I've totally messed my credit up & I'm only 19! Can someone lead me in the right direction to make it better??

Question

I’m 19 and I’ve totally messed my credit up when I had no job. I had two credit cards that I totally maxed out and it stopped me from getting another. I’m trying to get a car in the next 6 months and I don’t know how to build my credit back up. I tried to apply for a credit card through CreditOne and they denied me. I also tried to open acct through a credit union and they told me no too! Can someone please help me to find a better way??

Answer 1

The best thing you can do right now is stop using your credit, stop applying for new credit, and pay down your balances. Unfortunately it might take a little longer than 6 months. When you pay off your debts start paying yourself. Put money in savings then when you have enough, buy a car in cash. It sure beats paying interest.

Answer 2

Once you get your debts paid off your credit will improve greatly.  If they haven't sued you yet, try to get enough paid off that they stop reporting you as 'in default' and start reporting you 'paid as agreed'.  

I'd say that you should go for a cheaper car until you get this credit thing taken care of.  Credit problems come from borrowing more than you are able (or sometimes, willing) to pay back.  Getting a $14,000 car will set you back about $280 a month.  You can get a decent six year-old car for around $7500, but your best bet is to buy a decent beater for $1500 or less and keep socking money away from your paychecks to pay for repairs--it usually works out a lot cheaper that way, despite getting hit for repairs every three or four months.  Get the great car you'll love when you have your job and credit problems worked out.

It's a mistake a lot of people make at your age.  They don't consider their parents 'rich', but they don't get that a lot of the things they take for granted are things your parents couldn't have afforded for you twenty years ago when you were born and they had just got started in your careers.  You can't afford to buy yourself the stuff your parents could buy for you.  If you keep trying to live that lifestyle via credit, you'll stay broke.  If you live a little poorer (basically, don't use credit at all) until you get the job on track, you'll have a little less stuff, and a lot fewer worries.

Answer 3

Payoff your debts. No one is going to lend money to someone who can't pay them back or at least has a poor record of it.