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shawnboy124

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how to repair my credit score.
I currently have a very poor credit score, I have 2 account in collections, 2 loans, and 2 credit cards. I plan on paying off the credit cards asap. Now I know accounts in collections really hurt credit scores, but I don't even know why these accounts are in collections... one is from 2011 and the other is from 2012 and I don't even know what they are for. How do I go about getting these collections fixed? One loan is my car that I plan on getting rid of in the next few months, so how would that help my scores? I was dumb and didn't care when I was younger about this stuff now all I want is to have a good credit score.

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Option 1: Get your credit report and find who the collection is with. Contact the collections and ask them to prove the debt is yours. If they do, then you are on the hook for it and can work out a payment. If they cannot prove, dispute it with the credit bureaus. I suggest you do this as much as possible over emaila nd snail mail and do not pay anything until you have their promises in writing. You can also ask for a deletion against a payment though these days i wouldn;t hold my breath on that happening. However, if they do agree get it in writing.

Option 2: Check your state laws abotu the statue of limitations -- typically these are 7 yrs. Decide if you will need credit in those next years. If you do not you do have the option to not pay them if they are unsecured debts. Note that every time you respond to/talk with the collection companies etc you reset the start of this clock. 

If I were me, I'd go with option 1....

As for the car loan: car loans are isntallment loans and good payment hsitory is good for your credit score. So if you have th money to pay for it it is up to you to decide if the itnerest rate is worth keeping that loan on the books and making regular payments on it. If you choose to do so, I'd put the money you want to use for the car loan in a separate accoutn so you do not spend it accidentally.

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