credit

[emg]

if i wanted to clean up my credit without going though a credit repair company, unless you guys can convince me they're worth it, whats the best way to do it by myself?

[347Mike]

if i wanted to clean up my credit without going though a credit repair company, unless you guys can convince me they're worth it, whats the best way to do it by myself?

Start with paying your highest rate credit card or debt as if it were your car payment or rent payment and work your way to a 0 balance.

[Vertnut]

Start with paying your highest rate credit card or debt as if it were your car payment or rent payment and work your way to a 0 balance.

Good advice. Also, try to pay off the little stuff, and as you do, just use that money towards another item (card). It's almost a mental thing. You start to see progress, and it becomes a habit. Hell, for us, it's almost an obsession.

[mstng86]

If you get a lump sum of money, say a tax return or bonus, try and use it to pay off the debt. Don't blow the money.

[347Mike]

You would be surprised at how quickly you can eliminate debt if you made it a priority like a car or rent payment. When I have debt I limit my spending dramatically and throw checks at it. Then when you are finished with your debt keep that 300-400 dollars going into your savings and be debt free. No sense in buying something that cost 50 bucks and end up paying 70 cause of interest. Cash > Asking for money

[emg]

ok what if most of my stuff is in collections from like 3-4 years? its mostly credit card stuff, im fine on my cars and house. is it better to call the credit card company's or the collection agencies? are the credit card companys still reporting negative stuff to my credit even though they have sold the debt to a collection agency?

[347Mike]

ok what if most of my stuff is in collections from like 3-4 years? its mostly credit card stuff, im fine on my cars and house. is it better to call the credit card company's or the collection agencies? are the credit card companys still reporting negative stuff to my credit even though they have sold the debt to a collection agency?

Dispute everything on your credit. If they don't reply within X amount of days it will fall off your record. After that pick up with paying them off.

If you have credit cards I wouldn't cancel them. A large piece of your credit score is your credit to debt ratio which involves how much money lenders feel comfortable giving you.

[03mustangdude]

or just wait 7 years might as well ur halfway thru unless your buying a house

[Brandon-k]

or just wait 7 years might as well ur halfway thru unless your buying a house

Kinda what I'm doing. I was a complete fuckbag when I was 20-22 years old and completely screwed my credit with bad decisions. Next year I should be able to get a large amount of my indiscretions to drop off. Thank god.

[347Mike]

or just wait 7 years might as well ur halfway thru unless your buying a house

Why wait another 3-4 years when you can dispute them and possibly have them removed in 3 months? Not to mention any other fees that might come along with waiting if there is still a balance. Im afraid to ask how your credit looks.

[Lason]

Best way to clean up your credit is with "pay for delete" letters.

If you have old debts that arent close to their 7 year term then I would suggest sending a letter to each creditor and offer to pay a certain amount 50% or more depending on the amount in exchange for deletion off your credit report.

If you pay them then the 7 year clock starts back over and you will have a late payment on your account. It would be in your best interest to go ahead and get them off there completely.

Just my $.02

[mr tinfoil hat]

The shit doesn't just disappear in 7 years. If you dispute something that's been on your credit for a few years and it isn't removed, it shows that dispute to be the last current activity on the account. If they don't respond to your dispute you're fine, and whatever you disputed should be removed. If they do respond to your dispute, you just reset the last activity on the account to the date that you disputed it.

[347Mike]

hear yee, hear yee, to dispute or to not dispute?

[94form2000z]

Dispute everything on your credit. If they don't reply within X amount of days it will fall off your record. After that pick up with paying them off.

Start here and pay your debt off. Then work to not let it get this way again. No quick road and I would not pay anybody to it.

https://www.annualcreditreport.com

[Brandon-k]

The shit doesn't just disappear in 7 years. If you dispute something that's been on your credit for a few years and it isn't removed, it shows that dispute to be the last current activity on the account. If they don't respond to your dispute you're fine, and whatever you disputed should be removed. If they do respond to your dispute, you just reset the last activity on the account to the date that you disputed it.

A dispute will not reset the the 7-year clock.

Federal law (US Code Title 15, §1681c) controls the behavior of credit reporting agencies. This law is known as the Fair Credit Reporting Act (FCRA). Under FCRA §605 (a) and (b), an account in collection will appear on a consumer’s credit report for 7½ years. The clock starts approximately 180 days after the date of first delinquency on the account. To learn when an account will be removed by the credit reporting agencies (TransUnion, Equifax, and Experian and others), add 7½ years to the date of first delinquency. Subsequent activity, such as resolving the debt, is irrelevant to the seven-year rule. However, if the debt is a tax lien, that can appear for seven years from the date of payment. A bankruptcy will appear for ten years from the date of the final order. Delinquent federal student loans can be reported indefinitely, i.e., for as long as they are delinquent.