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How can I fix Bad credit? Need help building
Helo, I am 27 years old and am realizing I have made some terrible decisions in my early twenties. I need help fixing the mess I put myself in. I have a score 569. and have at least 3,000 worth of things in collections. I don'w knot where to start on fixing things. I basically work paychecxk to paycheck. So honestly there isnt much I can give to these Portfolio recovery teams that would like to settle. What other options do I have so far I have been denied any credit , so I rather not even waste my time trying to get a credit card.

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Yes, you CAN make it better

First of all, $3000 isn't a lot in the grand scheme of life. At some point, those accounts will age off your credit. People file bankruptcy for much larger sums and still are able to get credit and buy homes after coming out of bankruptcies. You need to look at all three of your credit reports, not just Credit Karma, getting them is free, go to their sites and order them (, www., File disputes for information that is wrong ( you can file disputes online at their websites for free). If an account is about to age off your report, do NOT dispute it, just let it drop off due to age. Then look at doing a payment plan with a non-profit credit counseling service like Consumer Credit Counseling (talking to them is free). Do NOT go with people like Lexington Law who will tell you they can "clean up your credit for a fee", because you will be paying for nothing. The account might be taken off one month but if you really owe that money it will be right back on in another month or two as the collection will just report it again because you owe the money. A payment plan will allow you clear up what you owe. The counseling agency will look at your income and living expenses and come up with a plan to pay off the collection accounts based on your income, it will also stop calls from collection agencies once you start the repayment plan. You make a payment once a month to the credit counseling place and they disburse the funds to the bills enrolled in the plan. You usually get an online account so you can monitor the activity. Once your score starts to improve, you can look at rebuilding credit with getting maybe a secured credit card. Your limits will be small at first, but if you use it for small things that you normally use cash for (like gas in the car) and pay it in full, you will see your score start to improve. Do NOT apply for a bunch of cards at one time when you are ready for credit again. Be selective about where you apply, places like Fingerhut are good to restart credit with, Capital One, Credit One. But you should with getting a handle on those collection accounts before applying for any credit.

You may not like what a credit counselor will say, but it is about choices. When I started cleaning it up, I looked at where I could cut expenses to have extra money to throw at the accounts. I stopped the nail shop visits, started taking lunch/breakfast to work, cancelled cable TV, got a cheaper cellphone plan, shopped for a cheaper electric utility rate plan, made some changes to my car insurance so I was able to drop that cost a little. Those changes freed up some money that allowed me to enter into a payment plan and it's great to see my score improve and no more ducking calls from collection agencies. The peace of mind and the end of anxiety is freeing.

Start working on it, it WILL take time, you just have to be willing to make those choices needed to tackle it.

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