I would like to get a loan for a car in a year or so, I need tips on how to boost my score. ?
I have recently paid off my credit cards but have had a lot of late payments posted on my credit report. I am not sure if I should cancel my cards (I have about 5) or if I should leave them for the credit history.
Also I will be graduating from college in the fall and don’t know how good this will look for getting a car loan, even with my poor credit history. Any help would be greatly appreciated.
February 28th, 2010 at 12:13 pm
You want to try to pay them down right away. Each credit card should be below 50% bank card utilization. Also, you want to make sure you pay all your cards on time every month. This will help you to keep your credit in good standing and it’ll improve over time. Aside from that, you can’t do anything with your late payments. You’ll just have to wait them out.
If you have a stable job with a good source of income, you might be able to apply for a loan through a website called Prosper. This site is a People-to-People (P2P) lending site where individual borrowers join in on the loans to help fund yours. The following is a link of a group that can help to walk you through the whole process:
http://www.prosper.com/groups/group_home.aspx?group_short_name=LIFFE&referrer=FundingLIFFE&utm_source=referrer-FundingLIFFE&utm_medium=referral-link&utm_content=link&utm_campaign=referrals-unknown
Best of luck
February 28th, 2010 at 12:23 pm
Try and get a small loan with your credit union (if you belong to one or join one). I know , you don’t want any debit after paying off your credit cards. But, this way you establish a “loan” payment history….
Also, talk to someone in a loan department. They are the best equipt
February 28th, 2010 at 1:14 pm
Why did you have the late payments?
I had spoken to someone at the bank before. What they had suggested was that you can actually write to the credit cards to explain why you were late with the payments (ie: late because you were at school, you didn’t get to pick up your mail often due to being away from home, etc.) and ask them to review your history and purge the late payments. I did exactly that since that was my case (I was living away from home in order to attend school and rarely went home). They reviewed my history and adjusted it for the time period I had specified. Whatever your situation was, a letter to the credit card companies won’t hurt, they’ll at least consider what you’re asking.
You should also look at the cards you have and determine which ones you actually use. If you don’t use them at all, it’s ok to close them. Just continue to use the ones that you do and make sure all your future payments are on time. It also helps if you pay your balances in full. That way, you’ll get less finance charges and it’ll show that you are trying to pay off any debt as soon as you can.
Don’t open any more cards until you can establish a regular schedule for the ones you have open and are using. The longer you use a card, the better chance you have at improving your credit, as long as you don’t fall behind or incure any more late payments.
Another thing you can do to ask for advice is to call the 3 major credit reporting companies: Equifax, TransUnion and Experian. Their customer service reps can give you pointers on how to keep a good credit history.
You can check your score from this site:
https://www.annualcreditreport.com/cra/index.jsp
I believe Experian gives a summary on your strengths and weaknesses, with pointers on how to improve your score, if you request a report. I can’t remember if you have to purchase a credit score or not to get it and whether the other two will give you that information. But it’s free for a regular report, so give it a try!
February 28th, 2010 at 1:33 pm
Leave them start paying on time you will be ok for your loan.
February 28th, 2010 at 2:04 pm
The following 5 critical factors affect your credit score in a major way. By knowing these you can keep a check on them and make your credit score a healthy one.
1. Re-payment history
This factor carries the highest weight in your credit report. How steadfast are you in repaying your loans, makes your credit report shine. Experts claim that this factor alone accounts for 35% of points in your credit score. So, if you falter on repayment front it is sure to be reflected poorly on your credit score.
2. Outstanding debt
The next comes your debt burden. How much you owe is a factor that according to experts carries about 30% weight in your credit score. This is
30% is based upon outstanding debt. To get a better score it is advised that you keep your outstanding debt to a minimum.
3. Length of your established credit history
The time for which you have a credit history also matters. The longer your established credit history the more credit reporting agencies believe in you. This could be simply because of the fact that they have more data to analyze your financial position. Experts give it a 15% weight in determining your credit score.
4. The state of your financial accounts
How much money do you have in your bank account, your income levels, your house, car, your assets etc. comes the next. A healthy bank account reflects a healthy credit score. Experts find that credit reporting agencies give this factor 10% weight while determining your credit score. Read more from: http://www.credit-card-gallery.com/article/204,5_critical_factors_affecting_your_credit_score
February 28th, 2010 at 2:32 pm
You can boost your score by consolidating your student loans. Go to: http://www.studentfinancialadvisors.com to do so.
February 28th, 2010 at 2:33 pm
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February 28th, 2010 at 3:22 pm
The best thing you can do is at least make your minimum payment every month. And never make a late payment. But if you can try to pay off the whole balance every month.