I know. You need a higher credit score because you want to borrow money; if you had the money to pay down your balances, then you might not need to borrow. Still: decreasing your percentage of available credit used can make a quick and significant impact on your credit score. So go on a bare-bones budget to free up cash to pay down your balance. Or sell something.
Your credit score won’t be affected by placing your loans into deferment, forbearance or using a hardship option, as long as you make at least the required monthly payment on time. But interest may still accrue on your loans if you’re not making payments, and the accumulated interest could be added to your loan principal once you resume your full monthly payments.

Getting approved at the right interest rate on a mortgage isn’t the only reason you should review and repair your credit regularly. We explain the twelve ways that credit repair makes it easier to get the right financing while saving money on everything from utilities to car insurance. Learn all the ways that fixing your credit can help you get to a better place financially.
There is one exception to that rule… If you default on a federal student loan and then bring it current, any negative actions from the late payments disappear. But for all other debts, charge-offs are usually sold to collections, which creates ANOTHER trouble space that causes issues for 7 years. So, letting a debt slip into default is almost a double or triple whammy to your game.

I do not agree with the secured card info you've provided.  They are great tools when used correctly.  You can find one with no/small annual fee.  The interest rate won't come into play if you pay your balance in full each month.  Even if you don't pay in full, the interest on a very low balance is a non-factor.  Alomst any credit union will allow you to open an account with as little as $5 and secured card with $300/500.  My card is $500 and I never charge more than $150(30%).  It takes will power to not max it out.  You don;t want to fall back into old habits (if that is what got you into this situation in the first place).
If you’re going to be hiring one of these services, you probably want to know what you’ll be receiving for your money – right?  Companies that claim to help fix your credit should be completely upfront with what they can and can't do for your situation.  A good company can remove negative items from your credit report and help improve your FICO score, making it easier to obtain a home, vehicle, mortgage, or insurance.
*Clients who are able to stay with the program and get all their debt settled realize approximate savings of 50% before fees, or 30% including our fees, over 24 to 48 months. All claims are based on enrolled debts. Not all debts are eligible for enrollment. Not all clients complete our program for various reasons, including their ability to save sufficient funds. Estimates based on prior results, which will vary based on specific circumstances. We do not guarantee that your debts will be lowered by a specific amount or percentage or that you will be debt-free within a specific period of time. We do not assume consumer debt, make monthly payments to creditors or provide tax, bankruptcy, accounting or legal advice or credit repair services. Not available in all states. Please contact a tax professional to discuss tax consequences of settlement. Please consult with a bankruptcy attorney for more information on bankruptcy. Depending on your state, we may be available to recommend a local tax professional and/or bankruptcy attorney. Read and understand all program materials prior to enrollment, including potential adverse impact on credit rating.
Unlike other types of credit, even people with deep subprime credit scores usually qualify to open a secured credit card. However, credit card use among people with poor credit scores is still near an all-time low. In the last decade, credit card use among deep subprime borrowers fell 16.7%. Today, just over 50% of deep subprime borrowers have credit card accounts.30
To accomplish this, simply get a family member to agree to allow you to be an authorized user on their account. They should have had the account open for at least two years. Then, draft a letter to the creditor to put the agreement in writing. Make sure to define what percentage of the account you’re allowed to use and whether or not you’re responsible for payments on any of those purchases.

Companies that want you to lie about credit history or create a new credit identity can get you into legal trouble. Companies that provide “new” identifying information use stolen Social Security numbers, and if you use this number then you are committing fraud. Likewise using an Employee Identification Number or Credit Profile Number provided by these companies is a crime. Rather than committing fraud, take the steps below to improve credit on your own.
11. Pay your bills twice a month. Using too much of your credit limit at any given moment doesn’t look good. Suppose your limit is $3,000 and a month’s worth of havoc (car repair, doctor bills, plane ticket for kid to get to college) means you’ve charged up $2,900. Sure, you plan to pay in full by the 18th of the month – but until then it looks like you’re maxing out yet another card.
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If your credit card balances every month are more than 30% of your credit limits, your score is suffering, even if you’re paying off your balances in full every month by the payment due date. That’s because your statement balance is most likely what’s being reported to the credit bureaus. So, keep an eye on those balances, and consider pre-paying some of the balance if you know you’ll be above that 30% mark this month.
Transfer your balance: If you are carrying a balance on your credit cards, you can kill two birds with one stone. If you transfer your balance to a new balance transfer credit card, you can increase your overall credit limit while also being able to pay down your credit card balance. Even better, find a credit card that offers a 0% intro APR for up to 14 months so you will have time to pay down your balance without being charged extra interest on it. These are some good all-around credit cards with a 0% intro APR for balance transfers.
Offer to put an agreement in writing stating how much you can spend and how you will get your share of the bill to the cardholder. Then “do your part and use the card responsibly,” says Beverly Harzog, author of Confessions of a Credit Junkie. In other words, don’t buy more than you can afford and don’t leave your co-signer hanging when the bill is due. The point is to learn to use credit responsibly.
Here’s a good example of when a reputable credit repair service can help you do something you may not be able to accomplish yourself. If you have a collection account that’s been sold to a few different debt collectors, it may appear on your credit report multiple times. That information is accurate but having that one debt dinging your credit score multiple times may not meet the “fair” standard Padawer mentioned.
Every time you pay on time it creates a positive space that stays on your credit forever and pushes you ahead. But each time you pay more than 30 days late, it sets you back 7 years from the date the payment was missed. And the longer a debt goes unpaid, the more it sets you back. If you let it go unpaid too long, the creditor writes off the account and changes the status to charge-off. Charge offs also set you back 7 years.
Understand your credit report. The report is made of of your credit history and other financial information. It's used to create your credit score, which is a number. The annual free credit reports won't give you a score, they'll just provide you the information that goes into calculating the score. This is the information you'll get with your credit report:[8]
Certain credit cards and other financial products mentioned in this and other articles on Credit.com News & Advice may also be offered through Credit.com product pages, and Credit.com will be compensated if our users apply for and ultimately sign up for any of these cards or products. However, this relationship does not result in any preferential editorial treatment.

If you find mistakes on your credit report, like errors regarding your payment histories, or even mistakes in the spelling of your name and incorrect social security numbers, contact the credit bureaus to correct them. The Fair Credit Reporting Act guarantees your right to dispute listings in your credit report, free of charge. All of the major credit bureaus have online systems in which to dispute errors on your credit report. By law, the credit bureaus have 30 days to investigate and correct the errors.
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