How do I go about to repair my extremely bad credit?

Question

I need to fix it, how? Any where I can go. I don't have any repos or but I have baaad credit?? Any suggestions.?

Answer 1

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 2

1) Ask for credit reports from the bureaus.

2) Look out for any errors in it.

3) Prepare a Credit Dispute Log recording the details of problems and errors.

4) Contact telephonically the original debtors with whom you are having a dispute. Record the details of the call, especially the name of the person with whom you spoke and a brief overview of the agreements.

5) Send the certified letter to the original debtor.

6) Send letters to collectors, disputing the bill. Also, send the proof of payment to the original lender.

7) Fill out the dispute form available at the credit bureau.

8) Write a letter for each disagreed item separately and send it to the credit bureau by certified mail. Attach the proof to support your claim.

9) The bureau will provide you a reference number. Call up the bureau with this reference number and find out the progress of the matter.

10) Maintain a Credit File containing detailed records of your case.

Answer 3

Your credit score is based on these 3 factors, in order of importance:
1. Paying bills on time each month.
2. Credit ratio - total amount owed compared to total amount of credit available. Anything over 30% will knock down your score.
3. Length of credit history.

First, pay off any unpaid debts that are late or in collections.

Then it really is as simple as paying your bills on time, and pay down your debt.

There is money to be made from having a good credit score. I routinely have about $100k in available credit from credit cards, and have about $40k in 0% loans from them that I put into a 5.35% online savings account. I'm making about $2k in interest off of them every year.

Answer 4

if you cancel credit cards, it will negatively effect your credit...credit scores are increased by making loans and paying them back and doing it on time..also never ever be late with a payment of any sort..you need to check your credit and see if there are issues on it that have been resolved and request that they be taken off..such things as a credit card that you were in default paying and have since settled or paid off..the credit card company will not automatically take them off you must request it..go to www.equifax.com and look at your credit report...you are entitled to check it for free every year....Hope this helps!! God Bless!!!

Answer 5

it might not be as bad as you think. go to www.annualcreditreport.com and get a copy of your credit report from all three bureaus... then read it thru and follow the tips they provide for you.


Good luck - it's a pain but worth it in the end! I had the same problem years ago (due to a divorce) and I just recently got my first American Express card. :D

Answer 6

Here's a link below which will help you understand your report, give you tips on what is harming your score the most, and sample letters to send to creditors.