credit score ?

Question

I have bad credit, but got a refinance, and have paid off most of my credit cards, but have one that I still owe on. Because of a nasty divorice there were payments that were late. How long does it take to increase my credit so I can get credit again? I got the refinance because my boss has a friend at the bank. I have been on time for almost a year, have paid off two credit cards, paying off the third and make higher than the minimum payment. I also pay more on the mortgage payment than the minimum.

Answer 1

I do credit counseling and it sounds like you are doing things exactly right! Your score would have gone up significantly with paying off the two cards. If you didn't cancel them, that would also help your score depending on how much credit you have available. Most of your credit score is made up of what you have done in the past (35%) but at least 30% is made up of what you are doing now. Keep doing what you are doing and you will probably see significant number increases before next summer. Good luck!

Answer 2

Ok, I want to caution you NOT to close any credit card accounts if your goal is to boost your score. Feel free to pay the balances down to zero, but, once again, canceling credit cards is NOT the way to boost your credit score.

Why is this? Having available credit (meaning your credit card balances are low compared to your credit limit) is a GOOD thing. It shows that you qualify for credit AND manage it well. For this very reason, you should make sure that your card credit limits are on your credit report and reported accurately. Otherwise, a low balance can appear as if you maxed out an account.

The second reason: cancelling credit card accounts erases credit history. As was mentioned by another person, your credit history is important in determining your score. Keeping accounts open establishes credit history (just make sure you keep the balances below 30% and pay on time). In fact, there is even a trick that takes advantage of this: have a family member add you as a co-signer to a credit card account with a long and clean history. Your score will go up.

BTW: Paying more than required on your mortgage will not affect your credit score. Paying down high credit card balances can.

General credit buidling tips:

DO NOT:

1. Do not open unnecessary credit card accounts.
2. Do not close existing credit card accounts.
3. Do not let individual credit card balances exceed 30% of the credit limit. Two credit cards each at 25% of the credit limit is much better than one credit card at 50% of the credit limit.
4. Do not allow unnecessary credit inquiries – meaning, you should not have people pulling your credit unless there is a very good reason.

DO:

1. Do make timely payments on all mortgages, auto loans, and credit cards.
2. Do request higher credit limits on your existing credit cards.
3. Do make sure that each of your credit card accounts report the credit limit to the credit bureaus.

Hope this was helpful.

Answer 3

HAVE YOU CANCELLED THOSE TWO CREDIT CARDS?
GET RID OF THOSE TWO CARDS AND AFTER 60 DAYS (ENOUGH TIME FOR FOR CREDIT TO HAVE BEEN UPDATED) GET CREDIT REPORT. CONTEST ANY NEGATIVE CREDIT ON THE REPORT PERTAINING TO ANY CREDIT PAID OFF --LATE PMT--OVERDUES-ECT.MOST COMPANIES THAT HAVE BEEN PAID WILL NOT RESPOND TO CREDIT BUREAU AND THE BEREAU WILL WIPE THAT RECORD CLEAN. REMEMBER THERE WRE THREE BEREAU BUT START WITH THE BEREAU FOR YOUR AREA FIRST. YOU CAN GET A FREE CREDIT REPORT EACH YEAR.
EQUIFAX / ESPERIAN

TAKE THAT EXTRA ON MORTAGE PMT AND PAY OFF THAT CREDIT CARD.

NEVER PAY EXTRA ON LOWER INTEREST RATE WHEN YOU HAVE A HIGHER INT RATE ON ANOTHER PMT.
ALWAYS PAY OFF HIGHEST INT RATE FAST AS POSSIBLE.

PAY OFF CREDIT CARD AND CLOSE THAT ACCOUNT.

DEAL WITH VEHICLE AND MORTGAGE FOR CREDIT RATING.
PUT AT LEAST 1000 IN A SAVING ACCOUNT. AND KEEP THAT AMOUNT OR MORE AS AVERAGE BALANCE. ADDING AT LEAST 50 OR MORE DOLLARS A MONTH AND DON'T TAKE OUT.

EQUITY IN HOME IS THE BEST LOAN BET YOU GOT.
THAT VALUE ONLY GOES UP MONTHLY.

DUMP THOSE CREDIT CARDS OFF YOUR CREDIT REPORT..
FINANCE COMPANY IF A CREDIT UNION-BANK-COMMERCIAL CREDIT CO-OP CAN ARRANGE HOME EUITY LOANS THAT YOU CAN USE WHEN EVER YOU NEED WITH OUT LOAN APPLICATION.

WE HAVE $50,000 THRU OUR CREDIT UNION.
WE DON'T NEED CREDIT CREDIT ECT BECAUSE WE HAVE CREDIT UNION ISSUED VISA CARD CREDIT AND DEBIT AGAINST THAT 50,000 PLUS CHECKS IF WE WANT TO USE THAT EQUITY.

PERHAPS YOU FINANCE CO CAN ALSO ARRANGE THAT EQUITY LOAN. ONE LOAN COVER ALL.
A LOAN THAT IS ZERO BALANCE UNTIL YOU NEED IT..

GOOD LUCK....

JUST CLOSE THOSE OTHER CARDS AND CONTEST TO CREDIT BUREAUS AND GET EM OFF YOUR RECORD.

CREDIT STATUS RISES FAST WHEN THAT NEGATIVE MESS COMES OFF..

660 OR HIGHER IS WHAT YOU ARE SHOOTING FOR.
660 TO START
THEN 700
THEN 730 IS GREAT............

WE HAVE NOT NEEDED IT BUT ONE CARD TAKES CARE OF ALL THAT OTHER PLASTIC.