Cleaning up my credit report?

Question

I have a lot of old debt on my report. Plus a few things that were added about a year ago. A few things are going to fall off this summer. I went through 2 layoffs and a car repossession ( the car was a lemon that wouldnt even drive anymore). I have 2 civil judgements ( One is the car repo) reported as well. Anyone have any word of advice? Should I start paying off the newer debts or does it even matter at this point? Or should I send letters to the creditors asking them to remove negative remarks in exchange for a full payment? My score is very very low. Like under 400 low. I would like to be able to buy a house in 2 years and a new car sooner than that. Any advice would help

Answer 1

Well, it sounds like you're trying to get things in order. To be honest, you've actually provided answers in your own question. But, I'll add some extra strategies that you can do, but first you may want to know how your score's broken down:

35% Payment History- This makes up the most of your score. This determines your payment habits

30% Total debt owed- This is the 2nd largest component of your score. This determines how much you've borrowed altogether

15% Length of credit history- This determines how long that you've been borrowing

10% Types of credit- This determines what purpose you've borrowed for. There are 2 main types of credit, revolving and installment. Credit cards are installment and mortgages, car, signature, student loans are installment loans.

10% Inquiries and new credit- This determines whether you've applied for new credit and new accounts that's been opened it the past 6 months.

Now that you know that, the best way to bring up your score is to handle what's hurting it the most: the late payments. My suggestion would be to pay off the most recent and smallest balance delinquencies first. Go ahead and play the waiting game that with the ones that will fall off this summer. The older ones, like you said you could negotiate for a "payment for deletion" off your report. If you're able to get them to agree to this, get them to send you something in writing on their company letterhead before sending them a dime. Also, don't use your checking account information. Send cashiers' checks or money orders. Make sure that you send everything certified mail. That way, you have a paper trail that can support you in the event they want to try to sheist you. As for the judgements, that may take a little more work. Those are going to be on your credit for a while, but the main thing right now would be to clear those delinquencies.

Another thing you can do if you're paying on time and you want to show it is check this website out. It's a New credit bureau that reports not only regular monthly payments like credit cards, car loans, that show on your report, but also rent utilities, cell phone, day care, and other monthly bills that DON'T show on your credit reports.

http://prbc.com/default.php?

This will help you a LOT. If you're needing to build your credit, this is the perfect route to get you on the way to doing that. Check out this website thoroughly.

Answer 2

Whew! Sounds like you've been through a lot. If you have the money to pay off the debts, do it. Make your civil judgments your first priority. No mortgage lender will lend you money with those open on your report.
Negotiate for less than you owe...see if the collectors will work with you. Every time you pay something off, make sure you get something in writing proving that the debt is settled. Send a copy of that to credit bureaus as you go along.
Just know that even if you pay the old debt, it still has to remain on your report for 7 years. There is no "remove in exchange for payment".
Also be advised that just because something has run its course and is no longer on your report after 7 years, the creditor still has the legal right to try and collect their money. Those things don't just disappear. Even though they are old, they still need to be addressed too.
Good luck!

Answer 3

Go to trans union and pull your credit report for dispute. You make sure that everything is on there is accurate first. There is a space on there that allows you to make remarks like job layoffs, active duty etc. Then you need to start making payments to the people you owe. You can make settlements meaning settling for a specified amount that is lower than what you actually owe. Always save your receipts to show proof that you did pay.
Never avoid the bill collectors calls talk to them even if you have to pay the min. amount.
When you do a dispute by law the have about 30 days to respond if the companies don't respond by law they have to take it off your credit report.
Don't pull your credit score too much because that can have negative effect on your score.. You don't have to pay your medical bills right away let that be your last thing because Mortgage companies see medical bills and student loans as an allowable debt.
Pay off the smaller bills first.... **No more late payments** From now on you need to budget your money and pay on time, if you cannot pay on time you need to call ahead and make payment arrangements.
If you have credit cards do not close the accounts closing the accounts will do more damage to your credit score.
Good luck!

Answer 4

Go to 'http://www.creditattorney.com' or call [phone], which is the law office of Dana Facemyer of Provo UT.
For $40, 60 or 80 per month and $100 setup, they will do all the paperwork and organization to dispute your negative items. They are responsive by phone, email and snail mail (you can actually call with a question and talk to a paralegal, usually within 30 seconds.)

They have increased my FICO from 450 to 575 in less than 6 months.
This is an actual law firm in Utah that specializes in this type of work. They also give great advice on what YOU can do to improve your score.

I've tried others; THIS PLACE WORKS!!

Answer 5

If you can afford to pay them off - I would definetly try negoiating with the creditors to have the info removed. I've heard of people doing this, but I've never actually heard if it worked or not, but the most they can say is no.

In the mean time, keep paying your bills on time. Get the judgements paid off - even if they don't agree to remove them. Judgements can be refiled and it'll be like they'll never come off. / Keep credit balances below 30% or use cash / Don't apply for too much credit - inquires can hurt your score and chances for getting credit when you need it. / More than likely, most of this is just going to take time. Try to be patient.

Answer 6

First validate the debts you want to pay off with the credit reporting agencies (CRA's).

If the credit bureau comes back as validating the debt send your next letter to the CRA's asking for the company name and phone number that they validated the debt from. Many times they will not be able to provide that information because it is only a computerized search of public records instead of calling the courthouse where the actual judgments exists. thus they will have to delete from your credit report.

http://www.DisputeDemon.com
http://www.CreditscoreBooster.com
http://www.Creditips.com

Answer 7

There are statutes of situation for it ultimate on your credit checklist 7 years from date of deliquency, there are state statute of obstacles reckoning on the form of debt for accumulating on the debt. A judgment will stay plenty longer and from memory is approximately 15 years and can be renewed. If the concepts is sturdy then you definately maximum veritably do no longer choose for to have it bumped off. If unfavorable the touch each and all of the bureaus that are nonetheless reporting the information after 7 years of time.

Answer 8

You sound like a good candidate for Financial Peace. See the website. It's not a gimmick or debt consolidation. It's sound financial advice on how to change your attitude and behavior toward debt.

Answer 9

Equifax has a credit score estimator. You can get your score and see what it will be in two years, six months, or one month. Pretty nifty tool and is fun to play around with.

Answer 10

yes paying off your debt now will make your credit look good in the long run.. and keep it that way.
buys things in cash for now til u get back on your feet