Question : Is there a way to repair my credit rating quickly after having a debt company?
I am now debt free but have been told that I will now NOT have a credit rating for 6 years as my accounts were defaulted after taking assistance from a debt management company but then paid off by my family?1) Is this true?2) Can anything be done to improve my credit rating?3) What about these credit repair companies?Dare I ask about a mortgage??
- asked by dlr0231
All Answers:
Answer #1
You have a credit rating but it will be extremelylow. The defaults will show for the next 6 yearsfrom the date they were issued. You can apply toadd a note to your credit rating, saying that thedebt was satisfied - have a search on the MotleyFool website for advice on this.My advice would beto stay away from credit repair agencies. there isvery little they can do, it's a matter of time. Basically, you won't be getting any credit for agood while unless it's at a very high rate ofinterest or from dodgy sources.
- answered by mambios
Answer #2
First of all, everyone who has credit has somesort of credit rating. If your accounts were paidoff, it should actually raise your score, but notknowing the facts I can't really say. As to nothaving credit rating for 6 years, I understandthat bad credit stays on for 7 years. You can trymyfico.com to get a credit rating. They give you30 days free. For instance if your credit reportdoes not show much activity or if you are juststarting out, myfico.com requires that you haveat least six months of paying a few credit cardsin order to get a credit score. It looks like youmay need to re-establish new credit if your creditreport was wiped clean or if your credit score islow. I suggest you open secured credit cards tore-establish credit (Wells Fargo, Orchard, Bank ofAmerica) are just some examples. Once you makepayments for six months, you should have a creditscore if you don't have one OR if you have a lowscore, it should raise your credit score. However, that depends on establishing good habitsof paying on time. Secured credit cards aregreat because once you prove to them you are agood customer after one year, they convert yourcredit cards to regular credit cards and anybalance from the secured credit cards are returnedto you, plus they report to all credit bureausyou're great paying abilities on a monthly basisthus raising your credit score, which is theultimate financial goal for those trying toreestablish credit. It IS doable. I did it! Now, I am enjoying Club 700 and all its perks butit took time, diligence and lots of patience.Goodluck.P.S. I agree STAY AWAY from credit repairagencies. They charge a lot for things you can doyourself and many times they don't help (see linksbelow) Get copies of all your credit reports anduse a monitoring system like myfico.com to helpyou stay on track.P.P.S. Get your financial lifeback on track and raise your credit score beforeyou think of a mortgage. Having a low score willget you the HIGHEST interest rates, so havepatience and RE-ESTABLISH your credit beforemaking such a big decision.
- answered by sunflow
Answer #3
I am just going to answer the mortgage part. Based on the information you provided and nobankruptcy's, you can still get a mortgage. Aslong as you can show and prove your income a bankwill give you a mortgage. There are a lot ofgreat products out there and as long as you canput down a decent down payment and once again showincome you will be good. I would suggest going toa well established bank so you are not going toget screwed by a broker (Wachovia, BOA, Chase,Citibank)
- answered by keepyoureyeswideopen
Answer #4
I was in a real mess with my mortgage had to getmy ex of it and the payments i was making at thetime were really high. Its taken me 6 months toget it sorted due to one reason and another, but iwas offered a really good rate and my mortgagepayments have dropped by 250 per month. Thismortgage is also on a fixed rate for the next 3years, which means in this time i can repair mycredit file and then be able to get an even bettermortgage deal in the future.
- answered by dyno
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