How do I fix my credit?

[asmithz]

If my credit already went into collections, and I Have the money to pay it off, how do I fix it. I am told that paying it off won't fix it, is that true?

[Skiz]

Paying a debt that has proceeded to collections will not remove it from your credit report, but it will show that that debt is not outstanding and has been paid in full.

That can make a big difference depending on the amount and will always affect the score.

[Alien5]

i read in an ebook i stole from kazza about how to get good credit scores, one of the ways is to steal the identity of a dead person by going go to a graveyard, pick a name of a person over 18/21 or something, then get their birth certificate and create their identity. It sounds well dodgy, you should try it.

[Sanka113]

That works too lol. I hope you get your finances straight. You're to young to ruin your credit like this.

[Something Else]

You're to young to ruin your credit like this.

How old should you be. :unsure:

[Alien5]

the trick is to not ask for more credit than you can afford to pay off...but its easyer said than done.

[asmithz]

Paying a debt that has proceeded to collections will not remove it from your credit report, but it will show that that debt is not outstanding and has been paid in full.

That can make a big difference depending on the amount and will always affect the score.

Well I guess the only thing I can do right now is pay it all off in full :dabs:
You think I'd be able to get another credit card after so I can start building it up the right way?

[Skiz]

Paying a debt that has proceeded to collections will not remove it from your credit report, but it will show that that debt is not outstanding and has been paid in full.

That can make a big difference depending on the amount and will always affect the score.

Well I guess the only thing I can do right now is pay it all off in full :dabs:
You think I'd be able to get another credit card after so I can start building it up the right way?

If you're approved, sure. If not, start out with minor credit cards for department stores and gas stations. I had some credit issues during college and thats what I did to recover.

Also, make sure that every credit card you own gets maxed out at least one time per year - do it on purpose. Simply owning the card does very little. Your credit score will show what the max balance for the card has been in the previous 12 months. If you only own the card an rarely use it and they see that the max balance for any one billing period was $12, it will be obvious that you don't use it. If you have a $2,000 spending limit, max it out once a year.

[bornwithnoname]

Well I guess the only thing I can do right now is pay it all off in full :dabs:
You think I'd be able to get another credit card after so I can start building it up the right way?

If you're approved, sure. If not, start out with minor credit cards for department stores and gas stations. I had some credit issues during college and thats what I did to recover.

Also, make sure that every credit card you own gets maxed out at least one time per year - do it on purpose. Simply owning the card does very little. Your credit score will show what the max balance for the card has been in the previous 12 months. If you only own the card an rarely use it and they see that the max balance for any one billing period was $12, it will be obvious that you don't use it. If you have a $2,000 spending limit, max it out once a year.

Skizo you work the credit card company or something. No offense meant but that is the stupidest idea I have ever heard.

What should be done is this. Tell the collection agency that you are willing to pay what is owed in full if they have the debt removed from your credit report. If they refuse tell them your not going to pay. It is in their interest for you to pay. The more you play the more they make. Removing the information from your report doesnt affect them in the least.

[zapjb]

I used to be in CC collections.

I'd ask what the principal balance is? That's the amount charged, not interest & fees. Example: acct bal $5,700 & prin bal = $3200. Pay no more than the prin bal if possible.

The more overdue an acct is (timewise) the less $ they'll take to settle it.

When you've settled on a SIF (settled in full) price. I'd make them to send you a letter saying whats agreed to. Part of that is they agree to post to all credit bureaus the acct is closed by way of SIF.

[chalice]

Or run away.

I hear Never Never Land is nice this time of year.

Did any of youse cuntz see what I did there?

[Skiz]

Skizo you work the credit card company or something. No offense meant but that is the stupidest idea I have ever heard.

It isn't a stupid idea; it's a valid way of improving your credit score. Period.

[bornwithnoname]

Skizo you work the credit card company or something. No offense meant but that is the stupidest idea I have ever heard.

It isn't a stupid idea; it's a valid way of improving your credit score. Period.

It will also keep him in debt for ever.

[Skiz]

It isn't a stupid idea; it's a valid way of improving your credit score. Period.

It will also keep him in debt for ever.

Are you going to talk out of your arse all day or post something of significance to demonstrate why proven methods and those suggested by authors of such books are completely wrong? :dabs:

No, no you aren't.

[zapjb]

I would SIF not PIF.

[Mr JP Fugley]

zapjb appears to know what she is talking about.

I'd go with the talk to the company and offer to settle in full with them removing the bad report.

The identity theft, tho' an intriguing idea, is almost certainly a criminal offence. Or indeed offences.

Skizo's idea only works if you have self discipline. Another way to do it is to make your regular payments by credit card, but clear them every month, rather than paying the minimum amount. That way you pay no interest but also keep the card active. Do not do either of these things if you do not have the discipline to pay it off in full. The temptation is to take the credit and to then spend the cash as well. That way you are left back where you started.

It strikes me that you may not be the chap for that type of thing. At least not now, you may be in the future.

[asmithz]

zapjb appears to know what she is talking about.

I'd go with the talk to the company and offer to settle in full with them removing the bad report.

The identity theft, tho' an intriguing idea, is almost certainly a criminal offence. Or indeed offences.

Skizo's idea only works if you have self discipline. Another way to do it is to make your regular payments by credit card, but clear them every month, rather than paying the minimum amount. That way you pay no interest but also keep the card active. Do not do either of these things if you do not have the discipline to pay it off in full. The temptation is to take the credit and to then spend the cash as well. That way you are left back where you started.

It strikes me that you may not be the chap for that type of thing. At least not now, you may be in the future.


I can do it now, I am really good at holding onto my money now. I made a commitment and saved the amount for my card in a month. And I have had the burden over me for over a year now. But when I decided enough was enough, I got it together, and it wasn't that hard.

[Mr JP Fugley]

That's good. If you have that discipline then you can use the card and clear it every month. Just use it up to the limit of what you can pay tho'. Don't spend money that you wouldn't normally.

A mate of mine buys everything he can on his credit card, shopping, petrol, clothes everything. Then when his pay comes in he clears it.

[Busyman™]

It will also keep him in debt for ever.

Are you going to talk out of your arse all day or post something of significance to demonstrate why proven methods and those suggested by authors of such books are completely wrong? :dabs:

No, no you aren't.

Actually Skiz, that is a dumb idea and you leave out too much.

Increasing your credit worthiness while putting yourself in massive debt is a dumb move.

By what you say, if he has 2 $5000 limit cards, he should max them out, at some point in the year, to increase his score.

What really looks good is when your the high on your card was near the limit but you have very little on it. Mortgage companies look at this favorably and scrutinize your credit more than credit card companies. It shows you can mount up a debt and get rid off it.

Having cards at high limits puts one in danger of going backward. You are also paying interest on that high ass balance.

The advantage there would be if the card is at a 0% interest rate (hopefully for a year or more). That way if he's paying this high balance, he's isn't losing money as long as he pays it off within the 0 rate period.

@asmithz - Also make sure the collection company was one of the big 3. If it wasn't, it might have just been a collection company hired by the company you were delinquent with. In those cases, many times it wasn't reported to Experian/Equifax/Trans Union. If was a credit company, it was probably reported. If was a magazine subscription, probably not.

If it was reported, the delinquency will be there for 7 years (unless the duration has changed)

[zapjb]

zapjb appears to know what she is talking about.

I'd go with the talk to the company and offer to settle in full with them removing the bad report.....
Dude I'm a dude & not mistaken for a female irl. :pinch:

And so far my solution is the best.

Whats the amount $$$ OP?

[chalice]

zapjb appears to know what she is talking about.

I'd go with the talk to the company and offer to settle in full with them removing the bad report.....
Dude I'm a dude & not mistaken for a female

She knows, you know.

[Skiz]

Are you going to talk out of your arse all day or post something of significance to demonstrate why proven methods and those suggested by authors of such books are completely wrong? :dabs:

No, no you aren't.

Actually Skiz, that is a dumb idea and you leave out too much.

Increasing your credit worthiness while putting yourself in massive debt is a dumb move.

By what you say, if he has 2 $5000 limit cards, he should max them out, at some point in the year, to increase his score.

What really looks good is when your the high on your card was near the limit but you have very little on it. Mortgage companies look at this favorably and scrutinize your credit more than credit card companies. It shows you can mount up a debt and get rid off it.

Having cards at high limits puts one in danger of going backward. You are also paying interest on that high ass balance.

The advantage there would be if the card is at a 0% interest rate (hopefully for a year or more). That way if he's paying this high balance, he's isn't losing money as long as he pays it off within the 0 rate period.

@asmithz - Also make sure the collection company was one of the big 3. If it wasn't, it might have just been a collection company hired by the company you were delinquent with. In those cases, many times it wasn't reported to Experian/Equifax/Trans Union. If was a credit company, it was probably reported. If was a magazine subscription, probably not.

If it was reported, the delinquency will be there for 7 years (unless the duration has changed)

You're saying the exact same thing as me. :dabs:

When I said to max them out, I assumed the part about not carrying the balance and immediately paying it off was implied, seeing this is a thread about fixing one's credit, not destroying it.

Yes, the purpose in doing so is just as busy stated. So long as you aren't carrying a balance on the cards (or much of one), maxing out your cards at least once per calendar year is a good thing. It represents that you have the financial income to support the charges as well as the responsibility to make the payments on time.

The result is an improved credit score.

[Busyman™]

Actually Skiz, that is a dumb idea and you leave out too much.

Increasing your credit worthiness while putting yourself in massive debt is a dumb move.

By what you say, if he has 2 $5000 limit cards, he should max them out, at some point in the year, to increase his score.

What really looks good is when your the high on your card was near the limit but you have very little on it. Mortgage companies look at this favorably and scrutinize your credit more than credit card companies. It shows you can mount up a debt and get rid off it.

Having cards at high limits puts one in danger of going backward. You are also paying interest on that high ass balance.

The advantage there would be if the card is at a 0% interest rate (hopefully for a year or more). That way if he's paying this high balance, he's isn't losing money as long as he pays it off within the 0 rate period.

@asmithz - Also make sure the collection company was one of the big 3. If it wasn't, it might have just been a collection company hired by the company you were delinquent with. In those cases, many times it wasn't reported to Experian/Equifax/Trans Union. If was a credit company, it was probably reported. If was a magazine subscription, probably not.

If it was reported, the delinquency will be there for 7 years (unless the duration has changed)

You're saying the exact same thing as me. :dabs:

When I said to max them out, I assumed the part about not carrying the balance and immediately paying it off was implied, seeing this is a thread about fixing one's credit, not destroying it.

Yes, the purpose in doing so is just as busy stated. So long as you aren't carrying a balance on the cards (or much of one), maxing out your cards at least once per calendar year is a good thing. It represents that you have the financial income to support the charges as well as the responsibility to make the payments on time.

The result is an improved credit score.

Carrying a balance doesn't destroy your credit though.

My point was that you left out too much. If you have $2000 to pay on $2000 limit credit card, then sure. However, you need to say that.

He could, like I said before, charge the $2000 on a 0% rate card, pay on it, and get the same result.