Question by Camden O: Fixing Credit Problems of the past…?
Fixing Credit Problems of the past…?
Is there a “real” way to fix your credit? Not some “fly by night” company, a real way to fix it. I understand that it might take a while and some money, but who, where and how?
And what does Fall off your report mean? Do things only stay on your credit report so long?? 99% of the negative things that I have are from like 10+ years ago. I was around 20 and made some stupid decisions.
So then if I fix my credit, how does that effect my score going up? And help with being eligible for anything?
Fast Credit Repair
Best answer:
Answer by cowboy
Don’t go to a debt agency!!! They eat too! I recomend calling who you owe and be firm!
Know better? Leave your own answer in the comments!
Please don’t go to a debt management agencies unless its free upfront costs and monthly charge to many times I have seen people pay out for these places and they either keep the money to save up for settlement cost or charge you an ass load of money. First what I would do is go to http://www.annualcreditreport.com this is site that you can get your credit report for free, you do not need a credit card, registration or an account number they will just ask questions found on your report, the only catch is you can only do it once a year for 3 of the major credit bureaus. Now attacking debt of course will not be easy what you want to do is create a budget net income, monthly expenses (rent, mortgage, gas, food, insurance, etc) a realistic budget that you can live off of. Then you want to list your monthly debt with the minimum payments and find how much you have left over. This will show what your financial situation if your negative then we need to make either lifestyle changes, or speak to creditors, if its positive than we need to form a power pay plan to pay off the creditors. If you are negative call each and every creditor and ask for there “hardship department” and explain them your situation you never want to settle this will charge off the credit card and then you would claim the difference as reportable income and pay taxes. The hardship department at each creditor should be able to place you on a fixed payment program and reduced interest rate amount this should help us in our budget. So with changes in our budget and we are positive what you want to do is start with the lowest balance creditor and work to pay them off first, after we payoff that creditor we add the monthly amount to the next and so on this will power pay your accounts done so you will save time, interest, and increase your credit score at the same time. Your credit score is broken up into 5 parts.
Payment history- 35% make your payments on time
Balance- 30% the more your towards to the limit of your card your score goes down keep your balances under 25% towards your score and should not have quite an impact (i.e $ 1,000 credit limit, $ 250.00 balance)
Length of history- 15% this takes the average account life so if you took out a credit card in 2000 and then just open another card this year your average life 4 years. While your paying off your debt please do not take out any new credit cards this affect this portion of score and further increase your debt with more credit
Inquiries- 10% applying for loans, credit cards, mortgages, etc affects your credit since were not opening new cards this shouldn’t affect you, but if you do make sure you apply to as many lenders as possible within a 14 day period this credit bureaus understand that people shop for the best rate so make sure you can advantage of that because it only hits your score once during that period
Types of credit 10%- they like to see that you have a variety of credit mortgage, installment loan, credit card, line of credit, etc but if you have several loans, and credit cards it looks bad.
Normal items stay on your credit report for 7 years bankruptcies, lines make take up to 10 years. If those negative items have been there for 10+ years use the http://www.annualcreditreport.com website and file to take it off if any of those accounts did not have anything negative that I would leave it there because that would only help your credit. Do those steps and you should be fine.