Credit Help.?

Question

Im 22 and have had a tough time the past 2 years with my credit, i have like 3 credit cards and about 2500 owed in credit cards and medical bills. I was wondering about how long it would take for my credit to improve if i started paying on time monthly for my past due accounts. I want to get a house and a new car in a couple of years and i wanna know if it is realistic, my credit rating right now is about 512 and i noticed its been going up slightly in the past 2 months as ive been trying to get on track. Any info would be helpful.

Answer 1

Opt for a debt consolidation loan: The easiest method of getting a debt consolidation loan is to utilize the equity of your home. Equity of your home is calculated and determined by the difference in the amount you have paid and the amount you owe. If the amount you have paid is more than the amount due, you can use it as collateral. This allows you to borrow money on lower interest rates. Besides, you also get tax benefit on this type of loan. Consult your tax advisor before opting for this loan.

http://debt-trap.com/category/Debt-Conso...

Answer 2

The key would be to get the credit cards current, and continue to pay on them while keeping them open. Keep in mind that it takes open accounts in good standing in order to raise your scores, so hopefully, you can get the credit cards current, open, and active to build credit. As for the medical bills, you should try to negotiate what's called a "pay to delete", which is a written agreement to pay in exchange for removing the collection from the report. If you only pay without negotiating an agreement like this, although the medical debt would be cleared, it wouldn't help your credit because the account would reflect the final payment when it was closed out.

Answer 3

Negotiate before you pay on old debts. If you just pay, you'll have less money AND bad credit.

Of course, if you aren't planning any major purchases, if you paid in full today, 12 months from now you'd have better credit, and 24 months from now your credit would be much better.

But if you just start making payments, you just update the tradeline and your score will probably get worse.

Answer 4

The quicker you clear that debt the faster your rating increases.  Just do not charge a thing, cash only, till that debt is paid.   Paying interest just makes someone else rich.