Credit Question. Please Help!!!!?

Question

I stacked up about $7000 of debt about 5 years ago that went into default. About 6 months ago I paid it all off in full. My credit is pretty bad but it is getting better. What can I do to get it higher. Is there a card I can get? What can I do? I have no other forms of credit at the moment

Answer 1

Unfortunately you probably shouldnt have paid any of that debt off. #1 because it was probably past your states statue of limitations. #2 when you payoff debt you re-age the accounts and make them current which lowers your cret score. The only thing you can do now is to open 1 or 2 new credit cards and use them sparingly. Then you need to try and cleanup your credit by disputing the accounts. They are more liely to fall off because the lack of financial incentive now since you have paid them all of. Here is a link to the Top 5 credit companies out ther http://creditrepairreviews.net/. I would call a couple of these companies and see what they have to say.

Answer 2

Major card companies aren't too choosy, it shouldn't be too hard to get one (Visa or whatever). However  I would not go for a credit card from one of those big chain stores: the so-called credit ends up costing you a fortune.

Answer 3

Sanguine as it seems the use of credit creates a burden on the already oppressed. To take it's face value it is a derivative of owing ones soul to the company store. It would be wise to think of building wealth through the accumulation of assets proved to be strong or in the upswing. I'd seek opportunities for same rather than becoming obsessed over what could be a worthless venture.

Answer 4

Why in the world do you want to get more debt if you just paid off $7000. Debt is dumb, cash is King (Dave Ramsey). Why do you need a credit card? Open a checking account, get a debit card and pay cash for everything. If you cannot afford it you cannot have it. Check out my financial articles on ehow.

Just search: "xrayness" for all my articles. No more debt.

Answer 5

Negatives usually stay on your credit report for 7 years. You can get a secured card (where you pay an amount to the company and they hold it as collateral) which can be upgraded to a regular card in a year or so. The best thing to do would be to just pay your bills on time from here on out (I doubt you'd goof off again, anyway). Shop around at the credit card companies and see what options they have for you. Just don't apply for cards just to see if you can get them, because that reflects poorly on your credit rating. Pick one you really want and apply, if you don't get it, wait a year and try again. Good luck!

Also, if you go to Equifax.com and purchase a credit score (about $30) then they give you specific tips on how to boost your rating. It tells you what specifically is hurting or helping your score.

Answer 6

Try getting a credit card with a small limit.  I went thru Orchard Bank.  www.orchardbank.com  they give credit to those wanting to better their credit.

Answer 7

Hi,

I used "Credit Solution" 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://ub0.cc/63/h

Answer 8

You've gotten a lot of people's opinions here.  I would vote for the secured credit card because you will be limited to the amount set aside and it will build your credit, which is important, in my opinion.  I wouldn't want to have bad or no credit because then I probably wouldn't be able to buy my own house, among other things.

As also mentioned, for some things, it is better to have a credit card.  The first example that pops in my mind is renting a vehicle.  There will be a very high $ amount held on your debit card if that's all you have at your disposal, which could put quite a dent in your available cash.

Nothing wrong with the other answers given, it's just that different people have different views on credit.  You need to decide what yours is.

Good luck.

Edit to add:

Have you gotten your free annual credit reports this year?  Go to the offical site (not ones trying to sell you other things):

https://www.annualcreditreport.com/

Answer 9

You can use credit repair agency to fix your credit - for example this one - http://freecreditreport.sinfree.net - They can clean lots of bad stuff from your credit report - and do it much faster than yourself, so your credit will go up fast.

Answer 10

Although credit cards are likely to be the downfall of the human race as we know it, there is no argument that in some situations (like emergencies) it is important to have a credit card on you.

Go to www.creditnet.com.  Based on your credit rating, they will recommend cards you can get to help build back your credit.

Answer 11

I did the whole credit card thing, but I couldn't handle it and wanted to go over my limit. I would reccomend getting about a 500.00 dollar loan from a local bank and putting the money off to the side and then paying it back each month from the money that you borrowed. You'll end up paying a little more in the long run, but it's worth it to get your credit up. Good Luck!

Answer 12

Go get the book Total Money Makeover by Dave Ramsey.  He will teach you that you don't need credit to get ahead in life, that credit is just holding you down and taking your money that you could be saving for your future.  Cash is King!  "Live like no one else, so later, you can live like no one else."  But seriously, you don't need credit for anything (society likes to make you believe that you do).  Take the money that you would be paying a credit card and every month and put that into a good growth mutual fund.  You will make money off of that instead of throwing it away.