My FICO score is less than 500! How I can I change 10 years worth of bad credit and raise my FICO score?

I was very stupid and uninformed as a twentysomething and now as an early thirties, I want to correct those mistakes and live a full life......Is it even possible to raise a FICO score that is considerably less than 500? PLEASE, PLEASE, PLEASE help me!

Public Comments

1. first, pay off any debts that you have now. get a new credit card, probably a secured one. borrow only what you can pay back. Try to get a loan from a bank or credit union. if you have to, get someone to co-sign. good luck,
2. First, obtain copies of your credit report from all three bureaus. Review the information to make sure there is nothing being reported that should not be. Items that are older than seven years should not be reported on your file. If they are, send a certified letter disputing those items. Once it has been received and signed for, the credit bureau has 30 days to respond. If there is no response in 30 days, it must be removed from your file. You must request it be removed by proving they have been given 30 days based on the FDCPA guidelines ( a copy of the signed receipt) and another letter is sent certified to ensure receipt of your request. This can be a slow process but well worth it. If the debts are still unpaid and can be reported, contact the creditor directly and negotiate a settlement that is acceptable to both parties..such as payment in full but the debt is not reported as a chargeoff or a certain percentage being paid and no derogatory rating being given in your file. Speak with someone in authority who has the power to make decisions such as this., not the dutiful collector, ask for the President or CEO if necessary. Address your letter to the CEO or President, if necessary and send it certified mail, they will normally have their Executive Relations Department contact you for resolution. When you send correspondence certified mail, they know you mean business. If you don't know anything about the company, go to Yahoo Finance and enter the company name, it will provide direct phone numbers, fax numbers and names of the CEO or President. Faxing the letter to the CEO is good but always send letters regarding issues such as this certified as well. Go to your local credit union or bank and obtain a secured credit card, preferably a Visa in the amount of $300.00 if you can afford to do so. Make small purchases (i.e. $25.00, $20.00 etc.) and pay your bill on time every month. Make sure your payment is received prior to the due date. Do this consistently for six months or longer. Your credit file will reflect a consistent payment history after six months and this will improve your score. Pay your payments directly to the bank, no automatic deductions from your checking account. Automatic deductions from your checking are not considered as "direct"payments" and they score you lower for doing this. While it is convenient, it can hurt you. Follow this plan and see what happens. Good Luck!!!
3. http://www.expert-credit-advice.com/credit_repair_service.htm worked for me.
4. Bad credit is one of the worst problems to have... however there exists a solution. I will hereby talk from my personal experience. I did debt consolidation a couple of years ago, however If I had to do it again I would pay to some minor details, if someone wants to get out of debt today it is pretty easy with a debt consolidation plan, however it may get a bit tricky at times, I suggest you get as much information as possible online on this first, a good place to start in my humble opinion is astraight to the point ebook with question and answer I found : http://umgarticles.atspace.com/debt-consolidation.htm if it helps kindly remember me in your voting!.. cheers!
5. Some of the points Chris J made are good, but I have to disagree with his recommendation to obtain any sort of credit card. Easy credit and lack of self control is probably what put you where you are today. Trying to manage some "good credit" while you are fixing the "bad credit" is a losing proposition. Develop a budget and focus on paying off all of your outstanding debt. DO NOT use credit for anything while you do it. Go to a cash system (maybe a debit card). If, and only if, you finally become financially responsible, then you can consider building your credit. Google Dave Ramsey and read about his ideas. Despite the myths perpetuated by the media, you don't need credit. The only credit you should ever use is a home loan. I know someone who had no FICO score and still managed to acquire a mortgage. Your best bet right now is...if you can't pay cash for it, you can't afford it.
6. Youve had a ton of great answers here, especially Chris J. I will only add that it would be good for you to understand how the FICO score is calculated. This way you'll do a better job at raising it AND keeping it up. Here's a great article I found online: http://financebasics.blogspot.com/ Hope it helps!