I majorly screwed up my credit. i know. i am 22. have had 3 credit cards to the max. i didnt pay them for almost 5 months. (all equal about $2,500) someone borrowed me that money, and they are payed off now as off 6 months ago, i also have a car loan right now, however, i do pay that on time every month! how long will it take for my credit to be good enough to maybe purschase a house or possibly another car.
p.s. i dont want any "you're stupid"...because i know i was, i just need a little advice and help.. thanks in advance!
2007-04-20 11:04:54 · 11 answers · asked by Anonymous in Business & Finance ➔ Credit
It will take about 5 years before the late payments go off your history, maybe even up to 7 years depending on how serious the delinquencies were. But, as long as you continue paying everything on time from this point forward, and develop a credit history showing that you have changed your ways, then it will only get better. Now.. I would recommend that you check your credit report and verify the data.. You can do this for free at www.annualcreditreport.com. This is a Gov site for you to obtain a free credit report from all 3 bureaus. Look it over and dispute anything that is incorrect on the report.
A good site that gives you very good information on how to improve your credit report is www.myfico.com.. I use that site myself, and find the information there very helpful.
2007-04-20 11:15:24 · answer #1 · answered by rfrstormer 2 · 0⤊ 0⤋
contact your local consumer credit bereau to get a copy of your current credit report. They can help you straighten out any descrepencies on it. As to exactly how long it will take before you're eligible for those type of major purchases; but yes as long as you have paid off those old debts and all accounts are current; your credit score will gradually rise over the next several months. I would say give it about 12 months and just go apply for a loan and see what happens. Try not to get people to run a credit check too often, because it will lower your cedit score a couple points each time your cedit is checked. 2/3 times a year is good(about every 120 days).
2007-04-20 18:21:28 · answer #2 · answered by lightbulblady1 3 · 0⤊ 0⤋
I deal with credit issues every day for a living. Trust me when I say you can fix this.
Equifax, Eperian and Trans Union are the credit companies in America who provide your rating. You have the right to get a free report from your local bureau once a year and I suggest you do so now so you can have all the pertinent info at hand.
Once you have this, you can check your score, make sure the credit card companies have posted the payments and see if the car loan is being noted properly.
Don't pull your credit report or apply for credit more than three times in a quarter since this drives your score down.
Your score won't go up unless you protect it from being pulled up or adding to the total you owe.
2007-04-20 18:17:20 · answer #3 · answered by mrscmmckim 7 · 0⤊ 0⤋
Just try to get back on track and slowing youll get a better credit report. freecreditreport.com gives you advice on what your credit score means and how you can improve it. here are a few things they suggest.
What factors raise your Score:
You've paid your bills on time and currently do not have any overdue accounts or derogatory information, such as a collection, charge-off, or bankruptcy, on your report. You can be proud of the fact that you are helping yourself maintain a good credit score, so continue with the positive credit behavior!
You have no open installment loans, such as auto loans, on your credit report. This positively influences your credit score because lenders feel you are more likely to pay your other bills without the fixed monthly payment attached to an installment loan.
Your credit report does not contain negative public records, such as a bankruptcy, lien, lawsuit or judgment filed within the last two years. This is having a positive impact on your credit score. Although public record items may remain on your credit report for seven to 15 years, depending on the item, an important piece of your credit history is paying your bills on time, every time.
2007-04-21 12:51:39 · answer #4 · answered by Tiffany D 1 · 0⤊ 0⤋
Sara, You're NOT stupid!
Many of us use shopping for many reasons. Depression, trying to feel and appear important, the list could go on.
Feeling important comes from within - ONLY.
Believe in yourself and "things" will not be an escape for you.
If you really want to be level-headed with your finances or any part of your life, take a real good look at yourself and why you allowed this to happen. Oh, and you are not allowed to "blame" anyone for anything! This is Only about YOU.
What are you avoiding or running from?
Embrace everything about you - good & not so good. Accept wherever you are and whoever you are. You're perfect! Only act on things that make you feel good.
Accepting, being totally honest and consistantly working on yourself is a life-long process. Change is NOT an easy thing to do but, Anything is possible, if you choose.
Good Luck!
Veggie
http://www.MiaBellaDirect.com
2007-04-20 18:27:19 · answer #5 · answered by Anonymous · 0⤊ 0⤋
If your credit cards are now paid off for 6-months and you have been making your car payment as agreed, you are on the way.
Most lenders look for at least 18-24 payments on a car loan made as agreed. I don't know how long you have had your car loan or how long you financed it for, but as a rule allow 18-24 months.
And yes it will get better. just make sure to never be late and your credit will get a lot better.
2007-04-20 18:15:23 · answer #6 · answered by ? 7 · 0⤊ 0⤋
Bad credit will stay on your credit report for 7 years. Keep your payments up to date now, and although it's going to be difficult, make more than the minimum payments whenever possible. If you make only min payments, chances are you'll never get them paid off because your min payments will be totally eaten up in finance charges.
As someone who has been where you are right now, my best suggestion is to cut the cards up, until you get yourself straight. It's way too tempting to pull the cards out "just this once". Break the habit.
2007-04-20 18:12:46 · answer #7 · answered by icy_tempest 5 · 0⤊ 0⤋
Yes bad credit stays on your report for 7 years, however you can start to off set the bad with the good. Continue to build good payment history with your car loan and whatever other good standing credit you may have. When you want to learn more visit http://www.thecreditrepairmanual.com everything you need to repair your credit is there.
Good Luck,
2007-04-20 22:34:51 · answer #8 · answered by Anonymous · 0⤊ 0⤋
You need to stay paid up and pay more than the minimum on every single credit card you have. In the meantime, you can't use the cards to increase the problem. It will take a concerted effort to get out of debt, but the effort will show up and improve your situation. If it took you 4 years to get into this situation, you have to assume it will take you at least 4 years to get out.
2007-04-20 18:20:59 · answer #9 · answered by Still reading 6 · 0⤊ 0⤋
It will stay on your credit report for seven years, but with everything paid off now, and regular payments kept up to date now, you might be able to buy a house in two or three years, and get a car loan somewhat sooner than that.
Good luck.
2007-04-20 18:16:00 · answer #10 · answered by Judy 7 · 0⤊ 0⤋