posts · 70 votes
18y
I don't know how the credit repair companies work for short cuts. But I do know that if you keep your oldest credit card open to establish a longer credit history, and pay everything on time from now on, and keep your revolving credit line balances low, and don't open a lot of revolving lines of credit, you can have extremely great credit in about 5 to 7 years, higher than 741. More like 780 +
Eugene, OR · Member since 2008 · 36 posts · 0 votes
17y
Matty is right in that the lenght of your credit history is key in maintaining a good credit score. The older a credit card, the better it is for your credit. Just remember that new credit cards actually HURT your credit for the first year. It is important to not be late as new lates have the biggest neggative impact on your credit and yes we can remove neggative information such as lates, bk's collections and chargeoffs bt there is a process and there is no magic eraser that just wipes out your bad credit. Some items can take a while to remove. It's also important to remember that payment history only equals 35% of what makes p your credit score so make sure you are adressing all 5 factors.
Real Estate Investor · NJ · Member since 2008 · 23 posts · 0 votes
17y
Yes Caesar, you most definitely get that high credit score and you can do much faster than you think!!!
Those late payments can be removed so don't worry so much about that. There are several additional factors that make up your credit score.
Pay your bills on time, don't apply for department store cards, don't apply for too many credit cards (3 is enough), try to keep your utilization under 50% and don't close accounts even if you do not use them.
You can have the score you desire well within 12 months!!!
Be proud of yourself for staying on top of your credit, educating yourself about it and being responsible with your credit going forward.
Real Estate Investor · NJ · Member since 2008 · 23 posts · 0 votes
17y
yes, I do know this subject. I do this for a living...
Dept store cards typically have the highest rates, worst fees, worst penalties and if you can only use them at dept stores they tend to create situations where people buy items (clothes, shoes, electronics) that they cannot afford.
If you can get a dept store card, you should be able to get a secured credit card. Many people start off rebuilding their credit using a secured credit card. I would never recommend getting a dept store card. There are many other ways for someone to rebuild good credit history without having to get a dept store card.
If that is what you currently have, then paying on time will definitely help you. However I for someone looking to establish or rebuild credit that doesn't have any credit cards I would recommend many other options.
fyi: I opened a Macy's card many years ago before I knew all the rules about credit. Its the only dept store card I own. I have rarely used it and when I have I have paid it on time if not in full each month. Even with an excellent credit score the interest is 25%. That is not a good deal!
Eugene, OR · Member since 2008 · 36 posts · 0 votes
17y
If you can affoprd to buy clothes than yes get department store cards. If you decide you need to buy something use the card and pay it off right away. Keep your balance under 50% of the limit at all times, below 35% is even better. All REV accounts will help you if you follow those simple rules.. just remember that while the account is new it WILL neggativly affect your credit for the first year.
Real Estate Investor · NJ · Member since 2008 · 23 posts · 0 votes
17y
I disagree. I don't just look at credit as leverage, I look at complete financial wellness. In order to truly maintain financial wellness, a good rule of thumb is that if you do not have the CASH to buy clothes, electronics, etc, then DO NOT BUY THEM. If you don't have the cash to buy something, then you CAN'T afford it. Be responsible with your credit. Open as few cards as possible but be responsible.
Financial wellness isn't just about credit, its about balance. its very easy for people to put everything on a credit card and not have any personal attachment to how much they are actually spending. That is why casinos give people chips instead of letting them bet with cash.
Buy consumer goods with cash. If you don't have the cash, don't buy it. And....save.....save for the things you can't afford. That's what people used to do.
Real Estate Investor · NY · Member since 2009 · 2 posts · 0 votes
17y
with all the credit card companies either raising their interest or cutting their lines, maintaining a good credit will be harder if you have balances outstanding. CASH IS KING. if you have it then pay your debt down and use your credit wisely. no late payments and your credit will start going up in 3 mo.
Homeowner · Orange, TX · Member since 2008 · 12 posts · 2 votes
16y
So it's been almost 2 years since I last posted and I thought I would give an update on my situation for others who might be in a similar situation. When I made this post I was at a 545 fico score and now it's 706. over the past year I've basically disputed everything that was hurting me. I was able to get all of my delinquint accounts made current except for 1 account that is showing 30 days late only on one bureau. So answering my own question yes it CAN be done.
-Caesar