You can rebuild your credit even after declaring bankruptcy and other extremely disastrous financial situations. Fixing your credit will require you to change bad habits and focus on improving on the factors in the credit scoring formula. As long as you commit to fiscal responsibility, lenders will see past mishaps as time passes.
How Long Will It Take?
It can take years to raise your score to the good or excellent range -- above 620 -- after catastrophic financial hardships that lead to foreclosure on a home or bankruptcy. Your situation may see varying results because credit scoring formulas are kept secret, but you can see significant improvement within months if you have no other serious black marks on your record.
Benefits
Improving your credit score increases the odds of a lender approving you for a new loan, even if you failed to pay back a loan in the past. A retooled credit score is important for other needs, such as getting a cell phone plan or utilities. Most employers run a credit check before tendering a job offer.
Tips
Paying your existing debt obligations on time boosts your score more than anything else. Try to pay more than the minimum each month, as long as the loan does not have prepayment penalties. Your credit-to-debt ratio is one of the most important variables in a credit score. Run a credit check on your own history and look for possible errors, such as accounts that do not belong to you.
Warning
Any information you need to fix your credit can be had for free, so watch out for credit repair scams. Nobody can delete serious items, such as a bankruptcy, without doing something illegal like using another person's Social Security Number. Scam artists may also suggests fighting all negative items with the credit agencies in hopes that they will not have enough time to investigate them all or not bother to review them. In all likelihood the bureaus will disregard your disputes as frivolous.
Went through a divorce and found out that my X trashed my credit. In December when I took back my financial life, I was ruined. I discovered my FICO score was at 533, all account was late, over limit, mostly charge offs. Debt was worth $60k. Immediately I put a plan of action on how to fix my credit, because I needed a car for myself. But with my current credit score then I won’t get approved due to the charge offs and debts coupled with low credit score which appeared in my credit report. Thanks to ROOTKITS CREDIT SPECIALIST who was there for me when I needed them the most. After when I spoke with my dad I explained my situation to him, he introduced me to rootkits credit specialist, immediately I contacted them via: rootkitscreditspecialist@gmail.com also texted on +1 760 474 3440. I got replied few minutes and I explained myself and they promised to get job done. Within 5days my credit score changed, charge offs were deleted from my report, all debt cleared and my credit score was raised to 815 across the 3 credit bureaus. My car loan has been approved, I’m super excited to jump into my 2019 Mazda CX-5 car.
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