Build good credit with charge-off record?
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Can you build good credit even you have negative information on your report? I have a charge off that was reported 3 years ago, so is there a point to start building credit history, or is it a waste of time? Because as I understand derogatory information stays for 7-1/2 yrs on my report.
Tnx
You MUST start building credit history
It not a question of whether you can or can’t build good credit. Especially if you have a charge off on your file – you must start building credit history.
First – 90% of your credit score is determined by the last 24-months of activity. This means that the charge-off is not affecting your fico score too much, and with time it’s affect will diminish even more.
Second – it takes time, sometimes years to build good credit. The sooner you start, the better, and today is as good as any other day.
Third – part of credit building is fixing any bad information. It is important to note that good credit is much more than just a good score.
Creditors actually look at your file and not just at your score, so even if your score is not affected by the charge-off, you still need to pay your debt.
Hope this clears up things for you.
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