Need to fix up credit

Discussion in 'Credit Talk' started by dacreation, Jan 28, 2006.

  1. dacreation

    dacreation New Member

    My credit is really messed up. i have alot of collections. i was thnkin of callin the collection agencies and settling each of them Would this help me or i need to use a credit repair agency such as LExington law. i applied to numerous jobs and i thnk i didnt get them cos if credit checks.
    Pls i need to repair my credit.

    Need expert advice thanks
     
  2. frioguy

    frioguy Well-Known Member

    If you were to settle you would have to make sure you get the agreements in writing first.. CAs will tell you anything on the phone to get paid but dont always deliver whats promised...Also if you settled for less than the amount they can turn around and sell off the balance to another CA...Its Happened.
    Dont use CR agencys. You should do it yourself or at least try first..Plenty of basic forms on this site if you need sample letters..
    Check your reports..Look them over carefully.. Send Dispute letters to the CRAs. Send Validation letters to the CAs and or OCs... Send them CMRR. Keep all you reports,green slips from the PO,Etc..
    Wait for the repsonses..Then study the Reports again.You may get some deletions or you might not..That will be a start..
    And what ever you do.DO NOT TALK to CAs on the phone.


    frioguy

    DEBT is a 4 Letter Word
     
  3. Hedwig

    Hedwig Well-Known Member

    Re: Re: Need to fix up credit

    For the most part, a credit repair company can not do anything that you can't do yourself. In many cases, they actually hurt you because they may end up getting positive lines deleted. If you search the board you'll find a lot of information on this. Try searching Lexington Law for starters.
     
  4. Hedwig

    Hedwig Well-Known Member

    Re: Re: Need to fix up credit

    And here I have to disagree. Actually, I can't disagree with the fact that debt is a word composed of four letters. What I can disagree with is that debt is bad.

    Debt IN AND OF ITSELF is not bad. Mishandled debt is bad. There are many cases where debt is good.

    For example, I got an offer on a credit card of balance transfer (no fee) for .99% until it's paid off. I maxed the card with a check made payable to me. I have invested the money and will make considerably more than .99% on it. And I'll never make more than the minimum payments on this debt for the same reason. Any money I pay on the debt is paying off .99% money. If I can take that money and make more with it, I should never pay more than necessary. I should take the money I would pay on that and invest it.

    I have another card that I use for day-to-day purchases. I get 1% back, credited on my statement at the end of the month. I pay in the grace period and so pay no interest. I'm making 1% on that money (plus any interest I made by leaving it in a money market account for an extra month or so).

    This doesn't sound like a lot, but it adds up. Study the principles of compound interest.

    Millionaires don't become millionaires by paying cash--they become millionaires by using OPM (other people's money) to their advantage.

    Use debt wisely and you'll build wealth. Use debt unwisely and you'll get in trouble.
     
  5. livin4jc41

    livin4jc41 New Member

    Re: Re: Need to fix up credit

    My advice is that a credit repair company cannot do something for you that you cannot do yuorself. At least doing the research and repair yourself, you know the guidelines and law. I have heard too many stories of people who have got themselves in big trouble because of illegal practices from credit repair companies. There are many credit communities that are out there, that will welcome you with open arms, and offer FREE advice (from experts in the field of course). The only costs out your own pocket that you should incur is postage, any payments made to creditors / collection agencies and your personal time. Go out there and learn, knowledge is power.
     
  6. ontrack

    ontrack Well-Known Member

    Re: Re: Need to fix up credit

    Debt is leverage. Whether it is good or bad depends on its cost relative to the benefit of the transaction it finances.

    Leverage makes a good investment better, and a bad investment worse. As such, it magnifies both reward and risk.

    If the transaction financed thru debt is a bad investment, it allows you to do more of a bad investment, and so lose more.

    Expenses for things you don't need, and that you can't afford without borrowing, are bad invesments.
     
  7. frioguy

    frioguy Well-Known Member

    Re: Re: Need to fix up credit

    You are right to some extent. Some DEBT can be a good thing..Using OPM for Real Estate would be Good thing.I use OPM for it if a true deal comes around...I,m almost at a point to where I will not have to...
    I believe that Most Debt is BAD.Especially when the average joe on the street thinks that Being in debt up to their eyeballs is such a good thing and too many will not do the basic math and actually see what it cost them in the long run.. For instance, If you buy a Vehicle,Furniture, appliances or even clothes on credit.More than likely you,ll be paying interest on it.Now I know for most people Vehicles are a big ticket item so financing is almost certain.. Other items should be Bought with Cash..If you dont have the money dont buy it..To many people will buy before the think about the pros and cons. Thats why I say Debt is Bad..
    True alot of Millionaires made theirs by Using OPMs, but not all.. I do believe that the Smartest ones Paid cash for anything that would depreciate once it left the store.And they put most of what they had in Things that Appreciated in value.RE,Stocks,mutual funds,Etc..
    Everybody has their own outlook on what it takes to succeed.. My ways can be a hard run for most. But it has worked well for myself..
    Not trying to get in a debate So please dont take offense. Its just my .02cents.
     
  8. ontrack

    ontrack Well-Known Member

    Re: Re: Need to fix up credit

    No offense taken. Just my $.02.
     
  9. frioguy

    frioguy Well-Known Member

    Re: Re: Need to fix up credit

    Sorry Ontrack. My post was in reply to the post by Hedwig.I must have posted it at the same time you posted yours..
    Keep up the good work.

    frioguy
     
  10. Hedwig

    Hedwig Well-Known Member

    Re: Re: Need to fix up credit

    No offense, you just made a blanket comment that debt is a four-letter word and I was trying to make a point that it's not necessarily bad.

    I agree that there are many things that shouldn't be financed. I'll debate on cars--it depends on the rate. If you can finance with a low rate and take what you would have paid in cash and invest it (that's the big IF) at a higher rate, I'd do it. If I can make more than I pay, fine.

    I wouldn't incur debt just to get frivolous things.

    As ontrack so aptly pointed out, leverage can also make you buy more of a bad investment.

    I think in the end we all agree that the real answer on debt is IT DEPENDS!!
     
  11. reliant

    reliant New Member

    Send Dispute letters to the CRAs. Send Validation letters to the CAs and or OCs... Send them CMRR. Keep all you reports,green slips from the PO,Etc..
     
  12. jam237

    jam237 Well-Known Member

    Is there a reason you are answering a decade old post?
     
  13. jam237

    jam237 Well-Known Member

    Why did you decide to spam on an 11 year old post?
     

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