How do I start to rebuild my credit?

I am a thirty seven year old man that has made some mistakes in my past and frankly if I start to repay all of my creditors at once I won't be able to eat ramen noodles till next July so what do I do? I mean I need to get a life - I have a girl I love and am considering settling down but I am so embarassed of my past that I don't know what to do? I have a credit score of like 515 approx through two of the services - please help - ofh and I have no extra money to give you so don't waste your time or mine if you want me to pay you to help I just need some advice.

I suggest you first understand just what goes into your credit score :

http://financialbasics.blogspot.com/2006...

Then you'll be better equipped to improve your current score AND keep it up :

http://financialbasics.blogspot.com/2006...

Credit is a numbers game. The better you understand the system, the better off you are.

Start by settling any outstanding debts - get a copy of your credit report. Contact the creditors one at a time (don't wake them all up at once!). If you are seriously past due ask the creditor to settle - many companies will settle for $0.30-$0.40 on the dollar. Get it in writing before sending any money.

As you clear up these debts your score will begin to climb. Try to pay down any current debt you have. Don't open any new lines for now. Hope these ideas help...the site listed below has some good resources, too.

debtfighters.blogspot.com

go to annualcreditreport.com and get your report. next, dispute all inaccuracies and assorted collections/late payments.

well my friend,having bad credit is bad, but expecting somebody to clean your mess for free is even worst, i was gone give you some advice but, when you say that you dont want to pay somebody to help you i decide not to, but im still gone to give you another advice you can't sit on your but and expect somebody to do such a thing for free , no body is gone help you for free !!!!! but wait..... i agree on something with you, i would be embarassed of my self if i was you too!!!

Pay off the ones with the largest interest rate first, paying only the minimum on the others. Once you get that debt paid off, use the money you were using towards it to your next highest, and so on. Call your creditors and try and negotiate a reduction in interest rates or possibly even a pay-off (for a reduced amount, paying the debt off in full) if you can afford a lump sum.

If you have credit cards, don't close them as you pay them off. That hurts your credit, as I discovered. If you don't have a credit card, once you pay off some of your debt, get a secured credit card to start rebuilding your credit. Pay it off every time you use it, don't carry a balance.

Tell the girl. If she's really the one for you, she'll understand and appreciate your honesty.

It takes time, but if you keep your credit clear for a year (no late or slow payments, etc), you'll really start to see improvement.

Also, look at where you're spending your money, create a budget, and stick to it!! Continuing to create debt will never get you out of the hole.

I recommend you contact each of your creditors directly, explain your situation and set up some kind of payment plan. Don't ignore them, that won't fix anything.

If they haven't already, they may send you to collections. Make the same type of call with them. Let them know your circumstances and figure out what you can do.

You need to show effort to repay them. Or, if your debt is so large that you can't - consult an attorney for options. Before you do that, however, make sure you know exactly what your dealing with and what each debt is.

I hope this would help you

How to Improve Your Credit Rating
http://get-out-of-the-debt-trap.com/category/How-to-Improve-Your-Credit-Rating-After-Bankruptcy.html

You and I have alot in common.Here's what you do...Pull your reports online and contest everything on them.You can do this about every six months or so.You'll be real suprised at how much will drop off.Now everything won't drop off but alot will.Now to build your credit you need to get one of those cards made for folks like us.I went to www.imagine.com and got their card.Easy to get and even easier to use.I love it.You can also go with first premier but you have to pay back way to much to get started.Try it out.Email me and let me know how it works out for you or even if you learn a trick I don't know.Just remember...bad credit shouldn't make a difference if this girl loes you.Bad things happen to good people and we're living proof.You made the first step by reaching out.Good luck on your quest and I hope I helped you out.

Hi,
I am going through alot of this myself....(debts from college). There has been some good advice on here so far, but I've noticed none of it covers some reall good avenues of approach.

1. Obtain a copy of your credit report and score through "annualcreditreport". Look this over for innaccuracies and mistakes.

2. Make a list of all creditors with the amounts you owe. Be sure to write down phone numbers and addresses to each individual company. You will have to keep an accurate and updated log of each debt you have (this is for your benefit.)

3. There are many sites online that offer free credit advice, and also give statute of limitations on outstanding debts, legal advice for different avenues of approaching your collections agencies, AND MOST IMPORTANTLY....WHAT NOT TO DO!!

4. Next, decide what bill you are going to start with first. (I highly suggest paying off only 1 or a couple at a time). You got into debt somehow...perhaps not being able to manage alot of accounts at once. (This is what I remind myself, lol)

5. Now that you decided who to pay off first, call or write the company, and ask for a settlement. (most creditors will). Do not sign anything, and do not pay by phone. You want to make sure you ask for a "pay for deletion". You may have to negotiate for this...perhaps a slightly higher settlement, or amount due in full. If this is agreed upon, GET IT IN WRITING!!!! In any case, be persistant, be somewhat aggressive, and negotiate until you get to an outcome beneficial to both parties.

(Pay for deletion is EXCELLENT, it means the credit agency will remove the past due, current, and collection history from your credit report once the account is paid up!!....my friend, this can be VERY, VERY beneficial to YOU!!!)

6. Start paying your selected accounts off in the manner agreed upon, and DO NOT go outside the boundries set in the written agreement!! After all, you and them are on a good faith basis, and any disruption in your agreements could result in "voiding" the terms.

7. Finally keep receipts of EVERYTHING. Keep written agreements at LEAST 7 years after each indiviual debt is paid off. You never know what can happen, I say this because I threw away a receipt that I wish I still had.....it would've saved me about $1000.

8. After your debts are paid and closed, START SMALL, and get yourself a secured credit card (ask your bank if they have one). Research every card you look at, you don't want to end up in debt again, do you?

9. Use your card(s) for normal daily purchases, ie: gas, groceries, cell phone, utilities, etc etc. Just make sure you pay your credit card off with the money you would've used for these purchases (deduct them out of your paycheck as usuall, just make sure you pay it to your card and nowhere else). This will help bring your cedit score up, and eventually good once again!

9. MOST IMPORTANT!! -Learn from your mistakes!! Examine every purchase you want to make....Do you "NEED" it?? Or do you just "WANT" it? Ask yourself this everytime you buy something. If you need extra cash, I recommend that you take a look at your groceries, buy the off brand stuff. It is the same as name-brand for a fraction of the price (you'd be surprised how much you save....I WAS!!), Apply this extra $ to debts / bills. I hate to say it, but you're gonna have to bargain hunt, coupon clip, and cut back on your fun if you are serious about getting your finances straight. If you can do these things for about 21 days, it should become habit for you. I read somewhere that the average person can develop new habits if they practice them for 21 days consecutive....(food for thought).

I hope this helps, remember: you are the best person to help yourself, and by asking advice you've already started to better the situation. STICK WITH IT!!

First of all, I don't answer these questions for money, so you can relax a bit...

If you desire to start paying back old debts but are afraid it will put you in a bind, you are not alone.

You may want to contact a debt counselor (there are some available out there that are a free public service). They can arrange to contact your old creditors for you and make arrangements for a set monthly payment, something that you can afford. If you can have them take it automatically out of your paycheck:
1) It will always be paid on time, and
2) You won't miss it 'cause it's automatically paid before you get your net check.

This will start you on your way to improving your credit score, as long as any current monthly bills are paid on time.

If you plan on eventually settling down with someone, you don't want to start a new life with nagging old debts. Start taking care of those now. The sooner you start, the faster you'll get them out of the way.

Good Luck

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