subject: How To Fix Bad Credit? [print this page] If you're like most Americans the economy has taken a toll on your credit. Late payments on mortgages, car loans, and even credit cards have damaged millions of hard working and honest peoples credit score. So, what can you do if you're ready to repair your credit and wish to get back on track? We offer a step by step guide below.
First, you should get current if you are late on any of your accounts. This is important and is a crucial step to fixing your credit. Your payment history makes up 35% of your credit score and lenders want to see a clean payment history with no lates.
Second, consider paying off as much debt as possible, how much debt you utilize plays a big role in determining your credit score, the less you owe your credit card company the better.
Third, if you have any accounts in collection we recommend trying to settle with these agencies. Collection accounts hurt your score a lot and will stay on your report for at least seven years. You can usually settle with these companies for 10%-40% of what you originally owed. Just make sure that when you contact these companies you be upfront and tell them you are willing to settle as long as they agree to remove the derogatory item from your credit report, make sure you get this in writing.
Fourth, consider hiring a credit repair company that knows what they're doing. A legitimate credit repair company knows how to remove late payments, collection accounts, charge offs, and even a bankruptcy if they are not being reported accurately by the credit bureaus. Keep in mind you get what you pay, it is unlikely you will get a great service by paying $40 a month most of the time they will not do anything for your credit report and you'll be out a lot of money without any results. Look for a company that offers some sort of guarantee that they will get you results, after all that is what you're paying them for.
