credit score - good versus bad, and how to fix it?

Question

my credit score is a ghastly 595 (stupid things i bought and negelected the bills for). as i get older, this just doesn't suffice, especially if i want to move out or by a new car.

what's considered a good score, and how can i build up my score aside from paying off what i owe?

Answer 1

A good credit score would be 720 or above. Fix your credit score by paying off anything owed, make sure that shows on your credit report. Contact the creditors in writing to work out a plan to pay off the loans.

Then, don't request new credit if you still have a good and valid credit card you are using. That can make your credit score go down. If you have some credit cards you don't use, cut them up and cancel the accounts.

Another way to repair credit it to pay timely on all accounts, don't pay late. This harms your credit rating.

Make a budget and stick too it.

Last but not least - don't use Credit Repair Clinics, they are a waste of money. Just keep paying down your debts and eventually your bad credit score will be a thing of the past.

Check with one of your creditors (mortage, auto loan) to see what they have on their websites. Some lenders have help available for fixing your credit score and you can track your progress. Washington Mutual Mortgage Company has such information for their credit card members. See http://www.wamucards.com for details.

Answer 2

First, make sure all the information on your credit report is accurate. Second, try to pay off all or any accounts that are currently in collections or make payment arrangements with the creditor to pay off the balance monthly. Third, any credit card that is over 50% of the available credit line should be paid down to under half of your total credit line. Your credit score is lowered when your available balance is over 50% of your total credit line. Finally, if you have bad or no credit and have no credit cards try to obtain two credit cards and make sure all of your monthly payments are made on time. This will help increase your credit score. If you cannot be approved for a unsecured credit card, obtain a secured credit card. Repairing your credit and improving your credit score is a slow process that takes time.

Answer 3

A good Credit Score is 650 or higher. To improve your score
you need to make sure you pay your payments on time and if
you are going to be late contact the creditor and let them know
a lot of times they will give you an extension on your payments
or delay a payment until the end of your loan term..Also contact
the people you owe that are reporting negative reports of your credit history with them and ask if there is a way they could help
you out that you want to make things right with them and are working on improving your credit score sometimes a little understanding of the situation and creditors are more than glad to
help you out. All they want is the money you promised to pay them when you signed a contract with them.

Answer 4

Start by reading a few pages on my site:

http://www.thetruthaboutcreditcards.com

I talk about bad credit, good credit, and why your score is high or low. There are a ton of easy things you can learn to fix things right away.

It's not as hard as you may think.

First things first, is always get a free credit report and review it. Find the problems, and figure out ways to solve them asap.

But check the link above and you'll be an expert in no time.

Answer 5

You should consider contacting your old creditors and asking them to remove negative entries once payment arrangements have been made. I once had a major retail store credit card cancel the debt and removed the entry from my credit all together. The important thing is not to be afraid and deal with your finances proactively and live by the rule that if you can't to pay cash for it do you really need it?

Answer 6

Take care of this now! Do you live in the US? If so, you should start to watch Suze Orman on MSNBC. (suzeorman.com) She is awesome! She will get you in great financial shape, especially because it sounds like your still young. Or, go to the library and get a book on how to fix your credit. You can fix it somewhat easily, you just have to commit to doing it. It is soooo important in this world today to have good credit. My grandmother always told me to take care of my credit and I didn't and I'm still paying for it. Believe me, do this. Make it a New Years Resolution.

Answer 7

620 is considered a good score and is typically the cut off point for the loan interest rate to next lower level.

There are many tricks that you can use to quickly raise your credit score.

Debt validation is effective but by far not only method in arsenal

http://www.disputedemon.com/credit-score/