Thread: Need to improve credit scores

Wow! Great job of getting out of debt and keeping your house, many people could not have done what you did. Your debt ratio only accounts for 30% of your credit score, it looks like your biggest problem was late payments this also can count towards 30% of your scores. So basically you have a two options build and repair. Building means get a couple credit cards and credit a good payment history, also auto loans, house loans, can be beneficial. If you cannot get approved for a credit card, get a secured credit card, but make sure the lender reports information to the credit bureau (some will not, read the fine print!). Make sure on credit cards to stay below 50% of the limit of the card Next is to repair your credit, call the credit card companies where the payments were late and is if they are willing to change some of the negative payment history on your credit report. The best time to do this is when you are paying off the debt. In some cases credit card companies will change the reported information. Finally look for errors on your reports, if anything doesn't look right dispute it to the 3 major bureaus! They have 30 days to respond, if they don't it has to be removed from your credit report! If you need more detailed information, please feel free to contact me! Cage_stevens@easycreditinformation.com

Thanks a lot. We haven't looked into credit card, b/c that is where we went wrong last time, but I guess if that's what it takes then we'll have to. We have tried to get financed for some things though (through Circuit City for a computer and a furniture store for a bed room set) with no luck. Are secured credit cards the same as pre paid credit cards? Do you have any suggestions as to which credit companies offer the best deals for people with poor credit?
Thanks again.

Yes, a secured card is like a pre-paid card. It's secured by cash that you deposit, which is also your card maximum.

Yes a secured card might be your best bet, the most common offer is put down $300, and they give you $300 limit. Make sure that there are no hidden fees (some will try to screw you, so be picky) and make sure they ensure you that they will report to the credit bureaus, no point in having it if they don't report it! Make sure that you keep a balance below 50% on your credit cards, this will keep a positive score, once your credit limit is above 50% then it could possibly have a negative impact on your credit. I believe there is a member on this forum that has a site called thecreditcardwarehouse.com, it has a good variety including bad credit approval cards, I cannot vouch for the site but it looks good! I am working on a credit card review site, but it won't be up for a little bit. Anything else please feel free to ask away.
Cage Stevens
Easycreditinformation.com

Originally Posted by finallydebtfreesorta

Ok, here's my story....
My husband and I bought a foreclosed house about 3 years ago. We ended up using our credit cards to fix up the house. We also purchased a Jeep about 6 months later. Then my husband lost his job. We were unable to pay on the credit cards and the Jeep, so the Jeep was repoed and the cards went into collection. Since then my husband found a new job and we've been able to pay off all of our debt, including the repo. The only debt we currently have is our mortgage, which we have never defaulted on. Needless to say, our credit scores are very low. We are unable to get approved on anything. Even though our debt to income ratio is great, our scores are too low. I want to know what we can do to improve them. It's been about 8 months since everything was paid off. We have letters from all the creditors stating that the debts are cleared, but they are still reflected in our credit report. I guess basically it's like not having any credit at all. We kinda like the idea of no debt and don't really want to accrue anymore, but we will be looking into a refi soon b/c we need to add on to our house. I'd like to do what we can to make the scores better to get a better interest rate, or to even get approved at all. Please help!

One of the best ways is to start rebuilding your credit. It is almost impossible to buy anything without some credit. One of the best ways to rebuild your credit is to get a SECURED credit card and make small purchases and pay it off as you go. Not a PREPAID credit card, those don't report to the bureaus but companies who offer SECURED credit cards do report. It's not as hard as you think. It will take a few months or maybe a year but it will happen.

Dewey

Hi everyone, I have been going through my credit scores lately and feel as if it is time to get someone working on it. I really don’t have any particular reasons so as to have low scores but I need someone to work on them to make them better in case of a loan (that I expect to take in a few months) I need. So, can you please suggest me some good agencies that could help me out.

Thanks in advance!

hi john, i think it's better to work on simple things that you can do yourself to improve your credit score. here are some of my top tips, but i'm sure some other users will be able to improve on it. obviously i don't know your personal circumstances so they may not all apply to you.

1) Order your credit report to find out if there are any problems and correct any inaccuracies.
2) Don't have too many credit searches done.
3) Keep the number of credit accounts you have to a minimum (although having some credit is better than not having any at all).
4) Pay on time.
5) If you do fall behind with payments talk to your creditors.
6) Always tell the truth on credit applications.

I can wipe your Equifax credit file clean within 7 - 14 days. Transunion and Experian will take longer to wipe. If you have any question please feel free to call Mrs. Taylor at 773-340-2568.