i need to build my credit...?

Question

because me and my boyfriend want to buy a house next year.. i have 3 bad things on my credit.. one which i paid... but its still on there because it went to collections.. can i get that removed? of so how? and i have to others that i havent paid but i am working on that now.. they were all hospital bills.. i have 2 good things on my credit.. my credit card.. and my car loan... so i was going to get another credit card but the apr rates are 29.99% is that a lot? is there any other way to build my credit? is it possible to do it in a year? and can i get the bad things taken off of my credit? and on last question sorry.. are all my other bills I.e.. gas electric cable on my credit? because i'm on good terms with all

Answer 1

Hey Ash,



I read your question on what you can do to fix up your credit and I have a few things that you can do.



As for the negative things you have, keep in mind that items that are less than 2 years old are affecting your score the most, and that when you do pay, unless you get a "deletion payment" which is a payment in exchange for removing it from your report, isn't worth paying for. The debt's been paid, but you'll still have scar tissue on your report from the collection account itself. A "deletion payment" can make it where the collection never even happened, which can get you a few more points than if you just pay it off. I posted links that explain this more in detail:



http://www.creditinfocenter.com/debt/settle_debts.shtml



http://www.creditinfocenter.com/debt/neg_rating_after_settle.shtml



http://www.creditinfocenter.com/debt/CanCreditorSue4SettlementDifferences.shtml



http://www.creditinfocenter.com/debt/ActualDebtSuccesses.shtml



http://www.creditinfocenter.com/debt/debt-negotiation.php





Good job on taking care of your credit card and your car. A key to the credit card is to make SMALL purchases ($20/max) and pay it off in full on time every month. This way, it shows activity without going over your head in debt. As for that 2nd credit card, 29.99% is STEEP. If you do get another credit card, a secured credit card would be the better option. A "secured card" is easier to get than a regular card, mainly because a collateral deposit is placed upfront. But the major advantage that a secured card has over ANY other card is the ability to increase the credit limit which is important because 30% of your score is based on how much available credit you have versus how much you're using. Higher credit scores usually have credit cards with high limits because of this. A secured card gives you that flexibility even when your score is low. If you have a substantial amount of money, you could "custom build" a high limit credit card, which would definitely help your score. Since most of the cards, or the major ones at least don't report as "secured" no one could tell the difference. Also, the deposit later on can double as a start up for an emergency fund once the card converts to a regular card and the deposit is given back. In addition to a unsecured card with a high limit, the leftover deposit could be used as an emergency fund as well!



Another thing that you can do is enroll with PRBC. PRBC is America's Alternative Credit Bureau, providing a helpful service to the over 50 million people with limited or no credit history. If you pay your monthly bills on time, PRBC can help you build credit to qualify for a mortgage and better interest rates.On-time payments for the following bills are not reported to the traditional credit bureaus:



Rent

Cable

Phone

Daycare

Insurance

Electric

Natural Gas

Cell Phone



The only time your payments for these bills are reported to the other credit bureaus is if they're missing or late.With PRBC, your on-time payments count. You build credit for paying your bills on time, even if you have no credit history.PRBC has teamed up with Fair Issac, the creators of the FICO score to introduce the FICO expansion score which helps people build credit. Here's a link that explains more in detail:



http://www.fairisaac.com/fic/en/product-service/product-index/fico-expansion-score/

Answer 2

It's great that you're thinking ahead. If you want to buy a house and there are issues pertaining to your credit, planning ahead is essential. You've only mentioned *your* credit--- What's your boyfriend's credit like? If you're buying a house together--- that counts just as much as yours. If you marry before you buy the house, it might even be more important-- depending upon the state in which you reside.



There's no reason to get another credit card. You've got the one and you're staying current, so just keep the overall balance as low as possible and you should be fine. And the rates you described are astronomical! Don't get that card. Rates over 15% are too high. I wouldn't get a card where the rates were over 12%.



Besides, new cards (or any new "credit") aren't nearly as important as the credit you've maintained long term.

Keep using the one you have regularly and make those payments on time. That counts more than just about anything. Try to pay off the balance each month-- if possible. It's important to establish a long payment history, so if you've had the card for a few years-- all the better.



As was already mentioned, you can't remove anything from your credit report that isn't an error. You should obtain a copy of your credit report each year to keep track of everything from your credit score (FICO) to errors.



Re: your last question-- your entire payment history of everything counts. If you went delinquent on your phone bill for example, that could effect your overall credit *worthiness* but it would not reflect on your actual credit report.

However, it's still important as your utility bills as well as rent payments can be used to show proof of your stable payment history when it comes time to apply for that mortgage.



Here's a website with a few additional suggestions:



http://www.wikihow.com/Build-Good-Credit



Good Luck with your future plans!

Answer 3

First off 29.99% is crazy! Do not agree to that card. Also, bad marks on your credit report will not be removed if they are correct. However, they should fall off after 7 years. A credit card and a car loan are good ways to establish credit, but it takes several years of consistent, timely payment (including utility bills) to establish good credit. If you are doing everything right, it just takes time. If your boyfriend's credit is good then you should be ok, between the two of you. Also, if you can get a cosigner with good credit, it can help you on your mortgage rate. I would generally advise against getting another credit card as it will not drastically improve your credit but could result in debt.

Answer 4

Derogs cannot be "removed" from your credit report if the information is accurate. When using a credit card, only spend what you can payoff each month, that builds credit scores fast. You need to be at least 2 years away from your last reported derog when you buy the house or you'll be in the "subprime" market in terms of interest, which translates to either a high, or adjustable rate

Answer 5

To find out specifically what you must do to raise your score, you can order your score report from all three national credit bureaus. In addition to your scoreyou still have to pay to find out your credit score, the three-digit number ranging from 300 to 850 that is the key to your borrowing costs.

Answer 6

You cannot have negative items removed, unless it was an incorrect posting.



You need: 20% down, and a fixed rate 15 yr mortgage with PI TI not to exceed 25% of your monthly net.



Good luck.

Answer 7

29.99%!!!!!! NO WAY!!!!! seriously are you even THINKING about doing that? INSANE