Building credit
12-19-2012 | 05:17 AM
#11
Registered User
Joined: Jul 2008
Posts: 4,252
Likes: 3
From: charlotte, nc
i just glanced over this article but it sounds like if you pay your back taxes and then contact the IRS they can help you get it removed from your credit?
http://www.prweb.com/releases/taxs/a...web9779328.htm
http://www.prweb.com/releases/taxs/a...web9779328.htm
12-19-2012 | 01:42 PM
#13
Registered User
Joined: Jul 2009
Posts: 8,657
Likes: 170
First the Official Building Credit Thread is the place to start.
As mentioned get credit cards, two preferably, but only really use one. Next, use that card as often as possible, for every expense possible. Whether its bills, gas, food, whatever, put it on your credit card. Pay 95-98% off every month, so you have a very minimal amount left accruing interest. Accruing interest is key in short cutting the credit score game, but of course you don't want to be dealing with interest rates or interest debt that burdens you. That's why you're looking at only keeping 2-5% (depending on the original amount).
Between my car payment, and that strategy, I went from zero credit to a 785 in less than 24 months.
Also, never leave any bill that has your SS number tacked to it hanging (medical, energy bills, etc.). Pay those asap, though I realize the energy part won't really be applicable to you. But you should understand what I'm saying.
As mentioned get credit cards, two preferably, but only really use one. Next, use that card as often as possible, for every expense possible. Whether its bills, gas, food, whatever, put it on your credit card. Pay 95-98% off every month, so you have a very minimal amount left accruing interest. Accruing interest is key in short cutting the credit score game, but of course you don't want to be dealing with interest rates or interest debt that burdens you. That's why you're looking at only keeping 2-5% (depending on the original amount).
Between my car payment, and that strategy, I went from zero credit to a 785 in less than 24 months.
Also, never leave any bill that has your SS number tacked to it hanging (medical, energy bills, etc.). Pay those asap, though I realize the energy part won't really be applicable to you. But you should understand what I'm saying.
A solid score is important but it only points to your 'worthiness' not your 'ability to service the debt' which are two key differences. Lending is tightening up and an underwriter is going to be looking for history, income and the 'risk' in lending to you. Score is just the starting point.
12-21-2012 | 04:19 AM
#14
Joined: May 2002
Posts: 6,597
Likes: 1,051
From: Somewhere in NJ
First the Official Building Credit Thread is the place to start.
As mentioned get credit cards, two preferably, but only really use one. Next, use that card as often as possible, for every expense possible. Whether its bills, gas, food, whatever, put it on your credit card. Pay 95-98% off every month, so you have a very minimal amount left accruing interest. Accruing interest is key in short cutting the credit score game, but of course you don't want to be dealing with interest rates or interest debt that burdens you. That's why you're looking at only keeping 2-5% (depending on the original amount).
Between my car payment, and that strategy, I went from zero credit to a 785 in less than 24 months.
Also, never leave any bill that has your SS number tacked to it hanging (medical, energy bills, etc.). Pay those asap, though I realize the energy part won't really be applicable to you. But you should understand what I'm saying.
As mentioned get credit cards, two preferably, but only really use one. Next, use that card as often as possible, for every expense possible. Whether its bills, gas, food, whatever, put it on your credit card. Pay 95-98% off every month, so you have a very minimal amount left accruing interest. Accruing interest is key in short cutting the credit score game, but of course you don't want to be dealing with interest rates or interest debt that burdens you. That's why you're looking at only keeping 2-5% (depending on the original amount).
Between my car payment, and that strategy, I went from zero credit to a 785 in less than 24 months.
Also, never leave any bill that has your SS number tacked to it hanging (medical, energy bills, etc.). Pay those asap, though I realize the energy part won't really be applicable to you. But you should understand what I'm saying.
I say that because I chose not to carry any recurring credit card balances as I was graduating college until I was ready to buy a car/house, etc... With the exception of a few large purchases that I carried a month or two, I always paid in full. My FICO score has been floating around/above 800 for almost 20 years now. There are many factors that make up your credit scores. For me, the bottom line was to use them wisely, pay them off, have a long term relationship with just a few cards, and generally be smart about things.
12-27-2012 | 11:06 AM
#15
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Joined: Oct 2012
Posts: 228
Likes: 0
I am quite young too, but not as young as you. I pay off all my credit cards in whole every time regardless of how many thousand I spent that month. I never paid a cent to interest. The banks and credit card companies keep upping my limit. My FICO credit score is 780+.
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