What is the best way to repair your credit?
spfldgirl asked:
My fiance recently tried to refinance an auto loan and was denied because of his credit. What can he do to improve his credit? Since moving in with me three years ago, he has made all his payments on time. He only has one credit card and an existing auto loan (which is from a sub prime lender).
My fiance recently tried to refinance an auto loan and was denied because of his credit. What can he do to improve his credit? Since moving in with me three years ago, he has made all his payments on time. He only has one credit card and an existing auto loan (which is from a sub prime lender).
Also, if we get married before his credit improves, how badly will his credit affect mine once we are married? My credit is currently considered to be ‘good.’
His credit isn’t very good because of a bankruptcy and lots of late payments.
Nicole
Tags: Fiance, Improve Credit, Refinance Auto
March 8th, 2011 at 6:15 am
He needs to keep on paying his bills on time, and preferably, get rid of the loan that is being paid to the sub-prim lender.
His past debts and past dues do not hurt your credit at all. They remain his debts alone UNLESS you decide to become a joint account holder (don’t do this). Any accounts taken out in both names will go on both credit reports, but accounts taken out in your name remain yours and taken in his name remain his.
March 10th, 2011 at 7:39 am
What Steve said, but why is his credit bad? Does he have past debts that he hasn’t paid off? He’s going to need to fix that before his credit can be stable again.
March 13th, 2011 at 6:08 pm
Credit scores and histories are not merged when you get married.
It takes time to heal bad credit. If he has had recent defaults or late pays, then it will take at least 2 years to recover as your credit score is most heavily weighted on what’s occurred in the past 24 months.
If he has non credit credit card defaults like cell phone or utility accounts, then paying those back can help your credit rating
- Paying back defaulted credit card debts won’t help your credit as charge offs stay on your credit report for 7 years….paid or unpaid.
- Only renew contact with debt collectors over defaults if you can afford to settle for less in a one time, up front payment. Paying small amounts per month to collection agencies will not reactivate closed accounts and give you good credit again.
- If you’re carrying large balances on credit cards, get those under 25%. This can make a big difference.
Paying back defaulted debts on your credit report:
- Renewing contact with debt collectors over old defaults can be a tricky move to make…esp. if the defaults involve defaulted credit card debts. Many collection agencies are highly aggressive and you may get an unpleasant surprise at how they respond to your renewing contact with them. Make sure you know what you’re doing first.
How to pay back non credit card defaults:
How to pay back defaulted credit defaults:
- You can get a free credit report at – This is the real free site to get your credit report once a year without a credit card. – NOT freecreditreport.com
March 15th, 2011 at 5:36 pm
Even after you get married you will both maintain your individual credit scores. If you have any joint accounts they will be reported separately to both of your credit bureaus.
As far as repairing his credit, the main thing is to pay all his bills on time. With his credit card he should keep his balances low, but use his card and pay off as much as he can each month. With the auto loan he is probable paying a high interest rate due to his bankruptcy. He needs to continue paying the loan in a timely manner so he has nothing but positives reporting to the credit bureaus.
He may also want to pull reports from all bureaus and make sure there is nothing on them that should not be. Has he had the auto loan for three years? Three years of paying on time should put him in a position for a refinance. Are you sure it was due to his credit? It could also have to due with the value of his car…not enough info here to know for sure.
If you have good credit you could co-sign for him and it will bring his rate down. Just make sure he pays on time so it won’t negatively affect your credit. Good luck.
March 16th, 2011 at 10:58 pm
There is nothing that can be done to repair credit that is bad because of a bankruptcy. The only way that it can be repaired is to wait 7-10 years for it to repair itself.
March 18th, 2011 at 1:15 am
Of course it goes without saying all your bills need to be paid on time or a little early. When paying your bills try your best to at least pay 20 to 25% more then what the minimum is called for. Some of the other things you might want to do is check you credit report to make sure that it is reporting correctly, Sometimes credit reporting agencies don’t remove derogatory information. You also need to curb your credit card use, If you carry a high balance ( ie. more than 75% of your CC limit ) that will be a red flag to companies that check your credit report. One last thing, The only person that can repair your credit report is you, All these companies that you see on TV or ONLINE can do nothing for you it’s all on your shoulders. Remember, repairing your credit report takes time, there is no such thing as a quick fix. GOOD LUCK