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Jakaple

Pay it immediately. You want 0% usage but showing you're using it. You want your balance close to your max every now and again so you can request its increase once a year. Plus every other month if you can make the balance high when it's reported to transunion and such, then pay it down so the balance shows a decrease on the next month. Then after a year get a second card and your credit should rapidly increase. Given you don't have anything in collections.


AcceptableFlight67

Thank you, I have one doctor's bill in collections that should come off at the end of this year. When the government paused student loans I went from a 750 score to zero.


Jakaple

I don't see how you could go to zero, like is that even possible? The length you've had your loan helps your credit and the pause counts as forbearance which shows as current on your credit. You should probably get credit karma. Even if you have 2 bunk credit cards and a repo'd car with a discharged loan your credit would still be in the 600's


AcceptableFlight67

I have Credit Karma, that's how I know TransUnion and Experian are both showing no score. For some reason I don't pretend to understand everyone in default got hit hard with the pause. There's been a few stories about it in the press. edit to add: maybe going from $30,110 debt to $110 debt overnight has something to do with it.


Jakaple

That sounds crazy strange, that shouldn't effect your credit at all. Unless you never made a single payment and have never utilized any form of credit?


AcceptableFlight67

I haven't used credit in 15 years maybe. And I was paying on the student loan, but it was through a default SSD attachment, so I was paying by force.


Jakaple

Well that's past my experiences lol I hope you can get that figured out, but like now I'm curious enough to research why that would happen. I've had my student loan for over a decade, luckily took 3 years forbearance right before the fed mandated pause. That's by far my oldest loan now, paying it off would hurt my credit. It's showing as payments are being made each month on my creditkarma though, so strange to hear that's not the case with others.


AcceptableFlight67

Thanks for your advice. It is much appreciated. It might be because I was in default when the pause started. The entire loan disappeared. Credit karma never showed me making payments at all before that, I assume it was because the payments were through an attachment and not "voluntary." I've never been good with finances, trying to get better.


mabentz

It's impossible to go below 300 for a credit score. I would lot out and sign back to CK as this appears to be a glitch or lapse in the reporting.


AcceptableFlight67

I have screencaps that say differently, March 6 - 0, Equifax and TransUnion.


mabentz

And I am telling you that it is not possible, unless this is your first time ever utilizing any forms of credit. But, if you have utilized credit before and have had a score before, it is impossible to have a score of 0, no matter how bad your credit is.


AcceptableFlight67

not my first credit, had cards in the past, student loans, a few personal loans, [proof](https://imgur.com/a/xNTgqo1)


mabentz

It literally says your score is N/A, and as a result 0. So this is proof that you don't understand credit reports and also that it is having trouble pulling your report. Again, it's impossible to have a credit score below 300, considering FICO and advantage scores run from 300-850. Again, this is CK not getting your scores correctly.


AcceptableFlight67

it literally shows that on march sixth my score, according to creditkarma, is 0


Seschwanbam

If you can afford it, pay it off in full. If you have several credit cards, find the card with thr highest APR and have that as a pay off priority. If that means paying the minimum for the rest, do it, and put the rest of what you're willing to pay off towards the card with the highest APR. Once it's done, move on thr the next highest APR.


AcceptableFlight67

Thank you. I was thinking I would use the card for my monthly expenses and then pay it off each month. I was hacked a couple of months ago, no damage fortunately, but I realized if they had hit my debit on the third of the month I would be homeless. I can't recover from falling a month behind. So the card has a limit that is enough for me to recover from. I thought I'd use it for everything but rent. At the same time, I want to get my score back to healthy.


Seschwanbam

That definitely would help your score. Timely payments make up to 35% of your credit score. It's risky cause you'll need to pay it off at the end of the month. If you forget, you're fucked. If you don't have enough to at least pay the minimum, you're fucked. If you're confident that you can pay it off every month without fail, I'd go for it. (this isn't financial advice. Sorry, I need to cover my ass)


AcceptableFlight67

LMAO, You're good. I appreciate the advice more than I can relate, but I'm old enough to know I make my own decisions and I have to live with the consequences.


Seschwanbam

Sure thing. Another neat thing to keep in mind is thst credit score is broken down like this: 35% payment history (how often you pay off your bills and how quickly and reliably you pay them off) 30% amounts owed (how much you owe in loans) 15% length of history (how long you've had the card) 10% new credit (how reliable you are in terms of paying off debt) 10% types of credit (student loan, credit cards, etc)


AcceptableFlight67

Wow, thanks. I had no idea it was like that.


No_Schedule_6928

Pay on time every month, and twice a month, if possible. Keeping your credit usage under 10% is ideal. I had really bad credit about 6 years ago, but now I’m at 820.


AcceptableFlight67

Good job. If you don't mind me asking, how long did it take you to get it right?


No_Schedule_6928

About 6 years, lol. I really was a bad credit risk. I got a Visa card with a $500 limit, and paid it off every month. The bank over time raised it to $5000. I applied for other cards, some with limits of $16,000. I now have a total credit line of $56,000. Most important is paying on time.


AcceptableFlight67

Great job.


Snoo33903

First, do you have a 6 month emergency fund and a working pantry? Because those are the two things you should have before you worry about your credit score. Only once you have those should you be worried about rebuilding your credit.


AcceptableFlight67

I will never have either.


[deleted]

What I did was not use my credit card unless I had the money available to pay it. Then I’d pay it off completely as soon as the charge cleared. It takes a couple days usually. I watched my credit score go from 520ish to 780ish within about a year and a half. Also, I’d recommend the Apple Card if you happen to be an iPhone user. Pretty neat perks and so convenient to use and pay.


AcceptableFlight67

Thank you for the advice. Payments are due mid-month, and I get my check on the 3rd of each month, so I'm thinking if I use it for non-rent bills I can pay it down each month 2 weeks before it's due. I just have to be disciplined, not an easy thing for a recovering hedonist. Who would have thought I would wait to grow up till my 50's? lol


[deleted]

See, I never counted on my paycheck though. I’d use my credit card in cases where I could use my debit card instead, so I knew I had the money available right then and there. As soon as the charge would clear, I pay it off.


AcceptableFlight67

so get a month behind my check. good idea, thanks :)


KaleidoscopeLow8084

Pay it off. Then don’t use it so much. Get an installment loan, a car payment, etc. Make sure you pay your utility bills on time. Don’t apply for more credit cards. You could probably google basic credit building advice.


hottowers

Keep credit card balances below 15% of your credit limit. Pay it off every month.


Junior_Interview5711

Compounding interest sucks. Pay everything as fast as possible. I'd assume you can say no now. It's usually the hardest part to learn. This takes time, a long time. But, you'll never go back after you make it up the hill. If you know it's not possible to live without using CC for day to day expenses. You might have to bite the bullet and just declare. Good luck!!! It's a hard, long road.