How to fix credit and raise credit score?

I'm trying to fix my credit and raise my credit score what are the steps to do that. I read that if you have any debt on your credit report over 2yrs. do not pay it because it lowers your credit score. Is this true.

Public Comments

1. You should always pay your debt. Think about it, you got into debt, why should you not have to pay for it? That doesn't make sense. First of all, never pay someone for financial advice. Pay off your credit card bills, loans, etc as soon as you can. Even if you can only make the minimum payments, do that. Don't miss payments or become late on payments. Only buy what you need. Don't apply for any more credit cards or accept any new credit card offers. Don't take out any loans, unless absolutely necessary. Get a 2nd job if you have to. Make a budget. There are some great tips on www.daveramsey.com Good luck.
2. It's a pretty easy process.... but it takes a long time. You have to be patient. I would consider cutting up most of your credit cards and then adding everything up and decide which one to pay off first. Then when you're done with that one, say you paid $50/mo, add it to the next one. So if you were pay $50 on the next one, you would now be paying $100/mo. And you probably heard wrong about not paying credit cards. You should pay them, but if you haven't paid them and you are close to the statute of limitations for your state then do not pay. When you reach the SoL you legally do not owe that money any more. Also, as far as your credit score it will take a while to go up. Even though credit companies are suppose to report every month, sometimes they don't. or they only report the bad, not the good. And your credit score is a calculated formula, so if after you pay off most of your debt, but still have many cards open & with balances, your credit (FICO) score may still remain high until your debt to income ratio goes down. So, if your income goes up, your credit score can also have the ability to go up. I agree with the previous poster..... do not pay for someone to give you advice. If anything go to your local CCCS. Good luck! email me: vetsmom_rgv i can help 4 free
3. Basic bullet points: -Get a credit report. -Make ALL your payments on time. -Pay off your credit cards, -Don't apply for new credit. -Try to solve any negative/collections items on your file. Invest about 15 bucks and pay for a month of credit monitoring service, get the 3-bureaou (sp.) option. This service usually comes with your credit scores and a nice tool that let you pretend different actions/scenarios so you can see how your scores will change when you do certain actions. Very nice and you will stop wondering.