Aug
31
Poor credit rating What can I do?
Filed Under Credit | 5 Comments
Peggy asked:
Recently, I have been turned down for jobs, housing, and an auto loan due to bad credit. The only thing on my credit is medical bills. Very large ones and lots of them that I can not afford to pay. I have no medical insurance and can not get medicaid because I am not pregnant, under 21, or over 65, or disabled. I was born with a genetic disorder that often results
in trips to the emergency room,hospital stays, etc.
I need a job, have been turned down 8 times because of credit.
I can’t file bankruptcy because I can’t afford to pay for credit counseling and filing fees – even on an installment plan. That
would not improve y credit anyway.
What can I do ? I can’t get any credit, a job, or anything.
Minnie
Recently, I have been turned down for jobs, housing, and an auto loan due to bad credit. The only thing on my credit is medical bills. Very large ones and lots of them that I can not afford to pay. I have no medical insurance and can not get medicaid because I am not pregnant, under 21, or over 65, or disabled. I was born with a genetic disorder that often results
in trips to the emergency room,hospital stays, etc.
I need a job, have been turned down 8 times because of credit.
I can’t file bankruptcy because I can’t afford to pay for credit counseling and filing fees – even on an installment plan. That
would not improve y credit anyway.
What can I do ? I can’t get any credit, a job, or anything.
Minnie
Aug
30
mnetrucker asked:
I’m going to be honest here, my credit score sucks right now. last i looked it was 580. I was very irresponsible with my credit and spending and overall finances some years ago. I was out of work for over a year due to a car accident. So I foolishly put bills and whatnot all on credit cards with no way of paying them. So I had one go to collections. I have since then paid off all my debt. I have two credit cards now, one fully paid off. The other with a small (300$) balance. I’m looking to possibly get a house, but my credit sucks, what can I do to really improve credit and my score. I heard closing my credit cards hurts credit. So I keep them, but should I pay them off every month in full or make more than min. payments. I don’t know which looks better or helps credit score. There’s no outstanding debt on my credit reports, just the ugly past mistakes that are haunting me (the old collections that i paid off) So any help or tips to improve my credit would be most helpful. should I make small purchases on my credit card and make more than half of the min. payment, or pay it off in full every month? Or close them out? And what else can I do to gain better credit.
Charlotte
I’m going to be honest here, my credit score sucks right now. last i looked it was 580. I was very irresponsible with my credit and spending and overall finances some years ago. I was out of work for over a year due to a car accident. So I foolishly put bills and whatnot all on credit cards with no way of paying them. So I had one go to collections. I have since then paid off all my debt. I have two credit cards now, one fully paid off. The other with a small (300$) balance. I’m looking to possibly get a house, but my credit sucks, what can I do to really improve credit and my score. I heard closing my credit cards hurts credit. So I keep them, but should I pay them off every month in full or make more than min. payments. I don’t know which looks better or helps credit score. There’s no outstanding debt on my credit reports, just the ugly past mistakes that are haunting me (the old collections that i paid off) So any help or tips to improve my credit would be most helpful. should I make small purchases on my credit card and make more than half of the min. payment, or pay it off in full every month? Or close them out? And what else can I do to gain better credit.
Charlotte
Aug
27
Jason M Paulsone asked:
Bad credit can hurt you in a lot of different ways and it is important to find a way to improve your credit score so you can get the loans and financing you need for things that matter to you. There are many things you can do that are simple and effective, here are a few:
Keep your credit balances low:
When you get a credit card try to get a high limit but keep your balances at the ten to twenty percent level at most. Maxing out your credit card is not smart and will most likely worsen your credit rating, use other lower interest sources of loans if you must spend money like a line of credit.
Check your credit report:
You might be surprised at how often the major credit reporting agencies make mistakes when it comes to the accuracy of your credit report. Get a report from the major reporting agencies and review it thoroughly and be sure to catch any mistakes and notify them of it as mistakes on your credit report can negatively impact your overall score.
Do not make late payments:
Missing payments has a major negative impact on your credit score. Be sure to always make your payments on time. A good strategy is to setup some type of automatic banking bill payment system, simply visit your local bank and ask them about setting up an auto bill payment system as most banks will be able to do this for you easily. This is particularly useful for those that have a tendency to forget about making monthly payments and will help to simplify your life and also can save you time.
Make bigger monthly payments:
The problem with a large credit card balance is that the monthly minimum is barely enough to cover interest on most credit cards.This means that if all you do is pay the monthly minimum on your credit card then you will have a really hard time bringing the balance down as you are paying primarily for interest. You may be broke so look to getting money from lower interest loans like a line of credit or if you own a home you could look to refinance and take out some equity so you have more cash on hand.
Live within your means:
We all want fancy things and sometimes it is hard to avoid buying that nice item that you really want but cannot afford. Spend money only on things you really need and not luxury items. Buy luxuries with cash and not your credit card or borrowed money. If you are struggling for money then evaluate why this is the case, maybe you need to train for a better career with more opportunities or perhaps look to spending more time building a part time business that can allow you to have more streams of income. However, regardless of how much money you make, do your best to spend less than you make and even look to have some savings as this will put less pressure on you during tough economic times.
Eileen
Bad credit can hurt you in a lot of different ways and it is important to find a way to improve your credit score so you can get the loans and financing you need for things that matter to you. There are many things you can do that are simple and effective, here are a few:
Keep your credit balances low:
When you get a credit card try to get a high limit but keep your balances at the ten to twenty percent level at most. Maxing out your credit card is not smart and will most likely worsen your credit rating, use other lower interest sources of loans if you must spend money like a line of credit.
Check your credit report:
You might be surprised at how often the major credit reporting agencies make mistakes when it comes to the accuracy of your credit report. Get a report from the major reporting agencies and review it thoroughly and be sure to catch any mistakes and notify them of it as mistakes on your credit report can negatively impact your overall score.
Do not make late payments:
Missing payments has a major negative impact on your credit score. Be sure to always make your payments on time. A good strategy is to setup some type of automatic banking bill payment system, simply visit your local bank and ask them about setting up an auto bill payment system as most banks will be able to do this for you easily. This is particularly useful for those that have a tendency to forget about making monthly payments and will help to simplify your life and also can save you time.
Make bigger monthly payments:
The problem with a large credit card balance is that the monthly minimum is barely enough to cover interest on most credit cards.This means that if all you do is pay the monthly minimum on your credit card then you will have a really hard time bringing the balance down as you are paying primarily for interest. You may be broke so look to getting money from lower interest loans like a line of credit or if you own a home you could look to refinance and take out some equity so you have more cash on hand.
Live within your means:
We all want fancy things and sometimes it is hard to avoid buying that nice item that you really want but cannot afford. Spend money only on things you really need and not luxury items. Buy luxuries with cash and not your credit card or borrowed money. If you are struggling for money then evaluate why this is the case, maybe you need to train for a better career with more opportunities or perhaps look to spending more time building a part time business that can allow you to have more streams of income. However, regardless of how much money you make, do your best to spend less than you make and even look to have some savings as this will put less pressure on you during tough economic times.
Eileen
Aug
21
Improving Your Credit Rating Fast
Filed Under Credit | Leave a Comment
David Kamau asked:
How do you show lenders, employers and landlords that you’re trustworthy, able to manage money and fulfill your promises? Your credit score. This is your financial report card on how well you keep promises and better yet, it’s indicator of your responsibilities and how you handle them.
Your credit score will have the most repercussions on your life. This can be positive or negative. From being approved for a mortgage to an auto loan. The higher your credit score gets, the easier it will be to obtain any material item at the best possible rates. When you have a high score banks will throw money at you and are willing to gamble on flexible repayment terms because you’ve shown you are worthy.
Not everyone shares this luck. Many have a below average or poor credit score, however, there are steps you can take to improve your credit worthiness.
The credit score is determined by the all positive and negative information or trademarks that appear on your report. Some of the information will weigh more than other data, so when working to raise your credit score you want to start with those negative areas having the most impact.
1. The first obvious thing that you can do to improve your credit score is make payments on time. Creditors report payments to the credit agencies either every 30 days or every quarter. Therefore, you can pretty much guarantee if your bills are paid on time, your score will rise within 3 months.
2. Next, you want to review your report to see if there is not false information on there. Perhaps, your creditor has placed a negative trademark saying you paid late when you didn’t. You want to write to the credit agency denying this and asking that it be corrected. Now, if you have proof, this can happen much quicker and they’ll have no other choice but to update favorably. Without proof will take longer to correct.
3. You want to consider a pre-paid credit card. Now, their terms are not favorable to consumers, however, if you have a strategy in mind, I recommend getting a pre paid credit card for this purpose. Pre paid creditors will update records with the credit agencies every month. If you are making payments on time, this will raise your score quickly. Now strategize; you don’t want to create a bigger problem by taking on debt that you cannot pay. So this pre paid credit card should have a low limit and only be used with the strategy of spending enough for you to create good responsible habits.
4. If you have a savings account with a minimum of $500 saved up, ask for a personal loan with your savings account as collateral. A bank loan is the perfect choice of showing responsible payment habits and will give you a significant boost in your credit rating.
There is really no quick fix or tricks that will boost your credit rating. It takes time to undo what you took years to create. While most people become unmotivated by this information, others will look at it with enthusiasm knowing in a minimum of 3 months, your credit rating can move up some points and you can start on a path of material riches.
Suzanne
How do you show lenders, employers and landlords that you’re trustworthy, able to manage money and fulfill your promises? Your credit score. This is your financial report card on how well you keep promises and better yet, it’s indicator of your responsibilities and how you handle them.
Your credit score will have the most repercussions on your life. This can be positive or negative. From being approved for a mortgage to an auto loan. The higher your credit score gets, the easier it will be to obtain any material item at the best possible rates. When you have a high score banks will throw money at you and are willing to gamble on flexible repayment terms because you’ve shown you are worthy.
Not everyone shares this luck. Many have a below average or poor credit score, however, there are steps you can take to improve your credit worthiness.
The credit score is determined by the all positive and negative information or trademarks that appear on your report. Some of the information will weigh more than other data, so when working to raise your credit score you want to start with those negative areas having the most impact.
1. The first obvious thing that you can do to improve your credit score is make payments on time. Creditors report payments to the credit agencies either every 30 days or every quarter. Therefore, you can pretty much guarantee if your bills are paid on time, your score will rise within 3 months.
2. Next, you want to review your report to see if there is not false information on there. Perhaps, your creditor has placed a negative trademark saying you paid late when you didn’t. You want to write to the credit agency denying this and asking that it be corrected. Now, if you have proof, this can happen much quicker and they’ll have no other choice but to update favorably. Without proof will take longer to correct.
3. You want to consider a pre-paid credit card. Now, their terms are not favorable to consumers, however, if you have a strategy in mind, I recommend getting a pre paid credit card for this purpose. Pre paid creditors will update records with the credit agencies every month. If you are making payments on time, this will raise your score quickly. Now strategize; you don’t want to create a bigger problem by taking on debt that you cannot pay. So this pre paid credit card should have a low limit and only be used with the strategy of spending enough for you to create good responsible habits.
4. If you have a savings account with a minimum of $500 saved up, ask for a personal loan with your savings account as collateral. A bank loan is the perfect choice of showing responsible payment habits and will give you a significant boost in your credit rating.
There is really no quick fix or tricks that will boost your credit rating. It takes time to undo what you took years to create. While most people become unmotivated by this information, others will look at it with enthusiasm knowing in a minimum of 3 months, your credit rating can move up some points and you can start on a path of material riches.
Suzanne
Aug
19
How Does Debt Affect My Credit Rating?
Filed Under Finance | Leave a Comment
Ricardo Reeves asked:
Most people would think that the more debt they have, the worse their credit rating is. But, unfortunately, it‘s not that simple. Anybody who uses credit cards or takes a loan can be considered to be in debt. That is fine by many Credit Reference Agencies. So, when does debt put a black mark on your credit report?
Well, if you are unable to pay back your creditor in time, it obviously reduces your credibility as a debtor. As a result, your credit rating goes down. The worst scenario for your credit rating could be when you are in a situation that you have to file for bankruptcy. Credit ratings reduction from bankruptcy takes a very long time to recover, in some cases, as much as ten years. Once you have that on your credit report, it will be very tough for you to obtain more loans or mortgages for a very long time.
If, on the other hand, you are consistent and punctual in your debt payments, then there is no effect on your credit ratings. In fact, it improves them. This is so because a credit rating agency is not only looking at the amount of money you owe but also your previous response to debt and how you have managed it. You may run into considerable debt by using your credit card, but if you pay the bank back on time, your credit rating is maintained.
In fact, your credit ratings are also likely to suffer if you never run into debt. The whole concept behind ‘credit’ and ‘rating’ is scoring your debt paying history. More often than not, banks will refuse a person a loan if that person has never run into debt. This is because, in such a case, your banker does not have an account of what to expect from you in terms of debt repayment. If there is no debt that you have had and cleared, the bank would see you as a high risk investment because in their view, you would be a novice at debt management and thus, you are considered more likely to default.
Also, it is not debt itself that would affect your credit rating but often the approach you take to get out of debt that would. For instance, debt management (credit counseling) would stay as a negatively influencing notation on your credit report. It will remain on your report for seven years. If you fail to pay back your debt and accumulate an amount that is way beyond your means, you might have to opt for bankruptcy. Now that can really affect your credit score and would keep on hounding you for six to ten years.
So, the need of the hour is not to stop borrowing, but it is to borrow within your means. Know your limits. Borrow just as much as you know you can pay back easily. Often when a debtor gets carried away with borrowing, his debt becomes a problem for him.
Justin
Most people would think that the more debt they have, the worse their credit rating is. But, unfortunately, it‘s not that simple. Anybody who uses credit cards or takes a loan can be considered to be in debt. That is fine by many Credit Reference Agencies. So, when does debt put a black mark on your credit report?
Well, if you are unable to pay back your creditor in time, it obviously reduces your credibility as a debtor. As a result, your credit rating goes down. The worst scenario for your credit rating could be when you are in a situation that you have to file for bankruptcy. Credit ratings reduction from bankruptcy takes a very long time to recover, in some cases, as much as ten years. Once you have that on your credit report, it will be very tough for you to obtain more loans or mortgages for a very long time.
If, on the other hand, you are consistent and punctual in your debt payments, then there is no effect on your credit ratings. In fact, it improves them. This is so because a credit rating agency is not only looking at the amount of money you owe but also your previous response to debt and how you have managed it. You may run into considerable debt by using your credit card, but if you pay the bank back on time, your credit rating is maintained.
In fact, your credit ratings are also likely to suffer if you never run into debt. The whole concept behind ‘credit’ and ‘rating’ is scoring your debt paying history. More often than not, banks will refuse a person a loan if that person has never run into debt. This is because, in such a case, your banker does not have an account of what to expect from you in terms of debt repayment. If there is no debt that you have had and cleared, the bank would see you as a high risk investment because in their view, you would be a novice at debt management and thus, you are considered more likely to default.
Also, it is not debt itself that would affect your credit rating but often the approach you take to get out of debt that would. For instance, debt management (credit counseling) would stay as a negatively influencing notation on your credit report. It will remain on your report for seven years. If you fail to pay back your debt and accumulate an amount that is way beyond your means, you might have to opt for bankruptcy. Now that can really affect your credit score and would keep on hounding you for six to ten years.
So, the need of the hour is not to stop borrowing, but it is to borrow within your means. Know your limits. Borrow just as much as you know you can pay back easily. Often when a debtor gets carried away with borrowing, his debt becomes a problem for him.
Justin
Aug
19
Consequences for missing a few credit card payments. 2 months late on last one?
Filed Under Credit | 2 Comments
Derek l asked:
Help me out please. I’m in a mess financially. I was late on 3 of my payments in the past. The last one is over two months late. I’m in Canada with Royal Bank. What’s going to happen to my credit rating? How/what can I do to improve my credit rating? Appreciate the help
Sue
Help me out please. I’m in a mess financially. I was late on 3 of my payments in the past. The last one is over two months late. I’m in Canada with Royal Bank. What’s going to happen to my credit rating? How/what can I do to improve my credit rating? Appreciate the help
Sue
Aug
12
How can one improve their credit if they don’t have any credit, but a lot of debt?
Filed Under Credit | 3 Comments
thetigersnameistony asked:
He has a lot of debt, about $20,000. It relates to back child support incurred while in a situation about 7 years ago where he was unable to work, and ignorant to the idea that he should have went to court to reduce his payments. He came out of the situation with about $15,000 worth of back pay. The only other stuff on the credit report was related to ambulance fees, hospital bills and a Macy’s bill. The Macy’s bill didn’t even list an amount owed, it just said the account was closed. He doesn’t know what he owes or could owe to Macy’s because he was not the one using the card nor receiving the statements. This was 7 years ago as well.
He has a lot of debt, about $20,000. It relates to back child support incurred while in a situation about 7 years ago where he was unable to work, and ignorant to the idea that he should have went to court to reduce his payments. He came out of the situation with about $15,000 worth of back pay. The only other stuff on the credit report was related to ambulance fees, hospital bills and a Macy’s bill. The Macy’s bill didn’t even list an amount owed, it just said the account was closed. He doesn’t know what he owes or could owe to Macy’s because he was not the one using the card nor receiving the statements. This was 7 years ago as well.
How can he fix this. No one will give him a credit card, (he’s tried.) He pays the child support regularly and my caulculations suggest that at the rate his payments go, it will be 4 years before that back pay is almost gone. He can’t afford to give more. He doesn’t bring enough home now to pay his rent each month.
Is there really no way out?
If I read the report correctly, he doesn’t even have a credit score, because he has no revolving accounts.
What does it really mean when they say things 7 years old get removed from a report? The bulk of the debt showed is 7 years old.
He doesn’t WANT a credit card, he wants to have some credit. In addition, he is in a position in which the slightest emergancy can leave him homeless, stranded, or useless. He’s a father and he needs to better his life so he can be a stable figure in the lives of his children.
Arnold