Do not open new credit accounts if you have a short credit history
A consistently short credit history will undoubtedly raise questions on your viability as a candidate for a loan. This is the reason why it is crucial to leave credit cards open for as long as possible. You should also avoid opening new credit lines. This means you are merely making short credit history in each of the new credit lines you begin. Although this may work for you, it will do you no good when you are requesting for a loan. Lenders want to see some form of stability which is something you need to know especially if you are a total noob.
Recreate a new credit score
The truth is, even if you pay off your debt and have a clean record, the bad debt will remain in the record for the next seven years. This means you will be judged based on your having bad credit for the next seven years. Can you wait that long for your credit history to be corrected? There are other ways for you to recreate your credit score even if this particular poor score will still be there. When you get credit cards, for example, ensure you make all the payments on time. Give the lenders something to think about when they see your other credit score against the old score. They may look at the new you and forget about the old you who had a bad credit score. This is an excellent tip if you are a total noob feeling like you have no future because of a bad credit score.
A credit mix is not a credit score
It is easy to assume that if you have many credit cards, it improves your viability because many credit card companies have entrusted you. This is not true. If anything, it makes you look disorganized and have a lack of focus. A single card with a high credit score is a better option to having a credit mix. Only open new credit lines if they are necessary and not just for the sake of it.
Manage your credit cards responsibly
If you have credit cards, you are better placed to receive a loan than someone who has no credit history. Take advantage of this fact by managing your credit well. Always make payments on time and understand how to use the credit card. You do not want to make it seem that you are being given way more credit than you need when you barely use your card while at the same time you do not want it to look like you are living in debt and beyond your means. This can be a tad confusing if you are a total noob but is a critical component when it comes to your credit score.