What is the fastest way to get your credit back up. We need a lot of advice on our situation?

Question

My Fiance and I are struggling for money and we really need to get our credit scores up. So how can we do this with very little money. We have debt that we are TRYING to pay off but it just seems like something new keeps coming up that costs us money. Any advice would be greatly appreciated. Our lease is up in March also and we don't know if we should renew the lease (which the price will go up and we're not sure if we can afford it) or should we move to another apartment in another county where the rent is cheaper. If we move then we both would have to find new jobs. It's so hectic, please help.

Answer 1

If you were to consolidate your debt it will be much easier to make one easy payment instead to multiple lenders. I also now that if you do consolidate your debt at the beginning it might show negative on your credit score but eventually if you make payments on time it will get better with time.

*Make payments 2 weeks before the due date

*Even if you make the minimum payment always pay

*Try when you have extra money to make big chunks

*Don't close any accounts (this shows negative on your credit score

*Monitor your credit score (you can use www.freecreditreport.com i think afterr the first month is free afte it is 12 bucks, its well worth it)

* The balance on a credit card has to be the half of the limit (ex. 200 limit balance should always be under 100)

About the lease well if you change of location they usually run your credit i don't know how bad it is but you might run the risk of having trouble getting a apt. but if you can find one definitely do it. Remember to stay positive there is always a solution for everything.

Answer 2

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Answer 3

There are a couple of ways you can build credit even when you're credit report isn't that flattering.

Go to your bank. Take out a secured loan. Esentially, they are loaning you money against your own money! They deposit the money into a CD, which makes you a little money, but they don't release that money back to you till the loan is paid off.

Get someone to cosign for you to get something. Pay that bill on time every month.

Get a prepaid credit card from orchardbank.com
They report to credit agencies!!

If you are too broke to do anything to build credit, then it is important you do pay the bills you have on time every month. This will keep you above water in your credit report.

Also, as others have mentioned, get a second job. This income could really help you.

Learn to budget and LIVE strictly by that budget with allowances for each of you.
Try this free info:
http://financialplan.about.com/library/howto/htbudget.htm

Getting out of debt and back in to the black requires a great commitment from both of you.
Once you're in the black, you will feel like a ton of bricks has been lifted off your shoulders.
Good luck!

Answer 4

It takes a lot of time to get your credit score back up once you've brought it down so much with late payments and defaulting on things. You have to start taking care of your finances and realizing that paying your bills are more important than buying new things or going out. Pay off one credit card at a time, starting with the one with the highest interest rate, while paying the minimum on the others. Make sure you can pay things and if you can't afford to live in your current apartment, it's time to move. If you don't straighten this out your going to have a hell of a time buying a house someday or a car for that matter.

Answer 5

There are many good books available on debt reduction and increasing your credit score. These might cost $10 to $15.

I found keeping a budget is both revealing and fun. Keeping track of all daily expenditures will make you think twice when you buy things. At then end of each month you will see a pattern of where your funds go. (Eating out adds up).

To increase your credit score you can loan yourself say $100 from your bank (as a secured loan) then pay it back over 12 months. Using a credit card you can keep a low balance and consistently make you minimum payments on time every month for 12 months. Creditors love to see consistent payments that are on time. You also get points if your credit card balance is low compared to the available amount.

I recommend buying a book on the subject if you are serious.
Doing it yourself is more advisable than going to one of those businesses that claim to increase your score or reduce your debt.

You can also surf the net to find information on these topics.

Good luck, you can do it! :)

Answer 6

It sounds to me like you are preparing for a big buy. There is no way to get your score up if you are paying on a large debt now. If you pay all of your bills on time, and pay off the debts, eventually your credit will go up. Your rent is part of your credit rating, and it may not be good to change, neither will your jobs. Limit your credit card use to things you will be able to pay off immediately. Give up unnessesary things, like eating out, new clothes and accessories, driving, turn down your thermostat and wear sweaters, etc. You can live without these things. Cable is a big budget expense, learn to spend that same time playing cards, or having romantic dinners at home.The best way to raise your credit is by being able to save money, live below your means. It will take time. Good luck.

Answer 7

Sounds to me like the two of you need to sit down and decide what you really need and what you don't. If you weed out the things your paying for that really don't need this will help save a little there. Remember, you have each other and don't nessarily need things you think you do.
If your struggling to pay bills...look for an easy way out like...get the pay as you go cellphones. This will help liminate a bill. Do you have cable? Get the pay as you go sattlelite.
Do you eat out alot? Stop eating out and make a romantic diner for two at home. Go to movies? Stop going to movies and rent one or better yet...sit and play games at home. There is all type of games you can play with out even buying a game. :)
If you like your jobs, I would not suggest moving to a different location. That is gonna cost you more money in the long run that it seems you don't have.
Try to consolidate your bills down to make less of payments going out.
Good Luck on getting your score up.

Answer 8

First off, calm down. Sit down and gather up all your most recent bills for the last month. Write down all the people who you owe money to and how much TOTAL (not minimum payments). From there start devising a plan on how to pay them off one by one. See how much you can afford to pay each one. If you can't do it all at once (in minimum payments) see which one's you can get up-to-date. That's the best way to start getting your credit up. Get up-to-date on all your payements.

Late payments is what makes your credit score lower and lower.
Good luck. If you really need help - then get a second job. Use whatever money you save from that to save for your mortgage renewal. As soon as you get your credit up then you'll be able to afford alot more then you thought.

Answer 9

There is no fast, easy way to improve your credit rating; Paying past debt in a timely manner, and paying off debt early is the only way to increase your credit rating---it takes time.

More than two credit cards can also lower your credit rating---it also does not matter if credit cards are maxed out or not; financial institutions view this as a negative, knowing that they can be maxed out to the limit at any given time...

Answer 10

One of the components of your credit score is the proportion of available credit to actual credit used. If you have 2 credit cards and they're both maxed out, you'd get a better credit score by getting two more cards and transferring some of the debt to each of them. Maxed credit hurts your score. I'd suggest you purchasing a cheap home, but you're not married yet and co-mingling finances is a bad move.