How can I raise my credit score?

Question

I had a score over 700, it dipped to 631, then jumped up to 676 after I paid an account in collections. How soon can I bring my credit back above 700 & how? I keep a low balance on my credit cards and pay in full every month, my car is nearly paid off. I am very responsible financially, spend way less than I earn, avoid credit trouble. This situation however, was unavoidable because I never got a bill in the mail.

An account was sent to collections, which was a total mistake. I was never contacted about oweing money for a $32.00 doctor visit that my insurance was supposed to cover untill it was already in collections. I would have paid it if I was mailed a notice, because I had the money in the bank, but I was never mailed a statement. I contacted all parties involved after I saw it on my credit report, and they insisted it was mailed, but I never got the notice. My credit dipped to 631 b/c of this little incident, but jumped up to 676 after found out about the account & paid it.

I'm wasting so much time on monitoring my credit, because I have been told that I can't qualify for a decent mortgage rate without a score above 700. I don't want to rent for forever. I am responsible with my credit, but next to no one pays cash for a home.

Answer 1

You need to get score watch it only cost $8 a month and it will tell you when your score goes up or down. If you pay 93 to 100 % of your monthly balance each month you shoud recive 1 to 6 points per credit card a month if you do that but go here to monitor your score and no need for the full report. = equifax.com for score watch .

Answer 2

Hi Jessie, Here are some tips I give my clients when they are looking to improve their credit for a home loan. 1. Never close any accounts. Just pay them down to a zero balance. 2. Paying old accounts could drop your credit score. Focus on paying recently opened accounts. 3. Get a secured credit card. Basically you have to pay a fee for this card but you are borrowing from your own money to re-establish your credit. Buy something small once a month (like $15 worth of gas or food) then pay it immediately. NEVER PAY THIS CARD PASS 30 DAYS! 4. Don't let everyone pull your credit. After so many inquires, your score will drop. 5. If you have open credit cards and they are over the limit, pay them under the limit and pay them to a 30% balance or less (Example if your credit card limit is $100, you should only have $30 on the card). 6. Dispute anything on your credit that is no yours to the three credit bureau agencies. Hope this helps. Well Wishes.

Answer 3

If someone tells a lie loud enough and long enough people believe it.

You dont need a fico ( I love debt ) score to get a home loan. It's called manual underwriting. They look at the person and not the score. The way it was done before the I love debt score came about. Same low rates. It's not a subprime loan either.

A low score from not paying your bills is trouble. If you have a 0 score from not borrowing money you can still get an apartment and job and home loan.

Answer 4

you have to stay on top of billings that may come back to bill you for the services. it is your credit rating, and no one else's. once the mistake is made, that's it. to correct this it would cost you more than it is worth. if you continue to make all of your car payments from here on out, and all of your other payments on time, your credit score will maybe go over 700, but slightly. good luck.

Answer 5

Why are you investing so much time and effort monitoring your FICO score?

Just pay your bills on time every time and use credit ONLY when NECESSARY.

Quit wasting your time tracking every point on your credit score.

Answer 6

Keep paying your bills on time and double your payments instead of the minumum

Answer 7

Sounds like you are doing the right thing to help it recover in time. But I wouldn't see that doctor again!

Answer 8

you can wait and it will go back up in time.