How to fix my credit?

Question

I need to find out how I can fix my credit within the next year or so. I fell behind in so many of my bills and screwed up my credit when I moved away for school. My credit score is below a 500 and I am having a hard time keeping up with all my bills. I work all the time and I dont go out and spend money and buy stuff. I try to save my money and pay things off but I am having so much trouble. I am 27 and still trying to finish school which I will complete within the next year and a half and I work close to full time as a waitress. I really want to up my fico score and pay off all my bills and correct my credit. Someone with knowledge about this....PLEASE help me-

Answer 1

First using the last few months, figure out exactly how much you owe on everything, how much you earn and how much you are spending each month and on what. Track all of your spending...most people are surprised to see how much they spend on little purchases.

Next start figuring out a budget based on your income.  Look at your bills and what you can decrease...no cable, no internet, cheapest phone plans, etc.  Figure out how much you can afford to pay on your debts.  Start with the highest interest rate first and pay the most to it with minimum payments to the other debts.

Answer 2

You are not going to be able to fix your credit in the next year or so,  even if you found a better paying full time job and kept the waitress job.

First, make yourself a strict budget.  Eliminate all the extras -- eating out, new clothes, cell phone, etc.  Carry a notepad and mark down everything you spend money on.  You will be amazed at how much money you are wasting.  You need to get a handle on your current bills before you tackle the defaulted stuff.

You may consider contact Consumer Credit Counseling Service.  Check here for the one near you:  http://www.nfcc.org/.  They are a legit, non-profit and can look at your finances and advice you how to proceed.

Answer 3

To raise your credit score you need to do two things:

1 - add positive things to your credit records.  Such as paying your bills on time!

2 - Remove negative things from your records.  These may be mistakes made by the credit report companies or bills you haven’t paid!

If your problems aren’t too bad or too complicated than you can do this yourself.  This review site gives you e-books to explain the process and guide you through it:

if your problem is complex - or you just don’t have the time or patience to do it yourself then you will want to use a credit repair company.  This review site will guide you to the three best companies to use:

Good Luck!

Answer 4

What you need to do is take all the things you owe and consolidate it. Get yourself a cosignor if you need one and go to a finance company and get a loan to pay off all your debt. That way you have one monthly payment to a good debt, instead of several monthly payments to bad debts.

If its monthly service bills that you are spending beyond your means on, then sit down and look at what you really need and what is just a luxury, and start making sacrifices.

Answer 5

It seems like your biggest concern right now should be getting those bills paid and finishing school.  Your credit score should be the least of your worries.  If you manage to pay your bills on time until you graduate, it will help your credit score.

Have you talked to your creditors about payment plans and possibly negotiating a better interest rate?  Have you looked into a student loan to possibly get you through to graduation?  

Good luck to you.

Answer 6

You need to make a list of who you owe and how much.  Then you need to make a plan to get it paid off.  There is no easy way out.  You can probably find credit counseling but you can also do it yourself.

Contact the various creditors and ask them to lower the interest rate as long as you pay regularly and keep your commitment to them.  

You didn't get in this deep in a short period of time and it will take awhile to get out of it but it is worth the effort.  If you are in college, there may be a resource there.  A class in personal finance might also be a good idea.