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Question By
Amora12

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I'm trying to fix my credit score and it's less then 500
I've been trying to get my credit score back in shape and I've been trying to get a credit card but NO ONE will approve me how the hell am I supposed to fix my credit?!! I've tried capitol one secured mastercard and nothing how else can i fix it?

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If you have a lot of negative information on your credit report then it's going to take time.  When I began working on mine 18 months ago my TU was in the low 500's.  It'll be in the low 700's once my new limits show up.  I started by challenging my 3 charged off accounts.  They were all close to 7 years and possibly over.  I've gotten them all removed from TU and 2 of the 3 from Equifax and Experian.  I'm challenging the last 1 on both those reports right now.  I had a $300 Captial One card for 7 months, paid it ontime and kept my usuage lot.  They raised it to $1300 and then I was able to get some additional cards and raise my limit to $8100.  I keep utilization under 15%.  Take advantage of the Credit Simulators available here and through Capital Once.  Some banks and credit unions have a credit building loan that you can use.  Basically you give them say $1000 and they give it back to you with a loan of $1000.  Once you pay it off (some as you go) they give you the loan amount back.  It'll cost you the interest but it's worth considering.  Low utilization and a $5000 or better total limit gave me a very nice bump.

Reply by
hotwheels1971

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  1. If  capital one is asking me for $200 and I have to make monthly payments on the $200 that's mine not credit then what's the sense? I might as well put it on metal end or a card like that. Only thing is I won't build my credit. But they say its refundable I don't see how unless my card is going to say $400 or they're gonna send me the $200 back to me in the mail. I never had a card so that's why I'm asking. I might sound ignorant but I'm just someone who doesn't understand how this works. Trying to leave my parents house with my kid and I can't do it if I'm being asked for money when I am too. What's going on that I don't understand. Any help??

Reply by
hellojello25

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Helpful to 1 out of 1 people

Secured credit cards are different than unsecured. Secured are for people in your situation. Basically you give them $200 and that's how much you can spend on your secured line. If you don't pay your payments, then the credit card company doesn't lose money because they already have the $200. I'm not so sure about the refundable part. It's probably if you want to cancel, you can get the $200 back. Check the contract though. Hope that helped!

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Secured card

Helpful to 5 out of 5 people

I was in the same situation and I got a secured credit card through my bank. You pay a deposit of $250 and then receive a credit limit. Unlike a Walmart card or something similar it reports to the credit bureau. Now I have credit card offer with pre approval coming at me all the time. I recently got approved to for another card. This is how I have helped build my credit. Keep the credit cards at 30%  usage. Don't use it and pay it off. Credit reporting agencies like to see responsible spending not that you have the ability to pay it off right away. 

Reply by
r99026510

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Helpful to 4 out of 4 people

I ubtained several secured cards, as opossed to one with a higher limit. It cost more in application fees but was very much worth it. Use them all regularly without going over the 30% threshold and pay them off in full every month to avoid interest charges. Six months of disiplined useage and you will see substantial increses in your score.

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Credit

Helpful to 6 out of 7 people

I once bought a new vaccume cleaner for around $200-$300. Applied for and received credit for it from the store's lender. I think the payment every month was like $29. I paid the monthly payments with my credit card. Generated credit with both companies showing ontime payments to both. (I'm still using the vaccume cleaner too).

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Helpful to 6 out of 7 people

I would start by paying off little things that you owe on your credit. I paid off 3 accounts that were $100 or less and it brough my score up 20 points. Hope it helps, and good luck!

Top Contributor
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Helpful to 2 out of 2 people

You could put more money into that secured card (say, if it's a $500 secured card, you save up and drop an additional $500, which bumps it's limit to $1000)... and then switch to an unsecured card later on once your score goes up enough to do so. Also, you may have to wait for any derogatory/collection accounts to drop off the reports.

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Helpful to 1 out of 1 people

If you have a good relationship with your parents and they have good credit, ask them to add you as an authorized user on one of their credit cards. This is mostly beneficial if they are responsible with them. It will establish credit history, a credit limit, and payment history, utilization, etc. My dad put me on his card and so it says I have 24 years history with that card. Be sure to respect it though. I don't even have the card and I don't want it! I don't want to have any temptations that could potentially harm my dad's good credit that he has worked toward his whole life. I am however, so grateful for just having it on my report. I did qualify for a Capital One card and I added my fiance as an authorized user. He had no credit, but after I added him, his credit score surpassed mine because he now has a perfect credit history with that card and not the ugly stuff I have on my report, lol. It is a long process, but put in the time, your gonna be better off eventually. Also I agree with what someone said about a secured  loan. We have a credit union (they seem to offer these over large banks) that allows us to be members for living in the area, they offer a secured loan for any amount. You do pay interest but it's not much and really such a small price to pay for it's benefits. Like a secured credit card,  you get your money back, the only way it's not worth it is if you don't make payments on time!!! Good luck!!!

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Fixing your credit

Helpful to 1 out of 1 people

Try the credit card Milestone

Reply by
VillainousNest

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Milestone is no the best card to get.  It has no credit increase and the company takes way too long to process your payments.  I say creditone and Capital are best but if you can not get approved then milestone is the last resort.  I say check with your bank first and see if they have credit building programs or cards that you can get through them first!  Good Luck

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