Question:

How can you bring up your credit score?

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My mother really needs to bring hers up because we need a new car and she's almost over her miles on a leased car. She had credit cards but doesn't use them anymore. From what I can make out through ramblings, she still owes them money. Not much, but still. She went to some credit counselor that was supposed to lower the interest rates and she gives them $200 a month to deal with her two credit cards. She has a mortgage and it has recently went up $300 and is now $800 due at the first of the month. She can't pay it on the first. She was hospitalized in November and missed weeks of work that has caused her to not be able to catch up on the mortgage payments. She's always one month behind. Her car note is $455. We have cell phones, but she only pays my bill, her fiance pay hers. (And his credit is not much better). I don't know the exact score because she will not let me check it even after I tell her that she needs to know it and the negative remarks if she wants to fix it. Brick wall.

Then there are bills like home phone, internet, cable and things that start to add up when your behind on the big stuff. She brings in less than $40,000 a year. Also, she does day-care through the county, but once the kids are 13, they are legally able to stay home alone and she's lost about $2,500 a month, which is a lot, esp. when you don't make much money in general.

She's considering dipping into her retirement fund and taking out what's left, $1,300 (she took some out a few years ago for HS tuition. I go to public schoool now BTW), to catch up and be even with her mortgage to bring her score up by Christmas. Is that a good idea?

Help? (She's gonna need her credit up when I go to college soon since I won't have any because I'll still be a minor)

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3 ANSWERS


  1. The whole scenario is a complete mess. But, don't feel bad. You're not alone. Our society has perpetuated the idea of credit, credit, credit. When actually the old timers had the right idea. If they couldn't afford they didn't buy it. In other words don't worry about the credit rating.  Don't go in debt any further!!! For some sound advice on credit go to www.daveramsey.com. I actually picked up an audio cassette of his book The Total Money Makeover a few years ago five $5 and it was the best $5 I ever spent. His financial advice is no nonsense and it really works. Dave is a multi millionaire now for the second time. The first time before he was thirty if I remember correctly ( by the way he lost it all because he made lots of bad financial choices and ended up filing bankruptcy) The second time he became a millionaire as he puts it he did it the right way "with no debt". I heard him talking one day on his radio show about the fact that he has no credit score whatsoever. After following his principles for the last few years I am currently debt free on everything including my home, cars, credit cards, motorcycles....everything. If you sacrifice and make some tough financial decisions now you can have a bright financial future and look forward to retiring with dignity and security.


  2. tell her to try experian or equifax they will for a small fee send out her credit report also she should advertise her day care services in shop windows or local newspapers people are always looking for good reliable childcare and are willing to  pay for it  

  3. Actually that's a bad idea, there are a lot of tax implications for taking draws from your retirement fund before the age of 55.

    She might need to consider filing bankruptcy if she's not able to make her payments on anything. If she's upside down on her house payments, then she may be facing a short sale or foreclosure.

    There's no way to raise her credit score that fast, it takes time. Payments need to be made on time, everytime. She'll need to pull her credit report and dispute items that aren't correct. The worse thing she can do is to start closing accounts adn stop paying on them, but she may have little choice.

    Maybe she should also consider getting a second job and cutting expenses. It doesn't look like now is the best time for her to be buying a new car.

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