How can i fix my credit?

Question

I have really bad credit. How can i fix or pay? will it stay like this for years or will it erase?

Answer 1

First of all do not apply for any credit right now.

What you need to do is get copies of your credit reports from the 3 bureaus Equifax, Experian and Transunion.

Take a photocopy and put the original in a binder.

Use a highlighter to highlight all the accounts that are old (> 7 yrs to be deleted, not yours or incorrect). You'll need to download disputer forms from the credit bureau websites and note what is wrong with the highlighted accounts.

If a debt is not yours then you dispute that too. If you don't know if a debt is yours or still payable ask for a debt validation from the credit bureau NOT the creditor.

If you want to pay off collections, contact the creditor/collection agency and negotiate a "pay for delete" along with payment (in full or payment plan)...make sure to get it in writing.

Get a secured credit card w/Capital One for say $500 or more if you can afford it. Do not max it out...use it sparingly for no more than $50-100 for the next 6 months. Pay in FULL and pay on TIME. By then you will establish a positive re-payment history. Ideally you need 1-2 years to rectify the worst part of your credit (non payment). But this will help. Do not apply for anything else until your score picks up

Answer 2

Get the book "The Total Money Makeover" by Dave Ramsey. This is a complex question. Nobody could truly answer your question in the space provided.  

Answer 3

I found a website that has some good tips on credit repair.     www.credit-cards-comparisons.com

You can build it back little by little with discipline and determination.  I know you can do it.......

  

Answer 4

Credit cannot be "fixed" or "repaired" this is a common belief which is woefully incorrect. (You can ask for and have errors made, but these are rare). Your credit is bad because you did not pay as agreed. You need to limit your use of credit and be certain you always pay as agreed. Time will allow the bad credit to age off.

Answer 5

You should contact one of the many non-profit credit counseling centers. They can help you make pay-off arrangements. Then if you pay your bills on time for a while, your credit will start to improve.

I used to have horrible credit. I paid off all my cards and only used one (with rewards). I only bought things I would have purchased anyway and always paid the entire amount off completely every month. My credit is now a perfect 850 and I can borrow anytime from anyone.