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Credit Repair Identity Issue Solutions

Credit Repair and Your Identity

There are credit repair techniques for everything from repairing errors on your credit report to dealing with identity issues. In all cases an intimate knowledge of relevant legislation is helpful in resolving the problem quickly. If you have concerns about illicit use of your identity credit repair offers a systematic way of evaluating and curing the problem, quickly and safely.

Evaluate the Situation

If you review your credit report and discover an account that does not belong to you, you may be a victim of identity theft, or you may not. Identity theft is a serious problem, and there is a powerful credit repair tool that can be employed to solve the problem rapidly, but before taking action you should evaluate the issue to insure that you are reacting in an appropriate manner. Not all unidentified accounts are the result of identity theft.

File Merger Errors

When the credit bureaus compile the accounts that are to be included on your credit report their software utilizes a matching criteria algorithm. This matching criterion is designed to allow for a small number of mismatches. There is a reason for this. A completely rigid matching policy would keep prospective lenders from viewing your credit report if a data entry person were to make the smallest mistake, and human errors do occur. Unfortunately, because of this matching flexibility it is possible that someone else’s accounts could appear on your report if they have enough similar identify characteristics. When this happens it is called a file merger error, which is easily corrected with credit repair.

Fixing File Merger Errors

You need a method to determine if you are a victim of a file merger error rather than identity theft. This will insure that you are not implementing the credit repair identity theft solution needlessly. Here is how you can tell. Once you have identified all of the questionable accounts on your report just call the creditors and ask if they really have a record of the accounts. If they do not have a record of the accounts in your name it is not identity theft, but a file merger error. All you need to do is to write to the credit bureaus, identify the erroneous accounts, provide your identification, and ask them to block the other person’s accounts. Your credit repair effort should do the trick within 30 days.

Identity Theft Cure

If, when you call the creditors to ask if they have a record of the questionable accounts, they say yes, you will need to put a more potent credit repair technique to work. The Fair Credit Reporting Act requires the credit bureaus to block the accounts that you have identified as not belonging to you. And they must do so within 4 days of receiving your request. Once the accounts are blocked from reporting, the credit bureaus will initiate an investigation. In order to put this powerful credit repair tool to work you must provide the credit bureaus with a police report listing the fraudulent accounts, your identification, and a signed statement that none of these accounts are the result of any transaction entered into by you. By law, if you provide your request to one of the three major bureaus they are required to alert the other two bureaus, but I suggest that you send your request to all three simultaneously.

Fraud Alerts

The Fair Credit Reporting Act also allows you to place a fraud alert on your credit report if you are concerned that someone may attempt to use your identity to apply for credit. I recommend this credit repair aid, it’s quick and easy. Once you request the fraud alert a statement will be inserted on your reports requesting that prospective lenders contact you by phone before extending credit. This is helpful and can go a long way towards protecting your identity, but unfortunately it is not foolproof for the reason that some lenders do not look beyond your credit score when approving a loan. For optimal credit repair security you should consider joining a monitoring service.

Monitoring Services

A monitoring service is a great compliment to your credit repair efforts. Credit monitoring services are offered by all three of the major bureaus. Once you are a member they will send you an email anytime there is a change to your credit report. You will be notified not just when there is the appearance of a new account, but anytime there is an inquiry. This can be very helpful to your credit repair project. If an error appears you will be able to deal with it immediately. And if someone does attempt to use your credit you will be notified of the fraudulent inquiry and be able to contact the creditor. Good luck!

1 July 2009 | Credit | No Comments

Choosing the Best Credit Repair Service

Introduction

Credit repair companies have a mixed reputation. Millions of people have experienced dramatic benefits from hiring professional services. On the other hand, many have been robbed, to put it bluntly. There are excellent reasons to hire a service, but you should know how to identify a good one and what tasks you should expect them to perform. Here are some key points that can help you choose a company that will deliver a positive experience.

Trust Yourself

Before selecting a credit repair company, pick up the phone and make a few calls. Most companies offer free initial consultations. Take advantage; this is your opportunity to make a careful and informed decision. Take some time before making your calls to think about your goals and issues. I suggest that you have a written list of questions in mind. Listen carefully to the company representative as they answer your questions. Are you comfortable? Trust yourself. If you are not happy with the conversation you should move on to another company.

Check the Better Business Bureau

Take a careful look at the Better Business Bureau records of the prospective companies on your list. A complaint or two should not rule anyone out, but a significant pattern of problems is a bad sign. You will also notice that complaints are categorized. If the majority of complaints are in a single category it may be an indication of the type of experience you will have. If the company offers a money back guarantee and you see complaints about their failure to refund money you might be right to question the integrity of the company.

Consider the Costs and Payment Options

Credit repair companies are governed by the Credit Repair Organizations Act (CROA), which is very specific about allowable fee structures. Credit repair companies are only allowed to charge after work has been performed. This is not to say that the entire process must be complete before they require payment. A typical and very compliant approach to billing is to charge a setup fee after the initial setup and consultation is complete, and then to bill monthly at the end of each month of service. Up- front fees are not allowed, so if you are asked to pay for the entire program in advance you should reconsider using that company.

Longevity Matters

There may be some very good new companies in the business, but unless you are very comfortable with their presentation and credentials you might be headed for a poor experience. Successful credit repair requires experience. There is quite a bit involved. On one hand, the effectiveness of the program depends on the company’s ability to deal with the credit bureaus, collectors, and creditors. Time brings finesse, and finesse brings results. In addition, over the years we have heard of many credit repair companies collapsing from their own inability to manage the work flow. Credit repair requires a unique ability to organize, track, and respond to correspondence. There is no substitute for experience.

The Breadth of Service

It is essential to choose a credit repair company that does more than send out letters to the credit bureaus on your behalf each month. The range of services that are needed to produce the best results include help in building new credit, debt validation services for those with active collections, statute of limitation research, the ability to escalate a dispute to a creditor level if appropriate, and FICO score optimization counseling. There are many credit repair services that are entirely software oriented and do nothing beyond sending letters. These services are fine for someone who is fully versed in all aspects of credit repair and only wants help sending letters to the bureaus, but if you want more comprehensive help you should look elsewhere.

19 June 2009 | Credit | Comments Off

Six Super Credit Repair Tips

Introduction

Credit repair success has little to do with common sense and lots to do with technique. If you don’t make the right moves, the ones that are favored by the FICO scoring model, your credit repair effort will produce less than stellar results. But make the right decisions and you will be amazed at the quick progress you will see. Here are six super tips to get your credit repair effort on track.

Build New Credit

If you don’t have any open credit cards this tip is for you. Too many people start their credit repair project thinking that they will get a couple of new cards after they have cleaned up their reports. This is a serious tactical error. You need to start rebuilding your credit now. Two new credit cards can be worth up to 150 points on your scores within six months. Don’t worry that you can’t get approved for regular credit cards, just get two secured cards. They are the perfect credit repair tool. You won’t get denied and before you know it your scores will be on their way up.

Reduce Your Balances

Once you have your credit cards you need to manage them for the best credit repair results. Don’t let them go to zero, as the FICO scoring model reduces the score value of inactive cards, and keep the balances low. This is true for all credit cards, but even more important for those secured cards you just got. Ideally you should only use twenty percent of the full amount available. As your balances increase your scores will fall. This is important. A maxed out card can cost you over 100 points.

Avoid Store Cards

On the subject of credit cards, they do not all have the same value for your credit repair project. Stick with the majors like MasterCard and Visa, and avoid store cards altogether, at least while you are trying to rebuild your credit. The reason for this admonition is that the FICO scoring model will lower your scores when it sees that you have chosen to utilize this typically inferior form of debt. Store cards are doubly dangerous because they are typically approved for very small amounts, often just above the amount of your purchase creating an instantly maxed out account.

Cool Your Jets

While you are working on credit repair it helps to minimize the amount of credit activity that you engage in. Open two new secured credit cards as mentioned, but otherwise avoid excessive activity. New inquiries have a small impact on your credit score, but they add up. In addition, new accounts will depress your scores for the first few months they report. In the case of new secured cards this is a necessary sacrifice that will pay off in a big way over time. But, for the moment, cool your jets and let the good stuff happen.

Validate Debts Quickly

If you receive a collection letter open it! Don’t stick it in the drawer until you have the nerve to deal with it. The Fair Debt Collection Practices Act requires collectors to provide proof that they have the legal right to collect, as well as an accounting of the amount of the collection. But they only have to do this if you ask for it within 30 days of getting the collection letter. This process is called debt validation and is a valuable aid to your credit repair effort. If the collector cannot validate the debt they must stop collection efforts and must not report the account to the credit bureaus. If they do validate the debt you will have the information you need to consider a negotiation strategy.

Get Some Credit Repair Help

You don’t have to do this on your own. There are many reputable credit repair services that will help you reshape your credit reports and improve your scores. In addition to the strategies noted above there are dozens of powerful credit repair techniques that might fit your needs. Many busy people opt to hire a professional credit repair service rather than trying to learn the entire process from the ground up. If you are busy and don’t have the time to do the job properly, just hire a pro. You will be glad you did!

18 June 2009 | Credit | Comments Off

Credit Repair, Expectations, and Reality

Introduction

Credit repair can produce dramatic results, potentially transforming the appearance of your credit reports and boosting your credit scores. Credit repair may even deliver major results in a reasonably short period of time. But it is not a magic cure for your credit woes; you will need to do some work. It is important at the outset of a credit repair effort to have a realistic perspective. But don’t lower your expectations; just make the effort needed to produce genuinely awesome results.

Organizing Your Effort

There are three things you must do to insure that you credit repair project yields the best possible results. You must get control of your existing obligations by building a realistic and practical budget. You must learn how to manage your account balances properly to fully optimize your credit scores. And you must learn the effect each type of credit can have on your credit scores. And there is more to this than meets the eye. Mastering the subtle details can make a world of difference in your credit scores, so let’s get to work.

Making a Budget Work for You

Don’t be afraid of creating a budget. Having a budget does not mean that you must embrace a self-imposed austerity plan. Creating a budget is an information gathering process. The more you know about your finances the better off you will be. When the time comes to make a decision that will affect your monthly cash flow it should be made in the context of good information. Too many financial errors have occurred simply because of a lack of information. You are going to be work hard on your credit repair project. You can’t afford to fly blind.

Get a pad of paper and list everything that you spend money on. Take your time and make sure that you have included everything from the big monthly obligations to your daily incidentals. Don’t forget an item because it occurs only occasionally, like an annual vacation. Just estimate the total amount you will need and divide it by twelve to determine the amount you should set aside each month. The goal of this exercise is to get a complete picture of your expenses. For your long term credit repair success you must be able to live within your means.

Your Balances and Your Credit Scores

There was a time when you would have great credit if you paid your bills on time. This is not longer enough. You can make your payments on time for years and still have terrible credit scores if you don’t manage your revolving balances properly. For credit repair results you must understand the relationship between your balances and your credit scores. The FICO scoring model grades you on the amount of available credit that you use. The relationship between an account balance and its limit is called the balance to limit ratio.

For the best possible credit score you should reduce your balances so that you are using less than 20 percent of the available credit line. Specifically, the FICO model recognizes balance to limit ratios in 20 percent increments; 20, 40, 60, 80, and 100 percent. The lower the balance, the higher your score will be. Don’t underestimate this. You could lose over 100 points by running up a revolving balance to the limit.

Using the Right Kind of Credit

When it comes to credit repair there are big differences in the type of credit you use. The FICO scoring model likes some credit types, but will penalize you for others. If you want to improve your credit scores you should use mainstream credit cards like MasterCard, Visa, American Express, and Discover. And you must avoid consumer credit, including store cards and the type of financing offered by furniture and electronics stores.

This type of debt is useless for credit repair success, and can even drag your scores down. There are a variety of reasons for the way FICO treats consumer debt; it typically comes with poor terms and high rates. It may also come with an attractive, but dangerous no-payment option which will mature into an unwieldy repayment plan. Still, this type of debt can be convenient, so use it if you wish, but pay it off when you need your credit scores to be at their best. Good luck with your credit repair!

17 June 2009 | Credit | No Comments

Credit Repair Can Save You From Collectors

Using Credit Repair Properly

Credit repair is about more than just disputing questionable derogatory data with the credit bureaus. A truly effective credit repair service will incorporate appropriate use of all available legal leverage to protect your rights. Collectors, as a group, are particularly troubling, both as data furnishers to the credit bureaus, and in their own right as regards the accuracy of their own information management. If you have a collection on your credit report, or are contacted by a collector, there are a couple of powerful credit repair tools you can use to level the playing field, and maybe even make those collections disappear.

Collectors and the Credit Bureaus

Collectors buy and sell debt. It is not unusual for a single account to change hands four or five times in its lifetime. This is problematic from a credit repair perspective because the probability of reporting errors increases dramatically as the account moves from owner to owner, each of whom may report anew. And of course, it is because of the potential for error that credit repair is a necessity. By law, collectors are supposed to withdraw the reporting of an account upon its sale. This means that you should never have more than one collection for the same debt. If you review your credit report and discover that you have redundant collections you have a credit repair opportunity.

Collectors and You

If you get a collection letter in the mail you need to take action quickly, or if you are a member of a good credit repair service, you need to send them the notice so they can take action on your behalf. The operative law is called the Fair Debt Collection Practices Act (FDCPA) and it requires collectors to provide substantive documentation to prove that they have the legal right to collect, and an accounting of the amount claimed. Specifically they must provide you with this information if you request it within 30 days of receiving the collection notice. If the collector cannot provide the information required they are not allowed to continue their collection efforts, and if they have already reported to the bureaus they must stop reporting.

Credit Repair and Debt Validation

As mentioned, the process of requesting supporting documentation from a collector is called debt validation and must be done in writing. Like all credit repair communications it is best to keep it simple. The collector does not want to hear your story. Just ask them to validate the debt. You may specifically request proof that they currently own or have the right to collect the debt, a copy of your original account agreement, or some signed proof of your liability, and an accounting of the amount claimed due. Collectors do not have a specific amount of time to satisfy your request. If they don’t validate the debt, you win; they should disappear from your life. If they do validate the debt, you still win; now you have all the facts and are almost in a position to make an appropriate decision. But before you do anything else you must check the statute of limitation.

The Statute of Limitation Solution

The final credit repair tool that you must have in your arsenal before paying or negotiating a valid debt with a collector is the statute of limitation (SOL). The SOL is the length of time that a collector can use the court to enforce the collection of a debt. Or, in plain English, it is the length of time that they can sue you. In practice, they might sue you after the SOL has expired, but if you show up at court and claim your SOL defense the case will be dismissed. Statutes of limitation are specific to both debt type and state. SOL charts are easily found on the web. You will be happy to discover that SOLs are almost always far less than the reporting period limit. If the debt is past the SOL, and you inform the collector that you are aware of the fact, they should be very willing to negotiate. For credit repair purposes you might even try to negotiate for them to remove the account from your report; always a nice touch! Good luck!

16 June 2009 | Credit | No Comments

Debt Validation Tips for Credit Repair Success

Introduction

Debt validation is a powerful credit repair tool, but like many credit repair techniques it must be approached properly to get the optimal outcome. When done right debt validation can provide wonderful results including proof that the collector has the legal right to collect and an accounting of the amount due. And there are many cases when the collector, unable to provide the documentation required, will quietly vanish from your life.

Respond to Collection Letters Quickly

Collection letters must include, or be closely followed by, a written notice including your right to dispute the debt within 30 days. It is important to know that collectors do not like to validate debt or process credit repair demands. From a collectors perspective they are playing a numbers game; they want to send out collections letters and collect money. They would rather not tangle with debtors over the details. If you do not dispute the debt within the 30 day period allowed the collector is likely to ignore your request.

Credit Repair Options

Once you have a collection notice in hand there are a couple of credit repair strategies you should consider right away. If you don’t recognize the debt you have the right to request the name and phone number of the original creditor. Collection notices are supposed to include the name of the creditor to whom the debt is owned, however in the case that the debt has been sold and resold the original creditors name may not be indicated. But if you do recognize the debt you should research the statute of limitation before going any further.

Statutes of Limitation

The statute of limitation (SOL) for the collection of a debt is the maximum period of time that a collector can file a lawsuit. To be precise, a collector can file a lawsuit after the SOL has passed, but should they do so you can have the suit dismissed on this basis. It is important to your credit repair effort to know that the SOL clock starts on the day that you first become delinquent. This means that you need to count from the first time you missed a payment in the sequence that led to the chargeoff or collection status. SOLs are state and debt type specific and are easily found on the Internet.

Negotiation Opportunities

If the subject collection is beyond the SOL you are pretty much in the clear. You can choose to contact the collector to negotiate the debt if you wish. Those looking for the best credit repair outcome may want to take the opportunity to negotiate for complete account deletion. Once a collector knows that you are aware of the SOL they should be extremely willing to settle. You also have the option of ignoring the debt. The reporting period limit will roll around and the debt will fall off your credit report. If you decide to ignore the debt and the collector continues to contact you, you may opt to send them a cease communication letter, another useful credit repair tool. Once they receive this they will stop all communications.

Validate the Debt

Assuming that you decide to validate the debt you must do so in writing. Keep your request as simple and clear as possible. As with all credit repair communications, do not go into a story or explanation. Just ask for validation of the debt. I strongly recommend that you specifically list the documents and information you want them to send you. Ask them for proof they have the legal right to collect the debt, a detailed calculation of the amount claimed owed, and a copy of your original signed contract or account agreement.

Right and Wrong Results

If a collector cannot validate the debt they should stop collecting and not report to the credit bureaus. This happy credit repair outcome occurs quite often. But it does occasionally happen that they send nothing more than an internal printout or some such thing, and then continue their collection efforts. This can make your credit repair project difficult. There is ample case precedent to support the argument that a collector must provide the documentation listed above, but you may have to go to court to get satisfaction. If you reach the point where you are ready to get into a legal battle you should consider consulting an attorney so you are fully prepared when you get in front of the judge.

Credit Repair Help

If you begin your debt validation journey on your own and find that you are confused you should reach out to a credit repair service where a professional will review your entire case, research the SOL, prepare and send the letters as needed to get the best possible results. You do not have to do it alone. Reputable credit repair services are extremely affordable and will insure that the job is done properly. Good luck!

3 June 2009 | Credit | Comments Off

Credit Repair and Credit Score Mastery

FICO is Not a Report Card

Your credit score is not a report card meant to grade you on your past payment history. Are you surprised to hear this? If you are in a credit repair program and are hoping for truly meaningful progress you should understand the true intent of the FICO scoring model; you must learn to think like the engineers that developed the algorithm.

Measuring Risk of Default

The FICO credit score is designed to measure the likelihood that you will default on your obligations. There are many subtle factors that FICO considers in its calculation. Each of these factors is utilized as a predictor of future behavior. Some of these factors make perfect sense, but others, less logical, are likely to take you by surprise and hinder your credit repair progress, so don’t let them catch you unawares.

Inquiries

When you apply for a new credit card, auto loan, or any new debt your scores will dip slightly. The reason that FICO lowers your scores for each inquiry is that it sees your shopping as a potential threat to your budget. Each inquiry will impact your scores by between 1 and 5 points depending on the extensiveness of your credit. The more established your credit the less impact an inquiry will have because you have demonstrated skill in opening and managing new accounts.

New Accounts

New accounts will put a significant, but temporary, dent in your credit repair progress. The reason is simple; FICO recognizes the new account as a threat to your budget. The impact on your credit repair progress will fade quickly as your demonstrate the ability to manage the new debt responsibly. And, as with inquiries, the impact of a new account will depend on the extensiveness of your credit. The more established your credit the less of an impact on your scores.

Revolving Balances and Credit Repair

Revolving balances are a big factor in any credit repair program. If you want to improve your scores you must reduce your balances. Buy why is this? The FICO engineers are aware that high revolving balances are likely to occur when money is tight. Conversely low balances occur when money is plentiful. FICO sees a tight budget as a forerunner of potential default and will lower your scores to warn potential lenders that it may not be the right time to lend you money.

Consumer Debt

Consumer debt is a contentious issue among those who are caught unawares by this little wrinkle in the credit scoring formula. FICO carries an automatic bias against this type of debt regardless of any of the potential benefits that may be built-in. Consumer debt includes store cards and store financing most commonly used for the purchase of furniture and electronics. This type of debt is usually pricey and frequently comes with no-payment deals that mature into precarious repayment plans after a fixed term. If you are in a credit repair program you should avoid this type of debt.

Active vs. Inactive Accounts

You know that it is important to keep your credit card balances low to optimize your credit repair results. But did you know that if you pay those cards off and let them sit unused the credit score value of that account will start to fade away? FICO recognizes that many credit cards get retired, both by consumers and creditors, and yet continue to report. Logically, an inactive card should not count towards your credit worthiness if it is not currently in use.

Credit Repair

If you would like your credit scores to reach their full potential and you don’t feel up to the task of evaluating every possible option, just contact a credit repair professional. You don’t have to manage the job alone. A credit repair professional will be happy examine your credit reports and identify all of the opportunities to boost your score. Good luck!

2 June 2009 | Credit | No Comments

Credit Repair Techniques of the Pros

Introduction

Effective credit repair requires a combination of technical and legal skill along with a healthy dose of common sense. The technical approach requires an understanding of the inner workings of the FICO credit scoring model. The legal approach uses aspects of the Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA) to gain maximum leverage when dealing with the credit bureaus and collectors. And finally, common sense brings good old fashioned debt and credit management into the picture. The technical and legal approaches are essential to any effective credit repair effort, and can produce exciting results, but without simultaneously infusing a little common sense into your program you will disappointed with your outcome. Here are our favorite credit repair techniques of the pros.

Balance Reduction

The FICO scoring model recognizes five very specific levels of credit card usage. Understanding this technical aspect of credit scoring is essential to your credit repair success. Depending on the overall content of your report, your card balances can swing your scores by as much as 150 points, enough to mean the difference between loan approval and denial, or between the lowest interest rate available and the highest. The levels of card usage recognized are 20, 40, 60, 80, and 100 percent. To optimize your scores reduce your balances below 20 percent usage.

Authorized User Accounts

Authorized user accounts provide an interesting technical credit repair tool. The FICO ’08 release of the Fair Isaac scoring model blocked the score benefits from purchased or brokered accounts, but specifically left the benefits from legitimate family member accounts. Here is how it works. If a willing family member or friend adds you to one of their excellent credit cards as an authorized user you will inherit the score benefit of that account. Just make sure that the donors account has a perfect payment history, a reasonably low balance relative to the limit, and has been open for at least three years.

Challenge Collections

One of the most useful legal credit repair angles involves the presence of collections on credit reports. By law, when a collector sells a debt to another collector, or sends it back to the original creditor, they are required to remove the account from your credit report entirely. This rule is most often ignored for the sad reason that there is no incentive for them to bother complying. Take the matter into your own hands and dispute all questionable collections on your credit report. You might want to consult a credit repair expert in advance to explore related issues like calculation of original default date, statute of limitation, and reporting period limits.

Validate Debt

Another handy legal credit repair tool is debt validation. Under the FDCPA, the legislation that governs the collection industry, you may request valuable documentation from a collector within 30 days of receiving a collection letter. Upon receiving a collection letter you may write to the collector and ask them for legal proof that they currently own the debt, and an objective accounting of the amount they say is due. If they cannot furnish the requested documentation they must cease reporting and all collection efforts.

Avoid Consumer Debt

Consumer debt includes store credit cards and financing typically offered by furniture and electronic stores. Avoiding this debt combines common sense with a little technical credit repair knowledge. The FICO scoring model carries a bias against this type of debt so you are at a score disadvantage right away. And although opening an account at the point of purchase may offer some convenience, this type of debt is most often carries a high interest rate and unfavorable terms. In many cases you may be offered fixed term no-payment options that can mature into stressful repayment requirements. You may be better off waiting until you can afford to pay cash.

Budget and Save

If you really want to support your credit repair effort and insure against unforeseen events that may cause you to fall behind on your payments you should build a budget. An intimate understanding of your entire financial picture is essential to long term stability. And more to the point, when you have taken the time to examine your own finances you will be able to make clear and responsible purchase decisions. Once you have built a budget you should start a saving plan. Contribute each month with the same sense of commitment and obligation that you feel towards paying your electric bill or rent. Good financial management leads to long term wealth and the credit repair insurance that will serve you for years to come.

1 June 2009 | Credit | Comments Off

The Perfect Credit Repair Roadmap

Introduction

Are you considering credit repair, but don’t know where to start. You can hire a reputable credit repair service to manage the job for you, but you still must participate in the process. Here is a roadmap of the path you should follow if you want real, lasting success. Happy trails!

Examine

Are you ready to get your credit repair journey underway? You will need to get your credit reports. Your efforts must focus on all three major credit bureaus, Experian, TransUnion, and Equifax. You can get your reports individually form each of the bureaus, but for ease of use and to facilitate your credit repair success I recommend that you get a nice user friendly tri-merged report. It will be easier to work with and save you time and frustration.

Doubt

When it is time to proofread your reports you need to adopt an attitude of doubt. No longer should you automatically accept what is in writing. Credit reports are the product of a flawed system prone to errors. Credit reporting errors can easily translate into dollars. Don’t be the victim of these costly mistakes. If you want credit repair success give yourself the benefit of the doubt; if an item does not look right, dispute it.

Dispute

If you are in a credit repair service you will not have to worry about this step, but if you decide to manage the dispute process yourself there are two rules. One, do it in writing; online disputes include fine print that can create a disadvantage if you need to re-dispute an item that was verified the first time. Two, keep it simple; the credit bureaus do not want to know your story. Keep your request as clear and minimalistic as possible.

Rebuild

If tough times have left you with no open accounts it’s time to rebuild. Given the current state of the credit markets your credit repair rebuilding efforts will probably need to utilize secure credit cards. Just do it. This will require a smallish investment, but it is worth it. Your credit scores are based on both the positive and the negative. While you work on cleaning up your report you must work on rebuilding your good credit.

Manage

Once you have a couple of secured credit cards open you need to manage them properly. A little misstep can send your credit scores into a tailspin. But don’t worry, it’s not hard. Just make sure to make your payments on time and keep your balances down. The ideal situation while you are in credit repair mode is to use only 20% of the available limit.

Budget

Don’t let the past repeat itself. Now is the time to make sure you have a grasp of your complete financial picture. Build yourself a budget. Get a pad of paper and write down every expense that you can think of. Make sure to include everything from the smallest daily outlay, like lunch, to the big ongoing expenses like rent. Once you have listed all of your expenses compare the final number with your take home pay. Make sure you are not living beyond your means.

Save

While you are analyzing your financial situation consider making room for a regular contribution to a savings account. A savings account will allow you to handle unexpected expenses without falling behind on your bills. This will insure that your credit repair progress continues without interruption. As your saving account grows you will also experience the wonderful feeling of confidence and stability.

Succeed

All you need to do now is to stay the course. As you persist in your dispute process with the credit bureaus you will see your credit report gradually transformed before your eyes. And as you continue to manage your new secured credit cards you will be amazed to see how your credit scores respond. And let’s not forget the wonderful feeling that comes from managing your finances properly and watching your savings account grow. Now you can join the millions of others who have discovered the fact that credit repair really works!

27 May 2009 | Credit | Comments Off

Credit Repair Life Lessons

Introduction

The credit repair stories you are about to read are true. They are meant to entertain as well as educate. Credit repair is not difficult. But it takes some thought. For those who approach credit repair cautiously success will be certain and satisfying. For those who act hastily the outcome can be less than happy. The good news is that mistakes can be corrected, and with any luck the lessons learned will lead to great success, as you will read below.

Don’t Forget to Rebuild

Jason started out his credit repair program with a lot of enthusiasm. He was thrilled to see the derogatory items come off his report month by month. After almost six months of credit repair he went to MyFICO.com to check out his scores and was disappointed to see that they had risen only marginally. He consulted an expert about the situation. The credit repair professional explained to him that derogatory information had been depressing his scores, but without positive information his scores would not rise satisfactorily. So Jason opened two secured credit cards, making sure to pay on time and keep the balances low. It took some patience, but six months later, Jason checked his scores and was astounded to see that they had risen 150 points. It was a wonderful outcome.

Watch Those Balances

Becky had been in a credit repair program for a few months and her credit scores had risen dramatically. Her goal was to buy a house and she felt that she was almost ready. Several weeks before she was going to apply for her mortgage she bought a new television and paid for it with her credit card. She thought it would be great in her new home. When Becky applied for her mortgage she was shocked that her scores were 100 points lower than they had been only 45 days prior. Her credit repair consultant looked at her report and saw that the purchase of the television had pushed her credit card balance to the limit. At his advice she reduced the balance and a month later she re-applied for her mortgage, this time there was no problem. Her scores were higher than ever and she was approved for a great low rate mortgage.

Check the Statue of Limitation

Ethan was contacted by a collector who offered him a tempting deal of twenty-five percent off the original balance owned. The deal seemed fair, but because it was a significant amount of money Ethan decided to consult a credit repair expert first. The credit repair expert researched the statute of limitation (SOL) and calculated the amount of time that had passed since the original default date. It turned out that the debt was two years beyond the expiration of the SOL and only one year short of the reporting period limit. The credit repair expert explained to Ethan that because the debt was past the SOL the collector did not have legal recourse, which usually makes a debt very negotiable, and because it was only one year short of the reporting period limit he could even opt to ignore it as it would fall off soon enough. Ethan decided to call the collector and make a reduced offer. Once the collector understood that Ethan knew the law he settled for far less than his original offer. The little bit of credit repair homework saved Ethan thousands of dollars.

The Moral of the Story

Jason, Becky, and Ethan ran into obstacles in their path. But the solutions were easy and delivered terrific results. There is never a cause for worry. If you have taken a wrong turn just correct your course and before you know it you will be enjoying the positive results you deserve. Credit repair is not difficult, but it is essential to pay attention to the details. There is nothing wrong with undertaking the task of credit repair on your own, but if any time you feel that you need help, you should reach out and consult a professional. Your credit is important and every detail matters. Good luck, you can do it!

22 May 2009 | Credit | Comments Off

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