How to improve my credit score for free?
prudence asked:
I have a debt of 897.00 on my credit score that has been paid already, I need to build my credit to buy a car my credit score is 550 and I’m not planning on getting a credit card to build my credit. How can I build my credit?
Leon
I have a debt of 897.00 on my credit score that has been paid already, I need to build my credit to buy a car my credit score is 550 and I’m not planning on getting a credit card to build my credit. How can I build my credit?
Leon
Tags: Buy A Car, Buy Car, Credit Card
August 13th, 2009 at 4:43 pm
You might reconsider the credit card. The credit score thing is a relative indicator about how you handle debt. My in-laws found themselves in a pickle a few years ago when they tried to rent a car for a trip when theirs was in the shop. The time had long past when simply showing a drivers license and paying some cash will do the trick. A credit card was needed. Going to their bank they had a problem. They had paid off their house, their only debt, years ago. The bank gave them a secured card, the loan officer called it “credit as if a bike with training wheels.” When they demonstrate how they could borrow and repay appropriately, they would fit the standards to allow for better terms. They did, and the bank did.
Bear in mind, the credit score does not make quick strides. A reasonable use of credit, prompt payments, these things will help, but it may be a couple of years before you move the hundred or more points to get the good stuff that happens then. Remember too, too many cards is bad, and too many applications for cards is worse. So get your Sears and Penney’s cards, maybe a gasoline charge card, and either a Mastercard or Visa (or an American Express if you can, their input gives a lot of weight), but if you start to run out of fingers on one hand to count these cards, you need to stop. I heard a money expert on TV a few years ago say that she only carried two cards. She wouldn’t say which two, but if I had to limit to two they would be an American Express and either the Mastercard or Visa that my bank would issue because of a checking and savings account I have with them. From those I really wouldn’t need the Sears, Penneys, and whatsit’s gas cards.
Do the MC/Visa thing first, then AmEx. And if you get the AmEx, pay them full and pay them first. I was on a trip shortly after getting my AmEx and ran over some things on the highway. Stopping at the next service station, the man came out and said, “Looks like you are going to need some tires.” (They had not popped but were almost down to the rims). There were too many places, and some in bad places, and maybe a bit of depressing hyperbole, so he was going to replace all four. He gave me a price and took my AmEx card to the phone and asked, “I just wanted to see if her credit was good for this.” He looked surprised at what he heard next, said his thank yous and hung up. “She told me that you could buy the whole gas station if you wanted.” (I was no where near rich enough to actually do that, but if AmEx trusts you enough for their card, they will trust your judgement, at least until they don’t get paid on time)
This doesn’t happen overnight so be patient.
August 14th, 2009 at 12:25 am
Establish positive credit lines. Utilities, cell phones, etc don’t count on your bureau (Usually they only report if you owe them money)
It basically leaves you these options:
Credit card
line of credit
auto loan
mortgage loan
Bottom line, credit card is the easiest to get. Credit cards are useful in rebuilding your debt because a banker can see how you are managing your available credit balance- that is, if you have a $2000 credit card, is your balance managed well, or do you owe $1997 on it.
if you are looking for the free credit score and report usa national site, check out this site
Here you can see your 3-in-1 Report from all three credit reporting agencies and your credit score.