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    How long does it take to raise a credit score?

    I just got my credit reports from two of the credit agencies. My score was 550 on one and 625 on the other. I've started to talk to a few collection agencies and have sent payments in full to a few others. My family needs to move sometime this summer. We would like to rent a bigger house... everywhere I look online they talk about checking credit ratings. This has me a bit worried. So, how long do you guys think it will take my credit score to improve after these debts are payed off? I also, only have one store credit card with a low available credit... I've never been late on that one (I've had it 3 months). Should I try to get one Visa card, as well, and keep a low balance? Would that help?
    a few seconds ago 8 Answers

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    Ok.. you're asking quite a number of things here. Your credit score of 550 and 625 (the two agencies rate them differently), means you do have some work to do. And you've mentioned collections agencies, which mean that you haven't been keeping up on making proper payments, so they had to send it to these agencies to collect them from you. It's good that you're starting to pay them off... but it'll still take a while for those payments to take effect in your score (these agencies only update periodically, maybe every 3-4 months or so). Now, you said your family needs to move and want to rent a bigger house. For rentals, you don't have to worry too much. It's when you buy a house, that you ought to worry. Most places will take you with that credit score, as long as you can get a reference from your previous rental that you've been a good tenant and made payments on time. Also, if you pay all of your bills (like utilities) on time, that also counts towards your credit score. Once you've paid these debts off, I'd imagine your score will see improvement in about 6 months (once everything cycles through, the agencies put in that you're off their books, and the credit bureaus update their info). It's very good that you have one store credit card (although bad that you got it from a department store). Is that your only credit card? You might want to consider a bank credit card. The reason being that most stores will give credit to anyone who asks for it - which makes them very risky, and when you applied for it, it probably hurt your credit score more than if you had gotten a bank credit card. I don't think applying for another credit will help anything. Your plan of action (suggestion of course) is to: 1. Clear all your debts 2. Order your credit report a month after they've been cleared, and check it over for discrepancies, to see if you've missed any debts. 3. Fill out the blank form included in these credit reports, and write in all the updated info: Eg - Line of credit for $10,000 has been cleared as of April 1st 2007, and should not be in my credit score., so that way you KNOW that they're calculating them properly. 4. After that, wait for about 4-8 months, and keep up the good work on NOT keeping a high balance on your credit cards (under 30%), and making minimum payments on time at the very least. I'd also make sure you're paying your utility bills, car payments and rent stuff all on time, as it all counts. And you should see your credit score rise in no time. Good luck!
    a few seconds ago

    Other Answers

    • Forget Credit cards, credit reports anything where you depend on someone financing anything for I have a car a home the macs and flat-screen TVs,s all with out using credit. If you don't have the cash don't buy it....save save save then use your CASH not credit.

      by deegee145 - 35 minutes ago

    • Hi its sounds like your Allmost there paying it off keep doing what your doing I wish you good luck

      by pattibcacl - 35 minutes ago

    • go to annualcreditreport.com and get your report - its free. Dispute derogatory items on your reports. Next, try "debt validation" on the collection agencies if the dispute process does not work. Meanwhile, pay your bills on time. One late payment can destroy your credit rating. Aside from this, there is no "quick fix" for credit.

      by chuck allredd - 35 minutes ago

    • IMPROVING CREDIT SCORES As I improved my credit score, I notice that accounts that carry a high balance (i.e. maxed or close to maxed) and having too many open accounts really stumped my score. Inquiries have minimal impact on your credit scores. Having excessive amounts of inquires will slightly lower your credit score, however it is not weighted the same as a delinquent payment or a higher balance. I recommend keeping a balance of no more than 20-25% of your credit limit. Most will say 30%, but at 20-25% you have the extra 5-10% as a cushion for purchases and finance charges. Credit inquiries take a little more than two-years for removal. I say a little more because if the inquire was on 12/2/2004, the removal will post on January. Non-credit bills (i.e. rent, utilities, and cable) do not really help your credit score as they maintain it. In other words, paying your non-credit bills does not raise your credit score, but delinquent payments will lower it. Watch out transferring balances to another card. Read the fine print because sometimes it is at a higher rate plus additional fees. Some cards consider balance transfers as cash advances, which means higher interest and advance fees. Request a copy of your credit report and check for inaccuracies. Those inaccuracies can lower your score. My credit score went from a 685 to a 692 after correcting some inaccuracies (credit inquires that were not removed after two years and an open account that I paid/closed). You are entitled to a free credit report per year that has information from all three credit agencies. However, that report does not disclose your credit score. You will need to purchase your credit report through a broker or bank to see your score. Credit does not build quickly. Most think they will build up a 700 score with a car loan and a few credit cards. You have to consider how much history you established and your financial behavior with those accounts. Patience and good financial behavior is the key.

      by jynxx25 - 35 minutes ago

    • Hey I use a company to fix my credit I don't know the name but a got the # 516-837-7558 Give them a call

      by Jose A - 35 minutes ago

    • First Keep paying all your bill on time ... When u get a settlement your self is not that great If u let a company do it for u , u get better results I know this company that can fix ur credit and settlement everything for you

      by Consulting - 35 minutes ago

    • I have found on the net that there are a lot of things about fixing your credit you can buy some good some not. I bought these programs that have worked wonderfully. If you follow their easy instructions you will improve you credit and credit score. They even have the forms or letters you should use to send to the credit bureaus. I even bought some for my daughter who filed bankruptcy and she has improved her credit also. I try to tell everyone about these programs because they are so good. I feel I have gotten my moneys worth buying them.

      by epelham54 - 35 minutes ago

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