Credit People?

Question

Lets say my credit isn't as good as it use to be.What can I do to clean it up or do I have to pay all the old debt to clean my credit up?

Answer 1

Pay your old debt and don't be late in paying your current debt. Keep debt at a reasonable level. Only ways to improve your credit profile.

Answer 2

First pay off your current credit cards. Carrying balances more than 30% of your available limit hurts your score. Pay them off one at a time, starting with the highest interest rate.

You probably need to set up a strict budget. Get rid of all the extras -- cell phone, eating out, new clothes, etc. You might consider wasy to increase your income -- have a garage sale, collect alum cans, get a second job. Throw all the extra cash on the debt.

Get a copy of your credit report. If there are errors, dispute them with the credit bureau. Start negotiating to clear up the old debt. Start with the newest and work back to the oldest. The older the negative, the less impact on your score.

You might be able to settle old accounts for 75% to 50%. Lump sum gets the best deals. Payment plans have to be short term. Get any settlement agreement in writing before you pay and don't give them access to your bank account. You can ask that the negative be deleted for payment -- some will, some won't.

Paying the old stuff won't improve you score very much but it will look better. Creditors look at more than just your score.

Answer 3

uh...yeah. Paying the debt is kind of important when trying to attain better credit.

Answer 4

You could use a do it yourself kit like my mom did. She got it online at www.creditrepair101site.com and raised her score herself 50 points in 3 months.