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If I pay my debts, Can i apply for credit card and loan again?

I have debts for credit card and previous landlord that ruined my credit and I cant get any credit card or car loan ? If I paid this off, how long will it erase this negative credit on my credit score so i can apply for car loan or credit card again.

Public Comments

1. 7 yrs. You are a credit risk and no lender will do business with you. Your landlord did not ruin your credit you did by failing to pay what you owe
2. Most things will remain on your credit report for about seven years after the last payment was received. Now the number of years it stays on your credit may be slightly different depending on your states statue of limitations. What you can do in the mean time to build credit while you repair the bad credit you have is go and find someone who will lend you a secured credit card with some reasonable terms. Try a Credit Union. Or visit http://www.sjrates.com and click the Credit Card Tab and see if those links can help you find a better credit card. Hope it works out for you, seven years is a long time, its best not to default on any money you borrow from the financial industry.
3. Yes, in a couple years.
4. In my experience there are two types of Bad Credit Credit Cards. One is a secured card, and the other has a much higher rate of interest. Both can be used to rebuild your credit worthiness after getting back on your feet. Secured credit cards are great for rebuilding your credit. You send the credit card company a pre deposit amount set by the companyThis amount will be equal to your credit limit. Pay over your minimum every month and send your payment in before the due date and you will build your credit up gradually. Never miss a payment, be late on a payment, or go over your credit limit even by a small amount. http://www.worldbestloans.com/ You don't want the company to ever have to take from your pre deposit amount because they want you to handle your account just like you would an unsecured card. A great thing about this pre deposit amount that you send in is it can act as a savings account even earning a little bit of interest for you. After establishing yourself with the credit card company, they may decide to give you a unsecured credit card or increase the limit on the one you have with them without having to make another deposit. Secured credit cards are a good choice for anyone wishing to rebuild their credit history.
5. However long it takes for your credit to recover, it the sooner you pay off your debts, the sooner the process gets started. With the landlord, call and negotiate to pay off the debt, including any interest accrued on what you owed. Then pay with a *check*, and be sure to get a receipt. Later, if it doesn't show as paid off on your credit report, then you'll have evidence to show that it was paid off. On the credit card debt, similar thing - watch for the canceled check as proof that they received your payment, and check your credit report to make sure it was updated. For the car, I recommend saving up in advance, then getting an inexpensive used car. This is no time to be taking on more debts. It sounds like you still have one credit card. That's really all you need Don't close it, as it will be hard to open another. And don't charge anything more on the card unless you absolutely know you have the cash to pay it off when the statement comes.
6. Negative credit usually stays on your bureau reports for 7 years, unless you were sued and have a judgment entered against you, which I believe stays on your credit for 10 years. There are 2 important things to do in order to make yourself credit-worthy again. The first is make sure that you do not have any overdue debt, and that everything that may have been in collections is paid off. That sort of clears the board for you. The second is to rebuild. You should really worry about your debt to income ratio. That means you must live within your means. Any credit card balances should be well below their limit. Getting a secured credit card to establish a payment pattern is good, but if you constantly carry the maximum balance, that is a huge red flag that you are not yet ready to handle a larger debt. A really awesome thing to do is to charge something nominal once a month or so, then immediately pay it off. You would be amazed at how quickly such good behavior will raise your credit score and your status with lenders. In 2 years, maybe less, you could probably get a secured loan (like a car loan). In three or so, you will probably be able to qualify for a decent unsecured credit card. Two other things to think about: 1) Avoid job-jumping. A consistent employment history looks very good for you. 2) Save money. Put away as much as you can in a separate savings account. It will accrue interest and will convey your intention to be more responsible in the future.