When I was 18 I opened my first two credit cards and maxed them out. Granted I was very financially illiterate, so I didn’t realize the importance of good credit and how badly that would impact my score. By 22 my score was literally at a 410 which was quite the joke. I’m now 25 and am trying to repair everything so I can get better credit cards, loans, and my own place in the future. I opened a CapitalOne credit card and was given a low credit balance of $500, and eventually was approved to bring it up to $900. As of right now, my credit score is at a 589. I keep my utilization under 10% and would pay everything before the statement date, but eventually stopped using the card so it sits at 0. I’ve been genuinely trying to improve my credit and becoming more financially stable and literate. My main issue is bringing up my credit score. Eventually I would like a bigger credit limit, and better cards so I can start utilizing their points and perks.
My main question is in regard to the two cards I opened, as well as how to rebuild my credit. They were charged off in 2020 and the first delinquent mark (missed payment) was in January of that year. I know they say charge offs fall off your account in 7 years, and I’m reaching that point. But both credit cards companies have reached out with payment options either to settle or pay in full. The balance each card is around $1,200. I would also like to know how to go about removing late payment marks on my account as I haven’t made a mistake in 2.5 years. Please let me know what to do, any advice will be helpful and gladly appreciated.