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The Credit Deamon
The Credit Deamon / Career / 9:08 AM - Thursday August 07, 2008
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(Female, 29-35) asked:


This question goes out to all and only those that really know anything about this, really - PLEASE. I know you mean well but I need solid advise and answers. OK - here goes.......

First off - First to admit - I am a dummy!! Class A so don't rub it in....

I ruined my credit!!! Badly!!! And, know a light bulb went off, followed by a huge bell ring and it said - Hey stupid ur getting old.... fix this!!

So now I am trying. I need help to figure out how to do this. The first thing I did is that I requested a copy of my credit report from all 3 agencies and I got a credit score. I am working on 2 items that are on there that are in collections trying to get them out of there.

Now for the question - How do i raise my credit score. How do i improve my credit rating. I have heard this can be done..... does anyone out here know how to do that????


PLEASE help!! I want to buy a home in 2 years..... so I have exactly that to fix this.....

Thank you :)))





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A Life of the Party (Female, Atlanta, 29-35, Other Profession) answered:

Screenname: sassafras


First, you are not a dummy and don't play the blame game. It is what it is and you see that so now you can move forward.

First thing I would do is go and get the Suze Orman book "Women and Money" it will help you way down the road as well as with this. Her website also has great ways of fixing and improving your credit.

The best way to improve it on your own is pay off debt, don't CANCEL credit cards but pay them off, pay all your bills ON TIME. With constant attention to this you will see a MAJOR improvement in 6 months and in a year you should be MUCH better. When you are ready to buy a house in two years you should be fine.

Good luck!!

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A Thinker (Female, Washington, DC, 22-25, Financial / Banking) answered:


I am in the same boat w/ you... I have cred. cards in collection as we speak. I am trying to get a loan (w/ a co-signer) to pay everything off and have one lowered monthly payment. The best thing you can do to fix your credit, is obviously pay anything off that is in collection... then, if you have open lines of credit (cred. cards), do not let the balance on those acccounts get past 50% of what your credit line is, for ex., if you have a credit line of $500... try not to let it exceed a balance of $20 (1/2 your cred. limit) and of course, if you do, pay it off immediately, don't let a balance of over 50% of your credit limit just sit. Another thing that gets your credit score up quickly is continuing to pay EVERYTHING on time each month... you can even pay minimum payment, but just make sure it is ALWAYS on time... whether it be a cred. card payment, auto loan payment, or cell phone bill payment.
Also, make sure your hosp. bills, utility bills and such get paid on time... or at least work out a payment plan so that those don't ever go to collection.

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A Thinker (Female, Washington, DC, 22-25, Financial / Banking) answered:


Sorry, I meant to say "Try not to let it exceed a balance of $250" for a $500 cred. limit...

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A Thinker (Female, Kansas City, 46-55, Self-Employed) answered:

Screenname: sunlady1120


Pay your bills on time. Pay the smallest ones off first and then close those accounts. It's imperative to pay on time.
That's the best advice I can give you. Sell anything you don't need and use the money to pay down your debt. Don't buy anything you don't absolutely have to have...it's amazing how much money people would have if they cut out the Starbuck's mocha javas and designer clothes. Use what you have, recycle things and stay out of the mall. Use the money you save to pay down debt...and once you pay it down, don't see your debtlessness as a reason to go shopping. View debtlessness as freedom.
And, you can probably find a house that has an assumable loan, which would mean you wouldn't have to have good credit or a down payment to get a house. FHA and VA loans are assumable. This is probably even a great market for finding a buyer willing to let you assume their loan to stay out of foreclosure. Having a house will allow you to itemize your deductions on your taxes...which will save tax dollars...which will give you more dollars to pay down your debt.
:)
Have a great day.

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A Mr. Married Guy (Male, 29-35, Self-Employed) answered:


To raise your credit score the first thing is to start paying everythig on time. If you can't make all f your minimum payments on time, call your lenders see if they will consolidate debt or renegotiate the terms of your debt.

Without knowing specifics. If you have several credit cards, call the lenders and ask if they will waive fees and give you a lower fixed interest rate if you close the account and make minimum monthly payments. This will almost always lower your monthly payment as well as pay off the debt quicker.

You always want to keep one credit card open. The worst thing is to ruin your credit score and close all debt accounts. No one will ive you credit and then in two years you only have poor credit history. By keeping one revolving line open and paying it timely you show your not as bad a credit isk as your score becuase you have a 2 year good history with the open credit line.

The second thing after making minimum payments timely every month is to look at how to pay things down. People say pay down your highest inerest rate first. This maked financial sese because you will pay less over the long term, but it is not the best advise for improving your credit score. You will get more points added to your credit score every month you credit line is less than half the available balance. For example a credit card with a $1,000 limit if paying the minimum each month on time your credit score will increase, but if you can bring it down to $499 (less than 1/2 the limit) your credit score will raise faster.

So look at your lower limit lines and get them below 1/2 faster than making extra payments elsewhere. Again this is to improve your credit score, not the best financial advise.

Without specifics I could go forever, if your interested contact me back.

This is anonymous because I don't want everyone here to think I'm a good guy, right now they all think I'm a heartless louse.

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A Thinker (Female, 36-45, Consulting) answered:

Screenname: enlightenment


This is a tough thing to do but it can be done.

First you must assess all your avenues of credit...

1- Utilities - Do you pay your bills on time and in full when they are due?

If, YES, then continue to do so.
If, NO, Start!!!!!!!!

2- Do you have credit card debt? For example you do or don't have credit card(s)and the balance is zero ($0.00)

If you do, determine who you owe money to and refer to #1
above.

If you don't, put your credit card(s) in a drawer and don't
use it (them)

Don't accept any more credit card offers; if they come in
mail.

Do NOT accept any loans; including PayDay Loans.

3- Do you have student loans that you are paying off? (See #2).

4- Get a letter from all creditors including Landlord, mortgage company, automobile loan, bank, utilities companies indicating that you are in good standing as you work through #1, 2 and 3 if applicable.

5- Buy only what you need and pay for it in cash.

6- Recycle - clothes, shoes, furniture, etc. where you can by sprucing them up, mix and match and buying sales and/or discounted items if and only when you need them.

7- Clean House = Donate (give to charity) things (in good condition or no longer use) you don't need -- This is a tax write off. Or, have a garage sale and use the money to pay off a bill/debt.

8- As you pay off a huge debt, by reaching milestones in this project, request a letter to indicate your status. This also must be kept on file.

Keep me posted and let me know if you run into any issues, I will try to provide you with information and/or resources to move the process along.

Remember, this is not going to be overnight, but a work in process. Good luck!


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A Trendsetter (Female, 29-35, Administrative) answered:

Screenname: divatoonami


Well you got the copies of your report....that is the best and first step. Now, if those collections are the only two items that are affecting your credit, then you are better than you thought.....just pay them off...once it shows that the collection is PAID, your score will increase...it can take up to 6months to report current. Do not continue to pull your report. Do not apply for any other credit...do not have merchants run any inquiries either....in one year (from time you pay off collections) request your three reports again (it will be free again) and see what your report says then.
I raised my husbands score 100 and in about 6months. He had some medical collections and some old accounts with his ex wife that she absolutely refused.

Make sure that you are current on all of your other accounts...do not use your credit cards much...for a maxed out high balance will hurt you as well.

You can do it! If the collection amount is too big...maybe you can borrow the money from someone...family or friend? The quicker that collection is paid...the better for you!

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