Okay ive gotten rid of all bad debts..now what?

Question

i had negative collection accounts removed from my credit file. I negotiated this with my collectors, i would settle the debts with a stipulation that once they were paid, they would have the report completely deleted from my credit file. They agreed to this in writing. I checked all 3 credit reports a couple of days ago, and they kept their word!! (hooray).
So now, i have NO negative tradelines on my credit file whatsoever and i have 3 accounts in good standing (all of which have been opened for at least 3 years) as showing open/never late.
My question is how long do i have to wait until my credit score goes up? i want to get a car loan asap!

Answer 1

How long to wait before you credit scores goes up? Long time.

Credit scores do not just jump up as soon as negatives go away. Your score will only rise when you demonstrate that you can be trusted to pay off your debts over time.

A car loan is one of the best ways to boost your score, because you will pay it faithfully and on time every month. It demonstrates that you can budget, and send in the checks (without any bounced checks, I might add)

Then after several years of doing that, your credit score will be significantly higher then it is now.

My credit score could be higher, but I do not have a long enough credit history. My first credit card was only 23 years ago.

Free advice:
You have no outstanding debts. Good for you.

Do not get yourself into a situation where you will incur new negatives on your credit report. Do not over buy your car, and keep your payments affordable. Pay more then the minimum on the car loan, and get it paid down early. (And, that leaves you some wiggle room if you have a tough month on other bills.)

Best of luck

Answer 2

If you confirmed the negative listings were removed from your credit report, you should already have your credit score. At my financial institution they have 5 classes of credit, with A being highest and E being lowest.
A = 740 and above
B = 686 to 739
C = 630 to 685
D = 600 to 629
E = 599 and below

The higher the score the better the interest rate. Getting the negative reports off your record is a big deal, but your score will probably improve over a time period.

I recently read an article that one late pay on a revolving charge account can knock your credit score down 100 points, so be very careful to keep your credit score clean. It's a lot easier than going to the trouble to get it cleaned up.

P.S. If you have your score, any lender can tell you you what the interest rate will be. Don't hesitate to shop the bsuiness for a better rate.

Answer 3

That is fantastic that you worked so hard on getting those negative items removed and that will help you a lot.

The bad news about credit is the only true fix is time. I had credit issues in the past and it can be really debilitating. Believe it or not, it is easier to buy a house than it is a car after low FICO scores. Be sure to get your current FICO scores from www.myfico.com/12. Take these reports to the dealership you are interested in purchasing a car from and ask them what interest rate you can expect to get with those scores. DO NOT allow them to run your credit report until they give you some sort of guarantee (in writing) that they will honor a decent interest rate on the car you agree to finance. They will of course have to run your credit before they can close the deal, but every credit inquiry can lower your FICO score by 12 points. Go to the financial manager if the salesman can not give you a guarantee before running your report. Good luck!!!

Answer 4

first congratulations welcome to the free world

it will take a few months so here is what i would do

use one of your credit cars for consumers goods (gas food etc) but pay the balance off each money -- no interest charges.

open up a small saving account at the local back -- one should always have at least 3 months money is a saving account in case you fall on hard times -- laid off real sick etc

than find a car with the price close if not lower than the loan valve of the car.

go to the bank where you have your savings account and take out a loan and use the car as security -- you might have to come up with a little down paymen

good luck and have a happy debt free future

Answer 5

I believe if the situation is with bowel motion then you definately must keep that assembly for a at the same time when you don't seem to be comfi approximately it given that it is going to result in extra embarrassment Now to reply you query.. Okay we could positioned the noticeable apart, assuming you've got cleansing your tooth, flossed, and wiped clean your tongue, rinsed it out with mouthwash, prevent any sugars from breakfast, I could drink a tumbler of Alka-Seltzer Effervescent Tablets ( they have got them additional robust that paintings in seconds) simply to get the fuel/constipation away and supply it like 20 mins to transparent you. Then bite gum..peppermint..spearmint some thing mint for a couple of mins.. I choose altoids truthfully, no longer the gum however the white chocolates, simply that gum builds up fuel in me.. God pace!

Answer 6

If all the negatives are gone, your score should immediately increase.

Make sure you don't buy more car that you can comfortable pay. Now that you've cleaned up your credit, you don't want anything to mess it up.

Answer 7

Call your local Consumer Credit Counseling agency and tell them what you have accomplished, and what your goals are. They will help you with some advice. Great job on what you've done! I bet you learned so much from the experience. Good luck!