William Yesretra
William Yesretra had a wonderful life, until his credit score fell below anything he had ever dreamed of. Throughout college, William knew that he wanted to be a wealthy and successful man, so he studied in abundance and took the LSAT test. After law school, his student loans were simply too much to bear, since he couldn’t find an adequate paying job out of law school. So, he put his loans on hold and agreed to pay a higher interest rate if the pay back was delayed one year. He also took out a mortgage on a house and tried to start his life. The year passed and there were things that William needed!
He took out a few lines of credit, thinking he would be able to pay it all back within the year, and continued to grow his collection in debt. Unfortunately, he could not pay back the debt and the creditors continued to call. William Yesretra took a tremendous hit to his credit score by not even paying the minimum balance on any of his accounts and continuing to open lines of credit when he had maxed out his other cards. In addition, Williams’ house was foreclosed on because he couldn’t pay the monthly payments.
What does this score mean?
If you have a credit score around 450, you probably know that it is difficult to obtain any lines of credit with a decent interest rate, loans or a mortgage. But all hope is not lost! This score can be increased tremendously over a specific span of time. Someone with a score in the range of 400 wouldn’t be able to experience some of the best times that one has in life. For example, with a score of 450, you would not be able to get a mortgage, get a Macy’s Credit Card and probably wouldn’t be able to lease a vehicle.
How do you get a credit score of 450?
If you have a credit score of 450, you may have made some of these classic mistakes with your finances:
- Had bills that you have not paid, at all and have been sent to collections agencies.
- Had accounts in collections agencies that are not paid.
- Have been consistently late on your payments to billers.
- Have had a recent foreclosure on a house.
- Have more than one item in collections.
- Have claimed bankruptcy lately.
- Or, if you have an open loan like a student loan from college.
How can you improve this credit score?
If you want to improve your credit score of 450, here are some simple suggestions to help guide you to a fantastic credit score:
1) If you have problems with your credit score, you should talk to a credit counselor! Because every situation is different, your solution may vary from some else’s.
2) If you have more than one account in collections and do not have the money to pay each account off, pay off the account with the largest balance, not the account with the smallest value.
3) Get some lines of credit open, pay off each statement, each month and in full!
4) If you do have an account in collections, pay off the balance so your report will show “PAID”, not “UNPAID”.
5) Give it some time! We understand how difficult it is to live with this credit score. However, only time will fix it!
