My wife and I have been struggling lately with some credit card debt and some collection stuff. With the help of a family member who will loan us the money at a LOW interest rate we will be able to pay off ALL of our debt which is about 26k. Now my wife and I do not have a house yet and we pay 895 a month in rent( I think we need a cheaper place) Now granted we had some negative things on our credit report(mine use to be awesoeme, never late, no collections) now I have a few things just no credit card collections yet thank God. Now my wife does but she also does not have much debt either, more like 2 grand. I owe 24k to take care of EVERYTHING.
So my question is, after we pay off our debt what should we do to start improving our credit score?
I have 8 accounts that are considered lines of credit or credit card related accounts.
I was thinking of closing all my accounts except 2 cards.
1 with the lowest credit limit of 500 bucks
1 with the highest credit line and longest time open. 4500 credit limit
I also have a 474 car payment that I realized I can no do anything about unless i want to loose my butt on the deal. I owe too much for what the car is worth. Sucks
What would you do in order to raise your credit score and what things would you keep open or just close it all?? Say to heck with it and not have any credit available? Maybe except for 1 $ 500 dollar credit card for emergencies?
The person that wanted to help me was my Dad. I didnt come to him for help or anything, he just knew we were having issues and wanted to help. How could I refuse. Plus its more reason for me to pay it off quicker than anything. We are gonna sign a notarized document and all. Basically if i mess up Im outta his will and other consequences.
I agree not to worship to the almighty FICO score but we want to be able to buy a house at a reasonable cost without decent credit. I want to rebuild it just because I want to be able to buy whatever I want that i can afford in the future. Its embarrising getting declined when you absolutely may need it.