I ran credit and it was 540, I paid everything of except 3 items, I am in the process of trying to pay them

Asked by Gilma, Long Beach, CA Sat Jun 6, 2009

of. Do you think I can get a good since I paid almost everything of? What can I do to raise my credit score up with out opening new credit cards ? thanks,GVega

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Bob Georgiou, Agent, Danville, CA
Sat Jun 6, 2009
There are legitimate credit repair services available who can help.

Send me a private e-mail and I will provide you a resource.
Web Reference:  http://bob2sell.com
1 vote
Hannah Flieg…, Agent, Larkspur, CA
Sat Jun 6, 2009
Hi Gilma,

You might need credit repair if you had late payments, debt settlements, medical collections, etc. If you were always current then you might just need a credit score boost. Once you pay off all your credit card debt then your score should recover naturally it might take 4 months or so. Do not open new cards this will not help your credit rating. I hope this helps. If you do need credit repair i can assist you with that. Good luck!

1 vote
JANE WHITTEN, , Long Beach, CA
Sat Jun 6, 2009
Hi Gilma: You are to be congratulated on your effort to improve your credit ... Just to let you know your credit score is a result of several factors. The ratio of low balances to limit (less than 30%); the type of accounts (revolving vs. installment); the age of the account (the older the better 3+ years); the number of accounts; the number of credit inquiries in the last 12 months; your payment history (especially in the LAST 12 MONTHS) .

Without knowing your particular situation ... I would NOT ADVISE you open another account.

Just a little history re: Judgments, tax leins, collection accounts ... they all are handled differentely when it comes to getting your credit ready to get a mortgage loan.

Regarding (life happens type of bad credit) ... the further you get away (time wise) from any late payments or charged off collection accounts the less of an impact they have ... but say you have a collection account that was charged off 12 months ago, then you pay it off and that brings the last activity as to very recent. ... you did good by paying off your account but you actually lowered your score.

You need to pay off your accounts but there is a way to do it and not have it hurt your score. There are many legitimate credit repair companies that can guide you but BE CAREFUL ... many only offer you temporary help and do not do anything to really cure the problem.

If you want more information or a referral to a company that I trust, visit my website and contact me directly ... I would be happy to give you any help and info you may need. The soorner you start getting your ducks in a row then the sooner you can position yourself to buy a home. Good Luck!
Web Reference:  http://www.janewhitten.com
1 vote
, ,
Thu Aug 15, 2013
Good morning Gilma,

We see many credit reports with low credit scores (anything less than 620), and often many scores in the 500's. This is BAD credit. If you are one of the folks affected by this terrible economy, you have a low credit score and you have a dream of buying a home, here's some simple advice for you.

It is unlikely you could be approved for mortgage financing with that credit score at this time.

Beware of any mortgage professionals promising you an approval with such a low score. Wait on buying a home. I recommend you take the time to resolve your credit issues.

First, settle any outstanding debt. If you owe money on collection accounts, charge-offs and/or judgments, make payment arrangements and get these accounts paid promptly.

Next, begin rebuilding your credit. If you have current accounts with good payment histories, or even some previous late-payment-blemishes, make sure you continue to pay those accounts on time. If you do not have any existing credit accounts then you'll need to establish several in order to create a viable credit history.

I have found that CONSUMER ACTION is an excellent resource for objective advice on all things credit related. You'll find free and sincere advice on everything from settling collection accounts to rebuilding credit to building credit from scratch on their website.

Beware of anyone offering to "repair" your credit! The Federal Trade Commission issued a stern warning last year that such offers are scams. Find more from the FTC HERE.

The best way to buy a home is to have a decent credit history combined with sufficient Income and Assets for a home purchase.

The best way to have a decent credit history is to settle negative outstanding obligations and pay all your bills on time for at least two years.

Trevor Curran
NMLS #40140

*If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks!
0 votes
Shannon Lopez, Agent, Moreno Valley, CA
Thu Aug 15, 2013
Gilma, I hate to be the bearer of not the most favorable news but if what you paid off were old negative items, such as collections, charge offs, those kinds of things, your credit will not improve much. You see, there's a saying I like to tell my credit repair clients, "Once bad, always bad. If you pay it, it just becomes a paid bad." You need to get those negative items off, paid or not. Personally, if they're collections or charge offs, you don't owe them anything. However, because you're looking to buy a house, or at least I think you are since you're asking on this site, you don't have much choice because the credit bureaus sell recent mortgage credit pulls to collectors and collectors also have the ability to "ping" for potential victims who they will try to extort money from because they know they are desperate to close their escrow. If you're not in too big of a hurry to buy, you'd be better off challenging all of the negative items. Removing them will help your debt ratio as well as gaining some points by not having the negative items on there at all.

One of the things you can do to raise your score within a couple months, and lenders can't stand it but its legal and it works, is to have someone you know with some good credit card accounts that have had them for at least 2 years with a great payment history, good usage, low balance and high limits and ask them to add you as an authorized user. You won't get any card in the mail, they don't have to give you a card at all. But, you will benefit from their great credit history from those cards and its FREE! I love free!

If you want to learn more about fixing your credit, go to my blog. I give lots of great information to people who want to improve their own credit. Its free. Of course, if you need help and don't want to go it alone, I can help. I'm now in my 26th year of successfully helping people repair their credit!
0 votes
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