If you use your credit wisely it will go up over time.

If you have a relative willing to add you as an authorized user on a CC this could inflate the score. (Most companies no longer report authorized users) The account will appear on your credit report as though you have had the account sense it opened.

If you have past due balance pay the current asap.
Pay any collections.
Keep the balances on any credit cards you have at below 50% of your limit ideally below 30%.

Keep up the work keep the faith and you will get there eventually.Assuming you have money saved up, offer to settle negative accounts…..Offer to settle @ 25% and go from there.
Don’t bother contacting collection agencies if you can’t offer up front settlements…they won’t want small payments over several years.
- If your debts are already defaulted, absolutely do not waste your time with CCCS. They won’t help you settle accounts for less as they’re funded by the credit card industry
- Paying back defaulted/charged off credit card debt is a tricky matter…It won’t really fix your credit rating…but if you’re looking for a new mortgage you may have to pay off old defaults
- If your debts are really old…like 5 years old…you may just want to sit tight and let the debts fall off your credit report naturally in 2 more years…7 years is the max. they can stay.You need to wait for those negative things to age off your report (depends on how old they are and whether you intend to pay them..if you pay an old debt it doesn’t necessarily make your score go up, it just stays on as a neg account that got paid) in the meantime, you have to establish new credit and use it wisely. It isn’t enough to just pay off old or bad debt, you have to show you have learned to use credit wisely. This is going to take time. Not months, but usually a couple of years before things start looking better on your report.Credit counseling won’t really help you with defaulted debts. Legit credit counseling companies negotiate lower interest and payments on current credit cards so you can pay ‘em off.

If you have negatives on your credit report, you can work on settling them yourself. Get a copy of your credit report (AnnualCreditReport.com) and see what shows. Start with the newest negative and work backwards. You may want to just let anything close to the 7 year mark just age off.

If any of these debts are single entry items like medical or utility bills, try to get a pay for delete agreement — you pay $x and they remove the item from your creidt. This does not work for regularly reported items like credit cards or installment loans. Collection agencies can only remove what they report. The original creditors charge off remains.

Paying off old debt won’t improve your score, nor will it remove them. However, creditors look at your whole report, not just the score. Mortgage lenders will require that all derogatory items be resovled before approving you. With this in mind, you may as wel try to settle for as little as possible. Generally, if the debt is over 3 years old, offer 25%; 2 or 3 years, offer 50%; less than 2, offer 75%. Lump sum gets the best deal. Payment plans have to be short term.

Get any settlement agreement in writing before you pay. Keep that agreement, along with your payment proof, forever. Do not give the collector direct access to your bank account.

In the mean time, you need to rebuild your credit. If you don’t have any open lines of credit, get a credit card, even if you have to get a secured one. Use the card and pay in full every month. You need at least 24 months of consistent, on time payment history to see improvement in your score.

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