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Pgonzalez0519

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is it true i need a credit card to keep my credit from lowering even if i have credit card debt?
I have TERRIBLE credit & I'm still really young. I'd really love to get this fixed so it doesn't affect me horribly when I start looking for apartments/cars etc. in a year or two. I read somewhere that with my credit card debt I should still have a credit card open in order to keep it from lowering even MORE that it already is. I've set up payments to pay them off so I'd like to know what steps I should take to keep my credit score from lowering & maybe even begin to make it healthier.

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First, you need to manage the debt and credit that you have. It takes a lot of time to fix bad credit. Here are the things you should continue to do:

- Make on-time payments

- Don't open credit you don't need

These alone will gradually increase your score. Opening new credit can be a catch-22.

Pro's:

- Your debt to credit ratio will decrease, which helps your score

- If you manage your credit responsibly, it will help your score

Cons:

- Hard inquiry hurts your score

- Average age of accounts is lowered which doesn't help your score

- With more credit, it's easier to be irresponsible and make purchases you can't afford, which gets people into this mess to begin with.

Since you're rebuilding your credit, opening new credit may not be a bad idea IF you can properly manage it and not dig yourself a bigger hole. Since you're really young, you probably don't have a long credit history, so the average age of your accounts won't be as significant a factor as someone in their 30s or 40s trying to rebuild.

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