I owe about 18K from a repo and 3K in credit card bills. I had to leave the US to go back to the Philippines due to a family emergency. I did not work there and stayed there for 2 1/2 years so I was not able to make any payments. Now Im back in the US & currently have a part time job. I really want to fix my credit. How do I do it and where do I start? Please help! Thank you in advance.
Find out if your debts were sold to a collection agency, if so they usually bought it from the creditor for 10 Cents on the dollar. If you have the ability to do so , paying in full will drastically lower the ammount you have to pay. Be persistant. The extra money they get from you is thier BONUS.
If not then you will have to contact them to make payment arangements. Also take a look at your credit report, see which agencies are reporting for each loan.
Also you may be able to secure a small loan or do a debt consildation to pay off those old bills…
The credit card bills… if they are old old.. depending on the last time they submitted you to the crediting agencies( this info is on your credit rep) you may not want to even touch it right now… openeing something that noone has been keeping up with will actually harm your score.
Finally keep this in mind while trying to build your credit..
It is impotant to remember that your FICO is made up of a percantage of things
35% = Making ONTIME payments, even if it is the MINNIUM!
Mail it in a week early!
30%= debt ( monies charged, loans..) VS. What amount of credit is actually available to you. The smaller debt and bigger credit is what you are aiming for.
15%= Length of credit history. Having accounts open years ago, actually helps sometimes. Unpaid ones could potentially help also, it is establishing how long you have been around , getting credit. Shows them you have a history. So dont go cancelling older cards… that would erase some of your history , actually damaging your score.
10% = New accounts and inquires on your credit.
Obviously more inquiries lowers your score.
10% A good mix or balance on the types of loans and credit you have. ( RE: Home , car, credit, departmant store)
June 28th, 2009 at 8:53 am
There is no way to erase bad credit from your credit report, but you can improve it. You can start by pulling your credit report form all three credit agencies which are Experian, Equifax, and TransUnion. You can find out how to obtain these for free annually at the U.S. Government website at Federal Trade Commission. Then, follow these simple guidelines to help restore and improve your credit score.
First, make sure all the information on your credit report is accurate.
Second, try to pay off all or any accounts that are currently in collections or make payment arrangements with the creditor to pay off the balance monthly.
Third, any credit card that is over 50% of the available credit line should be paid down to under half of your total credit line. Your credit score is lowered when your available balance is over 50% of your total credit line.
Finally, if you have bad or no credit and have no credit cards try to obtain two credit cards and make sure all of your monthly payments are made on time. This will help increase your credit score. If you cannot be approved for a unsecured credit card, obtain a secured credit card.
Repairing your credit and improving your credit score is a slow process that takes time.
June 30th, 2009 at 9:13 pm
Hi.
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July 3rd, 2009 at 5:06 pm