Q&A: What is the best way to rebuild your credit?
Question by 1 Rocket: What is the best way to rebuild your credit?
I see those ” I can fix your credit” signs on phone polls and tv ads is it really that easy? What about if you don’t have ten or twenty thousand dollars worth of debt? Between myself and wife there is about six thousand, what do you pay first and what does not need immedate attention?
Best answer:
Answer by party planning, atlanta
If you get a credit card, keep it way below maximum credit line, pay regularly and never go over, then this helps your credit immensely. Also, any line of credit over 300 dollars that you do well with adds points after three months
What do you think? Answer below!
Make sure you are paying any revolving credit (car loans, credit cards, ect) on time every time. Get the mind set, that if the payment is not early it is late and you will be okay.
Take a look at your credit report and find all the negative information.
You really cant do anything about late payments, but you can try disputing as “never late”.
All the collections, charge offs, etc.. need to be disputed as “not mine” only. Some will fall, others will stay.
After the disputing process is complete. Negotiate with the creditors to pay the debts owed. The only way you need to pay is if the agree to remove the negative entries from your credit report. You need this in writing. If they say they will, pay as agreed. If they refuse to remove the entry or say they will, but will not put it in writing, forget about the debts and let time remove them from your credit report.
– Important –
– Only commit to pay what you can pay in full. Collectors will not take partial payment when you are demanding removal of the negative entries.
– Never communicate with collectors by phone. All correspondence needs to be in writing and all mail needs to be sent certified return receipt.
– Remember that a collection is a collection. Having it paid does nothing to help you, it hurts your score by giving a new date of activity.
– Do not make partial payments. This starts the date of last activity and destroys any chance of getting the item removed. It also damages your credit score.
Finally, get a credit card and start showing some positive credit on your credit report. Charge normal purchases (gas, groceries, etc.. ) and pay the bill in full every month. This helps increase your credit score and shows financial responsibity.
There is no way to erase bad credit from your credit report, but you can improve it. You can start by pulling your credit report form all three credit agencies which are Experian, Equifax, and TransUnion. Then, follow these simple guidelines to help restore and improve your credit score.
First, make sure all the information on your credit report is accurate.
Second, try to pay off all or any accounts that are currently in collections or make payment arrangements with the creditor to pay off the balance monthly.
Third, any credit card that is over 50% of the available credit line should be paid down to under half of your total credit line. Your credit score is lowered when your available balance is over 50% of your total credit line.
Finally, if you have bad or no credit and have no credit cards try to obtain two credit cards and make sure all of your monthly payments are made on time. This will help increase your credit score. If you cannot be approved for a unsecured credit card, obtain a secured credit card.
Repairing your credit and improving your credit score is a slow process that takes time. Just be patient and follow these steps and you should be on the road to better credit!