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Thread: How to clean up your credit

  1. #1
    God/dess virgoamm's Avatar
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    Default How to clean up your credit

    I really want to do this, but I have no idea where to even begin. My score is pathetically low, to the point where I can't even get an apartment or a car approved in my name. Over the next year, I would like to have a respectable credit score. I know AudreyLeigh and Peanut_Butter have been doing this for a bit-maybe you guys could (pretty please?) give some pointers for people like me on how to get started and what you need to do? I looked at that credit boards site and was completely lost. Advice from anyone else who has done this too would be greatly appreciated.

    Thanks!
    xoxoxoxo

  2. #2
    Banned Melonie's Avatar
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    Default Re: How to clean up your credit

    start small. build up a little bit of savings in a local bank account. apply for a secured credit card. but most important of all report your income and pay your taxes, since tax returns are the most valuable and important financial record for a self-employed person.

  3. #3
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    Default Re: How to clean up your credit

    If you're looking to clean up your credit report, read these:





    Great tips on how to start. Read the newbie sections on the credit boards. Do the basic stuff: Opt out and have the extra names/addys removed from your credit reports. Dispute any obvious mistakes. After that is when you start working on the possible mistakes/old debt and sending letters. I'll leave the details to Audrey's posts.

    I've just done that stuff, it hasn't been 30 days but my score (according to Equifax) has gone up. Baby steps.

  4. #4
    Peanut_Butter
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    Default Re: How to clean up your credit

    My biggest advice: Don't get ahead of youself. patience is key.
    DO the steps listed above, then wait for it to take affect.

    Step one: Order all 3 credit reports from the credit agencies themselves. Call them and request yoru report. You need it directly from them for the most accurate.

    Then go over your report with a fine tooth comb. Sort yoru debt first into 2 piles: medical debt and everything else. Medical debt is handled seperatly.

    Now check the date of last activity on all your debt. Check your sates Statuts of limitations for debts. it's usualyl 4 or 6 years. Now go through yoru report, everythign that is 7 years or older doesn't belong. Start there. Dispute those by sayign this account is obsolete, please remove it. Write the letter directly to the credit agency. If it's a debt on all 3 reports, send 3 letters.
    Now go through again...and now start on the debts that are not 7 years old, but are beyond the statute of limitations. Send letetrs to the credit agencies asking to verfiy that the debt is yourss.
    Dont send to many letters at once, onyl send 3 at a time. Anythign more and you'll just get flagged for frivilous disputing.

    Anythign not beyond the SOL leave alone. you dont want to wake up a sleeping dragon.

    2 thigns will happen:
    1. they cant verfiy and they will delete it.
    2. they can verify, and the won't delete it.

    If they verify it, you have a few options, but most likely, you need to ask that if you pay them they will delete it from your report. If they refuse, you can negotiate a better report, for example, accoutn closed is betetr than charge off.

    That's the quick nutshell version. please go to the credit boards for full info.

  5. #5
    God/dess virgoamm's Avatar
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    Default Re: How to clean up your credit

    Thanks so much you guys. So PB, why do you have to separate medical bills from the rest of your debt?

    I'm so happy to have a starting point. This is all new to me and very confusing, yanno? By this time next year, I'd like to have somewhat decent credit. I'm sure I'll have more questions once I get the ball rolling though.

    Thanks again.

  6. #6
    Peanut_Butter
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    Default Re: How to clean up your credit

    medical debt is handeled differently. It's pretty complicated, read the credit boards medicla debt forum. You won't understand, and will read it over and over and it's still confusing...I finally figured it out, so f you have questons, you can ask me..

    but the basic of it is...you don't dispute medical debt. there is a different proces involving the HIPAA privacy laws, and how they affect your medical debt reporting on your credit. You can use those laws to yoru advantage.

    HOWEVER. If the debt is honestly yours, ( as always, but in particular with medical debt) you must pay the debt to get the account removed.

    Basicially, you send a letter to the origional doctor. This does not apply to hospital debt, but medical bills from doctor's offices. Even if the account is turned over to a collection agency, ignore them, go stright to the doctor. Send them a letter (you can find on , along with the whole process and info) send them that letter along with yoru payment. They should remove the account for yoru report. If not...there are other channels you go through. Liek I said, it's a complicated, confusing process, so read up on it, ask questions on the medical forum of credit boards, the guy who figured all this out and developed the process is very very helpful. SO ask him questions and use the search function for any questions you might have.

    So step 1 is opt out, then send letters to all 3 credit agencies askign to delete all yrou old addresses. Be sure to send a cpy of yoru driver lisence, and 2 different utility bills to proove yoru current address. It's also helpful to get your credit report, highlight the old addresses and say they are incorrect. please delete them. here is my current accurate address.

    Wait until you get a letter back from all 3 sayign they have been deleted. Do not g any further until this step is done. it's important.
    In the meantime, youcan start going over your report and sorting the info like I said. Get all prepared and ready to go once the addresses are gone.

    Filing and organization is very very important. Buy a special calender for this so you can wrie down the date of letetrs you sent out because you need to knwo when 30 days has passed for each letter.

    personally, I bought file folders and made a folder for each debt. That way, when I send a letter, I copy it first, put it in the folder. when i get a responce, it goes in that folder. when the account is deleted, I close the folde and put it away.

    Old accounts that were deleted can reappear later. so save yoru files, you may need them later if thigns reappear you can get it deleted again.

    Copy all letters and save yrou copy before sending it out. You need a paper trail.

    also, like Melonie said, you do need to be building up good credit as well. Get a secured card.Pay your bills on time and early. don't use to much credit. keep your credit cards under about 20% of the limit. So if your card is $1,000 limit, dont charge more than $200. Ideally, pay it off in full each month. be up with your taxes., all that good stuff.

    most important points: organization, paper trail, patience, and honesty.
    If the bill is yours, dont say it isn't. Don't lie. No need to. Research credit boards for info on what you can dispute and how, but never ever lie. There are legal ways to do this honestly.

    ps...good luck. It's vey fun and motivating and rewarding to see results, even little ones. it feels good to take control and make good changes.

  7. #7
    Veteran Member julzgulz's Avatar
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    Default Re: How to clean up your credit

    I have a problem with this as well. I am looking to get it all cleaned up and paid off in a year. My major concern is that they blow up my cell phone, each collection agency calls me literally 3 times each a day. I end up with around 15 calls from collection agencies at the end of the day. I do not speak to these people, and now they are calling my relatives. I have not spoken to my relatives in 14 years, and a few months ago I was myspaced by a cousin telling me about the calls. Is there a way to stop that?

    Also I paid off one debt in January. The company called me and claimed to be an attorneys office saying I was going to have to go to court. They agreed to settle it for 1/2 the amount. Now I am being charged for the other 1/2 of it even though I was told it was settled.
    “I am good, but not an angel. I do sin, but I am not the devil. I am just a small girl in a big world trying to find someone to love.”
    ― Marilyn Monroe



  8. #8
    AudreyLeigh
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    Default Re: How to clean up your credit

    Quote Originally Posted by Peanut_Butter View Post

    2 thigns will happen:
    1. they cant verfiy and they will delete it.
    2. they can verify, and the won't delete it.
    You forgot one thing.

    3. They cant verify and they won't delete it.



    Thats my problem. OR theyre using bs as "verification". Like a piece of paper they print on their letterhead stating they bought the account and you owe them with no proof they bought/own the account.

    Thats when the big fight is on.

  9. #9
    AudreyLeigh
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    Default Re: How to clean up your credit

    Quote Originally Posted by julzgulz View Post
    I have a problem with this as well. I am looking to get it all cleaned up and paid off in a year. My major concern is that they blow up my cell phone, each collection agency calls me literally 3 times each a day. I end up with around 15 calls from collection agencies at the end of the day. I do not speak to these people, and now they are calling my relatives. I have not spoken to my relatives in 14 years, and a few months ago I was myspaced by a cousin telling me about the calls. Is there a way to stop that?

    Also I paid off one debt in January. The company called me and claimed to be an attorneys office saying I was going to have to go to court. They agreed to settle it for 1/2 the amount. Now I am being charged for the other 1/2 of it even though I was told it was settled.
    Last thing you want to do it PAY a collection agency.

    You need to send each and every collection agency one of these CMRRR (certified mail, return receipt)

  10. #10
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    Default Re: How to clean up your credit

    How is everybody doing with this? I've finally gotten my name changed in two out of three CRAs! Just waiting to hear from the other one. I got some debts cleared off of Equifax. Once I hear about the other CRA I'm going to go to work on my medical debt (looks like several were sold & resold, making it look like I have 3x as much as I do!). The only weird thing is I did the opt-out, and I got my first unsolicited credit card thing in YEARS, just the other day. Weird.

  11. #11
    AudreyLeigh
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    Default Re: How to clean up your credit

    Im done with TU and EQ. Theres a couple things left but theyre due to fall off in a couple years and I cant get them to budge. IIB so no biggie.

    TU even removed a paid collection I didnt dispute (no complaining here!) Wish EQ and EX would follow suit!

    Finally got the fraudulent collection off. PITA.

    Got another paid collection off because it was paid in 2003 and the gas company decided to update it to 120 days late in April 2008. I pitched a bitch to the collections supervisor at the gas company... gone a week later (I asked for it to be fixed and they just deleted it)

    I still have to get the judgment of EX - it was included in my bankruptcy so it shouldnt be on my report anymore.

    Still have to file fraud affidavits with ChexSystems and Telechek. Ive been busy and havent gotten around to it. Its actually last on my list since Im not looking to open any bank accounts anytime soon.

    Now all I need to do is wait for my new credit accounts age so I can reach the 700s. Not far now...

  12. #12
    AudreyLeigh
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    Default Re: How to clean up your credit

    I just got investigation results.

    Judgment Deleted. and I got a Carnival Sea Miles CC - finally something where the limit doesnt cap at $3,500.

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