What's the fastest way to fix bad credit?

Question

I paid off all my debts last year in Dec. I only have a mortgage payment and have paid religiously since I bought my home last year. I am left only with a bad history. How much longer should I wait!

Answer 1

There is no way to fix it quickly. You can go to www.annualcreditreport.com and get a free credit report from all three agencies once a year. Make sure to get reports from all three as there are always discrepancies between agencies. You can dispute bad reports on your credit report on line. The companies reporting the bad credit on your report have 30 days to respond to your dispute. If they don't respond , it's dropped off. People actually pay to have this service done for them. It is very easy to do yourself.

Other than that, establish a history of paying your bills on time. Also, try and lower your debt. Start with revolving credit. It's the one line of credit that trashes your credit score the quickest. If you have any judgments, liens, or collections, pay them off also. Most companies are willing to work with you and set up payment plans or, you get a better deal if you pay off the entire balance at once. Some will actually drop the negative report if your willingly working with them

Answer 2

I assume that you paid off your debts before you bought your house last year. Also, your credit in time when you got your mortgage was not too good, even though you were qualified for a loan. Right? From where I would start? Order your free yearly reports from 3 bureaus online. Dispute directly with each bureau in writing any wrong or old, more than 7.5, derogatory record. If you have clear proof, they are obligated by law to get rid of the wrong record. If you do not have a proof, then better do not waste your time on old records and concentrate on reestablishing your credit. All you need 3-4 trade lines including your mortgage in good standing with balances on credit cards 40% of the credit limits. In a year you will be much better off if no new negative records appear in your history. However, do not expect 700 score with bunch of derogatory records in the past 5 years.

Answer 3

Start by paying off your current credit cards. A big part of your credit score is based on the debt to available credit limit . Carrying balances of more than 30% of your limit dings your score. Pay the cards off completely.

Get a copy of your credit report. Dispute any errors. Start with the newest bad debt and work back to the oldest. The older the debt, the less impact on your score. Contact the collector and negotiate settlement. You can settle a lot of it for 75% ot 50%. Lump sum gets better deals. Payment plans have to be short term. Get any settlement agreement in writing before you pay and don't give them access to your bank account. You can ask that they delete the negative -- some will, some won't.

Pay all your debts on time. When you have a consistent, on time payment history of at least two years, your score will be decent. Two years really is about the fastest.

You should remember that creditors look at more than just your score. They look at the whole report. Those paid deliquents might not raise your score much but they sure look a lot better to a creditor.

Answer 4

First, there is no fast way. So just get started on the hard work.

Never apply for another credit line at all. Every time you even apply your credit rating goes down.

Pay everything on time, that means so the payment is there prior to the due date, do not mail it on the due date. Late charges can kill you.

Work on paying off the one with the highest interest first.

Call them and negotiate a reduced balance.

BE TOTALLY RESPONSIBLE.

Before you buy anything, ask yourself.

Do I need it? Can I pay for it in cash? Am I living within
my budget. Yes everyone needs a budget.

Answer 5

to advance your credit you may desire to do 2 issues: a million - upload beneficial issues on your credit archives. which includes paying your expenses on time! 2 - eliminate unfavourable issues out of your archives. those could nicely be errors made by utilising the credit record agencies or expenses you haven’t paid! in the journey that your issues aren’t too undesirable or too complicated than you're able to do this your self. This evaluate website factors e-books to describe the approach and instruction manual you thru it: in the journey that your issue is complicated - or you basically don’t have the time or staying power to do it your self then you somewhat will prefer to apply a credit fix company. This evaluate website will instruction manual you to the three ultimate agencies to apply: stable success!

Answer 6

Since you stated "fix", you must understand that there is no FAST way. Clear up any collections (negotiate settlements), contact creditors and see if you can make arrangements that will bring you current....pay interest, etc.
Bad credit will stay with your report for 10 years. Remember that if you want to clean up your credit to borrow more....is that smart? When you pay credit cards off, DO NOT cancel the card...don't use it, but don't cancel either. That hurts your credit score. Good luck

Answer 7

Dispute all bad accounts & inquiries, Pay off all the other ones, Have atleast 4 good standing OPEN accounts (ex: credit cards & loans) & have atleast 1 years worth of good credit. I hope this helps! Good Luck :)

Answer 8

Your original question has been answered. To answer the new question "How much longer should I wait" in your "additional details", negative information lasts on your credit report for seven years and bankruptcies last on your credit report for ten years.

Answer 9

You could always request a copy of your credit report and start disputing bad accounts. In some places you can hire someone that can do that for you. Or you could go back and start by paying off some of the smaller accounts that you have bad marks on. It's easier to mess up your credit than to fix it.

Answer 10

Pay all your bills on time?

Don't go into debt in the first place?