Characteristics of repairing my credit score

[hajimon]

I am writing today after my overnight reflection of my fico scores rising. Many people have asked me yesterday how did I do it and what can I tell them so they can raise their scores too.

Here are my thought about the characteristics I personally developed while working on my scores. Firstly, I pulled all 3 cra's and read them over, then i read them again, then I read them again, and finally I became so furious with myself that I said the madness has to stop, I am better than what the scores and cra's report about me.

So I got an ebook I forget the name of it but i read it read it again read it again , then I went online and starting disputing every bad tradeline I had, things starting falling off so my score went from 485 to 500. Well i had did all that I was capable of doing then. the next thing was to work on me and my traits. By this I mean I started paying bills on time stopped leaving collection letters sitting in drawers for months afraid to open them.

Then my next biggest transition came when I decided that if I couldnt pay cash for it I didnt need it. This was the greatest step in my credit recovery, because it thought me how to live within my means. It taught me that I was in control of my financial stability not society image of a good life. I paid off a car that was running me 15% interest. That car broke down so I caught the bus for a few months, bummed a ride, borrowed parents van, save up a 1000 bucks and bought a beater. Another lesson I learned cars are needs but a 1000 car drives the same place a 10000+ car drives too.

So in sumation I had to change my entire mind set while rebuilding my scores. So if your trying to build your score just so you can get into financial trouble again stop now. Building scores means so much more than the number its actually rebuilding the way you live life.

Anyway, we have to remember that building a good credit history takes time and this process is a marathon, not a race, so give the process time and your scores will begin to rise gradually.

h

[elyse449]

I completely agree!!

I'm of the mindset that BEFORE we begin the credit repair process we need to consider and be cognizant of HOW we got here.

People don't get crappy credit because they're good with money. Granted, lay offs don't help--lack of work doesn't help. But I just think it's imperative that people consider WHY their credit went south. I think this is a good starting list for why some of us are here...

1. Inability to manage funds. Ex; Some people don't get it that their bills come first. Some people may have spending habits that are unhealthy--In my own life, I just wasn't taught the why's and how's of money...that your money should work FOR YOU, not the other way around. (There are wonderful books and classes and online websites about GOOD financial management).

2. Unforseen circumstances. Health issues, joblessness, job availability issues...etc. (Why a good savings plan is KEY)

3. Ignorance about credit. Ex; I didn't know a THING about utilization and other ways to have a good FICO until I got here! (Read, read, read-learn so that you are no longer ignorant)

4. Failure to live within means. Ex; If you earn 30,000 per year, should you run out and buy a house that is 500,000? No, we should be realistic.

5. Procrastination; Ignoring the "business" that is your life. When a billing error occurs, when you're charged incorrectly, when you get a bill that isn't yours...and ignoring all that. This adds up QUICK and than you're left wondering..."why can't I pay my bills?" WELL--because you're not staying on top of things. My mother actually had someone attempt to use HER medical!! She found out because her health insurance sends statements and she actually reads them.

So...I'm with ya.

Elyse

[ZORG]

Sometimes it's not all or not always *our own* fault.

My first credit. came to me when I was still single. I had savings and checking accounts with Wells Fargo bank, so naturally it logical for me to apply for my credit through them as well. I applied for both VISA and MASTER CARDS. I was approved for and got both of them. The limit on each card was 500.00

That was about 1980.

I used my credit very carefully. I only charged one item at a time on each card, usually a clothing item, and paid off the balance before I charged another item on them. I used my credit that way for over 6 years. I got regular credit increases. I even got one because I attempted to charge something that was beyond the limit of one of my cards. The sale was declined ( That was before the days of "over the limit" fines ). Wells Fargo bank called me the following day and awarded me an automatic credit limit increase xdancex xdancex .

I had other credit as well. American express, Sears, Radio shack, etc.. I used all of those cards the same way.

:rollingpin: Then I got married. :rollingpin:

I wont go into the details of why I married her.

Soon after we were married, she discovered how much available credit I had in my name. She went ballistic. We had a child on the way, new bills to pay, AND SHE WANTED "THINGS":PartyTime:

She had her whole family ambush me and basically 'force' me to raise our lifestyle to their expectations by using my credit.

That was the beginning of the end for me.

She divorced me after a year of marriage and left me floundering with ALL of my credit totally full to the limit. Also, I was facing child support payments, spousal support (I had to pay that for a year) as well as many other financial obligations all on my own.

I just threw my arms up in the air and gave up.

I have never paid any attention to my credit issues until last December. My son will be 18 years old this next January, child support will be over, and my current wife of over 10 years (I did it right this time) and I want to buy a house together.

So for the first time in my adult life I'm looking at my credit report and trying to fix current issues as well as to put my spending and obligation patterns back the way they were in 1980.

Sorry for the long post. I had to vent.

[hajimon]

Another way we get into trouble is that we become like children at times, I got to have this I got to have that right nowwwww. My children are 7 and 5 Im a single father, so I had to get myself together so I can teach them how to be responsible with finances. Things arent the same as when I grew up in the 80's and 90's. I remember my freshman year in college when I got my first citibank card and amex. I was on top of the world, because I saw my parents with lots of credit. I maxed out the citi card and closed the amex(which was a great move then). How in the hell can an 18-19 year old be trusted with a cc. My parents never sat me down and discussed finances w/me all they said is pay your bills on time, etc... And we sent you to college so you should have learned all of this stuff there. Word to parents college doesnt teach you about the real world of finance unless your a business or finance major. Now I see the finance industry are starting up workshops all over the country strictly for college kids about credit. so some youth today are getting behind the 8ball b4 they even get into the real world.

Now I have a chance to change the behavior of my children b4 they get into the real world. Even now at their young age I show them how to pay a bill, how to balance a checkbook, how to start a budget, how to read a cc statement, what a collection notice is, what a credit report means,,,etc..

I will not let them learn the hard way like daddy, hopefully, they will escape the financial traps that I had to endure.

sorry for venting

h