Posted on: 15th Oct, 2008 08:07 pm
Hi, I (in my younger teen years) allowed a phone bill and some doctor bills and a public record for not paying my rent creep its way onto my credit report. I am now 23 with a credit score of 581. I now have the money to pay off everything on my credit, but I have read that even paying off closed accounts will not raise your credit score. Is a secured credit card with a lower limit (around 500) the best way to go to start building credit? I do not want to take out a loan with a cosigner or incur another debt source before I graduate from college. I'm not even really sure where to start besides calling the creditors and paying these closed accounts. Is there anyway to have them removed off my report? They are acutally several small accounts that do not add up to more than $1500. Any advice would really be great. Thanks.
Hi Nanna!
There are various ways of improving your credit score. You should always pay your bills on time and if you have missed out on payments, you should immediately get current and stay current. Remember that paying off a collection account will not be able to remove it from your credit report. If you cannot make the payments, contact your creditors or see a qualified credit counselor. You should always keep your balances low on credit cards and pay off the debts on time. You should never close unused credit cards as a short-term strategy to improve your score. Do not open new credit cards which are not required. You should not open new accounts too rapidly if you are newly managing credit. I hope this will help you.
Thanks.
There are various ways of improving your credit score. You should always pay your bills on time and if you have missed out on payments, you should immediately get current and stay current. Remember that paying off a collection account will not be able to remove it from your credit report. If you cannot make the payments, contact your creditors or see a qualified credit counselor. You should always keep your balances low on credit cards and pay off the debts on time. You should never close unused credit cards as a short-term strategy to improve your score. Do not open new credit cards which are not required. You should not open new accounts too rapidly if you are newly managing credit. I hope this will help you.
Thanks.