I have horrible credit any tips on how to improve it????

Question

When I was 18 I had gotten my first credit card... then a second then a third... i max them out and regret doing that!!!! I'm now 26 and 2 yrs ago i paid off all my debt... But now I need to improve my credit score... Any tips on how to do so?

Answer 1

You are off to a great start having paid off all your debt. One thing is since you paid everything off, your credit may not be as bad as you think it is. My first step would be to get my credit score checked.

You need to put some good items on your credit report to help your credit score. It only takes one purchase for a credit card to be reported to the credit bureaus as an account in good standing. There is no benefit to running a balance on the card. If you have cards with low credit limits, a big purchase could make your credit score drop until you pay the bill for it.

Other than the credit cards(and use those once a month max), I would say hold off on the credit until you need it. You might pay slightly more interest on a car loan, but once you pay that off you should be in prime territory for a home loan.

If you are thinking of buying a home now, look for owner-financing or a rent-to-own option. It is a buyer's market in most areas, so you have a decent chance of an eager seller agreeing to those terms.

Answer 2

improving your scores is by paying off some of the bad debt you may have accrued. The less money you owe people, the better your credit rating will be. Once you have a zero balance on your card, wait for at least a month. Even though you may have paid off the entire balance on your card each month, this will only get reflected as a balance which gets reported to the Credit Bureau, a little later.

Remember, your current history is far worthy than your past credit history. Also missing payments, means increased credit card interest rates. So pay your bills on time, every time!

So pay your bills on time, and work hard towards reducing your debts. These are the two easiest and simplest steps to give your credit scores a boost! Read more from:http://www.credit-card-gallery.com/article/204,5_critical_factors_affecting_your_credit_score

Answer 3

The best way for you to improve your credit is probably to go through a company called ICR credit company. ICR is a credit recovery company that will not only monitor your credit for you, but will also protect you against any new entries that are fraudulent and anyone that is trying to review it without your authorization. They also can delete any outdated information that should come off anyway. You will be assigned a representative that will counsel you in your area and meet with you to go over your current status. They do all the work for you. To just improve it you may have to get a few things that will require you to pay them off gradually, but not right away. Sometimes the quicker you pay something off the worse it may be for you. So take a few weeks or so, let the balance sit and then show the credit companies you have patience and can pay off debts in a timely manner.
Good Luck!! Henloc

Answer 4

Good Job!

Now write the credit card companies and close all but one of your cards. Not using them does not close them, so your are vulnerable if anyone gets a hold of them. Having too many actually counts against you.

Use the one card you have responsibly. Only charge what you can pay off - completely and before the due date! It is not necessary to charge every month either.
Do not be lured into signing up for new cards just to get a discount on a purchase - it also goes against your credit rating, even if you pay it right off.

Never be late with payments. Sign up for the automatic pay (but only the minimum), so that even if you mail the payment and it's late, the minimum is deducted form your account and you are not considered late. Don't have them deduct the entire amount, it's too risky.

If you are having an automatic payment done - One idea is to charge your cable, cell phone or other utility charge to the card and then pay the card. It makes it easier to manage all those payments and makes you current with everyone. (never have them dip directly into your bank account - except the one credit card payment).

Answer 5

Get a credit card if you don't have one. Don't fall for the myth that you have to carry a balance to have good scores. You don't, and you shouldn't. But having and using a credit card or two can really build your scores.Add an installment loan to the mix. You'll get the fastest improvement in your scores if you show you're responsible with both major kinds of credit: revolving (credit cards) and installment (personal loans, auto, mortgages and student loans).Pay down your credit cards. Use your cards lightly. Racking up big balances can hurt your scores, regardless of whether you pay your bills in full each month. Mark’s book-Hidden Credit Repair Secrets can help you fix your credit also.

Answer 6

You should be under way of having a higher score already. You don't need tons of cards as you well know. Just get one and use it responsibly. Save your need for credit for a car, home and other assets instead of liabilities. If you have to put a meal out or a pair of jeans on a credit card, the reality is that you cannot afford those things. You've been in the credit card trap... don't go there again. Get copies of your credit reports and make sure they are up to date.

Answer 7

I guess you quit using your credit cards, but using cash all the time isn't going to improve your credit score. Take one of your credit cards and buy something with it every month, even just a $5 purchase will do. Then when that bill comes in, PAY IT OFF IMMEDIATELY IN FULL. No interest, no accumulating debt, and best of all, your credit score will start to improve because you are paying it off in full every month.

Might do that with all the credit cards you have... not sure, but paying off multiples every month might get it improved faster.

Good luck to you.

Answer 8

You should have at least three lines of credit and/or a car loan. Only use your credit a little at a time and pay it off every month. and don't close any credit card accounts you've had for more than a year. Most importantly, don't let your credit accounts go above 25-30% of the available balance.

Answer 9

Congratulations on paying off your debt! That's a mistake many people make, and I'm gladd you were able to sort it out.

Credit takes time to fix. One issue to watch is the credit limit on your cards. It's best to have a couple of cards, making sure you pay them off every month. The credit rating is figured on the percentage of your total credit you are using, so having one card that you never use actually helps your credit rating.

Some other things to watch; don't get any new cards or switch cards for a couple of years. Avoid store cards or other lines of credit. Make sure you keep everything paid up to date.

Answer 10

First of all cut your credit cards and put them away... just keep one or two on hand ...

use the credit cards and pay them every month...

Second buy a car on loan and start paying the monthly installments on time... Baiscally you want a loan... and car loans are easy to get thats why I recommend car loans...

once you start paying your dues ontime then you will be okey and in next 6 months your credit score should go up...

the main idea is you borrow money and pay them ontime and a little bit more then the minimum payments...