I need help. I am helping a friend to build positive credit history; some of the items, I dont have experience with repairing. This is what she has: All credit scores are in the low-mid 500's. Current: car loan original 23,000; bal 19,000; monthly pymnt 542 (had since aug 00) 5 times 30 dys late 1 credit card credit limit 1700;chargd 1622;monthly pymnt 32 ( had since sep 99) nvr late 4 chrgd off credit cards- 2 settled; 2 wont accept settlemnt 2 collectn acc- 1 insurance company; 2nd is one of the above credit cards Closed acc: car loan 13,000 -paid account/zero bal car loan 10,000- closed (but doesnt state closed on report just I0- too new to rate) any help will be appreciated!
get more credit cards (cap 1, getsmart) whatever subprimes will help. even secured. dispute all the bad stuff. pay down that credit card, the high utilization hurts scores ALOT. dont apply for cards you know you won't get..
The only thing that will help your friend is a combination of reducing her expenses, increasing her income, & paying her current obligations in a timely manner. New credit will likely hurt her scores a lot more considering the number and severity of negatives. 1. She is way upside down on the car...( 11K paid, yet only 4K principal is gone). At this point she would be eligible to refi the car @ favorable terms, but won't be able to until the last late is 1-2 years old. 2. Above 75% UR is maxxed out. In addtion to finance charges, she should pay $135/month to pay it off in 1 year, or $68/month to pay it off in 2 years. At $32 principal payment she will keep paying till July 2007! 3. Make payment arrangements with the CCs that won't settle. 4. Ask the CCs that settle to delete in exchange for payment of balance (if she can afford to) 5. Dispute the 10K car loan as "closed".
Remember though it's fine to have a ton of great credit...but in reality once speck of bad credit usually out weighs all the good stuff Thanks
