i don't know how to fix his credit!?!?

Question

my fiance has a credit score of about 550.we would like 2 buy a house soon,but i'm sure its pretty obvious that wont happen if we dont fix the credit problem.i have a few ??.i know this is going 2 sound pretty ridiculas & selfish,but whats the point of paying off the bad credit,if its not going 2 bring the credit score up?we have paid a few things off already,but it is still showing up as bad credit on the report. and if i'm right,it won't go away for 7 years anyway?another problem is,one of the MAJOR things on his credit,which we ARE trying to get taken care of,they are wanting us to pay them over $200 a month!we keep trying to tell them we can't make that kind of payment,we need to figure something else out,and all they do is tell us that what we are offering isnt good enough,and they r threating 2 take him 2 court or garnish his wages.i thought they were supposed to work with us?i dont know what to do or where to start?this is dragging me/us down,and i'm starting to feel hopeless?!!

Answer 1

First of all, relax. All collection agencies can do is threaten you and try and break you down and make you pay. Don't fall for it. You're right, paying old debts WILL NOT help your credit score. Once a debt is charged off, paid or not, it's a black mark so don't believe those who say that paying it will make it better.

You need to replace the old with the new. The way you do that is to get serious and get a secured credit card. Pay it on time and keep the balances low. Apply to places like Crownjewelers.com, who will give most persons a credit line if they purchase something. In BOTH cases above, they report to the credit bureaus and that is what you want.

I wouldn't pay anything over 2 years old. You can get a mortgage with collections on your report by going to a broker. If they sue you, just answer the summons or find a lawyer. But they probably won't. They say that to people every day but how many people do you know who get taken to court? Not many. For one, it's expensive and two, they usually lose. So don't worry about it. Work on the positives and the negatives will fade over time.

Answer 2

=======================================
The TRUTH About Credit Repair...


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Have you ever wondered what companies
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"Erase bad credit and smash your
debts with just 2 Magic Letters!".

Are these types of claims ALWAYS
too good to be true? The answer is
"Yes and... no".

While many people would love for
you to believe the only thing that
can fix bad credit is time; in
reality... nothing could be further
from the truth. The fact is, time
is only one factor which can fix
a credit report, but it's a far cry
from being the only factor. How
can I back this up? Easy.

Under a consumer protection law
known as the Fair Credit Reporting
Act (a.k.a. the FCRA) the only
negative information which can
remain on your credit report is
not what is accurate... but what
can be proved as accurate under
the FCRA. What's this mean
to you?

It means any negative item on
your credit report can only remain
there if it is accurate and CAN
BE PROVED AS SUCH under the
guidelines of the FCRA. This
undisputable fact presents
consumers with both good
news and bad news.

The good news is that through
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most likely be improved dramatically
in a very short period of time with
only a modest amount of effort on
your part.

The bad news is that while the
actual "work" will take very little
of your time, it is vital that you
have good information on "how"
to go about it. This is the bad
news; 9 out of 10 courses on
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more than lead you into snake
pits because they will provide
you with what the industry refers
to as "Boiler Plate" dispute letters.
These are nothing more than form
letters and... quite frankly (more
bad news) the Credit Bureaus and
Creditors will laugh at you if you
try to use them.

While I agree with the Federal Trade
Commission (FTC) that "Anything a
Credit Repair Clinic can do for you
legally, you can do for yourself at
little or not cost"... the key element
you need for success is the latest
inside techniques and procedures
to get the results you want. This
involves strategies such as "Proof
of Contract", "Constructive Notice",
"Challenge of Procedure" or
"Restrictive Endorsement" and many
others.

All these terms may "sound" impressive
but they are really quite simple. In
the
end, it is nothing more than a method
of communication which exercises your
consumer protection rights, gets the
results you want and raises your credit
score. Even more impressive, once you
learn how simple it can be by doing it
for
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fortune
to be made doing it for others! Either
way, it all starts by requesting a free
copy of your credit report here:

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In the next segment we'll talk about:

"Is Your Credit Score Costing
You A Fortune?"

=======================================
Terry Price is the founder of Consumer
Education Group which publishes the
Credit Secrets Bible (in print since
1994).

For more information on the CREDIT
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=======================================

Answer 3

The problem with credit reports is that they don't improve instantly. It will be over a period of several years. Even if you were to pay off all of your debts tomorrow, you likely still wouldn't qualify for home loans or whatever.

As for credit card companies and such, it's their job to try to get their money. They will threaten you and call your house, etc. Don't worry about it. Just keep making regular payments. They can't MAKE you pay them more.

Depending on how much debt you owe, you may look into filing bankruptcy. My wife and I had several hundred thousands of dollars in medical bills and probably 20k worth of credit card bills that were all wiped clean when we filed Chapter 7 about a year ago. We won't be able to buy a house for a couple more years, but it would have taken us way longer to pay these bills off anyway. All the pressure is gone now. It's such a relief.

EDIT: One of the quickest ways to improve credit scores is to pull a report from the 3 main bureaus: Trans Union, Experian, and Equifax and fill out a dispute form for EVERY negative mark on the report, even if you really were at fault. Once you file a dispute, the credit company has 30 days to validate their reason as to why that mark is on your report. If they fail to respond in the 30 days, it gets removed from your credit. It doesn't cost you anything, and it's the same method all those Credit Repair places use (except they want to charge you an arm and a leg.)

Answer 4

I am giving you this information from previous experience. Get in touch with a credit counseling company and real soon. They can stop the harassment from any company. Go soon...check out the Better Business Bureau on your area for a real good credit counseling company BEFORE doing business with them. Contact all 3 credit bureaus and get a free credit report and any thing that is wrong, send a letter to them and get it corrected. The credit counseling company can help you with this also. Then try out FHA Plus loans. It is a loan where the down payment is financed in one mortgage and the house in another mortgage. Not too bad interest rates either. Best things my Husband and I ever did. Then after you get through straightening out the problem with the credit card company send a letter to the Better Business Bureau and include everything you tried to do to get the bill paid off and how selfish and hateful they were about the situation and it will be out there for public records against that company. If you are getting threatened contact your state attorney generals office in your state and make a complaint through them. Also complain with the FTC. All these are on the internet with numbers and addresses. Hope this helps. Good luck and God bless you both.

Answer 5

You should contact a non-profit credit counsler. They negociate with the Credit Card Companies to reduce the payments. In the long run paying off the debt is going to be better for your credit than not paying it or declaring bankruptsy.

This also will start to improve your score as you will now be current. It will take time but if you get back on track it will start to improve. Also, not knowing your entire financial situation but it sounds as if it is not the best time to try and get a house. If you can not even make a $200 payment, a house payment might become an issue also. I would get your financial situation back in order and then work on that.

Answer 6

The handiest truly credit score fix is to pay your charges and wait, wait, wait. You are not able to difference what's already in your credit score document except, of path, it's misguided and it's consistently a well suggestion to get a replica of your credit score dossier & be certain the whole thing is smart. BUT be VERY cautious approximately 'credit score fix.' You could also be supplied whatever like a consolidation software in which the collectors now not cost you curiosity and also you pay small quantities over a particularly lengthy interval of time, normally a few years a minimum of. While it is well to not have got to pay the curiosity, for the duration of that time period you'll now not be ready to acquire ANY credit score whatever and upon getting paid the final penny all that knowledge approximately every person you took goodbye to repay will keep in your credit score dossier for AT LEAST a further 7 years. If there is not any different strategy to pass and that is all you'll be able to do in need of chapter, pass forward. Just be definite to verify out your entire choices first. Bankruptcy can actually be a extra feasible choice in lots of instances given that it is performed and overwith quicker so that you turn out to be with a tousled credit score document for a shorter interval of time. When you begin REBUILDING credit score, the principal element is to acquire a few one-of-a-kind forms of credit score. For illustration, do not simply pass with a bank card and depart it at that. Get a bank card, an overdraft, and a automobile mortgage (despite the fact that you'll be able to pay coins for the automobile). You have got to end up accountability with one-of-a-kind KINDS of credit score. Then, pay on time at all times and with bank cards don't pass beyond 50% of your prohibit. Using those measures, you'll be able to rebuilt credit score unusually rapid. When you verify your credit score dossier for accuracy, be definite to get copies from the entire credit score bureaus..Equifax, Experian, And TransUnion. It is sudden how the knowledge, or even the specific ratings, can fluctuate from one to a further.

Answer 7

You need to pay the debt because he borrowed the money in good faith. Bad credit does not miraculously go away immediately, but it won't necessarily be there for seven years. Don't get me wrong, it could, but chances are that once the company gets their money, they won't fight you if you contest the charge. I would give it a few months, though.
You need to come to an agreement with the CC company on the payment. If you don't, they will add late fees that will hurt. Either find a way to make the payment or ask a credit councelor to intervene.
Don't to forget to snatch a knot in your fiance for getting himself in this shape. Once you're married, his score will be your score.
Good Luck

Answer 8

First off, a credit consalidation company can help. They can get all your bills on one invoice for one payment a month for everyone.

Also, anything you *have* paid off, get a letter from that collection agency or company that states it is paid and present this letter to whom ever you are trying to purchase something (like a house) from.

Also, it does stay on your credit report for seven years from the date that it entered collections.

You can try to get a small loan out (like $1,000) from a bank, and if you are a person that can have money and not spend it, hang on to it and pay it back (the exact $1,000 you borrowed) every month on time, and this will increase your credit rating too.

Answer 9

You can still purchase that house you want but, put it in your name not his.. have the loan in your name ... not his.. But realistically, If you can not afford to pay just $200.00 How in the world are you gonna to afford a house payment..
Go to the bank you do business with and sit down and talk with some one in the mtge dept.. or loan dept. these folks will give to you the best advice..
Good Luck!