Repairing Credit?

Question

Any suggestions on a company that can consolidate card debt, but do it for free?

How do I build back my credit score?

I have student loans and someone told me the best way to do this would be to pay off credit card debt and then slowly pay off my student loan becasue thats the biggest debt. Is this true?

Answer 1

In order to build up credit and establish a good credit, you must show a number of stabilizing attributes. Most notably, your report must prove to the lender that he will get his money back. Here are some suggestions:

OPEN A BANK ACCOUNT
Open a bank account and use it responsibly. This is the first step in establishing a financial history.

CO-SIGN
One way is to piggy-back onto someone who already has a good credit history established and is willing to co-sign. Once the co-signing has occurred, you simply make payments on or before the due date. In time you will have established a credit history.

SECURED CREDIT CARD
Apply for a credit card. Shop around and only apply for a card if you can meet the lender's requirements. Responsible use (spending within your budget and paying your bill on time) will help you build a good credit history.

DEPARTMENT AND GASOLINE CREDIT CARDS
Since gasoline credit cards are not revolving (cannot carry a balance forward month-to-month), often they are easier to obtain than regular credit cards. Similarly, some department stores offer revolving credit for a specific purchase and this is sometimes easier to establish. It is also a great way to establish credit.

This website can be very useful for you:
http://www.howtoestablishgoodcredit.com/Credit_Articles/index.php?page=1&category=7

Answer 2

I don't think there are any companies that will do it for free, at least I'm not aware of them. However, there are several that will do it for a very low cost.

As far as building back your credit score, stay away from credit repair sites and other 'quick' fixes. Your student loan is probably at a very low interest rate compared to credit cards, so its beneficial to pay off the cards first regardless.

The easiest way to build your credit score is to make timely and consistent payments, along with keeping a low debt balance spread out among your credit cards. Show that you can hold debt and pay it off and your score will rise. It will take time however, but it will happen.

We just launched a site recently at http://www.debtcareguide.com that may have other information you'd be interested in.

Answer 3

There's no way that I know of that will consolidate debt for free... most of those places are scams and hurt people's credit scores. I think that paying of the credit card debt first is the best thing because that's the highest interest. Student loans, as long as they're paid on time, can actually help your score. The main thing is paying on time and having a low debt-to-income or debt-to-credit ratio.

Answer 4

Credit Card Debt Consolidation Loan:

When using the credit card, people ignore the consequences of using the card too often. Frequent use of credit card causes bills to be accumulated and worsens your credit score. Besides lowering your credit score, you also face financial burden since the interest charged is very high.

Answer 5

The Credit Repair System consists of methods that provide relief to various debtors. It consists of number of steps that help you get over your debt, while reestablishing your financial situation. If you have bad credit, you may be aware of the denigrating looks given by the people, making it embarrassing for you. But the truth is everybody experiences bad times, but few are able to overcome the problems faster than the others. Many people, including rich have applied for bankruptcy. So remember you are not unique. Use the steps outlined below to get out of your financial mess.

Answer 6

You'll need to pay your student loans when they ask for payment.
In addition you'd need to be paying off your credit card debt.

The way you do that is to have 2 or 3 jobs simultaneously while eating inexpensively and not buying anything new.

Answer 7

Always start paying off the loan with the highest interest first.