Credit Repair Ultimate Guide
Credit Repair Ultimate Guide
How fast can I improve my credit score?
Credit scoring improvement can be very fast depending on the nature of the problems responsible for the low score. Most consumers have to exercise extreme care in how they allocate whatever funds they have available to devote to the credit clean up. This credit repair ultimate guide will get you started right.
Some problems take a little longer than others because of the need to wait for responses from creditors. Additionally time to appeal a bad decision may be required. Most credit card companies update reports once a month when the statement closes. 2-4 months of diligent effort can get you some real improvement in most situations. Allocating 6 months of focused effort to get into very good credit score status is reasonable in the vast majority of cases.
What is the first thing I should do to improve my credit score?
Pay your bills and credit cards that report to Trans Union, Equifax and Experian, the Big 3 Credit Reporting Agencies, on time. If you are behind on credit card, car or school loan payments you need to get those squared up first. Nothing much can happen until you do. Pay down credit card balances as much as you can. Get your free credit reports from annualcreditreport.com, Go through them with a fine toothed comb. Collections and charge offs can wait. The damage there is already done. We can mitigate the collection and charge off damage later. File written objections to all mistakes or matters that cannot be verified or that are inaccurate or misleading.
If the debt collector does not verify the claim against you within 30 days you will win expungement of the record by default. Read the credit repair ultimate guide thoroughly before proceeding further.
What is the best credit scoring trick?
Piggybacking. That’s what we call becoming an authorized user on someone’s credit card account who has faithful payments along with a long history coupled with a low average daily balance in percentage to the available credit. All those wonderful credit pluses the primary owner earned will be treated as your own by the credit reporting agencies.
Can I fix my own credit?
You can certainly get started by getting things current and keeping them that way. One recent 30 days late notation will do major lasting damage to your score. Pay down credit cards. Stop applying for new credit unless your file is thin. If you don’t have any credit cards get at least two secured credit cards. These things have to be done. An expert can help you to plan and prioritize as well as how to knock off aged entries and entries that cannot be verified…sometimes having some of the negative entries expunged without a trace.
Mistakes in repairing credit by a consumer without expert guidance can be expensive…and the damage they cause can be long lasting. A good credit repair coach will save you far more than their fee. Plus the peace of mind their expertise will give you will save you sleepless nights.
No one ever likes that “lost in the weeds” feeling when they are in over their head and confused. Even the finest Swiss watch will not be working right if the smallest part is missing. Really good results at credit repair demand exacting thoroughness in dealing with all issues presented on the 3 major credit reports. This credit repair ultimate guide will get you off to a fine start.
Which negative entries should I deal with first?
Genuine mistakes should be objected to. Send a letter by regular mail to the credit reporting agencies carrying it that the offending entry “cannot be verified”.
Late payments in the past may be forgiven by some credit card companies if the borrower is back in compliance. Call or write customer service to ask.
As far as collections and charge offs are concerned, make a complete list. Recent negative entries hurt your score more than older ones. The amount of money claimed is not as important as the fact that there was a collection of any kind. Therefore you should focus on settling the most recent collections which claim smaller amounts of money first.
See if the creditor will delete for payment. Call and have the money in hand to pay in exchange for a written promise of deletion. By deletion I mean expunged without a trace as opposed to simply being marked “paid”.
If you settle for less than the full amount the file may be marked “paid for less than the full amount”. This is better than unpaid but there is nothing like a complete deletion. Object to “paid for less than the full amount” notations by insisting on substituting “settled as a disputed matter without any admission of liability.” Sometimes we simply have to get rid of disputed matters for reasons associated with the big picture of the entire credit record.
Can I make some positive moves to move my credit score up?
Get at least 2 different secured credit cards. A secured credit card is a credit card for people whose credit is so bad they need to guarantee payment by putting up their own money as security. These cards report their positive track records to the credit reporting agencies every month. They can help you to begin the process of building or rebuilding your record of trustworthiness between you and your creditors. Pay in full every month or at least keep the balance as low as you can relative to the limit. Limits can be as low as $200.00. Some even lower.
Since you also want an installment loan reporting your on time payments regularly to help your “mix of credit” sign up with Self.com to open an online savings account with them. This is frequently necessary because many car loans are reported to only one or two credit reporting agencies.
Self.com will report to the 3 major credit bureaus a track record of your monthly $25.00 savings payment toward the savings account you have just opened with them. This is reported to the 3 big credit reporting agencies as if it were an installment loan. Later you get it all back. Sounds too good to be true I know but this is for real. Check out their web site. Self.com
Should I consider a debt settlement service to reorganize and stop the calls?
Debt Settlement Services are never a good idea for anyone. All they do is hold onto your monthly payments you make to their service in hopes of settling for less than the full amount several years later.. In the meantime your credit gets worse and worse. They do nothing for you that you can’t do for yourself. For instance you can stop collection calls with your own “cease and desist” letter to the collector. If you demand in writing that the collectors stop calling they have to stop. Consider this warning I am quoting verbatim from the official literature of a major debt collecting company:
“The use of debt settlement services will likely adversely affect your creditworthiness, may result in you being subject to collections or being sued by creditors or collectors and may increase the outstanding balances of your enrolled accounts due to the accrual of fees and interest.”
The above quote is their words, not mine. I can’t think of a single situation where a debtor improves their standing by utilizing the services of a debt settlement company. Follow the directions in credit repair ultimate guide. If you feel you need coaching go for it…credit coaching will save you a lot of money and aggravation