I owe lots of money toward bills(such as utilities) and credit cards. I just got a nice chunk of change from my tax return. How do I get my credit rating up without going broke? Or is it wiser to just pay off my bills all at once?
2007-03-03 06:02:05 · 11 answers · asked by John H 2 in Business & Finance ➔ Credit
First, pay all your overdue bills and make them current.
Then, whatever money is left over, put towards your highest interest debt.
In your case, two factors make a big difference in your credit score.
Paying bills on time is the most important factor in your credit score.
Next comes your overall credit debt ratio to total credit available. Paying down debt will reduce that ratio. That too will quickly improve your score.
Anna Banana gave you really terrible advice. First Freecreditreport.com is no such thing. You'll have to sign up for some credit monitoring crap. www.annualcreditreport.com is the only true source to check your credit reports for free, once per year.
Secondly, disputing all items on your credit reports is called FRAUD if they are legitimate items. You want to be a criminal? From your question, it sounds like you want to get on the straight and narrow, so don't listen to her.
2007-03-03 06:10:09 · answer #1 · answered by Uncle Pennybags 7 · 1⤊ 0⤋
put all of your tax return into a savings account.pay off 1 bill then replenish the account.when balance is back to original number pick another bill and do the same thing until all bills are paid (extremely hard to do but will get you from a 450 score to an 859 if you stick to it) no new cards or debt. you didn't have the tax money all year so you don't really have it now!!!!
2007-03-03 06:11:53 · answer #2 · answered by r p 1 · 0⤊ 0⤋
Step-by-Step Credit Repair Guide: Bad credit can frustrate your efforts at getting a credit. Hence ensure you keep your credit report clean. If there are any errors in the report, undertake credit repair to clear out any errors. This can be tiring and frustrating, but highly rewarding. Though law recognizes and protects your rights, it is your duty to remove any anomalies in
2007-03-03 17:28:02 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Pay off your bills first. Start putting something in your savings every week after that for emergencies. Then take out a small loan or finance something and pay it off early. Get youself a budget and stick to it....
2007-03-03 06:08:57 · answer #4 · answered by D.J. 2 · 0⤊ 0⤋
Get your bills paid up. Good credit means you keep every thing paid up on time and never late. My credit is no good and I like it that way because I am never in debt and never have late fees or overlimit fees. This has saved me a lot of money and make my money go further. This way my bills are never late and always paid. I love this type of freedom.
2007-03-03 06:10:51 · answer #5 · answered by Anonymous · 0⤊ 1⤋
Pay off whatever you can and cancel the credit cards as you pay them off. Keep one with a somewhat low limit in case of emergencies.
2007-03-03 06:08:41 · answer #6 · answered by chelebeee 5 · 0⤊ 0⤋
pay off all the bills to improve your credit rating
2007-03-03 06:05:49 · answer #7 · answered by Mopar Muscle Gal 7 · 0⤊ 0⤋
pay your bills and cut up the plastic. it wont go up overnight but keep paying your bills and avoiding credit cards and itll be back up eventually.
2007-03-03 06:10:26 · answer #8 · answered by Jake S 5 · 0⤊ 0⤋
(1) Go to freecreditreport.com and download your 3 bureau report;
(2) Dispute EVERYTHING negative on the report with ALL 3 BUREAUS;
(3) Some things will stick, but you'd be surprised at the number of crap that will be removed from your report.
(4) begin paying off what ever is left on the report after they investigate.
Good Luck!
2007-03-03 06:06:49 · answer #9 · answered by Anna Banana 1 · 1⤊ 2⤋
Your credit rating is based in percentages on the amount of debt you have. http://www.daveramsey.com/
2007-03-03 06:07:41 · answer #10 · answered by chief_eagle_wing 3 · 0⤊ 0⤋