How can i quickly better my credit score?

I recently requested a loan of $20k and was denied due to a credit card with a $1500 limit that is in collections. I would like to pay this off, but wish to borrow this money within the next 2 months. Will my credit score go up enough by then if I pay it off? My current score is 550. Thanks for any help you can offer.

How can i quickly better my credit score?

While it would be a good idea to pay it off, you need to keep in mind that paying it off, isn%26#039;t going to be enough. 35% of your credit score is based on payment history, so with that credit card being in collection, it%26#039;s damaged your score. Even if you did pay it off, the negative payment history would still show. The only chance in that would be to negotiate a %26quot;pay to delete%26quot; meaning that the balance would be paid in exchange for it being removed from the credit report. Keep in mind that while it%26#039;s not totally impossible to get this done, it doesn%26#039;t happen often. If you get them to agree to it, make sure you get something in writing on their company letterhead from them before sending any money. While it will help your score in the long run doing this, there are also other factors to take into consideration. By removing that credit card in collections and it by chance was the only credit card you had, then you haven%26#039;t established enough revolving credit. Or also you%26#039;ve lost points on your score for applying for that 20K loan and got denied. My suggestion would be to pay the balances on all your cards to where they%26#039;re 30% or less of the avaiable credit, and try to negotiate that pay for delete I mentioned earlier.

Even if you would%26#039;ve gotten approved for that loan, the interest that would be charged would be outrageously obscene, especially with a mid-500 score. You%26#039;re more than welcome to try any ideas you might have gotten from mine or anyone else%26#039;s answer on here for that matter, but understand that even after doing all that, you still might not get approved.

Good Luck!

How can i quickly better my credit score?

loan

Okay, if you pay that off your score will go up but I%26#039;m not sure how much. The more stuff you pay off the better your score will be. I%26#039;m thinking that it should go up a good amount seeing how the balance that your are going to pay off is pretty large. I know that it takes a month for collectors to hit your credit report but I%26#039;m not sure if it takes that long to remove it from the report. Just make sure that you get a receipt showing that you paid off the balance in full to show then bank that your getting the loan through.

Good luck!

Getting a loan is hard when your credit is not so good..trust me I know!!|||They denied the loan because of a default (the account in collection) and most likely due to your debt to equity ratio.

Paying off a large loan quickly does not improve your credit score by much. The purpose of credit reports is to show a %26quot;history%26quot; of your ability to pay off debts in a timely manner. The longer you have an account and keep it in good standing (never being late) the better your score will be.

There is no quick way outside of paying off all your debt to increase your score.

It takes years to establish a good credit score. This is what they look for when researching your credit report.

One hint: Once you have paid off an account, don%26#039;t close it, keep it open just don%26#039;t charge anymore on it. You need time to heal the score.

I have enclosed a link to explain more about credit.|||1. Use the credit card only when absolutely essential. Pay your regular expenses by cash or a debit card. This will help you budget and not go overboard with credit card debt.

2. Follow repayment schedules like religion. Don%26#039;t miss out and invite late payment fees, increased APR rates and blocked reward programs.

3. Don%26#039;t stick to the monthly minimum payment. Pay the maximum you can afford and get that outstanding debt cleared as fast as possible. By just paying the monthly minimum the credit card companies reap the maximum rewards while, as a consumer you pay the maximum interest.

4. Get rid of multiple credit cards. Although this might sound difficult, but if you are struggling to repay on time and, juggling with the repayment dates is causing you to default- it%26#039;s time to think. If there is a genuine need to keep multiple credit cards, then try to automate their monthly payments. This will ensure that you don%26#039;t default unwillingly and face the negative consequences. Read more from: http://www.credit-card-gallery.com/artic...|||It may actually go down if the card in collections was from more than 2 years ago. You are better off to spend that $1500 on a seasoned add a tradeline program that would raise your score 70-110 points in 60 days or less. I did this and was able to get my home loan. Check out the free evaluation form at www.totaldebtsolutionsllc.com They can help.