Hello everyone!!!
I recently got the following comment from a reader and wanted to include you all in the assistance process.
“How would I start to fix just horrible credit? I doubt I will ever be able to come out of it, but I now know the horrible truth that I wasnt taught at a younger age. I have defaulted on every card I have ever had. I am only 22, so I hope I still have time to dig myself out. I need to change my life, with money, but I just need help in the right direction. I am looking at about 17k in debt.”
What advice would you give this reader on how to get started with improving on bad credit? Please post your answers in the comments below!!!!!
Step 1: Save some money – anything 1 month of expenses. Leave it alone – this is a confidence booster.
Step 2: Pull your credit report
Step 3: List all debts on credit report, even if they are written-off lowest balance to highest
Step 4: Pay minimums on any live debts you have monthly. KEEP CURRENT
Step 5: Create a debt repayment savings account
Step 6: When the balance gets enough to pay the first debt 100% off, wake the creditor. Call them ask them what it will take to clear this account. They will most likely give a number under the 100% range. Ask them to send you this amount and agreement to be free of this debt with no recourse when the agreed amount is paid. Tell them you will send the certified funds when the letter is received. Save the letter and your copy of the payment in dead account file.
Step 7: repeat step 6 with the next highest balance
Over time your credit score will rise slowly.
Dedicated’s last blog post..Flexibility is not always good
Excellent advice and it is similar to what I would have responded. I love that you noted that the reader’s credit score will rise SLOWLY!!
There is NO QUICK FIX when it comes to your credit score going up. It will take time but if you follow the positive steps listed above you will see results.
One important additional point you may like to note is that NEVER believe in the promises made by these credit repair agencies. They absolutely can not do anything which you yourself cant apart from fleecing your money. and yes there is no quick fix
Dedicated has a good solution, although I would also encourage you to cut up every card you currently own and not open any more accounts. No offense, but your history has shown that you aren’t responsible enough to use credit, so the best bet on multiple levels is to simply avoid it. You will thank yourself in the long run.
Avoid credit recovery agencies like cash loans UK suggested, they are a joke. You can do it all yourself with some self discipline and patience.
Shawn Knight’s last blog post..The Montero Is Alive!
avoid credit card reparing agencies as far as u can.