How can I quickly change my Credit from Terrible to decent???

[Girlmaturing]

I am a new member to this site, and I found it very helpful in a saving sense. But now I seek help in revitalizing my credit status. My credit score is right at a 468! I can't even get a unsecured credit card.

I guess your first question will be "How did it get so low?" Well I financed a car for the first time when I was 19. It was a fairly small loan, about 13,000. I had the car for approx 1 yr and a 1/2. I never made a late pymt until the last 6 months I had the car. I ended up getting behind 3 months, and they tacked on about 8 late payments notices, before it was repossed last year.

I also have about 5 unpaid hospital bills, and a delinquent account w/ Suntrust Bank. (approx 600.00)

I have spoke with a financial advisor when I tried getting another car, and he said that the repo killed me. He said I don't have a lot of revolving debt, no credit cards, and only a couple of collection accounts.

I just recently applied for a secured credit card, and submitted about $400.00. I have been making all my pymts on time, but still have a balance about 300.00 on it now. I Guess my biggest Question is HOW CAN I GET BACK A DECENT CREDIT SCORE????? I am trying so hard, and I just can seem to nab it! Someone please give me some advice!! I want to be able to buy a home within the next 3 years, and at the rate I am going it doesn't look like it will happen!

[terry1156]

Unfortunately, there is no quick, easy fix (and anyone that tells you that there is a quick fix is selling a scam). If you want to raise your credit score, make payments for all your outstanding bills on time and try to get them paid off. Settle the hospital bills and the bank account.

I would stay away for the credit cards all together. Once you have all your other debts paid, then you should be able to get an unsecured credit card.

Take it one step at a time and not try and do everything at once. That is how to improve your credit score.

[2moretrees]

Have you gotten your credit reports yet and make sure there is nothing wrong in them?

[Tree0164]

So you do owe anything right now? If so, I would focus on getting that paid off.

Stay away from credit cards right now altogether. Focus on paying off what you currently owe. And use cash not a secured credit card either.

There is a lot of motivation here. Learn how to cut your cost. Feel free to put down your budget each month and we can give you suggestions on what you owe.

Coming here is the first step.

[Girlmaturing]

The last time I looked at my credit report was about a month and a half ago when I went to go buy my car. The salesman was nice enough to take my credit report home. He also explained to me why I would have a probem buying a car w/ my credit the way it was. My new years resolution is to repair my credit and stay on top of any current bills I have. Please give me a quick suggestion on a way to start building my credit again.

[Girlmaturing]

Tree- you've made a great suggestion w/ posting my budget. But quite honestly I have never used a budget before, and really don't know how. Could you help?

[terry1156]

First, let me say that you are doing great. Taking the first step to want to improve your credit instead of deny it is one of the most difficult steps.

Theresa is correct. The first step that will improve your credit the most will be paying off the debts you currently have. As they disappear, your credit score will rise. Getting a credit card, even if secured, will not help your credit at the moment.

You should read <A HREF="http://www.savingadvice.com/forums/showthread.php?t=27">this article</A> if you hadn't already. It will give you a better idea how credit reports work.

Do you have any idea where your money is currently going? If not, sit down and just write your known expenses to start: rent, phone, utilities and anything else you pay on a regular basis. Once everyone knows those, we can start working on the other areas where you are spending. A budget is just knowing where your money is being spent.

Also, what are your current debts that need to be paid off and how much for each one? If we know that people can make suggestions on the best ones to pay off first.

Again, you should congratulate yourself for taking the first step. I know everyone here will help out in any way they can.

[jhd815]

First, give yourself a pat on the back for realizing the importance of handling your finances responsibly.

As the others hear have said, there is no such thing as a quick fix. However there are ways that you can gradually improve your credit rating.

Settle the outstanding debts. Pay down any cc debts you have. Make payments on time (this will show future creditors that you are responsible and want to make payments on time). Use a budget (you'd be surprised where all your money goes to, and you might even find money you can use to pay off other debts).

I check my credit report and score quarterly. Put the suggestions from everyone to work and check your score in 3 or 6 months. You should see a gradual improvement. Once you see that, it can motivate you to stay on track.

Good luck!