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how can i raise my credit score on a really tight buget?
I am on disability, my daughter is still in college. We are on a really tight budget, so how can I raise my credit score and not go in debt by doing so.

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Improve credit score on a tight budget.

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There are quite a few ways actually.  The answer is quite lengthy but I will give you a break down on it.  There are 5 main categories that impact your credit.  

#1.  Payment history.

#2. Credit Utilization

#3. Length of Credit History

#4. Mix of credit

#5. Inquiries

Based on these 5 categories, here are some basics on what to do:

#1.  Pay your bills on time.

#2.  Keep credit card balances below 30% of your limit (ideally keep them @ 7% of your limit which seems to be a magic number)

#3.  Maintain a MINIMUM 2  and ideally 3-5 revolving (credit card) accounts and NEVER close those accoutns out.  The LENGTH of time you have a payment history accounts for 15% of your score.

#4.  You will also want to have an installment loan of some type.  Any loan that has a set payment for a set length of time qualifies (IE. Car payment, home, etc.)

#5.  Avoid hard inquiries. IE.  Any application for the consideration of extending a loan.  Inquieries from sources like Credit Karma have no impact.

Finally... understand that you are already PAYING heavily for a poor credit score.  You are paying more in obvious places like interest rates but you are also paying more in places that many are unaware of:  Car insurance, home insurance, health, Job promotions and Job Applications (Yes, employers are more and more regularly checking credit for employment and promotions.)  I JUST called my insurance guy because despite an improved credit score and better driving record, my insurance was going up over $30 a month.  Having a much better credit scor enow, he ran my credit and DRASTICALLY improved my insurance coverage while dropping my payment $57 a month!  You are already PAYING for that poor credit score.  Why do I say that?  Commit to the cost of employing an expert.  Do without the starbucks, the cigarettes, the netflix channel, WHATEVER... but you are already trapped in credit prison and FREEDOM feels much better.  Let me tell you.

Seek the counsel of a credit expert on strategies to improve your scores (such as my company).  Consultations are free.  Hope that helps.  Let me know if you need further assistance.



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Outdated collection

How old do collection debts need to be to be taken off of my credit report?

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