Controlling Your Debt – How To Boost Your Credit Score

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Controlling Your Debt: Using Your Credit Score

A credit score acts as if your high school report card. It provides a three-digit grade, which reflects a person’s credit worthiness to potential creditors, banks, insurance companies, mortgage companies and also employers. The higher the score, the greater has to be your chances of availing credit. This is how to control your financial obligations, and boost your credit rating.

Review Your Creidt Report

Pposite are three key cretid reporting agencies these days, and through these organizations, you can get a copy of one’s credit report, for you to strongly evaluate it. Just like using a fine- comb to be able to weed out tangles and loose hair, you should review your credit report having a keen eye with regard to incorrect data, or any inconsistencies. Have a look at any incorrect obligations, credit limits, or selection data that you firmly feel is not the one you have. It’s a fact that some typing errors or numerical glitches usually show up on some credit reports therefoe you need to get a replicate of your credit report at least one time a year.

Pay Your own Obligations On Time

Be sure you pay off all types of debt or expenses on time. Late payments or any delinquencies is bound to have a major influence on your credit score. If you forget to pay a couple of of your bills promptly, prepare to have some red marks or even black eyes on your credit history. To steer free from any delinquencies, try setting up your bills for automated withdrawal from your individual ckeching account, so that you won’t have to deal with any selection agency in the future.

Harmony Your Credit Card Spending

Whether or not you have one, 2 or 3 credit cards, remember to invest wisely and balance your credit card obligations. Without the money to pay a preexisting credit card balance at the moment, attempt getting a loan from a relative or relative, which means that your debts can be cancelled from your card, and your credit report also gets a useful boost.

Never Perform Loan Shopping

Whenever you continually shop for loans, or submit to as many loan companies within just two weeks, the credit score will surely experience a major drop. Try to do a cluster associated with loan inquiries within a proper period of time, like a single every two weeks, so that your credit score remains strong, as well as won’t have to suffer major drops within credibility with lenders.

According to credit experts, a credit score of 3 hundred to 580 indicates that you’ll only get authorized for loans which offer very high interest rates. A credit score of 651 to be able to 710 means that you’ll be able to acquire credit at moderate interest rates, while a score of 751 and up indicates that you’ll be able to get the most aggressive and flexible loan packages available in the market today.

Comments: 25

  1. Renay February 24, 2013 at 12:53 pm Reply

    The house that I got under my name for my parents has officially foreclosed 🙁 Tried to get it sold in time….but it didn’t work out. I’m also the co-signer for my car and me and the primary person agreed that I would pay half the payment. Every month I would give her my half. Tried to apply for a new car & found out that we were 3 payments behind!!! Had to take control of the account so I’ve been making 2 car payments the past 3 months to get caught up. I’m now up-to-date but this plus my foreclosure and 2 small credit card debts (one was written off and the other is still in collections..less than $250/each) have caused my score to go WAY down. I also have a school loan but haven’t been late on any of my payments. I don’t have any other lines of credit than this. What in the world can I do to get this back up (I believe my score is about 521)?? I’m 23 yrs old and I want to do everything I can now so that I won’t struggle in the future.

  2. Stacey March 1, 2013 at 4:12 pm Reply

    Ok, so I asked a question very recently. I would like to establish credit, and good at that. I have a credit card. Does it matter the price of things to buy? Would I upp my credit score by buying something expensive an paying that off, or could I just use it for things such as food shopping and gas? I would rather buy things I need instead of wasteful spending. And how long would it take to establish good credit? Is one payoff enough or does it need to be for months? I would have no problem paying it off I would just like to know.

    thanks!

  3. Seth June 26, 2013 at 9:51 pm Reply

    I have a bankruptcy from 2005. Other than that, my credit has always been good. My credit score is already at a 650, but I’d like to get it over 700. How can I go about doing this? I’m about to have no debt whatsoever, except for student loans which I won’t have to start paying until after I graduate in 2 1/2 years..what can I do to boost my credit score to be ready to buy a house in 3 years? I’m thinking long term here so any ideas will help.

  4. Nelson July 5, 2013 at 1:35 pm Reply

    Immediately afterwards.

  5. Arianne August 9, 2013 at 9:17 pm Reply

    I am wanting to buy a house in the next 2 years. I just ordered my credit score and it is 568. About a month ago, it was 555. I got it through equifax and they have a simulator on there that says if you do this….your score would be….. It said my best plan of action was to pay off a revolving credit card to 90%. The card is only a $200 limit and right now, it is at 70% paid. It said if I did that, my score should increase to between 648-688. That’s a huge difference of what I am now. Does that make sense? It also said that if I paid my bills on time for 1 month, it would be 588-618. 6 months 598-628 and 12 months 618-658.

    Does all of this sound accurate? I thought that it was really hard to get your score up.
    I got the credit card to improve my credit….as I was advised to do. I was told to keep it around 70%, and that’s what I was doing….until Equifax just said to keep it around 90%. There would only be a balance of $20 and I thought that it was better to leave some on it than to pay it off.
    I also do have installement loans. I have a car loan that was opened about 2 years ago and 1 personal loan of $1000 that has a balance now of 482.

  6. Hilton August 16, 2013 at 8:54 pm Reply

    I literally have no credit history at all. I signed up for a credit card through my college, but now I’m thinking it’s better if I wait a little while before I get one, just so I’m not tempted to use it for expenses that I can’t pay off. The last thing I want to do is start my college career with debt. So I haven’t even activated the card yet. What happens if I cancel it now, without having used it and having no credit history at all? Will this impact my credit rating negatively? Or will it have no effect since I’ve never used credit of any kind before?

  7. Nickolas August 19, 2013 at 12:38 pm Reply

    i am 23 years old, i only make just less than $30000 a year. Ive had plenty of delinquent accounts about four years ago (never thought id need to borrow money) when i was a stupid kid. i would like to buy a house on my own, the calculators say a payment of 230 dollars a month, which is A LOT less than my rent is now. can i do this? i don’t want to be like one of those douche bags in the past who took loans for more than they could afford (my parents). i also don’t want to go in on a loan with my girl friend as she has an even lower score than mine, oodles out in school loans and a credit card that is out of control (i tried to tell her not to use it). WHAT DO I DO? will i be renting for a few more years? will there still be nice homes with a dump on the living room carpet for dirt cheep? answers PLEASE!!!!. please excuse crude humor this is a serious inquiry
    so how do i raise my credit score? Ive tried to buy things i could pay in cash on credit but all that does is get me denied and i acquire hard Inquiries. is the American dream hopeless anymore?
    cash is nothing, ive got half that i could use to down pay.
    i owe nothing, there is nothing to pay down. question being how do i build the report so lenders will give up the doe i seek

  8. Grant September 4, 2013 at 3:39 am Reply

    I had a terrible marriage with a very irresponsible girl, whom refused to work to help pay for the debt she created.Therefore we lost the house had a repossesion of a vehicle and tons of other debt all of which im through the courts responsible for. Needless to say i also have three minor children whom i pay childsupport for. I need to know the best and fastest way i can get control of my debt and get my credit fixed,i would like to buy another house asap. I should also mention I had to file bankruptcy as a result of this marriage to this girl about 6-7 yrs ago.HELP

  9. Moira September 13, 2013 at 2:56 pm Reply

    Not too long ago I found out that my girlfriend’s previous vehicle was repossessed. The one she drives now belongs to her mom and her dad makes the note. Apparently she couldn’t handle the $700/mo car payment anymore and she gave it back (on her dad’s advice, according to her). Anyway. as far as I know, a repo is a repo, voluntary or not. She was in debt counseling too to pay off about 4 credit cards that are now charge offs. I’ve been guiding her in paying off those cards now since the debt counseling program she had was a rip-off. But still there will be the repo. After they auctioned off the car, her credit union says she now owes a difference of 13k. Apparently she gave the car back in July 2010, and then they sent her the bill in April 2011. Anyway. her FICO score is now in the low 500s. I’m trying to help boost her score back into 600s by summer. But I think this repo will still be a problem. I’m not trying to spend any of my money on this. I owe 13k on my truck now and got like 30 payments left. I have a 730-750 credit score. She doesn’t have the income to pay off that repo and get a new car. it could take her years. I’ve looked at her budget, she can barely save 2k in one year on her salary. From my numbers, she was probably paying about 13% interest on the repo’ed car. She recently moved in and this may help her situation some as she was not doing good on her own. She will be driving her mom’s car for 2 years now by this summer and I believe she needs to give it back at some point. I really don’t want to be on the hook for any this. You would think she should have tons of money saved by now, not having a car payment for a year and a half. NOPE. So clearly she still hasn’t learned to live within her means. Doesn’t help that I make 4xs what she makes. She sees me spending and thinks she supposed to be able to as well. Will she able to get the loan with the repo if I can get her score up w/o paying it? What can I do to help and try to keep my hands clean as possible.
    I wouldn’t consider her a candidate for bankruptcy as most she has only about 2,500 in credit card debt, soon to be settled. after that will be the remaining 13k for the repo. Even with a bankruptcy, which I have seen people do over less, would just reset her already long clock to credit recovery. She really between a rock and hard place and this mostly to her knee jerk reaction to her financial situation a couple years ago and not making sound decision. Though her dad encouraged her to get the car in the first place. He should’ve helped her pay for it that let her f*** up her credit.
    I’ve had 22k in back taxes, back child support and, and 15k worth of charged off credit cards at one time. and i settled out some and paid off the rest and then turned around and bought a house. But couldn’t have done it w/o tripling my income. Which I did. She can’t do that.
    Her dad also seems to be an impulsive spender and as of late his finances are not that great either or so I heard. She is daddy’s princess and if he say’s “if you like it, get it”, to her that generally means that he is going to help her cover it. Sending her to an attorney was the first thing I said. They told her that she should just pay it off. Keep driving mom and dad’s car as long as she can.

  10. Hubert September 19, 2013 at 7:40 am Reply

    Ok, I asked a similar q, but need advice from another perspective:

    I have several past due accounts on my credit report. Nothing is in danger of being repossessed. Which accounts can I pay from the choices below that will boost my score the fastest?

    1. The OLDEST account that has a negative code
    2. The past due account with the HIGHEST BALANCE
    3. should I pay a past due car loan BEFORE a past due medical bill OR a past due store account? My bank is fine w me having the car a month or two past due. So, credit report wise, is it better for me to catch this up or to pay up #1 or #2 above?

    Which of the three tactics produces the fastest boost to credit scores?
    TIA

  11. Kecia October 7, 2013 at 4:04 pm Reply

    While its not alot of money maybe $1500, its mostly stuff that went to collections and have been there since the early 00’s. I understand that Ive been very neglectful on this but Im trying now. On the Credir report theres no contact info for the companies that appear and I have no documentation that has any contact info either. How do i rectify this? Also, how can I rebuild any credit if i keep getting denied everywhere i go such as Best Buy, Sears, basically anywhere that offers any kind of financing? My Credit score is about 580 average from the 3 reporting agencies. Please offer advice. Useful advice please? Thanks

  12. Tambra October 28, 2013 at 4:55 pm Reply

    I am 23yrs old and I discovered yesterday that my Credit was considered “low.” I have a $322 Credit Card I haven’t paid off for a year ($100 was a purchase and the rest is interest 33.2% and late fees) and another bill that is $14 that is in Collections. I know this sounds pretty silly b/c all of these amounts are minimal but I was in school full time when all of this came about and didn’t have a job so what money was sent to me I used it on food.

    My Question is… Give me ways to acquire good Credit!! & how long does it take to bring up your Credit Score?

  13. Jacque October 28, 2013 at 9:02 pm Reply

    I have about 18 bad debts on my report most of which will be gone in two years. Should I let them click off or pay them off? what will my score look like etiher way? Is there a profesional I should talk to? Would that be a lawyer or a credit counsler?

  14. Alec November 5, 2013 at 6:45 pm Reply

    I was really bad at paying on time. So my credit score is kind of bad. However, I just finished paying off my credit cards. What do I do, to start all over. I want a good credit score so I can purchase a home within 2 years.

  15. Faustino December 3, 2013 at 2:07 pm Reply

    I know that if you don’t pay the bills the co signer becomes responsible but in that case will their credit score take the fall? Also, if you are really good about your card will their score reap the rewards?
    my parents actually co signed for ME

  16. Bernardo December 21, 2013 at 9:56 pm Reply

    I have minimal debt on my credit rreport (less than $2000) but there is some that went to collection and is still outstanding, any suggestions on how to repair and rebuild my credit rating? Should I go to credit councelling? or is that also a negative on your credit report??

  17. Katherina December 23, 2013 at 6:58 am Reply

    My boyfriend is filling bankruptcy soon…his divorce was messy and left him way in debt. As for me, I have wonderful credit. We plan to marry fairly soon, how will this effect us in the future. Will his credit automatically become mine? Will co-signing with him later help to rebuild his credit…or just mess up mine?

  18. Delmar December 23, 2013 at 7:10 am Reply

    I have ignored my credit problems for years. I don’t want that life anymore. I don’t want to be treated like a third rate citizen anymore. I want a house, a new car etc…

    I don’t know what the best route is though. It is mostly all credit cards. There are couple other little things. I would 60% of the negative on my credit report is six years old. The rest is about 1 year old.

    I know when you pay collections off it drops your score. I am ok with that if it will get better afterwards. Do I pay off all of them? After seven years all negative reports have to removed right?

    I have two credit cards that are current and active. I know that will help boost my score too.

    What is the best to start to repair your credit? I am overwhelmed and don’t know where to start. Thank you!
    Also should I try to negotiate with the collection agencies? Do I need everything in writing from them?

    Maybe yall know of some good books I could read?

  19. Bernard February 22, 2014 at 4:20 am Reply

    My credit dropped from 700+ down to 380(?). If I make ALL of my payments on time and payoff my car 2 1/2 years earlier, does this boost my credit score?

  20. Wilmer February 22, 2014 at 6:14 am Reply

    I don’t understand what credit score is..can someone explain in very simple terms? and what a good and bad credit score is? How do you get a good score or a bad one??

  21. Evie February 22, 2014 at 8:42 am Reply

    What are some good companies to get a secured credit card from? I am currently paying off hospital bills and never had a credit score in my life. I’m 36yo and would like to know what it’s like to have credit for once. I know credit cards are bad. I’m mature enough to handle knowing I only want one to help me raise my credit score in case I want a house or need a small loan in the future for a car, etc. Thanks for any help.
    I’m not happy with the first 3 answers because I knew all that stuff already. I already got the hospital to reduce my bills. I have a used car and I drive myself to work and back, but in case it breaks down I would like to be able to get a loan with no problem to get another used car for a couple of grand should the unfortunate occasion arise. I already have my credit reports and I already know my credit score is non-existent. That is why I’m asking about Secured Credit Cards.

  22. Kiera February 22, 2014 at 9:07 am Reply

    For the past couple of years, I have screw up my credit very badly. So today, I want to put myself together and get it repaired as much as I could. So at this point, I am looking for a company or some credit expert that would help me in repairing my credit. so I could get on with my life.

    Okay for my situation, I have about 10 accounts open for collection and they are 8 accounts with debts from $100 – $600. Also one account from Toyota Auto Finance with over 6 late payments, then I have already sold the car and paid off my entire loan. Last account which is very tough, it is from Audi Financial, which I have a Repo on! I can pay off all my debts, but would that help? I need to have a clean and strong credit to be built. Someone please advise or help.

  23. Cherilyn March 26, 2014 at 11:21 am Reply

    I am 22 years old… and I have really really bad credit… It all started on the day I turned 18 years old. I tried applying for a credit card online and was denied. So I tried again and again and again, and was denied for every single credit card I applied for. That resulted in millions of inquiries on my credit report.

    To make this long story short, I have about 10 things in collections because I didn’t pay the bills (including 2 banks that I owe about $700 each to because of bounced checks). I am in such a bind because creditors are calling my house everyday and it’s not a life I want to live anymore. It’s embarrassing. I tried using a debt consolidation program, but I couldn’t even make payments on time to them and they terminated my account. I am not looking for someone to “tell me off” on here, so please spare me the added stress. My mother yells at me almost every day about it, and I just can’t handle it.I know I made mistakes. I am trying to fix them before it gets out of control even more.

    What should I do? AHH!

  24. Del May 6, 2014 at 2:53 pm Reply

    Over the last 6 months I have managed to pay off all of my bad/past due debt (lots ramen noodles :o) ) I have just paid off my last credit debt and now have no delinquent credit. Some of these have been behind for quite some time. My credit score right now is around 550. The only credit I do have in my name right now is my leased vehicle which is up at the beginning of June. I am planning on buying a new car that I plan on making all payments on time to help boost my credit. Are there any other ways to raise my credit score and of those, what ways are the fastest? I can’t tell you what a weight has been lifted off of my shoulders and how much I look forward to being able to answer my phone again for fear of collectors. Thanks in advance for all responses!

  25. Annice June 20, 2014 at 11:31 am Reply

    Hello, I have bad credit scores..in stead of paying off my past debt since 98% of it is over 10 years old I just waited for it to fall off and stuck to cash only since. Now I thought I’d rebuild my credit getting a capital one pre-paid mastercard I put in a deposit and they sent me a card with half of it already loaded on the card I then every month loaded and used but never went over the amount I had on the card. I slowly built up to having almost 300 on the card every month and paid it off in full the next following month on time…when i say paying it off what I meant is putting the 300 back on the card…it was a revolving spending..never went over and if I didn’t spend the 300 in that month than it would still be on there the next month…there were one or two months I had where I didn’t use it at all and my bill was zero amount due. So I did this for about 6-7 months thinking maybe I have been faithful enough maybe I could ask for an increase of a hundred or two hundred dollars without me having to put the cash on the card..they would extend it to me as credit. When I spoke to them they told me that I would have to log in online and apply for a regular credit card that the card I had does not extend credit lines. Annoyed I decided okay I will apply…doing so I was declined. I check my credit scores and they were lowered or the same as before I got the card…I was thinking what the hell!?? I thought this card would do me some good but it’s done nothing for me. So I decided to spend the rest of the money I had put on the card and not reload it anymore. I then about 2 months later got a bill in the mail saying I owe money…wtf…this is a pre-paid card I do not owe capital one any money they did not extend credit to me..they did not advance me funds…I simply put my hard working cash on a piece of plastic hoping it would boost my scores but it did absolutely nothing. Now I am pissed a year later I still have the card but do not use it and capital one has sent this amount to collections I contacted them they tell me it’s ” like” a credit card so I owe them money…how can you owe money to someone you never borrowed money from to begin with???? There are no interest on the card because of my good standing and putting full amount on it every month. I mean say I put on there $200 in June…I spent $50..in July the bill comes in..my min. is $15 ( that was set by them I had no control over this) but instead of me paying the $15 I ignored the $50 and put on $70…the reason is they will not allow me to put more than 10% plus the “balance” owed at one time but right after I finish doing that transaction I could in the same day back to back put another $200 on the card if I like so if I didn’t use any of the money on the card I would have available to me a total of $470…if I used all that up the next month I couldn’t use the card until I put money back on it…if I paid the min. $15 on the next bill than I only can use $15…to me it’s the same as a gift card..but the only difference is it’s supposed to be reporting to the credit bureaus…which was never done until I stop putting more money on the card. Since I could not get my cash back I just spent it and chose not to reload it. Now I look at my report and I find out the last amount I put on the card they are trying to collect against me!! Can they do this?!?! I already paid any fees like annual fees and crap ahead of time so that’s not what they are going after me for..right now no one at capital one can help me and I have used identity guard to dispute it twice but it’s done nothing to fix it and in fact it lowered one of my scores even more by a few points! The amount is very low I mean less than $300…but it’s the principal behind it all..I shouldn’t have to pay AGAIN!…I also have a 3 year old t-mobile account debt that needs to be taken care of but that’s another story but other than that I don’t have any negative factors that I see…I owe nothing… sorry this is long but thanks for reading and helping me out! 🙂

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