Credit

June 26, 2008 9:33pm CST
Can someone explain to me how credit works? HOw can i improve my credit history?
1 response
@sudalunts (5527)
• United States
27 Jun 08
First of all, the more of the credit you use, the worse your credit history is. Example, most creditors give you a credit limit. Say your limit is $1000.00, in order to maintain a good credit standing you should stay at 40% of the limit. So in reality if you use $400.00, of that $1000.00 limit it is good. The more of the limit you use, your score will go down by a certain amount of points. Of course, if you do not pay your bill or always late, you lose points. If you have too much credit card debt, you lose points, even if you pay your minimum on time each month. That's what is happening to me, I am never late paying my bills, but I have too much credit card debt, so my points go down.
27 Jun 08
Both of those things are happening to me. I am wondering how i can help myself to get my credit to go up. Or is it once you have bda credit you cant do anything about it?
@sudalunts (5527)
• United States
27 Jun 08
Credit can be fixed, you really have to work at it, but once you get into a bind, it is hard to get out unless you come into a lot money and can just pay everything off. If you have a lot of accounts, first try to pay one completely off, do not close the account, just do not use it any more. Then try to pay off another etc. It seems when your balances are high, the credit companies raise the interest on you, and make it hard to really get the principle down. Watch out for companies that tell you they can help you reduce your credit debt. Most of them are scams. I am now going through it with one of them. When possible try not to use the cards. Even if you transfer a balance to another account you lose points.
27 Jun 08
Thank you very much for that. I am in a bind and am trying. I am working as much as I can 2 jobs, and then try to make some omoney online when i have the chance in order to pay the bills down.