how to make your credit very good?

Question

what are things i need to do to make my credit good beside paying off my student loans and credit cards and paying off the bad debts on my credit report. I know to pay things on time but all the bad things i have against me is for trusting friends and now i know better. but i need something to give my credit a boost to get in the green. I know one thing i need to do is stop applying for stuff like credit cards (walmart,sear etc.) but give me some ideas of ways to make my credit turn good i know it may take a while but i am willing to wait. And for you people that have had fair ok credit have did you make your credit turn good

Answer 1

Here is the answer:

1) Limit the number of revolving accounts (ie. credit cards, department stores cards, etc...) to a select few (2-5) and be sure to pay these bills on time.

2) Close all unused credit cards. You need to phone the company to have these canceled, otherwise even if you "cut them up", the credit availability will negatively impact your score. Only keep open accounts which you actively use and need.

3) Do not continuously apply for new credit. Each time a company pulls a credit report on you (called an "inquiry"), your score goes down.

4) Pay all installment loans in a timely manner. Do not ever let your accounts get over 30-days past due.

Student loans themselves will not make your score horrible. I had student loans, and yet I have always maintained a score over 800. Limit other credit availability, close unused accounts, and pay your loans on-time, and your score will improve.

Answer 2

If your bad debts are significantly in the past, you can contact the companies you owed and ask them to remove the bad report from the credit reporting agencies. If they are over 7 years old, the should be removed automatically.
If you are able to get approved for a small personal loan, borrow an amount of cash that would enable you to pay off all of your store credit cards (sears, wal-mart). Once they're paid off -destroy them-interest is too high on store cards.
Your personal loan is not revolving credit, so there will be a definite end to that payment. Once this is paid off, along with all the store cards. This should enable you to open 1 or two bank credit cards with decent interest rates. It will a few years to get your score up significantly.
I've raised my score over 100 points in the last 2 1/2 years.

Answer 3

Have two credit cards. Buy simple things every once in a while using the card (ie: groceries). Keep track and consistently pay that small bill on time. Your credit will slowly get better, but it takes time. You made the mistakes and you realize that. Also - minimize the amount of sears/target etc. type cards.

Another thing - A Secured Credit Card is a decent option for those with bad credit.

Answer 4

Basically just doing what you are doing. Paying off your old bad debt, making payments on time. Try to get a few lines of credit like a loan at a bank, keep the money aside and then pay it back in full in a few months. That builds credit also...by having good standing accounts that are paid off. You are also right to stop applying for credit cards and such. Each time someone does an inquiry on your credit, it brings your score down. That only affects if for a few months though.

Answer 5

Okay, first thing's first: stop the credit inquiries. They can drive you down fast.
Second: get the derogatories taken care of. Collections, judgements, errors in judgement, etc.
Third: look at your credit depth. Is it all in credit cards, and do you carry balances on those cards?
Fourth: after all the loose ends are tied up, look at buying a car. The installment loan will reduce your revolving to total credit ratio.
Fifth: live within your means, and make your payments on time.

Answer 6

For great tips on where to begin and answers to all of your credit/debt questions check out the sites I have listed below in "sources." These websites are great and very helpful for those like you and I trying to get out of debt. Stay motivated and disciplined...do some "plastic surgery" now...cut up those credit cards! Also, pick up Suze Orman's book, "Young, Fabulous, and Broke." If you continue with your current efforts and remain disciplined, you'll be out of debt before you know it. Yes, it will take a while, but just "keep on keepin' on." Good luck!

Answer 7

Guard your credit very closely. Don't allow anyone to talk you into using it unwisely.

If you already have poor credit because of past mistakes, begin now to make wise choices. If you owe a payment, NEVER pay it late. Pay it a week early to make sure you won't have a problem. I know you want the problem to be over with now, but that is not how it works. You have to prove that your habits have changed, and that takes time.

Good luck to you!

Answer 8

If you have an old credit card, keep it but don't use it. Having an old credit card with a $0 balance on it boosts your credit score.

Answer 9

First get a print out of your CREDIT REPORT from the three agencies: Experian, Equifax, and TransUnion. You are allowed one free report per year of your CREDIT REPORT but usually have to pay for your CREDIT SCORE, although one gave me my score without paying for it. You can go through each individual company:
Equifax - www.equifax.com
Experian - www.experian.com
TransUnion - www.transunion.com

or go to this one, it's legit (I wouldn't do it with anyone else not mentioned here), and get all three, follow the directions:
https://www.annualcreditreport.com/cra/index.jsp

Your Credit Score is originated from these people: http://www.myfico.com/
but all three agencies have they're own little twist on it.

You don't know what you have to do (except for the obvious like paying bills) until you know what information they're working off of. When you get your reports, scrutinize them for errors and provide info. if they're missing any, then follow the directions on how to fix them immediately. This is one way to find out if someones stolen your identity as well and went haywire with your credit. They will then send you a corrected report that will change your rating and score. It should also tell you how you can improve your credit by applying your history, at least one said so for me.

These sites will tell you how you can improve your credit as well. For the immediate:
~Don't pay anything late
~Call your creditors and ask them if you pay this off giving the estimate of how much and how long it will take, ask them if they'll be willing to take it off of your credit report. If they say they won't, let them know that you will have to focus on other creditors that are willing to work with you that will take the debt off of your credit report first. They want their money and if they know they're not a priority, they might negotiate that with you such as offering to take it off if you pay so much by a particular date, or even lowering the dollar figures you actually owe if you commit to paying by that date. Don't be arrogant, let them know you'll pay but you have to make the best decision for you and you'll do your best. Whatever agreement you make, stick with it.
~Try to pay the debt thats costing you the most first, calculating total monthly cost of higher APR's, over limit fees, annual fees (don't get a card w/ an annual fee), etc. etc.
~Look into finding credit cards that can transfer over the owed balance if they offer lower fees, but make sure you are aware of the "introductory offer" ending date, and make sure there is no fee for transferring over the debt. You can consolidate all that you owe to a lower fee credit card, or just transfer some of it over, all depending on what you can afford to pay by the time the introductory offer ends and the APR jumps up.
~Most importantly, don't piss any of them off!! They can speed it up or slow it down.

Answer 10

Pay things ontime---don't spend more than you have--get a credit card and don't use more than 70% of the limit