My credit stinks. What should I do?

Question

I have been paying my bills on time for 4 years now and my credit scores still stink.

Answer 1

There's more to it than just paying.

1)History. Keep your oldest accounts open! Do not apply for cards, open new ones, close old ones, etc. Keep the same ones for a long time.

2) Revolving AND installment- If its not improving fast, it may be that you've only got a few accounts. You might need a nother card or an installment loan- - credit reports should have BOTH.

3) Utilization-- you need to be under 50% of your limit. You can pogo around from 580-680 just on balance ratios!! I've seen it.

FYI--- half the people on here are woefully ignorant. Your score IS NOT BASED ON DEBT TO INCOME. There is nowhere on your report to put income. Its based only on balance vs. limit.

Only when applying for loans does debt to income come into play, and thats seperate from your credit score.

Answer 2

first of all, what kind of bills are you paying off?

How many credit cards and loans do you hold or are still open?

And what is your debt to income ratio?

In other words, it's cool to pay your minimum balance and bill on time. But the amount that you owe compared to how much you make , affects your credit. Because your debt should be below 50 percents. Housing has to be around 40 percent i believe of your monthly income. Your credit score IS FOR bankers who are trying to loan you money, the rate score show what type of a canidate you are... in other words, can you pay them back, along with the bills you have.

if you have more than one credit card, talk to a credit counsler like consumer creidt counseling service (i trust them, i believe they are asso. with the gov.) www.payoffdebt.org, or a cccs in your area. They will combine your bills, and you probably be able to pay it all off in less than a two years or better. This will improve your credit, but during the process, no more CREDITS. Discipline is key, when it comes to your finance.

Answer 3

I found that there were many false reports on my credit bureau. I contacted one of my potential lenders who advised me to use veracity credit to clean up my credit. They are in Denver, I am in Florida. I contracted them to begin to clean up back in June, It is now August and my credit score has risen 65 points. They are working on a second round of battle with the agencies now for a potential higher score. The fee was sixty or so dollars to start and then 50 or so dollars each month they work on it. I think the work they have done so far speaks for itself. I will list their number here 303-893-7801 i also think they have a website but I dont know that address.

Answer 4

Lots of things affect credit scores. Paying your bills on time is only one factor. Are you deeply in debt? Maybe you need a second job to up your income so that your debt ratio improves.
Order a copy of your credit report and review it for accuracy. Challenge anything that is incorrect and provide the documentation that they request.

Answer 5

You didn't mention if you have negatives on your reports or if you just don't have enough credit, credit history etc on them.

I would suggest going to the site I've listed. Do some reading in the newbie forum first then in the credit forum.

If you have negatives, you can learn your rights and learn how to deal with them.

If you need to build credit, you can find many threads where people talk about building/rebuilding their own credit. Who they applied with, what the results were etc.

Answer 6

Your scores won't improve much until the old bad stuff falls off your credit report, which takes 7 years. You have 3 more to go.

Answer 7

Discontinue your use of credit, pay off your balances, and then start over, this time with a better understanding of the credit system!

Answer 8

once you owe more than 35% of your total available balance on a card your scores will drop, perhaps you should get a copy of your credit report, you may be a victim of fraud and might be able to have some negative things removed, which will boost your score

Answer 9

the reason your credit is not good even you pay your bill on time is i thing ,that you use all your credit. your credit will improve if you will pay down your credit cards balances (less than 40% of card balance)

Answer 10

Some points to note when your credit rating is bad.

1. Do not move frequently.
2. Try to stick to one address at least for a period of 2 years
3. Get your name into local electoral register
4. Do not do too many balance transfers on your credit cards
5. Do not miss any bill payments, loan installments
6.Finally do not borrow too much in one financial year

Most important thing to do is to get your name in electoral register, It does work wonders. Believe me.