I am 19 and my credit has crashed since i bought my car and had a few difficulties. what should i do?

Question

I bought a car this past march (no cosigner). I have had one collection that was settled, used about $1400 of the $2000 revolving cards and my scores aren't the pretty 680s and 700s they use to be. Should I apply for more credit? i have a picked up another job to counter my new debt, but I am looking to do some major projects soon. i desperately need more credit. is it too risky to add more inquiries and ask for credit?

Answer 1

I would suggest not getting more credit cards, because you would put yourself in a bigger debt.  Even if you were to get another credit card, they will see that you have other cards with outstanding balances.  That would result in a lower maximum charge amount you have, and higher interests.

Answer 2

If you settled your collection account, try to dispute the account with the credit bureaus and see if they verify it. You might get lucky and have  it fall off your reports.

You can do that for free at annualcreditreport.com.

You are only 19. Can your major projects wait until you get your credit scores up? You'll be much better off in the long run if you pay less interest on your new credit a year from now rather than getting higher interest rates because you had to have new credit now.