Need help re-building my credit.

[ts4them]

Basically, I f***** up in my 20's and am now finally free of any outstanding debts. I still am only BARELY in the 'fair' range on my credit score. What is the best way to improve my score? I now have no credit cards and basically no credit history, haven't had a cc for about 9 yrs. What is the best cc (rate, etc.) I can get with my history?

 

[yerfdog]

These forums might help http://consumers.creditnet.com/Discussions/

 

[a tailor]

get a secured credit card and pay your bills on time.

 

[Kaizen]

I was in a similar situation a while back. I hadn't used credit in so long that they could not calculate a FICO score for me. I started by getting a secured loan from my bank (backed with a CD I bought from them). After several months of paying that on time, I was able to get a few credit cards.

Apparently, your FICO score is partially determined by the types of credit you have. If you only have credit cards, that counts towards your 'revolving credit' score. A car loan, or signature loan (like I first got from my bank) counts towards the 'installment loan' part of your credit. When I paid off the original loan, my score actually dropped. I'll probably get another soon to get my score back up. Expect it to take a while (over a year, in my case).

 

[aleksandr]

Originally Posted by Kaizen

I was in a similar situation a while back. I hadn't used credit in so long that they could not calculate a FICO score for me. I started by getting a secured loan from my bank (backed with a CD I bought from them). After several months of paying that on time, I was able to get a few credit cards.

Apparently, your FICO score is partially determined by the types of credit you have. If you only have credit cards, that counts towards your 'revolving credit' score. A car loan, or signature loan (like I first got from my bank) counts towards the 'installment loan' part of your credit. When I paid off the original loan, my score actually dropped. I'll probably get another soon to get my score back up. Expect it to take a while (over a year, in my case).

there is something fundamentally wrong in not being able to get any credit just because you haven't used any previously, or had paid off any outstanding debt.

 

[Orsini]

You might check the legitimate consumer credit counseling outfits for a class on how to organize finances, budget, save, etc.

 

[visionology]

Originally Posted by a tailor

get a secured credit card and pay your bills on time.

Do this. When I had no credit it was the only card I could get. Your credit limit is how much you "deposit" into the account so it makes you more accountable because if you screw up you use your own money. When you eventually upgrade the account when your credit is better you get your deposit back.

Helped me start out and now I have an excellent score.