Fix Your Credit !!!

I want to Fix My Credit & Bring it to a Perfect Credit ?!!!

I got my credit report and i came up with the estimate that i owe $6,900. I am going to start paying that but in small payments cause my income is very low. I am asking that anyone in here that can tell me step by step on how to fix my credit and what to do and what not to do so it can bring up my credit score. Anything helps. Thank You

The Answer : Fixing your credit is going to be a two part battle. You must first get rid of all the negative information, then start adding positive info.Note that just paying off your debt does not remove the negative information from your credit report.
All they are required to do is show "paid" on your report, but all of that negative information will remain, and that will keep your scores low.Also, you don't want to be paying a debt loaded with a bunch of illegal collection fees. So fixing this is a long process..I'll try to give you the highlights.

1) Dispute every item on your report that is negative. By law, if the creditor does not respond to a dispute investigation the item must be deleted from your report. This happens very frequently. If you can get it deleted this way, that is one less creditor you have to deal with.

2) Send a letter to demand validation of the debt. You want them to prove exactly what you owe. In come cases they can't produce this information. No proof means they can't sue you or post this debt to your reports.....you can cross them off your list.

3) Prioritize your debts. If the debts are over 5 years old they are not effecting your credit that drastically. If you begin to pay them off, they will turn this debt into "recent activity" and will actually HURT your credit more! Strange but true. Also, if the debt is over 5-6 years old, it's likely that it's uncollectable because the statute of limitations has run out. Therefore, any debts older then 5 years old can be crossed off your list.

4) Contact the creditor (if they will talk to you) or the collection agent and negotiate a settlement. many times they will drop the balance you owe by as much as 50% (most likely 30%). But demand IN WRITING that in exchange for paying off the debt, they must delete this entry from your credit report. This is VERY important. Remember, you are trying to fix your credit...it makes absolutely no sense to pay off this debt if it doesn't remove the negative information from your report. If they won't agree to this, cross them off your list.

5) Pay these bills off as quickly as you can.

6) Begin to establish good credit lines on your report by opening up a secured credit card, store cards or gas cards. Use them but make sure you pay them off each month! And PAY ON TIME!Do not expect your credit to jump in a few months...it's going to take a while before you see results.