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John9196

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How can I help rebuild my credit score after a financial mess?
I am 29 years old and I’m trying to get my credit together. Here is my history (take a deep breath haha):

So I turned 18 and got a ton of credit cards; I had up to 15 at one point! I had almost $20,000 in debt and when I was 25-26 I lost my job for a couple of months until I found a new one. I managed to have 2 charge offs and was late on about 5 months of payments (some 90-180 days delinquent until I caught them up). I got a second and third job, joined a debt management company (NOT a debt consolidation company; I paid every penny I owed) and paid them all off! The only stipulation of this debt management company is that the companies close your credit card line after your debt is paid off. Only 2 of my credit cards remained opened with an open credit line, one $2,200 credit card and one $1,000 store credit card. I then opened a $750 credit card and these are the 3 cards that I have now.

My credit score is currently 589; I have a $1,050 balance on my $2,200 card, a $490 balance on my $1,000 store card, and a $500 balance on my $750 card. I have been paying my debts down (I’m great with my payments and credit now! Took me all that to straighten up!) I paid off 2 collection accounts that I’m waiting to drop from my credit, but the main issue is that my credit history is very short, since all of my older cards were closed after my debt management plan! So I’m basically waiting to build up a new length of credit history! Also, the only other thing on my credit report is that I have about $24,000 in student loans (I am still a student so I have not had to pay on these yet; so they’re in good standing). So I have recently done the following:

-I have written a goodwill letter to all of my credit card companies explaining what happened, etc. hoping they will remove my late payment marks
-I have written a pay-for-delete letter to each of the 2 charge offs that I have on my report (I wrote them to the company themselves because that’s who’s listed on my credit report; I have no idea who the collections companies are or how much I still owe!)
-I am paying off all of my balances about $500 a month at a time and not incurring anymore credit card balances.
-I am building up a savings for myself (nothing huge). It’s hard for me to save when I have debt! Haha.

Is there anything else I can be doing to help my credit score rise?? Should I be working on anything else?

Thanks everyone!

John

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Top Contributor
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Sounds like you've made

Good progress.  As far as I can see from what you wrote, Your best bet is to get that credit card debt paid down and keep it below 30%  Your utilization rate is over 50%  As a rule of thumb, I try to never owe more than 25% of any credit limit on your credit cards. ( I use a sharpy and literally write that number on the card)  

Keeping your balances low and paying off the cards every month will do more to raise your score over anything else.  The age of your accounts will take care of itself over time.

and Remember,  "it's not how much you have but how you manage it"

Good luck

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