I am 29 years old and am just now in a position where I can start cleaning up my damaged credit. I was very reckless/careless with my finances throughout my late teens and most of my 20′s. I have recently pulled my 3-in-1 credit report and my score is below 600. I want to start cleaning up my credit, but I want to know the most efficient way to go about doing this. Since I am fairly clueless about how the credit agencies report and base your scores, I don’t want to take incorrect or unnecessary steps. I do have one current auto loan that I pay installments each month for, and I pay on time. I want to get my score above 750, eventually.
Are there proper steps when attempting to clean up your credit, and should I clean up everything that is shown on my credit that I owe? I have everything from old medical bills, to old credit cards (that are no longer active), to charged off accounts, to transferred accounts. When I do start paying off some of the debt, how long will it take to see a change reflected in my credit score? I just don’t want to do it the wrong way!
Thanks for all your help,
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P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘. I Was Irresponsible With My Credit But Now I Want to Clean It Up - Kristen by Steve Rhode