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How to Fix My Credit?! - Please Help!!

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    How to Fix My Credit?! - Please Help!!

    Hi, I want to know the steps I need to take to fix my credit ?? - Im 25 yrs old and I have a credit score of only 540 - I want a score of 700-800 - I have bad credit because as a teen I used to overdraw my checking account. Also I have some unpaid medical bills and a unpaid cell phone bill along with some other unpaid bills ( library & fitness club bills) - I have no evictions or unpaid rent . I really want to get a few credit cards in the future - So How do I fix my credit score of 540 to 700-800??? - What Are The Steps I need to Take to Fix my Credit??? - Please Advise!!!

    #2
    Originally posted by caligirl860 View Post
    I have some unpaid medical bills and a unpaid cell phone bill along with some other unpaid bills

    I really want to get a few credit cards in the future
    Sorry but you certainly don't sound like someone who needs to get "a few credit cards."

    The way to "fix" your credit is to stop doing the things that caused your score to drop. Don't overdraw your account. Pay your bills on time each and every month. Don't carry a balance on any credit cards.

    You have now posted numerous threads giving snippets of your financial problems. If you really want help, pour out the whole picture for us. List your income, your expenses, your assets and your debts. If you've got all of those unpaid bills, clearly you've been living way beyond your means. I realize the medical bills may have been unavoidable but not the library, fitness center, cell phone, etc. Folks here would be happy to give advice to help you clean up this mess but only if you provide the necessary information.
    Steve

    * Despite the high cost of living, it remains very popular.
    * Why should I pay for my daughter's education when she already knows everything?
    * There are no shortcuts to anywhere worth going.

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      #3
      Originally posted by caligirl860 View Post
      Hi, I want to know the steps I need to take to fix my credit ?? - Im 25 yrs old and I have a credit score of only 540 - I want a score of 700-800 - I have bad credit because as a teen I used to overdraw my checking account. Also I have some unpaid medical bills and a unpaid cell phone bill along with some other unpaid bills ( library & fitness club bills) - I have no evictions or unpaid rent . I really want to get a few credit cards in the future - So How do I fix my credit score of 540 to 700-800??? - What Are The Steps I need to Take to Fix my Credit??? - Please Advise!!!
      I agree with Steve. You don't NEED to get credit cards. You need to clean up the mess that you have first. You will need to post more info so we can help you devise a budget and a plan of action to get out of debt and start living within your means.

      I think that you need to focus on getting your finances in order before you can worry about anything else. You've asked about high dividend yileding stocks several times. Honestly, that is the last thing that should be on your mind right now. Post your budget so we can critique it.
      Brian

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        #4
        I would first start by paying off all of your non medical collections first. I say this because although your medical collections are bad for your scores, lenders don't see them as detrimental to your credit worthiness as other collections. Once those collections have been paid in full and marked so on your credit, I would establish payment arrangements for the medical collections.

        At the same time you should try to open ONE secured credit card first. Meaning you would have to give the lender money. $500 on deposit equals $500 in a credit limit and so on. There's no need to try to open several as you put it or you could get yourself into some trouble and be right back at that 540 credit score or worse. You should also try to establish and maintain a savings as well.

        Get a copy of your credit report and chexsystems report as well The chexsystems report is free. That way you can have a look at what banks you owe overdrafts too and start making arrangements with them. Assuming they're still in the 7 year statute of limitation period.

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          #5
          Originally posted by HousingCounselor View Post
          open ONE secured credit card

          Get a copy of your credit report and chexsystems report as well The chexsystems report is free.
          I would not get a credit card, secured or otherwise. This person has not learned to live within their means. There is no reason they need a credit card.

          I think checking the credit report is something everyone should do regularly. That is also free at annualcreditreport.com. There are 3 different reporting companies so order one every 4 months to rotate through the 3 of them.
          Steve

          * Despite the high cost of living, it remains very popular.
          * Why should I pay for my daughter's education when she already knows everything?
          * There are no shortcuts to anywhere worth going.

          Comment


            #6
            The best advice for rebuilding credit is to manage it responsibly over time. If you haven't done that, then you need to repair your credit history before you see credit score improvement.

            Comment


              #7
              Start rebuilding your credit by reducing your debt already, if you live beyond your means then take steps to become more frugal, move back with your parents if possible, stop going out for meal and socialise at home. Anything you can do to start paying the bills is a must. Once you have done this, prevent going overdrawn and create more unpaid bills. After that your credit rating will grow. I agree with other post about wanting more credit cards. Credit cards companies can increase rates at anytime and keeping a balance on several cards and living on the edge will lead to bankruptcy.

              Comment


                #8
                Originally posted by disneysteve View Post
                I would not get a credit card, secured or otherwise. This person has not learned to live within their means. There is no reason they need a credit card.

                If she already has credit accounts that she's current on then I don't feel she should get into anymore credit. However, if she still needs to establish a positive credit history, I think it would be safe to do so after she's paid off all of her other collections and established a savings. She needs to start off with a secured one though. How else are you going to build a positive credit history if you never take on any debt?

                Comment


                  #9
                  Originally posted by caligirl860 View Post
                  Hi, I want to know the steps I need to take to fix my credit ?? - Im 25 yrs old and I have a credit score of only 540 - I want a score of 700-800 - I have bad credit because as a teen I used to overdraw my checking account. Also I have some unpaid medical bills and a unpaid cell phone bill along with some other unpaid bills ( library & fitness club bills) - I have no evictions or unpaid rent . I really want to get a few credit cards in the future - So How do I fix my credit score of 540 to 700-800??? - What Are The Steps I need to Take to Fix my Credit??? - Please Advise!!!
                  The good news is you're only 25. Your credit may stink now because of poor choices you've made in the past, but you've got plenty of time to rebuild credit history and make up for those poor choices.

                  I'm just curious though. What has fundamentally changed in your financial life to prove that you're now ready to live within your means and always pay your bills?

                  Anyway, the first thing you need to do is pull your free credit reports from annualcreditreport.com so you can begin working on taking care of those old debts. Start there, give us some more information, and we'll be able to help you devise a good strategy for cleaning up your credit reports. Then you can begin to think about building positive payment history again.
                  Rock climber, ultrarunner, and credit expert at Creditnet.com

                  Comment


                    #10
                    As for me, I will not concern myself with what happened in the past. Those are lessons learned. What is important is what you are going to do today to make a better tomorrow. Try to review your finances. Prioritize properly your expenses. Use your credit wisely, don't go overboard and always pay on time. Before you know it, you are able to build a good credit record. One step at a time, don't be in a hurry or you will not achieve anything. At your age, I believe you are mature enough and can manage things effectively and efficiently. Cheers.

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