Does ebay lower your credit score?

How to Improve My Credit?

• I'm a college student. When I first got to college, my parents gave me alot of responsibility. I got jobs and began paying my own bills such as cell phone, gas, insurance, and opened bank accounts. Well, good times turned to bad times and I lost my job. I've had 2 insurances go to collections as well as 3 bank accounts-one which I've paid off, and one cell phone account. My credit score is between 450 and 550 based on the 3 different agencies. I don't often do inquiries, my latest one, I was approved for a BillMeLater account on ebay for $500.00. I spent it and I'm using it as an opportunity to build my credit. I still have roughly 2 more years of school left. What can I do to improve my credit? And is there anyway I can get my collections items removed/deleted from my credit score after I pay them?

• Answer:

  You might be able to negotiate the removal of the items from the credit report with the credit agencies. Make sure to get this in writing and check your credit after 90 days of payment to ensure that they removed these items. If they are not willing to do this, just paid them off and make sure that they show as paid under the credit bureau. This is why you should get something in writing. Keep records of your payments to them as well and keep these documents with your important stuff. In my industry, I have seen this multiple times to where there was an agreement over the phone and they said one thing but did another and ultimately the customer has no proof of this. Get it in writing first and then paid them and then ask for a letter stating that this was paid in full. Once all of your negative items are paid, open a "share secured loan" with a credit union for 9-12 months and continue doing that for 2 years. You pretty much have to front the funds for the loan, but will benefit from the credit reporting that they are going to do. This is a relatively inexpensive way to re-build your credit. You can also get a secured credit card and keep that for 18 months. Make sure you don't use more than 40% of it's credit limit and that you use it on a monthly basis. Good luck.