How to fix credit score?
I ruined my credit history by missing the payments, going over credit limit and paying late. 
I cut up all the cards and trying to pay off the cards. I already called the companies to lower my interest. What else can I do to get my score up again? How long does it take to make the credit history to be in great shape? Please help. Thank you.
March 15th, 2010 at 4:50 am
Hi.
This site is well recommended for bad credit repair:
http://fype.com/badcredit
March 15th, 2010 at 5:22 am
The best thing to do is to pay of any delinquent debts and continue paying on time every month.
Eventually your score will go up.
Here’s the website to FICO.
http://www.myfico.com/
There is a lot of good information there that tells you what’s in your score, how bad credit affects it and what to do to increase your score.
March 15th, 2010 at 7:00 am
It will take 7 years for the negatives to fall off your credit report. However, your score should improve after 2 years of consistent on time payment. The older the negatives, the less impact they will have on your score.
March 15th, 2010 at 8:35 am
There’s not a lot you can do but wait it out. Put some time and distance from you and the “bad time.” Every year that you make payments on time, etc. is another year of “good behavior” proving that you are responsible.
Make the payments and get the debt paid off. Unfortunately since you cancelled the cards the companies may choose NOT to report the payments to the bureaus, as they pay a fee to list items on credit reports and they sometimes won’t do that if they don’t see you as potential income for them (in other words you’re not a viable customer).
The guy below me recommends myfico.com. This is a good website for credit information.
Pay your bills on time each month and pull your reports every quarter to make sure that payments are being reflected on it.
Good luck to you! It usually takes about 12 months to prove yourself again and see a noticeable gain in your credit score. But don’t despair! Just keep plugging along!
March 15th, 2010 at 9:46 am
Not too sure,but i know it takes 6 years for the bank to stop chasing you,if you can keep clear from them that long,they write off the debt.
Mortgages i think its 12 years then they write it off.
I heard this from people who have done the avoiding thing,not myself,as scared to death of credit,if i cant afford it i cant have it.
They right off debt and you can then get another mortgage with another company,as if the debt is written off it cant be on your record.
I guess your going right way by not using cards,but some companies will try to entice you with the lets pay your loans thing,and they say you will be out of debt in x number of years.
But really your taking on more debt,as they aren’t charities and don’t care about you,they just want you for money,and if you get in debt with them they make even more money,so steer clear of consolidating companies.
By the way the banks may be bullying you,but they make money out of your debt by charging you and they may sell the debt on then you’ll get debt collectors at your door,
Good luck,i hope you get through this obviously tough time.
We sadly live in a society that wants stuff today,and don’t save for it,and credit is so easy to get so hard to get rid of.
I would never have a credit card,or store card,i use cash and a cheque book,and if that’s not good enough for shops they can go hang lol.
March 15th, 2010 at 11:11 am
Many factors are missing to giving you the ideal answer. If you are young you have plenty of time to repair the damage. Cutting up all your cards was a good move (if you have self control problems) as long as you did not close out all your accounts. Part of your credit score is ascertained by how much credit you have available and the percentage of said credit you are using. When you called the companies did you agree to a repayment plan? If so follow up the phone calls with letters spelling out your repayment schedule. Remember the minimum payment on credit cards pays a minute amount, if any of the principal you owe mostly just interest, so if you owe $5,000 and pay just the minimum payment it will be 15-20 years before that balance is paid off. Do not ignore any creditor, send them all something no matter how small as it goes to “making an attempt to pay”. Worst case scenario it takes 7 years or so for a bankruptcy to be removed from your credit history. How about a “secured Visa/Master Card”. It should be easy to get and your credit limit is the amount you have on deposit with the issuing bank. That will help you reestablish your credit. Secondly I would get a store credit card at a local retailer. Some place where you can make small purchases on the card and pay them off in full when billed. So payments are not late remit payment as soon as you receive the bill/statement. So if you need say a coffee maker. Use your store card and charge the $25 or so on the card and pay it in full as soon as you receive the bill. Need to change your oil….. same thing buy the 5 quarts of oil and filter and charge it to the store card. After several months of making small (money wise) purchases each and every month and oppaying them off…. then buy something a bit more expensive. Perhaps $150 or so that you can pay off within 3-4 months. After doing this it should raise your crdit score as you have demonstrated the ability to control your spending, pay off credit debt monthly, and then the ability to pay off a larger purchase over a period of time. Ignore the desire to take the credit card offers. When they come in the mail put them through the shredder immediately. Mostly time going by without negatives appearing on your credit report will help to restore your credit to pre insanity days. Best of luck and remember… just because it is offered you do not have to take it.