Next Step to Repair Credit.

My next step to repair my credit is to select the best way to handle some expired credit cards on my report. I currently have 3 credit cards, with a balence of at least $500 to $900 on average for all of them. The cards are listed as ChargeOffs on my report. The only consistant charge I have on my report at this time is my car payments (which has been late over the last 7-8 payments)Obviously I want to get them off, but will paying them outright or through a payment plan be better? Or should I try to bargin for a lower amount? Im trying to get my credit fixed as fast as possible so as to apply for a apartment lease in Nov, and _MAYBE_ a "new" used car & finance note. :sigh:

So far my credit score is EQ-510, TU-477 (the worst bescause it has so many errors & stuff that not even on my ofther credit reports.) and EX-547, which gives me a median of 511. I know its bad, but my goal is to at least get it to 625 or better, so I'll have a fighting chance with credit.

My last problem is to remove derogatory public remarks from my record, all of them are paid, but it doesn't look good siiting there: Can I request to have them taken off or do I have to wait a set time limit?

Hi waynebx2002

It's nice to have you back in the forums.

As you are planning to buy some asset in the month of November, it will be a good job if you can clear the debt as fast as possible.

"charged off" account leaves a very bad impact on the credit report and it is very necessary to get it erased from the credit file.

You need to negotiate at the best with your creditors in case of your car payment. It is they who will report to the credit bureaus. Make sure that they report your accounts as "Paid in Full" or "Paid as agreed". Never let them report your accounts as "settled," "paid derogatory," "paid charge-off" as they will hurt your score largely.

After you have paid your creditors in full, you will most likely get your credit repaired and have improved scores.

Now, as you see your credit score is much lower than desired, you should work hard to achieve close to 700 or 720. Please see if you can repair the following from your credit report to increase your scores.

Check for incorrect entries - It is mandatory to check your credit report for any mistakes from all the three credit reporting agencies. You can review your report for at least once in a year as well as several months before you apply for a loan.

Timely payments It will be considered a very good practice if you always pay your bills on time. Your prompt payments will put you in a much comfortable position before you apply for a loan. This point is emphasized because a late or missed payment just before applying for a loan lowers the credit score and has worse impact than a missed payment five years ago.

Bring credit balance to the minimum - It is always beneficial to reduce the credit card balances as much as possible. The FICO scores get affected due to how much money you owe on some cards relative to your total credit limit. Credit scores are seen improving if the balances are kept below 25% of the credit card limit.

Don't linger your payments It is suggested not to increase the ratio by closing an account and transferring the remaining balance to another account since the ratio of the credit card balance is linked to the credit limit. Doing this will lower the credit score which should not be generally done while you are on your way to increase your credit score.

Unused accounts to be kept active - While you are applying for a loan, it is suggested not to close any unused account. At the same time, it is suggested not to open a new account also during that time. It is said because if you are having a short credit history or less number of accounts, the credit score gets lowered when a new account is opened as there is no proven track record of it.

Since your credit report is showing derogative remarks and you believe that they all have been paid, you can dispute with the credit bureaus to remove them from your credit report. Please send them copies of those accounts that you ought to dispute. They will investigate and update your credit report. Hopefully, you will be able to see some good work done in your credit report due to your hard work.

Regards
Roxette

Thats The plan Roxette...So I will have start slowly...First thing, would I be able to remove deregotory notations from my credit report...they are for accounts that i made full payment for.

Hi waynebx2002

Of course, you will be able to remove derogatory notations from your credit report by filing a dispute with the credit bureaus. You can produce the copies of the accounts showing that you made the payments to your creditors and the credit bureaus are required to remove it from your file.

The credit bureaus will conduct an investigation with the information provider of your accounts and check if your dispute is valid. After completing the investigation and rectifying the error, they will send you a free copy of your credit report omitting the derogatory remarks.

However, at any point during the investigation, if they feel that your dispute is not valid, they are required to produce proof furnishing the details of the said account.

Your proof of the payment is the most important thing to support your claim and you are likely to get the derogatory remarks removed from your credit report soon.

Meanwhile, you can also send a letter to the creditor specifying to update the information with the credit bureaus. It is hurting your credit file and it needs to be removed.

Please let me know the course of your action.

Regards
Roxette