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 have 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
- making to 700 in one year is unlikely to happen, unfortunately. but, here goes: Apply for a loan from your bank, something with a very low interest rate preferrably right around $500 - $2000, with a 12 month term. Make sure you ask your bank to report your positive payment history each month, and if they can't, try a different bank. The positive payment history is what you need recorded to improve your credit. The money you get from the loan, immediately put it into a high interest yielding CD, or savings account, that preserves liquidity. Each month, deduct 1/10th of the original principal from your newly established savings account, and pay it as a payment towards the loan account. As each month goes by, your interest in the savings account will grow, though probably not quite as fast as the interest your'e being charged for your loan. That's ok, it's gonna cost you a few bucks to try to fast track your credit rebuilding. Keep in mind, you're paying your loan off in 11 months, not the 12 u signed up for. The savings account money will pay the first 10 payments, the 11th payment will be a combination of the interest accrued in the savings account, and some out of pocket capital. Provided your bank reports the payment history each month, you should see a jump in your score. Secondly, Do not cancel, or close credit accounts thinking that doing so will improve your credit. It's not always the case. Creditors like to see not only that you pay your bills on time, and are a responsible credit holder, but also that you are able to maintain a balance, which of course, earns them interest and fees. Pay more than the minimum, but try to not Zero out your accounts. Also, try to keep your total debt to credit ratio below 60%. That is, if you have a card with $1000 limit, and one with a %2500 limit, try not to go over $600 on the $1000 card, or $1500 of the $2500 card, the reason; Creditors like to see that you WANT Credit, but don't necessarily NEED it. Co-sign for someone who is absolutely trustworthy, when they are purchasing a new vehicle, recreational toy, such as boat, jet ski, etc, etc. Avoid cosigning on houses, as thats links you to the co-signor for a very long time, an could actually hurt your chances of being approved for your own home. And of course, be very careful and meticulous in checking your credit report often, and dispute any mistakes as soon as possible.
- A strict budget will help as well as a little help from a credit repair guy. Yes credit restoration works, you will be able to get advice on how to reestablish, repair, get the best rate, and find the best lender. if you have any questions let me know ryan@robertscreditgroup.com
- Just go to your personal Bank and get a Secure Credit Card or a Secure loan. Put down the minimum and go from there.
- DO NOT CREATE A LOAN ! This is especially true since you have paid off your bills. The solution to fixing your credit is NOT to create more credit. It is to repair what has already been done. The good news about bad credit is that it can be repaired. I am very sorry you are in this situation, I really am. However, I must admit, I am very pleased to hear the good news of having so much, 1500.00, at month end. That is impressive and gives you many alternatives to financing a house. Credit repair, while it is not an over night process, can be done. In addition, it can be done without a loan. Depending on your method of credit repair, your score will improve in no time. I know, I own both a collection agency and credit repair business. I don't have enough information about your situation, however, I do hear some positive things from you. You seem ready to resolve the problem, you are willing to listen to suggestions, you have money growing in the bank each month, your bills are paid off, AND you have over a year to mend the past record. You have no idea how far ahead of the pack you are! You have options. Feel free to email me to discuss them. Good luck.
- now you need to do good credit items. the number of good items. open accounts @ credit unions. deposit c/d's $500.00 is the smallest amounts 3-6 months get a secure loan on it. deposit back in saving account. they also have overdraft $200.00 charge never more than %50. pay off every month. good items go on point system balance out bad
- 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. A site I've used for info in the past ... http://debt.123thebest.info/credit_card.html Good Luck.
