how do i rebuild my credit?

Question

I am trying to rebuild my credit and i cant even get a loan.. i posted on here but something happend.. somone told me to email this guy that gives out loeans but i dont know if i should do it.. i cant get approved for a lona and it sucks... does anyone have any help with getting a loan or something????

Answer 1

Well, you should consider one of the free consumer advocacy credit counseling agencies at your local school or employment office. They may be able to give you specific advice.

Rule #1 : Stop digging, get yourself a budget going on, if you're spending more than 50% of your income on fixed expenses (rent , food etc, you need to rethink your lifestyle).

Rule #2 : REALLY Stop digging , if you have more than 20% of your annual income in credit card debt you're already deeply screwed with respect to the interest you are paying on that debt.

For this conversation I'll asume you have a few thousand dollars in debt (about 6k) or so.

With respect to credit card debt especially, PAY THAT STUFF OFF, the interest rates are compounding and usually ruinous, you are not meant to be paying that stuff off - that's not what they're designed for.

With the creepiness of collections these days, and with the distinct prospect that these guys will become even more sleazy in their efforts to get you to pay, you need to do a couple of things.

1. Assess your situation. What is your total known debt. Find all the creditors you can remember, and determine what those bills are.

2. Get a hold of your credit reports, see what Experian, Trans-Union and Equifax have to say about you. What are creditors saying to THEM about you.

Based on what's on your credit reports you will find errors. Unless you are a rock-star millionaire, or a politician who has access to the media to give these guys bad press, you are "little-people", translation "we really really don't care what you say - ever".

If you have problems, you'll have to go through humongous amounts of hoops.

Specifically, you need to have a notarized copy of a recent bill received at your current residence. You have to have a notarized , photograph ID and usually some other form of identification which is seriously official - (keep the originals , send them notarized copies.)

Then you can "prove", that you are you and they will deem it ok to talk to you. (you need to prove that every time you talk to them or request an alteration of your credit reports).

Only worry about the stuff that is genuinely wrong.

If you find anything unusual (and most people will), you want to flag your account as having been the victim of credit-card fraud (one in five Americans have been/are the vicitm of credit fraud, the other 4 are just waiting to be).

If you are a serious victim, get help, get to a credit counselor and contact the credit card or other companies that have been defrauded. Contact your local prosecutor if it's really bad you're credit may be crappy but there's no reason it's not still a crime if you're victimized.

After you get a picture of what you owe and what the credit companies think you owe, set a war budget, set aside as much money as you realistically can, and set a series of 6 month goals.

I find that setting aside money to come out of my paycheck is reasonably painless - since I never see it until tax time, but then presto I've got a few bucks come tax time.

Some people may say this is a bad idea but if you're in the habit of running up credit cards and paying minimum balances, you're already screwing yourself worse in other ways.

Use that payday in April to pay off bigger debts.

Now as far as your debt is concerned you may want to arrange it one of two ways (or in some combination) based on the interest rates and or the balances outstanding.

Start paying! Pay off the higher interest stuff off first.

Pay one card off at a time, don't pay many cards at once. This is a hit them hard, hit them fast kinda game. Once you start paying about 1/2 of whatever you owe a particular creditor.

If they have also contacted the credit reporting agencies, you can contact them and see what you can do about having the negative stuff removed from your credit report. Don't negotiate, if they won't do it , don't push.

If you're rates are really high, contact your creditor (again once you've made a couple of payments) and ask them to see if they can reduce your interest rate [temporarily].
PAY THAT PUPPY OFF as fast as you can.

Eliminate your credit profile, credit card companies say that "oh the more credit you have the better". That's BS, pick the two lowest interest rated cards, pay them off, keep them paid off and shred the others.

Get an American Express card, I don't mean to pimp AMEX here, but I find that the fact that you HAVE to pay that puppy off every month keeps me honest and from spending too much.

One of the other things that you will find is that once you start paying stuff off, you end up in a "virtuous cycle" where you have a little more cash for paying stuff down, This is the "war effect", and this is the way you know you're getting ahead.

Watch the movie "Maxed Out" either on youtube or rent the DVD, it's totally worth it.

Answer 2

Hello,
If you want to build your credit score, you must familiarize yourself first with the factors that is affecting it
Your Credit Score (also known as your MyFico score) is calculated with the following:
35% - Payment History
30% - Credit to Debt Ratio
15% - Credit History
10% - New Credit
10% - Credit Types in Use
Fixing the areas which you lack are going to improve your score.

*Now that you know the basis of your credit score, the next step is to Know and Track Your Credit Score (This will give you an idea about the status of your credit score)

*Since 35% is Based on your Payments History, Always pay your bills on time

*Never use more than 20% of your Available Credit

* Keep Credit Cards that Have No Annual Fees Open For as Long as Possible

* Extend Your Credit Limit on Cards You Already Have before You Get New Ones

*Transfer Your Balance to a Credit Card with a Lower Interest Rate and a Higher Available Credit-

* If You Think You Are Going to be FORCED to Pay a Bill Late Ask for an Extension or Payment Plan

*Take out a Small Personal Loan and Repay it Over a Year

* Ask Someone With Good Credit if They will Account Shadow you

Answer 3

The best way to rebuild your credit - is to pay all of your bills on time- every month.

Start trying to pay off your higher interest rate debts first.

I'd avoid taking out anymore loans until your financial situation is in better order. With a bad credit report, the only loans you are going to get are going to have ridiculous interest rates because you are a bad risk.

Answer 4

Unfortunately the first thing to do is to not apply for another loan or credit card account. Credit/loan applications actually reduce your score. The rest of it is a matter of staying on top of your bills and making your payments on time. If you have a steady income, try to make a budget where you can pay off your debts on time, and your credit will slowly heal itself. If things are simply impossible with your current level of income, you can usually talk to your credit card company for options, as they don't want you to be delinquent on your loans any more than you do.

Many credit cards also have an low interest rate for balance transfers. Combining all your debts onto one card makes it easier to manage and the lower rate will reduce the amount of cash you have to pay to stay in the 'good borrower' category.

Answer 5

Just do the hard stuff.

Pay the monthly minimums on time every month.
Pay down your current credit cards and loans as much as possible.
Negotiate to pay off any overdue debts, and then do so.

Nothing cleans up a bad credit history like starting a good credit history.

Answer 6

Try to save up some money, and get a secured loan, pay it back and then build from there.. If you have $2k in the bank say, take a loan out against that $2K and pay it back, you start to rebuild your credit.

Answer 7

Me to....1st : If you get your credit report from MyFico.com to check and make sure no one used your name for something you were not responsible for financing. Then try to establish communication with your lowest balance debt collection agencies. (The easiest ones to pay off and you should work your way up the price scale). Make sure to ask for the account to show a 0 balance and not nothing negative toward your credit report. By doing this they are force to recognize that you are making an effort.....So far I have paid off one student loan & a Macy's credit card which they return to me with the paid off balance to start over, and I got a capital one card on just that effort. But trust me when I say it takes alot of getting use to, paying money out on stuff that you have already use such a long time ago; & just to learn your score affects your bank loan on the house of your dreams, esecpically when you been thinking you got it all figured out.... thats why I said me 2....5 days a go and then I found a book called the credit secrets bible on amazon.com and currently reading..really interesting stuff, I truly reccomand it to anyone who just found out that their lowest score was a 499...really sucks, with nothing no dispute but medical bills that will have to be drop in '09 so i have 2 years to wait for lower interest rates which start at 750! That really, really hurt my feelings, but it would be cheaper to wait, it does take 18-24 months to get a 700 when you start out so low, but for what the extra house taxs, insurances(6 different kinds in FL), and added bills + utilities amount to, it will be worth the wait... Ya know..lol! O one more thing innovis.com...the 4th credit bureau...check them out 2!

Source(s):

myfico.com, amazon.com, creditsecretsbible.com, www.cbcinnovis.com/history.php... capitalone.com, firstpremierbank.com, betterbudget.com & understandingcredit.com... I did a lot of reserach...it was a really nice house!!!

Answer 8

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Answer 9

You can follow various methods to raise your credit score. If you have enough credit score you can apply any loan and credit card. Look at the below website having various method to raise your credit score.You can raise upto 249 points in short period. Read and follow it.

Answer 10

Hi:

Maybe Im wrong but I dont know if I would trust in one guy giving money.
So you feel more confident, maybe you should try a company or corporation. It sounds better to me..

Im sure this will help you taking a decision so here there's a good article: http://www.badcreditfinancialexperts.com/article/2482/credit_repair_before_or_after/

Tell me if it helped ;)