In the last 8 years, my credit has been a disaster.i need to start rebuilding it. what are the best ways of do
Answer:
check out this web site:
http://www.crown.org
You need time, plain and simple and a good budget. You do NOT need to borrow in fact it's the last thing you need. Get your bills paid and keep paying them on time. Live on less than you make and start to save. Anyone who tells you to clean up your credit report by disputing true facts on it is tell you to commit FRAUD.
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get rid of all but 1 major credit card. use it only for emergencies. buy with cash or check. this makesyou think about what you are going to buy, do i REALLY need that? hit the thrift stores for clothes, and household stuff. only buy new when you can't find good used. use the money you save to make double payments on credit card bills to bring the principle down. its the interest that's killing you.
You need to ask yourself the fundamental question of why your credit has been so bad to begin with. Are you spending more than you make or are there other circumstances. There are a lot of techniques or strategies out there on how to repair credit, but if you don't change the cause of the problem, you will be back to where you started. Good luck.
first you need to pay off all of your debts that are giving you a poor credit rating.i would contact "debt solutions" and talk to them.they can help and make arrangements that will help you and your credit rating.
Start by getting a Free copy of your Credit Report, . Find it at -https://www.annualcreditreport.com/cra/i. they must provide it Free , once a year so don't get suckerd for a fee, they all like to do that. you can get a Report from all 3 of the Top agencies- Look over the Bad debt stuff, and get off there if you can, but start with at least one or two Companies, and keep it perfect, don't miss any payments, - and don't overload your self with credit.
Here are five simple tips that you can use to raise credit score.
1. Get a copy of your credit report
Obtaining a copy of your credit report is a good idea because if there is something on your report that is incorrect, you will raise credit score once it is removed. Make sure you contact the bureau immediately to remove any incorrect information.
Your credit report should come from the three major bureaus: Experian, Trans Union and Equifax. It's important to know that each service will give you a different credit score.
2. Pay Your Bills On Time
Your payment history makes up 35% of your total credit score. Your recent payment history will carry much more weight than what happened five years ago.
Missing just one months payment on anything can knock 50 to 100 points off of your credit score.
Paying your bills on time is a single best way to start rebuilding your credit rating and raise credit score for you.
3. Pay Down Your Debt
Your credit card issuer reports your outstanding balance once a month to the credit bureaus. It doesn't matter whether you pay off that balance a few days later or whether you carry it from month to month.
Most people don’t realize that credit bureaus don’t distinguish between those who carry a balance on their cards and those who don’t. So by charging less you can raise credit score even if you pay off your credit cards every month.
Lenders also like to see a lot of of room between the amount of debt on your credit cards and your total credit limits. So the more debt you pay off, the wider that gap and the better your credit score.
4. Don’t Close Old Accounts
In the past people were told to close old accounts they weren’t using. But with today's current scoring methods that could actually hurt your credit score.
Closing old or paid off credit accounts lowers the total credit available to you and makes any balances you have appear larger in credit score calculations. Closing your oldest accounts can actually shorten the length of your credit history and to a lender it makes you less credit worthy.
If you are trying to minimize identity theft and it's worth the peace of mind for you to close your old or paid off accounts, the good news is it will only lower you score a minimal amount. But just by keeping those old accounts open you can raise credit score for you.
5. Stay Out Of Bankruptcy
Bankruptcy is the single worst thing that will destroy your credit score. Bankruptcy will lower your credit score by 200 points or more and is very difficult to come back from.
Once your credit score falls below 620, any loan you get will be far more expensive. A bankruptcy on your credit record is reported for up to 10 years.
The reality of a bankruptcy is it will limit you to high-interest lenders that will squeeze out high interest rate payments from you for years.
It is better to get credit counseling to help you with your bills and avoid bankruptcy at all costs. By getting credit counseling instead of declaring bankruptcy you can raise credit score over a much shorter period of time.
If you are in hurry and want to build your credit fast, some financial expert compnies are doing this job, you can raise your score in 30 days as per there claim.
http://credit-repaire.blogspot.com/.
if you have old debts over 7 years old- don't pay them , because in most states 7 years is a limit for statue of limitation law. obtain your credit report and ask credit agencies to remove those old accounts from your report. open 2 new accounts , but keep balances below 40% of your credit limit. if you can't get in your own- ask family to sign you to their account and their credit payment history will show on your credit. if you have some negative accounts and they can't be removed from your credit report- start to pay them off, but only the youngest one. this will bring your credit score down for a while, but will help you in the longer run later. this is not overnight solution, but if you do what i recommend to you- your credit score will go up. if you need more help how to read your credit report- you can e-mail to me and i will help you .
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