Whats the best way to clear up bad credit????

Question

Credit,money,bad credit

Answer 1

Living with debt or bad credit can be very stressful, but help is closer than you realize. Improving your credit rating requires that you take positive action and change your attitude toward money.


Steps:
1. Request a copy of your credit report from a credit bureau. If there is an error, write to the bureau and ask it to fix the mistake. It might also help to contact the creditor who reported the error. Some creditors will contact the bureau on your behalf.

2. If the bad marks on your credit report result from outstanding debts, repay them as quickly as possible. Pay off those with the highest interest rates first.

3. If your debts are overwhelming, contact a nonprofit credit-counseling organization to work out a debt-consolidation plan. A counselor will help you consolidate your debts and will contact your debtors on your behalf to reduce or eliminate finance charges. This can reduce your monthly payments by up to 40 percent.

4. Steer clear of any services that offer you credit-repair or debt-consolidation loans. These companies will plunge you further into debt. Be suspicious of any company that advertises aggressively or sends unsolicited mail or e-mail.

5. Close your credit accounts and cut up the cards. Sell valuables or liquidate assets that will help you repay your debts. Buy the bare essentials (food and gas) and use the rest of your earnings to pay off your consolidated debts.

6. Work with your credit counselor to repay all of your debts. Meanwhile, live a life that will help you re-establish good credit. Pay rent and utilities or mortgages promptly, keep the same residence and job, maintain savings and checking accounts, set a budget and stick to it.

7. Once you have repaid your debts, apply for a new credit card to build a good credit history. It might be easier initially to get a department-store or gasoline credit card or one from an employee credit union.

8. Promptly pay off the balance of the credit card monthly to build good credit. Use the card responsibly.

9. If you don't qualify for a regular credit card, apply for a secured one. With a secured credit card, you fund an account up front and then "charge" expenses on it. This card will show up as a credit card on your credit report and, if used responsibly, can help you build a good credit history.


Overall Tips:
Get a copy of your credit report once a year even if you think you have good credit. You may find errors that will damage your credit rating.

Filing for bankruptcy is always an option, although your credit history will reflect it for 7 to 10 years, making it very difficult for you to get a car or home loan in the future.

Creditors agree to reduce or eliminate interest rates under a debt-consolidation plan because it saves them the expense of collection efforts and increases their chances of recouping the balance.

Every application you make for a credit card shows up on your credit report, and multiple applications can hurt your credit rating. To avoid this, use an online service that matches you with creditcard companies that will extend credit to you. Search online for "credit card finder" or "credit card search."

No matter how bad your credit is, you can take steps that will make it better.

1. Pay all of your bills on time. Late payments (payments that are 30 days late or more) have a negative effect on your credit rating.

2. Reduce the number of credit cards you carry. Write to your creditors to request that they close your accounts and report this status change to all three credit-reporting agencies.

3. Avoid bankruptcies, tax liens (a lien for not paying state or federal income taxes or property taxes) and collections. A bankruptcy stays on your credit report for up to 10 years. Collection accounts and paid tax liens stay on for seven years, and unpaid tax liens will haunt you forever.

4. Request in writing that your creditors reduce the credit limits on your accounts to lower your amount of available credit. The total amount of available credit is considered by lenders even if you owe nothing.

5. Ask a family member or friend to co-sign on a small loan or credit card to help you re-establish credit. Make your payments on time.

6. Get a secured credit card to help reestablish your credit. You will have to keep a designated amount of money in an account that will be sufficient to cover your charges. Make payments on time.

7. Get a yearly copy of your credit report to catch any errors

Answer 2

keep current with your payments.
If you cant afford your payments, ask credit card co. if they will lower interest or help you in some way so that you can pay them off.
Some are willing to work with you BUT you may not be able to charge any more on them.

Get a copy of your report and make sure nothing is on there that is not yours.
Anything you argue has to be proved by the company posting it,sometimes something is worth arguing because they dont get back to the credit bureau and then it is removed.

Finally credit scores are also based on the ratio of credit available to how much you have charged on it.
If you have a card that you can charge 100 on and you have 90 on it ( simple math )you are at 90% .
If you have a card with 1000 dollar limit and you charge 100 you are only at 10%.
Try and get everything below 1/2 of what you can charge on that card if you want to raise your credit score,
if youre trying to p[ay things off pay more on the ones withthe higher interest first.
Unfortunately you have top pay more than the minimum if you want to ever get ahead.

Answer 3

The first thing is you must be totally committed to solving the credit issues. It is not something you will succeed at if you go into it half heartedly.
Begin with trying to set up affordable payment arrangements with anything you have that is currently in default, collection, or charge off. You may be surprised at how little they will agree to accept each month to begin to clear up the debt. Once you start paying under the re-negotiated agreements, you credit bureau will indicate that you are once again making payments as agreed.
Secondly, try to obtain an installment auto loan. Depending on your score, you may have to pay extremely high interest, but the on time payments to this type of loan will do more to increase your credit score than revolving, or credit card type accounts do.
Once you have the auto loan, just work on your current past due accounts while paying ON TIME EVERY MONTH on the auto loan. This will give you a good start to getting things back in order.

Answer 4

Houses are big financial commitments that are not liquid. I would work on paying off your student loans and cleaning up your old debts. I would continually check your credit and see how different things improve your standing. The problem with taking a loan if you can get one with a bad credit score is that the interest rate will be really high. Remember to get your self very well set up before purchasing a house.

Answer 5

Just buy what you need and nothing else. Set up a free savigns account and put in WHATEVER money you have to spend in it.
Then, little by little, pay off your bills. It may take a while but thats the most stress free way.
You could also invest in stable stocks and get some cash flowing, but there is no guarantee there.

Answer 6

Once you have your reports, scan over the personal information, such as your address and employer info. If everything looks okay, then take a close look at your accounts. Are they listed with the proper information, and does it correctly reflect the payments you’ve made? Be sure to compare the three reports, because a creditor might report to one bureau and skip the other two. For more information: https://tr.im/66f4e

Answer 7

Credit repair techniques depend on your personal situation and the types of credit accounts reporting negatively. Some articles that should assist can be found here http://thecreditadvantage.blogspot.com/search/label/Credit%20Repair

Answer 8

-Don't apply for more credit
-Don't max out everything...having an available balance will affect your score.
-Write directly to the credit bureaus to request incorrect things to be removed from your credit reports (you can do it online too)
-Don't be late with your payments...call and work with your creditors if you have to, but don't be late and get the bad marks on your credit repport.
-When you have everything in control, pick one card to use and stick to it and nothing else.
-Get rid of the debt with the highest interest rate first.

Answer 9

A bad credit rating can limit your borrowing options. County Court Judgments (CCJs), defaulted payments and bankruptcy orders leave a black mark against your name when trying to secure credit.
For more: https://tr.im/squeeze

Answer 10

Learn new shopping habits. JUST SAY NO!!
Live with what you have for about 6 months and you will naturally adapt to less shopping. Obviously you have to pay your bills but the key is to NOT CREATE NEW BILLS.