Sunday, November 21, 2010

I have $7500 debt on my credit. No Credit Cards. All those accounts are closed. How can I raise my score?

I can actually pay off the $7500 on my credit next month with a lump sum I am getting. I have been approved to finance a Vehicle ($8000) over 3 years.. My credit score is 538 and most of the bills are medical and lots of small stuff. I have time, I'm only 24 but I have an excellent job and I dont wanna have bad credit hanging over my head forever.. Never got approved for a credit card...I have $7500 debt on my credit. No Credit Cards. All those accounts are closed. How can I raise my score?
Hold on before you cut any checks...You may be able to negotiate the complete removal of non credit card debts like defaulted cell, medical, utility bills etc. from your credit report with a Pay for Delete agreement. This is a written agreement where you get a signed agreement from the debt collector (PRIOR to making any payment) where they offer to remove the negative items from your credit files after an agreed-to amount is paid. They will NOT want to do this....all they want is your money and their commission and they could not care less about your credit rating....Still, you have something they want (money) and that puts you in a position to negotiate on this issue. Example letter:

I am willing to resolve this issue if your firm sends me a written agreement that you will remove all negative notations from my credit report after the agreed-to amount is paid to you. Upon receipt of this letter I will mail you a USPS money order for this amount.


Again, they are not going to want to do this...if they simply refuse to remove it, then you want to negotiate that they will update your credit report to ';Paid in Full.” .

- Get all terms of any settlement deal you reach with debt collectors IN WRITING BEFORE you give them your money. This letter should state the settlement amount and that the account will be settled/paid in full upon receipt of this amount from you. Never accept settlement deals over the phone that are not backed up in written terms. If you don’t, the debt collectors will deny that any settlement was ever made once they get your “settlement” money and will come back demanding more money from you.I have $7500 debt on my credit. No Credit Cards. All those accounts are closed. How can I raise my score?
Paying off the $7500 will help
Best way to increase your credit score is to have a loan or credit card and pay on time. Credit cards are OK as long as you manage them. Just don't charge what you can't afford and make your payments by the due date.
pay off your past due.

never miss a payment

hang on to your oldest credit card

do not open a bunch of credit accounts

sounds like you have a mix of credit, car and cards which is good.

538 sucks, mine is 850
Pay off any lingering balances on your closed accounts. Pay off your medical bills. Keep paying for your car with the regular monthly payments, i.e. as long as possible to help build a better credit history. And last but not least, steer clear of money grubbers who say they want to marry you.
The important thing is to always make you payments on time but it will take awhile. Even one missed payment will undo any improvement of your credit score helped by on-time payments.

With your score currently at 538, it is obvious that you were not paying your bills on-time in the past.
finance a Vehicle ($8000) over 3 years that will help show you can make payments you could also get like a $500 to $1,000 loan tell bank or financial institution you want the loan kept in a savings account you don't want to be able to get it out until final payment is made you will also get interest on it if financial institution allows it while in your account it will be a secured loan it will show creditors you can pay your loans in a prompt manner but don't miss any payments or be late whatever loan you decide to get hope this helps you
pay the 7500 off and get a credit card and keep it paid monthly
1. Pay off the $7500.

2. Make all the payments on the vehicle loan on time.

3. In the future, pay your medical bills and ';small stuff'; promptly, so that they do not go onto your credit report.

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