How do I fix my credit and how long does this take?

Question

I'd like to purchase a home some day and at right now my credit is not good (very not good) How can I fix this? and how long would it take for my credit score to rise?

Answer 1

First, make sure all the information on your credit report is accurate.

Second, try to pay off all or any accounts that are currently in collections or make payment arrangements with the creditor to pay off the balance monthly.

Third, any credit card that is over 50% of the available credit line should be paid down to under half of your total credit line. Your credit score is lowered when your available balance is over 50% of your total credit line.

Finally, if you have bad or no credit and have no credit cards try to obtain two credit cards and make sure all of your monthly payments are made on time. This will help increase your credit score. If you cannot be approved for a unsecured credit card, obtain a secured credit card.

The only way to rectify a poor credit rating is to adopt sound credit practices for a period of time.

Answer 2

first off don't assume because your score is not perfect for your local bank that you cannot buy a home. You can get a home loan with bad credit, even scores in the 500's or below. As far a fixing it you have some good comments here, make sure what is on the report is correct- of not dispute it with the credit bureaus. If you have maxed out card pay them down- highest apr first and then down from their. If you need extra assistance lexington credit is a great company and you can easily find them on the web they do charge a fee so try to do what you can yourself first. go to each bureau and request your free report then fix what you can yourself. good luck on the road to home ownership!

Answer 3

I agree completely with Thomas V. This will take some time, but is the best (and only legal) way of raising your score.

Do not fall prey to companies that claim they can magically erase your bad credit history. The only negative items you can legally remove from your file are those that do not belong to you or are there by another error. You can dispute those yourself online or by mail with the credit bureaus.

Items that are reported correctly cannot be legally removed. When a credit file item is disputed, the reporting company has 30 days to verify or remove the item. All the so-called credit repair companies do is bombard the bureau with disputes on the same item until the reporting company either gets tired of responding or misses the deadline. This is unethical and illegal, so it's better not to try this and save yourself several hundred dollars.

Answer 4

This is going to take some time but here is what will do it
1. Pay your bills on time
2.Pay down any credit cards you have to less than 30% of the available balance (This is a big one)
3. Once you pay down, or pay off those cards keep them open do not close them that will reflect good on you available credit to debt ratio.
4. Do not apply for any more credit everytime you do your score drops 5-7 points.
5. get a copy of your report and if there is inaccuracies in it immediately dispute them
6.If you have had repos, or accounts under collection whether you pay them off or not they will be on your report for 7 years.
How long will it take to rise is up to you although it can drop rather quickly it takes time to bring it back up depending on your situation, and what you are able to do about it 6-12 months, or if you have allot of negative reports 7 years

Answer 5

first thing is to make sure that you pay all of yoru bills on time. next is to make sure you pay more than the minimum balance on all of your credit cards and other accounts that have financing. your credit score is based on the percentage available credit and how close you are to your limits. your should start seeing a slight difference in about the first 3 months. you should also be careful about how many credit inquiries are being made about you because too many reduce your credit score. these are the least drastic things that you can do to improve your credit. hope this helps!

Answer 6

pay offf all bills on credit report and it will take up to 6 months to a year..