Question : Credit repair?
I want to repair my credit I know this will take some time however, I have come into some money and want to pay everything offf thats on my credit if I do so what will happen?will be removed?will my score get higher?I'm so clueless as to what will happen after I pay them all off and its kind of embrassing Im only in debt by 3000.00 how sad
- asked by Tee
All Answers:
Answer #1
So you've come into a bunch of money...time torepair your credit. First thing I would do is geta copy of your credit reports and find out whatyou need to settle. Secondly, don't deal with thecollection agencies unless the original creditorabsolutely won't talk to you. I would recommendpaying off your open credit cards first. Then tuckthem away and don't use them. This will take careof the "%available credit" part of your creditscore"The next part is cleaning up your delinquintaccounts. Call your creditors and see if they willsettle for 50% or less of your delinquentbalance.Demand that you get a copy of thesettlement in writing BEFORE you send them acheck. Make sure that any settlement agreement youreach includes what they will do with your creditreport...you can see if they will take it off ofyour report, but if they won't at least demandthat they put the phrase "pays as agrees" or "paidin full" on there. The ideal is that they removethe item from your report entirely. If thecreditor sent an item to collections, call thecollection agency and demand that they remove thecollections item from your report. (This willimprove your score). Start with the lowestdelinquent balance first and work your wayup...the more line items you can remove from yourcredit file the better. Good luck!
- answered by Cato
Answer #2
When paying off your creditors make sure you get arelease form from each one, showing that yousatisfied that debt. Because sometimes it's nevertaken of your credit report after paying themback. As far as your credit being repaired to thepoint of getting credit again, it's going to takesome years before you can.
- answered by Arthur A
Answer #3
Get a copy of your credit report. If there are anyerrors, dispute them with the credit bureaus.Startnegotiating settlements of your derogatory items.Start with the newest and work back to the oldest.The older the item, the less impact on your score.Anything close to the 7 year reporting period,just let age off.If you have single entryderogatory items like cell phone, medical, andutility bills, ask for a delete for pay. That willremove the item and work best for your score. Inthe case of multiple entry items like creditcards, the collection company can only remove whatthey posted. The charge off by the originalcreditor will stay on your report.If the debt ismore than 3 years old, offer 25%; 2 to 3 yearsold, offer 50%; less than 2, offer 75%. Lump sumgets the best deals. Payment plans have to beshort term.Get any settlement agreement in writingand keep it, along with your payment proof,forever. Do not give collectors direct access toyour bank account.Paying off old debt will notimprove your score unless you get it deleted. Infact, paying old debt will initially lower yourscore. When you pay an old debt, it becomes a"current" transaction and is counted more,including the negative parts. Creditors look atyour whole credit report, not just the score. Paidold debt always looks better than unpaid.You willneed at least 24 months of consistent, on timepayment history to improve your score.
- answered by bdancer222
Answer #4
baby please that is not said. at least you are indebt only 3000.00 dollars. please do not beembarrassed. some are in debt in the 50,000. thatsa house! anyway yes your score will get higher butthe debts will stay on you credit reports for agood period of time. also when you pay it offplease keep the reciepts. this will help you whenyou apply for a loan and they pull your creditreports and see you have those debts on there. youcan politely show them the reciepts and they will4give your debt. also when you pay it off get theaddress to all the credit reports and mail a copyof your reciepts to them so they have proof youpaid the bills off and take it off for you.because the bills you pay off suppose let thecredit report people know you paid the debt. butsometimes they do not. that will prevent yourscore from coming up.
- answered by angelia b
Answer #5
I've been through this myself.about.com has someof the clearest explanations of how it works.Check out the links in the lower half of thewindow
http://search.about.com/fullsearch.htm?TopNode=%2F&terms=credit+repair
- answered by Hyderabad C
Answer #6
This article on improving your credit will helpyou, the article lists several tips on improvingyour credit, the article lists several tips ongetting your credit score up.
- answered by cdrates
Answer #7
Hi,I used "Credit Solution" to settle my debt andimprove my credit score.They managed to reduce mydebt up to 58%.It's legitimate. I came across thiscompany on NBC News Special Edition.Check it outhere:
http://redirx.com/?0g4c
- answered by Jennifer
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