How should I go about inproving my credit score ? Serious answers only please .?

Question

My score now is in the mid 500's and I really want to get to at least 700 I am proably in about 30,000 in debt judgement, repo on and on should i work on paying this all back or should i just file bankrup i really want to buy a house in two years what should i do and can i buy a house now ?

Answer 1

the most important step is to make all of your payments on time. Also, as your debt goes down your score should go up.

First you need to figure out why you are in debt, change your spending habits, track your finances, write and stick to a budget, just because someone offers financing for something with monthly payments you can afford does not mean you can afford the item.

Look to consolidate your debt into one loan with lower interest, pay off and close high interest loans/credit cards. Pay as much as you can afford, not just the minimum payment, did you know that $5/day extra on a typical home loan will save over $65,000 in the long run and pay off the home more than 10 years early? Every extra dollar you pay is one less dollar you pay interest on for the rest of your loan, and it compounds because money that would have gone toward interest on your next payment now pays down even more of the balance.

Good luck

Answer 2

Ok, first of all, If some of your debt is in credit cards and not too much... lets say 3000 and under on a card. call that card company and see if you can close out the card with one lump settlement thats less then what you owe. A lot of cards wont do this but some will, especially is the debt is small.

Second, find out the intrest rates of a few of your debts... like lets say u have a visa card with 3000 on it at 26% intrest and u have a couple of more similar debts. Gather these and go to a credit union. See if you can get one loan that will cover the amounts of your debts. Only get the loan if it is lower intrest. If you can get one with lower intrest then get it and pay off your debts with it.. then you can just make one payment to that loan company for lower interst.
Also, If you have left over debt then pay more then the minimum amount each month and make a note to apply it to your principle.
Clearing debt is hard but it can be done depending on your situation. If the situation is too bad then you may want to go bankrupt. HOWEVER, after you go bankrupt intrest rates on anything u get for the 7yrs after u go bankrupt will be outrageous... probably A LOT worse than the rate will be with a 500 credit score.

Answer 3

If you file bankruptcy as your option, your credit score will plummet even further, and will be harder to repair. With a credit score of 500, it is unlikely that you would find a mortgage at a rate which is not downright usurious.

If you truly want to own a house, start cleaning up your credit by retiring debts which are appearing in your credit file. While they will remain on your credit report, your score will advance as they are paid off. As well, you need to avoid any FURTHER negative issues which might appear on your credit file.

In other words, the answer is 'bite the bullet' and make good on your debts. Then wait for your credit score to slowly improve.

Answer 4

You are biting off way more than you can chew and you are feeling the effects of it now. First things first... hold off on the house buying for a few years. It's best to wait until you are financially able to pay that mortgage comfortably month to month, not including utilities and maintenance, and on and on. While there are programs to help those in debt, you lose your house and then you are homeless. Now, onto the debt management. Destroy all your credit cards. Contact all your creditors. Let them know the mess that you are in and see if they won't figure out a way to let you pay off a portion of what you owe. My friend was in a similar situation with a creditor and basically told them she was in over her head and how could they help her. Be realistic though, these creditors more than likely on several occasions gave you a chance in the beginning. They always do because they want their money. Had you dealt with it to begin with you wouldn't be in this situation. If you reach out to them now, they might not want to work with you but then again, you won't know unless you ask. Next, pay and pay some more every month. Set up automatic debits from your bank account. You have to be willing to sacrafice luxuries that you were all too willing to charge. Food, concerts, clubs, drinks, etc. All of the fun stops now. Learn to tell friends no, you just can't afford it. Get extra hours at work, do side jobs, get another job. Whatever it takes to earn the money to pay off your debts. Avoid borrowing money from family unless you are serious and have a detailed plan to pay them back. If the creditors do not see you making the effort to pay them back they will take you to court and ultimately may garnish your wages. I work in payroll/human resources, I have seen the court papers! As for the repossession, get a bike or buy a bus pass or walk. At this point you only need transportation to work because it is providing the means to pay off the debt you acquired. Avoid filing for bankruptcy. You can do this. You just have to be serious and willing.

Answer 5

ummm there are some programs out there that will let u buy a house with a 500 score, but u have to pay like 10 % of the price down. and if i was u i would contact all ur creditors and see about doing a settlement like u paying so much of what u owe and call it even. i wouldnt file bankrupt because that will only cause problems down the line. But try and pay off as much of ur debt as possible.

Answer 6

OK, first if you file bankruptcy it will be at least 7 years before it will fall off your credit report. The best way to improve a persons credit is to pay ones bills on time and each and every month. There are places that will help you get on a budget and work with your creditors to get your bills paid so you can get back on track...Check with your local credit bureau they may know of a legitimate one... Good luck been there done that.

Answer 7

1) Stop using credit cards
2) request a credit limit increase (this decreases the % of card utilization which will help you)
3) Pay more than the minimum
4) Pay off the card with the highest interest rate first
5) Don't open up any new accounts

These are the easiest ways to improve your credit score.

Answer 8

You should pay everything on your own and avoid any kind of debt consolidation. Maybe you'll have to tighten your belt, but that's worth it. There is also a useful article about how to build good credit score at a credit oriented site. Check it up! Good luck!

Answer 9

to raise credit score?

1. Always pay on time or ahead of time.
2. maintain low balances on credit cards
3. keep your total potential debt to earnings load low - If you have a card with a $15000 credit line, you may ask them to reduce it to something more realistic, like $5000.
4. I was told by an underwriter that having just two cards, a major credit card (VISA, MC) and a consumer card (Sears, best buy, etc...) is the best mix for revolving credit.
5. You should have a recent history of both installment or term (Car or house loans) and revolving credit.

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Answer 10

File bankruptcy and have all the debt eliminated. After that start saving money. You probably cant buy in two years but maybe three or four, if large enough down payment and time on job. You will start initially with a high interest rate but you can always refinance down the road. And remember for the future......if you dont have the money for it, dont buy it.