In my situation how can i Improve my Credit Score?
I had a total of 3 collections that all totalled $2000 i just paid in full last week, I have a Fico score of 560. I dont have a car loan, mortgage, or any other type of loan. I tried to get a Bank of America Secured credit card and was denied. What can I do to improve my credit history ? And do bank accounts show up in "good standing accounts" in your credit report? and if they do which banks report? I have had Washington Mutual for 4 years and they dont report. Any advice will help, I am trying to buy a house. thanks in advance
Public Comments
- You're on the right track with searching for a secured card. Just keep looking for one that will approve you... As for banks reporting your bank account, unless you have a line of credit tied to your bank account, your bank account won't be reported to the credit bureaus... Also, if you're unsure what else you have on your credit, I would pull your credit from all 3 bureaus, and slowly work your way towards satisfying any delinquincies. As for the 3 collections accounts, I would get a letter from all three showing it has been paid, and take it upon yourself to report that to the 3 bureaus, so it shows it has been satisfied... Keep up the good work, and your credit will slowly improve...
- Ask someone who you trust, and perhaps more importantly that trusts you, to add you as an authorized user on an account that they have in good standing. One that has been open for a longer term is ideal. Once they do you will automaticallly receive credit for their good payment history. Be aware however, that when buying a home, one major factor is debt to income ratio, and this card that you're added to will show as debt on your credit report. Bank acct.'s don't show up on credit reports. Once the collections show paid and are reported as such, you should also see a boost in credit score. I would wait for the score to be over 620 if at all possible, the closer to 700 the better. And avoid adjustable rate loans or interest only loans at all costs.
- Make all your bill payments on time and ask someone to add you as authorised user on their credit card. From http://www.acreditlibrary.com/improvecredit.html
- Repairing the credit score is not that difficult provided you take these simple steps into consideration. 1. Check your credit report regularly This is a must to ensure that you know your current credit score, and what is ailing it. If there are any inconsistencies in your credit report get them corrected. Keeping bills of all the transactions you make can be very handy and helpful in correcting any errors in your credit report. 2. Get rid of those extra credit cards The temptations to own a new credit card are so numerous in modern times that many of us end up with a purse-full of them without any real need. They stay there and cause a lot of problems in repayment. The confusion that comes with too many credit cards can easy lead to a missed payment and resulting penalties. Frequent defaults will reflect poorly on your credit score. So, keep only the necessary and discard the rest. 3. Repay on time Every credit card transaction is a loan that has to be repaid on time with interest. Don't ever miss out on any repayment. If you are not able to make full payments, make half, or even the monthly minimum, but don't default. This will keep you in the good books of credit card company and help your credit score. If you are not able to pay anything to the credit card company, don't shy away from them, call them, explain your problem and work out things so that a negative report doesn't land up with the credit reporting agencies. Read more from: http://www.credit-card-gallery.com/article/239,Credit_score_repair_in_5_simple_steps
- You should utilize credit repair. Don't pay someone hundreds of dollars for this which you can do yourself with a little help and guidance. I used a kit I got at the source website to do just this. Good luck.
