I am 24 years old. I made some bad relationship/financial choices in 2010. I would like to buy a house (~$ 150K) in approximately one year so I am starting to build my credit and get all these marks taken care of.
February 2015 I had a score of 501. I have 13K of debt.
9 months ago I established a payment plan of $ 5 per month to get my student loans out of default to go back to school. When they reported to the credit bureaus at the end of November my score jumped to 579. I applied for a credit card last week and was denied causing my score to drop one point to 578 according to Credit Karma.
My debt in collections was not paid ever and is as follows:
- Apartment Complex – $ 5600
- Medical – 4 @ $ 3000 total
- PhoneX2 – $ 900
- Ticket(No fare on train) – 5 @ $ 230 each
- Electric Bill – $ 350
My current(on time payments) debt:
- Student loans – $ 3000
I have 4 accounts, 2 are current school loans, 2 are closed for non payment from school loans in past. Then the 13 collections listed above. I have never owned a credit card or a loan besides school loans. I am not sure how to go about rebuilding my credit other than paying the $ 5 each month and getting a secured credit card. Anyone care to give some input on my situation and some advice?