I have paid off all out standing debt and now my credit score is still very poor. What do I do to improve it?

Question

It was almost all medical and a few utilities and has all been paid.

Answer 1

You have "some" good answers here. First and foremost be sure that the companies who tagged your credit (negative ratings) now show that the bills have been paid. This is a must. They have to acknowledge you have satisfied the debt. If you have any judgments against you (court) be sure that the court also shows they have been satisfied. I learned the hard way on both of these things. Don't just be satisfied because you know that you have paid them, make sure everyone else shows on your credit report that you have paid them. Don't take verbal "yes we show you have paid this account" over the phone. Don't stop until every single account shows it has been satisfied. And never, NEVER throw away the proof from the lender the account has been paid in full.

Then...start building good credit. Start with credit card or car loan and then be sure that you pay on time every month. Get a small credit card and pay off everything you charge on the next bill. It takes time. Try Capital One. They gave me a card when I was rebuilding my credit.

Answer 2

If your debts had gone to collections, there's a 99.9% chance that the collection agency did not contact any of the 3 credit bureaus to inform them the debts were paid. I had this happen to me...tried to get financing for a car, and found that debts that had been paid for YEARS were still showing up on my credit report as open cases. I was FURIOUS, until I found out that this is just how the system operates. You need to contact the credit bureaus (your bank should have the numbers, sorry I don't) with the information regarding your payments/settlements with your debtors. I was also told at the time this all happened that the best way to improve your credit is to get a credit card, use it sparingly, and pay it off in full every month. Good luck, I know how frustrating this can be!!

Answer 3

You have to re-establish your credit. As of right now, you have no good history. Try to take out a credit card (even if it has to be secured.) Use it once a month and pay it off every month. This will greatly help. You may also check to see if your landlord will report your on-time rent payments to the bureaus. Other than that, if you have a close family member who will add you as an authorized user on a credit account, this would also work.

Answer 4

Here's a trick to increase your credit score almost immediately. First look at all of your open revolving credit lines. It shouold show what your highest balance was on that line. If it is more that 50% of the credit limit, try and have the credit limit increase so that it is less than 50%. Then never ever go over the 50% level again.

Answer 5

Hey there, i'm doing the same thing right now. It will take 7 years to totally clear off your credit report. Just make sure that you have receipts saying that it was closed and settled, and if you ever want to get a house, etc. you will have those as back up. Congrats on getting everything paid off! =) I know it must be a big relief, I have one more bill I have to pay then i'm done as well...woohoo!

Answer 6

It doesn't go away just because you pay it. After all it is a credit record, which goes into the past when you didn't pay your bills on time. Best thing to do is pay all bills on time. It will improve. Don't charge up to your limit. Increase your income, so the ration of debt to income is smaller.

Answer 7

Please don't run out and establish new credit with cards or new accounts. If all your debt is paid what do you need credit for, new bills to pay and worry about? Use cash! Seriously, find a book by Dave Ramsey. I read " Guide to Financial Peace" and it helped me a lot.

Answer 8

Buy things on your credit and pay them off on time.

In the meantime, learn how to spell.

Answer 9

it could desire to deliver it up a touch, in spite of the shown fact that it nonetheless will mirror you have series money owed. attempt to get the money owed bumped off out of your credit checklist. they do no longer could desire to conform to it.