I need help figuring out how to fix my credit.

Fighting4Healthy

My score is currently a 521, I know that is bad but I am trying to fix it. I was thinking about paying the smaller things first then working my way to the bigger items, as I pay everything in full I will dispute all of the items on my credit report. I really really want to fix my past mistakes, is there anyone that knows what else I can do, I kind of stink at personal finance.

Hsanders3961

go to www.creditkarma.com. It's a great site and it's free. It has TONS of useful information. Good luck!

ejohndrow

If you don't need it don't buy it
If you can't afford it don't buy it
If you have to put it on a credit card and you can't pay more than the minimum amount when the bill comes around don't buy it

PatientBearTiger

You can't dispute it just because you paid it off. It's still a legit black mark on your report and you'll just have to wait for it to fall off.

As for what order to pay things off in, you can start with the small ones if they are really small. However, I would pay the ones with the largest interest rate off first. Choose one, pay as much as you can and the minimums on the rest. Once that is paid off, choose the next one, add what you had been paying on the first one to the minimum you had been paying on the second and pay the minimums on the rest. And so on. It'll take some time, but you'll get there.

sharonsjones

We wanted to be debt free and that is how we started. We paid off the smaller bills first then took that money and put it on another bill and so on. We started a couple of years ago and by feb next year we will only have a house pymt an it's a 15 year mortgage. We do not use credit cards.

RyonsLions2

You can dispute it, I have done this. If the company doesn't respond within the 30 days of your dispute, the credit companies will remove it. I was actually told this by a collection company and had almost 2 pages removed from my credit because of their advice. They told me after it's paid, dispute it and they wouldn't answer and it would be removed. It does work. You can try.

aliburstall

Companies aren't highly motivated to respond to disputes if you've paid them off.

MissFit0101

If you don't need it don't buy it
If you can't afford it don't buy it
If you have to put it on a credit card and you can't pay more than the minimum amount when the bill comes around don't buy it

great advice, although credit cards are only 1 of a million other things that can end up in collections and reflecting badly on a credit report...

DWilbanks

1) pay bills on time
2) always have one bill that you pay on monthly (something other than necessary bills). I thought that by paying all my credit cards off and owing nothing but my monthly bills was a plus, but according to the bank, you actually have to have some type of bill to pay on monthly so you keep a steady credit check every month. Stupid huh? So the bank suggested I get a credit card and charge like a dinner every month and pay it on time to show a debt on my record each month . I did this and my score went up by 25 points in one month.

Fighting4Healthy

What about pre-paid credit cards? What do you know about them?

BondBomb

Before you pay contact that collection agency and ask if the would be willing to remove the information for payment in full.if they say yes get it in writing. Also dispute! Sometimes companies have gone out of business or simply don't have the time or interest in responding. These have to be removed from your credit history. Don't close credit cards. Just pay them off and don't use them anymore. Length od credit history is important. In a year I was able to get my husbands credit from 500 to almost 700. I'm sure he has screwed it back up since the divorce.

Laurathabomb

Here's a trick... Start by disputing every negative item on your report, even if you owe the debt. Some items will come off. I guarantee it! I work with people who have negative credit all the time and I have even has struggles myself in the past. Basically what this does is force the creditor ( person who says you owe it) to prove that you owe it by showing a contract you signed, etc. If the cannot cough up the contract, then the debt is wiped. To me, if they cannot prove I owe it, then why do they deserve to be paid?

Trust me... It works!

Fighting4Healthy

How do I dispute items on my credit report?

lee3978

You have to go to each credit reporter's site TRANSUNION, EQUIFAX, EXPERION

I.E. http://www.transunion.com/corporate/personal/creditDisputes/submitDispute.page

I used the credit card calculator www.dinkytown.net to figure out how to pay off credit card debt I accrued while struggling with gainful employment last four years.

PUT your FINANCES ON A DIET!

Carl01

Sit down and write out a budget including card payments.
They need to be a weekly or bi weekly amount.
Do not exceed the budget even if it means giving up some luxuries .
Stick with it.

Fighting4Healthy

You have to go to each credit reporter's site TRANSUNION, EQUIFAX, EXPERION

I.E. http://www.transunion.com/corporate/personal/creditDisputes/submitDispute.page

I used the credit card calculator www.dinkytown.net to figure out how to pay off credit card debt I accrued while struggling with gainful employment last four years.

PUT your FINANCES ON A DIET!

I have cut do my expenses, and my credit card debts are over three years old, the rest is old hospital bills, an electric bill and a phone bill, a total of 14 debts, totalling about $10,000-$14000 depending on the credit bureau you look at. I have to get out of debt.

PatientBearTiger

To me, if they cannot prove I owe it, then why do they deserve to be paid?

Seriously?? So, basically, what you are saying is it is ok to steal. Got it. Great advice.

RyonsLions2

To me, if they cannot prove I owe it, then why do they deserve to be paid?

Seriously?? So, basically, what you are saying is it is ok to steal. Got it. Great advice.

Yeah I agree... if you know that it's a valid debt, you should just pay it however you can and not try to get out of it. This kind of stuff is what makes it hard on everyone.

Fighting4Healthy

What about all of the double things on my report? the charges that show up twice on my credit report for the same amount. can I dispute them?

floresvn1

bump very interested...

lee3978

What about all of the double things on my report? the charges that show up twice on my credit report for the same amount. can I dispute them?

Yes, you can. Is it totaling up double in your total debt reported?

Contact the hospital and see if you can negotiate a pay off. You can also apply for financial assistance through the hospital. As for disputing banking they will not be able to come up with your paperwork I wouldn't bother. Just use the financial calculator to help you pay off your debt. I once racked up a boyfriend's credit card and you betcha I paid it off.

Take responsibility by executing a reasonable financial plan. Clean houses if you can to help. You also burn calories. Any extra work you can find towards debt will help you faster.

Good luck!

couponfun

I'm glad this thread came up - I've been getting info from my bank when I applied for something about outstanding debt, and half those things were paid off through either a settlement or the full amount. I was so upset I didn't even think to ask what I should do next.

I'll need to start making some calls/writing some letters I guess. Thanks for the topic - and realize there's a lot of us out there, especially in this economy. :flowerforyou:

Fighting4Healthy

Thank you to everyone who replied, if anyone else wishes to add anything feel freeI can use all of the advice I can get! I will keep ya'll updated through this thread. :-)

livnlite

What about all of the double things on my report? the charges that show up twice on my credit report for the same amount. can I dispute them?

Absolutely .. It pays to pay attention. If it doesn't look right, ask for an explanation. Errors happen all the time. If you are being charged for something you shouldn't be due to an error, they can't fix it unless they know about it.

There are many ways to help reduce you debt load..like for instance: you can call your credit card company and ask if they will reduce your interest rate, and spending limit.

Perseverance .. and discipline ... It's the only way!

Erin_26

Both ways that people are sharing are ok, the point is to pay them off asap. Google Snowball debt repayment calculator. www.treesfullofmoney.com has a fabulous one. It gave me direction and a solid plan with an end date, which was encouraging.

If some of your debts are quite small (a few hundred dollars), then definitely pay them off first. It will give you motivation to keep going and you will feel productive. You will need patience to attack those bigger ones, so just keep looking at your Get Out of Debt Date to stay positive.

Most importantly, look for ways to cut your daily expenses. Can you trim your phone bill? Live without cable, a home phone, certain grooming/beauty items, grocery items? Freezer cooking/stocking is a great way to save money and we buy as much in bulk, like flour, pasta, spices, as possible. That helped us scrape up a few extra hundred to throw on debt each month.

Now, credit. Do you have credit cards? Are you paying them off each month? What interest rate are they? If they are like mine and in the 20% interest rate, pay them off asap and only use them when you can pay them off at the end of the month. Also, aim to only use up to 30% of the available credit on your card. When you go over a certain amount, your credit score is dinged. Paying off your cards each month will help your score quite a lot, after a few months. You can also get a small bank loan and pay it off, that helps as well.

I will wish you good luck, but it's not luck that will get you out of this hole, it's your determination and perseverance. I know you have that in you! So go ahead and start your journey to a better life.

Cheers

livnlite

If they cannot cough up the contract, then the debt is wiped. To me, if they cannot prove I owe it, then why do they deserve to be paid?

Trust me... It works!

Sure, it might work .. not exactly ethical, now is it, though? YOU know what you owe .. and why. When you sign an agreement .. YOU also agreed to pay. You've given your word, in good faith for something you took in exchange THAT's what makes them deserving to be paid, not just having possession of a paperwork explaining the details.

Why in the world would you think you are not entitled to pay for it even if they have misplaced the paperwork? Another example of someone who has an elevated sense of self entitlement. It's just SAD.

This is such an opportunistic piece of advise.
But, who am I to judge .. What ever floats your boat!

Queen_Christine

What about all of the double things on my report? the charges that show up twice on my credit report for the same amount. can I dispute them?

they probably aren't double, they are just being reported by a different credit bureau

Queen_Christine

What about all of the double things on my report? the charges that show up twice on my credit report for the same amount. can I dispute them?

they probably aren't double, they are just being reported by a different credit bureau

jen0731

Besides fixing past mistakes on your credit report what I had done was get 1 credit card. I would put my gas on it and pay it off on my next paycheck. Others may disagree but it helped my number go up. For me personally, I spend less money if I have to charge it than using my debit card. Still swiping the card, but I wanted to make sure I could really pay my credit card on my next statement so I didn't pay interest. So I wouldn't buy that purse or whatever if I really couldn't afford it. My credit card I had gotten did have a yearly fee because my score was low but after the second year I called the credit card company and they waived my fee and lowered my interest rate.

Fighting4Healthy

I had credit cards but they have been in collections for 3 years, I am thinking about the orchard bank secured credit card, with getting that and paying on it on time monthly help bring up my score?

iamahealthychick

We had double what you owe, owing. Nothing in collections. We watched 'til debt do us part' (there are American episodes I believe). Gail Vazoxlade is a no nonsense/ stop making excuses kinda woman. She has a website- www.GailVazOxlade.com that has a ton of tools to help you make a plan to get out of debt.

I wouldn't worry about credit rating until you start paying things off. She'll suggest listing your debts, in order of interest rate (highest to lowest) make min payments on everything except the highest one and throwing what you can on that then when that's paid off taking all of that money and putting it on the next highest interest rate debt (snowballing). You can also do the smaller amts first.

Before you think you don't have extra $, ask yourself if you are being honest... Eating out once a week "because you deserve it"?- stop that. Get rid of magazine subscriptions, stop buying your daily coffee, get basic or no cable, downgrade your cell phone/package, meal plan, shop once a week with a list and cook at home, turn off lights/turn down heat, no shopping for things-always ask "do I WANT this or NEED this" you need medications.... You don't need new clothes etc. Buy 2nd hand if you can.

Most important is to track spending. Every frigging little penny. Buying a pack of gum? Write it down. Get a book and a pen and write it out. It will help you see where you can cut further.

Gail gives you 3 years to repay, I took a year. Call your creditors, ask them to lower interest rates.... If they dont, ask for the supervisor, if they wont then ask for the manager keep trying cause the worst they can do is say no. Can you get a card with a lower rate? Get it and transfer you balance(make sure you can pay it off before the rate goes up if the interest is higher than what you are paying now). Talk to the collections agency and tell them your plan to repay. Send post dated cheques as proof. That might stop the calls.

In all of this, start an emergency fund. Start small, $5/week. Don't rely on credit to bail you out if something comes up. It seems weird to save a little when you have debt but it will help to know you are doing something.

Get a 2nd job-walk dogs, clean houses, whatever you can to make extra and throw all of it on your debt.

The secured card will be fine AFTER you have gotten rid of the debt. We didn't dispute anything. Never hears of that. We knew we spent the money and had to be accountable for paying it back.


ETA-she also has a book "debt free forever" that helped us immensely. It has many of the same tools as the website but it is nice to have all of her stuff in one place and her suggestions/advice to go along with it. Good luck!