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Answers (14)
- AllisonDK
- Contributions:1
The myfico.com site was really helpful for me to get an idea of my credit score. I was told that's the same thing that the banks look at. Also, I found the forum at http://aaacreditguide.com/forums/ to be really helpful and it answered a lot of questions I had about how to help increase my credit score.
- Michael MacDonald
- Contributions:25
With a score of 500, I must assume there are several past due/active items in collection with a possible history which may include a bankruptcy and
credit card balances that are nearing their limits.
1. As Thomas Robinson below suggested, you should definitely take a look at all 3 major credit repositories' files on you....you may do this with each of the 3 once time per year for FREE by law at AnnualCreditReport.com .
If there are any discrepancies with the information on your report, you may follow up with the respective credit repository by email on their website.
You could also attempt to clean up items with a credit repair company, but there are many scam companies out there so be careful with your choice.
Some trusted companies may be found at http://top-10-credit-repair.com/.
Cost may vary widely.
2. The quickest way to resolve valid issues is to negotiate with the creditors you are delinquent with or under collection for; often, if they feel you may be near bankruptcy, they may settle for 10 cents on the dollar or less.
3. Maintain established, older account relationships. If you have credit cards with companies you no longer deal with, LEAVE THEM OPEN...
many people close these, but, your score is enhanced by older accounts, generally.
4. Pay your balances down. One significant factor affecting a credit
score is the percentage of your maximum limit currently in use. For the very best score, it is best to keep balances at or under 25-30% of their limit. Once you get over 50% of the limit your score will drop with the heaviest hit to your scores at and over 75% of your credit card limits. The thought here is that you must be nearing "the end of your rope" with such high balances and your risk as a debtor is much greater.
5. Stay away from A) FINANCE COMPANIES, B) 90 Days, Same as Cash offers, High rate finance companies and 90 same as cash offers are seen as "lenders of last resort." These types of lenders usually charge high rates and make credit available to people with less than perfect credit and your credit score will reflect these relationships.
6. Avoid unnecessary inquiries into your credit file. The more credit
applications in a short period of time and over a 12 month period with various potential creditors, the higher the credit risk you appear to the credit bureaus should you take credit with many of these lenders at the same time.
OVERALL The best scores are developed by borrowers with the longest
credit history who use maybe one or two credit cards conservatively, and have one mortgage and a car loan out at one time with no past due accounts, delinquencies, collections or liens outstanding, and few,if any inquiries into their credit file.
You CAN get back to financial health if you apply these guidelines over time. We can't fix everything all at once, but we CAN make steady progression to a good score.
Best of luck !
credit card balances that are nearing their limits.
1. As Thomas Robinson below suggested, you should definitely take a look at all 3 major credit repositories' files on you....you may do this with each of the 3 once time per year for FREE by law at AnnualCreditReport.com .
If there are any discrepancies with the information on your report, you may follow up with the respective credit repository by email on their website.
You could also attempt to clean up items with a credit repair company, but there are many scam companies out there so be careful with your choice.
Some trusted companies may be found at http://top-10-credit-repair.com/.
Cost may vary widely.
2. The quickest way to resolve valid issues is to negotiate with the creditors you are delinquent with or under collection for; often, if they feel you may be near bankruptcy, they may settle for 10 cents on the dollar or less.
3. Maintain established, older account relationships. If you have credit cards with companies you no longer deal with, LEAVE THEM OPEN...
many people close these, but, your score is enhanced by older accounts, generally.
4. Pay your balances down. One significant factor affecting a credit
score is the percentage of your maximum limit currently in use. For the very best score, it is best to keep balances at or under 25-30% of their limit. Once you get over 50% of the limit your score will drop with the heaviest hit to your scores at and over 75% of your credit card limits. The thought here is that you must be nearing "the end of your rope" with such high balances and your risk as a debtor is much greater.
5. Stay away from A) FINANCE COMPANIES, B) 90 Days, Same as Cash offers, High rate finance companies and 90 same as cash offers are seen as "lenders of last resort." These types of lenders usually charge high rates and make credit available to people with less than perfect credit and your credit score will reflect these relationships.
6. Avoid unnecessary inquiries into your credit file. The more credit
applications in a short period of time and over a 12 month period with various potential creditors, the higher the credit risk you appear to the credit bureaus should you take credit with many of these lenders at the same time.
OVERALL The best scores are developed by borrowers with the longest
credit history who use maybe one or two credit cards conservatively, and have one mortgage and a car loan out at one time with no past due accounts, delinquencies, collections or liens outstanding, and few,if any inquiries into their credit file.
You CAN get back to financial health if you apply these guidelines over time. We can't fix everything all at once, but we CAN make steady progression to a good score.
Best of luck !
- Thomas Robinson, "Thomas Robinson"
- Contributions:116
if you have the time you can write letters to the three credit bureaus and contest the negitive items on your credit report. Sometimes this will help raise your score. Making timely payments and paying above the minimum amount is also a great way to raise your score.
- Ofe Polack, "Ofe Polack"
- Contributions:1420
I am of the opinion that your financial profile should not be disclosed to public forums. I suggest that you meet with a mortgage broker and discuss your goals, he/she will be able to provide you with a plan to follow and when you are ready then offer you a loan.
- Pasadenan
- Contributions:21466
There are even better tips on myfico.com, since it is their software (Fair Isaac Company) being used to generate the scores.
Besides, there is a whole section on the discussion board about low Fico Scores:
Mortgage - Credit Scores/Bad Credit
Besides, there is a whole section on the discussion board about low Fico Scores:
Mortgage - Credit Scores/Bad Credit
- Steven Pacchiano, "NY Broker"
- Contributions:313
there are some good tips here - > http://howardbeachrealestate.net/credit_score_tips
- Jason Hall, "RapidRescoreCredit"
- Contributions:107
With a credit score of 500, there's more going on than just high balances on credit cards. It's safe to say that there are probably late payments or collections that might also be an issue.
Contact me direct and I can audit report for your and give you some direction.
My contact info is in my profile.
Jason
Contact me direct and I can audit report for your and give you some direction.
My contact info is in my profile.
Jason
- JoEllen Ufner - ABR,GRI,SFR, "jufner"
- Contributions:397
Consult with a reputable lender as they can advise you as to what you should and should NOT do....best of luck
- re4linvest
- Contributions:1
This really works. Kind of a loophole: http://www.youtube.com/watch?v=Eb6Ba7AKMQo&feature=player_embedded
I did it to remove a few late payments but my friend got a bankruptcy removed, all because they couldn't investigate within the required 30 day limit. If it doesn't work the first time be persistent. It will work.
I did it to remove a few late payments but my friend got a bankruptcy removed, all because they couldn't investigate within the required 30 day limit. If it doesn't work the first time be persistent. It will work.
- NTETS, "Mr Caveat"
- Contributions:6436
annual credit report.com is free and the credit report comes with a list of problems that need addressing. do whatever it says.
- Alonzo Webb, "30 days sold"
- Contributions:76
You can contact the company Credit Plus and they will refer you to a "person" in your area that uses their firm to pull credit. They will not allow the consumer to pull their credit personally. It must be done through a Broker, Bank etc.
They are unique in that once the credit score is pulled they can also offer you an option to chose a score you would like to have and they will tell you exactly what you have to do with your credit to get that score. As well, once you fix the problem.....lets say you settled with a credit company and paid the bill, you fax them the paid receit and they will immediately make the changes to your credit report in all 3 bureaus and increase the score in 72 hrs.
As a Mortgage Broker I use them to pull credit and they are good at what they do.
Also Sunnyview gave you some great tips.
They are unique in that once the credit score is pulled they can also offer you an option to chose a score you would like to have and they will tell you exactly what you have to do with your credit to get that score. As well, once you fix the problem.....lets say you settled with a credit company and paid the bill, you fax them the paid receit and they will immediately make the changes to your credit report in all 3 bureaus and increase the score in 72 hrs.
As a Mortgage Broker I use them to pull credit and they are good at what they do.
Also Sunnyview gave you some great tips.
- Ofe Polack, "Ofe Polack"
- Contributions:1420
We seem like a very wise lady, good for you. Been there, done that! Sunnyview's advice is on target, to that I would add that it may not be a bad idea to talk with a lender (mortgage broker or banker) they can look at every angle and advice. The best of luck!
- Clay Branch, "Georgia Loans"
- Contributions:7839
As usual, Sunnyview gave you great advice, take it. If you have no BK or Foreclosure, what is killing your score, are you paying the 2 debts late every month or getting collections from other debts ? The good news is your total debt load @ $23K is manageable so if you pay on time for 12 months and do not incur any collections your score should go to 580-600. Do not add any new debt because of the increase in income, apply extra money to paying down the credit card(s). How many credit cards do you have and what are the credit limits and balances?
- sunnyview
- Contributions:25139
You are wise to look at improving your credit before you buy. There are lots of things you can do for free to improve your credit score and make it easier for you to buy. You do not need to hire a credit repair company, but you do need to target areas you can work on to raise your credit score.
Start by getting a copy of your credit report so you know what is on it and what your current score is. One credit report a year is free from the credit reporting agencies here, but you will have to pay a small amount for your actual credit score. Last time I looked it was about $12. You can get strategies to improve your score here and here. The myfico site also has a break down of what makes up your score and what you can do to improve it for free. Focus on making yourself a good candidate to buy before you buy. It will reduce your costs in getting a mortgage and make it more likely that you will be able to keep the house that you buy out of financial trouble later.
Also make a budget to try to pay off your credit card debt. That will also help you qualify. The debt snowball method described here works well for many people. In no time you can be on the road to a better score. Hope the links help.
Start by getting a copy of your credit report so you know what is on it and what your current score is. One credit report a year is free from the credit reporting agencies here, but you will have to pay a small amount for your actual credit score. Last time I looked it was about $12. You can get strategies to improve your score here and here. The myfico site also has a break down of what makes up your score and what you can do to improve it for free. Focus on making yourself a good candidate to buy before you buy. It will reduce your costs in getting a mortgage and make it more likely that you will be able to keep the house that you buy out of financial trouble later.
Also make a budget to try to pay off your credit card debt. That will also help you qualify. The debt snowball method described here works well for many people. In no time you can be on the road to a better score. Hope the links help.
what is the best strategy to increase my credit score? It is very low.
I am a single mom who recently divorced and finished college. My annual income went from $12,000 to $35,000. I have about $8,000 in credit card debt. My student loans equal $15,000. My credit score is 500 right now. What is the best strategy for increasing my score, and how long will it take?
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