BEST WAY TO CLEAN UP BAD CREDIT??

[Mr. Nice Guy]

...I'm not really sure what you're talking about then.

The best way to use a credit card is to use it for all your normal expenses (groceries, gas, cable/internet bill, etc); wait until your receive your bill, then pay it off in full. That way, you show utilization but never carry a balance or pay any interest. You can also get cash back if you have a rewards card

The exception to that is if you're normal expenses aren't high enough to proportionally show credit utilization. In that case you would need to carry some balance on the card and then pay off the new portion every month.

I used to pay off my bill every month but I got dinged for not utilizing available credit.

 

[Foul Mouth]

Never settle a debt with a debt collector dollar for dollar. Negotiate that bitch for pennies on the dollar, they bought the debt from the lender for pennies on the dollar.

negotiating is called settling/settlement. settling will save you money in the short run, but its not the same as "paying in full" in regards to your credit.
and yes the collection agency bought your debt for shit.

one thing you can do when settling, that may not fuck your credit as much, is e-mail/fax them a letter saying if you pay (even settle) they need to stop reporting your debt to the credit bureau's. they dont have to bite, and neither do you. its your credit/finances/life. the debt collector can suck dicks, but that wont help your credit/finances/life.

 

[Fucky McFuckerson]

negotiating is called settling/settlement. settling will save you money in the short run, but its not the same as "paying in full" in regards to your credit.

Also, not all agencies buy debt. We dont. We have contracts, legally binding, with our clients that outlines what happens when they hand over an account to be collected including fees, commission, rate, legal fees (if they go that route), and signatures from both parties.

 

[Foul Mouth]

Also, not all agencies buy debt. We dont. We have contracts, legally binding, with our clients that outlines what happens when they hand over an account to be collected including fees, commission, rate, legal fees (if they go that route), and signatures from both parties.

word up.

and anybody who got shit in collections, it may be smart to brush up on the FDCPA. if a collector is calling you, thats most likely your bad and your fault. but some individuals and some agencies as a whole are fucks and will take advantage of you if your ignorant. they all know what they can and cant do by law, but they also know that most likely, you dont know the law. from my personal experience, more times than not, the collector is breaking laws. once they fuck up, you got way more power then you think. enough power to erase that debt if you know how to work it.

 

[Fucky McFuckerson]

enough power to erase that debt if you know how to work it.

This is very true. I did this with past debts and got huge debts erased. It really also depends on what kind of debt it is as well. Lots of call centers who employ losers and 18 year old's dont really give that much of a shit becuase turnover rate is high and they literally buy debt for pennies on the dollar. They can afford to drop of debt if shady acts are being had.

Here are some links:

Fair Debt Collection Practices Act | Federal Trade Commission

The Association of Credit and Collection Professionals, comprehensive, knowledge-based resource for success in the credit and collection industry. - ACA International

CFPB > Consumer Financial Protection Bureau

And very important for all to read regarding credit and credit reporting:

Fair Credit Reporting Act | Federal Trade Commission

 

[RAVAGE]

I need to work on my credit last time i checked it was at 555 im sure it got worse the last year tho.

 

[timewilltellu1]

Also, if you think budgeting is a pain, you should check out YNAB or mint.com. There are many tools to make it easy.

https://www.youneedabudget.com
https://www.mint.com

http://www.yodlee.com/
http://www.creditsesame.com
http://www.creditkarma.com/
www.annualcreditreport.com
http://www.freecreditreport.com/

to add

 

[Coach E. No]

My credit was super wack for a few years after I was damn near homeless living in San Diego. I got married awhile later and her credit was wack too. Took several years to get back on track but I'm very blessed to be in the situation I'm in. I have debts now because I bought a house and we financed 2 older cars, but it's much more manageable than my debt was before that I accumulated just trying to survive.

 

[$ileNt_eNe_ATL]

I had horrible credit.. instead of paying those foos at the collection agencies off.. I decided I would get a secure credit card from my bank and buy a truck and just keep up with the payments.. After 2 years I finally have over a 600 and start getting offers for shit in the mail.. I watch my shit closely .. This friday i get an alert that fucking Tmobile just sent me to collections from 2010!!! Im so pissed right now. brought my score down to a 568 …. Can they do that? from 4 years ago?