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584 to 620 in 6 months ??
I don't have any debt. I guess my main problem is anytime I want to buy something I just go buy it. So cashflow isn't a problem but now I want to buy a new house. I was told that I needed to get my score up to at least 620 and that I should get 1 or 2 secured credit cards for a couple hundred bucks each .. use them and pay them off every month. Could doing that raise me the 40 points in 6 months or do I need to do more? Also how do those cards get reported? I'm assuming getting a $300 secured card then charging $300 on it and paying it completely off each month is the way to go? Would it make any difference as far as the monthly reporting goes if I spent $300 a week and paid it back off each week.

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Revolving Credit

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You want to keep those cards open for as long as possible.  Showing that you pay on time each month is a great way to build your credit.  Having different types of credit open is another great way to build credit. (car, credit card, etc...) If you decide to use a secure card, I would suggest not maxing it out each month, but instead, what you do spend, just paying off that balance in full each month.  So let's say you have a $300.00 dollar limit.  Purchase something that won't max out your limit in one month. (100.00 pair of shoes) Then make sure that amount is paid off on or before your due date.  That way you avoid paying high interest, and compound interest.  And it will show creditors and lenders that you can handle your bills.  If you max out your card it could flag as high risk (even if you have the means to pay it back.)  Also, you can take out a short term loan and only use the money to pay back towards that same loan.  Then, you will only be out the interest, but the good payment history gets reported to your credit.

I hope this helps.

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Best of both worlds

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The key to keeping just over 1% of your total available credit line from all credit cards reporting and not paying interest is:

Learn when your statements come out.  Charge that 1% a week or two before the statement.  You normally have a grace period that interest is not charged.  So if you charge 1% a week before the statement comes out and the statement then shows your balance and reports that to the bureaus, you can then pay it off.  All within the grace period not getting charged interest AND having your reports show that you have a balance.  Best of both worlds.

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Home loans under a 620

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Lenders are able to go down to a 580 credit score for FHA loans. They are not always easy to find but we have a few that we work with I can refer you to. Please email or go to our website if you need any help.

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I can't find the website - can you please give a phone number

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personally i would recommend staying under 6 percent, AMEX said i had a high debt ratio at 21 percent. I went from 515 to 747 in 13 months.

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I don't agree with needing to leave a partial balance in order to show payment history.  From experience, I believe that my Discover card reports my balance to the credit bureau when they issue my statement.  I've pulled my Experian report nearly a year ago, and they show the HIGH balance every month (not the payment due and not the current balance).

I've got a credit score tracker on one of my credit cards.  I got a new credit card with a CL of 2100.  I put a high balance of around 830 dollars(roughtly 40% utilization on that card) and saw an immediate dip of my credit score from 712 to 697.  I immediatelly started keeping the balance under 30% utilization (around 600 dollars) and saw my score go up to 726.

I also one of the 0% interest for 12 months offers while buying furnature.  They put a ballance of roughly 2100 dollars on a card with 2500 CL (nearly 85 % utilization).  My score took a hit from 726 to 688.  I just made a payment to bring the utilation to 35 %.  I'll know next month how that will affect my score.  Hopefully it's just a temporary hit.

The lesson here is to keep the ballance below the 30% treshhold (and never miss a payment).

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I am doing the same thing your are doing trying to raise my credit score to a 620 so I can get approved for a mortgage loan. I recently done this and it work get two secured cards for $300 but don't charge 300 on the card because your credit utilization will be at 100% which is not good. You should always keep your credit utilization below 35% so when you get the cards charge between 40 or 50 dollars and when you pay the bill pay most of the balance while leaving only 10 dollars on the card this will help show credit utilization and payment history. If you pay it off completely your not showing any payment history and it would be like you never used the card. Also make sure whatever secured card you get reports to all three bureaus Orchard Bank is a very good card for this. I hope this helps I'm almost to my goal of 620 and I've seen my credit score go up more than 40 points in the past 3 months. Good luck.

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Hello, I am also in the process of purchasing my first home and was trying to raise my credit to qualify for a home loan. I have a secured credit card, and was not aware of the 30%, of my credit limit, and maxed out my cards. Which affected my score unfortunatly. I am now in the process of trying to rebuild my credit score back up. i was reading your information, which was very helpful, but confused about the 10 dollars. Please explain. Once i recieve my bill do I pay the amount due and leave 10? Or pay the amount and leave 10 dollars until the rest is due? Wont I be charged interest by not paying my full amount and leaving 10? Please help me understand this method. I will truly appreciate it. Thank you.

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Helpful to 3 out of 4 people

Yes, it will go up alot of pints in the first few months.

Regarding utilization, even if you have high utilization in the first few months and then pay it down it will not hurt your credit, they only look at the utilization at the moment you pull and not from months before. Just make sure it's under 20% before applying for any credit. (give it at least one week from the statement closing following the payoff)

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Keep utilization ratio at below 30% look fro secured cards as people have mentioned below. However, don;t forget to check your local credit union -- they will work with you to get you a secured or unsecured card fi they can from them. Credit unions are more of a friend than a bank since they are non-profit.

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Credit utilization is easy to get a "A" on. But then they tag you with "Aveage credit line age" and that drops if you get a new secured card. The "average" credit karma wants before issuing a "C" is 5 years average...average!

Then, I was late on some mortgage payments well over a year ago. I've been on time/early all year. I still have a "F" on my on-time payments and according to the numbers, I will have to be on time at least an additional year before I get to a "D" grade.

It's depressing. I pay everything on time and I can not get this credit to move at all. We got one secured card and I pay everything on time. Nothing changes ever. How do you do it??

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30% credit use only

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 I understand what you are going through. Credit is a system setup to mainly benefit the lender not the lendee.  I tried the secured card route for $300 and it did not work out so well. I though charging the full amount an paying it off every month would help it does not. Using 100% or even 80% of your available credit will damage your score no improve it. The beureas want to see that you are managing the risk of having a card responsibly. I would recommend getting a card for $1000 minimum $2000 even better and using only 30% to 50% at most ! you should see a good point increase from that. 

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