Rebuilding Credit

[tjdutch]

I am in the midst of rebuilding my credit. I was 18 at the time most of the negative remarks came on, I am 22 now going to college, I am a little more wiser about my decisions. Anyways, I have 6 negative's on my credit report, 5 totaling $2,700 from credit cards and 1 hospital bill and a couple insurance policies I didn't fulfill. The other is a car loan that got repo'd that I owe $23,000, and is due to fall of the report in 4 years.

My plan is to pay off the 5 lesser negative items in full and open a secured credit card from US bank to increase my credit score. My current score is 515. Would paying off these lesser items increase my score over a length of 12 months? What should I do about the car loan that I clearly don't have the money to pay? Should I just wait for it to fall off, or make arrangements to pay of off, currently in college and won't have a real job for another 2 years.

My goal is to increase my credit score by opening two secured cards and paying on time and paying off the 5 negative remarks. What kind of score jumps can I see by paying the credit cards on time and paying off these old debts? Thanks for any input, I really want to get a house in 3 years, but with this terrible score of 515 I know no bank will touch me.

[chane]

Have you tried disputing any of the negatives on your credit report? If you dispute them and they get removed, there is really no reason to pay them.

If you do pay them, do a pay for delete. Don't pay them unless they agree to remove it.

If you do things right, you will easily have 700+ scores in 3 years. That's plenty of time, but it's great that you are working on it now. You never know what you will need between now and then or if plans change and you want a house sooner.

[tjdutch]

Well, I'm in the process of disputing the items now, I have until october 30 to get a response. If they come back verified, I will call back the companies and ask for a delete. Can you get a verbal agreement to delete or is it best to get it in writing. Should I wait until I get a written statement from the company stating they will delete it from my record? Are the companies willing to do deletes if you pay them in full?

[chane]

Always get it in writing. Some of them are willing to do it, some aren't. Why pay the ones who won't remove it?

[tjdutch]

Sounds good, I will follow this plan and thanks for the input chane. I on my way to good credit once again, i know it takes time, but i will persevere.