How do I repair my credit?

Question

I went away to school and had a hard time paying my bills... as a result I got behind on my payments for a whole year I am in the process of paying all my bills off in full and will hopefully be done by January. How do I rebuild my once good credit?

Oh and I have joined with a credit repair compnay to help. I pay my bills on time now... But the damage is already done. Need help REPAIRING it.

Answer 1

It was like reading my own history. I completely bombed my credit in college and even now am still feeling the heat from it. This is what you need to do:

1. Get a copy of your credit report and take note of all the negative marks. You can usually get companies to take out negative marks on your credit report if you pay in full or set up some sort of payment plan.

2. Consolidate your debt into a single payment. Do this by looking around for "debt consolidation loans" from your local banks or financial institutions. This way you can pay off all those debts and get your credit back on track.

3. Prepare for a long haul. It takes 7 years for bad credit to come off your report. So be prepared to face the consequences of what's already happened. Don't cancel your credit cards that have no annual fees. Hold on to those because you may not be able to get new cards for a while.

4. Pay your bills and rent on a timely basis for the rest of your life!

I'm at the end of my 7 years and have seen my credit score go from 540 back up to 682 now and hopefully when this last black mark is off, I'll be back over 700!! yay! Good luck and remember there is always a light at the end of the tunnel!

Answer 2

Paying off the old debt is the first step.

Once that is handled, you should be able to get a secured credit card (one you put a cash deposit on). Google secured credit cards to find a provider with a good deal.

Usually your limit starts out equal to your deposit but as you pay regularly, they will begin to increase your limit and eventually release your savings.

The perks - you still have a savings account they pay interest on, plus if you run into money trouble again, you can pay it off with the savings so it won't kill your credit.

Then the next thing you need to do is pull your credit report and make sure there isn't anything there that shouldn't be, and that everything paid is marked off as paid.

Time will be your best healer. Even a year down the road, the bad will have a lesser impact.

It is best to avoid having a lot of credit. Save it for important purchases like a home or car, then pay regularly.

If you use a credit card, you do need to run a balance on it for a while to show you can and still make your payments, but then keep it paid off.

Most of us abuse credit but quite frankly, if you don't have the money for something now, you can't afford it. Working to make money to pay for past sins, comes at the expense of having money today for fun now, and money to invest so you can have a secure future.

If you are ever on secure footing again AND can be 100% sure you will pay off the balance each and every month, then get a fee free card that offers reward points or mileage. Capital One has a great one. Then you can charge everything including groceries and gas, and pay it OFF every month. Then you use the points for free vacations.

It's a great concept if you are disciplined.

It's a bad idea if you're going to outspend yourself again.

Answer 3

What you need to do is get all your bills current again - and keep them current - pay off all old debts and do not incur any new debts - my husband and I are currently paying off old bills - and some companies if you call them - will give you a settlement offer if you pay them all at once - then instead of going and applying for new credit cards - just use a debit card - much easier - this way - if you don't have the cash you can't buy it - and if your one of those people who says they need a credit card for emergencies - then get one - and put it in water and freeze it - I know, sounds stupid - but this way - you won't be tempted to use it for stupid purchases - you'd have to defrost it before using it - this way - it's really only used for emergencies

Answer 4

This works! Ask someone who is close to you who has a high credit limit (ex: a $25,000 credit line) but no/ low balance (they dont owe any money on that credit card- they havent charged much or has zero balance). Have them add you on their credit card as an authorized user (tell them that they dont need to give you a credit card or anything just make you an "authorized user") and in a month you'll have the same credit score as them. First make sure they have a credit score of over 700.
I know people that have done this and I will do it soon for one of mu sisters (who I trust).

Answer 5

Once you've gotten everything paid off get a secured credit card and make sure you pay the monthly bills on time. You have to be carefull not to charge more than you can pay. After six months to a year of paying this on time you should be ok Also make sure you pay your utilities on time.

Answer 6

Suzy....right here's a speedy and easy attempt to work out if this is a reputable agency. Ask them to signal a freelance pointing out they are going to thoroughly fix your credit. positioned it in writing what your objective is and in the experience that they are going to assure they could do it. It appears like you're searching to purchase a house, and also you've were given a pair detrimental products? Will that state IN WRITING that they are going to get those got rid of? i will guess they gained't do it. Why? because see you later because the help on your credit list is "honest and precise" it may no longer legally be got rid of. There are truly 2 strategies you'll get a detrimental merchandise deleted from a credit list. a million) The creditor might want to delete it. 2) The creditor fails to respond to a credit bureau analyze request. A credit fix agency can no longer get it got rid of. A lawyer can no longer do it both. each and every thing a credit fix agency does, you could actual do your self. It purely takes somewhat education. yet in case you particularly pick a credit fix agency to do it, it really is tremendous. purely bypass into this take care of your eyes open, and comprehend you're paying them to do something with out assure that is going to artwork (and maximum likely gained't). look on the hyperlinks i have offered....prepare your self.

Answer 7

Try to pay as much as you can on each account but donot pay them off and do not close your accounts keep them open with low balance and pay on time. you have to have at least three acoounts open and active.
do not buy things that are offered no interest no payment for 12 month or longer. if you have credit card with high interest tranfer the balance to the one with low interest so you can save money and pay bigger payments.
good luck .

Answer 8

have you thought about a credit repair company to help you

Answer 9

start paying your bills on time

Answer 10

I wish I knew, because I kind of in the same boat.