How do I fix my credit?

Question

My credit score is 574. I have a couple of collection accounts totals to $8,000 on my credit report, which are reported by collection agenies / law firms. Those items were originally opened with credit card companies, but were closed due to delinquency, and then transferred / sold to collection. I need to know what i can do to knock these collection items, that are seriously hurting my FICO, off my credit report. Please help.

Answer 1

Contact both the CRA (Credit Reporting Agency) and the information provider. First, tell the CRA in writing what information you believe is inaccurate. Include copies of documents that support your position. Request deletion or correction of incorrect information. You can find sample letters on internet, one can be found here:
http://www.howtoestablishgoodcredit.com/Credit_Articles/index.php?page=1&category=5
CRAs will reinvestigate the items in question--usually within 30 days. They also must forward all relevant data you provide about the dispute to the information provider. After the information provider receives notice of a dispute from the CRA, it must investigate, review all relevant information provided by the CRA, and report the results to the CRA.

Answer 2

Credit repair does not require the assistance of a service. You can take a number of steps to help repair your own credit.

Although there are numerous credit repair companies offering their services for a fee, savvy individuals can do their own credit repair with a few simple steps. The advertisements placed by credit repair services touting their experience, qualified personnel and other qualifications can make the process seem daunting but it is really quite simple.

The basic steps for do-it-yourself credit repair include:

Request a credit report from all of the three credit reporting agencies
Carefully review all of the information on the credit reports
Dispute any mistakes on your credit report and document every step of the dispute process
Devise a debt reduction strategy
Establish good credit strategies now and carry them into the future
The first step of do-it-yourself credit repair is to request a copy of your credit report from Equifax, Experian and Trans Union. These are the three major credit reporting agencies and individuals are entitled to one free credit report annually from each of these agencies. Requesting a report from each of the three agencies is important especially if you believe there may be a mistake on one of the reports. The information on all three reports will be similar but mistakes may only appear on one of the records.

Once the credit reports are acquired it is time to review all of the information carefully. Each item on the report should be examined and discrepancies should be noted. In reviewing this information, highlight anything that seems suspect and review your documentation to verify the validity of the item.

After compiling a list of mistakes, it is time to officially dispute any inaccuracies on the credit report. The dispute processes will most likely involve filling out a dispute form or writing a letter detailing the alleged mistake. In both cases documentation supporting the validity of the dispute will be required. For specific information on how to officially file a dispute, contact the credit reporting agency directly. Once the dispute process begins, document every aspect of the process. This is important because dispute resolution is a time sensitive process with specific guidelines for how quickly a dispute must be resolved. The agency may be required to remove a disputed item from a credit report if they do not respond in a timely fashion.

When a negative credit report is a result of a poor credit history and not mistakes, only time will properly repair the credit. The long term credit repair strategy for financial errors in judgment includes devising a debt reduction strategy which will demonstrate diligence and establishing sound credit strategies which will be viewed favorably in the future. Credit reporting agencies do not hold grudges. Credit lapses are removed from credit reports after set periods of time and a history of good credit is rewarded with a solid credit score.

Answer 3

Step-by-Step Credit Repair Guide: Bad credit can frustrate your efforts at getting a credit. Hence ensure you keep your credit report clean. If there are any errors in the report, undertake credit repair to clear out any errors. This can be tiring and frustrating, but highly rewarding. Though law recognizes and protects your rights, it is your duty to remove any anomalies in

Answer 4

One way to knock them off your credit report is to pay them off. They'll still be reported as delinquent account, but they should then be noted as "paid charge off" or some such, and a paid account always looks better than an unpaid one. If you need help paying them off, I'd highly encourage you to seek out the service of a credit counseling agency. I have good things to say about my experience with American Consumer Credit Counseling, so they come highly reccommended from me. http://www.consumercredit.com/

When you pay them off and/or reduce your balances, your FICO will slowly improve with your positive payment history.

Answer 5

There are a few good credit restoration companies out there. Try using one of them. Before you do, read this article: http://EzineArticles.com/?id=446559 It has good information on how to tell the difference between the good credit restoration companies out there and the rest.

If you have any questions regarding credit issues, you may contact me at [e-mail]

Answer 6

I have placed this in the source box. There is a wealth of information there and a great free debt management software program. I bookmarked the site as I return to it often for the advice it offers. I hope this helps you.

Answer 7

If you want to pay it off, you can get a debt consolidation loan. The rates are lower, and you have only one payment to manage. You can comparison shop at the below website

Answer 8

Go to www.suzeorman.com and get some tips off of their, she has good info.