Everyone Can Fix Their Own Credit or Increase Their Credit Scores Strategically. Credit Repair Agents like myself are just here for those that don't have the time. Here's How:
Take time to review your Credit Report thoroughly. Pay attention to the last date an account was reported. Pay attention to how many collection agencies have bought and sold your delinquent account. Look at how long this account has been in collections. After 7 years, collection accounts can fall off or can be requested to be removed.
1. Write letters to each Credit Bureau asking to remove old collection accounts. You can also request to have payment histories updated on active accounts. Sometimes this works, sometimes it doesn't but when it does, your score goes up!
2. For those Accounts that did not get removed, call the collector and negotiate a payment arrangement or to have the balance reduced.
3. Use your credit card to pay your monthly bills and the use your paycheck to pay your credit card back every month. This creates positive activity on your debt. Shows discipline and good credit behavior.
4. Get your credit card balances down below 30% of your Card's limit. If your limit is $6000, your balance by the end of the month should be no higher than $1800. So making a lump-sum payment on that high balance will shoot your score up over 20 points! To find out what your 30% is, multiply your card's limit by .30 ($6000 x .30 = $1800)
5. If you have no Credit, get a secured credit card. This is where you are your own lender. You put your own cash on a card thats approved and issued by a Bank. You run that card to pay for bills/shopping and pay it back every month until you have created credit history.
For those who have maxed out all options for good credit. It is time for you to lay low for a while, stop applying for credit and live within your means. Stock up your money and then start paying off your bad debt as soon as you can. But don't stress about it in the process. Its not the end of the world! It won't haunt you for life...if anything, its a great learning lesson on how to manage your money the next time around.