Trying to get my credit lined out

[Anonymous]

I am positive I will not ask the correct question but here goes.

I am considering using a credit repair service like SkyBlueCredit to get my mess fixed.   I am trying to find the best way to get my credit fixed so we can buy a house in the next year or so. My TransUnion score is 572, Equifax score is 559. I own the house and property that I bought in 1992 and I will more than likely give it to my 16yr old son.   As of right now, I have 5 bad debts and that total is approx $1200 and we plan on paying that off in the next month or 2.   We just purchased a car for $14,000 and make about $285/month payments and we are current on it. My utilities to include cell phone and internet is approx. $650/mo. My gross pay is approx. $65,000.00 per yr.   

1. Would it benefit me to use a credit repair company?
2. Approx how long would it take to get my credit to where I would be able to start looking to buy a home.
3. What are some ways I can improve my credit score by paying off the bad debt and paying my monthly payments on time?

Any other suggestions or tips would be greatly appreciated!

[Anonymous]

We'll need some more information ... do you have any credit cards currently? Do you have lates on your current mortgage? 

[Anonymous]

I have 1 Amazon credit card and the account is closed and balance is $649.  This is 1 of the bad debts that will be paid off in the next month or 2.   Mortgage is $0. I own my own home and property and it was paid off in 2005.

[rmduhon]

You might want to get your scores from here, since they provide mortgage scores. At the very least, get your actual FICO scores. Creditchecktotal.com has a 7 day trial for $1 that will give you Fico 08 scores from all 3 bureaus.

[Anonymous]

Yes  we need a little more info..   

Do you have any credit cards because if you dont you really need to get some. Mortgage lenders definitely want to see how you deal with different kinds of credit so they can gage whether or not you will actually pay the loan off.  Have all your car payments been on time. Have all the mortgage payments for the home you currently own been on time. 

[Anonymous]

Paying off your collections should give you a nice boost. You only need a 640 to qualify for  a mortgage. After you pay off your debt which really isnt alot. Your score should have a nice jump. then Id try applying for a credit card or two.  Id start with cap one  and also try to get in with NFCU. They will start you off with a nice limit if you get approved.   Um also.. for those collections you have and are planning on  paying off. Id definitely do a pay for delete. 

[rmduhon]

Paying the collections won't give a score boost unless they are removed. It will prevent monthly updating which will keep scores down, if they are being updated monthly.

[Anonymous]

I do not have any credit cards as of right now. The car payments have been made on time, but, we have only had it 2 months. Before we bought the car my credit score was right at 481. We bought the car and made 1 payment and then I checed my credit score and it had jumped up to 572 with TransUnion.

[medicgrrl]

If you list all of your negative accounts with details, such as creditor, balance owed, date of first delinquency you will get better advice.  The installment loan definitely helps.  Having 3 revolving accounts will also help, but only if you have 2 accounts showing $0 balance and 1 account reporting a small balance.  

Paying off charged off accounts will most likely help too if they are revolving accounts.  There are ways to request collection agencies to delete collections if you pay them off.  Listing who your accounts are with will help people advise you on the lenders and collection agencies and what they may or may not do.

[Anonymous]

As has been said ... you need some credit cards ... apply for the Cap 1 Platinum ...  I would think you'd be approved with that score. If not, get the Cap 1 secured card. Get a store card ... maybe Overstock, it's pretty easy to get. 

You also need to get a true credit score, either from CCT or MyFico, if you're relying on Credit Karma scores. 

And yes, paying off your debts is good, but try to negotiate a Pay for Delete on those.