Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Scores
Profile Image

Question By
Clueless30yrold

0 Contributions
0 People Helped
Raising my credit and best way to raise
I know my question is gonna be very similar to other questions on this site . But I am new to credit , no credit cards , nothing . The only thing that is on my record is student loans for roughly 5500$ that went to collections . I haven't made payments on them ever .. so my questions are , obviously I need to start making payments to those and apply for a secured credit card.( roughly 300$) what exactly should I spend that money on? Do I buy gas weekly and pay it off ? What % of that amount of that card do I spend ? My credit score is 530 right now and my girlfriend and I are looking to buy a home . But don't wanna be the burden of having the ****ty credit . Any advice is good advice , and thanks for the information

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
46 Contributions
94 People Helped

Several things you can do!

Don't feel bad about being in the dark regarding credit.  I'm sure I was just as clueless as anyone, and I had two credit cards while in college about 10 years ago, and I would venture to say more people than you realize actually have not much of an idea what goes into a credit score, or how credit items on their reports actually impact their scores.  First, as you stated, you want to get your student loans out of default.  There is a federally-run program that runs parallel to the normal Fed Loan payment system that was set up for those whose loan(s) is/are in default.  From my memory, it's a 12 month program that will be offered to you when you call Fed Loan Servicing and it's a payment plan, based on your income (so payments aren't outrageous) that if successfully followed for the year will bring your loans out of default and you will then be back in the standard repayment system.  In your case, I would agree and say this is top priority.

The next thing you can do is start looking at the forums and reviews here that will give you an idea, based on other users' application experiences, of your liklihood in getting approved for a credit/store credit card.  Amazingly, the bar isn't set all that high for a $300 limit on some store cards, and it's also not set very high for some traditional credit cards.  A sure way to find out would be to apply over the phone with a company (like Capital One, for instance) that can guide you into the right card, even if it ends up being a secured card, where you would need to provide a small deposit.  This is a proactive way to start gaining some positive payment history, while you're getting your student loans back in shape, and also give you some credit account history.

The bulk of credit scoring is fairly simple, and is really a gauge of how likely you are to pay your debts.  Obviously, you gain more credibility as you keep accounts in good standing, accumulate a longer record of good payment history, and get further away in time from any negatives.  It can seem like a daunting task.  I've been there before, and within the past two years, but if you take it one issue at a time and prioritize, you can start to get yourself on some really solid ground in less time than you think.

Top Contributor
1767 Contributions
3024 People Helped

Read and Keep Reading 

Having a Credit Card does not mean you have to use it all the time,  I have about 15 cards tucked away that I never will carry on myself.  Now one or 2 might see the light of day durning the Holidays if I'm going to get a GREAT Deal,  other then that Nope Cash is king.   If you do get any Credit Card NEVER Carry a Balance EVERY!. 

Do what ever it takes to pay off your Student Loans.  

You Are young you have Years ahead of you.   

The only saving grace I have is my wifes JCP Credit card that we never used in the past but it hung around ,   helps that she has had it for 23 years now. 

Credit Takes Time, 

Like others here I have messed up in the past,  Long ago in the 90's ,   Cash thru the 2000's and then back into the Credit kingdom in the 2010's
Always Pay off a Credit Card IN FULL,  thats saying Never Carry a Balance,  No Exceptions.,   Never Carry the Credit cards with you. 

etc etc etc.   

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.