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How do I fix my credit and make sure my unpaid debt is taken off of my credit report?

I am getting sick of my bad credit ruining everything I try to do. At this point I am finally able to pay off my debt in order to fix this problem. I have heard stories of people paying off their debt but the company leaving them as unpaid on their credit report. I DONT want this to happen. How do I go about paying everything off while making sure it is taken off my credit report for good? How long does it take your score to change after you paid everything off?

Public Comments

1. , you can go to http://sn.vc/credit518 and they will help you with restoring your credit to a decent credit and FICO score if necessary. they really helped me out in fixing it. i went from a score of about 430 to 570 in six months with their help.
2. Paying off old debt will not improve your score. The damage is already done and the derogatory item will remain on your credit report for the balance of the 7 year reporting period, whether paid or not. However, creditors do look at your whole report, not just your score. Paid old debt looks better than unpaid. With this in mind you should try to settle for as little as you can. If the debt is over 3 years old, offer 25%; 2 or 3 years old, offer 50%; less than 2, offer 75%. Lump sum gets the best deals. Payment plans must be short term. Get any settlement agreement in writing and keep it along with your payment proof, forever. Do not give collectors direct access to your bank account. If any of the derogatory items are single entry items like medical and utility bills, negotiate a pay for delete -- you pay $x and they remove the item. This will help your score. But it doesn't work for regularly reported items like credit cards and installment loans. The collection agency can't remove what the original creditor reported. After you get every thing cleared up, you will need at least 24 months of consistent, on time payment history to see improvement in your score.
3. One thing to remember is that debt that has gone to collection status, which is showing a I-9 or R-9, etc., has most likely gone to a collection agency. If you are going to negotiate for less than the full balance, no matter how old it may be, the bureau will show that the account was "settled". This affects your bureau score the same whether you have offered 10% or 75% on the dollar. If the account has "charged off" it is definitely with a collection agency and the best rating you can hope for on that account is "paid charge off". These accounts affect your overall credit score less as they get older. If you pay off any account, the creditor must show it paid. If they do not, you can fill out a dispute form and the creditor must respond in writing to the bureau within 30 days with proof that the status is correct. If they do not, the account must be removed from your bureau. Even after being removed, the account can re-appear because companies do not always update properly. Sometimes an account has to be disputed several times before it is permanently removed. This dispute method is what some companies use when they promise they can fix your credit. If you truly have an account that is disputable, you do not need a company to do it for you. You can do it yourself. The greatest majority of your credit score is calculated on your last 2 years of credit history. If you were to take a "snapshot" of your payment history during that time, you would get a good idea of what the credit bureau computers were basing it on. It is much more damaging to the score to have recent 30 and 60 day delinquency than it is to have 3 and 4 year settled or charged off accounts. The quickest way to get your score to go up is to keep your open accounts current. It will also help to dispute accounts that may have been incorrectly rated on your bureau. Once you keep open accounts current for two years or more, you will be surprised how much your credit score will go up.
4. You need to do some credit repair and learn how to do it. You also need to find a way to add good credit lines and get bad ones removed. Paying off old negatives can hurt you unless you get them to agree to remove it. Making a payment moves the 7 year reporting period forward again. Everything you do needs to be in writing. www.badcreditloansfaq.com
5. Unfortunately, a credit score is a lot easier to damage than it is to repair.  But learning how to fix bad credit may save you from embarrassing loan or credit card denials, or even from being turned down for a new job. If you find yourself in a situation where your credit score has dropped due to late payments, excessive debt, or any of a number of other factors, it is key to take proactive steps to repair your credit by raising your FICO score.  The FICO score is the industry standard for assessing an individual’s credit worthiness and is a numeric grade that is calculated from a variety of historical components around that individual’s payment history and credit management. http://www.low-cost-loan-secrets.com/how-to-fix-bad-credt