Any ideas on the best way to re-establish credit after having a bad credit record?
If one has bad credit due to unpaid medical bills what is the best way to re-establish credit.
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Pay your medical bills. Everything will be peachy in your world after that.
The only other way is to save your own money. Save and invest it in something that can provide you a higher return of income regardless of your credit history.
get a credit card and be smart with it, buy grocerys and gas once a month and then pat it all off. thats a good way, anything can be credit though, from paying a gym membership to cell phone bill on time every month try all those
probably need to start with one of those high interest credit cards - dont max it out and make sure you pay it off every month, that way the interest rate doesn’t make a difference. For instance if you get a $1000 limit, don’t spend more than a few hundred bucks on it a month and make sure you pay it off.
Or you might want to try to do a car loan - put as much money down as possible and pay it off as quick as possible. Again, your interest rate will probably be high but you can offset that with the money down and the shorter term.
Good luck
Make sure everything on your report is accurate. More than 50% of credit reports contain inaccurate information that can hurt your score. If sounds like you know your collection accounts are accurate so you will have to pay them. Get a credit card and establish good credit. Use only 30% of your available credit and always leave about $20 on your balance. Good Luck!
if bills are paid off get a secure 500.00 credit card use it and pay the bill in full every month. or rent something and make payments on time. buy or lease a car, there are ways make sure all your bills are removed from your credit report.
First. Get all three credit reports free from freeannualreport.com.
Second. See if there is anything you could settle for at 50%, if so send them a Pay for Delete letter. My fico.com has examples of these.
Third. Check to see how old these bills are, depending on the state you live in it should fall off in 5 years. If you are unsure on a debt you can file a dispute with the credit reporting agency, if they are unable to get information they will delete it off your report.
Fourth. Keep your credit clean from here on out.
After you have gone through all of your baddies.. go talk to your bank for a loan, like on a car. If they have seen you are making an attempt to pay some bills they are much more likely to give you a loan. Plus, on medical they are much more likely to overlook it.
Go to myfico.com click on the forum and do your homework before starting to repair your credit. There are people just like you on there and some very valuable info. Good Luck