How can i raise my credit score if i have 6 accounts in collections and i am paying on a student loan?
Monday, August 30th, 2010 at
10:33 am
…it seems like going through a debt settlement, or consolidation, or negotiation is something I can do on my own, i’m just not sure if this will raise my credit score if all my accounts are 2 years past due and I have no current open accounts. I can’t even get approved for an unsecured credit card to boost my credit score. Please Help!
Tagged with: accounts • collections • Credit • Loan • paying • raise • score • Student
Filed under: Debt Consolidation Loans Unsecured
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Quit worrying about some arbitrary number. Pay your bills and everything else will fall in line. Of course your score will go up if you pay off delinquent debt. If you don’t, it will continue to go down.
The first thing you want to do is settle those accounts in collections. Credit repair is definitely something you can do on your own. Once you have taken care of old debts, and made sure that your credit report is only showing valid information, you can start building a solid credit history.
I have put a link in the sources section to a web site called CreditInfoCenter.com. If offers all types of great advice on credit. Check it out.
Also, you can actually build a solid credit history without the use of debt. If you are currently paying recurring monthly bills like rent, utilities, cable, Internet, insurance, and cell phone you can create an account at PRBC.com. PRBC is an alternate credit bureau that allows you to build a profile of all your bills. When you are ready you can order a verification ($15-$20 per account) where your payment history is verified. Your good payment history can then be used to build a PRBC credit report, which you can request lenders look at as a sign you pay your bills on time.
Here is how to increase your credit score :
1. Pay your bills on time. Your payment history is a major factor (35% of your FICO score) in determining your credit score. If you pay your bills late, or had an account referred to collections, your credit score will take a major hit.
2. Sign up for online banking and make sure your regular recurring bills are paid automatically. This way you will not forget a payment that will wind up reducing your credit score.
3. Increase your credit limit. Another large factor is the amount of your debt in relation to your credit limit. If you have a card with a $10,000 credit limit and your balance is $9,000, this will not help to improve your score. To make the debt/credit limit ratio look better, you can try to call your credit card company and request an increase in your credit limit. Don’t use the extra credit though! That defeats the whole purpose and puts you further in debt!
4. Don’t apply for many cards at once. This will not improve your credit score because this is a characteristic of high credit risk groups.
It looks like you’ll have to go through debt consolidation as well. Read here further :http://nextcreditera.com/index.php
You can improve your credit score with knowledge, some time, some effort and not a lot of money. Start by learning the credit laws in the United States. The big one that will help you is that credit
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