Is there such a thing as cleaning up credit?

Answer 1

Yup. And it's not an easy or painless process. Establishing your credit again takes work.

First thing: get credit counselling. A good company can put you on the right track with budgeting, and can help you pay off any collection agencies and third parties by aiding in interest rate negotiation and payment terms. Many collection agencies will look upon you a little more favourably if they see that you are taking honest steps to pay them back, and are sincere in your efforts.

Second thing: you have to pay people back. This is not always easy; chances are, you would've paid them in the first place, if you'd had the money! Getting lower payments over a longer period of time can help, though.

Third thing: start up fresh credit. One of the best ways to do this is with a "guaranteed" credit card. You give a bank, say, $1000 (this is just an example), and they will give you a credit card with a $1000 limit. This way, if you default on your credit card, they already have your $1000. With this kind of card, there is no risk to the bank to provide you with credit, so why wouldn't they? Talk to your lender at your bank to see if they can set you up with this kind of thing. Just remember -- you have to pay it off just like any other credit card! If you can, though, avoid high interest gimmicks that say that they'll give you a loan even if you have bad credit, and will "help" you by making regular reports to your bureau. More often than not, the interest and fees on those loans are insane, and might even put you deeper in the hole.

Fourth thing: show willpower and restraint. A lot of people get in to financial hot water because they overestimate their capability to pay back their debts. "Buy now, pay later" is an absolute no-no. Steer clear of big-screen TVs. Avoid spending money on stuff you want but don't need. This is pretty common-sense stuff, but it's not easy to say no to yourself.

If you apply these points to fix up your credit, it should start to turn around. Remember, though, that credit does not fix itself overnight, which can be incredibly frustrating! It can take over a year before you start to see any real change in your bureau. Take heart, and don't let it get you down. You'll thank yourself in the future for taking responsibility.

Good luck!

Answer 2

Yes you can clean up credit - and you can do it legally.

There are many legitimate "free" forum sites on the web that have the information you need to work on your credit.

NEVER use a site that requires payment for the information.

Answer 3

How to Clean Up Credit Report: Before approving your loan, your lender contacts the credit bureaus to get your credit report. Bad credit report will severely restrict your credit. In some cases, you may not even get the credit. So it is vital to get your credit report cleaned. To enable you to achieve that you have to alter your financial habits

Answer 4

There are many credit repair agencies that will help you clean up, as you put it, your credit.They may charge a fee to do so and will take a month or so, depending on your credit history.
It depends what you want to do and achieve doing it.

Answer 5

Yes, by making payments to companies you owe to get your debts paid in full. That is cleaning up your credit. When all the money is paid back, in full.

Answer 6

Yes, it's called paying the people you owe.


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Answer 7

yes

Answer 8

It doesn't seem like there is. I mean... no matter what you do... you always have debt. Its really frustrating.

Answer 9

Yea, if you pay your bills or don't have them!

Answer 10

Not legally....No. Be careful.