I’m trying to get some insight for how to improve credit score. Last year (2010) I was laid off in February, and had just enough in savings to cover my basic expenses (rent, food, insurance) until I started getting unemployment checks in May. So basically, my credit accounts (except for one) when to 60 days past due. I called the CC companies well in advance, explaining the situation, and no one could help me until I was at least 30 days over due.
At that point (30 days late) called again, but wasn’t getting my unemployment check, so had to wait until I was 60 days late. At that point, all my credit accounts offered 0% for six months to 1 year, but the condition was that I had to close my accounts. I agreed, and have paid diligently for the past year, more than was due and early. (My credit went from 710, to 590 almost overnight) I now have a job, and have figured out I can pay my debt off in 1.5 years. But since I have no available balance on my credit cards, my credit score isn't even moving.
So, is there a way to raise credit score and get these creditors to reopen my accounts. I don’t even care if they just reopen them with the limits that I am at now. My goal is to pay them off. I destroyed all the cards and have little intention of using credit as a crutch ever again. Or do you think I can get a personal loan to consolidate this debt (with a score of 600?)
Why do I care about raising my credit score?
#1 I have a side business that I would like to take full time, but I cannot get a loan for the technical equipment I need with my credit score. (I’ve done the numbers, the forecasting, and even have about 30 clients lined up, could pay this off in less than 6 months)
#2 I am looking at purchasing a four plex investment property to gain some cash flow after expenses, but a bank won't even look at me.
Am I stuck in the FICO score abyss for four to five years waiting for my credit score to improve, or is there some way I can improve my credit score like 100-130+ points in a year? Its not like I was previously irresponsible with my credit, just ran into tough times and was 60 days late, ONCE in a 9 year credit history.
I’m looking for creative ways to improve my credit score. Waiting around is not an option. Any advice is greatly appreciated.
Five Ways to Boost Your Credit Score Over 100 Points!