Clean up my credit?

Ok I want to establish a five year plan for my life, and it includes building a strong credit history, as I want to be an entreprenuer and credit is very very important to this. I looked at my credit report, and Its bad..not insormountable though. I have a charge off for one credit card $526.00. And two cell phones charge off one for about $300, the other about $400. How can I negotiate with the creditors? How much should I offer to get these accounts to show as favorable.

Clean up my credit?inflation rate

I have to disagree with the other person%26#039;s view on this matter..

A paid charge-off has no better standing than an unpaid charge-off.. The fact of the matter is once an item has been charged off, it is a negative.. Now, with that being said, you can pay off the original creditor, but do what is called a pay for delete compromise.. Most creditors figure you are never going to pay them. .So, if you call them up and work out an arrangement where you pay them a settlement amount or the full balance, but have them place in writing, they will remove the item, then you will be great..

As to your cell phones, depending on the providers, they will be more than happy to remove those from your credit, once completely paid.. However, once again, this goes back to the pay for delete letter....

Now, I do not recommend using these services who send multiple dispute letters to the credit bureaus.. For one, you and I can do this ourselves.. Two, once you enlist a company like this, the credit bureaus automatically flag your file and will ensure they have answers to all of your disputes before the time frame expires.. In other words, they will give your file serious scrutiny..

I would start at 50% and go up (but you must get the pay for delete system going).. Some of these will have you deal through collection agencies, but when you contact them, before you offer to pay them, talk to them about the pay for delete compromise.. If they are for it, then have them fax an agreement to you and give them whatever monies to call it even..

Hope that helps..

Clean up my credit?

loan

if you work out adeal withthe companies to pay off these debts then they will still show as charged off accounts. however zero balance is much better than still owing money.

the negative mark willl remain on your report for 7 years. howeverit will mean less and less as you add good credit acounts to the report.

One other option used by credit repair services is to write letters to each of the three credit reporting agencies saying the bad mark is an error and asking that it be removed. the agency will then write to the creditor who who has 30 days to respond. if they fail to respond the entry will be removed. Since the creditor will most likley respomd the tactic is to bombard them with letters every day for 30 days hopng that one of the letters falls through the cracks and they fail to respond to it, removing the negative report.

It;s not a totaly ethical solution,and probably not necesary since you have 5 years but It is an option

Oh one other option. if the accounts are over 2 years old since last activity they will naturaly fall of within your 5 yeartime span any way. this is why creditors are wary of any adult without a credit history/|||Call the creditor and negotiate for less than the full balance. 50% is a general rule but I have seen creditors take as low as 20 cents on the dollar. The older the debt the better your chances of lower settlement. These accounts will never show as favorable but remedying the outstanding debt is most certainly smiled upon to future creditors. Even more important is having positive credit or tradelines to offset your misdeeds from the past. A recent late payment can affect you more than a charge off form 5 years ago. Not having any current, positive credit would be disastorous. Keep a couple small cards, go out to dinner on them once a month and then pay them off. Keep home and car loans current. The longer your accounts are open the better your credit. Lastly keep all revolving, credit card, accounts at or below 50% of your limit at all times or you get nailed score wise for %26quot;Credit Utilization%26quot;

Good Luck!