My credit score from all three reporting agencies is in the low to mid 600's. Nothing to do cartwheels over. I just need some help understanding what I need to do to raise these scores considerably. I know not to expect scores in the 800s but I DO know that the scores need improvement.
I have two car notes, one for 600/month with a balance of 5500, the other for 450/month with a 10000 balance. I also have an installment loan with a 2000 balance. My wife and I also have collections on our Credit Report with a collective balance of around 1500.
My wife and I bring home 4000 - 4500 a month. The main reason for the low scores is just laziness and at times living beyond our means at times. Anyway, I would like to know the most effective and cost efficient way to raise our credit score the fastest. Do I concentrate on paying off the vehicle loans and the installment loans, or do I just continue to pay the loans on time and pay off the collections, or should I do a combination of the two? We are trying to buy a house by the summer of '08 and we want our credit reports to look the best when that time comes. Any suggestions?
