what is the best way to make your credit go up?

Question

i have bad credit from my marriage and i've paid some big stuff up but i need a new car because mine is about to go out (its 17 years old) and so i need my credit to go up so i can get a newer car

i do not have any credit cards. all i have is my appartment i am paying on right now but the damage from my mariage was the strw that broke the camels back. and now i just need to start again

Answer 1

Paying on time is the single most important thing... other than that, your debt-to-credit ratio is really important, too. Don't max out you cards, try to keep them under 30% and don't apply for further lines of credit if you can avoid it.

Answer 2

The real answer is that there is no magic bullet in your situation. First of all, I am assuming that you have checked your credit reports. This is very important. There are an unbelievable amount of errors on these reports (get all three). Any and all credit cards you now have should be closed. Maybe you need one or two AT THE MOST! Cards & accounts closed by you improve your report faster than if the account was closed by the creditor. Avoid any advertisements that tell you they can wipe off negative items on your credit report legally. They can not!!! Patience, and due dilligence are the buzz-words here. Can you get a co-signer for the loan? Frankly, I believe mixing your finances with friends or family is a recipe for disaster, but that is up to you. I have no idea what your savings situation is, but if you can swing buying a newer car outright without a loan, you can save big on your insurance premiums. Comprhensive & collision are only mandatory on cars purchased with loans. In the end, shop around for rates on your new insurance (you could even start now.) The premium differences can be gigantic, and you will find that they will go down with a newer car because they have more safety features. A 17 year old car does not have the safety features of, let's say, a 4 or 5 year old car. My last bit of wisdom is do your research on the going price of cars in you area so you can realistically look only at cars you can afford. The asking price should NEVER be paid, and never buy a car the first time you look at it. That's a head game, but it is effective...besides when it comes to used cars it is most definitely a buyers market. Happy Hunting!

Answer 3

I had this problem after my divorce. It will not be a quick fix but will take you some time. I cut back on any spending, eating out, I opened a savings account at a bank nowhere near my job or home, and set myself up a budget based on my 40 hour work week. Anything made over 40 hours and all raises i received went to the savings account so i never missed the money and my budget was still the same. Do't buy a new car check the car lots for a lease car that is being sold as a preowned vehicle. You will get a good car with the bugs worked out and a lease agreement car must maintain its maintenence but not go over the preset milage.

Answer 4

Get a secured credit card and don't use more than 50% of the credit limit.Use Orchard bank or Bank of America.

Secondly, get one of those merchant cards that promise you $7500 or $5000 credit limit but you can only buy from their online store. They have a fee. You will buy something small for about $25-50 and the credit item will be reported to all 3 credit bureaus. Pay back as agreed.

Those 2 things will improve your credit. Within six months you should be getting credit offers and you should be in a position to buy a car.

When it's time to buy the car be careful as you still will not have perfect credit. Read everything carefully. If possible get prepaid legal for just one month and have their lawyer go over the deal before you sign it. It costs about $25 a month and will save you a ton of money and headaches. You don't need to use them for more than one month.

Answer 5

You know car dealers & individual sellers take cash, right? You do not need credit to buy a car. Credit has obviously already caused you significant problems in life. If you go get a rip-off interest rate on a "2nd chance" car loan, do you really think you will enjoy it? You will have tons of negative equity the minute you drive off the lot. Please consider just working extra & cutting back on your expenses to save up to repair your car or buy a newer (not brand new) one. That is what we do. When we were really, really broke (after a biz failure), dh was driving a 1975 Olds Cutlass for 3 yrs & I a 1980 Olds Delta 88. Now we have 1990s model Camrys. These have all been purchased with <$2k each in cash from individuals who were just ready to get rid of them & they have all been great cars. Everyone, including my sis on welfare makes fun of our cars, but we just don't care b/c we are no longer broke & our house will be paid for in less than 2yrs. The point is...if you commit to living debt-free, you suddenly just don't care about your credit score. (We check our reports just to make sure no one has stolen our IDs.) Living w/o debt has brought so much peace into our lives. I sincerely hope you will try it.

Answer 6

Start bringing in more income into your house.. Please do a kind request to your wife to get a good job,, so that the banks love to extend their customers' credit limits if they have the intention to repay the debt.. adn confirm your monthly income is highly thant the previous for a considerable period of time.. Banks will chase you and give you more and more credit cards.. Be carefull,,,, so get well geared to have good jobs.. let more and more money come to your savings accounts maintained at the bank.. Convince the bank that you are willing to re pay.. and dqualified to get more and more credit.. This is a little time consuming ... But this is the shortest method of creating more credit...

Answer 7

Carpi diem... Sieze the moment... Start rebuilding good credit today! It can be done as I am doing it... Start by making sure your up to date on all of your debts and maybe try to pay some off... Try to save up for a new or new to you vehicle... who knows you maybe save enough to pay for it in cash... Try getting a secured credit card and make a vow to yourself that from this moment on...you will rebuild and re-establish your credit...If it poor make it fair, when its fair make it good, when its good make it excellent...its all about baby steps!

Answer 8

Pay on time, keep credit cards open even if they don't have a balance on them. Request larger credit lines..they look at your credit line ratio to how much you use..if you are over a certain percent it's bad, but if you have alot open that you COULD use and aren't, it looks good.