If you have bad credit...

noah-bear

Do you worry about things? Right now, we have one credit card near it's limit, and thankfully the rate can't change.

But, with us getting ready to move this fall, my credit might ruin whatever chance we have of getting a good place.

Is there a way I can start to fix it before we move? Our only debt is the CC and my student loan (which is the reason it's ruined). I plan to pay it off with our tax return. If not all the way, then half way. 

johnnys june

I'm in the same boat!  I welcome the answers as well!  DH and I have been talking about moving in the next year or so (depending on TTC), but planning for it is a nightmare with my credit.

jinx75

Honestly ladies the only way to truly repair your credit is to pay off the debts that are owed and pay all future debts on time.  I learned this lesson the hard way when I was 18.  I got several store cards with high interest rates and ran them up to the limit.  I didn't pay on time and late fees and interest accrued.  By the time I was 22 I had about $5000 in credit card debt and it sank my credit score.  Luckily when I left my job of 5 years and cashed out my 401k I was able to use the $$ to pay off the debts I owed but it took a good 2 years of steady on time bill payment for my credit to be repaired.  Now at 35 years old my score is in the mid 700s.  So the two things you need to repair your credit are time and current payments. 

BTW even with bad credit it is possible to secure a nice place to live, renting that is.  I know with the economy in the toilet buying is almost impossible for those with top knotch credit let alone anyone with less than perfect credit.

sisterrael

Student Loans are not neccesarily bad for your credit, unless you borrowed from an irresponsible source, have failed to pay loan payments, or borrowed too much while in school.  The only way to ensure good credit is like a PP said, pay off your debt, pay on time, and keep paying on time.  You can talk to your bank about ways to improve your credit, especially if you are planning to purchase a home when you move.  Either way, take charge of it now and Good Luck!!

noah-bear

Jinx and Sisterrael-

 The problem that I had was my student loans because I put them in forbearance but they never contacted me to tell me I need to start payment again. I thought I had paid them off (turns out it was my other two loans). So, after being nearly 6 months past payment due, I got contacted to be told I was delinquent.

Other than the loans, I've never had more than $1500 out in credit and we make monthly payments double the minimum.

Between the scholarship money for DH and tax returns, I'm hoping to get all our debt paid off. Right now, we're sitting at $5200 in the whole.