I NEED TO CLEAR UP MY CREDIT WHICH IS THE BEST WAY OF CLEANING IT UP?

Question

I NEED TO PAY OFF ALL MY BILLS

Answer 1

You answer your question. Make a vary conservative budget and concentrate on paying bills. If you have CC bills start paying off one with a biggest interest rate. Give your self time. Good Luck!

Answer 2

Make a strict budget.  Elimnate all the extras -- cell phone, new clothes, eating out, etc.  Put every penny you can squeeze out of that budget on the highest interest rate credit card, while making minimum payments on the rest.  When the highest interest rate card is paid in full, move to the next till they are all paid off.

Get a copy of your credit report (AnnualCreditReport.com) and start working on the derogatory items.  Start with the newest and work back to the oldest.  The older the item, the less impact.  Anything close to the 7 year reporting period, you may want to just let age off.

If you have single entry items like cell phone, medical, and utility bills, ask for a delete for pay -- you pay and they remove the derogatory item from your credit file.  This will help your score.  However, it doesn't work as well with regularly reported items like credit cards. Collection agencies can only remove what they report.  The original creditor's charge off remains.

If the derogatory is over 3 years old, offer 25%; 2 or 3 years, offer 50%; less than 2, offer 75%.  Lump sum gets the best deals.  Payment plans have to be short.  Get any settlement agreement in writing and do not give collectors direct access to your bank account.

Paying old debt will not improve your score unless you get the item deleted.  However, creditors look at your whole credit report, not just the score.  Paid old debt always looks better.