How can you repair your credit after debt settlement?

Submitted by kbaek68 on Mon, 06/07/2010 - 19:53
Forums

I chose to do debt settlement rather than file for bankruptcy and have about a year and a 1/2 before I complete the program (three out of the eight accounts are left). I was wondering if there was anything that I could do now to start repairing my credit score. I am current (and have always been timely) on all my student loans. I do not have any other credit cards or bills in my name. My credit score is about 550 right now. I don't have plans to make any purchases that would require good credit in the near future but would like to start improving it as soon as possible. Any advice as to what I can do?

You can become the authorized user on a credit card. you don't need to charge anything on the account to improve your score. I would try opening a credit union checking account. they will give you a card after a while, with good terms. there are a lot companies that will give you credit when your score is low. they charge high fees and interest for these credit cards and loans.

I think it is better to try methods that don't require wasting money. be patient and save up your credit for something important like a home.

Tue, 06/08/2010 - 00:29 Permalink

Hi kbaek,

Welcome to this community :)

Nice advice cinnamngrl:) kbaek, I completely agree with cinnamngrl. The best possible way to improve your score in just a few days is by getting added as an authorized user. As an authorized user you are in no way responsible for the debt. However, you should keep in mind that any negative impact on his/her credit score (on whose account you are going to get added as authorized user) is going to hurt your score too, just as his good score is going to improve your score.

Other than the credit union part, you can also try getting a secured card from credit union or any banks. Secured cards are easy to get with low score. This helps you in improving your score. You can use the card to make purchases which you can afford, and then make on time payments on the card. This will improve your score a lot.

Thanks,

Aaron

Tue, 06/08/2010 - 05:31 Permalink
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