Credit file and credit score repair?

[Mike from CT]

I have recently checked my credit file with all three agencies.There are two negative records on it from couple years ago. Two files were turned to different collection agencies ($600.00 and $300.00). Both files are legitimate and I am not in position to dispute those. None of collection agencies contacted me yet. However my credit score is obviously affected by negative records and I am thinking about settling those. What is the right way to do that?

[addicted2eu]

Contact the collection agencies and negotiate a settlement. I'd try for 1/2 the balance. If the person you're speaking to doesn't help, ask for their supervisor, and keep going up the chain. Once you have an agreeable settlement amount, get it IN WRITING that they will report the account "paid in full" in your credit. Keep notes and copies of all correspondence. Copy the money order or check that you sent to them. And make sure you get a reciept. Follow up with them to make sure its reported to the report as they promised. If you don't do this, 9 out of 10 times they'll blow it off, and you'll still have the negative tradeline in your credit.