When my divorce was final, I knew there were a lot of things that had been put into my name - and I wanted a chance to buy my own place and stand on my own two feet. So over the last few months, even though I had about 8 weeks without working, I used part of my savings and my earnings to pay off bills - including some old ones - to help improve my credit score.
THIS BACKFIRED!!!
I just got off the phone with the mortgage company - seems some of those bills were more that two years old and hadn't "reported" for more than two years - so they were no longer hurting my credit rating. By paying them, the companies have now reported them paid - and are now lowering my credit score. Great. So in trying to do the right thing by paying off old debts, I have in fact shot myself in the foot and lowered my credit score significantly.
Don't know what this will mean, as he is saying my interest rate will be higher than I will want to pay and that it will take some time to fix the errors/duplicates and establish a new line of credit - probably six months or more. Well, this just sucks and I think the system is wrong - I only spend money I have - using a debit card and NO credit cards I stay within my budget and don't go indulging in luxuries I cannot afford. Unfortunately, this doesn't help my credit - only makes the whole process harder.
1-19-04: A change in perspective this morning. I have been struggling with my own demons - knowing in my heart that Justin was committed, but still entertaining that doubt. This scenario presented him with an opportunity to step up - and he did. Cannot really question someone' s committment when they help buy your house. In the last 24 hours I have had this veritable epiphany that yet again God set up a circumstance to teach me, and ultimately to bring me comfort and vanquish my demons.
2 comments:
Yeah, unfortunately, you have to establish credit and that tends to involve using credit cards and things. What about using a credit card for something that you have to buy (as long as you can limit yourself to just that)? For example: you have to buy gas whether you use a credit card or not.
What I do is use the credit card and then go right home and move money in my spreadsheet from "Car Gas" to "Credit Card." So, in a sense it's paid right away although I don't actually send the money until the bill comes in.
I dunno. Does this make any sense?
Yea - I am going to get a secured credit card, against all my better judgement. Apparently the cell phone and the other little things I pay on monthly are alternative credit and don't really affect your score.
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