Credit Help?

Question

I was a victim of the mortgage crisis that's hitting the economy, but was able to get out barely. My bills and credit took a serious blow. How can someone like me rebuild their credit after taking a serious financial attack on my credit?

Answer 1

There is no need to pay someone to help you with credit problems.  There are a number of very simple things to do:

1.  Stop using your existing revolving accounts, i.e. credit cards, department stores, gas stations, unless you have no outstanding balance at this time and can afford to pay off every penny every month.

2.  Consolidate existing  balances to one accounts that has lowest interest rate.  Then close all the accounts with zero balance.

3.  Negotiate with the company of the one remaining account to either a lower interest rate or freeze interest charges.  And be prepared to pay a substantial amount higher than minimum payment every month.

At the mean time, make sure you pay all your bills on time and DO NOT apply for any more credit or loan.  

Best wishes.

Answer 2

get a debt consolidator and they will help you put all ur bills together in one lump sum and you will have a lower interest rate and everything. It will help you and build ur credit.

Answer 3

Your best bet is to get a secured credit card that doesn't indicate it's secured on your credit report.  I think that Capital One has one of those.  I know they use to.  Put as large an amount as possible in the security account so you have decent credit line showing on the credit report.  Use the card every month.  Buy a few things you would buy anyway.  Pay the card ON TIME - ALWAYS.  If you need to use the card for something else, like an emergency, that's ok.  It's even ok if you don't pay it off all at once.  Just make sure you pay at least the minimum and ALWAYS ON TIME.  Yes, you will pay a boatload of interest.

In the meantime, get a copy of each of your credit reports.  Note which of your utilities are reporting - many do not.  Pay those bills on time and in full always.  They have to be first line if there are problems.

Do this for a few years and you will probably start getting solicitations for non-secured credit cards.  They are pretty high interest but they're unsecured.  Do some on-line research and apply for the best one.  Treat it like gold.  Don't abuse it and ALWAYS PAY IT ON TIME.

Bad credit stays on your report for 7 years.  It's a long time but if you use it wisely, you can start the 8th year looking fabulous.

Good luck.

Answer 4

orchard bank should qualify you for a low limit credit card to start.

or look into a wells fargo secured card.

finally,ask lasalle bank in your area if they still have the "dreams begin" credit building program.

Finally,most credit unions will have some type of credit builder micro loan programs to help you in your quest.

pay on time,don't over apply for too much credit...and you will be back in business in about 18months of perfect payments .

Good luck.

Answer 5

You would need to get a financial adviser or a company that would work with you privately to help you with your financial problems. It is very difficult to do it on your own unless you are financially savvy, and understand all the ins and outs of credit.

My best advice for you here is to find someone that will work with you privately. You could go into a bank and ask the branch manager if they know and recommend anyone you can contact. If he/she doesn't know anyone, you will need to contact a private finance company that could help you. It may cost a little bit of money, but it will be worth it in the future.

I would like to wish you well in rebuilding your credit.