Credit repair?!?
I need some help. My credit score is about 550 right now and in one year I'd like to buy a house and get it as high as possible. I've paid all my bills off and currently I have 1500.00us a month left over after all my bills are paid. I don't owe anyone anything. So, how can I improve my credit and make it to 700+ in about one year?
Public Comments
- It'll be difficult to make it that high within a year. It took me almost two years to get over 700 after I had some credit issues. Some positive things you can do are open a savings account at your bank or credit union and borrow against it. This will give you some positive references on your report. Dispute the negatives on your credit report. Some may drop off and help your score. If you have any good credit card accounts left keep a small balance going from month to month. If you pay them off every month the FICO scoring model has been known to ignore them. Good Luck Good Luck
- Check your credit report , If you have any open accounts with a zero balance, close them and don't open anymore in that year. Also check to see if you have any unresolved disputes on your credit report and have an investigation done, if you do. People don't realize some people just throw things on a credit report and you have no knowledge of them doing so.
- Can you apply for a new major credit card? I think that the only way to increase your score is by using credit. Just be very careful and pay your balance as soon as possible. Good Luck with your house hunting:)
- Having no debt will probably not significantly boost your credit score in a year. You actually need to incur debt and pay it off to really boost your credit score. The key is showing that you are capable of having a debt and making regular payments on time. You may want to take that extra monthly income and do some home improvements and pay them off over the next few months .. making regular ON TIME payments. This article lists 5 ways to boost your credit score (including the one I just mentioned) http://money.cnn.com/2005/09/21/pf/debt/credit_scores/index.htm
- I'd say that it is not how much you owe that affected your score, but the way you have been paying them back. In fact, having certain debt like mortgage and car loan will help increase your credit score, that is, if you always make payment on time. So it sounds like you have had a few late payment or other negative marks on your report, which unfortunately will stay there for up to 7 years (10 years for certain bankruptcy records). However, don't let this discourage you from rebuilding your credit, as their effects do wear off over time. If you have credit cards, use them responsibly. Don't use more than 35% of your credit limit, and mostly importantly, make sure you pay them off on time each month. At least pay the minimum due. If you don't have credit cards or don't qualify for one, start with a secured credit card. It requires a deposit but is a great way to show that you can manage your finances, and will soon qualify you for a regular card which is much better. But don't open too many new accounts this year, 1-2 max. Another good way to jump start your credit rebuilding process is to have someone add you as an authorized user to their account. Oh don't close your idle credit card accounts at this moment. It will just shorten your credit history and negatively affect your score. If you had late payments on that account, closing it won't help in anyway. Rebuilding credit is a time consuming process, but in the end you will fint it all worthwhile. Good luck!
- Here is a good free ebook. Lots of info.
