Posted on: 29th Jun, 2011 01:49 am
I have the worst credit record and my credit scores are awfully terrible… One of my friends advised me that if I wait long enough and don't incur any further debts, then my credit record will automatically become good. I have my doubts. How true is this?
Your friend is partially true. Any negative item will remain in your credit report for 7 years. After that, it will get dropped from your report. Moreover, negative information loses its impact on your credit score with time. However, it is always better to take initiative in order to improve your credit record. You can check out the given page in order to know some steps to improve your credit: http://www.mortgagefit.com/credit-rating/credit-repair.html
You can also be added on to anothers store card, or credit card. Its called being an "authorized user". You would benefit from the other party using and paying there card. You can also go to a credit union and open up a secured card to help you re-establish your credit. Good Luck
The above are suggestions about what you can do. I agree, but at the same time, I urge you to seek out new credit that you can handle responsibly, and by so doing, can improve your record much more quickly. Waiting until the negative data drops off due to age will result in your own dropping off due to age without the benefit of having a clean payment record.
Chris makes a cogent point about a secured credit card. It won't hurt to have a couple if you can find them. Just make sure that you use such credit cards sparingly, pay them off when the bills comes, ensure that you pay promptly at all times, and strive to a higher credit limit as soon as you can.
One of the key components of a credit score is usage. A card with a high limit and low balance will garner far more points than one on which you owe almost as much as your credit limit is.
Chris makes a cogent point about a secured credit card. It won't hurt to have a couple if you can find them. Just make sure that you use such credit cards sparingly, pay them off when the bills comes, ensure that you pay promptly at all times, and strive to a higher credit limit as soon as you can.
One of the key components of a credit score is usage. A card with a high limit and low balance will garner far more points than one on which you owe almost as much as your credit limit is.
This atricle achieved exactly what I wanted it to achieve.
What's that, Reegan?