Sunday, November 1st, 2009
I have paid off almost all of my debt but my credit is horrible. How can I repair it ASAP?
lovemusicjunky asked:
Unfortunately, I was jobless and wasn’t able to pay my bills for a whole year. Sad I know. Thankfully, I got a great job and I have just been able to pay off all my debt of $6,000 in the last two months. My credit is obviously damaged. I can’t even get cable! I owe my college $500 dollars and that will be taken care of at the end of the month. So I will be free of all debt. On most of them I have negotiated with them in order to pay it off right away for cheaper rates. Does that make a difference on the credit report? Also, now that I am debt free how can I go about repairing it? I know that it takes 7 years but is there anything that can clear it sooner? Just in case the cards were Victoria Secret,Dell, Wells Fargo, Sprint then of course my schooling. Any advice will be appreciated! Thanks.
Unfortunately, I was jobless and wasn’t able to pay my bills for a whole year. Sad I know. Thankfully, I got a great job and I have just been able to pay off all my debt of $6,000 in the last two months. My credit is obviously damaged. I can’t even get cable! I owe my college $500 dollars and that will be taken care of at the end of the month. So I will be free of all debt. On most of them I have negotiated with them in order to pay it off right away for cheaper rates. Does that make a difference on the credit report? Also, now that I am debt free how can I go about repairing it? I know that it takes 7 years but is there anything that can clear it sooner? Just in case the cards were Victoria Secret,Dell, Wells Fargo, Sprint then of course my schooling. Any advice will be appreciated! Thanks.
November 2nd, 2009 at 3:34 am
Congratulations! Now you just have to wait. If you still have any credit accounts open, keep them open but do not use them. As time goes by your credit score will begin to improve. As long as you stay debt free and pay your bills on time, your score will get better and it won’t take 7 years. As far as negotiating a lower rate, it will probably be noted as paid for less than the original balance. This means when you do apply for credit you will have to explain the circumstances. You can also write to the credit reporting agencies and have them add a comment to your credit report explaining what happened.