LIke a lot of college students did, I got into some debt. Not a great amount, but enough that they piled up on me and with my meager part time job was unable to pay off. I also acquired a lot of medical bills that I am just now paying off.
In about a month, I will be debt free finally (hooray!). I have learned to budget well, to be fiscally responsible, and to keep up with due dates for bills and have not paid anything late in about 6 months.
Obviously I wanted to wait til I was debt free to rebuild. I was thinking about getting a secured credit card (my credit score is 520 so I am not elligible for anything else as far as I know). Are there any that don%26#039;t have an annual fee? I understand about it being secured and that I%26#039;ll have high interest. I want to get one, charge something minimal each month, and pay it off immediately. Is this a good idea to begin rebuilding?
I know raising my score will be a long time effort, but how soon can I expect to see my score begin to improve?
As soon as I pay off my debt, how can I begin to rebuild my credit?
I had college debt too that effected my credit. Try the Orchard Bank Credit card. I was able to get a 300.00 credit limit and the only fee I paid was the annual fee. Even if you have to pay for other fees associated with cards designed for people with credit problems at least you have credit. You will begin to rebuild your credit score and get yourself back in the 600s faster. Don%26#039;t max out your new cards. Use about 40% of your limit. It gives you a better score and lenders like to see you know how to handle credit. Try to get more than one card. Here%26#039;s a good source for cards. http://www.creditfast.com
As soon as I pay off my debt, how can I begin to rebuild my credit?
I think Orchard has a card for people with bad or no credit.
As soon as I pay off my debt, how can I begin to rebuild my credit?
You are right on track except for one thing. If you pay off the balance in full every month (on secured card) you won%26#039;t build credit because it will show a zero balance. What my kids did to build credit was get a secured card- never charge more than 50% of your limit. Then pay all but $10.00 off each month. Use it only on things you would have to buy anyway (gas for example). Leave the $10.00 balance each month so that you have an ongoing balance (which helps your scores). Credit scoring system looks at several factors - one being the ratio of credit used against the credit line amounts- keeping that under 50% is a big part. Good luck
As soon as I pay off my debt, how can I begin to rebuild my credit?
The only way to build credit is to go back into debt.
That%26#039;s how you build credit. You have to borrow money and make payments. To keep your credit high you have to keep borrowing money and making payments.
why not live debt free??? You%26#039;ll have more money if you are not making payments and paying interest.
Your income is your most valuable wealth building tool. You%26#039;ll never get ahead financially with payments.
As soon as I pay off my debt, how can I begin to rebuild my credit?
have you ever tried applying for a bad credit credit card. You might be able to get one of those. You never know. You could always try to pre qualify and see how much credit you can get. Getting a secured credit is a good idea. expample get one for 300 bucks. Charge iy and on the day before due date pay it all off. Thats going to be good for building ure credit. You can even try getting bad credit loans. Putting the money in ure account collect a small amount of interest while you pay back the loan but dont spend that loan money. That would be a good idea too. Good luck.
http://www.finance-experts.com/apply-cre...
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