I have a credit score of 580 and I will be graduating college next year, how can I improve my score?

Deal Score0

Things that I have been doing –applying for multiple lines of credit & subsequently being declined for most of these lines of credit –applying for large student loans & subsequently being declined for these loans –I’ve made between 5-10 late payments on various different credit cards –I had 6 lines of credit opened but I closed all but 4 of them last week (I heard that not closing accounts is a smart thing to do since then it increases your proportion of debt to available credit, however, I just needed to get rid of these cards).
What can I do? I may be thinking too far ahead but eventually I am going to have a career and I will want a home. I want a score over 700 to secure me with the best interest rates. I want to be financially smart, but I’m really not. Please help 🙂

3 Comments
  1. Reply
    Brianith
    July 17, 2011 at 8:09 pm

    It sounds like you have a credit history – that is actually a good thing, even if you have some late payments. If you are denied for regular lines of credit, try applying for a secured loan from your favorite financial institution. They sound kind of silly, but a secured loan will improve your credit with a reasonably small investment. What you do is get, for example, a $ 1,000 line of credit, with a $ 1,000 down payment. You’ll still have $ 1,000 like you started (except now it’s on the credit line), and you just make the payments back over the agreed loan duration. In essence, you are paying your financial institution the interest on the loan to improve your credit score.

    You can also try to get small beginner/bad credit credit cards and just not use them and pay them off, but you have to be careful as many of them are designed to bait new consumers. Getting a secured loan from your local bank or credit union would be your safest bet.

  2. Reply
    My Take on It
    July 17, 2011 at 8:10 pm

    STOP applying for credit. Wasn’t it obvious you weren’t going to get approved after the first couple of cards/ loans turned you down? That hurts your score and looks bad on your report.

    Closing the accounts you did have probably hurt your score too! If these were your oldest accounts, your score may actually go down further by closing these cards. What you should have done was just cut up the cards and go on with life as if you didn’t have access to them.

    The only way to build up your score is to re establish your credit.

    If you have ONE credit card left, get it paid down or off (if it has a balance) don’t carry a balance of over 30% of the credit limit and use it wisely.

  3. Reply
    Helen Peter
    July 17, 2011 at 8:56 pm

    I live in the US and i really have never seen goodness shown to me this
    much in my life as i am a struggling mum with three kids and i have been going
    through really rough times in my life and my name is Helen
    Peters and in all this hard times, a worse incident occurred in my life as i
    lost my job which was my only means of survival and things became really bad as
    i had bills to pay and my last son suffered a knee injury incurred when he fell
    from a tree house and the doctors informed me that he needed a surgical
    operation for his knee so he could walk again and at this point, life was
    useless to me as i have no family and no one to run to and each night, i will
    sit down and cry till the break of dun until one day, i read an advert on yahoo
    answers of man that stated that he could help people in my shoes with loans and
    in my desperate situation, i had no choice but i had to try and so shocking and
    surprising, it was like an impossibility becoming a reality, i got a loan of
    $ 75,000 USD even with my bad credit within 48 hours and my sons surgery was done
    and thank GOD it was successful and now, i am okay and living in comfort with my
    kids and i said to my self, i have never ever seen this kind of wonder in life
    and i decided i will tell it to the whole wild world and i need every one to
    thank GOD for Mr. Lam Lee, the man GOD used to rescue me and my family
    even when all hope had been lost and gone and i will say to everyone, no matter
    how dark and sinful the world is today, there are still GOD fearing and reliable
    people on earth and if you are in my former situation or require a loan
    legitimately, i will advice you contact this loan lender and you can reach him
    via lamloanfirm1982@yahoo.com.sg ( lamloanfirmintl@live.com) and i want you all to pray for this man for me

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