Forums
I have a very back credit score due to huge outstanding credit card debt. I made the last payment in Dec 2007 and now when I checked my score, it has gone below 600. Can anybody suggest how would I restore my score from here?
start at the beginning
What does your actual credit report look like?
How many credit cards make up your "huge outstanding credit card debt"?
Basic Credit Repair
1. Identify negative tradelines on your credit report
2. Request validation of negative accounts
After these steps the approach depends on your situation.
If the debts are valid and outstanding, you can attempt to negotiate payment of the debt. It is possible to to get the creditor to agree to a lower amount as well getting them to agree to delete the negative tradeline.
If the accounts are not valid for whatever reason, you can contact the regulating agency for the creditor and threaten to sue them for violating the FCRA.
Most likely it will be a combination of both things.
DO NOT GET MORE CREDIT. Many people will advise you to some kind of high cost low standard secured credit card. This is pointless, the fees are ridiculous and cost you the money that you need to save to get back on your feet.
Hi Hallmark
you should first pull out your credit report to find out the negative listings there. If you have hard inquiry listings, which you think has not been authorized by you, then send letters to the inquirers asking them to remove the listing or verify your authorization. In most cases, the creditors cannot verify your authorization and remove the listing from your credit report. However, if you have a debt listing in your credit report, you need to send a debt validation letter first before you can have the listing removed from your credit report.
If you send a DV letter, you should send it by certified mail as a proof that you have send the DV letter. Now if they validate the debt, it means that you owe the debt and you should take steps to repay it off. You can come to a repayment plan with the creditor or the CA and try to make them agree to Pay for deletion agreement. But if they cannot validate the debt, you should send a dispute letter to the credit bureaus telling them that you do not agree with the listing and ask them to remove the listing from your report.
The key things to remember here OP is asking for debt validation and getting a pay for delete in writing. A lot of places are starting to agree with these deletion letters just to insure you will repay the debt. Ask them upfront and get it in writing BEFORE making any payments. Then once the debt is all paid back ask them to hold up to their end of the deal. If by chance they don't you will have the signed agreement and can dispute it getting it deleted form your report. Good luck. Stop back in and let us know how you are doing.