How Long Does It Take To Repair Your Credit? - PeachParts Mercedes-Benz Forum

SwampYankee · #1 03-03-2008, 03:55 PM

In light of LaRondo's "Financially Illiterate" thread and my past disgressions, how long does it take to repair your credit history? I'd imagine like most things, it doesn't take long to put it in the $h!tter but it takes a long time to bring it back up again. 5 years? 7 years?

Mine isn't great, as you might imagine carrying $45K in CC debt at one time might have a negative impact, mid-600's the last time I checked. Unless I get the chance to buy my grandmother's house in a few years, I'm not moving. I'll never buy a car again that I can't pay for outright. Home appliances and electronics I pay cash for now. I suppose there might be some home improvement loans or maybe a boat purchase sometime within the next 4-5 years. In other words, I'm guessing I've got some time to improve it before I'd need it.

My aunt is doing some home renovations/reconstruction and as a result found out that her credit rating was over 800. It's time for me to get mine headed back in the right direction.

Dee8go · #2 03-03-2008, 03:56 PM

A lot longer than it takes to eff it up!

Dee8go · #3 03-03-2008, 03:56 PM

I'm sorry, Swamp. I just couldn't resist the opportunity to be a smart ass yet again.

SwampYankee · #4 03-03-2008, 03:57 PM

Quote:

Originally Posted by Dee8go

A lot longer than it takes to eff it up!

Thanks for clearing that up, Dee!

Mistress · #5 03-03-2008, 03:57 PM

That sounds like a question for Howitzer...

SwampYankee · #6 03-03-2008, 03:58 PM

Quote:

Originally Posted by Dee8go

I'm sorry, Swamp. I just couldn't resist the opportunity to be a smart ass yet again.

I'd be worried about you if you didn't!

Jordan G · #7 03-03-2008, 04:04 PM

Yeah but those authentic Tedy Bruschi jerseys for the whole family were so worth it, weren't they?

Sorry - I'm no better than Dee8go - I haven't a real answer either. Sounds like you're on the right track though....probably not much more you can do, after having righted the ship.

G-Benz · #8 03-03-2008, 04:29 PM

Everything I've read says seven years...which is the recovery period for the worst-case scenario...bankruptcy.

Not sure where your credit score lies after that, but I suppose it's not restored to its former glory until some new credit history can be established.

I suspect it would take a decade to fully restore your credit to health.

And to Swamp...just carrying a huge debt load isn't sufficient to mar your score...I think it's a bit more complicated than that. Slow pay and /or skipped payments can do more harm than being over the nominal debt/equity ratio banks use to gauge lending rates.

Heck, for a time, I used to laugh at the credit consolidation commercials when the endorsers would give you a shocking debt figure...like $50K...HA! They ain't seen MY kind of debt!!!

But I made my payments on time, and with a few sacrifices, eventually paid most of it. The trick is to maintain sound financial practices after that.

Credit is a bit like crack! Addictive, and when you finally get help and recover, have to learn to stay away from it. Otherwise, you get a taste of it and get on that cycle all over again!

Jim B. · #9 03-03-2008, 05:10 PM

Quote:

Originally Posted by SwampYankee

In light of LaRondo's "Financially Illiterate" thread and my past disgressions, how long does it take to repair your credit history? I'd imagine like most things, it doesn't take long to put it in the $h!tter but it takes a long time to bring it back up again. 5 years? 7 years?

Mine isn't great, as you might imagine carrying $45K in CC debt at one time might have a negative impact, mid-600's the last time I checked. Unless I get the chance to buy my grandmother's house in a few years, I'm not moving. I'll never buy a car again that I can't pay for outright. Home appliances and electronics I pay cash for now. I suppose there might be some home improvement loans or maybe a boat purchase sometime within the next 4-5 years. In other words, I'm guessing I've got some time to improve it before I'd need it.

My aunt is doing some home renovations/reconstruction and as a result found out that her credit rating was over 800. It's time for me to get mine headed back in the right direction.

Pardon me if this sounds impolite, but how on earth would one run up $45,000in credit card debt???!!!

The interest rates on many of these is FAR above the legal rate of usury (which is 20% I think) but the Bankers' lobbyists have of course bribed the Congress to have bajnks exempt from the usury laws. Wonderful.

I would think the rules
of interest and compound interest could eat you alive just keeping up with the monthly interest, to say nothing about the principal!!!

Medmech · #10 03-03-2008, 05:27 PM

This thread could go on for months, the new FICO 08 scoring model is going to be a disaster according to the credit guru's.

There are many things you can do to improve your credit but to get started stick to the basics.

#1 always pay on time
#2 maintain a balance of less than 50% of the available balance, use multiple cards if you have to. If you have an Amex Gold, Platinum cut it up because Amex reports in a fashion that hurts your credit. Since there is a single monthly payment they report your high credit the same as your payment which puts you at 100% of available balance.
#3 If you have a Home Equity make sure it is being reported as installment and not revolving, see #2.

#4 will get me in trouble but its fact so I'm saying it anyway, never ever, ever, ever pay a collection unless the collector agree's to DELETE the item from your report, google is your friend on this one if you don't believe me. The collection industry is in shambles and widely unregulated so negative inaccuracies are becoming common and collectors are holding your credit hostage...Know your states SOL laws ------->f-um Sometimes I call collectors for customers just to burn off steam, I wouldn't be surprised if one of them has not thought about suicide when was through with them, I have made them cry, yell and one threatened to kill me.

and I don't care how you got into debt that's your business, the important part is that you find a way out. Seeing a certified debt councilor is always my recommendation.

t walgamuth · #11 03-03-2008, 10:24 PM

Mid 600 is not all that bad. Anything over 700 is considered pretty good, I think.

Tom W

TMAllison · #12 03-03-2008, 10:36 PM

Quote:

Originally Posted by Howitzer

This thread could go on for months, the new FICO 08 scoring model is going to be a disaster according to the credit guru's.

There are many things you can do to improve your credit but to get started stick to the basics.

#1 always pay on time
#2 maintain a balance of less than 50% of the available balance, use multiple cards if you have to. If you have an Amex Gold, Platinum cut it up because Amex reports in a fashion that hurts your credit. Since there is a single monthly payment they report your high credit the same as your payment which puts you at 100% of available balance.
#3 If you have a Home Equity make sure it is being reported as installment and not revolving, see #2.

#4 will get me in trouble but its fact so I'm saying it anyway, never ever, ever, ever pay a collection unless the collector agree's to DELETE the item from your report, google is your friend on this one if you don't believe me. The collection industry is in shambles and widely unregulated so negative inaccuracies are becoming common and collectors are holding your credit hostage...Know your states SOL laws ------->f-um Sometimes I call collectors for customers just to burn off steam, I wouldn't be surprised if one of them has not thought about suicide when was through with them, I have made them cry, yell and one threatened to kill me.

and I don't care how you got into debt that's your business, the important part is that you find a way out. Seeing a certified debt councilor is always my recommendation.

Isn't #2 don't spend more than you can afford to pay back at the end of the month; and shouldn't a debt councilor always have a dot ORG after their name and be FREE; otherwise run?

WVOtoGO · #13 03-03-2008, 10:59 PM

Quote:

Originally Posted by TMAllison

Isn't #2 don't spend more than you can afford to pay back at the end of the month ?

It sure should be.

Matt SD300 · #14 03-04-2008, 01:04 AM

Quote:

Originally Posted by Howitzer

This thread could go on for months, the new FICO 08 scoring model is going to be a disaster according to the credit guru's.

There are many things you can do to improve your credit but to get started stick to the basics.

#1 always pay on time
#2 maintain a balance of less than 50% of the available balance, use multiple cards if you have to. If you have an Amex Gold, Platinum cut it up because Amex reports in a fashion that hurts your credit. Since there is a single monthly payment they report your high credit the same as your payment which puts you at 100% of available balance.
#3 If you have a Home Equity make sure it is being reported as installment and not revolving, see #2.

#4 will get me in trouble but its fact so I'm saying it anyway, never ever, ever, ever pay a collection unless the collector agree's to DELETE the item from your report, google is your friend on this one if you don't believe me. The collection industry is in shambles and widely unregulated so negative inaccuracies are becoming common and collectors are holding your credit hostage...Know your states SOL laws ------->f-um Sometimes I call collectors for customers just to burn off steam, I wouldn't be surprised if one of them has not thought about suicide when was through with them, I have made them cry, yell and one threatened to kill me.

and I don't care how you got into debt that's your business, the important part is that you find a way out. Seeing a certified debt councilor is always my recommendation.

Hey Howie,

Explain more, about how..." am -ex "... messes up ones credit?

I dont have that card....but have been told it can build ones credit score?..

Costco... is always pushing it.........

Medmech · #15 03-04-2008, 06:36 AM

Quote:

Originally Posted by Matt SD300

Hey Howie,

Explain more, about how..." am -ex "... messes up ones credit?

I dont have that card....but have been told it can build ones credit score?..

Costco... is always pushing it.........

Only the Amex cards that have to be paid in full hurt your score, its not Amex's fault but the way that the scoring model is built and the way Amex reports hurts the subscriber. The Amex Blue, Clear and other cards that are like traditional credit cards are fine for your score. Personally I'm not a score junkie and am keeping my Amex Platinum because of the benefits for large purchases, travel clubs, airport clubs, ect.

On a side not under the new pricing models for mortgages you want to be above 680 to avoid risk based pricing hits that are coming to the industry .soon.

**Disclaimer** I personally don't like credit scoring and in my own experience of reading hundreds of credit reports, I think the system is severely flawed and is designed to benefit creditors.