How do I raise my Fico Score My credit scores are 629 and the other two are 595 who do I raise them?

Question

I have one car loan that has only been late more than thirty days about 5 times in two years and the only other item I have on my credit is a Car loan that I had and totaled the car and the company took it to collections Help I desperately want to have good credit and maintain it.

That car that I totaled did have full covrage insurance but it didnt met the gap and thats what I was left with the difference

Also that account was paid in settlement

Answer 1

Auto finance is what I do for a living and you have no idea how bad "only late more than thirty days about 5 times in two years" really is.

With you past vehicle going to collections and being 5-times 30 days late on this one about the only thing you can do is pay on time every month for the remainder of you loan.

Answer 2

pay your bills on time = good credit.
5 late payments in one year + a collections = bad credit

its simple math.

Just because you totaled your car is not an excuse to stop making payments, you should have had full coverage insurance on the car (its usually required if you have a loan against the car) and you should have used the insurance settlement to pay off your loan.

The best thing you can do to help you credit is pay your bills on time. Stop taking out more credit until your current debt is under control and eliminated. Then when you take loans in the future, make sure you can afford them. Don't accept financing just because someone else says that you qualify, decide for yourself how much you can afford and if those payments are worth what you get.

Next time buy a used car and pay cash rather than making payments.

Answer 3

As for the late payments, they will have less of an impact on your score as time goes by.

In the meantime, you avoid making any further late payments at all costs.

Try to settle the account in collection as soon as possible. Outstanding overdue debts have a large impact on your credit.

In the meantime, pay down as many balances as possible. For every 1% of your debt that is paid off you can expect your score to go up one point. This is the quickest way to gain a few extra points.

You should also get a copy of your credit report and go over it with a fine tooth comb and check for errors. If you find any errors you can dispute them, the creditor has a window of time to confirm the debt, if they cannot confirm it or do not respond, it will be removed from your report.

Answer 4

"... only been late more than thirty days about 5 times in two years ..."

Wow!!! With that track record and attitude, I'm surprise your credit score is so high! Most people NEVER are 30 days late.

If you pay all your bills on time (that's BEFORE the due date) for a couple years, your scores will start to improve. The older those negatives get, the better for your score.

Answer 5

Pay on time, and pay more than you owe. Eventually, pay off all debt and build savings so you don't even need much credit.

A strong word of caution... "only been late more than 30 days about 5 times in two years" is considered by creditors as a very poor payment history that affects your credit much more severely than you think.

Also, call your lenders and see if they'll lower your interest rates. Then pay them all off. Your credit score will skyrocket!!! Good luck!!

Answer 6

Don’t buy things you can’t afford first of all. (not saying that you do) make sure you make all your payments on time ALL THE TIME, if you have a credit card only use it for things that you could buy without it. If you buy with a credit card, pay it off in full every single month, on time. Ruining your credit does not take long but building it back up takes a while so just keep yourself disciplined and always make sure you’re not late and you pay your bills.

Answer 7

make your payments on time ... always. Each late payment can lower your score 10-20 points. That hurts.
Think of making a payment plan on the money you owe. This account would definatley be hurting you - its reporting negative information.
Also think of getting a secured credit card through your bank to start building good credit.

Answer 8

Have you tried a debt consolidation service? They will evaluate your total debt and help you consolidate what you currently owe into one monthly payment. Once you have been paying that amount on time consistently, your credit score will begin to improve, but it is going to take quite some time before you see improvement. It may take more than a year or two.