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Matt071990

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What should i do to get out of debt and to get a better credit score?
My credit score is a 564 and i need help and advice on how to handle the situation.

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Current issue: If you have a 564, most likely you have some outstanding debt. Make a list of who you owe, how much you owe, and what the interest rate is for each business you owe money. Pay off the highest interest first and make minimum payments on the rest. If you have items in collections, take a look at Clark Howard's website (clarkhoward.com) and search for "debt collectors" you'll come to a page that tells you what to expect with your rights with debt collectors.

Future Steps: After you handle outstanding balances, then go to a local credit union in person and ask if they have a "fresh start" credit card that you can use to help rebuild your credit. After about a year, try to get that card upgraded to a real Visa/Mastercard/etc that fully reports your credit to the credit bureaus. Then, a year from then apply to a credit card company that has decent cash rewards. When you have these credit cards, attempt to charge less than 30% of your limit. Make sure you fully pay off each credit card each month. Each year you can reevaluate if your current cards (you should have at least 2 major credit cards) are working for you or if you should increase your credit limit. Ask the credit company to increase your limit if you are having to put anything on a debit card to keep under the 30% limit of your card.

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The best advice is to designate an hour or two a day for the next month to read about credit. It will be time well spent. There is a wealth of information across the internet. Cut your spending as much as you can and stick to a budget, instead of going out and spending money, stay home and read about credit. Try to get extra hours at work or get a part time job to increase your income while cutting spending.

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