How do you clean up your credit?

Question

I have a lot of debt, and would like to know the best way to clean up my credit. I owe too much to clear them all. I don't want to file for bankruptcy either. Is there another way to slowly restore your credit?

Answer 1

there are very good advice here regarding your concern. i know of a great company that can give you a free credit report so you can find out where you stand then you can go from there. here's the link: http://urlser.com/?xPIaZ

they can assist you further if you have otehr questions such as how you can manage your debts. hope this helps.

Answer 2

idk

Answer 3

you have to pay down your debt. It might take some time but there is no short cut or procedure that allows to have tons of debt, not pay it off and still have great credit. all you can do is not miss any payments and pay it down.

Answer 4

To raise your credit score you need to do two things:

1 - add positive things to your credit records.  Such as paying your bills on time!

2 - Remove negative things from your records.  These may be mistakes made by the credit report companies or bills you haven’t paid!

If your problems aren’t too bad or too complicated than you can do this yourself.  This review site gives you e-books to explain the process and guide you through it:

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if your problem is complex - or you just don’t have the time or patience to do it yourself then you will want to use a credit repair company.  This review site will guide you to the three best companies to use:

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Good Luck!

Answer 5

First of all take a deep breath. This will take a lot of time and dedication, but trust me it can be done.

The first thing I suggest is getting your free credit report. Once a year you are allowed to receive a credit report from all three of the credit bureaus. Go to: https://www.annualcreditreport.com/cra/i... to gather more information about this. You can either get them on line or you can order them by telephone through the mail.

When you get your report review it closely. Make sure everything on there is correct. If you see something that is not, you need to write to the credit bureau (information is provided) telling them you want an investigation of that account. If you have any proof that the item is incorrect, send it, but this is not required. If the creditor investigates it and determines it is legit, it will stay on your credit with no further harm to you. If they either find it is invalid or fail to respond within the legal time frame, the item will be removed from your report. If they confirm it and you still think it is incorrect, call the creditor (information is provided) and request a second investigation. Once all the information on your report is valid you can move to the next step.

First set aside enough money each month to live on. Lights, rent, water, transportation, and groceries should all come before credit. With anything over necessities you should then make sure any current accounts stay current. Any delinquent accounts that have not yet shown up on your credit should come next. Next I am going to list two options you can use. Figure out which will work best for you and your situation.

1. Don't worry about the items on your credit report right away. Worry about getting out of debt on current items first. First and foremost: Stop using your credit. If you keep spending what you don't have you will never succeed. Evaluate what you owe money on. Do you own a $26,000 car and only make $20,000/year? Sell the car. Buy a $2,000 car instead (it may not be pretty but the payments will be!) Then you should organize your debts smallest to largest. Make minimum payments on all of them except the smallest. Every extra penny should go to this debt until it is gone. Then add that minimum payment to the second smallest debt and hammer that one away. Then add the minimum payments of the previous two debts and get rid of the third, then fourth and so on and so on until all your current debts are eliminated. Now you gather up that credit report and do the exact same thing. Organize the smallest to largest. Start with the smallest. Take all those minimum payments from the debts you paid off and apply that and whatever else you can muster up, and get it paid off. Then keep on moving down the list. Eventually you will reach the end of it and you will be debt free, and that is the best way to live!

2. If you think you would be better off slowly working down the debts that are current and just getting rid of the delinquent debts, Follow the same basic strategy. Line them up from lowest to highest and just keep hammering away on that smallest until it is gone then keep moving down the list.

A couple of things to consider. Once an item is on your report, even if you pay it off, it will still show as a negative, although it appears better than if you had not paid it at all. If you call the debt collector, they will often settle for a fraction of what is owed. This looks better than doing nothing but not as good as paying off the whole thing. After seven years, the negative will be removed from your report. If you do not pay at all, debtors do have the right to sue you. Debtors (with the exception of the government) cannot garnish wages until after they have sued you and waited the appropriate amount of time. You should talk to your debtors but do not let them bully you around. Remember the person on the other end of the line is a low wage worker with a very menial job with a very high turnover rate.

Good Luck!

Answer 6

I know what you mean.  By the time I turned 19 I had 10 credit cards.  When I finally realized what type of impact that would have on my credit, I decided i wanted to get out of debt.  many of my credit cards had an high interest rate, which would have taken years to pay off.  So, I joined this program called incharge debt solutions. They have a web site inchargedebtsolutions.com.  They are a debt management program which consolidates all of your bills into one low monthly payment, and they will lower your interest rates (which would help you get out of debt faster), and they may charge a small fee every month.  For my fee they wanted $14 a month, and I told them that was too much and they accepted $4 a month.  Also, if you join this program your credit card accounts will be closed, your creditors may report this to the credit bureaus, it may lower your score in the beginning but in the end it will be worth it.  right now my credit is GOOD :)