I have overdrafts, loans and credit cards and I have missed many payments on all of them and am overlimit on my overdraft and credit card. Apart from making payments on time how can I get a better credit rating? Will it only get better once I don't owe anything or if I begin to make regular payments on time will that improve it? How long does it take for it to begin to improve? I'm in the UK so need info for here please. Thank you!
2006-06-07 04:55:54 · 8 answers · asked by coola 1 in Business & Finance ➔ Personal Finance
For the most part, it doesn't matter what country you're in. The only thing that can improve your credit rating is time and better credit history. Make your payments on time. Make extra payments when possible. Call your creditors to see if they can help you by lowering your interest rates and refinancing loans for a lower cost. My husband and I had BAD credit, and this was the only thing that could help. If you file for a bankruptcy, that will be on your credit for several years and will look worse to possible creditors than the fact that you are trying to dig yourself out on your own. You made the mess, no you have to clean it up. I know it sucks, but it's true. Make sure you keep accurate records so that when you finally pay a bill off, you can contact the credit bureaus with that information and get the bad info off quickly. We did this and we were able to buy a home, a new car, and a motorcycle within a year and a half! Good luck!
2006-06-07 05:02:13 · answer #1 · answered by tom8o 3 · 0⤊ 0⤋
This is probably a universal truth - consult a credit counelsing agency. They will lower the monthly payments and consolidate the debt by working with the creditors on your behalf. This won't immeadiately improve the score but it will help.
Whatever you do, don't get any more credit. Though if the score is low enough no one will extend it anyway.
Bankruptcy may be an option to do away with the debt but it will take years to repair your credit after that.
Good luck.
2006-06-07 04:59:48 · answer #2 · answered by Lisa 5 · 0⤊ 0⤋
Call your creditors and explain why you've been delinquent on your payments. Most of them will be willing to arrange a payment plan. Then put everything you can on automatic deduction, so you don't have to remember to pay. Make certain the money is in the bank in time for the deduction. After you have paid all your obligations on time for a year or so, your credit will begin to improve. After you get your debts cleared, pick up a little book called "Secrets of the Millionaire Mind" by T.Harv Eker. It explains what percentage of your income should be spent on what in order to stay out of financial problems.
2006-06-07 05:03:19 · answer #3 · answered by rainbeauclown 3 · 0⤊ 0⤋
You have to start showing a record of timely payment on all your obligations, as a first step. Credit ratings are based on many factors, but timely payment of obligations is key. Also, the ratio of how much you owe to how much credit you have is a factor - the higher the ratio, the less creditworthy you are.
It will probably take a couple of years at least to fix your credit rating. You need to get the ratio of what you owe to how much credit you have down.
2006-06-07 05:03:20 · answer #4 · answered by Jack 5 · 0⤊ 0⤋
DO WHAT IM DOING... go to a consolidation agency and they will help you lower your interest rats, and the best thing... u will only have to pay one bill (for all of your credit cards). you will still be getting your creditors statements but you dont have to pay them, you pay the agency.
2006-06-07 06:26:16 · answer #5 · answered by Anonymous · 0⤊ 0⤋
use the link on my profile which list this on its page
you will receive immediate online access to our Exclusive Bad Credit Lender List and Credit Repair Kit.
2006-06-07 06:11:42 · answer #6 · answered by umdanddvd 3 · 0⤊ 0⤋
There are definitely some things that you can do to improve your credit score. I tried to do this recently and came across this site, http://www.webcredithelp.com
2006-06-13 13:03:51 · answer #7 · answered by Anonymous · 0⤊ 0⤋
there really isn't any other way besides paying them on time.
2006-06-07 04:58:57 · answer #8 · answered by G.O.A.T. 6 · 0⤊ 0⤋