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Whats my next best step in repairing credit
Credit score is at 525.. Made stupid decisions with my credit when I was younger around 3 years ago and now I have about 5,000 unpaid debt. All the accounts with unpaid debt are already closed and have since been sent to a collection agency. My question is whats my next best step to improving my credit. Should I bother paying off the 5K in unpaid debt now that it has since been sold off to the collections agency? will paying all that money really make enough of an effect to my credit score to be worth while? Or is the damage already done? Should my next move be applying for a secured credit card and slowly working my way up from there? Thanks... Ive been searching all night and keep reading mixed reviews on this subject..

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Any unpaid debts that go to collections will remain on your credit report for 7 years from the date they were reported as closed.   When the debt is sold to a collection agency, they become the rightful owner of the debt and they are the ones you should communicate with in order to begin the process of paying them off.   Under the assumption that they are 3 years old, this means they will be on your report for another 4 years.    You should get a secured credit card from a reputable firm that you can manage and start building your credit back up.   In time, you would be able to convert that card from secured to unsecured and even see credit increases on the card.   A few of the credit card companies will look at the age of the unpaid debt and begin to overlook it.  ALthough, others won't even talk to you as long as it is on your report.   Even those who may extend you credit in time will be hesitant to increase the credit lines while the unpaid debt is on your credit report.    You should check the statute of limitations for your state to determine if they can still legally commect from you.  The day you open that secured card, you can look forward  to receiving calls from anyone that is currently on your report as a creditor.   If you are within your statute, you need to make payment arrangements so that they don't consider legal action to attach your paychecks.  If you are outside the statute of limitations, you can negotiate with them for a lower amount to pay it off and even to hvae it deleted from your credit report.   Even with it deleted, you'll still need to go the route of a secured card as you would not have any credit on your report.

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