How do I fix my credit?

2015-09-10T07:53:50-04:00

My wife and I are trying to fix our credit to buy a house,what do we pay first that will have the fastest results?

Response by SGT Ben Keen made Sep 10 at 2015 7:59 AM

2015-09-10T07:59:50-04:00

I'm not sure if it totally applies to you, but I have recently started to do the same thing through the help of a Finical Planner. What we decided to do was to attack the "low hanging fruit" first. We went through and paid off those things with the lowest amount due and I'm working my way up. The other thing we did was we called some of creditors and worked out a payment plan for the higher amount stuff. Some of them were willing to work with me and offered me deals to pay a reduced amount to close out the accounts. This could be something you can look into.

Response by SSG Private RallyPoint Member made Sep 10 at 2015 8:11 AM

2015-09-10T08:11:18-04:00

Reverse snowball effect. Pay off anything small. Use the money from that monthly payment towards the next bigger bill. Pay that one off, move on to the next bigger bill. Cancel all but one credit card, but remember not to create new bills.

Response by PO1 John Miller made Sep 10 at 2015 8:13 AM

2015-09-10T08:13:02-04:00

Normally start off with your biggest debt, which in my experience is usually credit cards or car loans. But the main thing to remember is, you don't necessarily have to be debt free. Your debt has to be controlled and you need to show a history of consistent payments. Also make sure those payments are above the minimum required.

One other thing I learned while going through a background investigation was to obtain a copy of all my different credit reports and look for any collections on them. If those collection notices have been paid off or otherwise taken care of, you can file a protest to get them removed as long as you have some documentation showing that you paid off that particular debt.

Response by CMSgt Mark Schubert made Sep 10 at 2015 8:51 AM

2015-09-10T08:51:33-04:00

What helped me more than anything about my finances was to understand what money really is. Most think it's a way to happiness - and the more you make, the better off you are. Both are far from the truth as evidenced by happy people with VERY little or nothing (just go to any 3rd world country or on a mission trip somewhere - that will open your eyes! :-)
Anyway - start by listening to Dave Ramsey - first of all, he LIVED through what you are going through - and he solved the puzzle. To me, these are people I want to listen too - people who are now "fine" and were exactly where I am at! Follow him on twitter/FB and listen and learn.
The only other thing I want you to think about is how long did it take you to get into this mess you are in? Maybe a series of decisions over several years? There isn't going to be a "quick fix" to a problem that has existed for a long time. Don't look for the quick fix - fix the root issue and you will never have a financial "problem" ever again! Yes - that IS possible!
If you take FPU (you will understand this acronym if you look up Dave), you will not regret it!

http://www.daveramsey.com/home/

Google

It's the first day of autumn #GoogleDoodle

Response by Capt Seid Waddell made Sep 10 at 2015 8:59 AM

2015-09-10T08:59:46-04:00

Pay off and close all credit card accounts. The line of credit offered on the cards is considered money that you have borrowed whether you have exercised it or not. If you keep one account for emergencies only make sure it has a low credit line.

Check your credit history to make sure there are no mistakes.

Response by SPC Jan Allbright, M.Sc., R.S. made Sep 10 at 2015 10:01 AM

2015-09-10T10:01:16-04:00

If your credit is already dinged than only time (about 7 years) will clear your Equifax. If there are debts that are in arrears or show really damaging comments on the report, contact the debtor and see what you can do. If you find anything inaccurate, you can post clarifying information to your report. Do not spend 6 seconds with the Credit Repair people!
Remember - the credit report is not your property, it belongs to the reporting agency!

Response by MSG Private RallyPoint Member made Sep 10 at 2015 10:27 AM

2015-09-10T10:27:33-04:00

If you are looking for the best help and advice possible, then you should contact MilitaryOneSource. They give financial advice and can assist you best. Their website is http://www.militaryonesource.mil and their contact number is [login to see] .

Response by TSgt Kenneth Ellis made Sep 10 at 2015 11:30 AM

2015-09-10T11:30:57-04:00

You need to bring down your credit card debt. Pay them off.

Response by LTC Private RallyPoint Member made Sep 10 at 2015 11:32 AM

2015-09-10T11:32:03-04:00

I agree with that our colleagues are saying. I would examine the credit report and be certain there aren't any errors. I am a fan of secured credit cards to help rebuild credit, but look around, the fees can be higher on some. Personally, I pay myself first and make saving a priority. That way, I see rewards as the debt is reduced and I have an emergency fund. Taking responsibility and polite and clear communication with creditors can go a long way. Keep us posted!