Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Many people believe that they can go from bad credit to good credit in just 3 years, when in reality, is more like 5 to 7 years. It takes way longer than people realize. I'm talking about going from a 450 score to 750 which is the ideal, where you qualify for good rates. You can quickly go from 450 to 550 in one year, depending on your situation, but it will take forever to go from 550 to 750.
The system is designed in such a way, that the higher your score gets, the slower and longer it takes to see improvements. One little late payment can basically destroy what it took years to build. In the end, it doesn't mean anything, because millions of people with good credit, can also default on their loans due to many reasons outside their control, such as having an accident, disability, family problems, getting laid off, etc. Nothing is safe and guaranteed in life. It is a flawed system, that just assumes that someone has bad credit, because of bad choices, when in many cases, is because of bad luck, due to the system itself which is designed to bring you down and keep you there.
The sheep buy into the system and shame the ones who have bad credit, which works in the banks favor, because now everyone will pursue the good credit dream, which means more for them in the form of fees, charges, interest, etc.
I have a 610 credit score right now, I've been stuck here for almost 6 months, it has barely increased, what 10 points? even though I'm making all my payments on time, I have gotten my student loan reduced. I have gotten credit limit increases. I opened a new credit card. This is a load of freaking bull****.
It is designed this way to keep people with bad credit, continue to have bad credit, this allows them to charge more interest and make more money. What would happen if every single person had good credit all of a sudden, do you think this would benefit the lenders and banks? lol
I don't think 5 to 7 years to go from bad credit to good is unreasonable. I say this as someone who went from such a situation. But I guess I'm just a "sheep" according to you. My own poor decisions brought the bad credit rating on me, not bad luck. I had to learn a lot of things the hard way. And you typically don't learn those lessons in just 6 months. It was a process for me that took several years.
I learned that my lack of money was a symptom of other issues, as is almost always the case with most money problems. I lacked confidence, which hurt me in my work life as well as in my relationships and financial life. Most people's money problems involve one or more of the following issues:
--Not making a serious effort to save/pay down debt when they do have half decent incomes (Newsflash: Saving 10% of your income is really on the skimpy side).
--Not thinking long term.
--Getting into friendships or intimate relationships with people who are wrecks with money (Boy, do I know about that one!)
If you feel this strongly, stop playing their games. Close your accounts, pay off your debts and live your life instead of obsessing over a bank given number.
Many people believe that they can go from bad credit to good credit in just 3 years, when in reality, is more like 5 to 7 years. It takes way longer than people realize. I'm talking about going from a 450 score to 750 which is the ideal, where you qualify for good rates. You can quickly go from 450 to 550 in one year, depending on your situation, but it will take forever to go from 550 to 750.
The system is designed in such a way, that the higher your score gets, the slower and longer it takes to see improvements. One little late payment can basically destroy what it took years to build. In the end, it doesn't mean anything, because millions of people with good credit, can also default on their loans due to many reasons outside their control, such as having an accident, disability, family problems, getting laid off, etc. Nothing is safe and guaranteed in life. It is a flawed system, that just assumes that someone has bad credit, because of bad choices, when in many cases, is because of bad luck, due to the system itself which is designed to bring you down and keep you there.
The sheep buy into the system and shame the ones who have bad credit, which works in the banks favor, because now everyone will pursue the good credit dream, which means more for them in the form of fees, charges, interest, etc.
I have a 610 credit score right now, I've been stuck here for almost 6 months, it has barely increased, what 10 points? even though I'm making all my payments on time, I have gotten my student loan reduced. I have gotten credit limit increases. I opened a new credit card. This is a load of freaking bull****.
It is designed this way to keep people with bad credit, continue to have bad credit, this allows them to charge more interest and make more money. What would happen if every single person had good credit all of a sudden, do you think this would benefit the lenders and banks? lol
Not for me. I went from sub-500 credit to 750+ credit in less than two years. Actually, it was probably more like 1 1/2 years. I did it by contesting some bad marks on my credit that should not have been there; basically, those marks should have fallen off due to the statute of limitations having run out for each entry, but they were still showing. I contacted the BBB as well as each credit reporting agency and got those marks removed. Then, I applied for a Capital One secured credit card, which I used very sparingly and judiciously to establish a credit history. I've had that card for 2 1/2 years; always pay the bill on time, and I rarely keep a balance. My credit has been hovering in the 750-755 range for the past year. The only negative I have that keeps my credit rating from rising further is my short credit history (and also the small secured credit limit I have on that card: $1,000.
Not for me. I went from sub-500 credit to 750+ credit in less than two years. Actually, it was probably more like 1 1/2 years. I did it by contesting some bad marks on my credit that should not have been there; basically, those marks should have fallen off due to the statute of limitations having run out for each entry, but they were still showing. I contacted the BBB as well as each credit reporting agency and got those marks removed. Then, I applied for a Capital One secured credit card, which I used very sparingly and judiciously to establish a credit history. I've had that card for 2 1/2 years; always pay the bill on time, and I rarely keep a balance. My credit has been hovering in the 750-755 range for the past year. The only negative I have that keeps my credit rating from rising further is my short credit history (and also the small secured credit limit I have on that card: $1,000.
so, you only have one credit card?
I find this hard to believe
I also have a capital one card, but unsecured. I had for 1 year and half too. My score went from 450 to 610. I simply want it to improve faster, but I don't know how.
I know someone who is going to declare bankruptcy soon. What is the downside of having bad credit if you don't need to borrow money and are not planning on applying to move to a new apartment?
Many people believe that they can go from bad credit to good credit in just 3 years, when in reality, is more like 5 to 7 years. It takes way longer than people realize. I'm talking about going from a 450 score to 750 which is the ideal, where you qualify for good rates. You can quickly go from 450 to 550 in one year, depending on your situation, but it will take forever to go from 550 to 750.
The system is designed in such a way, that the higher your score gets, the slower and longer it takes to see improvements. One little late payment can basically destroy what it took years to build. In the end, it doesn't mean anything, because millions of people with good credit, can also default on their loans due to many reasons outside their control, such as having an accident, disability, family problems, getting laid off, etc. Nothing is safe and guaranteed in life. It is a flawed system, that just assumes that someone has bad credit, because of bad choices, when in many cases, is because of bad luck, due to the system itself which is designed to bring you down and keep you there.
The sheep buy into the system and shame the ones who have bad credit, which works in the banks favor, because now everyone will pursue the good credit dream, which means more for them in the form of fees, charges, interest, etc.
I have a 610 credit score right now, I've been stuck here for almost 6 months, it has barely increased, what 10 points? even though I'm making all my payments on time, I have gotten my student loan reduced. I have gotten credit limit increases. I opened a new credit card. This is a load of freaking bull****.
It is designed this way to keep people with bad credit, continue to have bad credit, this allows them to charge more interest and make more money. What would happen if every single person had good credit all of a sudden, do you think this would benefit the lenders and banks? lol
Don't worry about a credit score. Pay cash. Avoid debt all together so you pay zero interest. You will be much further ahead in the long run.
It depends on why you have bad credit. If you have late payments and defaults, then yeah, they linger on your credit report for 7 years.
Someone just starting out in life can have bad credit simply because they don't have enough credit history. A car loan and a couple of credit cards that are paid on time will quickly change that.
You can also have poor credit because of your utilization. If you have $10K in credit limit and owe $10K, that drags you down. If you pay that down to zero and/or bump your credit limit up to $20K or $30K, your score improves.
Don't worry about a credit score. Pay cash. Avoid debt all together so you pay zero interest. You will be much further ahead in the long run.
False.
Insurance companies do credit checks. Your credit rating impacts the insurance rates you pay. Employers do credit checks. Your credit rating could be the difference between getting the job or them picking someone else. I don't know many people who buy homes with cash. Home ownership is the tried & true way for the middle class to build some wealth. When you get to age 65, if you own your home outright and have kicked money faithfully into your 401(k)/IRA every year, you'll do OK. If you have been paying rent all those years, you have to continue paying rent and you don't have the option of selling your paid-for home and downsizing to create a retirement nest egg.
Paying cash is what poor people with bad credit do; and what people with no self-discipline do. My credit cards auto-pay in full every month. I get an interest free loan on my credit card float. That money is earning a mighty 1% in my Ally Bank account emergency fund. Better'n nothing. In normal times with higher interest rates, it can add up to quite a bit of money. Plus, I get 2% cash-back on my credit card which also adds up.
Many people believe that they can go from bad credit to good credit in just 3 years, when in reality, is more like 5 to 7 years. It takes way longer than people realize. I'm talking about going from a 450 score to 750 which is the ideal, where you qualify for good rates. You can quickly go from 450 to 550 in one year, depending on your situation, but it will take forever to go from 550 to 750.
The system is designed in such a way, that the higher your score gets, the slower and longer it takes to see improvements. One little late payment can basically destroy what it took years to build. In the end, it doesn't mean anything, because millions of people with good credit, can also default on their loans due to many reasons outside their control, such as having an accident, disability, family problems, getting laid off, etc. Nothing is safe and guaranteed in life. It is a flawed system, that just assumes that someone has bad credit, because of bad choices, when in many cases, is because of bad luck, due to the system itself which is designed to bring you down and keep you there.
The sheep buy into the system and shame the ones who have bad credit, which works in the banks favor, because now everyone will pursue the good credit dream, which means more for them in the form of fees, charges, interest, etc.
I have a 610 credit score right now, I've been stuck here for almost 6 months, it has barely increased, what 10 points? even though I'm making all my payments on time, I have gotten my student loan reduced. I have gotten credit limit increases. I opened a new credit card. This is a load of freaking bull****.
It is designed this way to keep people with bad credit, continue to have bad credit, this allows them to charge more interest and make more money. What would happen if every single person had good credit all of a sudden, do you think this would benefit the lenders and banks? lol
It's your reputation. It takes a lot longer to improve it than it did to screw it up.
BTW, 6-months ain't jack. It's like 5-minutes on the scale of your financial situation.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
