HOW DO I RAISE MY CREDIT SCORE 70PTS IN 5 MONTHS?

I HAVE BEEN WORKING ON MY CREDIT FOR A YEAR ARE LONGER. MY SCORE IS 580 (MY FICO. COM) I HAVE A 30,000 AUTO LOAN(8MONTHS,NEVER LATE) 2CREDIT CARDS STARTED OUT W/ $300 EACH, GOTTEN A RAISE ON BOTH TO $500, I HAD A YEAR.(NEVER LATE AND PAY OVER THE MINIMUM DUE) I HAVE OLD CHARGE OFFS THAT I PAID, AS WELL AS 2 COLLECTION PAID OFF. IT JUST SEEMS THE MORE I TRY TO WORSE MY SCORE GETS.

I CAN'T GET REAL ESTATE MT SCORE IS NOT MOVING IN THE RGHT DIRECTION. I WANT TO PURCHASE A HOME IN SEPTEMBER.................PLEASE HELP ME!

4 Answers

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  • 8 years ago

    Ahh more detail in this question.

    when you paid off the collections the date was updated pulling your score down again-just a part of life

    you are over using your CC you need the reported balance to be under 30% of the credit limit

    you have a new car loan with bad credit so you score got whacked as well

    there is no way you will gain 70 points in 5 months the max is 35 points and the debt you are carrying even that would be a miracle. You should plan on at least 18 months to get the 70 points you will get there just keep pounding away and do not get any more debt

  • 8 years ago

    NOT going to happen.

    Paying off derogatory items will not improve your score. The damage is done and will remain for the balance of the 7 year reporting period, whether paid, settled, or unpaid. Mortgage lenders will require that all derogatory items be resolved. So it is good that you paid these off.

    Car loans are installment loans which build credit by making payments over time. You have to pay on a car loan for at least 12 to 18 months for it to do much for your score.

    The years worth of credit card history is good and will continue to build your credit, but I think you will need at least another year of consistent, on time payment history to get close to a 650 FICO.

    Also, if you are carrying balances on those credit cards, it would be a good idea to pay off the balances completely. Then use the cards for regular purchases, wait for the statement, and pay the balance in full every month. This builds your credit and avoids interest. Also, not carrying balances on the cards will improve your debt to income ratio -- another large factor in the mortgage approval process.

    By the way, using all caps is considered shouting and impolite. It is also harder to read. Turn off the cap lock.

    Source(s): BD
  • 8 years ago

    Pay your credit cards in full.

    Wait about 45 to 60 days for your credit score to update.

    Carrying balances on credit cards is an easy way to destroy credit.

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    Unethical advise:

    On those collection items that have been paid off.

    Have they been paid off for at least 2 years?

    If so, dispute them once a year after that.

    Sometimes (rare) if an item has been paid off, they will not bother to verify the item, and the item drops off your credit reports.

    On the credit cards. Please pay off in full each month.

    Not the minimum, not more than the minimum, but in full.

    Never use more than $150 a month (with that $500 limit) on those cards.

    Go to MyFico.com / education to learn how carrying a balance is dangerous.

    That $30,000 car loan on your car is going to directly reduce how much home you will qualify for with your income. Also, make sure you have a nice down payment for your new home.

  • 8 years ago

    If you really do have a $30,000 auto loan, I would be looking to really lower that part by selling it and buying a reliable used auto for starters.

    Pay off credit cards but Do Not Close the accounts

    Talk to non-profit Consumer Credit Counseling agency locally (as soon as they answer the phone, ask them if they are non-profit consumer counselors if you don't know). You can do a Google Search for Non-Profit credit counseling in ________ (your town/city/county).

    Best of luck!

    Source(s): been there
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