A Little Bit of Credit Repair
It’s amazing how much of a difference a little bit of credit repair can make. Here is a true story about a life changing credit transformation. Do you have credit issues? Please don’t ignore your credit. A little bit of credit repair can go a long way.
John and Susan declared bankruptcy in January of 2004 and were discharged four months later in April. They were under the impression that there was nothing that could be done to repair their credit following the bankruptcy. They both felt as if they were holding their breath and waiting for the years to pass. In January of 2008 they decided to apply for an FHA mortgage.
They were not really surprised when they were turned down. The mortgage broker told them that their credit scores were in the 400s, but that he thought they should explore the possibility of credit repair. John contacted a reputable credit repair company for a consultation and was surprised to hear that there are many things that can be done after a bankruptcy to clean up one’s credit report.
John signed up for the credit repair program and provided their account representative with a copy of the bankruptcy discharge and the schedule of items included. The credit repair professional gave them some advice about rebuilding their credit and provided several links to secured credit card issuers.
He informed them that these new cards, as small as they are, have tremendous power to rebuild their credit scores as long as they are managed properly. He advised them that the FICO credit scoring model, in use by the majority of lenders, recognizes five levels of card usage - specifically 20, 40, 60, 80, and 100 percent. He suggested that they open two new cards each and maintain the balances below 20 percent of the credit limit.
The credit repair company went to work on the post-bankruptcy clean up while John and Susan opened their new secured credit cards making sure to keep the balances in the range that the credit repair professional had suggested. About 45 days later they received updated credit reports in the mail from each of the three credit bureaus. They were surprised to see the number of items that had been corrected.
They contacted the credit repair company to review the results and after going over all of the details were thrilled to hear that the post bankruptcy clean up was completed. No longer were there past due amounts showing on the accounts that had been included in the bankruptcy, nor were any accounts listed in a collection status. In fact, their credit report looked so clean that they could hardly recognize it.
The credit repair representative explained to them that unlike other derogatory information that ought to be disputed in a paced manner to avoid being rejected by the credit bureaus, bankruptcy issues should be addressed all at once. So, much to John and Susan’s surprise, they found that that had already successfully completed their credit repair program.
The credit repair representative spent some time coaching them about debt management and the ongoing handling of the new credit cards. John and Susan could hardly believe their ears when the credit repair representative suggested that they consider reapplying for the mortgage in another five months, just enough time for the new secured credit cards to produce a positive impact on their credit scores.
And, so it was that in the first week of July 2008, only six months after contact the credit repair company that John and Susan returned to the mortgage broker and asked to reapply for an FHA mortgage. The mortgage broker was surprised to see them and even suggested that it was a bit soon for their credit scores to have improved much from the 400s that they had been in January. But when he ran the credit he was amazed at what he saw.
John and Susan’s credit scores were in the mid 600s, a full 200 points above where they had been only 6 months prior. The mortgage broker was thrilled to complete the application. The next day the mortgage broker called Susan at work and told her the great news; she and John had been approved for their mortgage and qualified for the lowest available FHA interest rate.
Last week John and Susan moved into their new home. It’s a beautiful three bedroom, two bath ranch on half an acre just outside of Atlanta, Georgia. John has already purchased a new grill and a lawn mower. A couple of days ago Susan surprised John by bringing home a new member of the family, a two year old Golden Retriever from the local pound. Yesterday they got on two phone lines in their new home and called their credit repair representative to thank him for his guidance and to share all of their life changing news.
Copyright © 2008 James W. Kemish. All Content. All Rights Reserved.
Monday, August 25, 2008
Tuesday, August 19, 2008
Credit Repair Professional Tips
Pay Your Bills on Time
Credit repair means timely payments. Does this go without saying? If you want to repair your credit and improve your credit scores you cannot afford new late payments on your credit report. New late payments will have a major impact on your scores, as much as 100 points. The initial impact of a late payment will fade over time, so get those late payments behind you forever.
Open New Accounts
If you don’t have any open and active accounts on your credit report you cannot expect your credit repair effort to succeed. Credit scores are based on two broad categories of data, the good and the bad. Removing the bad stuff will get you halfway to your goal, but in the world of credit halfway doesn’t count for much. You need to build the good as well. It’s time to open new accounts, and credit cards are the perfect credit repair tool.
Try Secured Credit Cards
If you are trying to build new credit but can’t get approved for a credit card, try a secured card. It’s easy! Secured credit cards require a small saving account which will usually secure the entire credit line on your new card. Most secure cards require a minimum deposit of two to three hundred dollars. Don’t be embarrassed by the small amount, these little cards carry big credit repair power.
Manage Your Revolving Balances
The key to optimizing your credit scores with credit cards – aside from making your payments on time - is prudent balance management. The lower the better, but there are specific targets you should know. The current credit scoring model in use by lenders recognizes 20, 40, 60, 80, and 100 percent usage. 20 and 40 are good, 60 is neutral, while 80 and 100 percent usage will reduce your scores, and if you want credit repair success, don’t even think of going over the limit.
Credit Repair and Authorized User Cards
Authorized user accounts have been the subject of much debate. Some credit repair companies, operating in a gray area of the law, have sold authorized card status for years to people who wanted a quick credit score boost. On July 31, 2008 Fair Isaac announced a software fix which blocks the benefit of these brokered accounts while leaving intact the benefit of legitimate spouse and family member cards. So if you have a relative with awesome credit that wants to help your credit repair project, have them add you as an authorized user and watch your score pop.
Credit Repair and Your Student Loans
If you have student loan problems you should pick up the phone right now (really, right now) and explore the many options that are available to get you back on track. Student loans are unique amongst all forms of debt; they have no statute of limitation for collection. The longer you ignore them the worse it gets. As tough as it sounds, there are many great resolutions available. The Student Loan Ombudsman Office has been set up to help you understand your rights. Call them at (877) 557-2575.
Clean Up Your Reports
Don’t believe everything you read, especially if it is on your credit report. Credit reports are typically loaded with errors, many of which can devastate your credit scores. Order all three of your reports, one from each bureau and plan to spend an hour proof reading each one. Credit repair can be the best time you ever invested. Check every detail including the neutral looking information like credit limits and reporting dates. Once you have identified the errors dispute them with the credit bureaus.
Need Help? Hire a Credit Repair Pro
If you are not comfortable reading your credit reports, or if you don’t have the time, hire a pro. A credit repair professional will insure that the job is done right. They will check statute of limitation dates and reporting period limits, identify compliance issues that may otherwise be hard to spot, write the dispute letters for you, manage re-disputes, and counsel you to insure the optimal outcome. Credit repair is important, take action today.
Copyright © 2008 James W. Kemish. All Content. All Rights Reserved.
Credit repair means timely payments. Does this go without saying? If you want to repair your credit and improve your credit scores you cannot afford new late payments on your credit report. New late payments will have a major impact on your scores, as much as 100 points. The initial impact of a late payment will fade over time, so get those late payments behind you forever.
Open New Accounts
If you don’t have any open and active accounts on your credit report you cannot expect your credit repair effort to succeed. Credit scores are based on two broad categories of data, the good and the bad. Removing the bad stuff will get you halfway to your goal, but in the world of credit halfway doesn’t count for much. You need to build the good as well. It’s time to open new accounts, and credit cards are the perfect credit repair tool.
Try Secured Credit Cards
If you are trying to build new credit but can’t get approved for a credit card, try a secured card. It’s easy! Secured credit cards require a small saving account which will usually secure the entire credit line on your new card. Most secure cards require a minimum deposit of two to three hundred dollars. Don’t be embarrassed by the small amount, these little cards carry big credit repair power.
Manage Your Revolving Balances
The key to optimizing your credit scores with credit cards – aside from making your payments on time - is prudent balance management. The lower the better, but there are specific targets you should know. The current credit scoring model in use by lenders recognizes 20, 40, 60, 80, and 100 percent usage. 20 and 40 are good, 60 is neutral, while 80 and 100 percent usage will reduce your scores, and if you want credit repair success, don’t even think of going over the limit.
Credit Repair and Authorized User Cards
Authorized user accounts have been the subject of much debate. Some credit repair companies, operating in a gray area of the law, have sold authorized card status for years to people who wanted a quick credit score boost. On July 31, 2008 Fair Isaac announced a software fix which blocks the benefit of these brokered accounts while leaving intact the benefit of legitimate spouse and family member cards. So if you have a relative with awesome credit that wants to help your credit repair project, have them add you as an authorized user and watch your score pop.
Credit Repair and Your Student Loans
If you have student loan problems you should pick up the phone right now (really, right now) and explore the many options that are available to get you back on track. Student loans are unique amongst all forms of debt; they have no statute of limitation for collection. The longer you ignore them the worse it gets. As tough as it sounds, there are many great resolutions available. The Student Loan Ombudsman Office has been set up to help you understand your rights. Call them at (877) 557-2575.
Clean Up Your Reports
Don’t believe everything you read, especially if it is on your credit report. Credit reports are typically loaded with errors, many of which can devastate your credit scores. Order all three of your reports, one from each bureau and plan to spend an hour proof reading each one. Credit repair can be the best time you ever invested. Check every detail including the neutral looking information like credit limits and reporting dates. Once you have identified the errors dispute them with the credit bureaus.
Need Help? Hire a Credit Repair Pro
If you are not comfortable reading your credit reports, or if you don’t have the time, hire a pro. A credit repair professional will insure that the job is done right. They will check statute of limitation dates and reporting period limits, identify compliance issues that may otherwise be hard to spot, write the dispute letters for you, manage re-disputes, and counsel you to insure the optimal outcome. Credit repair is important, take action today.
Copyright © 2008 James W. Kemish. All Content. All Rights Reserved.
Wednesday, August 13, 2008
Credit Repair: Big News about Authorized User Accounts
Breaking News!
Fair Isaac Corp. has announced a modification of their software which will block the credit score benefits of authorized user accounts. A nationally recognized credit repair expert discusses the news and the impact it may have on your life.
Questionable Credit Repair Practices
A small sub-set of the credit repair industry has been operating in a gray area of the law by selling authorized user accounts to consumers. Many credit repair customers have been willing to pay significant amounts of money for these accounts, and the credit score benefit that comes with them. According to the Fair Isaac July 31, 2008 press release, those days are officially over.
A Brief History
The FICO credit scoring model considers, among other things, the payment history of your credit cards as an indicator of your credit worthiness. Until now, FICO also applied the payment history of authorized user accounts in their calculation of the score of the authorized user - an interesting point as these accounts reflect the credit worthiness of the primary card holder, rather than the authorized user.
The Birth of Credit Repair Card Sales
A number of credit repair companies picked up on this loophole and began to sell authorized card memberships to people wanting a quick score boost. Soon lenders caught on and decided to fight back; justifiably so, as these accounts artificially skewed the credit scores of borrowers, making good credit decisions unreliable.
The End is in Sight
Fair Isaac Corp. has now taken steps to preserve the integrity of the FICO score by eliminating the score benefit of authorized user accounts sold by so-called credit repair companies that chose to operate in this questionable market. If you have considered buying authorized user accounts from one of these credit repair operations to get a quick bump in your credit score, forget it.
The End of the Credit Repair Gray Market
The new, updated, FICO 08 release includes a fancy sorting algorithm which reportedly will allow legitimate authorized card holders, such as spouses, to continue to receive the score benefit, while effectively blocking cards that were sold in the credit repair gray market. Spouses are clearly safe, and based on the language of the July 31, 2008 press release, so, we believe, are child accounts.
How Does the Magic Work?
If I had to guess, I’d say that Fair Isaac tests for a relationship between the primary card holder and the member user. I’d also guess that they are testing for the number of member users per primary account. In other words, primary accounts that have more than one or two authorized users will be blocked for sure. This in itself would eliminate the majority of the gray market accounts because most of these accounts were sold multiple times.
Make Your Credit Repair Plans
Fair Isaac’s new approach to the authorized user account problem is very even-handed and should provide comfort to spouse and child card holders, as they should be able to continue to enjoy the score benefit of their accounts. But if you are making a credit repair effort and have purchased authorized user cards and are counting on them to maintain your score, it’s time to make other plans.
Finding the Right Solution
Ethical credit repair is also the most effective. Truly successful credit repair is about a genuine reshaping of your credit. You might have been able to artificially increase your credit score by purchasing an authorized card membership, but this was never an effective long term solution.
Credit Repair Done Right
If you are in a credit repair program and want to improve your credit scores, there is an effective and reliable way to do so. Build your own credit! If your credit scores are below the level that will allow you to get unsecured credit cards, get secured cards. Secured cards are cost effective, the accounts are yours, and before long you will be enjoying improved credit scores. That’s the right approach to credit repair.
Copyright © 2008 James W. Kemish. All Content. All Rights Reserved.
Fair Isaac Corp. has announced a modification of their software which will block the credit score benefits of authorized user accounts. A nationally recognized credit repair expert discusses the news and the impact it may have on your life.
Questionable Credit Repair Practices
A small sub-set of the credit repair industry has been operating in a gray area of the law by selling authorized user accounts to consumers. Many credit repair customers have been willing to pay significant amounts of money for these accounts, and the credit score benefit that comes with them. According to the Fair Isaac July 31, 2008 press release, those days are officially over.
A Brief History
The FICO credit scoring model considers, among other things, the payment history of your credit cards as an indicator of your credit worthiness. Until now, FICO also applied the payment history of authorized user accounts in their calculation of the score of the authorized user - an interesting point as these accounts reflect the credit worthiness of the primary card holder, rather than the authorized user.
The Birth of Credit Repair Card Sales
A number of credit repair companies picked up on this loophole and began to sell authorized card memberships to people wanting a quick score boost. Soon lenders caught on and decided to fight back; justifiably so, as these accounts artificially skewed the credit scores of borrowers, making good credit decisions unreliable.
The End is in Sight
Fair Isaac Corp. has now taken steps to preserve the integrity of the FICO score by eliminating the score benefit of authorized user accounts sold by so-called credit repair companies that chose to operate in this questionable market. If you have considered buying authorized user accounts from one of these credit repair operations to get a quick bump in your credit score, forget it.
The End of the Credit Repair Gray Market
The new, updated, FICO 08 release includes a fancy sorting algorithm which reportedly will allow legitimate authorized card holders, such as spouses, to continue to receive the score benefit, while effectively blocking cards that were sold in the credit repair gray market. Spouses are clearly safe, and based on the language of the July 31, 2008 press release, so, we believe, are child accounts.
How Does the Magic Work?
If I had to guess, I’d say that Fair Isaac tests for a relationship between the primary card holder and the member user. I’d also guess that they are testing for the number of member users per primary account. In other words, primary accounts that have more than one or two authorized users will be blocked for sure. This in itself would eliminate the majority of the gray market accounts because most of these accounts were sold multiple times.
Make Your Credit Repair Plans
Fair Isaac’s new approach to the authorized user account problem is very even-handed and should provide comfort to spouse and child card holders, as they should be able to continue to enjoy the score benefit of their accounts. But if you are making a credit repair effort and have purchased authorized user cards and are counting on them to maintain your score, it’s time to make other plans.
Finding the Right Solution
Ethical credit repair is also the most effective. Truly successful credit repair is about a genuine reshaping of your credit. You might have been able to artificially increase your credit score by purchasing an authorized card membership, but this was never an effective long term solution.
Credit Repair Done Right
If you are in a credit repair program and want to improve your credit scores, there is an effective and reliable way to do so. Build your own credit! If your credit scores are below the level that will allow you to get unsecured credit cards, get secured cards. Secured cards are cost effective, the accounts are yours, and before long you will be enjoying improved credit scores. That’s the right approach to credit repair.
Copyright © 2008 James W. Kemish. All Content. All Rights Reserved.
Thursday, August 7, 2008
Credit Repair and Your Credit Scores – Common Questions
When did credit scoring begin?
All of your credit repair efforts are designed to improve your credit scores. There may be no more important number in your life. But where did credit scoring start? The FICO credit scoring model was created in the 1950s by two Stanford University researchers, Bill Fair and Earl Isaac. Automated FICO scores were first made available in 1989 and initially utilized by credit card issuers. But credit scores really became part of all of our lives in 1995 when Fannie Mae and Freddie Mac, the mortgage giants, asked lenders to incorporate the use of FICO credit scores in their approval decisions. The rest is history. Fair Isaac Corp. trades on the New York Stock Exchange under the Symbol FIC, and reported revenues of over 800 million dollars in 2007.
Why are lenders scores different from the ones I bought online?
Lenders purchase FICO scores from the three credit bureaus. But with the exception of Equifax, the credit bureaus do not sell FICO scores to consumers. The scores sold by TransUnion and Experian are their own proprietary scores. These scores may vary significantly from your FICO scores. This can be very confusing for anyone in a credit repair program who wishes to monitor their credit scores. If you are working on credit repair and want relevant lender FICO scores you can purchase them at myfico.com.
Why do I have three credit scores?
The three major credit bureaus compile data on consumers, and sell credit reports and a wide variety of marketing information based on this data. The three credit bureaus compete with each other, but because lenders have adopted the practice of minimizing risk by reviewing all three bureaus, the three bureaus are perceived as being equally important. Each bureau licenses the use of the FICO scoring software from Fair Isaac and Company and applies it to their database to produce a FICO score. All three credit bureaus must be addressed in your credit repair effort.
Why are my three credit scores different?
There are three reasons for the differences in your scores. First, creditors do not necessarily report to all three bureaus – if you examine your reports you will probably notice many differences in the content. Second, the timing of the reporting of information by each bureau is different – if you used a credit card recently your new balance is likely to be reported by each bureau at different times. And third, Fair Isaac modifies the software from time to time, and the bureaus do not all implement the new version concurrently. It is pertinent to your credit repair effort to know that when correcting reporting errors the information on each bureau may be unique.
I’ve heard that there are two types of inquiries, what are they?
There are two types of inquiries. Hard inquiries will affect your credit scores, and occur when you apply for new credit. Soft inquiries will not affect your credit score, and are triggered most often by three different events; first, when you request your own credit report; second, when prospective lenders review your credit before offering you pre-approved credit; and lastly, when a current creditor conducts a periodic review of an existing account. Because inquiries have such a small impact on your scores, they are often addressed last in any credit repair effort.
How much will inquiries hurt my credit scores?
Soft inquiries, as mentioned, have no impact on your credit score. Hard inquiries are likely to lower your scores between 1 point and 5 points. Credit repair efforts revolve around your credit scores, and it is useful to know that the FICO scoring model considers everything on your report all together. The affect of an inquiry, like other information on your report, will vary depending on everything else in your file. The more credit you have, and the more established it is, the less of an impact a single inquiry will have.
How can I increase my scores?
The categories of data that will impact your scores are your payment history, your account balances, the length of your credit history, the balance of credit types, and the amount of new credit you have. Try to not make any late payments from this point forward. You should also attempt to pay your revolving balances down. And if you don’t have any open accounts, start the rebuilding process right away by opening two secured credit cards; your credit repair effort cannot succeed without open accounts, so take action today.
How much do my credit scores really matter?
Your credit repair effort should focus on improving your credit scores. Every loan you apply for will be underwritten based on your credit scores. Insurance companies are not allowed to consider your credit scores when pricing life and health insurance, but property insurers will consider your credit scores and may even deny you coverage if they don’t like what they see. In addition, prospective employers and landlords are likely to check your credit. Make sure your scores are where they should be when you need them. If you have credit issues, begin your credit repair effort immediately.
Copyright © 2008 James W. Kemish. All Content. All Rights Reserved.
All of your credit repair efforts are designed to improve your credit scores. There may be no more important number in your life. But where did credit scoring start? The FICO credit scoring model was created in the 1950s by two Stanford University researchers, Bill Fair and Earl Isaac. Automated FICO scores were first made available in 1989 and initially utilized by credit card issuers. But credit scores really became part of all of our lives in 1995 when Fannie Mae and Freddie Mac, the mortgage giants, asked lenders to incorporate the use of FICO credit scores in their approval decisions. The rest is history. Fair Isaac Corp. trades on the New York Stock Exchange under the Symbol FIC, and reported revenues of over 800 million dollars in 2007.
Why are lenders scores different from the ones I bought online?
Lenders purchase FICO scores from the three credit bureaus. But with the exception of Equifax, the credit bureaus do not sell FICO scores to consumers. The scores sold by TransUnion and Experian are their own proprietary scores. These scores may vary significantly from your FICO scores. This can be very confusing for anyone in a credit repair program who wishes to monitor their credit scores. If you are working on credit repair and want relevant lender FICO scores you can purchase them at myfico.com.
Why do I have three credit scores?
The three major credit bureaus compile data on consumers, and sell credit reports and a wide variety of marketing information based on this data. The three credit bureaus compete with each other, but because lenders have adopted the practice of minimizing risk by reviewing all three bureaus, the three bureaus are perceived as being equally important. Each bureau licenses the use of the FICO scoring software from Fair Isaac and Company and applies it to their database to produce a FICO score. All three credit bureaus must be addressed in your credit repair effort.
Why are my three credit scores different?
There are three reasons for the differences in your scores. First, creditors do not necessarily report to all three bureaus – if you examine your reports you will probably notice many differences in the content. Second, the timing of the reporting of information by each bureau is different – if you used a credit card recently your new balance is likely to be reported by each bureau at different times. And third, Fair Isaac modifies the software from time to time, and the bureaus do not all implement the new version concurrently. It is pertinent to your credit repair effort to know that when correcting reporting errors the information on each bureau may be unique.
I’ve heard that there are two types of inquiries, what are they?
There are two types of inquiries. Hard inquiries will affect your credit scores, and occur when you apply for new credit. Soft inquiries will not affect your credit score, and are triggered most often by three different events; first, when you request your own credit report; second, when prospective lenders review your credit before offering you pre-approved credit; and lastly, when a current creditor conducts a periodic review of an existing account. Because inquiries have such a small impact on your scores, they are often addressed last in any credit repair effort.
How much will inquiries hurt my credit scores?
Soft inquiries, as mentioned, have no impact on your credit score. Hard inquiries are likely to lower your scores between 1 point and 5 points. Credit repair efforts revolve around your credit scores, and it is useful to know that the FICO scoring model considers everything on your report all together. The affect of an inquiry, like other information on your report, will vary depending on everything else in your file. The more credit you have, and the more established it is, the less of an impact a single inquiry will have.
How can I increase my scores?
The categories of data that will impact your scores are your payment history, your account balances, the length of your credit history, the balance of credit types, and the amount of new credit you have. Try to not make any late payments from this point forward. You should also attempt to pay your revolving balances down. And if you don’t have any open accounts, start the rebuilding process right away by opening two secured credit cards; your credit repair effort cannot succeed without open accounts, so take action today.
How much do my credit scores really matter?
Your credit repair effort should focus on improving your credit scores. Every loan you apply for will be underwritten based on your credit scores. Insurance companies are not allowed to consider your credit scores when pricing life and health insurance, but property insurers will consider your credit scores and may even deny you coverage if they don’t like what they see. In addition, prospective employers and landlords are likely to check your credit. Make sure your scores are where they should be when you need them. If you have credit issues, begin your credit repair effort immediately.
Copyright © 2008 James W. Kemish. All Content. All Rights Reserved.
Tuesday, August 5, 2008
Credit Repair Tips for Everyone
Are You Ready?
Are you ready to get your credit repair effort in gear? There is no time like the present. Here is a collection of powerful tips from a nationally recognized credit repair expert that you can use right away.
Using Your Credit Cards
There is nothing wrong with using your credit cards. Credit cards allow you to manage both purchases and unforeseen events over time. There is also nothing particularly wrong with running your balances up to the limit - unless you need your credit scores to be at their best in the short term.
Credit Repair and Your Credit Card Balances
The FICO scoring model recognizes five different credit card usage levels and adjusts your scores accordingly. These levels are 20, 40, 60, 80, and 100 percent; the lower your balance the higher your score. This should not be taken lightly. Changing your credit card balances can cause a swing of over 100 points on your credit score. If you are applying for a loan every point on your score counts, so keep those balances down.
Store Cards Can be Good Business
Everyone likes a good deal. So when a cashier at a department store offers a discount in exchange for opening a new store card, it can be tempting. Sometimes accepting the offer is the right thing to do. It can be good business to save a little money. But in the world of credit repair, timing is everything. When that store card hits your credit report it will put a big dent in your credit score.
The Problem with Store Cards
Store cards contain three credit score hits in one little package. First is the inquiry, second is the new account, and third, almost inevitably, your new balance will be close to the card’s limit. If you don’t need your credit score anytime soon there is no problem, but if you will are applying for a loan, or are in a credit repair program, think twice before opening that new store card.
How Many Credit Cards
Too many credit cards are not great, so a bit of financial simplification may be in order, but don’t get carried away. Many people start a credit repair program and decide to tidy up their life by closing all but one credit card. This can send your credit score into a tailspin. If you have more than five open cards, go ahead and trim down, but otherwise leave them open. Your credit scores will thank you.
Rebuild Your Credit Now
After a period of financial difficulty many people find themselves with no open accounts. You need to have open accounts to build your credit scores. Credit repair takes time. Don’t wait until you have cleaned up the old derogatory information on your credit reports before applying for your new credit cards; start building now.
Secured Credit Cards for Credit Repair Success
If you can’t get approved for regular credit cards, get secured cards. Secured cards require a small saving account which will secure your new credit line. Open two secured accounts, keep the balance under twenty percent of your limit and you will see big credit repair results before you know it.
Authorized User Accounts – The Good News
Authorized user accounts provide two benefits. First, they are easy to get; anyone can add you to their account as an authorized user. Second, you inherit the benefit of the primary card holder’s payment history on that account. So, assuming they have a good history, your credit score will increase accordingly. A great credit repair trick - or is it?
Authorized user Accounts – The Bad News
The problem with authorized user accounts is that Fair Isaac and Company has removed the credit score inheritance benefit from the new version of the FICO software. The credit bureaus will be adopting the new software over the next year or so and the score benefit will be gone. It’s time to build real credit. If you cannot get unsecured credit cards, apply for secured cards. Take action today.
Don’t Ignore Collection Letters
The last thing you want to find in your mailbox is a collection letter. It is tempting to ignore it. Unfortunately, if you ignore that collection letter for more than 30 days you have lost a golden credit repair opportunity to validate the debt. If you read the collection letter carefully you will see a notice that you have 30 days to challenge the collection. Don’t miss your chance.
Credit Repair and Debt Validation
Collectors are governed by the Fair Debt Collection Practices Act, which says that if challenged they must, upon request, provide proof of their legal right to collect and an accounting of the amount due. This accounting should come from the original creditor. If the collector cannot provide the requested documentation they must cease collection efforts and not report to the credit bureaus.
Start Your Credit Repair Project Today
Every point on your credit score matters. Credit repair takes time. You cannot afford to delay. Just make sure to do your homework. Educate yourself. There are great resources on the web. If the project seems daunting, hire a professional. Expert credit repair services are very affordable and should include everything you need to optimize your credit score.
Copyright © 2008 James W. Kemish. All Content. All Rights Reserved.
Are you ready to get your credit repair effort in gear? There is no time like the present. Here is a collection of powerful tips from a nationally recognized credit repair expert that you can use right away.
Using Your Credit Cards
There is nothing wrong with using your credit cards. Credit cards allow you to manage both purchases and unforeseen events over time. There is also nothing particularly wrong with running your balances up to the limit - unless you need your credit scores to be at their best in the short term.
Credit Repair and Your Credit Card Balances
The FICO scoring model recognizes five different credit card usage levels and adjusts your scores accordingly. These levels are 20, 40, 60, 80, and 100 percent; the lower your balance the higher your score. This should not be taken lightly. Changing your credit card balances can cause a swing of over 100 points on your credit score. If you are applying for a loan every point on your score counts, so keep those balances down.
Store Cards Can be Good Business
Everyone likes a good deal. So when a cashier at a department store offers a discount in exchange for opening a new store card, it can be tempting. Sometimes accepting the offer is the right thing to do. It can be good business to save a little money. But in the world of credit repair, timing is everything. When that store card hits your credit report it will put a big dent in your credit score.
The Problem with Store Cards
Store cards contain three credit score hits in one little package. First is the inquiry, second is the new account, and third, almost inevitably, your new balance will be close to the card’s limit. If you don’t need your credit score anytime soon there is no problem, but if you will are applying for a loan, or are in a credit repair program, think twice before opening that new store card.
How Many Credit Cards
Too many credit cards are not great, so a bit of financial simplification may be in order, but don’t get carried away. Many people start a credit repair program and decide to tidy up their life by closing all but one credit card. This can send your credit score into a tailspin. If you have more than five open cards, go ahead and trim down, but otherwise leave them open. Your credit scores will thank you.
Rebuild Your Credit Now
After a period of financial difficulty many people find themselves with no open accounts. You need to have open accounts to build your credit scores. Credit repair takes time. Don’t wait until you have cleaned up the old derogatory information on your credit reports before applying for your new credit cards; start building now.
Secured Credit Cards for Credit Repair Success
If you can’t get approved for regular credit cards, get secured cards. Secured cards require a small saving account which will secure your new credit line. Open two secured accounts, keep the balance under twenty percent of your limit and you will see big credit repair results before you know it.
Authorized User Accounts – The Good News
Authorized user accounts provide two benefits. First, they are easy to get; anyone can add you to their account as an authorized user. Second, you inherit the benefit of the primary card holder’s payment history on that account. So, assuming they have a good history, your credit score will increase accordingly. A great credit repair trick - or is it?
Authorized user Accounts – The Bad News
The problem with authorized user accounts is that Fair Isaac and Company has removed the credit score inheritance benefit from the new version of the FICO software. The credit bureaus will be adopting the new software over the next year or so and the score benefit will be gone. It’s time to build real credit. If you cannot get unsecured credit cards, apply for secured cards. Take action today.
Don’t Ignore Collection Letters
The last thing you want to find in your mailbox is a collection letter. It is tempting to ignore it. Unfortunately, if you ignore that collection letter for more than 30 days you have lost a golden credit repair opportunity to validate the debt. If you read the collection letter carefully you will see a notice that you have 30 days to challenge the collection. Don’t miss your chance.
Credit Repair and Debt Validation
Collectors are governed by the Fair Debt Collection Practices Act, which says that if challenged they must, upon request, provide proof of their legal right to collect and an accounting of the amount due. This accounting should come from the original creditor. If the collector cannot provide the requested documentation they must cease collection efforts and not report to the credit bureaus.
Start Your Credit Repair Project Today
Every point on your credit score matters. Credit repair takes time. You cannot afford to delay. Just make sure to do your homework. Educate yourself. There are great resources on the web. If the project seems daunting, hire a professional. Expert credit repair services are very affordable and should include everything you need to optimize your credit score.
Copyright © 2008 James W. Kemish. All Content. All Rights Reserved.
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