Please read this entirely then respond with your answer. I would like to know what is the best way I can improve my credit? I have all credit debt paid off and has been for 2 years now. I have no debt. I recently attempted to get a $ 300 secured credit card from bank of America but was denied. They also talked me into applying for a regular card from them and also was denied this took place in Jan 2010. So I have 2 inquires from BOA now. I applied last week for a Capital One unsecured credit card (1 inquiry) and was instantly approved. I will probably have the lowest limit which is $ 300 due to my past bad credit items. I will receive this card next week. I know to use under 30% of my debt to credit ratio. However I plan to only use 7% because this is what FICO recommends and you can achieve a higher score. I have read it is good to use a mix of credit such as revolving, installment and charge. After being approved for the Cap One card I decided to dispute two of my old negative accurate accounts on my credit reports with all 3 burearus. One has successfully been removed by Experian and transunion so far. So now I only have 3 negitive accounts on record these are listed below. I know to wait 60 days then dispute one or two items once again otherwise my reports will be flagged by the bureaus. I have quite a few thousand in the bank should I use some of this money to also get a CD secured loan from my bank or a credit union? Should I put a $ 1,500 deposit down on a secured credit card from my local credit union? Should I apply for an American Express charge card (good/excellent credit is needed from what I have read)? Currently before trying with bank of America, applying for Capital One and having a negative account removed from my credit reports My FICO scores were in early January 2010 Transunion: 597 and Equifax: 648. Experian has no FICO score so I will never know it, the Vantagescore from what I have read is useless and not used by lenders or creditors. Also how much will my credit scores improve 1-2 years from now after using at least Capital One credit card or other forms of credit building methods? Be it charge or installment. Will I be in the 700+ score range? This is my goal to be at in 2 years or less. By 2013 all negative items should be off my reports the 7 year period if not disputed successfully.
Negitive items: 3
2 charge offs / bad debt closed
Remove by 09/2012
1 credit card
2- 90 day late payments
Held for one year then closed
Went over limit
Remove by 09/2012
Good accounts: 5
One open, never used. 4 closed
Longest account 5 years old
Goal FICO score: 700+ (2 years or less)
The card I am recieveing from capital one is unsecured NOT secured. The negitive accounts I have been closed for years and have NOT reported since 2005, 2007, 2008.
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