what is the best way to improve your credit from worst to good? what steps to follow?

Answer 1

Pay all your debts.
Have a buying plan, meaning spend only a specific amount of money.
Invest and save.

Answer 2

If you have any high interest credit cards, find out which one has the highest interest and start paying that one down. It is best to pay whatever you can over the minimum payment. When that card is paid off, definitely cut it up. Also, when that is paid, go to the next highest credit card and do the same. But, if you can, the payment you had on the first credit card could go towards the 2nd credit card you are now paying and also their minimum payment. In no time at all you will see the results and it will feel so good. I have done it and it works. Good luck.

Answer 3

1) Get your credit cards under the limit ASAP. You're paying ridiculous overlimit fees and default APR's. If you ARE overlimit, call your CC's and tell them EXACTLY how much you can pay each month, and they might be willing to reverse fees and cut your rate to help you out.

2) Pay off old colllections or judgements, and once they show as paid on your credit report, contest them. OR better yet, negotiate with the collections agency that you will pay them in full if they agree to delete it from your credit report and get it in writing. Even if they are legitimate debts, you can often get them off your report by disputing it-- becuase if the company has been paid, they dont always care if its deleted or not. Within 30 days you can REALLY up your score.

3) Get yoru CC's under 40% or so of their limit-- Utilization makes up 35% of your score.

4) Have a balance of credit cards and installment accounts- like a car, a house, and 2 or 3 cc's.

5) PAY EVERYTHING ON TIME. ALWAYS. NO MATTER WHAT. You can't undo bad payment history. You can pay something up to 29 days after the due date, but 30 days and it goes on your credit report.

6) HISTORY. Dont constnatly open and close accounts-- keep some current, long standing accounts going. If you do need to close something, try and make it your newest account.

7)Inquiries-- dont go crazy with inquiries on your credit-- they can each take a point or two away from you.

Answer 4

Do not max out credit cards. Credit cards should only be used for emergencies or very large purchase items. Make sure you pay your balance on a regular basis. Do not be late with your payments. Consider the amount of your purchase and make a budget out of your regular paychecks for this payment expense. Also, contine to make payments on any overdue bills. If you cannot pay off entire balance make a regular payment schedule with the company. Most companies are willing to work with you on this. As long as you are making an effort you will be out of debt in o time and on your way up and out of debt!!

Answer 5

First , you need your credit report to see what you owe and to whom you owe. Your Fico goes down when you have over 50% of your credit used, late payments, collections.etc...Start with collections. Call them and see if they will settle. You just have to start paying people back. If it is over your head, you may want to try a reputable credit couseling agency. Your score will go down for this, but will eventually work its way back up when you are done paying.

Answer 6

Sign up for a credit card, and make small purchases, and pay the balance off in full every month. Keep your bills up to date - don't be late. Do this for about five years, and you'll have impecable credit!

Answer 7

I used www.lexingtonlawfirm. for the past year and I went from a 500 ave. score to 645! I bought a jeep, negotiated my credit card Apr's to a lower rate, it was the best thing I did.

Answer 8

...............I WORK WITH PEOPLE IN A MORTGAGE BROKER AND ALSO WORK WITH THEM TO REBUILD THEIR CREDIT TO QUALIFY FOR LOAN.............

1st) If you credit scores are below 600 FICO or have even filed for Bankrupcy...you need to be able to get a sub-prime credit card...like Orchard Credit Cards. many times you will get them

2nd) Get your credit card but don't use it like a credit card----IT'S A GAME NOT TIME TO SHOP...you must charge it and then pay it off at the end of the month....the credit bureaus love this

3rd) have this credit card for a year....then apply for another sub-prime credit card...maybe this time with capital one...they must likely will give you one....again use this one for another 6-7 months...then apply for another credit card...this time apply for a Chase credit card

ORCHARD CREDIT CARD.....CAPITAL ONE.......CHASE

4) It will take you 3 years to get your FICOs back to the high 600s and low 700s assuming you are bankrupted

I'VE SEEN THIS HAPPEN

take care

Answer 9

pay all your bill on time ..not a day later
when paying all your bills on time for a year ..your credit will get good

and if your start to pay off your depth in payments and paying them on time ..
your credit will be excellent

Answer 10

start paying off all your depts little by little. call them to arrange a payment plan. lots of them take a discount off if u ask for it...depends on who u call. also, dispute any charges that may not be yours. stop using credit cards until u pay them off....cut them if u are a constant shopper