It can be done.
Credit repair, that is.
You need some basic understanding of the credit system, a few strategies and some good old guts.
This is a guide will reveal tips on how to repair bad credit.
First get your credit report from each of the three major credit reporting agencies.
You are entitled to a free credit report each year.
Start with the basics.
Determine that from now on you will pay your bills on time, if it means using one credit card to pay another.
This is most important or your credit repair efforts will come to naught.
This means open accounts not those in collection.
You want to keep your open accounts and pay them on time because this will help bring up your score, that all-important three-digit number.
If you don't have any accounts in collection, or charge-offs, this all you need to do.
Any late payments will eventually fade somewhere in the background.
If interests and late fees are killing you, you can negotiate for reduction or elimination of these.
Some banks may be willing to work with you out, but you won't know unless you ask.
For items in collection and charge-offs, there are two ways to deal with these; negotiation and dispute.
You will use either depending the individual account.
The old "not mine" method of disputing reports will not get you far if anywhere at all.
You need to legitimize your dispute.
Look for errors of omission or commission.
Collectors are known for not playing by the rules as well as committing illegalities.
Take advantage of this where possible.
One illegality that collectors are known for is re-ageing accounts.
This means changing the dates on accounts to a later date so as to keep within the statute of limitations period.
If you detect this, write to the bureaus and demand deletion of the account.
You can also negotiate for deletion of accounts in collection in exchange for settling.
And, you don't have to pay the full amounts, as in some cases the collector will have purchased the account for pennies on the dollar.
Start by offering about a quarter to the dollar.
Just bear in mind that when your debt is reduced the amount "forgiven" is considered income for tax purposes and you may have to pay tax on it.
Now, when negotiating for deletion upon payment don't take the collectors word for it.
Make sure it is put down in writing and duly signed by an official of the company.
Collectors are known for not keeping their word.
Keep your cool when negotiating.
Some collectors can be nasty and others will try to push your buttons to make you say the wrong thing.
If you're getting nowhere with one person, ask for a supervisor or hang up and wait a few days.
And, avoid positively acknowledging debts by using words like "my account" or "my debt".
When referring to an account, do so by its number or something like "this account".
You don't want to restart the statute of limitations through inadvertent acknowledgment.