I destroyed my credit in one year....at 22 years old - Page 2

www.BalanceTransfer.cc · #11 (**permalink**) 02-24-2009, 11:48 PM

Don't worry too much about it. The system is actually quite forgiving. You can go from having a really bad score to having a really great score in less than 2 years. I know because I did it. You are young and smart. Do what you know is right and your credit will rebound faster than you realize.

RobertD · #12 (**permalink**) 02-25-2009, 12:14 AM

Great advice from most everyone.

I would tell you two things first repairing your credit will take time, second is you have to get your act together.

You have to take control of your life if you want to get it straighten out. Nothing worth while in life is easy, but do nothing gets you nowhere fast.

Start by setting a budget write everything out and when each payment is due. Do not use any credit card till you have your debts back in order they are just a recipe for disaster.

Next set up automatic payment to pay for everything as you get paid. Start using cash for the majority of your purchases. You would be surprised how easy it gets to say no to buying something when your money is running out. After a while you will find that you will have cut your spending. Which means that you will be getting out from under faster.

Additionally the longer they see you paying your bills on time the better your credit will be.

Make a plan and stick to it and if you have to get a responsible friend to hold you accountable until you get your act together.

You can do it, you just have to want to good luck and all the best.

If you need help with budgeting check out my website the link is below and it is mostly free and most of what you will need is.

sarajone · #13 (**permalink**) 03-13-2009, 03:44 PM

Here are a few ways how you can improve your credit rating.

Make Payments on Time
Pay Off Your Debt
Establish Credit History
Don't Apply for or Take on Too Many Credit Cards

tnmccask · #14 (**permalink**) 11-13-2009, 02:57 AM

Quote:

Originally Posted by kayeeeELLE

How is it possible to build up my credit after destroying it, in one year?
I am seriously depressed about this and think about it every single day.
I had to move out of my dads home, due to personal reasons, and I had the perfect credit scoring, I work full time, and I have some money in the bank that I "inheirited from my dad", Though moving out and now paying rent, utilities, and everything I basically need to live, its really tough to pay, and Im also very disorganized and at times forgetful. I have forgot to pay utilities, and bills on time, which I know really hurt my credit, basically credit cards such as department stores eg; old navy, american eagle, ashley stewart, walmart, and lowes. I figured getting a credit card for things I couldnt afford would be easier to pay off, and then I could just pay my must pays completely, well I suppose. I paid off the old navy card and cut it up, I just paid off my lowes bill, walmart I use for groceries, and I still owe 108 dollars for ashley stewart, Im trying to not have any credit cards at all, but I have nooooooooo idea how to build up my credit again? I owe 2,500 dollars to a university for tutution that I didn't even go to school for that particular semester. I don't think I would be able to get a loan because of my horrible credit.
Im just looking for a way out before it gets to out of control, I only have me myself and I, and was just looking for guidance support, and someone who can lead me to the light of financal stability. Thank you for taking time to read this and hopefully putting in some input. I know im only 22 years old, but the stress is literally killing me slowly.

Building your credit will take time. But if you are willing to change the way you spend, your use of credit cards, and your timing on paying your bills, you will be able to see a positive change in your credit scores. First, put your self on a money diet. Start assigning your money purpose by going by this:
35% of your income should go towards housing expenses (rent/utilities/insurance, etc) Example: if you make $3500/month, then no more than $1225 should go towards these expenses. If you are over, you need to do some readjusting.
15% should go towards transportation expenses (car/gas/maintenance,etc.) That would be $525
25% should go towards other expenses (groceries, clothing, entertainment,etc.) That would be $875
And because you are by yourself, you need to be saving more than those who are married and have families, which should be 25% of your income. So every month, you should be saving $875
Right now, I do suggest that you pay off your debt first and save about 10% of your income. Once your debt is paid off, I advise that you keep only one low-interest and low balance credit card that you should pay off each month. Even though you should not need it; it will be just to build your credit. Another option is, you can set up with a credit agency to build your credit through your rent.
Also for future reference, never use a department store credit card. They are a trap and will cost you dearly. ☺