Anyone ever have some pretty lousy credit? any experience on getting a good score back? I recently divorced, and before that had a loss of job and so my credit is looking pretty bad now and want to get it up in shape again in a year. Anyway Anyone with experience would be appreciated. I thought about those debt things on tv but im sure those have some hook on them so any help would be appreciated

 

as odd as it sounds, apply for credit cards and pay off the ones you have.
The more credit you have available vs the revolving debt the higher your rating.
Also, take a look at whats in your credit and challenge anything that is bringing your score down. Past that, Im not sure.

 

If you have any outstanding debts on your report, try to pay them off or contact the debtor and offer them a settlement if they will remove the bad comments. You may be surprised to find how willing they are to get some money once they have already written it off..
Also, make sure all paid off accounts are closed. If they are still shown as open, it will bring down your debt to income ratio and lower your score.

 

This used to work although I haven't used it in years. Get a copy of your credit report and see what it looks like. Challenge any items that are not yours. In fact challenge any bad items three months in a row. If you challenge a n item on your credit report the agency must take it off your credit until they report back. Filing several reports may confuse the company and they give up reporting your credit.

Also, 24 months of paying minimums on everything will get your credit score back to normal. Write a letter of explination about the divorce to be added to your credit report.

 

I too appreciate the information. My divorce is ongoing, seems like the energizer bunny.

The banks will not be much help till it's actually final. Tried to prequalify on my own income the other day and had one lady actually laugh. She did have the courtesy to explain she had just gone thru the same thing.

Win some you lose some, but in the end, I might just get to keep my truck and my belly button.

Thanks for the tips, even tho not meant for me.

Ed

 

lucky enough for me we wernt married long and might reconsile, its a very messy situation i wont even try to explain, So if the divorce is ever actually final ther ewont be a split of property. My problem comes into the cost of the divorce it self and that kickin my butt on the payin of the bills, amazing how long it took to build the good credit and how in a matter of a month i kicked its butt

 

The good news is time heals all wounds. You guys going through a divorce now is a good time for soul searching, not woman searching. BDon't replace a problem with another problem. Date at least 5 women before you settle down again. By then you'll know what you want.

 

that is very true, good advice

 

Closed accounts actually lower your score. I closed one account (home refi) and went from 714 to 700 next month to 688... made my way back up over 700, to 718, then refi'd my truck, closing the old account, and dropped to 711, then 707..

I watch mine closely as one of my credit cards provides a monthly report from fico, just seeing the dates and scores i can see a steady climb until an account was closed then drop.

Closed accounts show you dont keep a credit line long, and therfore not giving them enough interest.

Keep any and all accounts as long as possible!!

Another good thing is to pay a huge chunk towards a credit card thats held a good size balance for awhile.

 

Also it is better to not have card with over 50% of the credit limit used...

 

A third party debt consolidation service doesn't help your credit report, it actually hurts it, although it'll stop phone calls and can reduce payment size. It hurts it because they look at it as you not being able to manage your own money and they are usually ful of sttlements to reduce payment, instead of debts satisfied. Pay the minimum on everything and pick your smallest bill and pay everything you can on that one until it's satisfied, then do it again on the next larger bill. I wouldn't necessarily get a new card to build credit. Your goal should be to say sayanara to each of them and don't go back.