Rebuilding Your Credit

[Huck]

I am looking for some advice, so here I go.

I am wanting to rebuild my credit. My credit score is above 500 but below 600 and I am now in a position to rebuild it. I have zero credit card debit. Most of the bad things on my credit result from things when I was 18-21 years old. I am now 28 and married and need to get things straight so in a few years I can buy a home. I have been reading about tips to raise your credit score by getting credit cards and paying them on time. Is there any other way? Can I pay off the bad stuff on the credit and will that raise the score? Should I pay newer debts before older? Anyone got any advise for me or can point me in the right direction.

Wish I would have been smarter when I was younger.......

[Noe]

I would not get credit cards and try to build "good credit" by using them. The temptation is there all the time. There are other ways to build your credit. Visit the site below, helped me out a lot.

www.daveramsey.com

[LWimages]

PM me for some tips.

[Buddha]

The fact that your bad debts occurred so long ago is a plus. The fact that no new ones have occurred is also a plus. However, that won't get you a house or a good credit score.
You are going to need credit card accounts that are paid up regularly or at least maintained below a 50% balance in order to get your score up.
Your old debts may no longer count against you after all of this time.
You will need to have money for a down payment on a house. Even if the current restrictions on loans ease up in a few years, having downpayment funds will get you a lower rate from more lenders, a bigger choice of loan programs and require you to pay mortgage insurance for a shorter period.
If you can save the difference between your current rent and your expected house payment each month and be able to show it, so there will be no 'payment shock' with your new loan, that will impress loan underwriters alot and make getting a loan easier. You need to save for a downpayment anyway.
I would look around OKC and find a credit repair agency. Some of them will give you a free consultation or a minimum cost consultation. I would urge you strongly to talk to one of these professionals and get their advice along with your current credit report. The ones that loan officers and credit repair agencies get are different from the ones you get online, and they are the ones that get used when you want to buy a house. The difference in the cost and the professional advice is well worth a few dollars.
It doesn't sound like you would have any big issues except for lack of credit cards, but the stakes are big for you and your family. I would get professional advice on this.

[darktiger]

Pay earlier and double the minimum amt due....

[TxManx]

From personal experience, the offers to 'settle your old debt' that you will get 10-15 years after the problems occur will help you accomplish what you're trying to accomplish...

In some cases, you can actually benefit twice - the old debt is marked 'satisfied/paid' - and often, it's done by opening a new credit card with the old balance...so you start showing a good payment history.

Be extremely careful though, as if you talk to the collection companies regarding your old debts, or fail to live up to the new terms, they can re-submit them to the credit bureaus as new entries...

[CaptainTom]

contact your local office of the consumer credit counseling center.
They are primarily in the business of getting debts reduced, but they have a lot of great information available regarding rebuilding your credit score.

[Huck]

Thanks for the great tips guys! Its going to be a long road, but I want to start sooner then later.