- Posts: 1
- Joined: Thu Mar 05, 2015 9:19 pm
- Location: Champaign, Illinois
I am currently a college student with ~20,000 in annual income. I was very admittedly an idiot with a credit card I got when I was 18. I maxed it out, it got closed and sent to collections while I went through a period of unemployment due to personal medical reasons. Upon the collector contacting me, I explained the situation and paid them off promptly and they actually forgave some of the debt. A somewhat understanding creditor - I'm still in disbelief.
Flash forward a few years: My credit score is obviously crap. I began an effort to rebuild it this summer with a couple of store credit cards. I have used them and paid them off in full every month. I then got a car loan through a credit union in November (didn't want a car loan, believe me, but the price of fixing my old car was more than what it was worth, and I needed something more reliable to get me through the rest of my college career). Payments are automatically deducted from a savings account, so always on time. I also have several student loans, which I make regular on-time interest payments on. I am a frugal spender now, having learned from my mistakes and my parents' (they have made several...). I cannot wait to prove I am a responsible adult and have it reflected by my credit score.
On a whim, and at the suggestion of CreditKarma, I applied for a credit card through Capital One last night. I was shocked when I was approved, because at this phase of rebuilding, my credit score is still only ~560 and I was declined a few months ago for a CC through my bank. My credit line is $1,000. My question is this: what is the best way to continue to increase my crummy credit score? I've heard putting a subscription such as Netflix on the card, so it is used every month but easy to pay off.
I'd also love to hear any success stories, whether they be about increasing dismal credit scores or paying off massive student loans! Thanks for reading, and for any advice and feedback!