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Question by : Starting a new career and desperately seeking to repair my credit. Tips?
Hi all,

I’m 23 years old with a credit score of 581 (HORRIBLE, I know). I have about $ 60,000 outstanding in student loans, $ 20,000 auto loan, $ 1,000 credit card bill, and $ 1,500 bank loan.

My poor credit score is due to having a checking account go to collections (negative balance), as well as having a credit card go to collections also (not my current one; a different one that I had prior).

I am learning from my mistakes and am wiser now. In college I was too focused on school and social activities to pay much attention to my finance. I will be starting my new job soon and am desperately seeking tips to repair my credit. What do you all advise? Thank you.

Best answer:

Answer by Rick B
You have $ 60k in student loans?!?!!? Yikes! I hope you are earning at least $ 50k a year.

I would save up a baby emergency fund og $ 1,000, then pay off each debt. I’d make the minimum payments on all of them and focus all my extra money on the smallest one first. Once that is paid, I’d take the money I was using for that debt and pay it to the next smallest debt, etc.

In other words, I’d word Dave Ramsey’s debt snowball.

I’d also look up those old debts and try to make an offer to clear them up.

What do you think? Answer below!

Question by : Starting a new career and desperately seeking to repair my credit. Tips?
Hi all,

I’m 23 years old with a credit score of 581 (HORRIBLE, I know). I have about $ 60,000 outstanding in student loans, $ 20,000 auto loan, $ 1,000 credit card bill, and $ 1,500 bank loan.

My poor credit score is due to having a checking account go to collections (negative balance), as well as having a credit card go to collections also (not my current one; a different one that I had prior).

I am learning from my mistakes and am wiser now. In college I was too focused on school and social activities to pay much attention to my finance. I will be starting my new job soon and am desperately seeking tips to repair my credit. What do you all advise? Thank you.

Best answer:

Answer by Alex
I ruined my credit in college too and it took a long time to recover – but I learned a lot of lessons and self discipline, so it was like continuing my education It all starts with budgeting, so you can continue making on-time payments and make a plan to pay off those debts early to save some interest charges. The negative items on your credit report will fall off after 7.5 years, so you’re not stuck with those mistakes forever. You’ve got at least 4 accounts active right now, so there’s no need to open new ones – just keep those in good standing.

Below are some sites that might help. Mint.com is a free budgeting website that links to your online accounts – it takes some of the work out of tracking spending and has graphs (called trends). I like most of Dave Ramsey’s advice and his baby steps program is a simple program to help you get started. The debt reduction calculator can help you prioritize which debts to pay first and see how making extra payments will save money speed up the pay-off dates for each account.

Without knowing interest rates or minimum monthly payments, I’d start by creating a budget, eliminating credit card purchases, putting $ 1,000 in an emergency fund and then paying off the credit card. This gives you some cash in savings in case something unexpected happens or even if a large bill is due the day before payday. Paying off the cc will stop those interest charges and slightly increase your credit score by reducing your credit utilization ratio (balance:credit limit).

What do you think? Answer below!

Question by Helga G. Pataki: Tips on getting a good credit score?
I’m 20 years old and got my first credit card a few days ago.

My credit limit is $ 2,000. I know I shouldn’t go anywhere near the limit if I want a good credit score. Up to what percentage of my available credit should I use? Do I get penalized if I use too little?

My older brother once said that it’s better for your credit if you carry a little bit of balance rather than paying it all off at the end of the month. True or not?

Thanks.

Best answer:

Answer by Phere
Pay your bills on time.

Know better? Leave your own answer in the comments!

Question by alphamodel: Anyone know secret tips to raising credit scores?
How can I have paid negative accounts deleted? Is there a way to do it without having to wait years?

Best answer:

Answer by mstrywmn
Call the credit companies & explain that they’ve been paid. You may need to supply proof.

Add your own answer in the comments!

Question by Nina: Why is it so hard to get a credit card company to lower your APR if you are an outstanding customer? Any tips?
I have tried several times and I never get any results. I am always told I already have the best rate. My credit is excellent so this sounds like something they tell everyone.

Best answer:

Answer by Steve D
You don’t say what rate you are getting. Right now, the best rate for a card with few rewards is about 7.5 – 8.0 percent. Cards with rewards tend to carry slightly higher rates (to make up for the rewards).

Know better? Leave your own answer in the comments!

Question by Philip N: Some good tips on raising my credit, i’m trying to get a car?
Well all I owe are a couple of cell phones people, I’m only 21 and that’s all I had since I been 18. My credit is like a 549, and I was wondering what I could to raise it?

Best answer:

Answer by Frank Fitton
There certainly are no quick fixes in attempting to raise your credit score. The most important thing is to stay on top of things and know whats in there. There very well could be errors in your credit report due to things misrepresented, even fixing these is going to take time. In order to raise it though you have to know what’s in it for sure, as well as exactly what effects it.

One area I think that is very important to address in these times. Is to make sure that you don’t lose any of your cards. Companies are canceling cards that are not being used. This could be really damaging if its one of your oldest cards. Remember this, and just use the card every once in awhile to keep it in rotation. You need that available credit in theory at least.

Anyone who’s interested can check out my blog on how to improve your credit score at… http://www.thedebtgazette.com/2009/08/improving-credit-score/

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Question by steph: I have horrible credit any tips on how to improve it????
When I was 18 I had gotten my first credit card… then a second then a third… i max them out and regret doing that!!!! I’m now 26 and 2 yrs ago i paid off all my debt… But now I need to improve my credit score… Any tips on how to do so?

Best answer:

Answer by RAY
You should be under way of having a higher score already. You don’t need tons of cards as you well know. Just get one and use it responsibly. Save your need for credit for a car, home and other assets instead of liabilities. If you have to put a meal out or a pair of jeans on a credit card, the reality is that you cannot afford those things. You’ve been in the credit card trap… don’t go there again. Get copies of your credit reports and make sure they are up to date.

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Question by boricualuv2871: My employer is deducting the credit card processing fees from my tips. Is this legal?
I work in NYC as a waitress and get paid 5 dollars an hour.

Best answer:

Answer by cainvest1
Yes it is legal. As long as you are paid minimum wage your employer can deduct the cost of a credit card transaction from the tip.

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Question by Will T: What’s a good online resource for tips on building credit and saving money with a low income?

Best answer:

Answer by Jerry T
Spend less than you make.

Pay your bills on time.

Increase your income.

What do you think? Answer below!

Question by Ginger: What are your Credit Tips ?
I’ve had established credit for a good number of years now, and over the years I’ve learned things I wish I had known in the beginning. To make this a question, and to be able to share it with this new younger credit generation, what are your positive credit (credit cards, savings, etc.) tips that you have found that have worked for you to keep debt down, and keep a good credit score ?? I’ll name a couple and everyone else please add on so we can help new ones to this crazy credit card game.
don’t open too many cards at once.

Watch getting those Department store credit cards, as their interest rates are generally VERY high.

Best answer:

Answer by RubberSoul_61
Always pay more than the minimum payment.

Know better? Leave your own answer in the comments!