Posted on: 14th May, 2009 08:02 am
Hi my husband and I were foreclosed on in Arpil 08 and we are no renting. we have been on time wtih every payment for our rent. We know that owning another home right now is not happening and we're fine renting for now. what we would like to do is repair our credit. I seen where it was said to get a major credit card but my credit score is only 528 so a major credit card is out of the question as well what can we do.
HI, Getting a secured credit card from a bank will help you build credit. You have to put money up front. Say if you put up 500 you will get 500 credit limit and they report to the credit bureaus monthly and can help re build credit.
and there's a bit more to it than that, but getting a secured card is a good idea. once you get such a card, please be certain to use it sparingly. for example, if you use it once each month and then pay the bill in full when you receive it, you'll find a favorable effect on your credit score. this won't happen overnight, of course.
as for other things you can do...you would, preferably have at least 3 lines of trade on your credit report that will be favorable to you. so...obtaining that many credit cards, or loans, etc. would be beneficial to you over the long haul. you need to be completely on top of whatever new debt you acquire, however. one time late will undo whatever you may have accomplished, and you'll be starting over.
if you have any judgments or old collections, it is advisable to make arrangements to pay them off. this will also help you in rehabilitating your scores.
as for other things you can do...you would, preferably have at least 3 lines of trade on your credit report that will be favorable to you. so...obtaining that many credit cards, or loans, etc. would be beneficial to you over the long haul. you need to be completely on top of whatever new debt you acquire, however. one time late will undo whatever you may have accomplished, and you'll be starting over.
if you have any judgments or old collections, it is advisable to make arrangements to pay them off. this will also help you in rehabilitating your scores.
Your credit score is calcuted from lot of differnt data in yoru credit report.
35% - Payment History
30% - Amount Owed
15% - length of Credit
10% - New credit
10% - Types of Credit
So getting a new card will probably help a little bit as you can see above. 10% of your score is based on the New Credit.
Based on the above chart you want hit two areas where you will see a major impact. Payment History and Amount Owed.
Payment Histroy - Probably you may not be able to change what happned in the past, but probebly you want to keep making payments on time goign forward ( if you are doign it already, you are on track).
Amount Owed - Pay off any debt you have ( If possible). This will help you to improve your score quickly.
Also do nto apply for any new credit cards or loans unless you really need it. Normally before you get approved the lenders and credit card companies run a creidt report to check your currne tstatus, depending on a soft pull or a hard pull, you will lose some points on your credit report.
Good luck.
35% - Payment History
30% - Amount Owed
15% - length of Credit
10% - New credit
10% - Types of Credit
So getting a new card will probably help a little bit as you can see above. 10% of your score is based on the New Credit.
Based on the above chart you want hit two areas where you will see a major impact. Payment History and Amount Owed.
Payment Histroy - Probably you may not be able to change what happned in the past, but probebly you want to keep making payments on time goign forward ( if you are doign it already, you are on track).
Amount Owed - Pay off any debt you have ( If possible). This will help you to improve your score quickly.
Also do nto apply for any new credit cards or loans unless you really need it. Normally before you get approved the lenders and credit card companies run a creidt report to check your currne tstatus, depending on a soft pull or a hard pull, you will lose some points on your credit report.
Good luck.