27 January 2012

Debt Advice..please?

So I filed our taxes the other day and cannot wait to get our return! A big chunk of it is going to pay off all debt in my name. So...does anyone have any advice for improving a credit score once you pay off the delinquent accounts? I've heard of people getting those negative accounts off of their credit and want to know how? I want to know what I need to do to fix my credit once everything is paid off...

We need a new car. badly. One with low payments and low miles. But...right now I can't approved for a loan. I have no income and bad credit. I just want to my debts, improve my credit, and get a new car...

4 comments:

  1. Some military bases offer financial planning classes and I've heard they're really good. Other than that, if you have a lot of credit cards, close them out and keep just one or two and pay them off every month. Keeping up with your debt and paying bills on time is the main thing to improve your credit score.

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  2. You should check on base. In Fleet and Family Services, there should be info for (free) finance courses.

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  3. Actually, as far as credit cards go, it's usually better to leave them open, but cut up the card, so you can't charge to it, but yes, paying them off COMPLETELY every month (not just the minimum balance) will also be a good step!

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  4. I'm going to recommend looking into Dave Ramsey's Financial Peace courses. You can purcahse the book, go to a seminar (there are even webinars now, I believe), or purchase the audio books. Ramsey is a genious - I am so thankful to have taken his Financial Peace course in high school. His "snow ball" method for paying off debt is extremely effective. I'm not so sure that you can have neglegent activities removed from your credit record. They will however be dismissed after a certain number of years (I want to say 5?) Either way, start a savings account as a car fund! Put away a couple hundred each pay period (or whatever you can spare) and you will be shocked at how quickly it adds up. It's far more beneficial to wait and pay for as much in cash as you can versus taking out a hefty loan and getting stuck with high payments. I hope this has helped and best of luck to you!

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