Your Credit Score is at 400, Now What?
by Veronica on Jan.26, 2009, under Credit Repair
It can be somewhat uncommon, but there are some people out there who have fallen into the depths of the FICO credit scoring system and have gone down, or near, 400 FICO score. What to do now, is the question that is on everybody’s mind and can one come back from a financial fiasco.
If this is you, then you have to get back on track to financial stability. Being at a 400 FICO score means your credit is as bad as it can possibly be and that you have either had bankruptcies, defaulted payments, repossessions and other huge detriments to your credit in the past. No matter what your case may be, there is no situation that cannot be remedied.
So, to rebuild your credit from the bottom of the pit of despair, what do you do? First of all, if you actually still have credit cards… STOP USING THEM, out of sight, out of mind. You don’t need to get rid of them, you just need to pay them down because you can get back into right standing with your creditors and besides no matter what, credit is necessary for purchasing power. Second, cut out all the bills you do not need and or unnecessary spending. This will save you money to start making payments on the loans and credit cards you owe, start off by paying down your high interest cards and highest amounts, working your way down.
Next, sell things you do not need or anything you owe money on. This will prevent the bank or other creditors from seizing the goods and further damaging your credit. Plus, you can use the money to pay off more of your loans and to keep your bills current.
Again, I understand the feeling of frustration and helplessness. It all starts will recognizing there is a problem and knowing that there is a solution. With patience, discipline and a good action plan, you can be back on your feet quicker than you can imagine. Don’t lose sight of your goals, credit is key to getting that dream home, that new car, or starting a new business that you have always dreamed of.
Rodney & Veronica Turner are the founders of “National Credit Partners” where you can change your life and remove all negative items on your credit report or get the latest tools/business credit solutions/teleseminar schedule & events for Real Estate Professionals and the average consumer. We guarantee our credit repair services or we will pay you $10,000.
