How long does it take to get A credit if your credit sucks?

Question

Let's say today on I do everything right, could I repair my credit in like 2-3 years to where I can get a low rate on a mortgage?

Answer 1

Bonny there is no simple answer... but let's get u started in the right direction. Today u have to pay ur bills on time or early. That includes rent and utilities.

It may mean you have 2 or 3 jobs...but it can be done. But the very first person you PAY EVERY WK/2WKS/MONTH depending on how your paid is YOU! U have to learn to save. Your immediate goal is to stash 4-6 months emergency fund. Sounds like you want a home of your own.

If you qualify for goverment first home lending then that should be an option for you. Also there are properties out there in forclosure but u really have to do your homework. Lenders have really tighten qualifying right now. It just depends how much and how long have u cleared up your credit report.

Be very careful if your a first time morgage customer. Really educate yourself, cause closing cost, points and different morgages can seriously bite u in the tail and leave u with nothing.

It means u need to take a long hard look at your debts and come up with a plan to pay them down and out. There is no quick fixes. Credit was never designed to help anyone in all honestly. It is the way in which banks, big business can screw the poor... truth be told. It's there way to rip off the masses legally.

U have to know who u owe money to vs. all the collection dealers who add fees and charges which u didn't charge to begin with. How r goverment let's these lending sharks continue to hurt the american consumer is beyond me.

Now in theory bad debt is suppose to erase in 7 yrs and if filed bankruptcy (which u need to avoid that scenario if at all possible) 10 yrs. But what consumers fail to realize, they keep and share with other vendors their records which go way back on consumer. Have u ever tried to correct a credit report? It is not easy and it's meant to be complicated for the consumer not the credit reporting agency. More and more employers use credit reports in the hiring and even now in renting. If something seems too good to be true, changes are it is. Good luck

Answer 2

It can be done, but it also depends on what you have on your credit, the good and the bad. Keep in mind that credit is designed to be used over time, so it's important that you get the accounts that you've had for some time back in good standing if you're able to. Also, when it comes to the bad stuff, make sure that it's yours to begin with, if it's not then you should dispute with the 3 agencies. As far as the items that are yours, it's important that if you are going to take care of these, try to negotiate what's called a "deletion payment", which is a payment in exchange for getting it removed from your report altogether. Now the collectors don't have to do this, but if you're able to talk to the right person, it can happen. I posted links to a site that explains about this more in detail

http://www.creditinfocenter.com/debt/settle_debts.shtml

http://www.creditinfocenter.com/debt/neg_rating_after_settle.shtml

http://www.creditinfocenter.com/debt/CanCreditorSue4SettlementDifferences.shtml

http://www.creditinfocenter.com/debt/ActualDebtSuccesses.shtml

And even after you're able to do this, keep in mind with the current situation in the mortgage and lending business, just having a high credit score won't be enough in some cases. Lenders are moving back to "common sense" lending which means that higher down payments and collateral may be required.

All in all, I would suggest work on rebuilding your credit, and see what happens here in the future.


good luck!

Answer 3

At a minimum you will need a two year history of consistent on time payments.

You should also pay off your credit card balances. Carrying balances of more than 30% of your limit hurts your score. Paying them off in full every month is much better. Save on the interest and stay out of debt.

You should also get your credit report and work on clearing up negatives. Start with the newest and work back to the oldest. The older the debt, the less impact on your score. Negatives do fall off your report in 7 years.

You can negotiate settlement for 75% to 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 for deletion for payment -- some will; some won't.

Paying off old debt won't improve you score but a mortgage company will require you resolve all old debt.

You should also put a set amount in a savings account toward a downpayment. This will also help you get a better deal on a mortgage.

Answer 4

There is no simple yes or no answer to your question. To start with when you say you credit sucks that means different things to different people but it normally is associated with a credit score. There is no set scale but really bad credit is generally below a 600 FICO. Good credit is above a 700. How far you have to climb means a lot in determining the answer.

The other question is how long you've had bad credit and how long you've had credit period. Between those two things that's two thirds of your credit score. Having bad credit for short period of time (a bump in the road) could probably be overcome in a few years especially if you have years of good credit before it and after it. Failure to pay your bills on time for years will take a very long time to overcome.

The good news is that most things stay on your credit report for 7 years. Bankruptcy is 10 years. That is your "worse case scenario".

Answer 5

Yes, your credit score will improve if you continue to make payments on time. The negatives on your report will still show up though (I believe for 7 years.) If you think there are any negatives that can be resolved or removed, or are falsely showing up on your credit report, start trying to fix them right away. Get copies of your score and reports and see if there are any lenders that would be willing to work with you to remove them. It takes a while because there are phone calls and paperwork involved, but it's totally worth it. You'd be surprised at how much your credit score shoots up just by having one thing removed!

Answer 6

You can do it in like a year and a half. You just have to make sure that everything in collections is cleared up. Also, make sure like you said you do everything right from here on out. Pay on time, ahead of time if possible. Also, write justification letters to the three major bureaus as to why the negative things on your credit report are there. Why you never paid or were late. You lost your job, you got kicked out of your house, you had a medical emergency, you....whatever, just justify it, pay it, and get it cleared off of your stuff.

Answer 7

Everything you pay on time will help your credit. If yuo show no delinquents for 2 years your score will go up, three years it will go up more. Bankruptcy comes off after ten years. Just keep paying on time and your score will go up. If you are really in trouble and have not declared bankruptcy, contact your local free credit counseling service. They will help you improve your credit faster.