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I filed bankruptcy about 5 years ago, and my credit score is still terrible. I do have some late credit card payments from 2-3 years ago, but I just don't know how to get negative points off my report. With medical bills and credit cards, I am only about 1900 dollars in debt, but my score is about 550. I just need help reading and understanding my credit report and scores, and then learning how to start repairing it. Any help pwith be great.
pay off debt to increase credit score
Hi Sjh,
The best way to increase credit score is to have a good payment history. You need to pay off the credit card debts, and the bills. This can help you in increasing your credit score. You need to:
1. Pull a copy of your credit report. Check the status of the delinquent accounts. Check if there are any charge - offs.
2. Send "debt validation letters" to the collection agencies. Send these letters through certified mail, requesting a return receipt. You will get a sample validation letter at http://www.creditmagic.org/repair/sampleletter-debtvalidation.html .
3. After they validate your debt, if you think that it won't be possible for you to pay the whole amount, you can try to negotiate a settlement with the collection agencies. To know more about debt settlement refer http://www.creditmagic.org/debt/settlement-bankruptcy.html#43642 .
4. Before you can start to make the payments, request the creditors and collection agencies to agree to a "Pay for delete" (PFD) agreement. With PFD all the negatives on your account will get deleted. Send the PFD letter through certified mail, requesting a return receipt.
5. Get all the agreements in writing, before starting to make any payments.
Hope this helps.
Regards,
Aaron