How to repair my Credit History?

[Sephiroth SOD]

I need help in fixing my Credit History.. im wanting to pay off all my debts with payments ? my Credit is really bad. and i was wondering if i end up paying all the things i owe would it get better? and if so how fast? and is there any Angency that would help me ? im on SSI and SS Benifets and im trying to work out my bad history.. it makes life living bad cus you can't do anything ... i try to apply to this apartment and they turn me down.. so if you can help me that would be great.. thanks

[tangerine19]

No matter how bad your credit is, you can take steps that will make it better.

1. Pay all of your bills on time. Late payments (payments that are 30 days late or more) have a negative effect on your credit rating.

2. Reduce the number of credit cards you carry. Write to your creditors to request that they close your accounts and report this status change to all three credit-reporting agencies

3. Avoid bankruptcies, tax liens (a lien for not paying state or federal income taxes or property taxes) and collections. A bankruptcy stays on your credit report for up to 10 years. Collection accounts and paid tax liens stay on for seven years, and unpaid tax liens will haunt you forever.

4. Request in writing that your creditors reduce the credit limits on your accounts to lower your amount of available credit. The total amount of available credit is considered by lenders even if you owe nothing.

5. Ask a family member or friend to co-sign on a small loan or credit card to help you re-establish credit. Make your payments on time.

6. Get a secured credit card to help reestablish your credit. You will have to keep a designated amount of money in an account that will be sufficient to cover your charges. Make payments on time.

7. Get a yearly copy of your credit report to catch any errors. When you have a friend or relative co-sign on a loan or credit card, remember that that person's credit will be affected by the payment history as well. Credit-repair clinics and consumer credit agencies arrange repayment plans and restructure payments to fit your budget. But even if the creditor agrees to the plan, smaller payments and skipped payments can still be reported against you. Some credit-repair clinics charge up to $2,000 up front to get the paperwork started and cover administrative fees. Some CCAs are free. You can call the creditors yourself and make these same arrangements for free.

[blklacquer]

Do you know your credit score? That's important as well as knowing whats on your credit. If your credit really is as serious as you think after you look over your report, then maybe you should try CCS. But if its not that bad then you can increase your credit score by making payments on time. I know it will be hard since you are on a fixed income. But if you can do any little thing and get extra money you could apply it to your debts. Pay off the cheaper ones first. It may take a while, but remember that you didnt get into debt overnight so don't expect to be out as quick. I got my credit score up 153 points within a year. I also recommend The complete Guide to Credit Repair. I checked it out from the local library and it helped me get some things straight. And please don't fall for the cleaning up your credit for a fee scam. Good Luck.

[infinite357]

I'm no expert, Im basically in the same position as you. but what I've been told is ... be careful of credit repair scams....if you do it on your own, first of all...its not a quick process, it will take some time but then your credit wasnt ruined overnight. So besides paying your debts you will also need to get some positive things on your credit to counter the bad. Those bad debts, even tho you pay them off, will remain on your credit report for 7 years..but they will show "Paid". Creditors will still be able to see that you had trouble paying in the past. Slowly they will begin to drop off (as they reach 7 years). and you will be adding positive credit so it will eventually outweigh the bad. Of course you should get a copy of your credit report (you can get a free copy once a year) and make sure that the debt is truly yours. If not you can challenge it and have it removed. That can be done in a matter of months. In the meantime, be diligent about paying everything on time...including utilities. And maybe get a secured credit card and slowly start building positive credit. PS...Make sure you pay your rent on time and are on good terms with your landlord because if they see a bad renting history you'll have a really hard time finding a new place.