How to revamp my credit?

Hi Sam

Welcome to the forums. It is nice to know that you are concerned about repairing your credit. As you are planning to buy a house and a car in the near future, your credit score will be analyzed to know your financial worthiness.

Based upon your three digit credit score, your rate of interest will be calculated on the amount you will borrow. There won't be anything better if you have a credit score of 720 ??? 740 in your credit report.

So, when you are on your way to repair any damages in your credit report, please check if your credit report is free from the following errors. These errors if found will actually hurt your credit score.

• Any possible errors in your credit report.
  
  
• Any accounts that don't belong to you.
  
  
• Some late payments that were actually paid on time.
  
  
• Debts paid in full but are shown as outstanding.
  
  
• Any old debts that should not be reported any longer (Negatives are supposed to be deleted after 7 years except bankruptcies which can stay for 10 years)
  

[quote=Samarch04]i am desperately in need for my credit to be revamped. i did a lot of screwing it up in the past with small unpaid bills and now student loans on top. i have a little girl that is 20 mo. old and i raise my wifes brother who is 16. i am 25 and because of the circumstances need to be able to own a home or buy a car without help. i make enough now that i am graduated and my wife makes less but in 2 months will have spotless credit because hers is cleared up. i cant buy a home now big enough for my large family at such a young age and now that i make good money it is an issue. so where do i start to clear my credit. any help will be greatly appreciated.

this is serious. so please no one with answer that they cant lead me to.

thanks,

sam[/quote]

First I will start by saying that we understand the fact that you are in a difficult situation. It is a difficult situation and there aren't any easy answers. But I can provide you with some advice on how you could work your way toward recuperating you credit.

First, you should take care of the unpaid bills. I don't know if you still have those unpaid bills. But just to be sure, I will suggest that you need to make sure that you are current with all of your bills. Because creditors will feel that you are not credit worthy if you cant take care of the bills that are smaller than a mortgage. They will say, if you cant handle a smaller laon, how can we trust you with a mortgage for a house. So that is the first base you need to cover immediately.

You need to build up a good history of credit repayment. So try not to miss anymore bills. Also, try not to be late for any bills. This also hurts your credit. And pay above the minimum for all of your monthly payments, if you could afford it. This shows creditors that you are not being saddled down by these smaller debts and you will be able to take on larger loans.

You need to distance yourself from that string of unpaid bills. it may take a few years of strong repayment before you notice an uptick in your credit score. After creditors see your new salary and your strong repayment history, they will trust you with a mortgage.

[quote=benjaminz6][quote=Samarch04]i am desperately in need for my credit to be revamped. i did a lot of screwing it up in the past with small unpaid bills and now student loans on top. i have a little girl that is 20 mo. old and i raise my wifes brother who is 16. i am 25 and because of the circumstances need to be able to own a home or buy a car without help. i make enough now that i am graduated and my wife makes less but in 2 months will have spotless credit because hers is cleared up. i cant buy a home now big enough for my large family at such a young age and now that i make good money it is an issue. so where do i start to clear my credit. any help will be greatly appreciated.

this is serious. so please no one with answer that they cant lead me to.

thanks,

sam[/quote]

First I will start by saying that we understand the fact that you are in a difficult situation. It is a difficult situation and there aren't any easy answers. But I can provide you with some advice on how you could work your way toward recuperating you credit.

First, you should take care of the unpaid bills. I don't know if you still have those unpaid bills. But just to be sure, I will suggest that you need to make sure that you are current with all of your bills. Because creditors will feel that you are not credit worthy if you cant take care of the bills that are smaller than a mortgage. They will say, if you cant handle a smaller laon, how can we trust you with a mortgage for a house. So that is the first base you need to cover immediately.

You need to build up a good history of credit repayment. So try not to miss anymore bills. Also, try not to be late for any bills. This also hurts your credit. And pay above the minimum for all of your monthly payments, if you could afford it. This shows creditors that you are not being saddled down by these smaller debts and you will be able to take on larger loans.

You need to distance yourself from that string of unpaid bills. it may take a few years of strong repayment before you notice an uptick in your credit score. After creditors see your new salary and your strong repayment history, they will trust you with a mortgage.[/quote]

Also, you should seek out help from family members. Assuming that you are not the only person from your family in the US. And assuming that it is the same with your wife. If you both are not immigrants without any family in the US, then I would reconsider your stance of not obtaining help from outsiders. You are young and in some instances, you are not capable of doing things on your own.

Take your credit for instance. I do not suspect that your unpaid bills are the only thing responsible for your low credit score. it is also because you are young with a very small track record of having credit. So those of us just establishing credit face an uphill battle of trying to build our credit. It takes years for us to establish credit and build trust with creditors.

So, If you need to embark on these major financial decisions, don't be afraid to ask for help. A cosigner would help out in many of these financial dilemmas that you have. Or maybe someone could help you with a down payment. many of us will need a cosigner or assistance in our lives. So you are not alone in doing this.