Terrible Credit Report. Lots of Charge Offs. What is the best way to reverse the damage and fix my bad credit?

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  • Terrible Credit Report. Lots of Charge Offs. What is the best way to reverse the damage and fix my bad credit?


Answer #1 | 20/12 2013 02:07
I would start with the bills in collections and make a plan to pay them off, concentrate on the smallest one, then the next then the largest, They are not that much, if it were me, I would then start paying back the ones that were charged off starting with the most recent, it will be a lesson you won't forget, it is going to take some time, but since you received the benefit of what was bought you should pay for it. Meanwhile see if you can build your savings as well. it is going to take you probably 2 years of this to improve your score, hopefully over time your salaries increase, Kudos for getting on track, now fix the past mistakes. Good luck
Answer #2 | 20/12 2013 02:38
Unless you can get a family member to payoff your debts, there is nothing else you can do but wait it out and let it fall off by 2017. Even if they allow you to make minimum payments, it will not change the status of the accounts in question
Answer #3 | 20/12 2013 06:54
- Paying back charge offs will not fix your credit. The damage is done. If you pay a charge off, your credit report gets updated to Paid with a $0 balance, but the charge off status remains. - Only consider paying these charge offs if you can afford to settle for less all at once. Do not waste your time with payment plans. Making monthly payments on already closed/defaulted credit cards will not fix your credit and payment plans usually do not turn out well. If you don't have the money to settle these accounts all at once, then don't waste your time contacting creditors/debt collectors. How to pay collection accounts: - Consider getting a secured credit card and use that to build your credit rating. This is where you put up a security deposit like $500 and you get a line of credit equal to that. Most people can get these cards and they are the best (and perhaps the only way) for those with bad credit or no credit history to establish a good credit history.
Answer #4 | 20/12 2013 06:55
There is no way to "reverse" it. You can improve it going forward. Refinancing a car loan is a bad idea. See if you can pay off some of the old debts, and thus they will show as paid on your report and this will help.

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