In addition to borrowing money other expenses are based on credit ratings. Insurance for example. The better your rating the lower your insurance cost. Those in the lowest tiers are surcharged 150% or more with some companies. People with no credit rating often get charged more for insurance than those who have average or slightly below average ratings.

On credit cards you can make timely payments and if your credit rating drops they can raise your interest rate.

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Your credit rating also effects obtaining employment and when renting, found that out when I was moving to Colorado. I nearly dropped my phone when I heard "we really liked your application, but are a bit leery on your credit score". I was waiting for them to say, with such bad credit, we're gonna have to charge you an extra 10% on rent for the first six months.

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More true than you think. I'm going to say something that will sound offensive over a keyboard, please understand that isn't my intent: Your method for improving your credit rating shows a great misunderstanding in how to go about it and how it all works. I can't change/help/fix that over night in a three paragraph anonymous internet posting.

There are so many misconceptions for money and credit. My house was paid off when I was around 46 years old and I won't tell how much money is in my 401(k). After taxes and 401(k) contributions my take home pay is about $22k/year. Deduct another $4k from that for property taxes.

Very simple concept: Don't spend money on things if you don't have the cash and keep putting a little away in savings every paycheck.

There's more to it than that but I see I have touched a nerve so offering advice isn't going to go very far here.

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What you said is fairly obvious in nature. No substantial debt and money down, then its easy to obtain good credit, well, no crap sherlock. 🙂

I took your comments as implying credit rating doesn't effect potential employment, renting a place to live and also your finance rating. I know from personal experience credit rating plays a role in each. That's why I'm working on repairing my credit.


If you start out with "no credit", yes, it's easy to build your credit, as I said, no crap sherlock. Unfortunately, when I was 18, I got a 6k loan for a car and after a year, I sold it only to find out the loan was never satisfied. I was had by the loan officer whom by the time we figured out he lied, I was out of a car and up shit creek for around 4,500 for a car I no longer had. I went back to Pioneer Credit Union to bitch, only to learn that loan officer had been canned and was unavailable. I fought it in the courts, but the girl who bought my car moved to Florida. The loan officer said by signing the title over and a few other documents, the loan an car was signed over to the new owner. Seemed odd at the time, but I wanted out of the monthly payments. Valuable lesson learned.

I refused to pay the loan and it defaulted.

I had a Sears, Best Buy and some other retail company cards in my name. Two mortgages, and two car loans, public service bill and several other items on my credit report as well. It took me from 2004 to last year to to get all three bureaus to get each item off my report. In some cases, I had to tell Experian to talk to Transunion, etc to get them off.

Now what's killing me is my student loans. I'm paying a hefty chunk for one section of it while another sits default on my credit report. They keep dinging me for it, but no number no nothing on how to pay it off, other than one lump sum of $18,000. I'm STILL trying to work out a payment plan and as each month goes by, the number grows! Interest is not interesting to me.

And the thing is, say initially my credit score was 700, then my first loan knocked it down to 600, then the mortgages, etc put it down to say 400 ... once they fixed those errors, it didn't boost my credit score back to 600. Nope, I'm stuck fixing it even though I was screwed.


If you feel you struck a nerve, its a nerve that I feel I was wronged and am having to pay the price for it. I should only be dinged for my first car loan (that fell off in '08) and my student loans.


Yes, it's a very simple concept in spend what you have, not what you think you have or what you think you will have. But, I have to pay extra to get back to a 'normal' score and I understand it won't happen over night. I'm just trying to make sure I don't make things worse. And having a credit card is the LAST thing I've ever wanted to do, but I'm setting it up to auto pay the bill and am only going to use it on gas. I'm very self disciplined when it comes to spending money.

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Tell you what you do... go to a bank... maybe 2 or 3 banks to get other opinions... and sit down with a banker and ask them what you can do to improve your credit rating. It's not clear to what all your goals are other than to get out of debt; doesn't mater, this isn't the best place for detailed financial advice.

If you're trying to buy a better house or just to get a nice car, whatever, the banker may be able to suggest how to get from A to B.

Thinking out loud, one option may be to get some small loans through the bank, like for a big screen TV or furniture. Something you can use but not too outrageous. If you have home equity that will help or they may want a secured loan. It most likely will beat whatever the credit cards will offer.

But the banks may offer options/advice that don't involve loans at all. Sometimes just lowering your overall debt will improve the situation.

There also are debt counseling services out there. Some are free but not all.

It of course is going to be a slow way out of the hole you're in. Do a little more research on the fastest/cheapest/easiest way. Those credit cards for those with low credit ratings can be nasty; if you use it for small amounts just to demonstrate positive behavior, it probably isn't going to provide the changes you're looking for.

I suggested a couple ways where you can talk with people who can give good advice once you provide the details. Meet with several of them; you'll get varying suggestions/opinions but I'll bet you'll get some ideas you'll like.

I can't comment without more details but part of the issue here is not the credit rating but lowering the overall debt. Lowering debt entails its own strategies but usually it calls for changes in personal habits. The money spent each month on eating out, movie rentals, etc., if you cut back on those and apply the money toward the debt (or save it up for cash), the situation will improve. Yes, I know this is a "Duh," but is it? My whole life I've known people who made good money, didn't have huge expenses like kids, but never had anything to show for their money and struggled paycheck to paycheck.

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I did this with several banks, that's how I was advised to take the path I'm taking. 🙂

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I wonder what the debt counselors would advise. I never dealt with them or know anyone who has. I think there is a negative perception of them because they don't offer miracles.

Regardless, after having the night to think about this, it seems your primary issue is debt. An improved credit rating will help, but it's not the catalyst for improving the situation.

Getting rid of the debt is the solution; another "Duh" but the fastest way out of debt is not through gimmicks but through sweat and hard work.

If you give up fast food, use cloth diapers for the babies at home, eliminate the premium services from the cable TV and settle for the basic package, etc., you now have $100 or more per month. Put that money toward the debt; that's $1,000-plus you just got off your back after one year. Relatively minor sacrifices like the above will get you to your goal faster than anything else.

Paying off your debt solves the problem. And you can do this without waiting up to several years for a more favorable credit score. Find a way to do it and you will discover how true my original post was.

Good luck!

P.S. I was raised in poopy cloth diapers, the world survived. 🙂

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lol if I ate fast food or hate premium TV or that stuff, I'd give it up, but I live well beneath my means already. I'm paying things off comfortably. It's just not happening fast enough, even though I know it'll take time, it's just taking forever it feels.

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Apparently I'm doing something right, last month they increased my "limit" by $100.

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Go get more credit cards. Pay them off each month. Store credit cards are easier to get than MC, Visa, etc.

Sears, Kohls, Goodyear, Home Depot, et. al. Go get several, try to use them, and PAY 'EM OFF, monthly.

Again, pay everyone off as you go. Your score will steadily improve. Your score is only going to improve from that 570, trust me on this, regardless of so much advice that will say not to do what I just told you to do. 570 is suckage, but they know that suckage can come from failed marriages, etc. The ALGORITHMS even know this.

Maryanne and I owned a finance company, and were subscribers to the 3 reporting credit co's. We spent a lot of our time fixing our client's credit.