Ok I need to increase my credit score, Im only 20 so Im still a little new I have two student loans out averaging about 5,000, One credit card with a $300 limit and a $200 balance. 2 collections one that%26#039;s paid and one for 286. I also have alot of inquiries. Also I just got approved for another credit card I believe the limit will be 300. If I pay my loans and credit cards on time and pay off my collections about how long will it take to get my credit score to a 700??
How long will it take for me to get my credit score to 700?
Some items on your credit report are beyond your control of changing. Like collections and your oldest account. If you have collections, your credit score is seriously impacted because that means you%26#039;re taking hits on a last late payment, a 30/60 late payment, a 90 late payment, and the collection itself. You%26#039;re looking at 7 years until that%26#039;s cleared and you certainly can%26#039;t get a 700 with that collection on the books. Here is a breakdown on how credit works...
PUBLIC RECORDS/COLLECTIONS
DEFINITION
The number of items reported under Public Records and Collections.
EXPLANATION
When debt is not paid in a timely manner, often 90 days late or longer, it is reported under the Public Records and Collections segment of the credit report.
The following is a listing of the items that may be reported as a collection or public record:
閳?Collections
閳?Foreclosures
閳?Garnishments
閳?Judgments / Legal Items
閳?Tax Liens
閳?Bankruptcy (7, 11, 12, 13)
ADDITIONAL INFORMATION
Avoid incurring derogatory public record items including foreclosure, civil and small claims judgments, foreclosure, paid or unpaid tax liens, bankruptcy, paid or unpaid collection items. These remain on the credit report for at least seven years and are seen as very serious by most creditors. Chapter 13 Bankruptcy remains on the credit report for seven years from the filing date while Chapter 7, 11 and 12 Bankruptcy remains for ten years. Though you may be able to get new credit even with some of these issues it may be at a high cost to you.
LAST LATE PAYMENT
DEFINITION
The number of months since a trade line reported was reported delinquent.
EXPLANATION
Every time you make, miss, or pay late on a credit card, loan or mortgage it is reported by the creditor to the credit reporting agency. This is often referred to as Payment History. Your Payment History demonstrates to your creditors how you manage your credit. Missed payments demonstrate a lesser ability to manage credit. The more recent the missed payments the higher the risk. The higher the risk the lower your credit score will be.
ADDITIONAL INFORMATION
Whenever you make a delinquent payment, you automatically incur the biggest point penalty of -30 points (60 point difference from the maximum possible) for this portion of your score. Only as time passes between the most recent delinquent payment and the time of your credit score check will you be able to regain those points. You will not receive full points until that payment reaches 7 years (84 months).
30 %26amp; 60 DAYS LATE
DEFINITION
The number of trade lines that have reported a 30 or 60 days late payment.
EXPLANATION
Every time you make a payment, including one month late (30 days late) or two months late (60 days late), on a credit card, loan or mortgage it is reported by the creditor to the credit reporting agency. This is often referred to as Payment History. Your Payment History demonstrates to your creditors how you manage your credit. Missed payments demonstrate a lesser ability to manage credit because you are unable to pay your balances in a timely manner. The more accounts that you have with Missed Payments 30/60 days late the higher the risk you become. The higher the risk the lower your credit score will be.
ADDITIONAL INFORMATION
Once a creditor reports a late payment it will stay on your file for 7 years unless it was reported falsely. Check the accounts listed for accuracy. If the information is not correct, initiate a dispute.
Non-payment of different kinds of accounts will affect your score in different ways. In the case of Revolving Accounts (such as most credit cards) late, after 60 days, many creditors will charge-off an account or send it to collections.
In the case of secured loans (such as home loans, or car loans), most lenders will foreclose or repossess at 60 days late or greater. It is critical that you bring those accounts current as soon as possible.
90 DAYS LATE OR MORE
DEFINITION
The number of trade lines that have reported a 90 days late payment or greater.
EXPLANATION
Every time you make a payment, including three months late (90 days late), or four months late (120 days late) on a credit card, loan or mortgage it is reported by the creditor to the credit reporting agency. Typically after three months of non payment creditors may report the account as a charge-off, sent to collections, foreclosure, repossession, garnishment, and or judgment. Non payment to local government, or the IRS will result in a lien on your credit report. Such non payment reportings are referred to as trade derogatories. Trade derogatories demonstrate that you are struggling to repay your debt in a timely manner or at all. The more trade derogatories you have the higher the risk. The higher the risk the lower your credit score will be.
ADDITIONAL INFORMATION
If you have been 30 or 60 days late paying bills in the past, try not to be more delinquent on any trade than you have ever been on it in the last seven years. That is, if you were 60 days past due on a trade but never 90 days past due on it then try to never be 90 days past due on it in the future. Automobiles are often repossessed at 60 days past due so be sure to never let your car loan payment get that far past due.
OLDEST REVOLVING ACCOUNT
DEFINITION
The age of the oldest trade line.
EXPLANATION
Credit reports track the age of each trade line listed. The age of a trade line indicates how long the individual has had credit. The longer an individual has had credit the less risk they are. The less risk the higher the credit score.
ADDITIONAL INFORMATION
Your oldest trade is considered an important indicator of risk. Continue to have the account open and gain in age. The older the account gets the more credit score points you will earn. Do not close your oldest trade or you may move to a lower score category and reduce your score.
NEWEST ACCOUNT
DEFINITION
The number of new trade lines opened in the last six months.
EXPLANATION
Every time you apply and are approved for credit, the account is listed as a trade on your credit report. The more trades that are opened the greater the chance that you will accumulate debt. The more debt the higher the risk. The higher the risk the lower your credit score will be.
ADDITIONAL INFORMATION
Do not open new trades unless they are absolutely needed. Opening a new trade is a double whammy for your credit score. First it will count against 閳ユ窔nquiries閳?and secondly it will impact 閳ユ罚ewest Trades閳? Know where you stand with your new trades and your inquiries.
If you can not wait and must seek additional credit it is recommended that you do so with an existing creditor who you have paid on time and are not over or approaching your credit limit. When you seek credit with a lender who you already have an established relationship with, they may not need to evaluate your credit in a way that generates an inquiry on your credit report. As a result, your score should not be as adversely impacted.
ACCOUNTS WITH BALANCES
DEFINITION
The number of open trade lines that have a balance that are up to date.
EXPLANATION
One of the main objectives of any Credit Score is to determine how well you manage credit. In order to determine how well you manage credit you must use credit. Failure to use credit will make you a higher risk. The higher the risk the lower your credit score will be.
ADDITIONAL INFORMATION
Remember that an account must be open and show a positive balance within the last 12 months in order to be used for this total. A balance does not need to be substantial, nor does it need to be maintained for more than a month to qualify that account for the next 12 months.
HIGH BALANCE TO LIMIT
DEFINITION
The number of accounts that have an account utilization of 75% or more. Account utilization is calculated by dividing the revolving balances by the revolving credit limits for each trade.
EXPLANATION
Creditors evaluate the number of bank revolving trades that are highly utilized (75% or greater) because it helps indicate how extended you are. The more highly utilized bank revolving trades you have the higher the risk you are. The higher the risk the lower your credit score will be.
BALANCE TO LIMIT
DEFINITION
The sum of all revolving balances divided into the total of all revolving credit limits.
Example:
If you have only 2 credit cards, each with a credit limit of $500, and one card has a balance of $400 and the other has a balance of $200, you would have a total revolving account utilization of 60% ( ($400 + $200) / ($500 + $500) )
EXPLANATION
Creditors evaluate the total revolving utilization because it helps indicate how much of your credit you have used. The more credit you have used the more you will have to repay. The more you have to repay the higher the risk you are. The higher the risk the lower your credit score will be. Utilization is calculated by dividing the bank revolving balance by the bank revolving credit limit for each of these trades.
ADDITIONAL INFORMATION
Repayment to optimize your credit score should occur in the following order if applicable:
Repay any accounts that are 30/60 days late. You want to prevent these accounts from becoming 90 days late or more.
Pay down the balance of any revolving accounts that have a High Balance to Limit.
Pay down the creditor with the highest interest rate.
Repaying your debt in this order can have an additional impact to your score.
If you can pay down the balances on your bank revolving credit accounts so that they are lower relative to the credit limits then you should score better. If you are acquiring additional credit it is recommended that you do so with an existing bank revolving creditor that has the lowest interest rate who you have paid on time and are not over your credit limit. It should be an account that you have had for at least 12 months. A third approach, if possible, may be to balance transfer from your highly utilized accounts to another account(s).
RECENT INQUIRIES
DEFINITION
The amount of times you apply for credit in a 12 month period. The more times you apply for credit the lower your credit score.
EXPLANATION
Every time you apply for credit (a credit card, store card, furniture, or a car, etc) an inquiry is made into your credit report. Such inquiries are called hard-hits. A high number of hard-hit inquiries within a year閳ユ獨 time indicate you are seeking additional credit. Seeking additional credit generally means you will acquire additional debt. As a result, the more times you inquire for credit in a 12 month period the higher risk you are. The higher the risk the lower your credit score.
ADDITIONAL INFORMATION
If you can not wait and must seek additional credit it is recommended that you do so with an existing creditor. The creditor should be one who you have paid on time and are not over or approaching your credit limit. When you seek credit with a lender who you already have an established relationship with, they may not need to evaluate your credit in a way that generates an inquiry on your credit report. As a result, your score should not be impacted.
Try to avoid the temptation of applying for credit because of promotional rates. Often the deals are enticing 閳ユ笩ave 20% by applying for a card today閳?or 閳ユ笡ay no interest for 24 months閳?but usually those companies have higher than usual interest rates and stiff penalties for not paying on time. Be cautious with your credit, do your homework, understand their terms, rates, and penalties and only apply for credit when it is really needed.
How long will it take for me to get my credit score to 700?
Stop applying for credit cards. You will end up in massive debt. Your scored should be in the $700. Leave the collections slone of your cerdit scores will go down.
How long will it take for me to get my credit score to 700?
Not enough information - do you know what your credit score is right now?
Pay the collection ASAP! And pay off the credit card - don%26#039;t carry balances (makes sense both financially and credit score-wise)
To many inquiries damage your score as well - don%26#039;t apply for any additional credit for quite a while.
How long will it take for me to get my credit score to 700?
Go to truecredit.com they have a simulator as does suze ormans site.. they are all good and u can use the site and it will tell you what you need to do for your score to go up. thanks
How long will it take for me to get my credit score to 700?
Agree with the others... stop applying for credit cards.
Credit.com offers a free credit card report card that will grade different aspects of your credit score and tell you how to improve them: https://www.credit.com/ufg/default/ccom_... and the following article will show you tips for raising your credit score: http://www.creditave.com/credit-report/b...
Hope it helps.
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