I am trying to raise my credit score quickly. Right now I am at 593-around 650 depending on agency. So, by paying off the 5 credit cards that I currently have(some with amounts ranging from 1,500-2,500), should that raise my credit score a great deal? If not, will a credit repair company help or are they just a scam?
2007-02-13 08:01:07 · 5 answers · asked by soonerfan0808 2 in Business & Finance ➔ Credit
ok, to raise your credit score, will not happen overnight, but here are somethings to do
1. never be late on a payment
2. have differant kinds of credit( car loan, credit card, ans a store revolving account), companies like to see at least 3 diffwerant types of accounts, it shows you have diversity, and can handle your money.
3. never have someone check your credit, unless you plan to buy something big(like a house or car) or applying for a card, the more inquaries you have on there they lower your score, most places will go back 1 year.
4, check your credit report regularly, they 3 major credit beuros, with let you check for free once a year, so what i do, is check my credit report every 4 months rotating the companys. the reason you want to check it is to make sure all your accounts are on there,, and make sure that there is nothing on there that is not supose to be.
debit consolidation is a scam, what they do, you can do on your own, just call up your credit card companies, ask them if they can lower there interest for one year, so you can catch up and get your total balance down, some will do it.
with your credit score being like that, you should be able to get another credit card, with a introductory 0% for the first year, then transfer all of your other balances to that card. after the year is up, find anonther introductory card for 0%, dont use the other cards, or you will end right back where you started.
it takes time to get good credit, you need to learn money managent it helps.
Good Luck
2007-02-13 08:13:16 · answer #1 · answered by Anonymous · 1⤊ 0⤋
No company can "repair" your credit. Some, however, can help you pay off your credit cards. From there, you may be in a better position to pay your obligations on time and raise your score.
Forget what you see on TV. Contact some of your credit card companies and tell them you're looking for a non-profit credit assistance program.
The credit card companies would prefer you pay your balance and fees (that's how they make money) but they don't want you to declare bankruptcy, because then they've lost out. So, a number of them fund non-profit organizations to help out.
What will happen is this - those companies can get your payments way down. Sometimes down to interest rates of 2% to 6%. On the other hand, you can't be using your cards after that, and I believe it will show that you went this credit repair route, but it's still better than bankruptcy.
I don't know how the ones on TV work, maybe they take advantage of the same system but just tack on a few percentage points for themselves. It doesn't matter, because you should be able to get the same service at lowest cost from your credit card company.
And don't worry about telling them you're having trouble paying - they know that already. So ask them what orgs they participate in and underwrite.
Also know that you can't raise your score "quickly". The whole point of credit scores is to report how, in general, you are credit-worthy.
Good luck!
2007-02-13 08:20:08 · answer #2 · answered by T J 6 · 1⤊ 0⤋
If you pay them off they will reflect favorably on your credit report. A credit repair company will consolidate all the cards, and negotiate a fair rate and create ONE pymt a month rather than say the "5" that you said you now make. To develop a higher credit score, you have to 'show' that you can obtain credit, and then pay it on time or early. The lenders report by month any late pymts or problems. They also report if an account was closed and by whom. The credit card company or the customer.
2007-02-13 08:17:20 · answer #3 · answered by blondwithamind 1 · 0⤊ 0⤋
Credit repair companies are in the business of making money and they will not be able to raise your FICO score. They really are for people who can't handle their finances and need help making a budget and cutting up credit cards.
2007-02-13 08:10:42 · answer #4 · answered by 2craz4u 3 · 1⤊ 0⤋
Most are scams..look at the books written by Clark Howard of go to his website...he knows more about what changes the score than anybody I know.
2007-02-13 08:12:47 · answer #5 · answered by gvh 3 · 0⤊ 0⤋