Trying to do the impossible... restore my credit - HELP!

You really need to have a credit card or two. Credit mixture is part of the score. Creditors want to see that you have credit and can use it.

Two other large factors in the score are length of credit history and utilization.

Since all of your revolving accounts are closed, you don't have much of a history. You'll need to build up your credit over time.

Another aspect is the utilization ratio. That means how much of your available credit you use. So, you want to keep the balances on your cards low.

Apply for a credit card. If you can't get an unsecured card, you'll have to get a secured card. That means that you pay a deposit and get a credit card with a credit line based on your deposit. Some CC companies give you the amount of deposit as your credit line, some give you more, perhaps twice your deposit or something.

Don't think that the deposit is to pay the bill. You need to pay it each month, on time, to establish your credit. Use it for things you would buy anyway, like gas and groceries. If you have to, take the money you would have paid and put it away somewhere, then use it to pay the card when you get the bill.

Debt, in and of itself, is not necessarily bad. You need to learn how to manage it.

There has been some discussion of companies who say they can repair your credit, if you look you will see some discussion. Some are scams, some are legitimate. Most can't do much more than you can do yourself, if you're willing to take the time and read and learn. That way, you'll educate yourself and hopefully not get in the same position again.

The first thing you should do is order hard copies of each of your reports. Don't rely on the trimerge reports you get online, as they don't always show things the same way that the hard copy will.

While you're waiting for the copies to arrive in the mail, read as much as you can here and learn as much as you can. Then post your specific questions.

I hope this is a start for you.

 

Sounds like you're on the right track now w/finances under control, now to start on fixing your credit.

No, your score will increase slightly every month, as old negatives "age", and you continue good payment habits. Also, is this score a "FICO", or purchased through Transunion? There is a difference..

There is a lot you can do to improve your credit reports and scores. I usually recommend doing the repair work yourself, it is work and time, but no one will have the vested interest like you do. As for the credit repair companies, there are "legit" ones out there, who do a good job, but there are many that are merely looking to take money.

Below is a "primer" I'd posted for a similar question; this is "how to get started". You'll be amazed at what you can accomplish in a short time.

"Welcome to the forum, and hope we can help. This advice is basically a "primer" for all credit repair, it is a bit lengthy, but bear with it. You are starting on a journey, understand that it will take a while, and the most important thing is to follow the process. Here goes:

1) Get current hard copies of all three credit reporting agency reports. It sounds like you've done this already, but if you haven't, get all three. You can get a copy from each agency once a year for free from www.annualcreditreport.com.

2) Get your FICO scores for all three credit reporting agency reports. Go to www.myfico.com. Do not get "credit scores" from other advertised sources, MyFico is the "real" score, the others are referred to as "FAKOs". I recommend that you Google first for "FICO discount codes", for a promotional code to save you 10%-20% off the list price.

3) Study your reports, and scores: read what the legends say about codes and items, read what makes up your credit score, in short study up on what your reports are saying. Make sure you understand what the reports are saying.

4) Read the Fair Credit Reporting Act (FCRA), and the Fair Debt Collections Practices Act (FDCPA). These can be found at www.ftc.gov/consumer. This is a true labor, but it is well worth the time. These two documents outline all the applicable laws, what the credit reporting agencies can, and must, do. They also define how items must be reported, and what you must do. Again, post any questions that you may have here on the forum.

5) Get organized and "supplied". Credit repair is a major project, and organization is a major part. You will need an area to file all your documents, calendars to keep track of actions and to remind you for follow up on items. You will need access to a copier, need to set up a documents file on your computer, etc. You should also stop by your post office and pick up a pile of "Certified Mail Return Receipt Requested" materials, it is easier to have them at your fingers when writing letters, than trying to fill them out at the post office.

6) Read as much of the material here on this forum as you can (before you start disputing and letter writing). Read, read, and then read some more...yes, it is work, but learn from others' mistakes. Again, it is about following the process. If you've fully read the FCRA, then you will note some surprising steps you must take (which do not seem to make sense at times but...).

7) If you feel you have a good understanding of the basics, create a plan of repair based upon priority of negative items on your credit report. For you, the "Charge Offs" seem to be the most impacting.

8) "Opt Out": this is removing your name and information from being solicited to businesses for "promotional" purposes. Howver, this is also a way colleciton agenices can find information on you, and access your report. This is a preventive measure which can easily be done with a phone call. Just follow the instructions on your credit reports.

9) Review your credit reports for accuracy of your personal information. IMPORTANT: remove any previous addresses older than two years. This can be done on-line, or through written request. If you do a written request, mail Certified Mail Return Receipt Requested. Wait until you have received the corrected credit reports before you dispute anything.

10) Plan and prioritize your dispute actions: Dispute your priority items with all of the credit reporting agencies (CRAs). There are different schools of thought here, but I recommend only doing one or two tradeline disputes at a time. If you dispute everything at once, it can be overwhelming to organize and manage. So, keep it simple to start.

11) Disputing: the easiest method is to dispute on-line with the CRAs. If it is at all applicable, dispute as "Not Mine" to start. You do not want to waste this dispute reason. You can also dispute via phone, and mail; if you do dispute via written letter, make sure you send Certified Mail Return Receipt Requested. You can also track progress on line via the postal service. However you dispute, keep documentation of all you actions, keep copious notes of all converations and actions as well. You may need these down the road.

10) Follow up: the CRAs have thirty days to (from receipt of dispute) to complete an investigation, and then report back to you. Make sure you know when these time frames are up.

11) Specific items: If your disputes of the Charge Offs are "verified", and remain on your credit reports, then you will start some actions with the collection agencies (CAs) directly.
Send out "Debt Validation Request" letter to the collection agencies requesting the supporting evidence that you indeed are the person who is responsible for this debt, and that the amount alleged owed is correct, and can be accounted for. Please note that the CAs are only legally bound to provide this IF you request this within thirty days of first notice of the debt by the collection agency. Many CAs will provide this after that period, but they are not required to do so. There are several sample letters here on the forum to use, just keep them simple and short. Avoid use of "legal recourse" language for now. The letters of "Intent To Sue" have lost their effectiveness in recent years, and basically go ignored now.

12) Have patience, and discipline: I'm not sure which is worse, having success in the beginning, or not having it. Wait patiently for dispute results, and review carefully before acting again. Make sure your dispute actions are planned, and documented. Do not rush the process, this is where mistakes happen, and opportunities are lost. Sometimes it is easy to get excited after seeing some negatives removed, and you start disputing everything at once, or rushing them. FOLLOW THE PROCESS.

13) Take this time to (objectively) analyze what got you into this position: was it a one-time issue of job loss, etc., or was it a mental state of spending more than you should? Find the true root cause for your current situation, and address what you need to do to correct it. This will be one of the most critical things you do in this process.

14) Get a hold of your personal financial situation: start tracking all of your expenses and income, write down and add up all your debt, and itemize it. Most likely you will need to create a debt repayment plan as well, and for this you will need to get a clear picture of your personal financial situation. This can be a daunting exercies, and perhaps a bit depressing, but it is a critical tool to fully correct your situation. I recommend looking at www.about.com/debt for helpful tools and information on personal finance. www.msn.com/money also has great basic information also.

I think this is enough to get you started; I know this may not be what you hoped to hear as advice, but it is the best advice we can give you. There is no overnight solution. As for the "credit repair" firms, you can do all of the same measures yourself, and probably a better job, it will just take some time and effort to learn and do them yourself.

Again, welcome to the forum, and congratulations on taking the first steps. You can do this, but it will take time and serious work. But read all of the "success stories" here on the forum, you will find some great motivation in all of the achievements by others here.

We're always here to help and encourage....never be afraid to ask any question."

Good Luck!, and hope this helps!