How to raise credit score of 551?
I was wondering should i call the collections agencies and see what settlement offers they have and pay on them will that boost my score up any please let me know
?redit repair work?d fine to fix my credit. They disputed and removed lots of bad items from my credit report. I used this service – credit-report-free.totalh.com
March, 19th 2010 at 1:46 am
With a score that low, you really will not see any "boost". Your credit score is NOT based on how much you owe, but much more on how you MANAGE your debt. You mismanagement of your debt will STILL be on your credit report, after you settle the debts. The delinquent record of your debt does not go away when the debt does. Actually, taking a settlement, will only FURTHER damage your score. There is no quick fix for a very bad credit score.
References :
March, 19th 2010 at 2:36 am
only time and 100% on time payments in the future (teh next 60 months of on time payments should help) and paying off what you owe will improve your score – "settling" won’t help – if you have the cash needed to settle (one huge lump sum), then why aren’t you using that money to pay what you owe anyway?
References :
March, 19th 2010 at 2:45 am
No-do not do that. It will not help you score one bit to pay them.
You need to do
1-How old are these items? check your states statutes of limitations on debt (SOL). If they are past the SOL, 1000% do not pay them. You can check it here and get more info on what the SOL is http://www.comebackcredit.com/statute-of-limitations-on-debts/.
2- Read this about paying items in collections and why you shouldn’t do it http://creditrepairinfoservices.com/blog/does-paying-charged-off-accounts-help-my-credit-score
There is just too much on both to write here.
3-If these items are past the SOL or charged off, you should send a simple dispute. You will be suprised how many will fall off. (both of the sites listed below have articles on how to dispute)
4-Start getting positive credit added. With a score that low, your only going to be able to start with a secured credit card. keep the balances below 30% for the best impact to your score. After 6 months, you will see your score start to rise. If you’ve been successful getting some of the negatives removed, that will help as well and if you want more impact to your score get 2 secured cards or 1 secured card and a store card that will approve you. The first site listed has an article about the secured card and a jewelry store that approves with no credit check. Just look through it..
It isn’t true that it is going to take years… Dispute and start getting positive things added and you can be amazed at the difference that happens at 6 months and 12 months.
References :
http://www.comebackcredit.com/statute-of-limitations-on-debts/
http://creditrepairinfoservices.com/blog/does-paying-charged-off-accounts-help-my-credit-score
March, 19th 2010 at 3:00 am
?redit repair work?d fine to fix my credit. They disputed and removed lots of bad items from my credit report. I used this service – credit-report-free.totalh.com
References :