Comments on: I want to fix my credit. But the lenders, debt buyers, lingo, terms, etc are overwhelming. Who can help?

By: Sharron

Sharron — Wed, 28 Jul 2010 14:49:59 +0000

Good news! You can repair your own credit

Everything a credit repair agency or lawyer can do to repair your credit, you can do yourself. Find a good credit repair guide, and get to work!

I used the one at http://howtofixyourcreditscore.info and it really worked for me. It came with sample letters I could use to make arrangements and file disputes.

The best part is, it also taught me how credit scores work, and what I can do to raise my score. It really saved my credit.

The basics go something like this:

Every year you are entitled to one free copy of your credit report from each of the major bureaus. You should order your free report from http://www.annualcreditreport.com and check for inaccuracies.

Dispute the inaccuracies directly with the credit bureau, and according to the Fair Credit Reporting Act they have to verify the item. If the reporting company doesn’t respond in 30 days, or sufficiently prove the item should be there, it will be removed, which should raise your credit score.

If the item comes back verified, you’ll have a chance to contact the reporting party and try to negotiate a settlement or payment.

For items you did not dispute, you can be proactive and contact the debtor listed on your credit report. Look into requesting a "Pay For Delete" where you’ll settle for a percentage, or pay the whole thing and they’ll remove the listing from your credit report.

"Pay For Delete" is very important, because if you just pay the debt the creditor can continue to list it as a delinquent account, which will keep hurting your score.

Lastly, look into ways to build "positive" credit to keep your credit history fresh and growing.
References :
http://howtofixyourcreditscore.info
http://www.annualcreditreport.com

By: I love to Help

I love to Help — Wed, 28 Jul 2010 14:23:59 +0000

I think the best thing to do is what you are thinking. Get a financial advisor to help you out.
References :

By: SEBISBEST

SEBISBEST — Wed, 28 Jul 2010 14:15:59 +0000

It may be a pain, but the best way to fix your credit is to order your credit report from all 3 credit agencies (experian, equifax, and trans union). Then go through every single account that needs help and call the bank. Sometimes delinquent accounts get sold to outside credit agencies (that’s what they were trying to say to you), but the bank can give you their phone number. Sometimes even those companies will resell your account, so make sure you find exactly who has your account. Then make a deal with them. I would take care of the smaller amounts first if you can afford them, and be done with it. Then the accounts with bigger balances, tell the bank/company that you want to work with them to set you up on a payment plan where you can have a very good rate and low monthly payment. Just remember that even if you pay for some of these things, it will not clear up your report. It still won’t look great as a "settled" account, but it’s still better than a charged-off account.
References :
Worked for a major credit card company for 7 years.

By: bdancer222

bdancer222 — Wed, 28 Jul 2010 13:31:59 +0000

Take it one step at a time. For starters, paying off derogatory items will NOT improve your score. The damage is done and will remain for the balance of the 7 year reporting period, whether paid or not. That means that anything that has been charged off and sent to collections has already hurt your score.

Derogatory items age off your credit report 7-1/2 years from the date of first deficiency (default) — not the date the account opened or the date reported. It’s 7 years from when you stopped paying on the account. Credit reports often show the date the item will age off.

Pay for delete agreements only work for single entry items like medical or utility bills. Collection agencies can only remove what they report. It doesn’t work for regularly reported items like installment loans and credit cards because the original creditor’s charge off remains. It is also getting harder to get collection agencies to accept pay for delete agreements. The credit bureaus frown on removing legitimate items and more collection agencies are complying with the credit bureau policy.

Forget consolidation companies. Forget debt settlement companies. Forget credit repair companies. They can’t raise your score and will just cost a lot of money.

To improve your score, you need at least 24 months of consistent, on time payment history. If you don’t have an open active account, get a credit card, even if you have to get a secured card. Use the card and pay the balance in full every month.
References :
BD

By: onelove

onelove — Wed, 28 Jul 2010 12:41:59 +0000

It can be overwhelming but you just need knowledge. Here’s a few things I learned cleaning up my credit: Delinquent balance stay on your credit report 7 years after it’s paid off meaning, if your didn’t pay it off, it will stay there regardless. Also, consolidating may not work. You need to contact your creditors and try to get them to lower your interest rate. When paying off a debt you have your Principle, which is what you actually owe, and you interest, which is the money added everyday you don’t pay back the loan. Interest can be compounded daily meaning you’re added money to your interest every single day. Example: I have a student loan for 6,000. I use to pay $60 a month but I found out that because of my interest rate, it was adding $1.24 everyday which seems small but adds up to about $40 a month in interest, the money you pay goes to your interest first so out of my $60, only $20 was going to the principle balance. Once I found this out, I started paying $120 which covers my principle and interest. O know, it’s a lot.
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