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Posted by smiley derek
It’s a plastic ocean out there with numerous banks and financial institutions scrambling to sell you their credit cards. And there are so many kinds of credit cards available in the market that a credit card user gets intimidated and perplexed about which card to choose.
The result is that he often chooses the wrong card and then regrets his decision when he’s already neck deep in problems with his credit card account.
So, never pick up a credit card without considering some crucial factors. Here is a small guide that can help you decide which type of credit card you must pocket.
Guidelines to choosing a credit card
Ask yourself, "Why do I need a new credit card?" Is it because your current credit card carries a higher rate of interest, or is it because you want to use it exclusively for your business, or is there any other reason? Zero in on the reason why you need a new credit card.
Once you have the reason, you must check out what kinds of credit cards are available in the market. Here is a brief dossier:
(i) Regular cards/Business cards are cards that give you a spending limit based on your income tax papers. The business card is just like a regular card, except that it comes with some schemes that dangle carrots before you.
(ii) Charge cards are cards that are linked to your bank account and they charge your account the minute you swipe the card. You cannot carry forward a balance with a charge card.
(iii) Reward cards are credit cards that earn you points every time you swipe them and such points are redeemable for some goodies (air tickets, supermarket goodies, etc.) at selected establishments.
(iv) Then there are cards for people who have a bad credit history. These cards carry a low spending limit and a higher rate of interest. (v) Prepaid cards are another type of credit card that are mostly used by teens and some kids too. The parent makes a deposit and the card is valid until the deposit is used up.
(vi) Secured credit cards require that the cardholder deposit a certain percentage of the credit limit upfront into their bank accounts.
Once you have decided what kind of a credit card is right for you, do a comparison between different brands of cards. Compare their rates of interest (APR = Annual Percentage Rate) and also check whether they carry an annual fee.
What grace period or no-payment period they offer you, how do they calculate the interest, whether the rate of interest is an introductory rate, whether rates of interest will vary on cash withdrawals, billing cycles, penalties on balance transfers, and so on.
Voila, there you are! If you follow these basic guidelines, you will be successful in pocketing the right credit card that suits your needs. And that is the easy part,the difficult part lies in maintaining a credit card and keeping your credit history clean.
But, that’s another story!
Article source: ContentLog.com
Author Description
DrS has successfully been in sales over 30 years. He believes you can lead a horse to water but cannot make him or her drink it. Unless you put salt in the oats. The salt is your why (or maybe what you do not want out of life). More information on how to can be found on at my website which is at http://www.applyonlineforacreditcard.eu
Monday, June 29, 2009
Monday, June 22, 2009
Don’t Let A Bad Credit History Ruin You Forever
Thank you for visiting the official blog of RaiseYourCreditScoreNow.com. If you are new here, you may want to subscribe to our RSS feed by clicking the link in the upper right-hand corner of this page that says, "Subscribe to this Blog". Thanks for visiting us!
Posted by Alexander Albert
Having a bad credit history can be a real nightmare and major source of headaches. With a negative credit history you are pretty much financially disabled from everything except transactions that can be covered with cash. Finding an apartment to rent, trying to buy car, putting a down payment on a house, or applying for a credit card or a loan from a bank can all be activities you are basically barred from with a poor credit history. Banks, businesses and landlords can see a poor credit history a mile away and will avoid you like the plague. And it seems like all the steps that are supposed to build credit require good credit in the first place. How can you break out of this credit catch-22 once you get stuck in it?
A good place to start if you have a particularly poor credit history is to contact a credit counseling service. These services will help you to identify why it is you have a poor credit rating, and will help you figure out some steps you can take to repair your negative credit past. A lot of people struggle with credit at one point or other in their lives, and the use of these counseling services is a great way to get back on track.
Most counseling services will tell you that improving your poor credit should start by clearing up any past debts or forgotten bills. Missed payments have a tendency to work themselves into ugly marks on your credit rating, and make for a bad credit file. It is not in their nature for businesses to forget that you didn’t pay them what you owed, and they will almost always eventually contact a collection agency. When a collection agency decides that you aren’t going to pay, they’ll do everything in their power to give you a bad credit history.
These collection agencies are supposed to contact you about your debts first, but if you’ve moved or changed you phone number and they don’t succeed, they won’t be shy about ruining your credit without your permission. If you have a less than perfect credit history, you might have been an unknowing target of one of these agencies.
Whatever the reason, clearing up a bad credit history should start by settling old debts or forgotten bills. Additionally, you want to take steps to show that you can make payments responsibly. Use your credit cards often and pay the minimum payments on your bills immediately. If you don’t have a credit card, get a secured card and likewise make your minimum payments promptly. Credit counseling services can help you find additional ways to fix your bad credit history as well.
Article source: ContentLog.com
Author Description
Bettercreditsecrets is a resource site for those considering an legal credit repair or need bad credit advice. Visit us or check out our credit repair articles at cliksource.
Posted by Alexander Albert
Having a bad credit history can be a real nightmare and major source of headaches. With a negative credit history you are pretty much financially disabled from everything except transactions that can be covered with cash. Finding an apartment to rent, trying to buy car, putting a down payment on a house, or applying for a credit card or a loan from a bank can all be activities you are basically barred from with a poor credit history. Banks, businesses and landlords can see a poor credit history a mile away and will avoid you like the plague. And it seems like all the steps that are supposed to build credit require good credit in the first place. How can you break out of this credit catch-22 once you get stuck in it?
A good place to start if you have a particularly poor credit history is to contact a credit counseling service. These services will help you to identify why it is you have a poor credit rating, and will help you figure out some steps you can take to repair your negative credit past. A lot of people struggle with credit at one point or other in their lives, and the use of these counseling services is a great way to get back on track.
Most counseling services will tell you that improving your poor credit should start by clearing up any past debts or forgotten bills. Missed payments have a tendency to work themselves into ugly marks on your credit rating, and make for a bad credit file. It is not in their nature for businesses to forget that you didn’t pay them what you owed, and they will almost always eventually contact a collection agency. When a collection agency decides that you aren’t going to pay, they’ll do everything in their power to give you a bad credit history.
These collection agencies are supposed to contact you about your debts first, but if you’ve moved or changed you phone number and they don’t succeed, they won’t be shy about ruining your credit without your permission. If you have a less than perfect credit history, you might have been an unknowing target of one of these agencies.
Whatever the reason, clearing up a bad credit history should start by settling old debts or forgotten bills. Additionally, you want to take steps to show that you can make payments responsibly. Use your credit cards often and pay the minimum payments on your bills immediately. If you don’t have a credit card, get a secured card and likewise make your minimum payments promptly. Credit counseling services can help you find additional ways to fix your bad credit history as well.
Article source: ContentLog.com
Author Description
Bettercreditsecrets is a resource site for those considering an legal credit repair or need bad credit advice. Visit us or check out our credit repair articles at cliksource.
Monday, June 15, 2009
Top 5 Myths About Credit Repair
Thank you for visiting the official blog of RaiseYourCreditScoreNow.com. If you are new here, you may want to subscribe to our RSS feed by clicking the link in the upper right-hand corner of this page that says, "Subscribe to this Blog". Thanks for visiting us!
By: Vincent Polisi
Here Are The Top 5 Insider Secrets For Credit Repair.
1. Myth: To get an inaccurate item corrected, you have to personally dispute it with the credit bureaus and allow them 30 days to verify the accuracy of the information before they will correct or remove the item.
While this is certainly the lease expensive method (it's free if you do it online), it is also the most frustrating and time intensive. If you are looking to make a major purchase of a home or a car, or refinance them, there is a better way. Mortgage lenders and car dealerships have direct access to the credit bureaus through their credit report provider. Credit reports can be updated in as little as two hours utilizing a little known vehicle called a "Rapid Re-Score". This service costs $25 per trade line per credit bureau. So, if an item is reporting incorrectly on all three bureaus, it will cost $75 to correct that account. All that is required is documentation from the lender with a contact name and number indicating the correct information. Upon submission, the information is verified, the credit report is updated and a new credit score is generated. Standard turn times run 48-96 hours but as previously indicated, it can happen in as little as two hours.
2. Myth: If I pay my credit cards off every month my credit report will show the cards with a zero balance and my credit score will be as high as it can be.
If you utilize credit cards every month and pay them off on your due date, your credit report will NEVER show a zero balance on these cards and your score will be negatively affected due to the ratio of utilization versus credit limit.
Why is this? Because the credit card companies report balances owed on the date they generate your monthly statement. So, to "beat the system" you have to change the date you make your monthly payment to precede the statement date. In other words, if your statement is generated on the 15th of the month and your due date is the 25th of the month, every month you will need to go online around the 12th, get your balance and pay it to allow for time to process and register with the credit card company's internal accounting system. Then, on the 15th when your statement is generated, your statement will show that you owe nothing and the credit card company will report your account with a zero balance owed.
3. Myth: You cannot get legitimate derogatory items removed.
There are a variety of ways to get legitimate derogatory items removed ranging from negotiating with the lender to simply disputing the item every month until they get tired of wasting the time and resources to verify it and remove it.
4. Myth: If you have bad credit a bank won't give you a loan.
To rebuild credit, you can go to a bank and buy a Certificate of Deposit (CD). The bank will then allow you to borrow against the CD and make monthly payments. For example, you buy a $2500 CD. You then simultaneously get a loan from the bank with the CD as collateral for $2500. Your out of pocket is zero, but now you have a legitimate bank loan that will report to the credit bureaus. The obvious negative here is that you will pay interest on the loan that is higher than the return on the CD, but when your credit is in need of restoration and rebuilding, you have to "buy" it back.
5. Myth: Closing credit card accounts will help my credit score.
The credit bureaus actually run a ratio of utilization to maximum limit of revolving accounts (credit cards) and this percentage is utilized as a component of your credit score. Always leave credit card accounts open even if you don't use them. Closing them lowers your available credit and negatively impacts your credit score.
Vincent Polisi, President The Wealth Consortium & Finance The Dream http://www.thewealthconsortium.com http://www.financethedream.com vincent@thewealthconsortium.com 404-474-1878
By: Vincent Polisi
Here Are The Top 5 Insider Secrets For Credit Repair.
1. Myth: To get an inaccurate item corrected, you have to personally dispute it with the credit bureaus and allow them 30 days to verify the accuracy of the information before they will correct or remove the item.
While this is certainly the lease expensive method (it's free if you do it online), it is also the most frustrating and time intensive. If you are looking to make a major purchase of a home or a car, or refinance them, there is a better way. Mortgage lenders and car dealerships have direct access to the credit bureaus through their credit report provider. Credit reports can be updated in as little as two hours utilizing a little known vehicle called a "Rapid Re-Score". This service costs $25 per trade line per credit bureau. So, if an item is reporting incorrectly on all three bureaus, it will cost $75 to correct that account. All that is required is documentation from the lender with a contact name and number indicating the correct information. Upon submission, the information is verified, the credit report is updated and a new credit score is generated. Standard turn times run 48-96 hours but as previously indicated, it can happen in as little as two hours.
2. Myth: If I pay my credit cards off every month my credit report will show the cards with a zero balance and my credit score will be as high as it can be.
If you utilize credit cards every month and pay them off on your due date, your credit report will NEVER show a zero balance on these cards and your score will be negatively affected due to the ratio of utilization versus credit limit.
Why is this? Because the credit card companies report balances owed on the date they generate your monthly statement. So, to "beat the system" you have to change the date you make your monthly payment to precede the statement date. In other words, if your statement is generated on the 15th of the month and your due date is the 25th of the month, every month you will need to go online around the 12th, get your balance and pay it to allow for time to process and register with the credit card company's internal accounting system. Then, on the 15th when your statement is generated, your statement will show that you owe nothing and the credit card company will report your account with a zero balance owed.
3. Myth: You cannot get legitimate derogatory items removed.
There are a variety of ways to get legitimate derogatory items removed ranging from negotiating with the lender to simply disputing the item every month until they get tired of wasting the time and resources to verify it and remove it.
4. Myth: If you have bad credit a bank won't give you a loan.
To rebuild credit, you can go to a bank and buy a Certificate of Deposit (CD). The bank will then allow you to borrow against the CD and make monthly payments. For example, you buy a $2500 CD. You then simultaneously get a loan from the bank with the CD as collateral for $2500. Your out of pocket is zero, but now you have a legitimate bank loan that will report to the credit bureaus. The obvious negative here is that you will pay interest on the loan that is higher than the return on the CD, but when your credit is in need of restoration and rebuilding, you have to "buy" it back.
5. Myth: Closing credit card accounts will help my credit score.
The credit bureaus actually run a ratio of utilization to maximum limit of revolving accounts (credit cards) and this percentage is utilized as a component of your credit score. Always leave credit card accounts open even if you don't use them. Closing them lowers your available credit and negatively impacts your credit score.
Vincent Polisi, President The Wealth Consortium & Finance The Dream http://www.thewealthconsortium.com http://www.financethedream.com vincent@thewealthconsortium.com 404-474-1878
Monday, June 8, 2009
The Credit Game
Thank you for visiting the official blog of RaiseYourCreditScoreNow.com. If you are new here, you may want to subscribe to our RSS feed by clicking the link in the upper right-hand corner of this page that says, "Subscribe to this Blog". Thanks for visiting us!
By: Dennis Henson
Do you know the five factors that determine your score in the Credit Game? When playing any game—if you don’t know the rules you are destined to lose and losing this game can be very costly.
As a young boy I was persuaded to put in a nickel and join in a card game. After my first move one of the other players yelled RENEGE and took my nickel. I was shocked! I lost my money because I did not know the rules of the game and I was mad because I let those guys take advantage of me. Back then a nickel was a lot of money to me and losing that money made a big impression. But that taught me a valuable lesson and that was to be sure that I knew the rules before I entered into any other games—especially if they involved money.
As an adult and a real estate investor I found myself playing another game where I didn’t know the rules and this one was costing me a lot of nickels. Once I realized it was a game and one that I had no choice but to play—I was determined to master the rules and start winning. The game is the Credit Game and if you want to keep your money you have to play it whether you like it or not.
Here is an overview of the rules.
Scores range from 350 to 850 and the goal is to attain a score of 720 or higher. Although a score of 680 is considered to be excellent it takes a 720 to be a consistent winner.
There are five major factors that determine the score. They are in order of importance:
• Payment History = 35%
• Outstanding Balances = 30%
• Length of Credit History = 15%
• Types of Accounts = 10%
• Credit Inquiries = 10 %
1. Payment History: Points are gained by making payments and making them on time every time. Points are lost for missed or late payments and lots of points are lost for any public records such as judgments or bankruptcies. Points can be regained by learning to challenge and having these derogatory items removed from the score sheet.
2. Outstanding Balances: The use of revolving credit can have a positive effect on the score. Higher scores will result from having several older revolving accounts that have excellent payment histories and low use of available credit. If more than one-third of the available credit, on any credit card, is used points will decrease substantially. The score can be raised by paying the balance down or by transferring some card balances to other cards to bring all of them below the magic 30% level.
3. Length of Credit History: The longer there has been access to credit, the higher the score and the longer it has been since there have been any credit problems, the better the score. Example: Having open revolving accounts in good standing for 20 years will make the score much higher than if the account was recently started. The dates of last action also have an affect on this portion of the score. Paying off old collections will only move the last action date to the present and points will be lost.
Tip: One of the quickest ways to improve a score is by getting listed on someone’s long term well paid account.
4. Types of Credit Accounts: Points are given for having a number of different kinds of open accounts that are in good standing and have been open for a good amount of time. Points are taken depending on the risk that is associated with each of these accounts, and the ratio between revolving accounts (i.e. credit cards) and installment accounts (i.e. bank loans). Keeping a good balance will increase points.
5. Credit Inquiries: By avoiding having credit checked—scores will remain higher. Having credit checked often will lower the score. Too many new accounts and lots of credit inquiries cost points. Points are also lost when credit is shopped. For example when purchasing an automobile—a bank will probably only do one credit check but an auto dealership might shop the credit and many points could be lost.
Losing at this game will inevitably result in being denied new credit or receiving loans with high origination fees and at ridiculously high interest rates. But winning the Credit Game will save untold thousands of dollars over a lifetime. No matter how good or poor your credit is—it can be made better by learning the rules of the game and following them to the letter. To learn more about how to play the Credit Game I suggest you get “7 Steps to a 720 Credit Score” by Phillip X. Tirone and study the techniques in that program.
For more articles on real estate investor training and to sign up for free reports, articles and e-books please visit my website at http://www.dennisjhenson.com. Also visit http://www.turbo-bidder.com for great real estate investor tools. Thank You, Dennis Henson
By: Dennis Henson
Do you know the five factors that determine your score in the Credit Game? When playing any game—if you don’t know the rules you are destined to lose and losing this game can be very costly.
As a young boy I was persuaded to put in a nickel and join in a card game. After my first move one of the other players yelled RENEGE and took my nickel. I was shocked! I lost my money because I did not know the rules of the game and I was mad because I let those guys take advantage of me. Back then a nickel was a lot of money to me and losing that money made a big impression. But that taught me a valuable lesson and that was to be sure that I knew the rules before I entered into any other games—especially if they involved money.
As an adult and a real estate investor I found myself playing another game where I didn’t know the rules and this one was costing me a lot of nickels. Once I realized it was a game and one that I had no choice but to play—I was determined to master the rules and start winning. The game is the Credit Game and if you want to keep your money you have to play it whether you like it or not.
Here is an overview of the rules.
Scores range from 350 to 850 and the goal is to attain a score of 720 or higher. Although a score of 680 is considered to be excellent it takes a 720 to be a consistent winner.
There are five major factors that determine the score. They are in order of importance:
• Payment History = 35%
• Outstanding Balances = 30%
• Length of Credit History = 15%
• Types of Accounts = 10%
• Credit Inquiries = 10 %
1. Payment History: Points are gained by making payments and making them on time every time. Points are lost for missed or late payments and lots of points are lost for any public records such as judgments or bankruptcies. Points can be regained by learning to challenge and having these derogatory items removed from the score sheet.
2. Outstanding Balances: The use of revolving credit can have a positive effect on the score. Higher scores will result from having several older revolving accounts that have excellent payment histories and low use of available credit. If more than one-third of the available credit, on any credit card, is used points will decrease substantially. The score can be raised by paying the balance down or by transferring some card balances to other cards to bring all of them below the magic 30% level.
3. Length of Credit History: The longer there has been access to credit, the higher the score and the longer it has been since there have been any credit problems, the better the score. Example: Having open revolving accounts in good standing for 20 years will make the score much higher than if the account was recently started. The dates of last action also have an affect on this portion of the score. Paying off old collections will only move the last action date to the present and points will be lost.
Tip: One of the quickest ways to improve a score is by getting listed on someone’s long term well paid account.
4. Types of Credit Accounts: Points are given for having a number of different kinds of open accounts that are in good standing and have been open for a good amount of time. Points are taken depending on the risk that is associated with each of these accounts, and the ratio between revolving accounts (i.e. credit cards) and installment accounts (i.e. bank loans). Keeping a good balance will increase points.
5. Credit Inquiries: By avoiding having credit checked—scores will remain higher. Having credit checked often will lower the score. Too many new accounts and lots of credit inquiries cost points. Points are also lost when credit is shopped. For example when purchasing an automobile—a bank will probably only do one credit check but an auto dealership might shop the credit and many points could be lost.
Losing at this game will inevitably result in being denied new credit or receiving loans with high origination fees and at ridiculously high interest rates. But winning the Credit Game will save untold thousands of dollars over a lifetime. No matter how good or poor your credit is—it can be made better by learning the rules of the game and following them to the letter. To learn more about how to play the Credit Game I suggest you get “7 Steps to a 720 Credit Score” by Phillip X. Tirone and study the techniques in that program.
For more articles on real estate investor training and to sign up for free reports, articles and e-books please visit my website at http://www.dennisjhenson.com. Also visit http://www.turbo-bidder.com for great real estate investor tools. Thank You, Dennis Henson
Monday, June 1, 2009
10 Most Common Credit Repair Mistakes And How To Aviod Them.
Thank you for visiting the official blog of RaiseYourCreditScoreNow.com. If you are new here, you may want to subscribe to our RSS feed by clicking the link in the upper right-hand corner of this page that says, "Subscribe to this Blog". Thanks for visiting us!
By: Brian Diez
Here are some of the most common mistakes consumers make when trying to repair their own credit and some tips on how to avoid them.
1. Closing old accounts
The age of your accounts, types of accounts, and amount of debt used make up a total of 55% of your credit score. When you close an account you remove that account from the equation. That’s usually not a good thing.
Instead it’s much wiser to use your old cards once every 6 months to keep them active. Just be sure to pay off the balance within 2 -3 months.
2. Using template credit repair letters
The credit bureaus aren’t stupid. They keep records of every dispute you make. In fact, they keep records of all disputes. When they see a dispute often enough (like a template dispute you may find on the internet along with thousands of other net surfers) they are much more likely to mark that dispute as frivolous; since the odds are the person using it is either a fly-by-night credit repair service or an amateur.
Once your account has been flagged it will be much more difficult to make any further progress on your credit report. Use the template to give you an idea of what you need to say, and then put it in your own words.
3. Reviving the statute of limitations
The statute of limitations is the period of time a creditor can sue for a balance owed. The time varies state by state, but begins on the date of your last payment. Making ANY payment, even 20 years later, will cause the debt to reactivate and become legally enforceable. Before making any payments be sure to research whether or not the debt is within the statute of limitations.
4. Not using certified mail
Believe it or not, credit repair is a legal process. Any lawyer will tell you it’s not what you know, but what you can prove that counts. According to the Fair Credit Reporting Act (FCRA) the credit bureaus, creditors, and collection agencies have 30 days to investigate and respond to your disputes. This is a major weapon in your arsenal because lenders maintain millions of records. It can be very difficult for them to produce the requested documents.
5. Not disputing in the proper order
When disputing you are requesting the bureaus and your creditors to prove they are following the law to the letter. If they are not your ultimate recourse is a law suit. Your case won’t hold water if you don’t follow the proper procedures.
If you’re going to ask for leniency from a creditor, do that before disputing with the bureaus. If you plan to fight a remark on your report, you must dispute with the bureaus first.
6. Giving up too soon
While you may get immediate results if you have evidence of wrong doing, you can still get good results if you’re
persistent enough. For instance, most collection agencies will reply to a request for validation with a template letter.
This letter violates the Fair Debt collections Practices Act (FDCPA). By following up you can leverage their violation into a deletion or a law suit.
7. Not validating with the creditor or collection agent first
Many consumers are too quick to pay off creditors and collection agents just to stop the harassing calls or in an effort to clean up their credit history. Before paying any past due debt, you have the right to request validation that the debt is yours. You’d be surprised how often they fail to comply.
8. Not keeping copies of all correspondence
Every letter you send and receive from a creditor or collection agent can be used to build your case. Never negotiate or accept offers unless they’re in writing. Document EVERYTHING.
9. Validating negative information
Another common credit repair rookie mistake is to validate negative information while trying to dispute the information being reported. The rule of thumb is the less you say the better. Make them prove themselves to you. The law is on your side.
10. Not hiring a professional
Credit repair may seem simple. As you can plainly see, it’s not. To get fast results far above anything you could ever do on your own without years of experience, trial and error, and maybe an ulcer, you’d do well to invest a few hundred dollars hiring a reputable credit repair service.
Get your FREE cd, FREE ebook, and FREE coaching call with Brian and learn how to boost your credit score as much as 249 points in as little as 45 days at http://www.ScoreMoreCredit.com.
By: Brian Diez
Here are some of the most common mistakes consumers make when trying to repair their own credit and some tips on how to avoid them.
1. Closing old accounts
The age of your accounts, types of accounts, and amount of debt used make up a total of 55% of your credit score. When you close an account you remove that account from the equation. That’s usually not a good thing.
Instead it’s much wiser to use your old cards once every 6 months to keep them active. Just be sure to pay off the balance within 2 -3 months.
2. Using template credit repair letters
The credit bureaus aren’t stupid. They keep records of every dispute you make. In fact, they keep records of all disputes. When they see a dispute often enough (like a template dispute you may find on the internet along with thousands of other net surfers) they are much more likely to mark that dispute as frivolous; since the odds are the person using it is either a fly-by-night credit repair service or an amateur.
Once your account has been flagged it will be much more difficult to make any further progress on your credit report. Use the template to give you an idea of what you need to say, and then put it in your own words.
3. Reviving the statute of limitations
The statute of limitations is the period of time a creditor can sue for a balance owed. The time varies state by state, but begins on the date of your last payment. Making ANY payment, even 20 years later, will cause the debt to reactivate and become legally enforceable. Before making any payments be sure to research whether or not the debt is within the statute of limitations.
4. Not using certified mail
Believe it or not, credit repair is a legal process. Any lawyer will tell you it’s not what you know, but what you can prove that counts. According to the Fair Credit Reporting Act (FCRA) the credit bureaus, creditors, and collection agencies have 30 days to investigate and respond to your disputes. This is a major weapon in your arsenal because lenders maintain millions of records. It can be very difficult for them to produce the requested documents.
5. Not disputing in the proper order
When disputing you are requesting the bureaus and your creditors to prove they are following the law to the letter. If they are not your ultimate recourse is a law suit. Your case won’t hold water if you don’t follow the proper procedures.
If you’re going to ask for leniency from a creditor, do that before disputing with the bureaus. If you plan to fight a remark on your report, you must dispute with the bureaus first.
6. Giving up too soon
While you may get immediate results if you have evidence of wrong doing, you can still get good results if you’re
persistent enough. For instance, most collection agencies will reply to a request for validation with a template letter.
This letter violates the Fair Debt collections Practices Act (FDCPA). By following up you can leverage their violation into a deletion or a law suit.
7. Not validating with the creditor or collection agent first
Many consumers are too quick to pay off creditors and collection agents just to stop the harassing calls or in an effort to clean up their credit history. Before paying any past due debt, you have the right to request validation that the debt is yours. You’d be surprised how often they fail to comply.
8. Not keeping copies of all correspondence
Every letter you send and receive from a creditor or collection agent can be used to build your case. Never negotiate or accept offers unless they’re in writing. Document EVERYTHING.
9. Validating negative information
Another common credit repair rookie mistake is to validate negative information while trying to dispute the information being reported. The rule of thumb is the less you say the better. Make them prove themselves to you. The law is on your side.
10. Not hiring a professional
Credit repair may seem simple. As you can plainly see, it’s not. To get fast results far above anything you could ever do on your own without years of experience, trial and error, and maybe an ulcer, you’d do well to invest a few hundred dollars hiring a reputable credit repair service.
Get your FREE cd, FREE ebook, and FREE coaching call with Brian and learn how to boost your credit score as much as 249 points in as little as 45 days at http://www.ScoreMoreCredit.com.
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