Is there a way to fix my credit rating?
October 25th, 2009
Ok now without going into specifics, I’ve come into some money recently. I have about $7,000 in debt, and obviously I am going to clear that all so that I no longer have any debt. The thing is that I now have a very bad credit rating. Is there something I can do to fix my credit rating right away after clearing all my debt? Or do I have no choice but to wait for 7 years until the rating fixes itself?
P.S. I’m in Canada.
Your best bet is to let time work for you.
I want to explain something to you and I want you to hear me.
Repairing your credit history is not an overnight affair. It is a process. Anyone who makes representations otherwise is strictly out for your money or for your attention.
The extinguishing of your debts with the windfall of money will not undo the damage that has been down. It will not erase the historical credit information which has shown that you are a credit risk.
However, if in the next 24 months, you show near flawless in responsibility in paying your obligations ON TIME, you would be surprised how your credit can turn around.
Your best friend is time — it won’t take 7 years to get in the clear, but it sure as hell will take more than 7 months to get out of the hole!
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Posted in How to fix my credit
What you can do is get a printout of your credit listings and call those creditors who were paid off to add that fact to their report. Most do it automatically, but sometimes you have to call.
Other than that, the best way to improve it is to charge stuff and pay it off within 3 months (not the first month!) and as you are repeatedly paying off regularly, that will alleviate the bad credit. Don’t loose heart. I actually had to file bankruptcy (medical) and my credit recovered in only a couple of years. I paid off everybody who was owed except for the one company that was harrassing me (which was why I was forced to file).
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Your best bet is to let time work for you.
I want to explain something to you and I want you to hear me.
Repairing your credit history is not an overnight affair. It is a process. Anyone who makes representations otherwise is strictly out for your money or for your attention.
The extinguishing of your debts with the windfall of money will not undo the damage that has been down. It will not erase the historical credit information which has shown that you are a credit risk.
However, if in the next 24 months, you show near flawless in responsibility in paying your obligations ON TIME, you would be surprised how your credit can turn around.
Your best friend is time — it won’t take 7 years to get in the clear, but it sure as hell will take more than 7 months to get out of the hole!
References :
CPA
Small steps like paying your bills on time and using only part of the credit available to you. Also use your credit cards for making small payments regularly, so that it is reflected in your credit record. More tips available at http://www.acreditlibrary.com/buildcredit.html
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the good news is that you have 1.8 times more money than here
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