Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Scores
Profile Image

Question By
Candis34

0 Contributions
0 People Helped
I need help with starting to pay off creditors how?
I would like to start making payments and working my debt down. However I am not sure who I should contact to get this started. I am also not sure if I should start with one of the companies and pay them off and then go to the next, or if I should pay them all a little at a time. Can you please help me? I want to potentially buy a house soon and with my current score I am not going to be able to.

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
62 Contributions
3 People Helped

Here's the steps I would take.

1. Run your free annual credit report, to get all the collections/creditor name for those debts.

2. Look for the date to be drop off your credit report. If it's within a year, ignore those. If you're not buying a house before that time is up, just wait and let them drop. Your score will increase alot.

3. Any debts within 1-2 years, write a letter saying you would pay in full if they're willing to delete the record out of all three credit bureaus. Don't agree to pay unless they write in paper that they will delete it. Then pay off that first. Do the same for the next one. What you want to do is pay one at a time, so you don't juggle alot of account/payments at once.

4.Any late payments on current credit cards, see if you can call them to have them update the late payments to on-time.

5. Keep your utilization under 5% with all cards combined.

6. Good Luck!

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.