Credit repair?
2 years ago, my credit score was 640. I got 3 credit cards- 2 high interest clothing store, one major credit card. I lost my job, and all three were charged off. When I was being called by collection agencies, I was terrified and told them I was still working, even though I couldnt make payments. Ive paid all but a few hundred dollars off, but have these 3 charge offs on my history. My score from one of the 3 major places was 530. Ive only checked with one becuase I am told it hurts to check too often. I dont want another credit card, I dont think I could get one even if I did want one, but I dont know how to increase my score in a timely manner. Ive always paid my phone bill on time, but aside from that I don't have any other bills (husband pays rest). What can I do to raise my score?? My biggest problem is that my credit score is too low to get a credit card, but I need a credit card to build good credit! I don't want to apply for 10 cards before I am accepted and lower my score even more in the process! Thanks for the tips... Where do I get a "secured credit card"? So am I just screwed with the charge offs? Isnt there anything I can do in the next 7 years to build my credit? Will the secured cards help?
Public Comments
- you can always dispute any negative item on your credit report even in you know you owe the money. you just might be able to get it deleted from your file this way... have you been to www.annualcreditreport.com you can view your report for free on this site
- If your husband pays most of the bills, consider asking if you both could charge some of those bills to any existing credit cards that you have right now and have him pay them off. That way you can build your credit without too much worry. The only way to increase your credit is to make on-time payments regularly for an extended period of time and having your husband pay off some of your credit cards for things he needs to charge for can help you get yourself back on track and it will likely not affect his credit at all. Also be wary of credit card "repair" agencies. There is NO real way to increase your credit other than legitimately having your finances in order and being regular in your payments. You may wind up losing more money if you enlist a company to repair your credit.
- take it easy and realise there is nothing to fear. then go from there
- First off if you have that one credit report, I think that is as good a place as any to start off with. Go through it like a fine tooth comb, to see exactly what is on there. Since you only have three accounts, you can either go through a credit repair agency or try to do it yourself, there are lots of information and forms on line that will help you in the right direction. For the accounts that are paid off, wait awhile and dispute their validity/accuracy, they may eventually delete this off of your credit report, for something more recent, you may have to wait. Now while you are trying to get these items deleted off of your credit report, you now have the task of trying to acquire good/positive credit. Now that's the real catch-22 situation. Because you can't get credit if you have bad credit or no credit at all, and your bad credit is preventing you from getting credit. So, again I say, you have to establish good/positive credit, and you can do that by getting a secured card, or a secured loan, that helps you re-build your credit. By paying on time, not going over the limit, staying at 50% or below your credit limit, not applying for other credit cards within that period, etc. with a little time, and patience, you will be on the road to recovery. No easy ride after you've messed up, but it can be done.
- You may not want another card but without establishing a history of ontime payments, it will be hard to improve your score. No matter what, absolutely pay off any remaining debts as well as you can. That doesn't mean ignoring the power bill, but the sooner your debt shows zero, the better. Unfortunately, your past history will haunt you for awhile. While I don't think there's anything you can do to alter your credit report, you can check it for free once a year (at free credit report.com or something like that). I have a credit card with a feature that shows me update FICO score every month, and sends me an email alert if it changes (WAMU, formerly Providian). If I were you, I would pay every bill on time and assume that things will be tight in the future. Even if they aren't and things are looking good, you should still put money into savings as much as possible. If you need a credit card for online purchases, etc, then you would at least qualify for a secured credit card (which means you put up the money first). Realize that it will take time for your credit score to change, and be patient and diligent about saving in the meantime. I had a horrific credit score in college (I signed up for credit cards because they gave me a free tshirt...how dumb was I?), but now many years later I have a FICO of over 800. It didn't happen overnight and it took some sacrificing, but I don't fear the phone calls from creditors anymore. Good luck
- A credit score is really the sum of 3 things. 1. The amount of credit that you already have. 2. Whether you make payments on time. 3. And how much money you owe. Now that you can,It is important to pay your bills on time. Pay a little ahead of time and a little more than is required. Make sure you meet the minimum monthly payment due. If possible pay a little more even if it is just a few dollars. This helps, as it whittles away on what is being charged in interest on the remaining balance. Using a credit card but paying on it or paying off each month may be the best thing to do to build your credit back up. You can ask for a free credit report each year from the 3 main credit reporting companies. There is a lot of good information on fixing credit score at the two sites below
- If you don't want another credit card, then you shouldn't worry about your credit score. You have charge-offs on your credit. The ONLY repair for that is time, so that your "bad credit history" is no longer your "recent credit history" "I am told it hurts to check too often". That's mis-information. It's simply not true. Credit inquiry - When someone checks your credit report. If you have a lot of inquiries from lenders, that could mean that you're trying to get a lot of loans and you're over your head. That may hurt your score. If you check, it's not going to hurt your score (I check mine once every 2-3 months, and my peeking doesn't show up as an inquiry.) To 'secure' a loan - Getting a loan by putting up collateral, such as your house. If you default on a secured loan, the lender gets the collateral (for a car, that's called a 'repo', and for a house, that's called a 'foreclosure') To 'secure' a credit card - The collateral in this case is cash. You put up $500 cash, and you get a credit card with a $500 limit. The cash in the bank account is still yours, and collects 1-2% interest, but you can't withdraw it while you still have the credit card. And the credit card charges 18-30% interest. I sense a bigger problem: You and your husband are still talking about "my husband's money" or "my credit cards" The two of you should be on the same page, and agreeing on a monthly budget.
- providian bank is good for people with bad credit.,try them first.
- First of all, checking your own credit report or scores does not affect your score. In fact, checking it regularly is recommended to fend off any identity theft. What hurts the score is applying for credit! Applying for one card might cost you a couple of points. If they turn you down, so will everyone else so don't keep applying or your score will tank. You could check out the many secured credit cards, but beware of the many "fees" that eat your money up. I hear Orchard Bank has a good one. They report to the credit reporting agencies! You could also get some one who trusts you to cosign for a small loan. Pay it back on time every time and it will help you a lot. Once someone is in this position, it's hard to get out of it. But with determination you can get back on track. Read this helpful educational page from FICO. http://www.myfico.com/creditEducation/
* Some answers may have been provided by Yahoo! Answers.