2006-12-05 14:54:50 · 11 answers · asked by mountainbikemm 1 in Business & Finance ➔ Credit
The only thing that really "repairs" bad credit is time.
Most lenders look for a couple of factors when lending.
How is the person using their credit? Do you have negative trade lines? Do you owe money? Do you have to many revolving credit lines? Have they paid on time? How long have they had credit?
If you do have negative items, find out what they are. Pay them and get them updated as paid. Keep copies that they have been paid.
Try to stay aware from credit cards. Try for saving secured installment loans or auto loans. It shows that you can be trusted to pay over time.
And just keep paying on time untill you can show the lender "Yeah you've had a rough patch but since........."
2006-12-05 15:07:16 · answer #1 · answered by crazy_in_lov 2 · 0⤊ 0⤋
You're in luck, becuase I am an expert.
First.. order a FREE copy of your credit report from all 3 major credit bureus. Equifax, Experian, and Transunion. You can request one free annually in some states.
Second.. Make sure everything on your report is correct. Sometimes companies report you twice in error, which costs you some negative points.
Third.. Write all 3 credit agencies a letter disputing the errors on your report. The credit agencies have 30 days to research and resolve your dispute. If they cannot get in touch with the original creditor (maybe because the company is no longer in business, or doesn't have the original info) they have to delete that negative mark on your report. Which wins you many points.
Fourth.. For the remaining negative accounts, call the original creditor (not the collection agency) to see if you can pay what is owed in exchange for the company to remove the negative from your file. Some credit card companies will reopen your account if you pay the balnce in full plus all fees, and it will show open instead of "collections" on your report. This increases your score.
Fifth.. For the negatives that are about to reach the 7 year mark, do nothing, they will drop off soon.
Sixth.. Get a credit watch service. Equifax has a credi score simulator, which will tell you what will increase your score. For example, they will tell you pay 10% more thn the min payment on this loan, and your score will go up xx amount of points.
Finally.. Never be late again on your payments. Credit is very complicated to repair, and once your score is gold, a minor default late payment will lower your score drastically.
My score is 815. Equifax says I have better credit than 90% of the country.
Good luck!
2006-12-05 16:12:15 · answer #2 · answered by la chica sexy 2 · 1⤊ 0⤋
First of all it takes time, I repaired my credit from 500 to 760 in 3 years. Paid off my all credit cards. Made payments of car loan , mortgages on time. Even payed principle if i could. Then try to get credit cards from retail stores buy something and pay it all in couple times.Or don't use it at all let them increase you credit limit. That really boost your credit up. Never spend more that 60% of your credit card limit.
2006-12-05 15:07:24 · answer #3 · answered by Zorka 1 · 0⤊ 0⤋
Pay off your bad debts, and get a secured credit card from your local bank or Orchard Bank online. Use the card but do not charge more than half of your limit. Make the minimum payments until its paid off and then charge up some more stuff.
Essentially you have to artificially create a track record of responsible credit usage.
2006-12-05 14:59:17 · answer #4 · answered by Joe K 6 · 0⤊ 0⤋
Just to contradict to Joe's answer a little, it's NOT a good idea to make minimum payments. It's designed so it'll take you years to pay off a few hundred dollars because of the high interest rates of a credit card. Say the minimum is $20. If you can, make the payment $120 a month or $50-60 from your bi-weekly pay (I'm assuming you get paid bi-weekly). This way, you can pay it off in a matter of months.
2006-12-05 15:05:09 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Get a credit report from all three credit bureaus, because they often have different information. Once that is done call the credit bureaus and dispute any negative information. Pay off all due balances.
2006-12-05 15:24:12 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Get a credit report and start payen on the old bills. And if you get any thing on credit make sure you pay. We are going threw it now and it is hard. But get a credit report see who all you owe and start payen
2006-12-05 14:59:09 · answer #7 · answered by Anonymous · 0⤊ 0⤋
some infor for you:
Step-by-Step Credit Repair Guide
http://www.debt-loan-refinance-mortgage-credit.com/category/Step-by-Step-Credit-Repair-Guide.html
2006-12-06 00:02:16 · answer #8 · answered by marie a 2 · 1⤊ 0⤋
By cutting up your credit cards and never borrowing money again. It's called delayed pleasure and living within your means.
2006-12-05 15:02:25 · answer #9 · answered by normobrian 6 · 0⤊ 0⤋
DO NOT pay another company to do this for you. They will rip you off for money you can't afford to pay.
Write to all your creditors. Tell them you'll pay off a couple dollars per month. Set up your bank account to pay them automatically.
Don't buy anything unless you have the cash to pay for it.
If you can't do this yourself, then contact a charity that will help you do it for free.
2006-12-05 15:05:24 · answer #10 · answered by hawkthree 6 · 0⤊ 0⤋