What should I do about my credit score?

Question

I have a two-part question, but let me give some background first.

When I was sixteen (two and a half years ago), I got a bank account and a debit card. Unfortunately, I didn't handle my new freedom responsibly, and got hit with a good half-dozen overdrafts. Now that I'm eighteen though, I'm getting very serious about my finances and am trying to learn how to manage them well.

so for my questions:

1) Will those overdrafts affect my credit score? If so, what can I do about it?

2) What in general can I do to achieve a solid credit score?

Answer 1

1)No, it does not, cuz u had debit

2)don't use money that you don't have

Answer 2

You still need to pay off the overdraft charges, You want be able to open an account with out paying them off.  They will remain in the banking system! until you do! I know because I did the same thing when I was 17! The banks don't play around! As a matter of fact it was Bank of America! So clear it up! As for your credit score, you only had a debit card. not a real credit card. so you should be find.  Read David Bach book called, Automatic Millionaire, I think you might like it!  

Answer 3

No those overdraft will not affect you. If the bank tried to sock them to  you, you can simply point out that you were under 18 at the time and thus unable to sign for the account.

As far as getting credit goes. You will have start small. Go to your bank and ask them for a Secured Visa Card, or you can go online. Good credit takes time.

Answer 4

Follow through as you started now.  BUILD your credit.  Pay ALL your bills in full and on time.  Pay off your credit card in full every month.  If you have a balance, pay 2-4 times the minimum due every month until it's paid off.  Don't use your credit card for purchases unless you can pay off bill in full when it arrives.  SAVE some money for emergencies.  Act responsibly, take a personal finance or budgeting class at your local community college.

Answer 5

I wouldn't worry about those overdrafts since it technically isn't your credit.

As far as building up your credit score, that's going to require some work by you.  You'll need to spend on a credit card responsibly and make payments back on it in on time.  After a few months of this, you'll notice you're credit score begin to rise!  

Answer 6

Establishing good credit takes a long time and a lot of good history. The discrepancies on your debit card shouldn't show up but your credit card will. First and foremost, if you have a balance on your credit card pay it off. It is also important to have a good amount of debt (loans) on your credit and good history of paying that debt. Car loans and student loans are good for someone your age. I use www.TrueCredit.com  to keep track of my credit report and scores. It's $15/month but you get updates from all 3 credit bureaus. You also have the ability to lock and unlock your report through them with the click of a button. That way no one can view your credit without your permission and no new accounts can be added which protects you from Identity Theft. They also offer a review of your credit report, show you where you stand and offer tips on improving your credit.

Hope this helps!