Bag lady you gone hurt your back/Dragging all them bags like that
I can't think of a person under the sun that's not carrying at least a little bit of baggage (debt) with them but are you over packed for your next move?
So you pulled a Solange and you tried to buy some things away or maybe you were never educated about keeping your finances healthy. You're not alone. I'm not ashamed to admit I had no idea how to budget or care for my credit score. It wasn't until I was in overwhelming debt and dreaming of owning a home I realized it's time to get rid of my financial baggage.
I'm not an expert on the subject so I contacted Credit Coach, Tuesday Knight, and got her take on rebuilding your credit.
1. If I have bad credit how long will it take to repair?
Every single situation is reviewed and assessed individually, so there is no specific time frame given to resolve one credit profile issues. I can say that with our product, the FES Protection Plan, customers have seen an increase in their credit score within the first 45 days of being on the program. However, to see both a successful repair and restoration process take place, most individuals should give it nine months to "birth" a new credit profile.
2. Will bankruptcy ruin my credit? Is there another option?
When there are no other options available to you, filing for bankruptcy may give a much-needed opportunity to gain control of your finances. The decision to file for bankruptcy has long-term effects on the health of your credit and should be thought through very carefully. Filing bankruptcy allows you to legally remove liability for some or all of your debts, depending on the type of bankruptcy you file. Your credit report will reflect each of the accounts you included in your bankruptcy. Even though the bankruptcy information can legally remain on your credit report for seven to 10 years, you can begin rebuilding your credit soon after your debt have been discharged.
The following options may be considered as alternatives to bankruptcy:
- Consider finding additional income and cutting expenses. Many individuals have worked a second job in order to pay off credit card debt.- Work directly with your creditors and make new payment arrangements.- Get credit counseling to assist with planning and maintaining a budget.
3. How do I check my credit score? Sites like Credit Karma are free but are they accurate?
Sites like CreditKarma.com only show you a cumulative score that can most times be inaccurate or lower than your actual score. Clients who enroll in our FES Protection Plan receive unlimited updates, including your credit, auto, and life insurance, and hiring risk scores. You can always request a free copy of your credit report from any the three bureaus. If you have a credit card already, more than likely, they will provide that serviced for free with your subscriptions. You may also ask your bank or lending institution for a soft pull of your report to check your current score.
4. How do I improve my credit score?
Most consumers assume that repairing damaged credit and improving their credit file mainly consists of removing negative items from their credit file. This is partially true, as a large part of credit restoration is removing outdated or inaccurate derogatory items from your credit report. However removing old items can only get you so far, a major portion of restoring your credit consists of establishing new and improved credit.
Here are some steps to help you get in the credit game:
- If you do not have a checking and savings account at a major bank, apply for both.
- Get a Secured Credit Card
- Take out a small loan from your credit union or bank
- Become an Authorized User- Alternative Credit Reports
- Make Sure Personal Information is Correct
5. Will paying off all debts raise my credit score?
Without active and positive trade lines on your credit report, you may not see significant improvement in your score, even if the majority of negative information is deleted. Obtaining and maintaining positive accounts is crucial to getting your credit back on track and getting the best score possible! Now when you currently have no open credit, or if you don’t have a credit history, it can be difficult and frustrating to obtain a credit card or other type of loan.
If you're interested in more info Tuesday Knight
*this isn't an ad only advise*