Best Answer: Steps to getting your credit straightened out.
1 - Stop using all credit cards right now (those which are still active)
2 - Go to http://www.annualcreditreport.com and pull all of your credit reports from the three agencies.
3 - Dispute items on your credit report which are charged off or delinquent. In some cases, these items disappear.
4 - From #3, then start with the collection agencies who survived that process. You should see those on there. call each one of those up and ask about a settlement amount and if paid would they delete the negative item off your credit.
5 - If #4 does not work, call the original creditor back up and work out a compromise to pay THEM directly the charges owed and advise them to remove the item off your credit report completely. Keep in mind, you can always give a collection agency 50% or more of the total debt and it will show up as a paid collection. Does not
do much to help you, but can give you bargaining power in negotiation
5 - Once you are done there, you can start over with in-house financing at a local furniture store or something. You may have to put down up to 50% on an item, but this would help having them report a good item on your credit.
6 - Also consider a secured card (one which does not charge you fees for using it). Go charge a tank of gas on your card a month and turn around and pay it off as soon as you get the bill before the due date. This will also help build good credit.
Keep in mind though, the key is to get the bad items removed off your credit report OR have them changed to positive items. As with any pay to delete agreement or other settlement offer, you must have the company or collection agency send you something in writing.
Hope that helps.
MBATXguy · 8 years ago