Why is the credit system so messed up, how can a person with bankruptcy & repos have better credit then me?!!?

Answer 1

Often it is a overall history of your credit, not just a period where someone fell on hard times. I am with you about it being messed up!!

Example-
1) 30 years credit history, 40 closed accounts paid as agreed, 10 open accounts paid as agreed, low balances, declared BK 5 years ago, and had a car repossed 5 years ago.
2) 3 years credit history, 5 open accounts, many recent inquiries to get approved for any of those 5 accounts.

#1 had a obvious hard ship, and by declaring BK was able to close or discharge some of the derogatory accounts. In 30 years of reported credit history he has demostrated a willingness to repay his debt, although at one point he had to lose everything by declaring BK. If 5 years had passed the repo and BK affect his credit less over time. It is still reported but not harming his fico any longer. It lowered his fico at one time, but they will not continually decrease his score because of it. After BK establishing new credit also improves his score.

#2 Being a new consumer to the credit world, you will need many years of paid as agreed, maintain balances around 40% of your limit, and you need a good mix of open credit. Mtg, auto, and revolving credit in your file.

I do agree with what your saying, and my job has allowed me to pick the brains of credit experts who clean up and rescore the people with those repos and BK. I have complained endlessly about my own situation, I had a medical collection for $90 I tried to pay the hospital and they said it was under $100 the legal amount necessary to collect so it was delted from thier system. 4 years later it popped up with a balance of $181 through 3 different debt collectors all trying to say it is thier account I must pay. The credit gurus I work with, advised me to ignore all 3 collections as it will by law have to be removed in Dec of 2006. If I paid it, it would begin reporting new for another 7 years as a collection that was paid.

Answer 2

Order your free copies of your reports and find out. If you are new at having credit, then start out by getting a very small credit line somewhere, like a store card, (like Penneys or something are usually easy) then just buy a small item or 2, and pay it right back.

If your credit is that bad, and your not just starting out, you just need to pay your bills on time. they look at the most recent year.

Answer 3

Do you have no credit at all? No collections, etc?

I can have you over 700 score in 6 months. Send me email, I will help, its fairway_finance @ yahoo .com

Of course Im not gonna ask personal questions, or ask for money, but its so easy to do.

Answer 4

Having bad credit is sometimes better than having no credit at all. They know where to find this guy. You are new and for all creditors know, dont exist.

Answer 5

If you have never had any credit then you can't prove you are a good payer. Mad eh?