How to improve my credit faster?
I want to get a condo when they ran my credit score I had 587 points my guy had 448 score but I make enough money to get it on my own the only thing I have in my credit is about $2500 in doctor bills on my credit so do I just pay it all off or call them to make a payment plan pay monthly I am thinking about 5 months the agent told me I just need 620 score which its like 33 points. I have no credit cards just hospital bills worth $2500
Public Comments
- Pay your bills, pay consistently. I had a lot of doctor's bills and a credit card that was seriously behind. I got a consolidation loan, and paid off everything, and my score went up. If debt is a problem, I'd suggest getting a small unsecured personal loan.
- pay off all bills to increase credit score read suzeorman.com for helpful financial ideas
- If you're talking about a collection, the sooner it is paid in full, the better--- but here's a good hint: Talk to the collection agency and tell them you can pay in full IF they will delete it from your credit report-- and get this in writing. Paying off a collection, believe it or not, doesn't help as much as one might hope-- deleting it is MUCH more effective. Also-- if you have credit cards, keep them under 45% of their limit-- if you are not there, pay them down...this could be enough, alone to boost your score.
- You have to make sure you pay on time for each credit card. And if you have more than one loan or credit... it'll be good to pay some of those off..;. But the only key is not to be late on any payments.... Try not to check your credit score all of the time as each time you do it... it'll pull it down a notch....
- read tips on debt/credit and much more on this site
- !!!!!!!!!!!!!!!!!!!!!!!I'm a mortgage broker and I'm surprised that your mortgage agent didn't tell you what I'm going to tell you!!!!!!!!!!!!!!!!!!!!! PAYOFF YOUR DOCtor's bill I bet it's a COLLECTIONS, right? Yes, payoff your collections then get a written later from your doctor or the company then bring that letter to your agent and have him send it over to his credit reporting service to do a credit score review which will have the credit beaurus update your credit report in a week or two instead of waiting 3 months
- First, regarding the mortgage for the condo, did you speak with a company that can do sub prime loans, loans for people with lower scores or not perfect credit? 620 has pretty much always been the industry standard that you tell borrowers will allow them to get an "A" loan but in the sub prime world the score can be as low as 500 with the amount of down payment and interest rate varying according to score. Also the medical collection would not have to be paid off to obtain a sub prime loan. You should already be able to buy the condo according to what you said in your post. Second, regarding raising your score, paying off the collection will of course help, but since you have no other credit it there is the very real possibility it will not raise your score to 620. To raise your score significantly you will need to have more active accounts, both installment and revolving, and the revolving accounts should have low balances with as high as possible limits. Unfortunately opening these accounts could have negative affects on your score initially. I would suggest looking into a sub prime loan if the lender you spoke with doesn't offer them. Feel free to contact me if you like.
- Get Store Charges (look for the ones that are 3rd party cards MC/VISA) Like Sears, Macy's. Once your pay your bills on time and in full, in about 6 months it will get alot better.
