Horrible Credit.I Need Help?

Question

I'm 22 and I have horribly bad credit . I have 2 capital one cards with $500 credit limit. Plus I have been financing a car for 3 years, with 2 more years to go? Is it hopeless that I will be able to improve my credit in a couple years? I have been over the limit a couple of times plus had late car payments :(. I really honestly try to be good. but to no luck. I want to get an apartment and eventually a home. I need helpful advice in ways to improve credit as quickly as possible. I know it will take time..but I just feel dreadful with this bad credit score. Please help....

For more information for people who make too many assumptions. I do not live with my parents. I live on my own. My mother passed away when I was younger and my father can hardly support me so I support myself and use financial aid. I go to school full-time and wutever time I have left I go to work. Im in debt because of many circumstances that came my way.

For more information for people who make too many assumptions. I do not live with my parents. I live on my own. My mother passed away when I was younger and my father can hardly support me so I support myself and use financial aid. I go to school full-time and wutever time I have left I go to work. Im in debt because of many circumstances that came my way. This is why Im asking for helpful advice to increase credit as fast as I can

Answer 1

a loan consolidation works. I found interesting information about your answer & options here. http://all-debt-consolidation-loan.blogspot.com/2007/07/loan-consolidation.html Good luck!

Answer 2

Since the cards have $500 limits each, the total balance must be no more than $1000. Pay them off completely. If possible, also pay off the car loan early. Be very careful not to go over the credit limit and to pay the bills on time. Pay all the bills (credit card and car) on time. After you pay all the bills on time for long enough, you can ask them to raise your credit limit, which will make it easier to avoid going over the limit. After 7 years of paying everything on time and not going over the credit limit, you should have good credit.

If all else fails, sell the car and use the money to pay off the credit cards and buy a less expensive car.

Answer 3

It is not hopeless at all. If you pay your accounts well and get the balances down below the limits your score will probably improve a lot in a couple of years.
There is a debt simulator on www.myfico.com that might show you the range your score will be in if you pay on time for 6 months and if you get the balances down to a lower percentage of the total credit limit.
Don't take out lots of new credit either as it can lower your score, and also it is better not to be in debt.

Answer 4

The first step is to manage the credit you have properly. That is, no late payments, no overlimits, etc. You aren't doing that, so you can expect your credit to remain poor. If/when you start behaving responsibly, then your credit score will improve, your limits will be raised, and other creditors will offer you more credit. Within a couple of years, your credit will be decent if not great.

You don't sound like you're ready for a rental at this time.

Answer 5

People-to-People Lending. It's an old idea that's new again.

People who need money request it, and other people bid for the privilege of lending it to them. Prosper makes sure everything is safe, fair and easy.

Until now, financial institutions have controlled who is able to obtain credit and the rates people pay, over time, this one-sided control has bred inefficiencies and excessive margins – leading to higher rates for borrowers, and restricting people who have money to lend from entering and generating income from this vital and lucrative market.

Prosper gives people the opportunity to take back the marketplace for consumer credit, Prosper aims to make consumer lending more financially and socially rewarding for everyone by letting the borrowers set the maximum rate they are willing to pay a lender, which prevents the loan from being funded at a rate higher than the borrower wants to pay.

http://www.prosper.com/join/GlobalFundingSource

Answer 6

You should take a very serious look at your spending habits. There is a big difference between WANT and NEED.

It sounds like you live with your parents which means no rent or utilities. So just what are you spending all your money on? Definitely not NEEDS. Do you even know where your money goes?

For two weeks, carry a small notebook and mark down every penny you spend. I suspect you are going to be shocked at how much money you are wasting.

Answer 7

Opt for a debt consolidation loan: The easiest method of getting a debt consolidation loan is to utilize the equity of your home. Equity of your home is calculated and determined by the difference in the amount you have paid and the amount you owe. If the amount you have paid is more than the amount due, you can use it as collateral. This allows you to borrow money on lower interest rates. Besides, you also get tax benefit on this type of loan. Consult your tax advisor before opting for this loan.
http://debt-trap.com/category/Debt-Consolidation-Basics.html

Answer 8

I hate to say it, but you've dug yourself this hole. The best way to improve a credit score is to pay back your credit on time (which you've said you've had trouble with in the past)...make it your #1 priority. And, get more open credit (not spend against it, just have it), which, with bad credit, you will find it hard to do. Keep what you have for the time being and pay it back on time!

Answer 9

Make a budget and stick with it.

Spend less than you make.

Pay off any outstanding debt.

Pay all bills on time every month.

Eventually your score will rise.

Answer 10

That was pretty funny! But at the same time it also doesn't make sense, because how can the guy w/o ears hear what the other guy is saying?