Having credit cards is fine - so long as you don't over use them.

I always advise people to have a credit card, but only if they can pay off the balance every month.

I would recommend you look to keep your existing credit cards open, ensure they are paid off as fast as you can, and then use just one of them for normal purchases with a direct debit or similar to ensure it's paid off in full every month.

IMO this should certainly help set you back on the road to recovering your credit rating.

Hope that helps.

Step 1: Get roommates. Seriously, this could cut your rent/utilities/food down by 1/3rd.
Step 2: Talk to the University's financial aid department rather than just worry. Chances are it was a mistake and if you're nice to the people that work there and are patient, they will help you get rid of that charge.
Step 3: If possible, patch things up with your dad, parents can provide a lot of help because they have something you won't have until they are nearly gone: Experience.
Step 4: Wait. Paying bills on time for 7 years should give you the great credit you deserve, you just need to wait for the bad stuff to drop off your credit report, which it will, in 7 years.

You just need to get things paid on time from now on. Like the previous poster said, you can rebuild credit. Your credit will rebuild if you simply pays things on time from now on.

First, pay your bills on time. If you cant remember, set them up to be automatically paid online.

Pay off your credit cards, get a second job!

It's nothing to worry about. Seriously.

Your credit score is simply a bank's way of gauging your reputation for paying someone back.

At the moment, banks have a bigger problem themselves - getting cash to stay in business.

Right now, high credit scores are not any more useful - because banks can't even lend money.

I've been in a dire credit crisis myself over the past 12 months - and the more I worry about it, the more I answer the phone calls - the more I begin to worry about the future.

Last month, I decided to pull all three of my credit reports and go over everything with a fine tooth comb. I found crap in there from several years ago. And I mean CRAP!!! For instance, I closed a few accounts several years ago - TransUnion still shows them open. I sold a home over two years ago - Equifax still shows that I have a friggin mortgage!!!

Honestly, with all these bank mergers and failures, it's only going to get worse on the housekeeping side.

The part I hate most about credit reports is that there's three of them, and I'm not the one who's responsible for maintaining it - the bureaus are. But for some stupid reason, the entities that make comments on the report (ie: BANKS) can't seem to keep accurate records on the reports that they so desperately rely on. So credit, going forward, is BS.

I've pulled all of my reports and scores almost two months ago and sent out all sorts of nasty, bitchy letters to the banks and the bureaus about all the problems in my file - still no response.

But if I can give you any advice, pull your reports from somewhere like creditreport.com (they can pull all three at once for free) or directly from each of the bureaus and make sure that it's accurate. Then send some letters to correct any problems and forget about all the panic and stress.

You're only 22. Solid credit takes time to achieve - and only people who have to borrow worry about their score. You don't hear about Paris Hilton worrying about her credit - SHE DOESN'T HAVE ANY!

This is typical when people move out for the first time, especially young. People normally don't notice the cost of living due to the fact their parents, or others, pay for the bills. Sounds to me like you need to start with yourself first. You have poor spending habits and live above your means. Get yourself organized by getting a filing cabinet or file case, and some multi-colored folders from Wal-Mart for $15.00. I like the red, yellow, blue ones. Each color will stand for a different thing. Mine, Red = bills (red for debt), Yellow = things I need to save, Blue = Medical records (dental,ect). Post your bills where you have to see them everyday. I have an office with a big cork board I post them on. Get a calendar and make the date your bills are due on 4-5 days before they are due. That way you will get into the habit of paying your bills up to a week early and not have to worry about them being late. After paying, write down your confirmation number, date it was paid, and the amount. File it. I.E. Say its a phone bill, file it in red folder marked "Phone". Next stop spending your money on things you do not need. Yeah it's nice to be best dressed but which is better, impressing people, or having a fat bank account to impress yourself with. No one will care what you are wearing the day before. I personally try clothes on at say Express, write down the style number, then get the same jeans for $15.00 of ebay, ect instead of $60.00. I never pay close to retail on anything because someone else will always offer a better deal. Get a REASONABLE budget and stick to it. Start with things you need, i.e. clothes (doesn't mean top of the line or a $1k budget), housing, utilities, food, ect. When you get paid take a set amount out for savings, pay the bills with the rest. If you have money left over then you can spend that the way you want. You could add a little more to paying off debts and/or hang out with friends or whatever. Get a second job if you have to, in order to get out of debt and save money. Stop using your credit cards but do not close them. Closing accounts will hurt your score. Have one useful card, say a Visa and use it for things like gas. Be sure to pay the card off IN FULL every month. This will help build your credit. Once your other cards are paid off, use them once a year or so to keep them active. Getting a loan is not going to solve your problems, but make the problems worse. Unfortunately, it is way easier and fast to destroy your credit, then it is to make it better. You can destroy it in a month or less but take years to fix it. I'm sure I missed something but I will leave you with this. Get your habits under control and organized or you will live the rest of your life like most people, always spending more to keep up with the Jones and in debt up to eyeballs for the rest of your life, never really being able to enjoy anything. Your young, smart for realizing the problem, and have time to fix it. So get proactive about it! Good Luck!

don't panic. I think you need to focus on paying those credit cards off first. Once you do that, try not to use them. Credit cards are good to actually raise your rating (but only if you can pay em off on time!)

Also, if you have an overdraft on your debit card, make sure you are staying OUT of it. Always try stay in credit. The more borrowed money u possess the lower your rating will pummell. So try keep in the credit mark ok.

If I may suggest, I have the perfect solution for your situation. It is called a Debt Management Program. It is not a loan nor a settlement, it is a program most people are unaware exists. The program was created by creditors themselves in order to recapture the original principle owed to them instead of risking loosing it, and at the same time allowing you to get out of debt about 75% faster while keeping your payments around the same, or in most instances, actually lowering the payment. This way, most of your payment will go towards your balance which will allow you to save a significant amount of time and thousands on interest. It works by making one simple payment that is distributed to all the creditors for you at lowered prenegotiated rates they are willing to offer you for being on the program. Being on the DMP, most creditors will give you the benefit of waiving late/overlimit fees, plus they will report your account in good standing so it will also help you rebuild your credit if you have deliquencies. It is a win win solution that can lower your payment, save you thousands on interest, pay off your debt 75% faster, plus help your credit at the same time. Neither is there a need to pull credit or be within a certain Debt-to-Income ratio. If you would like to find out more about it, dont hesistate to contact me with any questions, ill be more than glad to help, you should try this # (877) 219-9024.

Almost everything I wanted to tell you has been said. I've been there, I know how it feels. The struggle and constant sickness from the debt getting worse and worse is a feeling I know quite well. It takes time to build your credit, theres no overnight solution - I learned this very quickly. My saving grace was free help from the government from federal grants I don't have to pay back. With your circumstances there is a good chance the government will help you. If you want more info please PM me or visit my blog for my story and a guide on how to get started. I really hope this helps you and you get back on track with your credit and life as I did after going through the life altering process you can read about on my blog. Good lucky and hang in there - it'll get better!

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.

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.

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

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. ☺