my credit is in the 600 reange. is that good?
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Ok so I had tried to get a charge card, and about a week later i had gotten a letter for the company which had explained that my credit score was 640. But i have nothing in my name besides school, which im currently in and my debit card, which i use at times as a credit at time, and that will come out the my banking acount 2 to 3 days later… So my question here is Where did this credit score come from and is it bad?.. PLEASE HELP ME UNDERSTANDDD! -Thank Whitney B
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November 30th, -0001 at 12:00 am
I’d say that a 640 is on the lower end of “average”. See this article for more info: http://www.experian.com/credit-education…
So, were you turned down for the credit card? Is that what the letter was about? You may not have enough of a history for them – or you may not make enough money if you’re in school.
A debit card does not help you build a credit history. It’s basically like a check – the money comes out of your savings or checking account.
Do you have student loans? That could be where the score has come from. Once you start paying on the loans, your credit score will improve.
If you want to build up your credit score in the meantime, I’d suggest getting a secure credit card through your bank or credit union.
Say you have $300 in an account. They’ll put a hold on that money and issue a secured card for $300. You won’t be able to use the money in your account during this time – but you should charge something (I’d just charge a lunch or a tank of gas) once a month and then pay it off right away.
After 9-12 months of using this way, you may be able to qualify for a regular card. This could still depend on enough income, however.