I am 24 years old and made some mistakes with credit cards in previous years. Im really feeling it now that i could use some loans for school and
of course since my credit is messed up thats not gonna happen. Im delaying my school for about 1 yr from today. My question is if you had a year to build somewhat positive credit how would you do it? I just bought a new car and am paying 1000.00 a month to pay it off within the next yr to 16 months. Also i have a couple of small charged off credit card acccounts that will be payed off within the next 2 months so i will have a VERY low debt to income ratio. I just orderd another credit card that I will use to help build credit but thats not going to be enough. Would it be a good idea to get a couple of small loans that (of course the will have large intrest rates) I can use to purchase stuff and just pay them off quick? Any suggestions would be greatly appreciated.

Thanks
Birdsmasher...

Welcome to the forum Birdsmasher!

If you are talking about student loans from the Govt., I am under the impression that your credit is not much of a factor, as long as you don't have other student loans in default. Maybe this has changed in recent years though, I don't know.

I think you have the right idea though, any positive credit you can get on your report, should help your credit in general. Just make sure that any obligations you undertake, you can handle.

Also, if you've taken care of those past mistakes, if you've settled those accounts, I believe you can have any negative information regarding them, removed from your credit report.

If you are able to get car loans, small loans, and credit cards, I don't think your credit is as bad as you may think.

Well, I go to flight school so Govt loans arent an option. I have
to get a loan through a bank such as Key bank. But do some of
those settlement companys actually work?

Don't know much about the settlement companies...Got any links?

I have some questions for you though...

How long ago did you aquire the debts?
How many are there?
How much?
Have you actually seen your credit report?

How long ago did you aquire the debts?



Thats what I was thinking. cause after 7 years they won't even be on your credit reports.

Thats what I was thinking. cause after 7 years they won't even be on your credit reports.
A little more than a Year ago. So they will show as paid charge off's.

Birdsmasher said ..... if you had a year to build somewhat positive credit how would you do it? I just bought a new car and am paying 1000.00 a month to pay it off within the next yr to 16 months. Also i have a couple of small charged off credit card acccounts that will be payed off within the next 2 months so i will have a VERY low debt to income ratio. I just orderd another credit card that I will use to help build credit but thats not going to be enough. Would it be a good idea to get a couple of small loans that (of course the will have large intrest rates) I can use to purchase stuff and just pay them off quick?

I'd reconsider putting so much money into the car, a depreciating expense. You can do better things with your money.

To build credit, you have to use credit. So your idea to get small loans and pay them off is great! A way you can make that win two ways is to go to Key Bank (or any national bank) and get a CD for $1250. About 2 weeks later, take that CD certificate over to the loan dept, and ask for a signature loan, with the CD as collateral. Set it up for 90 day payback, and keep to the payment schedule. When payed off, do it again. Keep current on the terms, and you will build credit and credibility with that bank, and with whomever they share information with.

Good luck with your plan. That is the only way to correct the situation you are in. With a plan, that is! :thumb:

To build credit, you have to use credit. So your idea to get small loans and pay them off is great! A way you can make that win two ways is to go to Key Bank (or any national bank) and get a CD for $1250. About 2 weeks later, take that CD certificate over to the loan dept, and ask for a signature loan, with the CD as collateral. Set it up for 90 day payback, and keep to the payment schedule. When payed off, do it again. Keep current on the terms, and you will build credit and credibility with that bank, and with whomever they share information with.
I did a similar thing when I first established my credit. I deposited $1000 into a certificate of deposit. Then a few weeks later, I took out a loan for $1000 against the CD, and then made regular payments. I also placed the entire $1000 into my savings account to earn interest and so I wasn't tempted to spend it. I had them take the payments out of my checking so that it would always be on time. At the time I had almost no credit, and it helped establish me so well that within 6 months everyone wanted me to have their credit card.

Since you have some bad credit on your credit report, that won't go away anytime soon, but any positive credit that you add to it would help you out. But it may or may not be enough depending on the criteria of the bank.

Also, establishing a relationship with your bank is important. If you have been their customer, and they know you, and you have always paid them, they would give you more of a break than someone who walked off the street.

Good luck.