Is it possible to repair your credit rating?

Question

A fews years ago I got into serious debt & ended up defaulting on my loans. I contacted my numerous creditors, arranged reduced repayments & am nearly out of debt but my credit rating is understandably shot to pieces.

Is there anything I can do to repair my credit rating? Thanks.

Answer 1

You probably need to wait a few years before all the bad credit entries drop off...normally six years from inception.

It might be worth getting hold of your credit report. You can normally do this for free by signing up with experian online for 30 days trial. You can download & print your report, then if anything doesn't look right, contact the company listed against that entry and ask for the bad mark to be removed from your report. Don't forget that the report you see if the one that financial organisations see when running a credit check on you.

This won't completely clear your credit report but you may find some entries that shouldn't be there (sometimes because someone with worse credit rating shares the same name as you).

Answer 2

Absolutly! And with a little work, you can do it yourself legally, morally and ethically. The first thing you need to do is find out what's driving your score down. Generally speaking, in the order of biggest effect to least effect these items would be: Bankruptcy, Judgement, Collection Items, Garnishments/Levys, Reposessions, 90-Day Late Payments, 60-Day late Payments, 30-Day Late Payments (Late payments on a mortgage are more severe), Relationship of Revolving Balances to Credit Limits (how maxed-out are you), Number of Revolving Credit accounts, Number of Total Credit Accounts.

If there are any of the first 4 things on your report, you should work to pay these off first. In cases like this descretion is the better part of valor. For example, if you had a roommate stiff the cable company but you signed the agreement you're better off just paying off the collection item (no matter how much it is). Take care of these first. If you have a high relationship of revolving balances to limits, then your best bet is to pay off/down these as soon as possible. Only time can help late payments.

To keep your credit score high, avoid all the obvious things (i.e. judgements, late payments, etc.). In addition, make sure you have available unsecured revolving credit equal to about 25% of your gross annual income and try to utilize less than 30% of that. For example, if you make about $35,000 per year, all of yoru credit cards should have a combined limit of LESS than about $8,750. Of that, you want to try to never owe more than about $2,625.00 at any given time. The less you owe, the better. Having a small car loan and eventually a mortgage will also help to keep your score up.

Good luck!

Answer 3

Do not go those companies that claim that they can repair your credit file.

The only way you can fix it is through paying bills on time, this will take time though.

If you have negoiated a payment arrangement with your creditors, the credit rating could still be affected because you are not keeping to the original agreement.

Just maintain payments as best you can

Answer 4

once you payoff your debt, get your credit report & correct it immediately with the credit reporting agency. just because you paid it, doesn't mean that the creditor updated the credit reporting agency.

the credit reporting agency will verify your statement & update your report within 30 days. have 1 credit card, use it once, pay it in full, & don't use it again. a $0 balance with $0 due is considered an ontime payment. give it 12 to 18 months & your score will increase dramatically. i increased mines by 130 points in 15 months & i was able to refinance my condo to a much lower apr.

Answer 5

Request a credit report to start. www.freecreditreport.com is a good site. Then contest every negative hit on your report. Most times they will remove the hit. Not everytime, but quite often, especially on closed accounts. I did this for my father, whose credit was horrible, he had 17 negative accounts which were all closed. I got 14 removed. Then try getting a credit card from your bank. Something with a relatively low max and put a little money on it. Having open credit accounts in good standing help alot.

Answer 6

yes but it will take a long time and it best to apply for credit when the defaults have dropped off after 6 years but in the meanwhile you can take out a credit card with capital one,aqu and vanquis to start to repair your credit history by making regular payments on time to build up your credit rating.

I think you should check your credit rating with experian and equifax to see how low it is and you would be able to see what you need to to do to inprove it.

Answer 7

You can't remove any TRUE information from your report. Anyone suggesting otherwise is promoting FRAUD. If you have been paying according to the amended agreement, your credit is already improving. The longer you continue, the more your score will improve. If you spend less than you earn and get TOTALLY out of debt, you don't need a credit score anyway.

Answer 8

i'd pay them off and cancel the playing cards. all of them. Dont worship on the modify of the almighty fico score. the only those that obsess with the i admire debt score are those that plan on borrowing multiple funds and paying multiple pastime. stay to tell the story under you're making. pay funds. A low i admire debt score from no longer paying your costs is undesirable information. a nil score from no longer borrowing funds will nonetheless get you an place of residing and a job and abode own loan and in spite of else. Debt loose is definitely a thank you to be!

Answer 9

Time heals all wounds. It also wounds all heals. Keep your nose clean and your money straight and above board until the healing is complete or for the rest of your life which ever comes first.

Answer 10

make sure you pay everything on time from now on, and your credit rating will slowly start to head in the right direction again, you will still have rent/mortgage, and fuel bills. so pay them on time