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Tasiababy

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Questions on Fixing your credit
I'm trying to get some advice on fixing my credit. I have around a 530 and am in debt about $5000 and would like to boost my score to a 700 to start buying a home for my family. I've called and done some research on fixing my credit and I just can't get a straight answer on what steps I need to take . I would like to just pay it off but from what Ive read it wouldn't help because it would just stay on my credit for another 7 years. I took out a rebuild credit card with capital one with a credit limit of 500 but I'm not sure if I'm using it right I use the whole credit limit and then pay the full balance by the due date. Any advice would be greatly appreciated.

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Paying off negative debt does NOT restart the 7 year reporting period clock. Where the confusion occurs, is if you enter a payment arrangement (not paying in full) it can reset the "statute of limitations" to be sued for the debt. The "credit reporting time period" and the "statute of limitations" are two separate things. If you can afford to pay this off in full, you want to read all that you can about "pay for delete agreements" and do your best to get one. Make sure you have a good knowledge of this before you attempt to negotiate with the debt collector. You are fine using the credit card the way you are as it can help you get credit line increases, However, you do not want a balance over 10% of your credit line to be reported to the credit bureaus. Your credit card company most likely reports to the credit bureaus once per month, figure out when they do this and make sure your balance is low when this happens and the card isn't showing heavy utilization. Do some reading on Credit Card Utilization. In addition, continue to read all that you can about credit as there is a lot to know.

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It helps to know how credit works and how to build your credit score and that is exactly what Credit Karma is here for.  You can get that information by reading the articles and using the financial tools here.. Worked for me very well, and I studied accounting and management in college.  I had a lousy credit score when I joined and now have an excellent one.  You definitely need to know about the usage ratio and how to negotiate a 'pay for delete' with the collectors, and those are covered here.  The only time you are too old to learn is when you die..

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