OK - so you're in for a bit of work.
1. Find out the SOL (statute of limitations) for debt collection in your state. You can still be sued for debt if its within the SOL.
2. Get paper copies of all 3 reports.
Non-Medical Collection Items
*Do a search in fico forums for "medical collections" for tips in dealing with those.
I'm assuming you've already been contacted by these collection agencies and never responded, which means you've lost your right to request debt validation or dispute ownership of the debt (you have to do this within 30 days of notification from the debt collector).
---- Anything outside of SOL: start disputing with all three bureaus to verify the debt. There's a chance the collection agency will not be able to verify, or won't respond, and the item will be deleted.
- If the disputes come back verified, send letters to the collection agencies asking for a pay for delete (aka, PFD, an agreement that if you pay in full, they will delete from your reports). If they refuse, don't pay anything. If they agree, get it in writing. Paid and unpaid collections hurt your credit score the same.
---- Anything within SOL:
- Contact the original creditors and confirm that the debt has been sold to the collection agency. Sometimes, the debt has only been assigned for collection, but the original creditor still owns the debt. If the original creditor still owns the debt, see if you can pay them directly. If so, ask them to recall the collection and then you can request the collection agency delete the item from your reports.
-IF the debt has, in fact, been sold to the collection agency:
-contact them in writing and offer a PFD. If they agree, great, get it in writing. If they refuse, then go ahead and settle and pay the debt so they don't sue you. The last thing you need is a judgement on your reports.
Charge Offs
Determine if you have a charge-off and collection showing for the same account. If so, determine if the debt was sold or just assigned; if just assigned, deal with the original creditor first. If sold - deal with the collection agency as stated above.
Scour your paper reports and look for any errors or inaccurate information you can find. If you find anything, dispute it with the original creditor (you can find example 623 letters by googling):
FCRA Section 623(a)(8) allows the consumer to follow up with the data furnisher if they believe that the previously disputed account is innacurate by requesting an investigation be done by the furnisher to prove the accuracy of what has been reported. Do this by mail, and send it certified USPS. The furnisher has 30 days to conduct and complete an investigation and notify the consumer of the results. If the furnisher does not comply, they may be fined and must remove the tradeline. If the furnisher finds the tradelines are inaccurate, they must update immediately, or again, be fined and remove the tradeline. If the furnisher responds that the tradeline is reported accuratately and you have proof it is inaccurate, you may now file a complaint and send an intent to sue letter with proof they are knowingly furnishing inaccurate information. You can offer to settle for a deletion.
If there are no errors and the debts have not yet been sold to a collection agency, then they are still likely reporting a balance on your reports, which is increasing your overall utilization. You need to pay these - either settle or pay in full - so contact the creditors. Once the account is paid, ask that they report it as paid / charged-off. The most important thing is the balance will be reduced to zero and the creditor will no longer update the account data - allowing the account to age and lessen the ding to your score. You'll probably see a score boost for the lowered utilization. If you can't pay them all at once, then pay the ones with the highest utilization ratio first. utilization = balance / credit limit. Anything over 30% is considered high.
Car Loan
You're best bet here are goodwill letters. Find the contact information for executives within the company and start sending letters basically apologizing for your defaults and expressing your desire to do better. You are relying on someone with a soft heart to agree to remove those late payment indicators from your reports. Don't give up on this. If they refuse the first time, wait a couple of months and try again. You only need one softy to feel sorry for you. Be honest in your letter and take responsiblity.
Positive Account Maintenance
Do not app for any new credit during this repair process. Maintain the 3 cards you have. Keep low overall utilization. Pay two cards down to zero before their statements cut so they report zero on your reports, and pay down the third card so that it reports a balance of less than 8.9%. Do this religiously to squeeze out the max amount of fico points.
Be patient. This will take some time.
Keep records of EVERYTHING.
Learn how FICO works.
Read FCRA rules so you know your rights.
Ask questions if you get stuck or are unsure about anything.
Good luck!
