Whats the best way to go from bad credit to good credit?

Question

My credit is very poor. When I was younger I opened a some credit cards and didnt understand the importance of paying them off. Two years later I have very poor credit and owe about 4,000 dollars in total to different creditors. I really want to rebuild my credit and start getting approved for things. I just want to start over. What is the best way to do this?

Answer 1

The best way to re-establish your credit is to take one bill at a time, and pay on it until it is paid. If you have a bill for one hundred dollars, and you have that amount available, pay the whole bill off. Do each one like that until all is paid. If you fail bankruptcy, the only thing they do is you pay them a certain amount each month; you do this for about three to five years, and all of your debts are paid off even if you still owe money to a creditors. You must tell the courts and have the bills for all creditors due. Your slate is clean, but I think it is called chapter 13, I am not sure. If you are interested, go to the city clerk, and ask them to give you information about filing bankruptcy. But, the earlier info I gave you is good. They see you are trying to pay off, plus you can find some catalog program that offers credit line up to whatever, buy something for 100 or more dollars and pay on time; this will start your credit again because creditor wants to know if you have purchased and paid in the last years, I hope you understand.
Don't go for the Get you credit fixed gimmick, they are only giving you the same info I'm giving you. Keep all receipts of bills you paid and send or fax copies to Credit Br, they will add that info to your report to let the others know that you are paying your bills. I pray that you get out of debt. The Bible says to owe no man.

Answer 2

I understand, I used to have 4 credit cards. Now I am down to only 1. The first thing you need to do is cancel them so you don't rack up any more debt. Then work on paying them off. Always pay a little more then the minimum othewise you won't make a dent due to finance charges. Try switching the balances on the higher interest ones to lower interest ones. Whatever you do DON"T file for bankruptcy. It will really things worse. You are not alone, the average
person has about $7,000-$10,000 in debt. If you don't want to cancel them, at least lower your credit limit to raise your credit score.

Answer 3

First, remember that you did not get into this kind of debt quickly and you will not get out of it quickly either. The simpliset way to solve your problem is to cut up your credit cards and adopt the philosphy of "If I cannot pay for it, I cannot have it" Start with your smallest debt and make the largest possible payment on it (while still making minimum payments on the others) until the debt is gone. ALWAYS MAKE YOUR PAYMENTS ON TIME. Then, roll that payment over onto your next smallest debt in addition to the minimum payment you were already making on hat debt. This process continues until your debts have been cleared. I did this and went from a poor credit rating to an excellent credit rating. Good luck to you.

Answer 4

I understand where you are coming from. I am bankrupt and also trying to rebuild my credit. The best way to do it is to apply for small loans. For example loan companies that will lend you 50 dollars to 500. Also apply for a pre approved credit card. Make payments on time. I know the a.p.r rate will be high but they are the only ones that will give you credit.

Answer 5

call the credit help line. if it's still on your credit you can set up some kind of payment plane, some times they will let you pay a little each month. then go out and buy something small. just to see if they will give you credit for that! please pay it off in full, then others will trust you and may give you credit, keep going with the little things work tour way up to something big. but always remember to pay it off and pay on time. good luck to you.

Answer 6

Man I wish that's all I owed. But I can certainly testify it is possible. Pay more than the minimum when possible and try not to be late. That's a real killer. The more your late the higher your interest rate goes.

Answer 7

Get the secure credit card , then use it about 20% every month.If you are good,it will help you rebuild your credit.

Answer 8

pay off your credit card debt as soon as possible. and try to consolidate. carrying balances on too many accounts will reduce your score. scrimp and pinch to get those credit card debts paid. debt to income ration (what you owe vs. what you make) is one of the biggest affectors of your credit score.

Answer 9

Start making payments on time and keep at it. Its a long process but it can be done.

Answer 10

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