How fast can i build up my credit/FICO score?
I have a bout $255 in credit card debt. My credit card debt was actually around 500 just 2 weeks ago but i was able to make a big payment (got a job finally).
I also have about $250 in a collection agency for not making payments at a local fitness center. They haven't been able to collect cause i don't have a bank account.
I recently checked my FICO score and it was 412 which i know is bad.
So basically i am in $500 in total debt.
So my question is: How fast can i get my credit to around the 600 to 750 FICO range if i make the total "debt" payment next month and if i continue to make my credit card payments on or before the due date?
Thank you
Well i forgot to add that the 250 dollars owed to the Fitness center has been in collection for about 4 to 5 years now.
Probably why my credit is so poor now.
Сredit repair workеd fine to fix my credit. They disputed and removed lots of bad items from my credit report. I used this service – creditreport.undonet.com
First of all you should never put more than 25 percent debt on your credit card a month, so 500.00, only put up to 125.00 and pay it before it is due. With your situation I say shred your card this minute, so you will not be tempted. Call the collection agency, or better yet
write a letter explaining what you can pay, and start paying it, fitness
center will be considered a luxury debt, in other words you could survive without it, unlike a medical bill. Do not cancel your credit card
just don't use it, cancelling will drop your score even more, you never said what your rate with your card is, but I figure with your fico score
it must be high. Can you borrow from family, cause if you pay a little here and there that 500.00 will end up a thousand in no time, even without using the card. Now you need to budget, which means find ways to cut back to get your self out of debt. Good Luck, and hang in there!
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412 is a really low score…I think there is more going on here than just this one default for a fitness center.
This would be a start: You may be able to negotiate the complete removal of non credit card debts like defaulted cell, medical, utility bills etc. with a Pay for Delete agreement. This is a written agreement where you get a signed agreement from the debt collector (PRIOR to making any payment) where they offer to remove the negative items from your credit files after an agreed-to amount is paid. They will NOT want to do this….all they want is your money and their commission and they could not care less about your credit rating….Still, you have something they want (money) and that puts you in a position to negotiate on this issue. Example letter:
I am willing to resolve this issue if your firm sends me a written agreement that you will remove all negative notations from my credit report after the agreed-to amount is paid to you. Upon receipt of this letter I will mail you a USPS money order for this amount.
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There are no quick fixes to bad credit…
- Only the passing of time will undo the damage. After two years of no defaults and timely payments on your existing accounts, you'll start to see your credit score gradually go up.
- The best you can do is limit the damage and not make it worse…Stop the cycle of defaulting on debts, because if you keep defaulting or paying late, you'll have bad credit forever. Every new major default or drastically late payment (i.e. 3 months date) will start a brand new cycle of bad credit that will last at least two years.
- Avoid the temptation to pay a "credit repair" firm, they cannot remove accurate negative info
- If you have an current, non-defaulted credit card accounts, do your best to keep the balances below 25% of the credit limit as maxing out is another negative factor.
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The collection account is a negative. Try to negotiate a pay for delete. Since the debt is over 4 years old, you should be able to settle it for less than 25%.
Pay off your credit card. Then use the card for small purchases and pay in full every month. This will build good payment history. In about a year or so, apply for another credit card. Also use the new card every month and pay in full.
You will still need at least 24 months of consistent, on time payment history to improve your score. You build credit over years, not months. Credit experts recommend that you have 3 or 4 revolving credit accounts and 2 installment loans to get the best mix for the best FICO scores.
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Сredit repair workеd fine to fix my credit. They disputed and removed lots of bad items from my credit report. I used this service – creditreport.undonet.com
References :
Hi,
I used "eBeezz" to settle my debt and avoid bankruptcy.They managed to reduce my debt up to 58%.It's legitimate.. I came across this company on NBC News Special Edition.Check it out here:
http://DebtFree.eBeezz.com
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