How can I build my credit score fast?

My credit score is 525. I know very poor! I owe $1500 in medical bills and $600 in other bills( con ed, cable and verizon) these are all in collections. I also have a car loan in the balance of $23,000. I have been paying on time since I opened the account in march 2007. That is the only account in good standing. Now how can I bring up my credit score? I cant even get a credit card!!! Help!!!!

You've come to the right place. The beauty of Yahoo! Answers is that it's a vast storehouse of knowledge from different people. Now, that doesn't mean that you're going to get good information all the time, but for the most part, you can always get some pretty good ideas.

As for your situation, I can definitely help. What you should know is what makes up your score:

1. Payment history- 35%
2. Total debt owed to available credit ratio-30%
3. Length of time establishing credit-15%
4. Types of credit established-10%
5. Inquiries and New accounts-10%

So, we already know the obvious, which is the collection accounts($1500 medical, and the other $600) that's tanking your score the most, especially if these collection accounts are less than 2 years old. The older the account, the less effect it has on your score. My suggestion before dealing with any of these would be to check whether or not they're within the past 2 years. If so, I would try to negotiate a pay to delete, which is a payment agreement in exchange for removing the account from the report. The collection agency is obligated to do this, however it is still possible. If the debts are more than 2 years, then you should definitely try to negotiate for a pay to delete, or simply wait it out for the FCRA 7Â½year rule and it stops reporting on your credit. Keep in mind that if you pay a collection and you don't get a pay to delete agreement, the payment updates the account. making it look more recent than it already is, which can actually LOWER your score. The account has already damaged your credit when it went into collections, just simply paying it without a pay to delete agreement, isn't going to reverse the damage that's already done. At least with a pay to delete agreement, the account is removed like it never happened, and will help you a lot more than if you just only paid it.

Well, the good news for you is that you do have a car loan, which is an installment account building credit for you. Since you've only had it for a little over a year, give it another year for it to really have a more positive effect towards your score.

As for additional accounts, my suggestion in your situation would be to open one, if not 2 secured credit cards. These are the easiest credit cards to get mainly because a deposit which is used as collateral is placed upfront in order to establish a credit line. For example, if you deposit $300, then the credit line would be $300, and so on. Secured cards work just like a regular card, the only difference is that a security deposit is placed upfront. As long as you keep the account in good standing, the deposit is given back at some point later on. The key is to make small purchases ($20/month max) that can be paid off on time every month to show activity. There's no need in running up the balance, going deeper into debt. Just purchase and pay, just to show that you're using the card repsonsibly. Do that for at least 2 years straight, and neogtiate the pay to deletes for the collection accounts, then you will see a major difference in your score.

I posted links to some useful information like secured cards and how to negotiate a pay to delete below, I'm sure this will help you out a bunch

Good luck!

get your bills low or below half what you owe and pay early or on time. it will go up fast. always pay over min. payment due.

Sounds like you're living beyond your means. Time to scale back - then you'll have more money to pay the bills you need to pay.

Right now, you wouldn't want a credit card anyway. Opening one drops your credit score sharply for a year or so because it gives the appearance that you're credit hungry.

(Have you thought about getting rid of the car? Sell it, use the money to catch up on the bills, and then buy something less expensive. You might not like it as much, but do you really like being surrounded by collections agencies all the time? I'll betcha that would be a quick way to take a lot of stress off ya and help you get re-established and back on track.)

There's some good info and lots of good ideas on www.myfico.com, and also on the Federal Trade Commission website www.ftc.gov/credit ... but the bottom line is, you've gotta tighten the belt and pay off your debt before you can afford 23 grand for a car.

To Repair credit score
Your credit score is based mostly on:

1. Length of credit history
2. Payment history.
3. Ratio of credit used to available credit.
4. Number of credit inquiries you authorized.

If you cancel your card, you'll be hurting your credit ratio. (#3).

You want to deliberately keep your oldest credit card open, even if you never use it.

You want to always pay the minimums of each loan on time every month.

You want to keep your available credit high, but actually only have balances equalinig 25% or less.

You want to keep your credit inquiries to a minimum. Try for no more than 3 or 4 per year for any type of loans.

You do these things and your credit score will quickly soar into the 700s.

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http://www.loansandinsurances.com/

Contact all of your creditors. Negotiate a settlement -1/2 or more off for immediate payment. - - Pay them off. Then chech your score.

First, you have to pay off all your debts which are in collections, don't make new debt, and keep on pay your car loan on time.

It took time to make your score what it is, it will take time to make it better.

1. Deal with the debt you have. Talk to all the "collections" they will usually settle for less than you owe.

2. On any bill you have, always make some sort of payment even if it isn't the "full amount". It will help with you credit score because you won't become delinquent and it shows the creditor that you are making an effort and they are usually willing to work with you.

3. Get another job to help pay off your debt.

4. If you can afford to do it (you won't lose your shirt) sell the new car and get a used one or use public transportation.

5. Look around for "free" personal finance classes. If you have no other option look at a debt consolidation company to help you out.

Do Not Add to the Problem by Getting in more Credit Debt!!!

Pay the bills you've been deadbeat on.

There is no fast way to make your credit go up. Continue to make on time payments on the auto loan you have now. The miscellaneous 600$ is what is really keeping you down. Many people recommended paying these collection accounts off. That is not actually the way to go. If you just pay the collection agencies money, they will not raise your score. Doing so will only result in the collection account being notated that is was paid. This doesn't raise your score. To get the score boost you need to get these deleted off your credit profile all together. Negotiate a pay for delete with the collection agencies. This may take some work, they may tell you that they don't deal with credit reporting, the original lender has to deal with this and so on. Collection agencies buy bad debt, they don't "have it sent to them on behalf of....." as they often claim. Since they bought the debt the can delete it from your credit report. Again stick to your guns and tell them you will only pay if they agree to delete the item off your credit reports. Don't give them any payment info until they agree. If they do agree GEt the deal in writting nothing verbal. Once you tackle these try to do the same with whomever has the medical bills. Best of luck!

First of pay off all your debts first, don't spend when you can't afford; pay of all credit cards bills on time and pay it full will make a rapid jump of score.

Pay the bills on that are in collection...that will remove those items from your credit report, which will make your score increase.

Kindly Read This : " Factors That Raise Credit Score Fast "

Here : http://www.flixya.com/post/GOLDCash360/803037/Factors_That_Raise_Credit_Score_Fast

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