Alright, my problem is that I pretty much screwed up my credit for no good reason. I am looking for suggestions on how to fix it, or build it up as high as possible from now on.
The way I screwed my credit up in the first place was pretty much sheer stupidity. I just let my bills slide for no good reason. In fact, most of the time I could have paid them with no problems at all, I just ignored them out of absolute stupidity/laziness.
My situation has changed a bit now. I just graduated college, so (i hope) I’ll be working full time soon, and have some decent money in the future to use to build up my credit.
The credit cards I had/have were one regular MBNA Visa card, a Best Buy card, and a department store credit card. The Visa card had a balence of $3000 at its worst, and is now down to like $100. The Best Buy card is at like $450 right now, which is the highest balence its been. The department store card actually got shut down at about a $260 balence (of which probably only $60 is actual purchaces) which I paid off today in full. All of were ignored at times, for stretches as long as a few months (maybe even 4 or more) at a time.
I plan on having these balences down to $0 each within a month, at which time I will have no debt of any kind. The department store card is shut down, but I will still have an active Best Buy card and the Visa card at that time.
I am only 24 years old, so I do have time on my side as far as fixing my credit. I don’t think I’ll be in the market for a house for at least several years or more so that is good. I will wanting to rent a place in the near future, and probably get a new car within a year (assuming a job) if possible though. I do have someone who could co-sign for me if necessary.
I have heard that paying bills regularly is one thing that builds up your rating. I did just get a cell phone, will paying that bill help my rating? Should I keep small balences on a credit card or two to make regular payments on?
So, how should I fix this situation? What should I do to get my credit at least back to average? What kind of time frame am I looking at here? Any advice?
PS From now on I will be paying each and every bill on a regular basis no matter what. I realize how stupid I was in the past, and I have definitely learned from my mistakes.