how can i fix my credit?

Question

Before my wife and i were divorce we were separated for 3-4 years , she was still under my work insurance coverage. After few years later i found out through collection agency that she had gone to hospital , chiropractics numerous time and had medical claim that my insurance never paid because it only covers 90% . there are three different bill separately , one is almost $2300 all together total is almost $3000 . she never told me about this because we had lost contact, she was never around when i had file for divorce ,she had disappear, couldn't find her anywhere , i filed divorce through a lawyer advertised on a newspaper , still don't know where she is. so it was my stupidity i never checked , this happen in 2001 but still it's on my credit report , i can't get car or nice apt. how can i fix it? or when will it disappears from my credit report !!!! please help

Answer 1

I think it takes 7 years to clear off the report. Man, ex-wives...they're a pain in so many ways. After my divorce I had to pay 15% interest on a car loan due to her having our car impounded several times for non payment. Ahhh, live and learn. Live and learn.

Answer 2

* Pay all bills on time or ahead! To help simplify the process, once you get paid, pay all the bills that are due between then and your next paycheck. Allow time for the mail and processing.

* Learn to live on your take-home income. This means if you do not have the money, don't buy it. In other words, do not add to your existing credit balances.

* Pay all charged-off accounts that appear on your credit report. A paid charge-off is much better than just a charge-off.

* Create a realistic plan to allocate a portion of your income to pay off large credit card balances. A high debt-to-income ratio could be causing you to lose points on your FICO score.

* Give it some time. Most creditors look at your most recent credit history (last two or three years).

* When your bad credit is better, apply for a secured credit card. A savings account secures the card in case of default.

* Once you have used your secured card for several months, apply for an unsecured credit card (just one, don't overapply). You may have the best luck with a retailer or with the same bank from which you received the secured card.

* Your credit history measures all types of credit accounts, so you may want to establish a longer-term installment loan for a car or some other large purchase loan, such as furniture, with pay-back terms of longer than one year.

* To avoid problems, never borrow without knowing how and when you will be able to pay off the balance. Also, you should establish an emergency savings cushion for those times when life throws you an unexpected curve.

Good luck!

Answer 3

In 10 years it should be off your record.
The best course to take is cancel all your credit cards but one. Use the card once a month to make a minimal purchase such as a tank full of gas, groceries, stamps etc. Pay this off every month. Your credit score will increase quite rapidly over 8 to 9 month period and continue to go in your favor as time goes on. The majority of us all have at one time been in the same boat so don't get discouraged, I know it won't happen overnight but trust me, if you stay current on your bills your credit will be back in shape before you know it.

Answer 4

Improving Bad Credit Report: If you have a bad credit record, investigate the reason for this report. If the reason is late or non-payments on your behalf, start making payments to the lender and clear off the debt. A late payment can work against you later on. If you are unable to pay due to shortage of funds, limit your spending. Another solution is to take more credit from reputed lenders who offer you flexible payment schedule. By paying off your huge debt in small amounts quickly, you can impress your prospective lenders. Then finish off the investigation of your credit report conducted by the bureau.

Negotiation of Credit Report: Credit bureaus can also make mistakes. They store the ratings of many people and are manned by humans who can make mistakes. They can enter wrong details about you, leading to erroneous credit report. Hence get a copy from the bureau contacted by the lender who refused you credit. Read the information thoroughly and note down any errors. If they try to malign you, complain to the bureau. It is bureau’s duty to look into the matter, report the facts and send the corrected details to the lenders who have turned down your request for credit.

Answer 5

well, you have to show the govt that you can pay bills on time. in time, you will be able to make your purchases.