Very Bad Credit History - Where do I start...

[Anonymous]

Help Please!!! On my 30th B-Day I vowed to clean up my act and get on the road to credit recovery. I had a fear of opening mail for about 5 years because I knew there would just be bills in there that I could not pay. Thus my credit reflects just that. My score is in the very low 500 and I have one or more of the following on my report:

Medical Charges Off

Credit Card Charge Off

Tax Lien (Although I have not paid the balance in full)

Judgment

I am not running from the responsibility of paying things off…I just don’t know where to start. I know paying them is the ethical thing to do…..but will it help my score at all or would it be better to just concentrate on building credit and being responsible from this day forward.

[Anonymous]

Have you pulled all 3 CRs? You can do it once FOC every 12 months at www.annualcreditreport.com You can request TU and EX online, but get a paper copy of EQ. They aren't entirely web literate.

[Anonymous]

I have pulled the reports and tried to clean up the things that should no longer be reporting and the stuff that is inaccurate. My concern is what do I do about the charge offs. Will paying them help my score at all. What is the best way to mend and build my credit score? I know there is not an overnight fix. Is there an agency that can guide me through this process? The only companies I come across are the ones that are repair and rip off companies.

[Neblett]

As Noah said, get your 3 credit reports first and foremost.  Knowledge is power.

First step is going through the reports with a fine-tooth comb and making sure everything is accurate (balances, account dates, creditors, etc.).  If not, then begin by disputing all incorrect information, especially if there are accounts that do not belong to you or if there are duplicate accounts or if there are innacurate balances or pay statuses.

Once everything is correct, then you can begin some strategizing about how to help yourself recover.

I've made a lot of progress in 2 months, with the help of a lot of good advice (Thanks, Tuscani!) from this list.

[Eric958]

Falcon 32 as of today you are the credit repair company! Their are many here that were in your shoes only months ago! Read thru the forums, there is a vast amount of great information here. Last but not least there are some truly good ppl here who will respond to your questions and will help you to the best of their ability. Their very knowledgeable concerning credit management. I won't name names so that I won't offend anyone by leaving their name out. GOOD LUCK!! Stay Focus & Make It Happen!!!!! E!

[Anonymous]

Before you go paying anything off, assess what is going to drop from your CRs and when. Paper and online copies from at least some of the CRAs on some TLs will show something to the effect of "Scheduled to appear until <month> <year>". If it's going to drop off in July, there might be other things worth worrying about.

Also, you want to find out the SOL on everything. SOL depends upon the state where you reside. Once you're out from under the SOL, you have more leverage to negotiate a PFD. If you're not out from under the SOL, some creditors (Cap 1 specificially) have a nasty habit of suing within 6 months of SOL.

Virtually any company, whether a debt management company or a credit repair organization, will charge you to do things you could do yourself. I stand corrected. They will OVERCHARGE you.