Credit Score Help

beeeyotch

For those of you who may not know, H and I have gone through some rocky financial situations over the past few years. When we were 18 and moved out on our own we were naive and got credit cards, maxed them out and made only the minimum payments and then when financial situations turned bad, stopped paying on them. I also had a student loan default and had numerous medical bills I couldnt pay (hospital visit-no insurance) OK fast forward to 2009, we got wise to the world and put a stop to all this. I got on a rehab program for my SL, we settled on all the CCs and enrolled in a payment program for the med bills. Fast forward again. Now we had a decent income, we can sustain our lifestyle and have no outstanding debt. Our credit scores are stil 580 at best, and we cannot get approved for anything. When I got my Hyundai in April it had to go in FIL's name because we were both in bad shape, we couldnt even be cosigners with FIL, we dragged him down so much. SO....my question is, what is the best way to improve our credit? In the next 4 yrs we might want to buy a home and I know H will need a new car by then. Thanks!

Blonde407

Have you pulled you credit report and looked to see if you have anything in negative standing?  10 years ago I settled on like 4 credit cards and even with settling they showed up as a negative on my credit report.  I then disbuted those negative items and in the reason I put  "account paid in full upon settlement" and since the account was paid in full all negative items were wiped from my credit report and slowly began to rebuilt itself. 

beeeyotch

I hadnt looked in a while, but I just did after reading your reply. I have 2 "potentially negative accounts" but the both say "Pays as aggreed" and "Charged Off" with both balances saying $0. Everything is accurate

LSUmommy4

Settling and charged off are different...charged off will be far more negative on your record then a settlement.

Also with the medical bills are those still at a collection agency that you are paying payments too?  As long as they are that will hurt.

I went through the same thing at a young age where I was on my own early, got credit cards, then had an expensive knee surgery and it has taken me 7 years to get my points to increase about 200 spots..I still have work to do and that's after paying off a car, being put on H's credit cards and paying all of that off, and being on a home loan.  It's very easy to f it up but hard to get it back haha

I would definitely look at your detailed credit report though and see what they can do to change some things.  Also unfortunately don't keep applying for credit cards because everytime someone runs your credit you do get a ding...but wait it out and then try to even get a credit card with a limit of 150 dollars...put something small on it like gas or dinner to Wendy's and pay it every month in full.  That will help.  You may have more luck at a local or semi local department store to get a card and that could be an option.  GL and keep hitting it hard...it will pay off eventually

beeeyotch

LSUmommy4:

Settling and charged off are different...charged off will be far more negative on your record then a settlement.

Also with the medical bills are those still at a collection agency that you are paying payments too?  As long as they are that will hurt.

I went through the same thing at a young age where I was on my own early, got credit cards, then had an expensive knee surgery and it has taken me 7 years to get my points to increase about 200 spots..I still have work to do and that's after paying off a car, being put on H's credit cards and paying all of that off, and being on a home loan.  It's very easy to f it up but hard to get it back haha

I would definitely look at your detailed credit report though and see what they can do to change some things.  Also unfortunately don't keep applying for credit cards because everytime someone runs your credit you do get a ding...but wait it out and then try to even get a credit card with a limit of 150 dollars...put something small on it like gas or dinner to Wendy's and pay it every month in full.  That will help.  You may have more luck at a local or semi local department store to get a card and that could be an option.  GL and keep hitting it hard...it will pay off eventually

Thanks! Yeah I dont apply for ANYTHING. Even when I go to Old Navy and they practically beg you to apply and say you'll get 15% off and if its declined its only 1pt on your score. Im like no I need all the points I can get LOL. Im thinking of getting like the gas card like a Shell Mastercard or whatever, low balance and I will only beable to use it for gas, since I lack discipline.

LSUmommy4

yep one of my first cards to help me get back on track was a shell mastercard...it was a win win because their rates were great, you get discounts on gas, and it was only used on gas so it was very easy to manage to pay off every month.

 

I remember back in the day when if you had a cell phone everytime you paid it, it helped your credit sucks that doesn't work that way anymore