When you have an open credit card account that you , the credit bureaus will merely see that you have available credit that you don’t tap into. And that, of course, means that your is low, indicating that you aren’t desperate for credit in order to support unsustainable spending habits. In other words, it will fill your credit reports with information that reflects favorably upon your financial responsibility on a monthly basis and therefore help you build credit.
Wells Fargo has been in the news recently after it was announced that more than 5,300 employees at branches across the country have been fired due to their involvement in scamming customers to meet their sales quotas. Among the violations Wells Fargo employees committed was the fraudulent opening of credit card accounts in customers’ names […]
Obtaining the highest possible credit score matters most if you want to open a credit card account or borrow money. If you might apply for an important loan like a in the next 12 months, don’t take the risk of dinging your score by opening new accounts just to earn sign-up bonuses. Otherwise, don’t worry about your credit score too much as long as you’re paying your bills in full and on time and not using too much of your available credit.
Heggood, my advice is to find an inexpensive car, or car you can afford from a dealership that specializes in customers with less than perfect credit. MAKE SURE they report to credit bureaus. Make sure to make those payments on time EVERY MONTH. Also open a credit card. If you don't qualify for any of the cards intended for those with low credit, get a secured card. Charge 10-30% of your limit each month! and pay it all off. Any card you qualify for will have high interest rates. Paying them off will avoid your wasting money on interest. Finally, if you have outstanding collections, pay them off. I went from a 530 to a 720 in 2 years by being smart and following those rules. The first car I financed I paid 19.99%, and was able to trade it in after a year and finance a newer car at 7%. CK really helps with good advice and gives you the opportunity to keep an eye on your credit. You get 1 free report from each bureau each year, so pull all of them and make sure to satisfy any issues that are on any/all of them.