How to improve my credit score if I have poor credit?

I need some Real Expert Advice Please!! I would like that people that are not sure or really are not experts in this area to Do not Post an answer...Thank you. This is my situation: I have a 498 credit score. My debt is the following 10,000 (car loan); 6,000 (student loan), Espress Credit card (260) and Bank credit card (360) I %26#039;ve had difficult times last year because I lost my job and other things in between.

My car loan with the bank became in default for 3 months and I just pay it just enough to do not get the car repossesed. My Espress credit card became 5 months due and my bank Crdeit car 3 months due. I kept these loans in default for probably 8 months or around that.

Those balances I showed it at the begining are the ones until now. Now I am up to date on my payments but my credit score is 498 and I need to improve it. It is very important for me tu improve my credit score in order to be able to rent an apartment, or even buy a house in the future. What can I do?

How to improve my credit score if I have poor credit?

Ouch, the good news is that you CAN improve your score. The bad news is that it will take some time. First, it%26#039;s helpful to understand how FICO actually works--there is so much misinformation out there about it. This is the straight scoop from the company that instituted it:

http://www.myfico.com/CreditEducation/Cr...

%26quot;Improving Your FICO庐 Credit Score

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It鈥檚 important to note that raising your FICO庐 credit score is a bit like losing weight: It takes time and there is no quick fix. In fact, quick-fix efforts can backfire. The best advice is to manage credit responsibly over time. See how much money you can save by just following these tips and raising your credit score.

Payment History Tips

Pay your bills on time.

Delinquent payments and collections can have a major negative impact on your FICO庐 score.

If you have missed payments, get current and stay current.

The longer you pay your bills on time, the better your credit score.

Be aware that paying off a collection account will not remove it from your credit report.

It will stay on your report for seven years.

If you are having trouble making ends meet, contact your creditors or see a legitimate credit counselor.

This won%26#039;t improve your credit score immediately, but if you can begin to manage your credit and pay on time, your score will get better over time.

Amounts Owed Tips

Keep balances low on credit cards and other 鈥渞evolving credit鈥?

High outstanding debt can affect a credit score.

Pay off debt rather than moving it around.

The most effective way to improve your credit score in this area is by paying down your revolving credit. In fact, owing the same amount but having fewer open accounts may lower your score.

Don%26#039;t close unused credit cards as a short-term strategy to raise your score.

Don%26#039;t open a number of new credit cards that you don%26#039;t need, just to increase your available credit.

This approach could backfire and actually lower your credit score.

Length of Credit History Tips

If you have been managing credit for a short time, don%26#039;t open a lot of new accounts too rapidly.

New accounts will lower your average account age, which will have a larger effect on your score if you don%26#039;t have a lot of other credit information. Also, rapid account buildup can look risky if you are a new credit user.

New Credit Tips

Do your rate shopping for a given loan within a focused period of time.

FICO庐 scores distinguish between a search for a single loan and a search for many new credit lines, in part by the length of time over which inquiries occur.

Re-establish your credit history if you have had problems.

Opening new accounts responsibly and paying them off on time will raise your credit score in the long term.

Note that it%26#039;s OK to request and check your own credit report.

This won%26#039;t affect your score, as long as you order your credit report directly from the credit reporting agency or through an organization authorized to provide credit reports to consumers.

Types of Credit Use Tips

Apply for and open new credit accounts only as needed.

Don%26#039;t open accounts just to have a better credit mix - it probably won%26#039;t raise your credit score.

Have credit cards - but manage them responsibly.

In general, having credit cards and installment loans (and paying timely payments) will raise your credit score. Someone with no credit cards, for example, tends to be higher risk than someone who has managed credit cards responsibly.

Note that closing an account doesn%26#039;t make it go away.

A closed account will still show up on your credit report, and may be considered by the score.%26quot;

http://www.myfico.com/CreditEducation/Im...

THAT is the way it is done because that%26#039;s the company that runs it. (If you read the first link, you see there are other scores, etc. but FICO dominates the industry).

Now more specifically on what to do to get rid of your problem debt. You should contact the credit card companies and see if they%26#039;d at least stop interest for one or two months and hopefully you could end up with a paid in full in just a few months (I have no idea what your resources are). Credit interest rates are always so high, so getting that out of the way is important and yes, it is possible, to get them to at least reduce if not waive interest for a couple of months. You%26#039;ll probably need to ask for a supervisor from the get-go on that.

You may want to rethink the car. That%26#039;s a lot of money--unless it%26#039;s nearly new and/or was terribly expensive it looks like you got one you couldn%26#039;t really afford. You may want to think about selling it, paying off the debt (assuming you can get $10K) and getting something much cheaper until you have more funds.

You may have to get a second job, a roommate, or move in with family/friends for awhile.

You should consider something like Consumer Credit Counseling (especially if you have no success getting the credit card folks to cut you a break) as you probably can use the help to get out of the hole and start saving. You will want to establish an %26quot;emergency fund%26quot; so you don%26#039;t ever have to rack up a big debt on a credit card or a loan. You will want to try to save for the downpayment on a house one day. You could use some individualized tips.

Good luck.

How to improve my credit score if I have poor credit?

On your credit cards - you need to keep them below 50% of the available balance. So if the card has a $500 limit - keep the balance at 250 or under. This will boost you score. Also, you need to pay on time from now on. Also, if you ever want to buy a house and you rent - make sure you pay your rent on time and with a check because banks want to prove your rental history.

Good Luck!

How to improve my credit score if I have poor credit?

I have talked with specialists about this and the only thing you can do is to keep things current and keep making payments. It just takes time improve the credit score. I was told about a year after I paid everything off then it would start to go back up.

How to improve my credit score if I have poor credit?

its going to take some time to get over that, but your best bet is to pay off your creidit cards and use only about 35 percent of the credit on the cards, pay everithing on time and you should be around the 600 within a year

How to improve my credit score if I have poor credit?

The short answer is pay on time every time from now on. Every single time you pay a bill even 1 day late or default on anything you take a giant step backward. When you pay off your cards do not close the accounts. Creditors like to see that you have available credit you are not using. And finally- time - you have to give it time.

How to improve my credit score if I have poor credit?

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