whats the best way to improve your credit?

Question

im 100,000 in debt

Answer 1

the best way to improve your credit is to start paying it off.. make sure you have a stable job. once you have that accomplished i would recommend taking a loan from the bank if possible to slowly pay off a bit of the debt, if you own a personal company, file bankruptcy...that that would be my last choice. if you dont get it taken care of soon, it will only continue to grow at a faster and faster pace. best of luck. Arek

PS. dont use credit cards to pay off other cards...

Answer 2

Bankruptcy should be your absolute last resort, if EVER. To me (just my opinion) bankruptcy is a sign that someone lacks personal responsibility. Even if it's not you, SOMEONE will have to pay for your bankruptcy, your creditors, who end up raising the rates for the paying customers to compensate for that loss, etc. Beware also debt consolidation. It's a fancy word that means only a different sort of bankruptcy, and it WILL hurt your credit. (I think it's called a Chapter 13 instead of 11, but the damage will be done). I was never in that much debt, but when I was younger, I took out lower interest loans and paid off the higher interest ones. Then I slowly but steadily paid on the new loan, and paid more than what was owed each month to get it gone. I went from bad credit to excellent credit this way. Keep only ONE credit card with the lowest possible rate. Transfer any credit card balances to that one card with the low rate. Cut up all others. Pay the credit card off slowly but surely, but keep a small balance on it toward the end. Creditors want to see a good income to debt ratio (ie, if you have a $10k limit and only owe $1k or less), and just use it for very small purchases (once you are down to just the one, creditors want to see a little activity on the card to show you are a responsible spender).

Answer 3

There are a lot of people who are $100k in debt who have excellent credit scores so I'm assuming this is consumer debt (non mortgage/collateral debt) and that you are either unable to service your current debt load from your current income or you are choosing not to. If you are at the point where you are finding it difficult to pay your bills from all your sources of income you need to seek out a financial advisor who specializes in individuals in your situation immediately. Don't fall for the scamers who tell you they can fix your credit score over night because if your negative credit is legitimate they can't do anything and you'll waste your money. In addition, they aren't solving the root of the problem which is your inability to control your spending in relation to your income. If you are serious about getting out of debt and improving your credit score you have a pretty good chance as long as you realize that it's a long term commitment and you must be willing to change your financial habits. You must be 100% commited to either drastically lowering you standard of living or finding a way to substantially increase your income or most likely both. Good luck and ask some highly regarded bankers, attorneys, accountants etc. in your area for a referral to a financial advisor that specializes in individuals who are unable to handle their credit.

Answer 4

You need to stop worrying about your credit and start paying attention to your budget and expenses. Go to http://www.oprah.com/ and look up her Debt Diet section under the Money tab. Clearly you are living beyond your means and there is no way you can take on any more debt, the sole purpose of needing a good credit score.

Answer 5

declare bankruptcy. After seven years it will be off your credit. Or you could go for debt consolidation. there are companies that will help you with this and will make paying off the debt a little easier.

Answer 6

$100K in debt is nothing if that also includes a mortgage. if that is just from credit cards (revolving credit accounts) you are in trouble.

need more info if you want a good answer to your problem. the term "debt" is just to ambiguous...

Answer 7

There are services that will do this for you but they are costly and much of it can be done yourself.

Here is some additional info. Hope this helps.

Answer 8

Pay your bills timely. It will also save you money as you'll avoid all those pesky late charges.

Answer 9

first consolidate your bills on one loan, then pay it off over time. and stop spending on the unnecesary. also, do not just pay your minimum balance. send as much as you can

Answer 10

Cut up your credit cards, and don't ever get another one.