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MStrength25

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I need some advice on improving my credit please!!
I have several accounts in collections. i want to build up my credit. its currently 583. i wanna get it to atleast 650 within the next 6 months. I have a current active capitol one card with a 300 credit limit. would the best way to build my credit be to pay off the collections and use about 250 of the card each month and pay it off in full? I need some advice on this asap.

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Do pay collections ASAP

When a bill goes into collections, that puts a negative on your credit score that you want to improve as fast as possible.  Fact is, the negative will remain for 7 years as required under the |Fair Credit Reporting Act (a federal regulation).  The sooner you get it paid off,  the sooner those positives will pile up.

As for the credit card, your best choice would be to keep its usage between 10 and 20%, which would be $30-60 with its current credit limit.  Paying it off in full every month would be perfect, and at this low amount, that should be a "piece of cake."  And you may be given a higher credit limit much faster this way than if you used more of your credit limit, even if paying it in full.

Go to the financial tools section on this site and use the Credit Simulator program so you can see what the results would be on your credit score with different financial choices.  This tool makes it easy to do the "what if" analysis without the pain of actually doing so, then finding out it wasn't the best choice.

Hope this helps.

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