What is the best way to clear up my credit score?

Question

So basically when I was 19, I got a credit card. One thing lead to another and I bought too many things, got another card, bought too many things, got another card. Etc.

I was also in the hospital twice without insurance. :(

Basically, I just checked my credit score (since I was doing an offer for yourfree360games.com) and LOL @ me. It looks like after ignoring all them bills and throwing away collection letters because I was poor & scared that I'm a little over $6,000 in debt. Luckily this isn't an insane amount, but I don't have $6,000 just laying around to be like "HERE ::PAYS OFF::"

So, can I get advice? To be honest I don't even know who the I owe what to. I was thinking about a consolidating place, but I hear they can be a rip off. I'm really looking into doing one of those, so advice on those first.

If there's ANOTHER way, I'd be interested in hear that as well.

I figure I'll grow up now while I'm still fairly young so I don't have this bad credit hanging over my head!

Answer 1

http://www.myfico.com/CreditEducation/

Answer 2

Hi,

I used "Credit Solution" to settle my debt and avoid bankruptcy.They managed to reduce my debt up to 58%.I came across this company on NBC News Special Edition.Check it out here:

http://starturl.com/tyjxb

Answer 3

You have begun badly with credit cards, but you still have the opportunity to get out of debt.  I'd hate to tell you what I still owe and I've gotten it down a lot.  First, you have to get control of what you do owe.  Open the bills and see how many months in arrears you are.  You do have to have income to get it down.  What they have done to you while  you were ignoring them is probably inceasing  your interest rate.  It can go up to almost 30% which means that every dollar  you owe is costing you 30 cents for the privilege of having used it and is continuing to cost you that on a yearly basis.  

If you are way behind and can't pay them, you need to contact them and try to negotiate a means of paying your loans.  Ask them to freeze your accounts so you cannot borrow more money right now.  That keeps you from putting more on them.  You must pay the amount of the interest plus as much as you can in addition to begin getting t hem paid down.  Watch carefully that the payment amount is not less than the interest for the month or you will never pay them off.

Pay on time.   You actually have to pay a little in advance as your payment must arrive prior to the payment date.  You can seet up automatic deductions from  your account, but do not overdraw your checking account or that will put penalties for overdrafts - sometimes $36 or $40 per overdraft plus $6 or more per day.

Keep track every month and make the payments  you agree to.  Can you cut some expenditure to have more money to pay them back?  Is a part-time extra job a possibility for a time?  You can increse your income or reduce  your debt.  Do not charge anything until you get this paid.

If your monthly bill is $100, can  you afford $110 or $150?  If so, pay it.  Make sure it is more than the interest that accumulates for the month.  Do  you have a credit card that has a lower interest rate?  If they are both Bank of America or from same company, then  you may be able to get the lower interest rate on both of these - ask for it.  Won't hurt to ask.  Tell them  you were in the hospital and sick for awhile but that you want to get these paid off now but you can't do it all at once.  Just negotiate with them but don't agree to something you can't do.  Get them to move some on this - either interest reduction or ask for their suggestion to a way to reduce the interest to make it possible for you to pay it off.  With all the economic problems now they may be more willing to negotiate than they were in the past.  I received a cal the other day offering me a reduction in interest on 2 of my cards.  I plan first to check with B of A to be sure this is legitimate and if so, and no extra charges, will do that.  In the meantime, I am paying more than my payment amount each month.  I have put more money on higher paying cards to reduce tem more quickly while still staying current on lower paying cards.  If there is a card that is close to being paid off, I pay on that card and once it is out of the way, I concentrate on another one.  You can make a lot of money but if you are burdened by debt, it is no better than being poor.  

Good luck to you in starting to manage your debt.

Answer 4

Have you even checked your credit reports to see what's on them?

Go to http://www.annualcreditreport.com This is the gov't recommended scam free site.

Just don't waste your money on the scores.

Transunion

Experian

Equifax

Look them over.  Transunion will give more detailed info about who the collectors are.  If you are unsure about them, call the credit bureau and they will give you the info.

Next, understand that paid or not paid, the negative items will remain as negatives on you report, for 7 years from the first date of delinquincy.  Once you pay on it, the clock resets to the day they receive the payment!

Also, check out your states statute of limitations at this site:

http://www.creditinfocenter.com/rebuild/...

You can check out your state's recommended website for credit counseling.  Most of the time it's free.  You can get into a class or a workshop that will help you learn to budget and plan to pay off the debt.  It's a lot of sacrifice, but you learn to live that way once you get used to it.

Answer 5

First, start saving cash.

You'll need it to clean up the mess.

List out everyone that you originally owed money to.

List out everyone your credit report says you owe money to.

You need to reconcile these two lists.

Go to each of the original lenders, and ask them if they sold the debt.

If not, then start sending them money.

If they did, then track down who they sold it to, and you'll have to deal with them.

Two things:

1) Never send a collections agent a dime until you get it in writing that the check you send will pay the debt in full.

2) Never give a collections agent electronic access to your checking account.

Use certified checks, by certified mail.

If these are 1-2 year old debts, you could probably get them to accept 50 cents on the dollar (If you owe them $1,000, they probably bought the debt from the original lender for $200, so if you offer them $500 cash as settlement-in-full, they may take it.)

But, get it in writing, and keep it in the safe deposit box for life.

Answer 6

i would go to http://www.cellsware.info/restorecredit . they're an awesome company that helps you fix up your credit score. I was having a lot of problems with my debt and my credit score was hooorrrrrrible so one of my friends showed me this site and they brought m back on th right track and helped m raise my score