Restoring Credit Rating

Help! My brother's ex wife has left him with several credit card bills he did not know about. These bills have not been paid for over 1 year now. To his surprise he just went to apply for a loan and was turned down due to bad credit. He has about $30,000. in bills he needs to pay off over time. He is unable to pay this off right now. Does anyone know how long it will take to restore his credit rating? I have told him to start paying them off as much as he can each month.

by Barkley 912 Posts
Posted on 12/9/2007 7:38 AM

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Tags: credit rating

Answers for "Restoring Credit Rating" (5) (You must be logged in to answer)

Sorry to hear about that. It takes a long time but paying on time and more than the minimum payment each month will help. A lot of planning... he shouldn't pay back too much and risk to meet minimum payments in any of the cards. Usually after checking the APR in each card he should try to pay off the ones with higher APRs first. Usually when the debt / credit ratio gets bellow 30% meaning that if he has $10,000 worth of credit... he owes $3,000 the improvement in his FICO scores would be much higher... so to summarize:

1.- Find out as ncshoppe says how the debt and application for the credit was made.

2.- Find out APRs and negociate them if possible

3.- Stick to a repayment plan... and make more than minimum payments on the higher APR cards and credit first...

4.- Patience... cause it will take time.

Good luck

by Tato 417 Posts
Posted on 2/29/2008 3:23 PM

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Were the cards in his name only or did she have cards with her name on them? Did she sign her own name when she used the cards? If her name is on them she is responsible for 1/2 the debt. If she applied for the cards in his name & signed the application, that is fraud. Hope this helps.

by ncshoppe 24 Posts
Posted on 1/15/2008 2:58 PM

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He should call up the credit card companies and see if they can reduce his payments and APR. They can be pretty understanding. Let them know what type of financial bind he's in. It doesn't hurt to ask. I've been there and fixing it now. Good Luck!

by LC 5 Posts
Posted on 12/20/2007 3:16 AM

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Thanks paratha for the advice. We will slowly help him chip away at this. It just stinks over the Holidays.Thanks again.

by Barkley 912 Posts
Posted on 12/11/2007 8:29 AM

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It can take about 2 years sorry to say. This I do know from the same bad experience. Two years if he is immaculate with the payments and up to five if it takes a long time to pay the balances and if anything at all become late.

by paratha 4 Posts
Posted on 12/10/2007 9:26 PM

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