How do you fix a credit score of only 400?

Answer 1

The spiritual things to do:
1. Pray ask God to forgive you of your mistakes, debts and ask for wisdom.
2. Tithe and attend your local church on a consistent basis (10% of your gross income)
3. Present offerings and you believe the Lord pulling on your heart.
4. Forgive others that may own you money, (you have to sow a seed, in order to reap a harvest)

The practical/natural things to do:
1. Check your credit report with all three credit bureaus.
2. Look for errors.
3. Write each credit bureau that reports errorneous items about you.
4. You may have to prove some of the items that maybe reported about you as incorrect.
4a. For example if you have paid off some bills that are reported as charged off, but with a remaining balance.
4b. Write each bureau, that reports that information, show them a copy of the receipt. Also, contact the company that reported the charge off on you, and ask them to bring the credit report current.

Although you may have several charge offs, it does not weigh as heavy as charge offs with balances that you have not paid off.

5. Make a decision to not apply for any new credit.
6. If you have any good credit accounts that you used to use a long time ago, but haven't used them. DO NOT CLOSE THOSE ACCOUNTS! Good old accounts prove longevity, New accounts prove potential credit risk!
7. Do not open any new accounts, unless #6 does not apply to you.
8. Get on a budget AND STICK TO IT STRICTLY!
9. Create a debt repayment plan.
10. Don't think that you will correct your 400 score overnight, remember your score didn't get like that overnight!

It may take anywhere from 6 months to 2 years to correct.

The important thing is to not get discouraged, and to stay focused on your goal.

Before my wife and I, got into the home, we are presently in, my scores was around 575, and it was difficult to get into a home unless we had a large down payment. Since we didn't have that we went to a budgeting class, offered at our church, we were already doing the spiritual things outlined above, we just needed to do the practical/natural things outlined above.

Once we did that, approximately 9months to a year later, we were above to move into our first home, with practically no money, because the $1,000 we have to put down for earnest money, we got back at the closing table.

To God be the glory.

One other important thing to remember, is once you are eligible for credit again, DO NOT buy a use all of the money that a lender says they will allow you to borrow.

For example, if the lender says they will allow you to borrow $175,000 @ 100%, use only around $115,000 of that money. Start out small;purchase maybe a townhome first, and then maybe a home! Once you have paid your mortgage on time for a full year's time on time each and every month. That will build your credit score as well!

Do not apply for credit to furnish every room in that home all at once either. Take your time, remember; mortgages are most likely going to be with you approximately 25 to 30 years anyway, depending if you don't pay it off any earlier than that.

Remember STEP #8 don't throw your budget out the window, stay focused, budget in for furnishings. Shop at a thrift store. The furniture maybe used, but it better to have used DEBTFREE furniture, than NEW furniture, that someone can potentially repossess from you for none payment.

After you get the new home, throw a home warming party, invite your friends, family and co-workers. Register at a walmart, home depot, lowes, or just have a monetary home warming party.

In case you don't know what a home warming party is, it is when you invite people you know over for them to see your new home for the first time, and for them to celebrate with you, by bringing you a first time home gift (either something you have selected on a gift registry, or monetary). No matter how someone chooses to bless you, you shouldn't care.

Don't do an expensive meal to thank them either. You can simply do a dessert home warming, where you have a variety of desserts available for your attending guests, or something simply like hotdogs and burgers, chips, and kool-aid or softdrinks.

Your guests are not coming over to primarily eat, they are coming over to primarily bless, encourage, give unto you, so that when their turn comes, someone (like you) can give unto them.

Also, after the home warming party, be sure to create a sign-in sheet, address, along with the gift that each person gave to you. Because afterwards, you are going to write each of them a personal thank you note letting them know how the gift they gave will enable you to decorate your kitchen (if it is glasses, pots, silverware), or entertain guests (if it is a TV, or couch), to invite others to dinner (if it is a dining room set), or do something meaningful (if it is money).

It is always good to say thank you!

I pray this information helps you in your endeavor to improve your credit score.

By the way, one last step; STAY AWAY FROM THE COMPANIES THAT CLAIM THEY CAN FIX/CLEAN UP YOUR CREDIT SCORE IF YOU PAY THEM A FEE!!! 9 TIMES OUT OF 10, they cannot, and you will primarily lose your money.

Answer 2

Begin to eastablish credit with some small credit card purchases and pay those off. Absolutely under no circumstances be late or blow off a payment on a bill. This will kill your credit score. Go a year without missing a payment and I can almost guarantee a hundred point increase in your score if you use a few small credit card payments. The credit card doesn't have to be a visa or mc it can be a gas card, dept store card, or other revolving account. Just be sure to make all your payments on time.

Answer 3

check out lexington law firm they are based in salt lake city , utah you can get them online at www.lexingtonlawfirm.com or i guess you could find their number and call them, they will charge you a hundred to start your account then it will cost you about 60 dollars a month to keep your case open, they do good work, you got a lot of stupid answers already people are so dumb, nobody ever wants their credit to be bad it usually happens when you go through a divorce, laid off, hurt or something like that, i look at credit everyday for a living, and trust me you are not the only one with a 400 credit score, if that doesn't work for you , you may want to consider filing a chapter 7 bankrupcy, if you'd like to know more you can contact me.

Answer 4

That's tough. Do you have a credit-worthy relative that will co-sign a loan for you? If you do, get one and pay it off in record time to establish good credit. Then do it again. It will take at least of couple of years to get a 400 to above a 600.

Answer 5

Cut up all your crdt cards. Pay all your bills off one by one on your own with NO consolidation offers. Get your credit report from the various agencies, and go through it carefully. Challenge anything that looks odd. There can be errors and you can have them removed, and the score will go up. Check with the site www.freecreditreport.com - you're entitled to free reports now, but i believe you still have to pay for the FICA score. Don't be late in making payments to cards or banks. Cut back on that golf and sell your hot tub.
Good luck

Answer 6

Wow - that's tough. You need to order all three credit reports. I recommend www.myfico.com. There, you can get all three credit reports, fix anything that's incorrect PLUS it shows you how to fix you score - all the things that you can do to bring it up. Since I don't know your exact situation, this is the the first step I would take!

Answer 7

Cancel a few credit cards. Keep two of the older accounts, and keep em paid up to date (Older accounts are good).

Pay EVERY obligation "as agreed."

Keep it clean and work on it over time.

Get real.
Think about the life you wish to live.
Set your priorities.
Stay diligent, no matter what.

Answer 8

A classic dilemma. Go to www.Oprah .com and on the lower left corner of the homepage is information on the Debt diet. This will give you a comprehensive plan that you can implement to increase your credit and hopefully be credit free.

Answer 9

Get good credit by showing that you can pay what you borrow.

Answer 10

lower your overall dept pay credit card payments on time if you have a zero balance still keep the card even if you don't use it.