Paid Off Debt...now Waiting
Earlier this year I paid off all of my debt which included 2 credit cards with low balances, car loan, AND 2 outstanding issues. I have no bankruptcies or anything like that. I don't have a mortgage or any other creditworthy responsibilities at this time either. I am simply at a point where I am eagerly seeking to rebuild my credit so at some point I can start REI. I have reviewed my credit report from all 3 bureaus, I preferred having them send the reports to me as oppose to the online version so that I could really review it hands on. They have deleted 3 out of 9 entries after I disputed. Is there anything I can do about inquiries made within the last year? I have been turned down for new credit, can't even get a darn cell phone in my name.
What can I do to jumpstart my bounce back to freedom???
Thanks,
This newbie is on a mission!
If you don't have any current credit cards that are reporting, but you have some closed and paid baddies, you need to get something new reporting.
Inquiries on EQ and TU can be disputed, EX won't let you.
For something unsecured, you might try Chevron if you've got 'em in your area. Otherwise, you may need to go the secured card route in order to rebuild.
I have found, ( and I welcome any corrections), that it is best ot keep low balance and make payments on time, than it is to pay a loan off. This is to reestablish credit. Example: Your car is worth $5k go to a regular bank, barrow $500 then make the low payments on time. You could also set up an account, put the $500 plus what ever interest it'll cost into the account, and have the patment automatically deducted monthly, dont touch the money, just monitor the payments.
Second thing to watch is your credit limit. If you have $1000 limit and over 50% balance it takes points away from your credit score.
Third is length of time an account is open with no late payments, so if you paid the bal. off leave the card open but don't barrow.
My personal problem is discipline, keeping my balances low and not barrowing, got to keep up with the Jone's, lol.
Thanks for the great input. I actually do have a new credit card with a very low balance, but it's a high interest card. I decided to get that just to start re-establishing myself.
My problem is that the remaining stuff on my credit reports are "bad" (delinqencies, late pmts..that went to collections) Luckily I haven't had any judgements at all. The downer is that I have to wait for things to slowly disappear from my credit report so my fico score improves. I am presently below 600....(i know...bad, bad, bad!! lol)
I know the usual making pymts on time, keeping a low balance on my present credit card is what I primarily need to continue to do, but are there any other credit pursuit strategies I could use at this point??
Thanks
Disputes, goodwill letters & nutcase letters.
flacorps, while you are right that Experian does not want to let you dispute inquiries, it can be done with them. It takes a little more time and dedication in getting them off. Equifax is easy, just tell them it wasn't authorized. TransUnion actually has a policy that "inquires are a matter of fact" and can't be disputed. But again, there are strategies to use to get them removed with all of the agencies. We do it all of the time. Best of luck!
Sincerely,
Mario Costanz
Buy a short term CD that goes for 6 months, then get a loan for the same amount and secure it against that CD. Then make a payment the first month, shortly after pay ahead by 1 month. Then make the rest of the payments monthly. You would have shown that you have paid off a loan with payments ahead of time. Keep doing this until the bank allows you to get a loan w/out the CD securing it. If the bank asks you why you're doing it, tell them you are trying to build good credit w/them.
[addsig]
The best way to restore credit is with a secured credit card!!!!!!!!!! Providian would be my advise
Lori
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real estate investor since 1988. I like to find creative solutions for my real estate headaches before they become problems. Most importantly, MOVEMENT DOES NOT EQUAL PRODUCTIVITY[ Edited by tinman1755 on Date 10/06/2004 ]
I send out credit repair packages all the time. It will take 5 to 6 months and you will have 4 new lines of credit. If you start now, the old reporting of lates will be over 1 yr old and you should be in the high 600's. Send e-mail to my profile and I will send you out a credit repair package overnight for no charge.
Good Luck,
Robert
Roberth,
Thank for your reply. Please take no offense to this opinion. I'm a little leary of credit repair programs. But I am open to learning more about yours.
thanks
newinvestor1975,
You have every right to your opinion about credit repair programs. I would however ask that you see my post at:
What Can I Offer Sellers?
and at:
"Credit Repair" Services That Exploit FCRA Pls Read
before making your judgment final for all credit repair companies.
Sincerley,
Mario Costanz
Mario, your service sounds promising,
what would happen if a person with previous heavy lates began using this system and paying credit cards down with no more lates, realistically how long would it take to move the fico needle? j/c :-?
sleeve396,
The process itself normally starts affecting the score in about 6 weeks from the time we get started with a client. That is not to say that 6 weeks is all it takes. Results vary on a case by case basis. We are done with some cases after 6 weeks (their credit is completely clean) while others can take upwards of 6 months or more. This mostly depends on the extent of the damage to the report. We guarantee all of our work and our clients pay us on an account by account basis and only if were are successful in removing an account. We are that confident in our services. I'll be perfectly honest with you, lates are not the easiest to remove (especially if they are with some of the bigger credit card companies). Paying down your debt ALWAYS helps the process along. Optimally, you should only be using between 7% and 25% of your available credit. That will get you the best bang for your buck (as far as your score goes). Realistically, there is no way for me to give you a true estimate of your time frame without looking at your report, and even then it will only be my professional opinion (I am right most of the time). Best of luck.
Sincerely,
Mario Costanz
Mario,
I would like to learn more about your program.
Thanks
What can I help you with?