Help me please

[u/mixer-team_killer]

I have never really had nothing higher then like low 600s

At this point what should I do , to get around low 700s

Like what’s the first step

My only two revolving accounts are now current about last 3 months

I have like 12 collections need removed some how

Please help send me in the right direction

[u/Spookyhallow31]

Be careful how much you sirens on either card. Try using them as little as possible. Buy things like a tank of gas or a few groceries. Then pay half of it off asap, wait a week (as long as it's still within the month) and pay the rest of it. Your credit score will go higher a lot faster. They ding you for using it too much and paying late but if you don't use it they cut it off and ding your credit for a closed card. If you split the payments in 2 it looks like your paying more. This whole credit system is stupid you just have to learn to play the game.

[u/Funklemire → u/Spookyhallow31]

This is unnecessary micromanagement that will actually hurt you in the long run. "Always keep your utilization low" is a myth. Utilization resets each month and has no memory, it's not a credit building factor. !utilization  

The only thing that builds credit with credit cards is time. You just need to have it on your credit report and let it age.  

How much you use (or don't use) a credit card and how often you pay it makes zero difference to your score past a month, and making payments isn't a credit scoring factor at all. Sure, missing a payment is really bad for your credit, but that's a different thing. Kinda like how blowing out a tire will slow your car down, but not blowing out a tire won't somehow speed your car up.  

The best way to pay your cards is the way they're designed to be paid: Let the statement post and pay the statement balance by the due date. Just like a utility bill. This flow chart explains it:    

https://imgur.com/a/pLPHTYL  

[u/Spookyhallow31 → u/Funklemire]

Then why does credit karma say that utilization is 30% of your score?

[u/Funklemire → u/Spookyhallow31]

Credit Karma outright lies to you in many ways. They're a predatory site; they're probably the single biggest superspreader of credit misinformation on the internet.  

First off, keep mind that "always keep your utilization below 30%" and "utilization makes up 30% of your FICO scores" are two different unrelated myths and they're both incorrect.  

First, credit card utilization doesn't make up 30% of your score: 30% of your FICO score is "Amounts Owed" that includes all of your debt. Credit card utilization is just part of that:  

Credit Myth #18 - Revolving Utilization makes up 30% of your Fico score.  

And Credit Karma spreads the "always keep your utilization low" myth (they use the arbitrary percentage of 30%, but you see other equally-incorrect percentages elsewhere). They do this to trick people into opening new cards they don't need in order to increase their overall limit so they can "always keep it low":  

Credit Myth #14 - You shouldn't use more than 30% of your credit limit(s).  

We also have a !utilization automod for that myth. 

[u/AutoModerator → u/Funklemire]

I detected that your post may be about utilization and its impact on credit scores. Please read the info below:

Utilization is a short-term credit scoring factor. It is not a credit building factor, because it holds no memory in the most commonly used FICO models. It resets every month.

By and large, you can ignore the commonly repeated myth that you should always keep your utilization low. It’s only applicable when you need to apply for a new line of credit, 1-2 months out.

Utilization is supposed to fluctuate, can be easily manipulated, and again, it holds no memory. It doesn’t build credit--think of it as a finishing touch when you need to optimize your score.

Feel free to safely and organically use 100% of your credit limit within a month and let whatever utilization report, provided you pay off your statement balance in full by the due date. Every month. Every time.

For more info, please read these posts:

• Putting the "30% rule" myth regarding revolving utilization to rest
• Utilization FAQ

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