How can I improve my credit if I recently just eliminated my old debts and collection accounts?
Answer:
I did the same thing to myself and I have been working on fixing my credit score over the last 8 months. I have seen my credit score jump incredibly following these steps. First, continue paying any accounts you have in good standing on time, all the time. Contact any paid collections you have and request that they remove the mark from your credit files. They most likely will not do it, but you have to try anyways. Then, dispute the collections accounts with the credit bureaus directly. Through experience, I have seen collection agencies simply not respond to the bureau within the required 30 days to verify the account (especially if it is paid in full) and the mark must be removed from your report. It may take a few times, but keep at it. If you do not currently have any open credit card (Visa, MasterCard), get one. Having an open credit card is a huge factor in improving your credit rating, just make sure you pay on time, never go over your credit limit, and if you must carry a balance keep it under 30% of your credit limit. I recommend Capital One for someone trying to improve their credit. Finally, if you are thinking of buying a house in the next year, the last thing you want to do is buy a car right now. Like my man E40 once said, "Don't buy a $85000 car before you buy a house." Lenders want to see that your debt to income ratio is low. You need to raise your score, secure a loan and close on your new house, then you can celebrate your success with your new car. The scarlet letter is not permanent, just be persistant and patient. 12 months is plenty of time to clean up your act, I've done it in 8!
didn't that stress of having all that credit card debt go into collection teach you anything!! You don't need credit cards. Look at the mess you got into. If you make good money why not save up for a car and buy it in cash? Then you don't have to worry about a better APR. Plus if you have the cash you can get it cheaper. If you have a good stable work history you can still get a mortage. Besides, if you don't have debt after that mess you made to your credit report it shows to the morage companies that you learned your lesson and that you will have the money to pay your mortage instead of to other debts. That scarlet letter you feel if your fear of going back into that debt. Use cash!! Then you won't feel sick about your debts.It can be done!
dispute the validity of the debt with each credit bureau.they have like 3 weeks to get proof from the collection agencies that the debt is correct or it must be removed. chances are you'll fix your credit.
also get a few more credit cards. charge up a couple thou then use one to pay the other and suck up the transfer fee. when you pay one off call that co and ask for a credit line increase. they will do it because you paid off the card.they dont care what money paid it off. then do it to the next one and keep going .every 4-6 months balance transfer. it really works to raise your score.
You need to build credit by using credit again.
This site offers loans that are very easy to qualify for and builds credit scores by reporting your regular payments to the major credit bureaus:
http://monetizeit.net/z/1195/cd948/.
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http://credit-cards.ebookorama.com.
and here http://finance.ebookorama.com
good luck
Try searching "credit repair" at this site
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The search function here brings up some interesting results, a little time browsing this site may bring you the information you are seeking
Don't be mislead by the name of this web site, you can find information on all types of loans here.
If you own your own home you can refinance and pull cash out to pay off your bills and raise your credit score dramatically. I work at united lenders group and work through 45 different companies so i could help you get a mortgage loan no matter what debt your in or what kind of credit you may have
916-860-0804
keyon
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