Question about credit history?
After you have paid off your dept. How long after will you have good credit if you continue to pay everything on time? ( Please be specific on years.) Also were in collection for 3 things but they all are paid off now. Once you get good credit, will landlords not allow you to stay because of your credit history? If yes, could explaining that you were learning the values of a dollar during that time convince them to let you stay? If no, is it all based on your credit score?
Public Comments
- Your credit has little to do with the landlord. If you are already renting, just pay your rent on time. It takes 7 years for negatives to fall off your credit report. But your credit should improve with a three year on time payment history.
- Unfortunately not paying Your bills on time, is like being in a bad knife fight. You may win the fight, but will have some nasty scars later, this will always be on Your credit history. The good news is, people even lenders are more forgiving today than they were years ago. But keep in mind that's why they call it "credit history" its Your ability to pay debt on time. Almost anyone, and I mean anyone, can check Your credit history easily. Convincing someone of Your ability to pay debt can depend on many factors, e.g. most recent credit history, your present job situation, to how well You sell Yourself to be able to pay Your debt. But don't give up, the further away You distance Yourself from past indiscretions the better off You will be.
- If you have paid off all your debt you're in a good spot. The things that are going to hit your credibility are the collections. Collections can stay on your credit file for quite a while if not indefinitely. Especially medical bills. When I pull your credit file I'm going to see if you have had anything collections activity in the last two years. Even if you paid them off. Then I'm going to look and see if you have late payments. Then I'm going to look at your longest ongoing account that's in good standing. If I'm a landlord, I'm not to worried about anything but overall debt to income ratio. If you provide me a viewing of your report, minus your personal information such as social security number etc. and show me that the obligations have been paid, I'm going to more apt to lease to you. Now the fastest way to build credit is with a credit card and loans. Credit history and length of history is important. If you have a credit card, pay it off on time every month in full. Always keep your oldest card, this is where you'll get your length. Next take out secured loans for at least 1k and pay them back at a minimum of 7 months. The bank will have no legal obligation to report such loans if less than 1k or paying on them less than 6 months. If you can do this at two banks at the same time, you'll credit will be significantly improved within 1 year. That's the very fastest way. Good luck to you
