What is the best solution to repair your credit score?
I have a low credit score. do i need to hire someone to reapair it, and who? wanting to try and buy a house in less than a year and i want to have a decent credit score.
Public Comments
- Clean-up all monies owed.
- Take out a credit card and pay it off on time every month! Here is a great site on building credit: http://www.creditinfocenter.com/rebuild/restore_credt.shtml Building a great credit score takes about a year. Some hired companies promise a higher score in 2 weeks... this is not true! Creditors want to see how you handle debt over a period of time. Check the site... it will help you get started!
- Just follow the 3 easy steps below to improve your credit score. 1)Pay off all debts in collections 2)Take out one or two unsecured or secured credit cards 3)Make your monthly payments on time There is nothing a credit repair company can do that you can't. Good Luck
- Many things can be done to improve your credit rating.... especially if you're planning a year in advance! Check your credit report first and see what derogatory entries might be there. It can take several months for derogatory items to be removed from your report... The Free Credit Report site is a great place to start: https://www.annualcreditreport.com/cra/index.jsp (Please note: this is Not the one you see on TV... that one charges for additional services... this is the Federally Mandated FREE Credit report site... I've used it myself, it is Free :)) After removing derogatory entries, the only other options are to be sure to pay On Time. Keep your balances low... Pay more than Minimum! If you have a big ticket item you wish to purchase, pay it down quickly. If you have several active credit cards... consolidate your balances on the lowest interest card(s). The more "open references" in your credit history, the more Risk the creditors perceive. If you request a credit line increase on your lowest rate card and tell them it is with the intention of closing your higher rate cards, they should give you a good deal. Here's a link to an ABC News report about lowering your credit card interest rates. It should help you understand how to deal with the credit card companies... and you might use it to save some money on your own cards, too :) http://www.abcactionnews.com/news/local/story.aspx?content_id=0f86f45a-2ac4-4977-b982-6a68f4027e74 Be sure to close out accounts that you don't need... an account that is closed at the card holder's request is a plus - shows you're acting responsibly :) Your credit rating won't change overnight... but it will change over Time if you work at it. Good Luck!
- don't spend more than you have.
- Here are some step by step ways to repair your credit score: http://www.debt-loan-refinance-mortgage-credit.com/category/Step-by-Step-Credit-Repair-Guide.html
- when my credit got messed up (thanks to my ex) I opened 3 small (300-500) credit cards with capital one. Capital one reports every month and let me tell you, this REALLY helped me repair it quickly. Of course the obvious, carry no balance and never be late helps too!
- When you're trying to rebuild your credit score it's important to get a comprehensive view of what is actually affecting it... Your Credit Score is calculated with the following breakdown: 35% - Payment History 30% - Credit to Debt Ratio 15% - Credit History 10% - New Credit 10% - Credit Types in Use If you excel in one area and lack in another, only fixing the areas which you lack are going to improve your score. I've got a lot of information on my blog about credit scores, and I get a lot of questions so feel free to check out any of my posts on millionster.com; I believe my articles here address many concerns most people have but if they don't and you still have any specific questions feel free to leave a comment and I'll reply. How Can I Increase My Credit Score http://millionster.com/articles/debt/ask-1mil-how-can-i-increase-my-credit-score/ and 10-Ways to Boost Your FICO Score http://millionster.com/articles/debt/increase-fico-credit-score/ Also be sure to check out the promotional links I've listed here to help you get a better picture of your creditworthiness: MyFico's Full Credit Report http://millionster.com/go/myfico Suze Orman's Credit Report Repair Kit http://millionster.com/go/suzekit 30-day Trial of Credit Score Tracker with Free MyFico Score http://millionster.com/go/fico30
