Any tips on cleaning up credit?

[1970s HeRon Flow]

take it from someone whose credit was messed up, let them old debts die, they will threaten you with fake law suits, with a 70% deduction etc., just rip up them letters, just wait the 7 years till its off your record

the thing is even paying a dime will reset it, at 18 i got my first cell phone and well my bill got to 500 and i never paid, years went buy, it got up to like 1,500 with interests and all, got threatened about law suits, kept calling my house etc., neer budged, when i was 25 ish was gone, credit is now over 700


DONT PAY A DIME!!!!!!

Help me out breh,at 18 someone did identity fraud on me with a debit card,spent I forgot how much at a Lowe's in sum far ass city,I was with Washington mutual at the time,made a claim,they investegated,first they credited the money back,then took it back for further investigation,then gave it back,so I took it out n said fukk em,then they asked for it back,never went back,knew me credit turned to ads cuz of that,then got hit from collection agency once WAMU went bankrupt,been ignoring it,yacht been able to establish credit cuz of $242 owed so I been straight cash ever since,hasn't really affected me except for wanting to take out a car n not get hit wit high interest,so yea,it happend at 18,um bout to be 25 this april,what do u reccomend I do?

 

[Rekkapryde]

a 800 credit score is nearly impossible and about 9-13% of people will ever reach that feat.

810
806
798





Sent from my GNex Sucka!

 

[Urbanmiracle]

So I shouldn't pay off my debt? I'm confused

 

[NZA]

the more available yet unused credit you have, the better.

the only people who shouldnt pay their debts are grifters, sheisters, gypsies, irish travelers, etc.

or, if you have already gone a really long time without paying, then you could try to wait them out so that your credit will reset. it just depends on how patient you are.

there is a caveat to that, your oldest lines of credit will give the best scores if they are in good standing.

 

[theworldismine13]

So I shouldn't pay off my debt? I'm confused

it depends what debt you are talking about, if its old debt with a collection and you are not planning anything big you can let it die because things fall off after 7 years, if its a new collection you should probably pay it off but get a deal to have the collection removed

 

[Midwest]

So I shouldn't pay off my debt? I'm confused

Bro, The rule of thumb is to pay them off. They are red/black marks on your credit. Creditors can and will judge you on these whether you let them sit or not. But you will get a better chance of getting a line of credit on an account if you paid off that red/black account no matter how old it is. Plus your credit will move a lot quickly with those accounts closed in good standing. They will still show on your credit for a few years but they will also show they've been paid off. This is the best thing you can do in life is to get your credit together. I have over 50k in cash and that shyt does not mean shyt in this lifetime. But when you have a 700+ credit score the stars are the limit. You will be able to walk in any where and buy anything you want. start now!!!!!!!

 

[Hood Critic]

I would recommend using a credit repair agency, some people say not to cuz you can do what they do yourself, all they do is dispute your stuff, but it takes a lot of discipline to do it properly so I personally suggest paying for it

Credit Repair Services & Pay for Delete | Top Credit Repair Company

First of all, do not fukking do THIS! Absolute waste of money and in some cases this can count negatively towards your FICO. They can't do anything that you can't do for yourself.

Most of the advice in here was decent. Be cautious:

- disputing old debts because if the creditor responds to the credit bureau, this WILL reset the 7 years. Before you do this, you need to be prepared to pay said dispute or ride out the 7 and a half years.

- do NOT deal with ANY collection agencies. If you decide to pay off a debt deal only with the original creditor, they will not turn down your money. Just be certain to obtain in writing that they will remove the negative rating(s) after the debt has been settled/paid-off.

- your first goal with credit card debt is to get all balances in the 15-20% of your limit range. You want to carry a balance but not a large one. When you get your finances in order, carry no more than 10-15% of your balance monthly.

- continue or start to pay ALL of your bills on time, do not fall into the trap of trying to pay off previous debt and get behind on current obligations. Rent/Mortgage then car note, should always be your first priorities, even when your money is funny.

- if you have to pay the minimum on your cards, do so. It does look a lot better if you can pay the minimum + at least 50% of the minimum but again, don't get behind trying to pay off old debt. Conventional wisdom says pay highest interest rate cards first but it'll probably work out better if you tackle the lowest balances first.

- lastly, be patient! It's going to take you at least a year to 18 months to get back on track. Just focus on staying on track.

 

[theworldismine13]

First of all, do not fukking do THIS! Absolute waste of money and in some cases this can count negatively towards your FICO. They can't do anything that you can't do for yourself.

Most of the advice in here was decent. Be cautious:

- disputing old debts because if the creditor responds to the credit bureau, this WILL reset the 7 years. Before you do this, you need to be prepared to pay said dispute or ride out the 7 and a half years.

- do NOT deal with ANY collection agencies. If you decide to pay off a debt deal only with the original creditor, they will not turn down your money. Just be certain to obtain in writing that they will remove the negative rating(s) after the debt has been settled/paid-off.

- your first goal with credit card debt is to get all balances in the 15-20% of your limit range. You want to carry a balance but not a large one. When you get your finances in order, carry no more than 10-15% of your balance monthly.

- continue or start to pay ALL of your bills on time, do not fall into the trap of trying to pay off previous debt and get behind on current obligations. Rent/Mortgage then car note, should always be your first priorities, even when your money is funny.

- if you have to pay the minimum on your cards, do so. It does look a lot better if you can pay the minimum + at least 50% of the minimum but again, don't get behind trying to pay off old debt. Conventional wisdom says pay highest interest rate cards first but it'll probably work out better if you tackle the lowest balances first.

- lastly, be patient! It's going to take you at least a year to 18 months to get back on track. Just focus on staying on track.

Like I said, anybody can do it themselves but it takes discipline, so it's a matter of convenience, it's kinda like changing your oil, it's really about how much time you are willing to spend

 

[Hood Critic]

Like I said, anybody can do it themselves but it takes discipline, so it's a matter of convenience, it's kinda like changing your oil, it's really about how much time you are willing to spend

It's not about discipline, it's about the potential damaging affect a service like the one you're suggesting can also have on your credit.

http://money.msn.com/saving-money-tips/post.aspx?post=a5ff0b95-36b7-416b-bce3-8d4bbe31c601

 

[Brown_Pride]

If its charged off, fukk it, don't pay it….

If you got some new debts that's currently in collections, only pay them if they will delete them off your record after the terms of agreement are met. Make sure you get this in writing too.

Get a secured credit card and pay most of the amount off every month and let a lil of the remainder tip over into the next billing cycle…….

For example, if you got a 500 dollar credit limit, charge 100 dollars worth in a month and immediately apply 90 dollars to the bill and let the remaining 10 roll over and collect interest….

Even if you're getting your head knocked off on the interest charges, it will be an insignificant amount on 10 dollars….

This shows the credit card company can make money off of you and will increase your score and your credit limit…

Your credit score is based on the likelihood that companies can make money off of you..No more or less…

If you pay your debt off in full every month and don't accrue interest, creditors see you as a dead fish and will do you no favors via your credit line or score……

The trick is to accrue the least amount of interest possible that will further your cause

THIS right here.
Back in early 2002 i got laid off then got in an accident. Long story short ended up jacking my credit the fuk up and was homeless for a spell.

Good news is after so long things get charged off, bad news is you gotta wait a long time in some cases for things to clear off.

I negotiated a lot of my debt but the medical shyt is killing me till this day over 120k in hospital bills right now on my credit. I'm waiting till the end of this year to file bankruptcy TBH. Other than that everything else I've paid off or negotiated down.

Most companies sell your account to collection agencies, the older the shyt is the more eager they are to negotiate.

When i got injured i was renting an apartment, had to let it go with 2 months on the lease. They wanted 2.4k + some. I told them to go fuk themselves. 4 years later they settled for $500 bucks. It jacked my score for a bit but in time it healed.

Get a secured card and DO NOT PAY IT OFF COMPLETELY. Credit companies don't want to know you can pay it off, they want to know that you can keep it open.

Also when you pull your credit it doesn't hurt your score anymore, Credit companies can distinguish WHY your credit is being pulled.

 

[theworldismine13]

It's not about discipline, it's about the potential damaging affect a service like the one you're suggesting can also have on your credit.

Don't fall for credit repair offers- MSN Money

The one I'm suggesting is legit becuase I have used it and I'm satisfied with their services, they handled all parts of my credit, from dealing with creditors and they got stuff off

I agree you can do it yourself but I just didn't feel like it, I personally thought it was worth paying for, but that's just me

 

[FAH1223]

brehs, my parents got underwater on the house. they are short selling it for $455k bank approved and they owed $580k

what will happen to the difference? will it be forgiven? i heard about that being taxable income

 

[tru_m.a.c]

I admire the humility in this thread

I still don't get this 7yrs shyt. I just read up on it and its mind blowing to me. I always thought all debts were permanent.

Most negative information is required to drop off your credit report after seven years. One exception is the credit history associated with a Chapter 7 bankruptcy filing. The listing of a judgment can also sometimes extend beyond the seven-year horizon.

The FTC Facts for Consumers publication "Building a Better Credit Report" puts a finer point on the timelines:

When negative information in your report is accurate, only the passage of time can assure its removal. A consumer reporting company can report most accurate negative information for seven years and bankruptcy information for 10 years. Information about an unpaid judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer. There is no time limit on reporting information about criminal convictions; information reported in response to your application for a job that pays more than $75,000 a year; and information reported because you've applied for more than $150,000 worth of credit or life insurance. There is a standard method for calculating the seven-year reporting period. Generally, the period runs from the date that the event took place.

Read more: Credit damage may last beyond 7 years
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[Brown_Pride]

I admire the humility in this thread

I still don't get this 7yrs shyt. I just read up on it and its mind blowing to me. I always thought all debts were permanent.

nah most companies will eventuall write them off. What's killer is the Factoring. A loan you defaulted on in 2000 could get sold in 2006 (a year before it might fall off) well it's NEW again. Clock resets.

At least that's how I believe it works. I never was able to get a solid answer from transunion on this but from what I saw on my own credit it played out like that.

 

[MikelArteta]

nah most companies will eventuall write them off. What's killer is the Factoring. A loan you defaulted on in 2000 could get sold in 2006 (a year before it might fall off) well it's NEW again. Clock resets.

At least that's how I believe it works. I never was able to get a solid answer from transunion on this but from what I saw on my own credit it played out like that.

nope

its becomes new again when you pay a dime, which is why say a cllection agency will call you and be like you can settle this 6,000 loan for 2,000 and your like that sounds like a sweet deal but i dont have 2k, oh we can work out a payment plan for you just 25 a month, as soon as you pay that 25 it resets.

why i say dont pay a cent not even a penny


unless its student loans then your screwed