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newspyguyxxx

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21 years of score lower than 600, how can one rebuild credit that was never there? Bankrupcy?
My score has always been below 600 since day one. Not knowing what to do to clean things up to obtain credit, would you suggest i file bankruptcy for a fresh start? I have lived my life using cash only. I live in a house and have 2 cars that i financed and are now paid off.

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NO on bankruptcy!!!

Bankruptcy is too often used to avoid paying for debt caused by too much buying on credit.  Your situation is far different because you do not have much of a credit history by living on a cash-only basis. Very admirable, but it doesn't build your credit score. The cars are paid off and that credit history is no longer current.  If you are currently paying a mortgage, that could have a positive impact on your credit score, but you do need more.

Here's a way to begin building credit because your goal is to have a good amount of credit AVAILABLE even if you are not using it up.  Start with getting a credit card, even if it has to initially be a 'secured' card.  A secured card requires depositing a few hundred dollars in the issuer's account and that is usually the credit limit you are given.  Check with your bank or credit union to see what kind of credit card you might get. You want to keep 'usage' between one and 20 % in a month and pay in full what the statement says every month. 

One way of using a credit card easily is to have a regular monthly bill (power, phone, insurance, for example) charged to the card every month (you can usually have this done automatically) and, when the statement comes in, pay it.  It will be almost like living on a cash-only basis but you will be improving your credit score virtually painlessly.  And you don't pay interest on any charges unless you don't pay them in full every month.  Try it and see.

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