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grandmamato5

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where i start to pay the items on credit score off with payments
My credit is terrible and I want to fix it and what I owe where do I start? How do I start?

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Take a look at Dave Ramsey's Total Money Makeover. You can find it in your local library. It provides a great plan for getting your financial house in order. It's super easy to read and even easier to implement.

Here's what I'd do.

1. Take a hard look at your budget and your credit report. Assess the issues and try and trim any fat in your budget (groceries, entertainment, cable/internet, and shopping are often the easiest places to make changes). Figure out how much you have to put towards your debt each month.

2. Make sure you have an emergency fund, even if it's small. Dave Ramsey suggests $1k. This is for situations like you blow a tire and you need quick money to fix it. Instead of putting it on a CC, you can use this efund. But you MUST put the money back into it promptly so you have the money when you need it.

3. Make sure you're paying your revolving credit bills on time and for at least the minimum.

4. Take a look at any delinquencies on your report. Are any of them small or recent?  If so, suck it up and contact those collection agencies. Set up a plan to pay them. Research the statute of limitations in your state, because depending on how old they are you might hurt your credit by contacting them. I would only target past due accounts you KNOW you can settle on within a short amount of time. I found that in my case, fixing one of these (I only had two and I'm researching te other) gave me an 8 point increase as soon as the payment hit my report.

5. Look into the concept of "Debt Snowballing", wherein you target specific debts to pay off and roll the payments into the next debt as things get paid off. This process has allowed me to pay of $6500 worth of CC and back taxes within the last 2.5 months. This will help you reduce your credit utilization.

6. Don't open any more credit cards and don't apply for anything requiring a credit inquiry.

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There likely are errors on credit report

Go to annualcreditreport.com and get all 3 credit reports.  Check them out for errors such as accounts you do not recognize, or know are not yours, or other incorrect information.  File disputes on the errors with the credit bureau reporting them.  They have to investigate and either verify or delete the item.  This act can improve your score.  Make it an annual ritual do do this credit report check.  It's free and can help significantly.

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