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VeryPoorCreditdotcomMan

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Very Poor Credit... What to pay off first?!?!?!
Ok. So I am 22 and hope to own a home by the end of 2016. One big problem I can't figure out what I should do to improve my credit scores. I have a few small accounts in collection two of which are below $300. One from a credit union for a bounced check and the other is from a real estate group from which the apartments I never lived but signed the lease. I have my student loans in defualt but I am currently going through the program that would bring me out of default by paying a small amount per month. Also have a sprint bill in collections at about $600 and a few medical bills. I have never had a credit card I was thinking one way to pay off these debts and also improve my credit would be to get a secured credit card with a deposit at let's say $500 pay off the debt from the real estate group with the secured credit card and make payments on the card on time every time if that is an option or just pay it off right away. Not sure if that is a good way to go (because I have heard you should utilize a credit card no more than 33%). I have also considered getting a consolidated loan. But I am just not sure can someone please guide me in the best direction I have about 6 hard credit inquires and the equifax score is showing as 487. I need serious help I would like to have at least a 640 by the end of 2016.

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You have a lot of hard work ahead of you but it can be done. First thing you want to do, is to spend an hour or so every day reading all that you can about credit, having a good understanding of all aspects will help you make the right decisions. After some extensive reading and gained understanding you will want to start to attempt to clear the negative information from your reports. With the collections you will want to get "Pay For Delete Agreements" if possible. If you want to you could try to get a Secured credit card now, maybe with a lender like OpenSky or Capital One, BUT at this point your money is better spent trying to get the collections paid & removed. DO NOT consider trying to get a consolidation loan, it would never happen at a rate that would be helpful.

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-Do as much reading on credit as you can, especially PAY FOR DELETE AGREEMENTS, understand that simply paying collections does not remove them or really help you much, you want them removed.

-Find ways to get more money together for your credit rebuild, sell things you don't need, get a second job, cut out unnecessary spending, set a budget

-Continue to read, there is always more to learn, be patient, be persistent and in time it will pay off, if you have any more questions, please feel free to ask.

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