At 19 I started attempting to build credit and all was going well I had about 550 and rising, using my credit card only for gas and paying it off within a few days well before my closing date. At about 20 I hit a rough patch and was losing kitchen job after kitchen job and eventually started to use the card for more than just gas. I only had a $1000 limit so nothing to crazy, but I was trying to live a life I realistically could not afford. I pushed the $1000 balance to the side for probably 7-8 months and my credit has dropped to a 497. I have recently been denied by an apartment complex because it is so low and I’m looking for any help how I can start building it back up or did I ruin it?
I’m sorry for terrible typing or if it’s confusing
@joan316 Your credit history is low and you racked up credit card
Debt so your score is low
You need to cut your costs as you mentioned and try to find a cheaper place to stay- maybe rent a room or even living room from a friend or family to save up and pay off your debt
Some land lords will accept a larger deposit (2-3 months rent) since your score is lower. Or accept your bank account statement showing you are paid consistently and can afford the rent.
Else split rent with others for now or apply to other apartments
@meladelle already in the works man i just got a place with my dad i’m paying about $950 a month on that but all under his name, i make roughly $3000 a month now with my new job it’s been steady for about 6 months i’ve been super bad with budgeting though and i still owe $400 ish
@joan316 Yea you're probably going to need a secured line of credit where you put down a deposit.
Main thing you are looking for is no annual or monthly fee. Keep it simple just spend $5 a month and pay in full. In fact the more you spend the more your credit scores drop.
@joan316 Regardless of what you hear, you dont need to use your credit card to help your score. Simply opening one and not using it will have the same effect as credit card companies only report a C for current or D for delinquent to credit agencies. So as long as you carry no balance or are not late on payments if you do have a balance it will be reported as current. About 6 months of this should help your score. The more accounts you have open the better your score can be. To a degree.
@joan316 Did you have any late payments, or did you pay your minimum payment on time always? Late payments will drastically hurt your score and remain on your report for a long time. But, if you credit went down just because your CC balance was high, your credit will bounce back quickly after you get that balance down. There is no “memory” for credit utilization
@joan316 I was at a 543 when I was 20, 600s throughout my 20s (debt and such), paid it all off when I was 31 and my score has been in the 800s most of my 30s. You still got time and will be fine, just pay it off, build a good emergency fund and never use debt as your emergency fund again.
@joan316 Very recoverable. You are young and the amount of debt is low.
Don't take on any new debt.
Cut your expenses to the bone. I'm not sure what the apartment market is like where you are at, but if you can find something cheaper than $995, do it. No eating out. Live on food that you prepare at home, and not just ready to microwave meals. Spaghetti, rice, beans, make sandwiches, fresh or frozen produce, etc. No soda, no alcohol, no cigarettes/vapes.
Pay off your existing debt. Sounds like you are close here.
Open a secured credit card. Make one small purchase each month. Pay of in full every month. The number one weighted item for your credit score is whether you pay your account on time or not.
@joiner77 wow wow wow i’m sorry for the late reply dude but this is the best advice i’ve ever gotten. In response for hopefully some more insight, I’m in San Diego haha so the apartment market is insane, $950 is the best i’m gonna get even room rentals are $1000+. That $950 is after the split our rent is $1800 without utilities for a One Bedroom so trying to save as much as possible their. In regards to career, I am a Pool Servicer, I make $23 an hour now and it’s just me and my boss with about 200+ clients so i’m definitely putting a lot of faith in him to raise my pay and let me grow with him, he’s also the first company to start a retirement fund for me and he’s matching 3% so i’m hoping I am getting somewhat of an early start on that to also help my low credit, my plan was to save enough money and build enough credit so that I can eventually start my own pool business. This is just a rough thought though and I’d love some insight as i’m kind of realizing through time that my job is considered a “laborer” job so I would ideally like to switch to a trade, preferably electrical, and start my own solar company in the long run. I truly appreciated all your help and have a blessed weekend, I’m wishing the best for you
@joan316 Definitely be careful and look ahead but don’t ever think you’ve screwed your life over because of a credit score. You’re not buying a house in the next couple of years so you’ll have time before you’d even really need to worry about credit for something important you couldn’t manage without credit.
@joan316 This will be a frustrating process for you OP because credit scores take 7 years to fully rebuild. Just don’t get discouraged when you’re at the one year point and it still sucks. You’ll make it through just gonna take some time and good financial decisions from here on out
@joan316 Short of doing something that sends you to prison for 50 years, there's practically nothing you can do at 21 that will ruin your life. Acknowledging the issue, and determining a plan will clear things up pretty quickly. Sounds like you have a handle on it!
