I am trying to build my credit score so I can purchase a home. I have people telling me to pay my debts that are going to stay on my credit for the next 7 years. I have begun paying off my debt and my score has dropped????? should I continue to pay off the debt that will remain on my credit report for the next 7 years??
any idea how to raise my score with out getting into debt?
2007-09-12 16:22:46 · 5 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
paying off your debt might not necessarily be the best thing.
Fha loans allows low credit scores, and you may qualify now.
You need to have a loan officer look at your credit, and help you clean it up
2007-09-12 17:29:58 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Building a good credit can be done in various ways. If you are fed up of the collectors tirelessly chasing you to pay your debts or if you are disappointed at your loan application being turned down, because of absence of credit history, you should learn how to do build your credit. The most important thing to remember is not to buy unnecessary items. Do not convert your ‘want’ into ‘need’, as it can drag you deeper in debt. If you are looking to build credit and do not have any history, set your priorities properly.
2007-09-13 02:27:13 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You actually have to use your card(s) from time to time in order to sustain your credit as active.
Also, get a secured personal loan at your local bank on a savings account for $250-$500 and pay it off within 30 days. Don't use the money.
Take it out and open another savings account at another bank. Come back a week later and get another secure personal loan against the balance. Never use the money for anything else but opening a savings account. Pay off each persoanl loan before it's due (Day29).
Do this like 3 times and watch your credit skyrocket. :=-)
Keep one credit card and keep it active but pay it off each month. They just need to see activity. But you NEED to stay in control Use the creditors to build your credit - don't let them use you...
2007-09-12 16:50:00 · answer #3 · answered by Makes Sense 3 · 0⤊ 0⤋
Paying your debts shouldn't drop your score.
Have you closed credit card accounts? That could lower your available credit limit and would lower your score. Don't close credit card accounts when you pay them off.
2007-09-12 16:34:28 · answer #4 · answered by bdancer222 7 · 0⤊ 0⤋
talk to a credit counselor, continue to pay down your credit, do not apply for new credit -pay cash, don't change residences or jobs, act responsibly, and listen to the advice of the counselor.
2007-09-12 16:31:48 · answer #5 · answered by KitKat 7 · 0⤊ 0⤋