How quickly will my credit score bounce back?

Short sighted of me, I know. Today I got my credit report and score. I have two items negatively impacting my credit, but they are both the same thing. It was a purchase made at Circuit City that my ex-husband made on a credit card in my name. The Circuit City delinquency shows up, as does the collection agency that they placed it with.

The statements were going to my previous address where I lived with my ex, so I never had a clue about it until today. The original charge was $ 494, and now my credit report shows that the outstanding balance is $ 619. My ex husband has recently passed away, and now I own the home that he lived in. We had no liens on the property, and his bills. with the exception of that one, were all to date. From speaking to my attorney, it appears that as my name is on the deed, the estate will not have to be probated, as he had zero outstanding debt. My plan is to get a home equity line of credit on that home, for a very low interest rate. This will allow me to pay down the mortgage on my current home, and then be able to refinance it using the equity gained. I will also then be able to do the repairs needed to my ex’s home, to either sell it, or make it suitable for tenants. I purchased my home 4 years ago for $ 130,000. I’ve made many improvements (new electrical service, new windows, remodeled upstairs), and my real estate agent friend says the house will easily appraise for $ 160,000 at this point. Given this figure, I’d have about $ 45,000 in equity. My ex’s house had a town assessment of $ 265,000 (with no liens). I have unfortunately not had a credit card for years. The good standing accounts in my rating are 2 that are paid/closed/never late, and one that is a checking account with an overdraft protection that is open/never late. My credit score is 651. Will paying the account that is negatively impacting my score help immediately? Should I answer one of the hundreds of credit card offers that come my way, and pay it off religiously? I guess I’m wondering what would be the fastest way to get my credit score high enough to qualify for a home equity loan on the second home. Sorry for being long-winded, but I think I got all the essentials in.

Register New Account
Reset Password