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
Overwhelmed23

0 Contributions
0 People Helped
Raising credit score...to use or not to use a debt consolidation company?
My credit score is about 560. I have about $2500 worth of things in collections (1500 is medical bills), 2 garnishments (that are now over) from 2012 and only one account that is actually active (capital one credit card 300 limit). Plus student loans about $25,000 (which aren't in default) I'm trying to figure out how to raise my credit score because I would like to buy a car in the near future and a house eventually. I'm 23 years old and I will have money to pay off debts. The problem that continues to hit me is I have collectors calling for me for items that aren't on my credit report so it's hard to keep track. Everything on (and off) my credit report besides my capital one card is AT LEAST 3 years old. I'm just trying to figure out my best solution.

Should I use a debt consolidation company? Or should I try to do it myself? What are some reputable companies if you do recommend a debt consolidation company.

Also, the amount of money owed that's not on my credit report is about another $2000.

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
5038 Contributions
1136 People Helped

For the things in collections, learn about "Pay For Delete Agreements" if you have the money to pay the accounts in full. Spend as much time as you can reading about all credit topics, being educated on credit is the first step. I am really not sure what you are thinking here, if you cannot afford to pay what you have now and are considering debt consolidation, you are in no position to be adding any more debt. Be patient and take a year or two to get your debt paid down and credit reports cleaned up and optimized the best that you can before you consider any major purchases. It sounds like you have stress now over your bills, don't add any more stress by putting yourself into any more debt at this time. Waiting and being patient does suck, but your future self will thank you for it. Do what you can to find some extra income to move this process along.

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.