Have a unique but major credit problem. Need help

[fredofted]

I am looking for the best way to solve or at least improve my credit problem.

Basically I am not in HUGE debt,,but in severe debt,, about 5,000-6,000, but what I did to get in debt was not good. Two years ago I basically went thru a VERY tough time and gave up on everything , including my bills. Now, two years later I have come through it and am ready to turn my credit around. But at the same time it seems like I am at a point in my life where my credit is destroyed. There are a few charge offs but a few that can still be paid off I think. What is the best way to salvage what I can,,

A service? Calling myself and doing it? Please help ,, any advice is appricated.

I am now ready to fix my credit and i need help,, but need to know the best way to go.. Thank you.

PS. I have no bank account or major credit cards

[workinninetofive]

Well, you shouldn't be so hard on yourself... $5-6k of debt is not that much at all according to suze orman lol... I mean A LOT of people have 20k+ and no way of paying it.. it could be a lot worse.

I am real new to this site. But, start by ordering your credit reports. Dispute the collection accounts (CA's).. do the "not my account" and try to get those deleted. Someone here told me a paid collection is just as bad as a non paid collection. Your goal is to get them deleted period. Here is a sample ltr provided on this site:

(tweak this to suit your situation)

Your Name

123 Your Street Address

Your City, ST 01234

The Credit Bureau

Bureau Address

Anytown, State 56789

Date

Dear Credit Bureau,

This letter is a formal complaint that you are reporting inaccurate credit information.

I am very distressed that you have included the below information in my credit profile due to its damaging effects on my good credit standing. As you are no doubt aware, credit reporting laws ensure that bureaus report only accurate credit information. No doubt the inclusion of this inaccurate information is a mistake on either your or the reporting creditor's part. Because of the mistakes on my credit report, I have been wrongfully denied credit recently for a <insert credit type for which you were denied here> , which was highly embarrassing and has negatively impacted my lifestyle.

optional With the proof I'm attaching to this letter, I'm sure you'll agree it needs to be removed ASAP.

The following information therefore needs to be verified and deleted from the report as soon as possible:

CREDITOR AGENCY, acct. 123-34567-ABC. This account is not mine. Provide proof this is my account.

Please delete the above information as quickly as possible.

Sincerely,

your signature

Your Name

SSN# 123-45-6789

Attachment included.

Don't forget to provide proof if you have it! Keep a copy for your files and send the letter registered mail. Also, allow them 35 days to reply back to you.. 30 days for the dispute and 5 for mailing you a response. That is important.. don't flood them with letters.

You indicated that some might be with the original creditor (OC). You basically need to look over your reports first & see what's going on. I would order the reports (if you haven't already).. work on a dispute letter. If you have questions about the details with the OC's.. come back and ask someone here. There are a lot of people more knowlegable than me.. that is where you need to start.

[Guest jeeptravel]

Credit Repair 101 is a sticky that you should definitely check out first.

http://www.debt-consolidation-credit-repair-service.com/phpBB2/viewtopic.php?t=100

My 2 cents is this:

1) IDENTIFY the derogs by getting an up-to-date copy of each report. If you've applied for any credit recently and were denied, you are entitled to a free credit report fro the bureau that was used in the decision. If not they are $8 apiece.

2) Use the dispute technique with erroneous information. I have found online through the bureau's site to work. Registered letters work even better.

After that, there is a slough of strategy here in this forum. Dive in and develop a new hobby like the rest of us. It's fun

-JT

[willingtocope]

And to answer one of your original questions...NO...do not you any of the "repair" services. Most are scams that will take your money and run and the few legit ones don't do anything you can't do yourself...cheaper.

Also...don't call...do everything in writiing so you'll have a paper trails documenting that you tried to fix your problems.

For those debts that are still with the original creditor (OC) you might try writing a "good will" letter...you find examples at the top...explaining that you had problems but they're now fixed, and you'd like to start repaying them.

For those debts that are with collections agencys (CA's) send them debt validation letters CMRRR and make them prove they have the right to collect. And remember, they paid pennies on the dollare for the right to hassle you, so you've got lots of room to settle...make sure you demand they delete any info from your credit repors if you do settle.

Good luck...and if we can help, ask...