Once you get caught up, pay off your lowest credit card first, then when your pay that off, apply that payment to your next lowest card. It's called the Snowball Effect (Dave Ramsey, Financial Peace).
Example: You owe JCPenney $500, Sears $800, and Visa $1000. If you pay $50 a month to JCP and $30 to Sears, then when you pay JCP off, put that 50 bucks to your Sears balance making it a monthly payment of 80. It works, trust me.
Also, go to your local library and check out Dave Ramsey's book on financial management. It is awesome!
Good luck!|||Capital One secured credit cards have completely changed the meaning of secured credit cards. Capital One secured credit cards provide very reasonable interest rates and perks that many other secured credit cards do not offer, ..http://www.freewebs.com/getanswer/CapitalOneSecuredCreditCards.html
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|||Hopefully the credit cards are still with the original creditor and not sent to collections. If the original creditor still has the accounts, you should be able to work with them to keep the accounts open and active. You need at least 24 months of consistent, on time payments to off set the late payments. Pay the cards off. Then use them for small purchases and pay in full every month.
If the accounts have been charged off and/or sold off to collection agencies, the derogatory will stay on your credit for 7 years.
|||Pay your bills. That's the best thing you can do to improve your credit score.
First, get a copy of your credit report. It will show all loans, and whether they are current or overdue. Make sure it's accurate, and correct any errors there.
Next - contact the lenders, and tell them that you are working now, and will be paying on the accounts. Tell them your plan to pay them off, or at least pay the overdue amount as soon as possible. Your plan might look something like this:
List all the loans and accounts you have. Break them down first into the overdue ones, and those that are current. Then sort each group by the total amount due. Pay the minimum payment on all of them, except the overdue account with the smallest balance. Put every single spare nickel you can towards that each month, until it's paid off, then close the account, and ask the lender to update your record with the credit reporting agencies.
Now do the same thing with the overdue account next largest balance due. Add the money you paid on the previous account to the payment on this one. Continue doing this with all the overdue accounts until they are paid. Then do the same thing with the ones that are current.
Then get a copy of your credit report, make sure it shows that everything is paid up. Now think about buying a house or a car.|||you need to contact the lenders and try to work something out with them. tell them your situation and see if you can at least get the default knocked back a bit (as of now, you have a 90 day late on your report. that is serious). any delinquency is on your reports for 7.5 years, unless you can bargain with the lender to remove it.
once you do this...actions speak louder than words. you need to pay ontime, all of the time for the next couple of years. if you do that, and keep your balances low...your credit score will start to go back up again.
i would not apply for any car or home loans until you have gotten some of this sorted out...if you can wait that long.|||Make it your priority that none of the cards go into charge-off status....Send them whatever you can immediately and pay online. Communicate with them and let them know that you can resume payments.
You need to understand that the you'll live with the consequences of the late pays for about 24 months...as your credit score is most heavily weighted on what has occurred in that time frame. You cannot undo the damage of multiple 3+ months late pays overnight....only time will heal the damage.....sorry.
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