I need advice to fix old credits without going through credit solutions?
Step by Step system for repairing bad credit fast no matter what your credit situation may be
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Assuming you are referring to defaulted accounts on your credit report, get a copy of your credit report (AnnualCreditReport.com) and start working on settling the derogatory items one at a time. Start with the newest and work back to the oldest.
If you have single entry items like medical and utility bills, get a pay for delete agreement — you pay $x and they delete the item from your file. This doesn’t work for regularly reported items like credit cards as the collection agency can only remove what they report. The original creditor’s charge off would remain.
If the debt is over 3 years old, offer 25%; 2 or 3 years old, offer 50%; less than 2, offer 75%. Lump sum gets the best deals. Payment plans have to be short term. Get any settlement agreement in writing and do not give the collector direct access to your bank account.
Paying off old debt will not improve your score (unless you get a pay for delete). The damage is already done and the derogatory will take the balance of the 7 year reporting period to age off. However, creditors look at your whole report, not just the score. Paid old debt always looks better than unpaid.
July 2nd, 2009 at 12:27 pm