I need to start fixing my credit?

Ok, well I'm glad that you're ready to take control of your credit. I have some tips that will give you some guidance on how to tackle this.

First, it would help to know what makes up your score

35% Payment history
30% Amount of debt owed vs. Available credit
15% Length of time establishing credit
10% Types of credit established
10% Inquiries and New accounts

Having said that, now let's draw up a battle plan

The older accounts that are 6 years we'll handle last. The most recent ones are hurting you the most. Assort them from least to greatest amounts owed. Then if you haven't gathered the contact information from the credit reports, do that.

Now if you're serious about paying or making arrangements to pay, you really have to evaluate whether you'll be in a finanacial bind. You don't want to go into debt from trying to pay off older debts. That would be like robbing Peter to Pay what you owed Paul, but now Patrick's looking for you!

I would take the debt with the least amount and call the collection agency and speak with the MANAGER. I woudn't discuss anything with anyone unless they're management. Once you get the manager on the line, simply explain that you're simply wanting to reconcile your account in full if they would remove the delinquency off the report. Chances are that they may not do it, but it may be to your advantage to appeal to the manager since they would be the one to get it removed. Like I said it may or may not work, but if it is, be prepared to pay the whole amount in full. That's why I said that when it comes to settling old debts, be prepared to pay it all. A lot of times, they won't accept payment plans whether they will remove it or not, so be ready for that. But if you're lucky and they will remove it, what you'll need to get from them before you send them a dime is something in writing on their company letterhead stating the terms of the agreement as well as a copy of the universal deletion letter that's sent to all 3 credit bureaus to remove it from your report. Then you'll need to get a cashier's check and send it to them certified mail. This way that you have your bases covered with documented proof.

As for the older debts you can play those different than the more recent ones. You had asked whether or not they will drop off in 7 years, you're right under the Fair Credit Reporting Act. 7 years from the date of the last activity is the statute of limitations (SOL) that a debt can be reported. Also it would be useful to know that there's also a SOL for collecting debts as well. Now these can differ from state to state. http://www.acollectionagency.com/statuteoflimitations/index.php

The SOL for collecting is the amount of time allowed to collect on a debt in a court of law. Meaning that after a certain time, a collection agency can not sue you for the debt. You could use that as a bargaining tool to have debts removed. If your debts are close to the 6 year mark, it would be likely though you still may need to check that the SOL for collecting has expired, since the SOL for reporting it will expire in the next year or so. You could either play the waiting game for another year or so and it should fall from your reports naturally, or you could use the information that I've provided to negotiate for a reduction at close to 40% of what it originally was. Now you have to be a hell of a negotiator to this, but it's possible. You have to make the collector know that you're fully aware of your credit rights and that they're not able to legally collect on the debt but you're willing to reconcile and you're making a one-time offer to pay 40% of the debt in exchange for removal from your credit report. At this point they'll have to make a decision. Sometimes, they'll turn down your deal for a worse one just to spite you. IF that happens, simply let them know that you have informed them that the statute of limitations for collecting this debt has expired and disconnect the call. They can't restart the clock on a phone call, only if a payment is made. Chances are they'll try to sell it again, but since the SOL would be expired, and they'll be unsucessful.

Another thing you can do is to review all of the accounts on your reports carefully and dispute anything that's inaccurate or incorrect. A lot of times people have things on their credit they don't bother to check because they believe that since their credit is so throwed, it's theirs. A lot of times you can increase your score 10-15 points or more just by correcting and disputing errors.

Make sure that you're keeping your current credit cards in good standing. Also it probably wouldn't hurt to get one dept store card. It's also good to show that you're reponsible with different types of credit. Car loans, mortages, installment loans mixed in with those 2 cards you have already can make a good mixture. Now don't go out and get a car note and put yourself back in the hole again, I'm giving examples of what kind of mixture would be ideal. Let's say that you were able to get 5 more credit cards and keep up with them, it wouldn't give you as good of a score compared to having a diverse range of loans, like the ones I just mentioned.

Another thing is to ask a close friend or family member with excellent credit to add you to one of their oldest credit cards in excellent standing as an authorized user. You won't need a card, as this would be for reporting purposes only. The payment history and activity will reflect on your report once you're added.

These are a few things that you can do to get you back on track, I hope they work out for you

Good Luck!