What is the best and fastest way to repair my credit?

Question

I have four cc closed, I'm paid off on two of them. The other two I'm working on. I have four negative items on TransUnion. What I'm doing is paying off one at a time. I have 2 cc still open and I've been paying them on time. After I'm paid off with all of them, I was gonna get a cc from my credit union, and budget myself with it. Any suggestions y'all think I should take??? Thanx y'all.

Answer 1

First of all, get a big piece of paper, and rank all your credit card debts from the highest interest rate to the lowest.  The amount outstanding doesn't matter.  It's the interest rate that is hurting you.  Put the debt with the highest interest rate at the top, and work your way down.

Next, pay the minimum repayments on all the debts except the one with the highest interest rate.  On that one, pay the minimum, and whatever extra you can afford.  That debt is the priority.  Once it is gone, move your extra repayment onto the debt with the next highest rate, and pay it off as the priority, while paying the minimum on the other debts.

That is the fastest and cheapest way to clear your debts.  

I would stop closing credit card accounts, because you can't fix your damaged credit history if you've closed the accounts.  Having them open gives you something to work with.

When you've finally got yourself debt free, keep one card, and use it for one regular weekly purchase, and then repay it with extra money, so that it is always 'in the black'.  For example, if the card has a thousand dollar limit, put an extra dollar in so that you've actually got $1001 available.  That will improve your credit history and help to undo some of the damage.

Best wishes

Answer 2

paying your bills is the fastest way.  Also, stop closing credit card accounts.  That will actually hurt you in the short term and wont do anything for you long term.   You should have 2-3 credit cards and pay them off every month.  (technically if you keep a 20% balance its supposed to raise your score, but to me thats silly to pay interest just to have a higher credit score)  Any time your balance goes over 36% your score starts to go down (unless you pay it off every month)  If your balance goes over 50% it goes down even more, and over 75% even worse.

Answer 3

Good credit takes time but there are a few ways to move along the process. See Raising Your Credit Score

You can find more info here:

http://debt.knowledged.info/credit_card....

All the best to you.