2006-11-01 10:05:39 · 7 answers · asked by EgDelamora 1 in Business & Finance ➔ Credit
It's pretty low. If I were you I would stop borrowing and find a way to pay off more of my debt.
2006-11-01 10:12:42 · answer #1 · answered by Brian L 7 · 0⤊ 0⤋
It's pretty bad. You can bring it up very easily though. Use these 5 common sense steps:
1) Begin Paying Your Bills Early...Worst-Case, On Time
Stop paying bills late. Draw a line in the sand and say..."No more! All bills from this point on will be paid early...worst-case, on time." It’s amazing how much you will save in late fees and overdrafts...not to mention the satisfaction of being responsible. Initially it isn't easy. But the short-term sacrifices are worth long-term financial stability.
This is easier today than it was for us many years ago. Today you can take advantage of online bill-pay or automatic bill-pay.
2) Avoid Finance Companies
It's easy to get loans or credit after bankruptcy from a finance company. And some (misinformed) people will actually tell you this is good. Credit from a finance company is not good. Not only is it very expensive, having finance companies appear on your credit reports lowers your FICO credit scores (which makes everything else more expensive).
3) Just Say, "No," to Co-Signers
Bankrupt people often think, "The only way I can get new credit is to have a co-signer on a loan." Whether that's from a parent, brother, sister, relative, friend...whatever...you don't need that kind of help reestablishing credit.
Bottom line: you don't want to have co-signers for several reasons.
First, it's not a wise thing to do. It even says not to co-sign in the Bible. You put the co-signer's credit on the line if something goes wrong. If you don't make the payment, guess who they come after? Yup—the co-signer. Can you say, "Friendship over," or, "Relationship strained?"
In addition, having co-signers appear on your credit reports weakens your position with future lenders. When a new lender sees you've had a co-signer, they'll consider you a greater risk and they may ask for a co-signer for their loan as well. In other words, once you get a co-signer for one loan, you start a vicious cycle that is hard to break.
4) The Word "No" Means Nothing
You must understand...most of the lenders you come into contact with after bankruptcy have no interest in helping you recover. You're going to hear the word "no" a lot.
You've got to get in your head that the word "no" means absolutely nothing. So if a car dealer tells you, "There's no way you'll be able to get financed for a car loan after bankruptcy, you shouldn't believe him. If a mortgage broker laughs at your goal of owning your first home instead of renting...laugh right back at her.
5) Discover the Power of Asking Open-Ended Questions
When a lender tells you, "No,"...don't stop there! You'd be missing out on the best part of the experience. You need to ask some very important questions, like...
"What would you do if you were me?"
"Since you can't help me, where would you go if you needed to get financed?"
Asking open-ended questions like these helps you find the people you should've been talking to in the first place
2006-11-01 19:35:21 · answer #2 · answered by Brian H 2 · 1⤊ 0⤋
It's not good. If you have never checked your credit report, please do so by going to www.annualcreditreport.com. I recommend you do not apply for any more credit for at least 6 months to one year. Here are some other suggestions as well:
1) Pay off any charge offs, judgements and collections you may have on your credit history.
2) If you are using more than 50% on your credit cards, pay them down.
3) Do not close credit cards you have had for more than 2 years. However, close cards you have opened that are less than a year old.
It will take time to rebuild your credit, but it can be done.
2006-11-01 19:05:04 · answer #3 · answered by lady01love 4 · 1⤊ 0⤋
Not the greatest of scores but there are worse...just dont try getting financed for anything more than a ford....
2006-11-01 18:13:48 · answer #4 · answered by redbabytruck 1 · 1⤊ 0⤋
Ever hear the term "It's not the end of the world...but you can see it from there.."?
That's there you are at. Not a good score, but it could be worse.
2006-11-01 18:22:41 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Its not as low as you can get, but it represents late payments and or collections. You need about a 620 to qualify for a typical conforming mortgage.
2006-11-01 18:21:23 · answer #6 · answered by Process Guy 2 · 0⤊ 0⤋
YES
2006-11-01 18:08:53 · answer #7 · answered by Bella Donna 5 · 0⤊ 0⤋