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I have a credit score in the mid 500’s. Obviously this is not good. I didn’t pay some bills on time in college, and they are reflected on my credit score now. Is there anything i can do about these negative reports?

5 Thoughts on How can I begin to fix my credit?
  1. Reply
    August 19, 2011 at 9:40 pm

    start paying your bills on time from now on. nothing you can do about the past.

  2. Reply
    david a
    August 19, 2011 at 9:55 pm

    To Repair credit score
    Your credit score is based mostly on:

    1. Length of credit history
    2. Payment history.
    3. Ratio of credit used to available credit.
    4. Number of credit inquiries you authorized.

    If you cancel your card, you’ll be hurting your credit ratio. (#3).

    You want to deliberately keep your oldest credit card open, even if you never use it.

    You want to always pay the minimums of each loan on time every month.

    You want to keep your available credit high, but actually only have balances equalinig 25% or less.

    You want to keep your credit inquiries to a minimum. Try for no more than 3 or 4 per year for any type of loans.

    You do these things and your credit score will quickly soar into the 700s.


  3. Reply
    August 19, 2011 at 10:20 pm

    I would track down those old bills and pay them off ,if you haven’t already down so ( they’ll keep haunting your credit report until you do). then apply for a credit card use it wisely and pay it off in Full every single month. i would also consider financing a car instead of buying it outright.

  4. Reply
    August 19, 2011 at 10:28 pm

    You could try debt consolidation, and try to get a lower interest rate. Then pay when you get the bill. Don’t charge anything unless it’s an Emergency, And cut down on your general buying, use the money to pay off some bills. It’s going to take awhile anyway, you have to prove that your going to be paying you bills on time. And if you have several credit cards , save only the one with the lowest interest, and cut the others up and cancel them.

  5. Reply
    August 19, 2011 at 10:50 pm

    Some time back the financial world switched to a predominant FICO scoring system (i.e. your credit score) and that is the major determining factor in what rates of interest and amounts of credit you can get.

    First off, do not go after one of these “We fix your credit” companies. These are typically scams in my opinion. The only way to get your score up is over time by paying your bills and managing your credit.

    Even after 12 years reviewing credit and making loan decisions in the mortgage industry, nobody (including the credit bureau companies) have been able to accurately describe how to get a particular score. The best I can understand is that it is based on several factors:
    1. How many times you are late: Every time you are reported late on your credit your score drops.
    2. Time since last late payment: A late payment last month will have more effect on your score than a late payment six years ago.
    3. Your percentage of credit available to amount of credit used (say you have a credit card with $ 1000 as a high credit and you have a balance of $ 500; you have a 50% usage of available credit). The lower the percentage the better for you, this shows that you can manage credit.

    Bankruptcies and foreclosures stay on your credit for 7 to 10 years and are a major ding.

    So, to get your score up…
    1. Pay your bills on time.
    2. Keep a low ratio of credit to available credit.
    3. Use your credit but don’t abuse it. My in-laws quit using credit cards for about 10 years due to the lack of needing to buy any major purchases. They then went to Sears to buy a new refrigerator and were turned down for credit because they hadn’t borrowed any money in such a long time and had no recent track record.
    4. If you still have creditors that you owe money too that are still reporting to the bureau, pay them off. Either pay in full or contact them to discuss a settlement of your account. Sometimes they will take a partial payment to close the account. These companies don’t like losing money and many will continue to update your credit as past due in an effort to affect your credit.

    You can wreck your credit overnight, but it takes time to rebuild the damage. Keep plugging away.

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