how do i raise my very low credit score?
My credit score is very low. I have some credit cards, and student loans on my report. I currently have a car note, that is up to date, and i really want to buy a house. I am in the process of overlooking my report to check for mistakes, and i am in the process of disputing some things. Any positive advice would be greatly appreciated.
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June 2nd, 2010 at 6:57 pm
You can do it – don’t pay anyone to repair your credit because you can do it yourself for free (or at least the cost of stamps
1 – If you haven’t already get current copies of your credit reports from the 3 major bureaus (Equifax, Experian and Transunion)
2 – Take a photocopy of each and put the originals in a binder
3 – Get a highlighter and highlight any account that is negative (collections, written off, older than 7 yrs, etc…)
4 – Any inactive account that is older than 7 yrs should not be deleted from your report. Download a dispute letter from the credit bureaus website(s) and fill in the details.
5 – For collection/overdue items, if they are greater than 7 yrs dispute them as well
6 – If there are still valid debts, you need to contact the creditor and negotiate a ‘pay for delete’ in addition to a payment plan if you cannot pay in full. If they start hounding you send them a ‘cease and dessist’ letter stating they may only contact you in writing.
7 – Do not apply for any credit while you are doing this or for the next year (ideally 2)
8 – If you currently have any credit card or loan balances, pay them off or at least pay them down to bring them current
9 – If you need a credit card, get a secured card from Capital One for $500 (or more if you can)….use it sparingly for like only $25-50 and pay in full and on time every other month or so to establish good re-payment history. A little patience and 2-3 months, you’ll be on your way.