First you need to get rid of that debt it’ll help
Make payments, if its been sold to a 2nd party dispute it
Look up how-to videos on YouTube. Brandon Weaver is very informational.
Get a secured credit card.
Pay more than minimum and don’t be late
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Please go to a credit union! They can help you build your credit, they are superstars at that!
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If you’re able to get a cosigner on the car loan that will help. I had horrible credit, but my husband’s was fantastic and by having him cosign I got the best rate available. Then just continue to make payments on time and your score will improve.
Everyone here is giving really good advice. My opinion would be to pay off your debt you’re lucky it’s only 2500 versus 25,000. Pay as much as you can on this debt as often as you can get it out of the way so you can get a decent interest rate on that car when you’re ready to purchase
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Log into Credit Karma to monitor your credit. If you qualify for a small balance credit card apply and put your gas on it each month pay it off. Continue to pay down your debt each month and keep your payments on time. This should increase your score in a couple months.
For starters you’re going to need about a 650 credit score in order to get a car otherwise you’re going to have to go to one of those crappy Tote The Note places and pay 21% interest. So getting your credit under control as a good thing. This is not going to happen overnight so anybody that tells you that can get your credit score where they needed to be in 3 to 6 months is lying to you and don’t give them any money. Go and get yourself a secured credit card Discover and Capital One are the easiest to obtain. I have a $300 secured credit card with discover 3 months later they Rose my limit to 1500. Same thing happened with Capital One. I had a Ford 98 credit score I now have a 685 credit score and that’s just with two credit cards for one year
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How we got our credit to great… we went to Conns and bought a $800 Bose Surround Sound System and financed it through them. We put 1/2 down and made 4 months of payments. Conns reports to the credit people every month. That boosted our credit the best.
Get a secured credit card through your bank, use around 9% for credit maximization…keep all accounts in a good balance, and don’t run your credit
Pay off what debt you have and keep a negative balance on your credit cards. Yes, you can over pay on your credit card. It will give you a negative balance. Use it as you normally would use your debit card. You’ll get the perks of a credit card (cash back, points, build credit). Don’t have a balance if you can help it, if you can’t, keep it under 30% and pay it off ASAP.
Question, so i have around $7k in collections…my car note and student loans are current. I just got a secured credit card and 1 unsecured. Should i not try and pay the collection accounts and continue to make current payments on the good standing accounts?
Get you a secured credit card through capital one. Use the card but pay it all off within a week of spending it carry over a $10 balance every month so that way you are “using” it but paying it off rapidly. Dont buy nothing you cant afford to pay cash either so that you know you have the money to go in and pay it off immediately.
Call your creditors negociate with them many times you can get the amount owed reduced by 50%+ and they will show up within 45 days and raise your credit score by approx 25 points for each thing paid off.
Do this and within 6 months you will be ready to buy. Be strict and responsible with your money!
We went through the credit union got a decent rate. Credit was around 580s. No deposit. Got a credit card now its helped raise my score
I built mine up using a secured credit card from my bank. $500 is a good starting amount seeing as how you have to put that money up front.
Pay everything on time and all debt off as soon as can little at a time
I got a brand new honda with like a 550 credit score…paid off my credit cards now im at a 750
Dave Ramsey! Using credit is a scam. Pay with cash and you won’t need it.
Start with a secured card and a small personal loan work your way up.
sign up for the credit karma app- it will give you tailored tips specific to your situation AND help you find a credit card that will give you an approval
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Get copies of your credit reports from the agencies and dispute items that can come off, old collections, hard inquiries etc. That will help raise your credit score.
This is all great advice
You need to sit down with a banker or financial advisor. This service should be free through your local bank.
Tips from a past bank manager
- Do payoff collection account. Yes your credit will dip, but collection look terrible to a lender
- Use the snowball method to payoff outstanding debt. Start with smallest and put extra money on it to knock it down, then move to the next debt and put your old payment plus extra on it. Look up on Pinterest for a chart explanation.
- Set up auto pay for on time payments. These are important.
- If you don’t have one, then get a low credit card with a 250- 1000 limit. Use to purchase gas and payoff on time. This will dip your credit at first, but then it will bring it up quickly.
Nerdwallet.com had a ton of credit advice that is really good.
Also it takes six months to a year too build credit.
You gotta start by getting a secured credit card. Usually you have to put a small amount towards it. Don’t go over 30% and try to pay off ASAP if used. I started with a 524 and now I’m just a couple points away from a 700, took me about a year. And start paying a little each month on your debt. Even if it’s 10 bucks, it shows your trying.
Dont get a credit card! Just go into a credit union amd get a small loan, make your payments for the day after you get paid so you always have money in there and it automatically comes out and you dont have to think about it. Worked like a charm for me I went from a 518- 750 in under 2 years not sure exactly how long it took but it didnt take long