I remember several years ago when I had a poor credit score, and more issues on my report than I care to remember. I had no idea on how to build credit. Here I was with a credit score in the low 500’s and no-one would approve me for anything, without ripping my head off with high rates. Thankfully though I had a background working around credit, and that forced me to start to take a deeper look into how to build credit. I would like to share with you my story and how my credit has reflected back.
First it’s probably good for you to understand where I started at. In 2003 I opened a firm and ended up not doing to well with it for a bit. It was my first foray into being self-employed and this brought about some real havoc on me financially. I could not afford to put gas in my automobile at times, much less the money to pay for my obligations in a timely fashion. I ended up getting things together, but by this time the damage was done. I had several credit cards that ended up being charged off and the bill collectors were coming after me.
In December of 2007 I had a car that started breaking down on me. I was 28 years old and I had to ask my father to cosign on a loan with me so I would not need to pay a loan rate at around 18%. By having him cosign for me I was able to get a loan rate at 4% and I still have that vehicle to this day. I’ve saved thousands of dollars in charges because of this. This, by the way, was the 1st credit that I had since the issues I had in 2003.
With having this car loan now reporting on time payments, eventually I was able to get endorsed for a Mastercard in May 2008, but the limit on the card was only $400. While that was great and all, with my past credit score it took a long time for any other company to approve me for anything. An alternative choice for me at this time also would have been to get a secured credit card to couple with the other credit I was building.
Come to discover, the credit limits on credit card accounts have a ton to do with our capabilities to get more credit. The higher your credit limits, the better it is for your credit. Mull it over, if you’re signing up for another Visa card and have had some problems during the past financially, then it’s very hard for any company to get a good read on whether you’d be a good credit risk. This holds especially true if you’re available revolving credit is only $400.
This is when I began to learn about credit repair. I had a choice to make. I could either wait for seven years minimum for this information to fall off my credit report, or I could kickstart things and learn how to do the credit repair. I selected to kickstart things, and I’m so happy i did. To make a long story short, i have been able to get just about everything removed except 2 things, one being an open charge off account that has had some ridiculous costs added to it. I could even bring a lawsuit against this company because they’re clearly violating my rights because they haven’t been able to come up with a full accounting of how they got their figures. This account is lined up to fall off in just a couple of months so I haven’t bothered.
Obviously I’ve had a pretty significant improvement in my scores with all 3 of the bureaus. I’ve now qualified for 2 more unsecured mastercards and will continue to see major improvements in my scores over the following year. Now knowing precisely how credit works, I also got a $5,000 credit line that reports to the bureaus. Now this is not a conventional account, and I can’t utilize it for much of anything apart from to purchase ebooks online from their site, but it’s’s an awesome account to have which has helped my credit score rather a lot, and opened up the door to afford me the opportunity to get the unsecured mastercards.
Had I not known how to build credit, or learned credit repair then I’d be nowhere near where I am right now. This has got me thinking, because I am truly no different than anyone else that has had problems financially during the past. The only difference is that I learned how to build credit and I would like to be in a position to share my experience and information with anybody that is ready to learn. These tactics work 100% of the time if implemented properly, but this is all done with the long term under consideration. If you have a long term vision you can also have these types of results.