Credit Repair Works, But…
Credit repair can do more than clean up your credit reports. It can raise your scores, help you prevail against collectors, guide your debt negotiations, and transform your financial life. But you must do it right. Too many people jump into the process head first without taking time to learn the rules. As powerful as credit repair is, an uninformed effort is almost guaranteed to produce disappointment. Here are the three most common blunders you must avoid if you want awesome life-changing results.
Don’t Believe Your Eyes
Shake off any ideas that you have about the infallibility of the credit bureaus. Your credit repair effort will start with a detailed examination of all three credit bureaus, and you better approach this task with a critical eye. Almost three-quarters of all credit reports contain mistakes. Look very carefully. Expand your area of focus. Score damaging errors include underreported credit card limits, accounts reported as open with balances that are really closed and paid, duplicate accounts that overstate your debt load, and collections illegally reported by collectors that have sold the debt. Your mission is to hunt down and dispute everything that does not look right. Give yourself the benefit of the doubt. Every point matters.
Don’t Wait to Open New Accounts
Many people are puzzled by the injunction to open new accounts now. Your credit repair effort is destined to fail unless you have open accounts in good standing. You need to act today. But there are caveats. Not all forms of credit are useful for improving your credit scores; stick with MasterCard and Visa. In the current credit environment it is likely you will not be approved for regular credit cards. This is not an obstacle. Secured cards are ideal for credit repair; they are inexpensive to open and you will not be denied. Small secured cards are every bit as valuable as high limit cards. But you must manage them right. Here’s how.
Watch Those Credit Cards
The FICO credit scoring model puts so much emphasis on the relationship between your card balances and their limit that a lapse can cost you over 100 points. It does not matter if your limit is high or low, if you let your balances approach the limit your credit repair project will suffer. The FICO scoring software measures your card usage ratios and adjusts your scores accordingly. The lower your balance relative to your limit, the higher your score will be. So get those balances down. And don’t make the mistake of thinking that it is sufficient to pay the cards off at the end of each month. The creditor is unlikely to report to the bureaus at the exact moment that your balance has been paid. If you need your credit scores to be good in the next 60 days get your balances down now and keep them there as long as your scores matter.
Summary
The quality of your credit has never been so important. Your credit will affect your ability to borrow money, get insurance, rent an apartment, and even get a job; you cannot afford to ignore it or take it for granted. Take action today to insure that your credit report is as good as it can possibly be. If you don’t feel up to the task just hire a credit repair service to do the work for you. A professional credit repair service will see that every opportunity to sharpen your reports and boost your scores is taken advantage of. Don’t let your credit life languish. Wake up and do something. A little effort on your part will pay dividends for years to come. Good luck!
Copyright © 2008 James W. Kemish. All Content. All Rights Reserved.
Friday, July 10, 2009
Thursday, July 2, 2009
Credit Repair – Start a New Life Today
You Can Do It!
Leave the past behind. Credit repair can offer a solution for your financial puzzle. There are some things that only time will fix, but that does not mean that you cannot have a truly dramatic impact on your life with a bit of intelligent credit repair. There is no excuse for allowing your bad credit to be a dead weight in your life. You can take steps to clean up your credit report, rebuild your good credit, optimize your scores, and organize your financial life so that your new life is here to stay. Just put one foot in front of the other and before you know it you will be feeling pretty darn good about yourself.
Clean Up Your Credit Report
Looking at your credit report after a period of hard times can be hard. Who wants to be reminded of old troubles? But now is the time. The sooner you get your credit repair effort underway the sooner you will be able to enjoy your new life. Get your credit reports today. Do yourself a favor and don’t struggle trying to get your reports for free from AnnualCreditReport.com. Invest 15 dollars in a nice user-friendly tri-merged report. It will make your credit repair easy, and believe me you want to make this as easy as possible. Once you get your reports go through every line, pick out the accounts that do not look right, and dispute them.
Rebuild Your Good Credit
If you want to see your FICO scores come back to life you need to have a couple of open credit cards, and you need to manage them in a very special way. Don’t worry. This is easy. It does not matter that you cannot qualify for regular unsecured credit cards, just get secured cards. They are the perfect credit repair tool and are every bit as valuable for your credit scores as any other card. Once you have the secured credit cards you need to use them. And for maximum benefit you should keep an active balance, but never use more than 20 percent of the total limit. And of course make your payments on time. These two cards can be worth more than 100 points on your scores within 6 months so don’t miss out.
Optimize Your Scores
There are a couple of great credit repair techniques that you should put to use in your quest for a new financial life. While you are in recovery mode you should avoid all store credit cards and consumer debt like furniture store loans. This type of debt is detrimental to your credit scores regardless of how well you manage it. You should also avoid excessive credit activity as inquiries will hurt your recovery. And if you have any student loan issues you should reach out to your lender and discuss the possibility of getting started with a rehabilitation program. When it comes to credit repair, leave no opportunity behind.
Organize Your Financial Life
You want to make sure that all of your hard credit repair work is going to yield its results for many years to come. You do not want to accidentally slip backwards. It’s not hard. It is important to acknowledge that unexpected expenses can occur, and they usually do so at the worst possible moment. Now is the time to start a savings account. A savings account is the perfect companion to an intelligent credit repair effort. Just plan on setting aside a small amount of each paycheck. It does not take much. If you set aside even a small amount on a regular basis soon you will have enough reserves to get you through a rough patch without hurting your credit repair progress. Good luck! You can do it!
Copyright © 2008 Edward White. All Content. All Rights Reserved.
Leave the past behind. Credit repair can offer a solution for your financial puzzle. There are some things that only time will fix, but that does not mean that you cannot have a truly dramatic impact on your life with a bit of intelligent credit repair. There is no excuse for allowing your bad credit to be a dead weight in your life. You can take steps to clean up your credit report, rebuild your good credit, optimize your scores, and organize your financial life so that your new life is here to stay. Just put one foot in front of the other and before you know it you will be feeling pretty darn good about yourself.
Clean Up Your Credit Report
Looking at your credit report after a period of hard times can be hard. Who wants to be reminded of old troubles? But now is the time. The sooner you get your credit repair effort underway the sooner you will be able to enjoy your new life. Get your credit reports today. Do yourself a favor and don’t struggle trying to get your reports for free from AnnualCreditReport.com. Invest 15 dollars in a nice user-friendly tri-merged report. It will make your credit repair easy, and believe me you want to make this as easy as possible. Once you get your reports go through every line, pick out the accounts that do not look right, and dispute them.
Rebuild Your Good Credit
If you want to see your FICO scores come back to life you need to have a couple of open credit cards, and you need to manage them in a very special way. Don’t worry. This is easy. It does not matter that you cannot qualify for regular unsecured credit cards, just get secured cards. They are the perfect credit repair tool and are every bit as valuable for your credit scores as any other card. Once you have the secured credit cards you need to use them. And for maximum benefit you should keep an active balance, but never use more than 20 percent of the total limit. And of course make your payments on time. These two cards can be worth more than 100 points on your scores within 6 months so don’t miss out.
Optimize Your Scores
There are a couple of great credit repair techniques that you should put to use in your quest for a new financial life. While you are in recovery mode you should avoid all store credit cards and consumer debt like furniture store loans. This type of debt is detrimental to your credit scores regardless of how well you manage it. You should also avoid excessive credit activity as inquiries will hurt your recovery. And if you have any student loan issues you should reach out to your lender and discuss the possibility of getting started with a rehabilitation program. When it comes to credit repair, leave no opportunity behind.
Organize Your Financial Life
You want to make sure that all of your hard credit repair work is going to yield its results for many years to come. You do not want to accidentally slip backwards. It’s not hard. It is important to acknowledge that unexpected expenses can occur, and they usually do so at the worst possible moment. Now is the time to start a savings account. A savings account is the perfect companion to an intelligent credit repair effort. Just plan on setting aside a small amount of each paycheck. It does not take much. If you set aside even a small amount on a regular basis soon you will have enough reserves to get you through a rough patch without hurting your credit repair progress. Good luck! You can do it!
Copyright © 2008 Edward White. All Content. All Rights Reserved.
Wednesday, June 17, 2009
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!
Copyright © 2008 James W. Kemish. All Content. All Rights Reserved.
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!
Copyright © 2008 James W. Kemish. All Content. All Rights Reserved.
Wednesday, June 3, 2009
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!
Copyright © 2008 James W. Kemish. All Content. All Rights Reserved.
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!
Copyright © 2008 James W. Kemish. All Content. All Rights Reserved.
Tuesday, June 2, 2009
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!
Copyright © 2008 James W. Kemish. All Content. All Rights Reserved.
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!
Copyright © 2008 James W. Kemish. All Content. All Rights Reserved.
Friday, May 22, 2009
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!
Copyright © 2009 James W. Kemish. All Content. All Rights Reserved.
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!
Copyright © 2009 James W. Kemish. All Content. All Rights Reserved.
Tuesday, May 19, 2009
Credit Repair and Your Credit Cards
Credit Repair and Existing Credit Cards
Credit repair can provide benefits beyond obvious derogatory issues. Increasingly, existing creditors are monitoring your universal payment history and altering their terms accordingly. Over the last two years millions of people have been surprised to get a letter from their credit card companies informing them that their account limits have been reduced. Generally this has been an attempt on the part of credit card companies to mitigate risk. Specifically the lever used to make these decisions has been your credit report. Credit repair has a pervasive reach.
Your Limits and Your Scores
If you want your credit repair project to succeed you must reduce your revolving balances. Credit scores hinge largely on the relationship between your credit card balances and your account limits. No matter how punctual your payments, if you keep your balances near the account limit your scores will suffer. For optimal credit repair success, reduce your balances so that you are only utilizing 20% of the card limit.
Rebuild With Secured Cards
If you do not have any open accounts you must start to rebuild right now. Credit repair can clean up derogatory information on your report, but without open credit cards your scores will languish. In today’s credit environment you may not be able to qualify for regular credit cards. Don’t worry; just get a couple of secured cards. They are the perfect credit repair tool. Keep your balances low, make your payments on time, and watch your scores climb.
Credit Card Timing Issues
If you are planning a significant transaction in the immediate future and need your scores to be their best you should be aware of credit card timing issues. If you plan to pay down your balances to boost your scores make sure to do it at least 60 days in advance; the credit bureaus can take this long to reflect the new balance information. And if you are going to open new credit cards as part of your credit repair effort, be careful. New credit cards will lower your scores for the first couple of months they report. In the long term the score benefits of these new cards will be impressive, but watch your timing.
Avoid Store Cards
Store cards are not good for your credit repair project. Fair Isaac, the creator of the FICO scoring model, has a bias against high cost consumer debt. Some store cards may offer great benefits, but nevertheless should be avoided when you are trying to boost your scores. For real score benefits stick with MasterCard, Visa, American Express, and Discover.
How Many Credit Cards?
Don’t go crazy with credit cards. For optimal credit repair results, when you are trying to rebuild your credit, you only need two active accounts. In the long run, as your scores improve, you will receive offers for more cards. If you go over 5 cards you will start to lose points as FICO will start to see you as a potential risk.
Get a Professional Evaluation
Most credit repair services offer a free consultation and should be happy to review your credit report to help you map out a plan. There may be many opportunities to restructure the content of your report. Even small adjustments can translate into significant credit score gains. It’s your credit, and it matters!
Copyright © 2009 James W. Kemish. All Content. All Rights Reserved.
Credit repair can provide benefits beyond obvious derogatory issues. Increasingly, existing creditors are monitoring your universal payment history and altering their terms accordingly. Over the last two years millions of people have been surprised to get a letter from their credit card companies informing them that their account limits have been reduced. Generally this has been an attempt on the part of credit card companies to mitigate risk. Specifically the lever used to make these decisions has been your credit report. Credit repair has a pervasive reach.
Your Limits and Your Scores
If you want your credit repair project to succeed you must reduce your revolving balances. Credit scores hinge largely on the relationship between your credit card balances and your account limits. No matter how punctual your payments, if you keep your balances near the account limit your scores will suffer. For optimal credit repair success, reduce your balances so that you are only utilizing 20% of the card limit.
Rebuild With Secured Cards
If you do not have any open accounts you must start to rebuild right now. Credit repair can clean up derogatory information on your report, but without open credit cards your scores will languish. In today’s credit environment you may not be able to qualify for regular credit cards. Don’t worry; just get a couple of secured cards. They are the perfect credit repair tool. Keep your balances low, make your payments on time, and watch your scores climb.
Credit Card Timing Issues
If you are planning a significant transaction in the immediate future and need your scores to be their best you should be aware of credit card timing issues. If you plan to pay down your balances to boost your scores make sure to do it at least 60 days in advance; the credit bureaus can take this long to reflect the new balance information. And if you are going to open new credit cards as part of your credit repair effort, be careful. New credit cards will lower your scores for the first couple of months they report. In the long term the score benefits of these new cards will be impressive, but watch your timing.
Avoid Store Cards
Store cards are not good for your credit repair project. Fair Isaac, the creator of the FICO scoring model, has a bias against high cost consumer debt. Some store cards may offer great benefits, but nevertheless should be avoided when you are trying to boost your scores. For real score benefits stick with MasterCard, Visa, American Express, and Discover.
How Many Credit Cards?
Don’t go crazy with credit cards. For optimal credit repair results, when you are trying to rebuild your credit, you only need two active accounts. In the long run, as your scores improve, you will receive offers for more cards. If you go over 5 cards you will start to lose points as FICO will start to see you as a potential risk.
Get a Professional Evaluation
Most credit repair services offer a free consultation and should be happy to review your credit report to help you map out a plan. There may be many opportunities to restructure the content of your report. Even small adjustments can translate into significant credit score gains. It’s your credit, and it matters!
Copyright © 2009 James W. Kemish. All Content. All Rights Reserved.
Thursday, April 30, 2009
Credit Repair and Your Identity
Identity Theft Concerns
There are a number of reasons you might have a concern about the illicit use of your identity. A lost wallet, unexplained accounts on your credit report, mysterious transactions on a credit card; these can all give rise to very reasonable worries about fraudulent activity. These events may be of little consequence, or they may be quite serious. Either way, there are a variety of credit repair solutions that you should implement immediately. Credit repair solutions include investigative, preventative, and curative, and all three should be employed.
Investigate the Issue
If you discover activity on your credit report that is not yours it may be the result of a file merger error. This means that someone else’s credit data has been merged with yours. As awful as this may sound, it is pretty innocent and has an easy credit repair cure. So, before you jump to conclusions about identity theft take a few minutes to investigate. Get copies of all three credit reports, circle the unknown accounts, call the creditors, and ask them if they have an account in your name. If they tell you that they have no record of the suspect account you are a victim of a file merger error. This is easily cured with a bit of credit repair. Just write to the credit bureaus telling them that someone else’s credit is showing on your report, and ask them to correct the error. Be sure to provide your identification. File merger errors are surprisingly common and the credit bureaus will most likely resolve the problem for you right away.
Cure the Problem
If on the other hand, the creditor acknowledges that the questionable account is yours, you may have been a victim of identity theft and should implement a more serious credit repair cure right away. The Fair Credit Reporting Act provides a very powerful solution for identity theft victims. You need to go the police station with a copy of your credit report and ask them to provide you with an Identity Theft Report. You will need to send this to the credit bureaus along with your identification and a signed statement affirming that the accounts in question have nothing to do with any transaction of yours. The credit bureaus will block the suspect accounts with a few days and initiate an investigation.
Prevention of Identity Theft
If you have been a victim of identity theft, or are just concerned about preventing the problem from occurring there are two easy and effective credit repair solutions. The credit bureaus offer a simple warning system called a Fraud Alert. A Fraud Alert is a statement inserted into your credit report requesting that prospective lenders contact you before extending credit. All you need to do is ask the credit bureaus to include this statement on your report, provide them with a contact phone number, and you are all set. There is no charge and the alert will remain on your credit report for 90 days. After 90 days you may extend it if wish. You may also cancel it at any time if you feel that the threat has passed. Fraud Alerts, however, are not foolproof, and some lenders may ignore the alert and extend credit regardless. An excellent ancillary credit repair solution you should implement simultaneously with your Fraud Alert is credit monitoring. Credit monitoring is a service offered by the credit bureaus which will alert you to any activity on your credit including inquiries. You can expect to pay less than $20 per month for this service. If someone attempts to use your identity you will be contact in time to avert the issue.
Consult a Professional
If you have concerns about fraudulent use of your identity you should consult a credit repair professional. Most credit repair services offer a free consultation which you should take advantage of. There may be considerations other than have been mentioned in this article, and every situation is unique. As important as your credit is your should always make informed choices.
Copyright © 2009 James W. Kemish. All Content. All Rights Reserved.
There are a number of reasons you might have a concern about the illicit use of your identity. A lost wallet, unexplained accounts on your credit report, mysterious transactions on a credit card; these can all give rise to very reasonable worries about fraudulent activity. These events may be of little consequence, or they may be quite serious. Either way, there are a variety of credit repair solutions that you should implement immediately. Credit repair solutions include investigative, preventative, and curative, and all three should be employed.
Investigate the Issue
If you discover activity on your credit report that is not yours it may be the result of a file merger error. This means that someone else’s credit data has been merged with yours. As awful as this may sound, it is pretty innocent and has an easy credit repair cure. So, before you jump to conclusions about identity theft take a few minutes to investigate. Get copies of all three credit reports, circle the unknown accounts, call the creditors, and ask them if they have an account in your name. If they tell you that they have no record of the suspect account you are a victim of a file merger error. This is easily cured with a bit of credit repair. Just write to the credit bureaus telling them that someone else’s credit is showing on your report, and ask them to correct the error. Be sure to provide your identification. File merger errors are surprisingly common and the credit bureaus will most likely resolve the problem for you right away.
Cure the Problem
If on the other hand, the creditor acknowledges that the questionable account is yours, you may have been a victim of identity theft and should implement a more serious credit repair cure right away. The Fair Credit Reporting Act provides a very powerful solution for identity theft victims. You need to go the police station with a copy of your credit report and ask them to provide you with an Identity Theft Report. You will need to send this to the credit bureaus along with your identification and a signed statement affirming that the accounts in question have nothing to do with any transaction of yours. The credit bureaus will block the suspect accounts with a few days and initiate an investigation.
Prevention of Identity Theft
If you have been a victim of identity theft, or are just concerned about preventing the problem from occurring there are two easy and effective credit repair solutions. The credit bureaus offer a simple warning system called a Fraud Alert. A Fraud Alert is a statement inserted into your credit report requesting that prospective lenders contact you before extending credit. All you need to do is ask the credit bureaus to include this statement on your report, provide them with a contact phone number, and you are all set. There is no charge and the alert will remain on your credit report for 90 days. After 90 days you may extend it if wish. You may also cancel it at any time if you feel that the threat has passed. Fraud Alerts, however, are not foolproof, and some lenders may ignore the alert and extend credit regardless. An excellent ancillary credit repair solution you should implement simultaneously with your Fraud Alert is credit monitoring. Credit monitoring is a service offered by the credit bureaus which will alert you to any activity on your credit including inquiries. You can expect to pay less than $20 per month for this service. If someone attempts to use your identity you will be contact in time to avert the issue.
Consult a Professional
If you have concerns about fraudulent use of your identity you should consult a credit repair professional. Most credit repair services offer a free consultation which you should take advantage of. There may be considerations other than have been mentioned in this article, and every situation is unique. As important as your credit is your should always make informed choices.
Copyright © 2009 James W. Kemish. All Content. All Rights Reserved.
Friday, April 17, 2009
Credit Repair and the Power of Savings
The Foundation of Credit Repair
Credit repair can eliminate reporting errors, tidy up your report, and improve your credit scores, but the real potential of credit repair is best realized when combined with a lifestyle change. Now is the time to work towards genuine financial stability. You must make financial decisions in the context of a reasonable and well developed budget. You must also allow for regular, disciplined savings. This may seem like a tall order, but it can be done. Once you get started you will discover that the rewards are far greater than the costs involved.
Getting Organized
Getting a budget organized can be a stressful project. It can be difficult to examine the realities of one’s financial life, but there is nothing more important, and once you take the big step you are bound to experience a newfound feeling of empowerment and personal control. Clear a couple of hours in your schedule, get a new pad of legal paper and a pen, clean off the kitchen table, and prepare to build a budget.
Gather Information
Write down every expense that you can think of. Start with the big items like housing and auto payments and work down to the daily incidental expenses like lunch and gas. Don’t forget utilities, phone, cable, and all of those little monthly operating costs. Everything counts, and little items add up. Do you take an annual vacation? Estimate the amount of money you need and write it down. It’s important to include annual and occasional expenses in your budget; estimate the amount and divide by twelve to arrive at the amount you must set aside each month.
Pay Yourself Too
There is one more category of expense that you need to add to your list. When it comes to credit repair, this is the one that counts the most. Add a monthly amount for you. This is the amount that you should put into a savings account each and every month. There is nothing as important as setting aside money. In the long run this habit will pay you back many times over; a savings account will give you a buffer in case of unexpected expenses, protect your hard won credit repair results, and be a first step in building solid personal wealth. You might consider ten percent of your income as an appropriate amount.
Evaluate the Results
Once you have listed your expenses (including the amount you decided to contribute to a savings account) it’s time to add them up and calculate a monthly total. How does it compare with your after tax income? If you can cover all of your costs and still have elbow room you are in great shape. If this exercise has revealed the unfortunate reality that you are spending more money than you make, it’s time to make some decisions. This is not always easy, but a little creative thinking might make the process more manageable than you think.
Cutting Costs
If you need to cut costs you should think outside of the box. Get a little creative. You might want to consider that everything is fair game. This can be a big step, but give it a try. Are you paying a lot in rent? The market has changed so much in the last few years that you might find a great new place for even less money. How about your car? Is your payment killing you? Car dealers are hungry and auto finance managers are brilliant at structuring deals; you might be able to trade in your big payment for a little one and still drive off the lot in a nice set of wheels.
Credit Repair Refinances
As your credit repair program starts to yield results you may find yourself in a position to refinance your higher rate debt and to reduce your payments on existing accounts. This is true of everything from mortgages, to auto loans, to credit cards. Over time credit repair will improve your credit scores and allow infinitely more flexibility than you had before. The key to success is to approach the project from all angles. Make your foundation strong and put careful thought into managing and preserving your financial health each and every day. You can succeed!
Copyright © 2009 James W. Kemish. All Content. All Rights Reserved.
Credit repair can eliminate reporting errors, tidy up your report, and improve your credit scores, but the real potential of credit repair is best realized when combined with a lifestyle change. Now is the time to work towards genuine financial stability. You must make financial decisions in the context of a reasonable and well developed budget. You must also allow for regular, disciplined savings. This may seem like a tall order, but it can be done. Once you get started you will discover that the rewards are far greater than the costs involved.
Getting Organized
Getting a budget organized can be a stressful project. It can be difficult to examine the realities of one’s financial life, but there is nothing more important, and once you take the big step you are bound to experience a newfound feeling of empowerment and personal control. Clear a couple of hours in your schedule, get a new pad of legal paper and a pen, clean off the kitchen table, and prepare to build a budget.
Gather Information
Write down every expense that you can think of. Start with the big items like housing and auto payments and work down to the daily incidental expenses like lunch and gas. Don’t forget utilities, phone, cable, and all of those little monthly operating costs. Everything counts, and little items add up. Do you take an annual vacation? Estimate the amount of money you need and write it down. It’s important to include annual and occasional expenses in your budget; estimate the amount and divide by twelve to arrive at the amount you must set aside each month.
Pay Yourself Too
There is one more category of expense that you need to add to your list. When it comes to credit repair, this is the one that counts the most. Add a monthly amount for you. This is the amount that you should put into a savings account each and every month. There is nothing as important as setting aside money. In the long run this habit will pay you back many times over; a savings account will give you a buffer in case of unexpected expenses, protect your hard won credit repair results, and be a first step in building solid personal wealth. You might consider ten percent of your income as an appropriate amount.
Evaluate the Results
Once you have listed your expenses (including the amount you decided to contribute to a savings account) it’s time to add them up and calculate a monthly total. How does it compare with your after tax income? If you can cover all of your costs and still have elbow room you are in great shape. If this exercise has revealed the unfortunate reality that you are spending more money than you make, it’s time to make some decisions. This is not always easy, but a little creative thinking might make the process more manageable than you think.
Cutting Costs
If you need to cut costs you should think outside of the box. Get a little creative. You might want to consider that everything is fair game. This can be a big step, but give it a try. Are you paying a lot in rent? The market has changed so much in the last few years that you might find a great new place for even less money. How about your car? Is your payment killing you? Car dealers are hungry and auto finance managers are brilliant at structuring deals; you might be able to trade in your big payment for a little one and still drive off the lot in a nice set of wheels.
Credit Repair Refinances
As your credit repair program starts to yield results you may find yourself in a position to refinance your higher rate debt and to reduce your payments on existing accounts. This is true of everything from mortgages, to auto loans, to credit cards. Over time credit repair will improve your credit scores and allow infinitely more flexibility than you had before. The key to success is to approach the project from all angles. Make your foundation strong and put careful thought into managing and preserving your financial health each and every day. You can succeed!
Copyright © 2009 James W. Kemish. All Content. All Rights Reserved.
Thursday, March 19, 2009
Refresh Your Life with Credit Repair
Credit Repair in Changing Times
Credit repair has the power to transform your financial life and help you meet creditor guidelines. We are in a period of hard economic times. For the last three years lenders have tightened their requirements. Consumers everywhere are finding it difficult to get home loans, automobile financing, and even credit cards. Millions of credit cards holders have been contacted by their creditors and told that their credit limits have been reduced, and in many cases even informed that their cards have been cancelled.
Meeting the Challenge Head On
Yesterday, the Wall Street Journal noted that credit card issuers will be cutting credit card lines by two trillion dollars in 2009. Credit repair provides a means of restoring, rebuilding, and optimizing your credit reports and credit scores. An intelligent round of credit repair is exactly what these hard times call for. You do not have to sit back and watch passively while the availability of credit becomes a distant memory. Start your credit repair program today and regain the favor of lenders and access to the low cost financing you need.
A Complete Approach is Needed
There are three aspects to successful credit repair that you must address simultaneously. You must clean up the content of your credit report, rectify any credit deficiencies you have, and fine-tune your credit for credit score optimization. If you neglect any of these tasks your credit repair effort will struggle, or even fail in spite of your otherwise capable and hard work. Many credit repair programs focus on credit bureau disputes to the exclusion of everything else. And as exciting as it is to see derogatory information corrected, you are likely to face disappointment when the time comes to apply for a loan and you find that your credit scores have not improved and that the content of your report does not meet the lenders requirements. Here is an overview of the three pronged approach that will insure you end up with truly usable credit.
The Credit Repair Clean Up
Cleaning up your credit report with credit repair requires patience and a proper understanding of all of your legal rights under the Fair Credit Reporting Act. And if you have accounts reported by collectors on your report you must have a working knowledge of the Fair Debt Collection Practices Act and all relevant state statutes of limitation. With the proper tools your job will be easy and rewarding. If you fail to learn the rules you may trigger unanticipated trouble in the form of new collection activity and lawsuits. If you don’t have the time to invest in the learning process don’t worry, just contact a legitimate credit repair service. They will insure that all of the necessary precautions are taken before sending dispute letters to the credit bureaus.
Removing Credit Deficiencies
Rectifying credit deficiencies as part of your credit repair program is every bit as important as cleaning up your credit report. This is necessary for anyone who does not have any open mainstream revolving accounts. Credit cards are the most powerful way of jumpstarting your credit scores. You should have a minimum of two credit cards. Given the state of the credit markets today there is a good chance that you will have to apply for secured credit cards. Secured credit cards are every bit as good for credit rebuilding as unsecured cards. Once you have your two credit cards you need to follow three simple rules to optimize your credit scores. Make your payments on time, don’t pay your balance down to zero, and keep your balance under twenty percent of the total credit line available on the card. As an example, if you have a card with a five hundred dollar limit, you should keep the balance under two hundred dollars.
Fine-Tune and Optimize
Fine-tuning the content of your credit report for credit score optimization requires some understanding of the FICO scoring model. There are certain types of debt that are favorable for your score and others that should be avoided at all costs. In addition, there is an optimal balance between different types of debt that you should work towards. You may need to open accounts, close others, pay down balances, and understand the pace at which these changes should take place depending on your own credit needs.
Picking Your Path
Do you need help? You can succeed at credit repair on your own, or you can hire a reputable credit repair service to manage the process for you. Credit repair is a unique task that requires a fair amount of knowledge if you want to produce the best possible results. If you are going to go it alone please take the time to educate yourself. If you are going to hire a credit repair service, pick up the phone and interview a few. Make a list of questions to ask and pick the company that you feel comfortable with. Good luck!
Copyright © 2009 James W. Kemish. All Content. All Rights Reserved.
Credit repair has the power to transform your financial life and help you meet creditor guidelines. We are in a period of hard economic times. For the last three years lenders have tightened their requirements. Consumers everywhere are finding it difficult to get home loans, automobile financing, and even credit cards. Millions of credit cards holders have been contacted by their creditors and told that their credit limits have been reduced, and in many cases even informed that their cards have been cancelled.
Meeting the Challenge Head On
Yesterday, the Wall Street Journal noted that credit card issuers will be cutting credit card lines by two trillion dollars in 2009. Credit repair provides a means of restoring, rebuilding, and optimizing your credit reports and credit scores. An intelligent round of credit repair is exactly what these hard times call for. You do not have to sit back and watch passively while the availability of credit becomes a distant memory. Start your credit repair program today and regain the favor of lenders and access to the low cost financing you need.
A Complete Approach is Needed
There are three aspects to successful credit repair that you must address simultaneously. You must clean up the content of your credit report, rectify any credit deficiencies you have, and fine-tune your credit for credit score optimization. If you neglect any of these tasks your credit repair effort will struggle, or even fail in spite of your otherwise capable and hard work. Many credit repair programs focus on credit bureau disputes to the exclusion of everything else. And as exciting as it is to see derogatory information corrected, you are likely to face disappointment when the time comes to apply for a loan and you find that your credit scores have not improved and that the content of your report does not meet the lenders requirements. Here is an overview of the three pronged approach that will insure you end up with truly usable credit.
The Credit Repair Clean Up
Cleaning up your credit report with credit repair requires patience and a proper understanding of all of your legal rights under the Fair Credit Reporting Act. And if you have accounts reported by collectors on your report you must have a working knowledge of the Fair Debt Collection Practices Act and all relevant state statutes of limitation. With the proper tools your job will be easy and rewarding. If you fail to learn the rules you may trigger unanticipated trouble in the form of new collection activity and lawsuits. If you don’t have the time to invest in the learning process don’t worry, just contact a legitimate credit repair service. They will insure that all of the necessary precautions are taken before sending dispute letters to the credit bureaus.
Removing Credit Deficiencies
Rectifying credit deficiencies as part of your credit repair program is every bit as important as cleaning up your credit report. This is necessary for anyone who does not have any open mainstream revolving accounts. Credit cards are the most powerful way of jumpstarting your credit scores. You should have a minimum of two credit cards. Given the state of the credit markets today there is a good chance that you will have to apply for secured credit cards. Secured credit cards are every bit as good for credit rebuilding as unsecured cards. Once you have your two credit cards you need to follow three simple rules to optimize your credit scores. Make your payments on time, don’t pay your balance down to zero, and keep your balance under twenty percent of the total credit line available on the card. As an example, if you have a card with a five hundred dollar limit, you should keep the balance under two hundred dollars.
Fine-Tune and Optimize
Fine-tuning the content of your credit report for credit score optimization requires some understanding of the FICO scoring model. There are certain types of debt that are favorable for your score and others that should be avoided at all costs. In addition, there is an optimal balance between different types of debt that you should work towards. You may need to open accounts, close others, pay down balances, and understand the pace at which these changes should take place depending on your own credit needs.
Picking Your Path
Do you need help? You can succeed at credit repair on your own, or you can hire a reputable credit repair service to manage the process for you. Credit repair is a unique task that requires a fair amount of knowledge if you want to produce the best possible results. If you are going to go it alone please take the time to educate yourself. If you are going to hire a credit repair service, pick up the phone and interview a few. Make a list of questions to ask and pick the company that you feel comfortable with. Good luck!
Copyright © 2009 James W. Kemish. All Content. All Rights Reserved.
Tuesday, February 24, 2009
Credit Repair Now is the Time!
A Changing World
Credit repair is the process of cleaning up your credit report and optimizing your scores. Credit repair has never been so important. Your credit score will determine the outcome of any loan application you make. This was not always the case. You might be surprised to hear that credit scores were not marketed to lenders until 1989. And from 1989 until 1995 credit scores were used almost exclusively by a handful of credit card issuers. It wasn’t until 1995, when mortgage giants Fannie Mae and Freddie Mac announced that they were to going to begin using FICO scores as an underwriting criterion that this all-important three digit number came into widespread usage.
Your Critical FICO Score
Credit scores began to grow in importance after 1995, but in 2007 there was a major shift in the credit markets that would make credit repair infinitely more vital than ever before. The pivotal moment occurred in June of 2007 when two Bear Sterns hedge funds collapsed and caused a mass exodus of secondary sub-prime lenders from the mortgage market. From that moment until now the credit markets have continued to tighten. And, although one would expect a cyclical loosening at some point, there is no sign of that in the immediate future. And for now, the issue is so critical that if your FICO score is low you may find that you cannot get approved for anything. And just as important, if you are approved you will find that the interest rate you receive will be based on your score. Credit repair, when done right, will optimize your scores and help you meet future lender requirements.
Credit Score Optimization
It is critical to understand that the FICO scoring model has evolved to the point that there is considerably more involved than paying your bills on time. In fact, it is quite possible to have a perfect payment history for years on end, and still have dismal credit scores. Credit score optimization, as an essential aspect of credit repair, requires an understanding of all of the factors that can influence your scores. Some of the important issues include account types, number of each account type, account balances, and age of accounts. And this is just the score optimization aspect of credit repair; when it comes to cleaning up the content of your reports you have a number of legal rights that can give you significant leverage with creditors and the credit bureaus.
Credit Repair, the Credit Bureaus and the FCRA
The majority of legal rights that you will utilize in your credit repair effort are embodied in the Fair Credit Reporting Act (FCRA). Your credit repair effort should always focus on areas in which you have legal leverage. There is little point in pursuing an avenue of redress if the offending party has no obligation whatsoever to respond. The FCRA puts a burden of accuracy and fairness on the credit bureaus. The responsibilities of the credit bureaus include providing consumers with copies of their credit files, researching the accuracy of information when requested, limiting the reporting period of derogatory information, and providing identity theft relief measures. Taken together, these responsibilities provide consumers with all of the legal rights necessary to dispute and correct inaccuracies on their credit reports.
Credit Repair, Collectors, and the FDCPA
Together with the FCRA, the Fair Debt Collection Practices Act (FDCPA) provides the foundation for consumer credit rights in the United States. The FDCPA can play an important role in any credit repair effort as it gives consumers limited, but powerful, rights in dealing with collectors. These rights provide the leverage necessary to stop abusive collection practices, gain an advantage in payment negotiation, and when dovetailed with specific state statutes of limitation even give you the ability to make bothersome collectors vanish from your life forever. A professional credit repair service will have an intimate working knowledge of the FDCPA and will insure that all of your rights are exercised. And if you are managing your own credit repair effort, make sure to study up on this crucial legislation.
Putting it All Together
Your credit score has a major influence on your financial wellbeing and hence, on the quality of your life. Credit repair is the process of cleaning up your credit report and optimizing your credit scores. In today’s economic environment credit repair is more important than ever. You can no longer afford to ignore your credit scores. Even small differences in your scores can translate into hundreds and even thousands of dollars in the amount of interest you will pay each year. And when it comes to credit repair every detail matters. If you are going to attempt the process on your own take the time to educate yourself. If you don’t have the time or inclination to learn everything necessary to do a thorough job yourself, hire a professional credit repair service. It’s your credit, and now is the time!
Copyright © 2009 James W. Kemish. All Content. All Rights Reserved.
Credit repair is the process of cleaning up your credit report and optimizing your scores. Credit repair has never been so important. Your credit score will determine the outcome of any loan application you make. This was not always the case. You might be surprised to hear that credit scores were not marketed to lenders until 1989. And from 1989 until 1995 credit scores were used almost exclusively by a handful of credit card issuers. It wasn’t until 1995, when mortgage giants Fannie Mae and Freddie Mac announced that they were to going to begin using FICO scores as an underwriting criterion that this all-important three digit number came into widespread usage.
Your Critical FICO Score
Credit scores began to grow in importance after 1995, but in 2007 there was a major shift in the credit markets that would make credit repair infinitely more vital than ever before. The pivotal moment occurred in June of 2007 when two Bear Sterns hedge funds collapsed and caused a mass exodus of secondary sub-prime lenders from the mortgage market. From that moment until now the credit markets have continued to tighten. And, although one would expect a cyclical loosening at some point, there is no sign of that in the immediate future. And for now, the issue is so critical that if your FICO score is low you may find that you cannot get approved for anything. And just as important, if you are approved you will find that the interest rate you receive will be based on your score. Credit repair, when done right, will optimize your scores and help you meet future lender requirements.
Credit Score Optimization
It is critical to understand that the FICO scoring model has evolved to the point that there is considerably more involved than paying your bills on time. In fact, it is quite possible to have a perfect payment history for years on end, and still have dismal credit scores. Credit score optimization, as an essential aspect of credit repair, requires an understanding of all of the factors that can influence your scores. Some of the important issues include account types, number of each account type, account balances, and age of accounts. And this is just the score optimization aspect of credit repair; when it comes to cleaning up the content of your reports you have a number of legal rights that can give you significant leverage with creditors and the credit bureaus.
Credit Repair, the Credit Bureaus and the FCRA
The majority of legal rights that you will utilize in your credit repair effort are embodied in the Fair Credit Reporting Act (FCRA). Your credit repair effort should always focus on areas in which you have legal leverage. There is little point in pursuing an avenue of redress if the offending party has no obligation whatsoever to respond. The FCRA puts a burden of accuracy and fairness on the credit bureaus. The responsibilities of the credit bureaus include providing consumers with copies of their credit files, researching the accuracy of information when requested, limiting the reporting period of derogatory information, and providing identity theft relief measures. Taken together, these responsibilities provide consumers with all of the legal rights necessary to dispute and correct inaccuracies on their credit reports.
Credit Repair, Collectors, and the FDCPA
Together with the FCRA, the Fair Debt Collection Practices Act (FDCPA) provides the foundation for consumer credit rights in the United States. The FDCPA can play an important role in any credit repair effort as it gives consumers limited, but powerful, rights in dealing with collectors. These rights provide the leverage necessary to stop abusive collection practices, gain an advantage in payment negotiation, and when dovetailed with specific state statutes of limitation even give you the ability to make bothersome collectors vanish from your life forever. A professional credit repair service will have an intimate working knowledge of the FDCPA and will insure that all of your rights are exercised. And if you are managing your own credit repair effort, make sure to study up on this crucial legislation.
Putting it All Together
Your credit score has a major influence on your financial wellbeing and hence, on the quality of your life. Credit repair is the process of cleaning up your credit report and optimizing your credit scores. In today’s economic environment credit repair is more important than ever. You can no longer afford to ignore your credit scores. Even small differences in your scores can translate into hundreds and even thousands of dollars in the amount of interest you will pay each year. And when it comes to credit repair every detail matters. If you are going to attempt the process on your own take the time to educate yourself. If you don’t have the time or inclination to learn everything necessary to do a thorough job yourself, hire a professional credit repair service. It’s your credit, and now is the time!
Copyright © 2009 James W. Kemish. All Content. All Rights Reserved.
Thursday, January 15, 2009
How to Get Great Credit Repair Results
The Foundation of Credit Repair Success
It’s time to take stock. Where are you today? Are your finances stable enough to make timely payments on your obligations from this point forward? Credit repair can completely transform your credit and even put you on the path to long term wealth. But to be a good candidate for credit repair you must be able to keep up with your existing commitments. There is no point in making the effort if you are still slipping backward each month. If you can commit to timely payments from this point forward you are a candidate for genuine credit repair success!
Understanding the Nature of Credit
Credit repair success can be measured by the changes in your credit scores. Cleaning up all of the erroneous reporting issues from your credit report is essential, but in the final analysis it is your credit scores that will tell the tale. Credit scores are the result of everything on your report. As important as eliminating negative items may be, the presence of positive credit is even more important. In short, good credit scores require the presence of open and properly managed accounts. Managing your accounts for credit repair success is easy if you know how.
Your Accounts and Credit Score Optimization
As odd as it seems, you may make all of your payments right on time, for years on end, and still have awful credit scores. The good news is that a bit of knowledge can turn things around on a dime and lift your scores dramatically. There are two parts to this credit repair secret; type of credit, and account balances. When it comes to your credit scores not all credit is created equal. It is simple; mainstream credit cards, such as MasterCard, Visa, American Express, and Discover are good. Store cards and consumer credit, such as furniture store loans, are bad. If you have store cards or consumer debt you should work on paying it off. Now, let’s chat about managing those good mainstream credit cards for credit repair success.
Revolving Account Management
If you don’t have any good open credit cards, open them now. If you can’t get approved for unsecured credit, just get a couple of secured cards. They are easy to get and you won’t be denied. Once you have your credit cards you are in a position to really get your credit scores moving in the right direction. All you need to do is get the balances under twenty percent of the cards capacity. If you have a five hundred dollar card get the balance under one hundred dollars and watch your scores take off. Conversely, you need to know that a balance near the card’s limit can knock as much as one hundred and fifty points off your score. If you have high balances, don’t worry. As soon as you pay the balances down your scores will pop right back up (just allow time for the creditor to report the new balance to the credit bureau).
Whipping Your Credit Report into Shape
Credit repair rule number one: Give yourself the benefit of the doubt! Don’t believe everything on your credit report just because it is in writing. If there is any chance a derogatory item is erroneous, dispute it! For goodness sake, it’s your credit and it’s important, so get pro-active, or hire a professional credit repair service to manage the process for you. There is plenty of evidence to support an aggressive approach to credit repair. Over seventy five percent of all credit reports contain errors. The majority of these errors cause consumers to pay premium interest rates on the money they borrow. Don’t be victimized.
Two Handy Credit Repair Tips
Once you get into the task of cleaning up your credit report here are two handy credit repair pointers that can help you out. First, legally, collectors are supposed to withdraw their reporting of an account as soon as they sell the account or return it to the original creditor, but they rarely do. Challenge all questionable collections. And, second, credit card issuers have been known to underreport credit card limits. This underreporting has the same impact on your scores as if you had run up your balance. Proofread your reports carefully for accurate credit limits.
Don’t be Afraid to Ask for Credit Repair Help
Reach out! If you don’t have the time to manage the job of credit repair on your own call a pro. A credit repair professional will review every single detail on your report. They will be able to identify your credit score optimization options, find deficiencies in your credit, and dispute all of the questionable derogatory issues in an experienced and efficient manner. Good luck with your credit repair project!
Copyright © 2008 James W. Kemish. All Content. All Rights Reserved.
It’s time to take stock. Where are you today? Are your finances stable enough to make timely payments on your obligations from this point forward? Credit repair can completely transform your credit and even put you on the path to long term wealth. But to be a good candidate for credit repair you must be able to keep up with your existing commitments. There is no point in making the effort if you are still slipping backward each month. If you can commit to timely payments from this point forward you are a candidate for genuine credit repair success!
Understanding the Nature of Credit
Credit repair success can be measured by the changes in your credit scores. Cleaning up all of the erroneous reporting issues from your credit report is essential, but in the final analysis it is your credit scores that will tell the tale. Credit scores are the result of everything on your report. As important as eliminating negative items may be, the presence of positive credit is even more important. In short, good credit scores require the presence of open and properly managed accounts. Managing your accounts for credit repair success is easy if you know how.
Your Accounts and Credit Score Optimization
As odd as it seems, you may make all of your payments right on time, for years on end, and still have awful credit scores. The good news is that a bit of knowledge can turn things around on a dime and lift your scores dramatically. There are two parts to this credit repair secret; type of credit, and account balances. When it comes to your credit scores not all credit is created equal. It is simple; mainstream credit cards, such as MasterCard, Visa, American Express, and Discover are good. Store cards and consumer credit, such as furniture store loans, are bad. If you have store cards or consumer debt you should work on paying it off. Now, let’s chat about managing those good mainstream credit cards for credit repair success.
Revolving Account Management
If you don’t have any good open credit cards, open them now. If you can’t get approved for unsecured credit, just get a couple of secured cards. They are easy to get and you won’t be denied. Once you have your credit cards you are in a position to really get your credit scores moving in the right direction. All you need to do is get the balances under twenty percent of the cards capacity. If you have a five hundred dollar card get the balance under one hundred dollars and watch your scores take off. Conversely, you need to know that a balance near the card’s limit can knock as much as one hundred and fifty points off your score. If you have high balances, don’t worry. As soon as you pay the balances down your scores will pop right back up (just allow time for the creditor to report the new balance to the credit bureau).
Whipping Your Credit Report into Shape
Credit repair rule number one: Give yourself the benefit of the doubt! Don’t believe everything on your credit report just because it is in writing. If there is any chance a derogatory item is erroneous, dispute it! For goodness sake, it’s your credit and it’s important, so get pro-active, or hire a professional credit repair service to manage the process for you. There is plenty of evidence to support an aggressive approach to credit repair. Over seventy five percent of all credit reports contain errors. The majority of these errors cause consumers to pay premium interest rates on the money they borrow. Don’t be victimized.
Two Handy Credit Repair Tips
Once you get into the task of cleaning up your credit report here are two handy credit repair pointers that can help you out. First, legally, collectors are supposed to withdraw their reporting of an account as soon as they sell the account or return it to the original creditor, but they rarely do. Challenge all questionable collections. And, second, credit card issuers have been known to underreport credit card limits. This underreporting has the same impact on your scores as if you had run up your balance. Proofread your reports carefully for accurate credit limits.
Don’t be Afraid to Ask for Credit Repair Help
Reach out! If you don’t have the time to manage the job of credit repair on your own call a pro. A credit repair professional will review every single detail on your report. They will be able to identify your credit score optimization options, find deficiencies in your credit, and dispute all of the questionable derogatory issues in an experienced and efficient manner. Good luck with your credit repair project!
Copyright © 2008 James W. Kemish. All Content. All Rights Reserved.
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