Question
I have a low credit score of 581 I want to improve it. How would this work?
I have had a bank account with the same bank for over a year, I have overdrafted one time and used my allowance that the bank gave me and then I paid the rest. I have my own personal income of 1200.00 a month. I do not own anything but I am making payments to a car lot like buy here pay here, I have bought two vehicles from them and paid one in full and paying on the other, they would write me a recommendation. I want to build my credit so that I can get a new vehicle within the next year and within the next few years open a business once I am finished with school. I have no one that will co-sign for me either cause I have no family. I am not sure how loans work with the bank and secured and unsecured and all that. I know for secured you have to have collateral, I dont have much money either but I was wondering if I took the bank 150.00 and ask them if they would loan me 100.00 would they do that? Or do you have any ideas? I have paid off the other vehicle and sold it so that my mother could have a handicapped vehicle, I have the second one I dont still have two vehicles. The one that I have is very old and tearing up and I need something reliable and dependable so that when I finish school I am able to travel for a job. Thank You but I have my priorities straight I have a family that I take care of as well, I have a lower income now because I am about to get my masters and need to be studing more so I am working alot less. I really didnt ask for opinions though . . . I ask for ways to establish credit and as far as the buy here pay here lot they told me that they dont report to credit because they dont actually finance for you or anything, they can give me a credit letter but thats it. AND IM NOT IN DEBT Im not asking how to file bankruptcy, I just havent ever gotten my score up Im almost 30 and I never had a mommy and daddy to help me establish it. And I have never owned anything because I didnt want to get in debt and wanted to be able to finish school with out debt . . which I managed to do without student loans and all that. Buy here Pay here do not put you in debt here they just come and pick it up if you dont pay. Please dont post if you cant just answers I dont want your opinions of me. And also since you are so concerned with me having a vehicle. When you have three children you need transportation and when I say new I mean new as in new to me one thats reliable and dependable.
1 month ago - 4 answers
Best Answer
Chosen by Asker
The buy here/pay here lot should have been reporting your payments to the credit bureaus to help improve your score. I would call and ask them if they do that. A letter of recommendation isn't going to do you much good, they want to see it reflected on your report and in your score. If you have $150 put another $50 with it, and open a secured credit card with your bank. After a year to 18 mos of on time payments and not going over your limit, you should be able to convert it to an unsecured card.
1 month ago
Asker's Rating: 
Other Answers
Credit cards a good way to build credit fast, but only if you think you are responsible enough to make the payments. One thing I did was just put ONLY groceries on my credit card and I always made sure I had cash in hand anyways. I put the cash in the jar and then made my monthly payment with that.
by cfelonius- 1 month ago
Stop spending so much. Theres no need for two cars, or even one with a payment untill you make more money. Keep your credit card, but stop spending so much and pay it off each month. Itll slowly build back up. And sell the car that has the note. YOU DONT NEED A NEW CAR and no bank would loan you money for something so unessessary. Not trying to be too mean, but you need to get priorites of what you need straight or else, you'll be asking soon on how to get out of thousands of dollars dept.
by iR0T- 1 month ago