help me out please....I got bad credit and want to buy a house and a car...how do i repair my credit?
I hate to break the bad news to you, but YOU CANNOT repair bad credit in a month.
It takes many years to establish good payment histories.I got bad credit and want to buy a house and a car...how do i repair my credit?
Pay your bills on time, dont miss or have any late payments. There isnt much you are going to acomplish repairing your credit within a months time. It takes a few months to destroy your credit, and years to rebuild it.
There's not much you can do since so much of credit is based upon a long history. Your credit score goes up in correlation to number of on-time payments made, keeping a mild percentage of credit limits used (i.e. all your cards aren't maxed out), and a general use of good credit places (visa, mastercard, utility bills) and avoidance of dangerous ones (department store credit cards). The only things you can do right now is to be sure your cards are not maxed out and perhaps get a old of your credit report (from all three credit companies擨 forget what their names are, I know one is Experian) and check them for any errors. If there is a negative error on them, you can contest it to try to get it removed from your report, which should help.
www.creditinfocenter.com
Bad credit won't PREVENT you from buying either one, but you'll have a higher interest rate on both loans, and you're probably going to have to come up with a substantial amount of cash for a downpayment on either one.
Unfortunately, there is no way to fix bad credit overnight, but you can improve it substantially over the course of a year, and eventually things will ';fall off'; of your credit report. 7 years is usually how long anything bad takes to go away. Most importantly pay everything on time (you know this already), and don't do one of those debt consolidation loans....it hurts your score when you do that.
I wish I could help, but my credit is jacked too, so thanks for the question so I can keep up with the answers, right now, I have an excellent sponsor (my hubby) who has great credit and he has saved me from alot of disappointment. :)
I have stupid stuff on my credit though, hospital bills, a couple of credit cards, no repos, no evictions, no government loans, so it is really all cosmetic, but I still need to fix it.
You might want to start with consolidating your bills first and making payments towards the past due bills. It may take a little longer than one month but if you are constant eventually you will pay them off and be able to reestablish you credit. I know it is discouraging when you look at the big picture and the time that is involvolved, but... if you just take one day at a time, when you look back it will be all over and you'll have a clean start.
Instead of trying to buy a car and a house in the next month, work on your finances, give up on things you don't absolutely need, pay off your debts, don't take out any more loans, save as much as possible, buy a used car for cash, reduce expenses as much as possible.. Then once you've paid off all your debts, keep saving like a madman. keep buying used cars.. after you have saved up a fair lump of cash, *then* consider buying a house.
It takes time, it's not pleasant... but if you change your spending habits for the better and save in the meantime, you'll have better credit and, more importantly, you won't *need* credit... if you have to borrow for it, you don't need it.
Good luck because this is not how it works. You will need to put off buying a house and car for a while until you repair your credit which can take up to 3 months depending on your energy. Cleaning out those little left -over balances (if any) is where you start. You will need a plan on which areas to tackle first. The quicker you can get things off your credit report, the higher your score will climb. You need to start dividing your income up according to purpose and priority. Good luck.
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