Financial Information
How long to improve my credit?
Question : How long to improve my credit?
I currently have a poor credit score of around 540 I believe. I have a delinquent student loan account of $ 2k, a car loan(on time each month), a in-store credit card($ 150 limit), and I paid off a delinquent $ 1200 credit card about 6 months ago in 3 months. I obviously did not learn my lesson and need to get my act together and repair my credit score.
I am going to pay the Student Loan off in approximately 3-4 months and my other small debts($ 500) in the next month or two. After this I will only have the in-store credit account and the car loan on my report after the others are removed.
How long will it take for the previous $ 1200 Credit card to be removed?
How long after I pay off the $ 2k loan will it not affect my score anymore?
How long will it take my score to go from high risk to low to medium risk? Is there any other steps I need to take to speed up the process?
Thanks. -hchase801
high risk credit card processing
Best answer:
Answer by Annie
It will take about 7 years for your credit card to be removed. The only thing you can do now is to make sure you pay ALL payments on time each month. And have a balance of no more than 30% of the credit limit. Continue making ALL payments on time for a year and your credit should be a lot better.
Theres really no nice way to say this, but you messed up bigtime.
Paying off the student loan will help (I’m hoping it is just delinquent and NOT sent to collection?)
The previous card will take 7yrs from date of last activity to get off your card. What you *COULD* try is see if the CC company can leave the card open (odds are they wont).
Anyways, steps to speed the process up:
You COULD dispute the “late payments” with the 3 credit bureaus. SOmetimes (once they’re paid) the banks are nice and remove the marks).
Dispute the bad accounts (again, sometimes they get deleted).
Pay EVERYTHING ON TIME. It doesnt matter if it is the minimum payment or the whole balance. As long as the minimum payment is made ON TIME.
One thing you can try is get a secured card (limit will be what you pay, and make sure it is from a real bank so it reports to the credit bureaus). Last thing is keep your STATEMENT balance to below 30% of your total limits. Seeing as how your limit is only $ 150, that means keep it below $ 45 on the statement (so if you use $ 150 in a month, make sure you pay $ 105 BEFORE the statement date).
Hope that helps