RaiseYourCreditScoreNow.com's Blog

Sample Letter to Validate a Debt

2009-08-31T21:15:00.002-05:00

Watch this video as we discuss what to do when you receive a demand letter from an original creditor or collection agency. Be sure to watch the end to see how you can get a free copy of a sample letter to validate a debt.

Mortgage delinquencies hit record high in Q2

2009-08-20T10:00:00.000-05:00

Got Bad Credit? It Ain’t Late Yet

2009-07-27T09:48:00.000-05:00

Your Credit Report Could Sink Your Job Prospects! 5 Critical Tips!

2009-07-20T09:41:00.000-05:00

Improving One’s Credit Reputation

2009-07-13T09:35:00.000-05:00

Some Tips To Help You On The Quest To Repair Bad Credit

2009-07-06T09:00:00.000-05:00

How To Choose The Best Credit Card

2009-06-29T13:34:00.000-05:00

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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

Don’t Let A Bad Credit History Ruin You Forever

2009-06-22T13:29:00.000-05:00

Top 5 Myths About Credit Repair

2009-06-15T13:27:00.000-05:00

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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

The Credit Game

2009-06-08T13:23:00.000-05:00

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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

10 Most Common Credit Repair Mistakes And How To Aviod Them.

2009-06-01T13:25:00.000-05:00

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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.

Meltdown 101: How new credit card rules affect you

2009-05-20T20:15:00.001-05:00

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Meltdown 101: How will the changes in credit card regulations affect ordinary cardholders?

Candice Choi, AP Personal Finance Writer

The overhaul of the credit card industry is being hailed as a triumph for long-abused consumers. But before you start banking on falling interest rates or vanishing fees, you might want to read the fine print.

Credit card legislation that Congress sent President Barack Obama on Wednesday bans certain practices by card issuers, but there's still no limit on the charges that can come with your monthly statement. And it's likely credit card companies will start searching for additional ways to earn profits.

That means cardholders across the board -- even those who always pay on time -- will probably see higher charges on a variety of services.

Obama is expected to sign the bill in the coming days. Credit card lenders will then have nine months to be in compliance.

Here are some questions and answers about protections the bill spells out -- and others that it doesn't.

Q: What practices are still allowed that I should be aware of?

A: The bill doesn't cap interest rates, as some lawmakers had hoped it would. While lenders generally can no longer raise rates on existing balances -- at least until the cardholder is very late with payments -- they can still raise them going forward.

That's true even for people who already saw their rates climb in recent months. The bill doesn't shield from further hikes in coming months -- or ever.

"With all these limitations, (card issuers) still have a lot of freedom to charge what they want," said Ruth Susswein, a spokeswoman for Consumer Action, an advocacy group in Washington, D.C.

Q: What if I always paid my bills on time?

A: There will likely be higher fees and interest rates across the board to make up for lost profit.

Card issuers in the past few months have already started raising fees for services such as balance transfers and cash advances. It's a trend that's likely to continue in the near future.

Card issuers also might start charging higher rates at the outset, when a customer gets a new card.

Getting approved for a new credit card will probably be harder, too -- even for those with a solid credit history. And if approved, the card will probably come with a lower credit limit than in the past.

With credit so much harder to come by, people could begin turning to outlets such as payday lenders and pawn shops, said Greg McBride, senior analyst with Bankrate.com.

"In the absence of credit cards, people in need of a short-term loan will resort to other means," he said.

Q: What can I expect to happen in the next nine months?

A: Be on the lookout for any letters from your credit card company. They could be notifications about rate or fee hikes as card issuers prepare to get in compliance with the new bill.

"The next nine months are going to be filled with issuers implementing changes while they still can," McBride said.

Q: So what specific practices DOES the bill ban?

A: Card issuers will no longer be able to raise interest rates on existing balances. The exception is if a payment is 60 days late; at that point, there's no cap on how much they can hike rates. If the cardholder pays the minimum balance on time, though, the lender would be required to restore the lower rate after six months.

Among other restrictions:

-- Consumers will have to get 45 days' notice and an explanation before their interest rate could be increased.

-- If a company uses "risk-based pricing" to raise rates on riskier borrowers, they have to use that same methodology to lower rates when appropriate.

-- The Federal Reserve in coming months will determine what constitutes "reasonable and proportional" penalty fees. This might include a cap on the dollar amount card issuers could charge for penalties such as late fees.

-- Card issuers can charge a fee for over-the-phone payments only if you speak with a live operator. Charges will no longer be allowed for automated phone or online payments.

-- You will have to opt in for the ability to go over your credit limit, which can trigger a fee as high as $40. Issuers will also be limited to charging three over-the-limit charges for a single infraction. So if your balance goes over the limit and you fail to make any payments, you could only be charged over-the-limit fees for three payment periods; right now, issuers can continue charging that fee indefinitely on unpaid balances.

-- Those 21 and under will need to show they have an independent source of income to get a credit card. Otherwise, they will need a co-signer.

Q: How will my communications with my card issuer change?

A: For starters, you might be getting your bills sooner; companies need to send statements at least 21 days before payments are due under the new bill.

Card holders will also be able to clearly see how much it's costing them to borrow. For instance, monthly bills will come with little boxes stating how much they've paid in interest and in fees year-to-date.

Statements will also spell out how long it will take to pay off a balance if only a minimum payment is made. And companies will need to include a toll-free number where the cardholder can get information about credit counseling and debt management.

Q: How does the new legislation differ from other regulations that were recently imposed?

A: Some of the new rules were already spelled out in regulations adopted by the Federal Reserve this winter; those regulations go into effect in July 2010.

The new bill is more specific and offers greater protection by making the changes law. In general, laws are much more difficult to alter or eliminate than regulations as they require an act of Congress.

Don’t Let A Bad Credit History Ruin You Forever

2009-04-27T14:56:00.000-05:00

The Realities About Bad Credit Debt Consolidation

2009-04-20T08:53:00.000-05:00

How to Get a Free Credit Report MP3 Now on Podbean!

2009-04-13T22:38:00.003-05:00

Bankruptcies surge despite law meant to curb them

2009-04-13T19:04:00.002-05:00

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AP Enterprise: Bankruptcies are surging despite law that made them tougher and more expensive
Mike Baker, Associated Press Writer

Monday April 13, 2009, 6:40 pm EDT

RALEIGH, N.C. (AP) -- The number of U.S. businesses and individuals declaring bankruptcy is rising with a vengeance amid the recession, despite a three-year-old federal law that made it much tougher for Americans to escape their debts, an Associated Press analysis found.

"There's no end in sight," said bankruptcy lawyer Bryan Elliott of Hickory, N.C., who is working seven days a week and scheduling prospective clients a month in advance. "To be doing this well and having this much business, it is depressing. It's not a laugh-a-minute job."

Nearly 1.2 million debtors filed for bankruptcy in the past 12 months, according to federal court records collected and analyzed by the AP. Last month, 130,831 sought bankruptcy protection -- an increase of 46 percent over March 2008 and 81 percent over the same month in 2007.

Bob Lawless, a professor at the University of Illinois College of Law, said bankruptcies could reach 1.5 million this year and level off at 1.6 million next year -- around the same time economists expect an economic recovery to begin.

Congress voted in 2005 to make bankruptcy more cumbersome after years of intense lobbying from the nation's lenders, who complained that people were abusing the system. Before the move to change the law, bankruptcies were running at what was then an all-time high of about 1.6 million per year.

The tighter requirements initially appeared to work, with bankruptcies plummeting from a record-shattering 2 million cases in 2005 -- a total that reflected a rush to file before the new law took effect -- to 600,000 in 2006. But now bankruptcies are booming again.

"You wouldn't get this large of a rise without serious problems in the economy," said Lynn LoPucki, a UCLA law professor who researches bankruptcy.

The bankruptcy rate is climbing as well. In the past 12 months, about four people or businesses for every 1,000 people in the country filed for bankruptcy, according to the AP analysis. That is twice the rate in 2006, and close to the average of about five for every 1,000 in the decade leading up to the change in the law.

Lawless said the shame of bankruptcy may have eased somewhat in recent years, but added, "It's still a very stigmatizing, traumatic event for most everyone who files."

Previous recessions also drove people to bankruptcy court, though those increases were more moderate. Bankruptcies went up 19 percent amid the economic contraction in 2001, and about 15 percent during the recession of the early 1980s, according to the Administrative Office of the U.S. Courts.

Bankruptcy is considered a lagging economic indicator, since it is generally a last resort. The filings compiled by the AP illustrate the places where the economic meltdown has hit hardest.

In March, bankruptcy filings jumped the highest across the West. In Arizona, filings rose 91 percent from a year ago. They were up 84 percent in Idaho, 82 percent in California and 79 percent in Nevada, though those were trumped by Delaware, home to many large corporations, which saw a 127 percent jump.

Emory Clark, an Atlanta bankruptcy attorney who has been in the business for 25 years, said he is seeing more affluent people, many who have lost their jobs.

"There's something about human nature or American culture, but people hate filing for bankruptcy," Clark said. "It really is a stamp of failure. Nobody wants to come in here and pay us money to file. They are forced in because of circumstances."

Kathy Stevens of Vista, Calif., opened a tea and coffee boutique in August 2007, and it grew steadily. Then enrollment started to fall at a nearby mom-and-tot gym her customers frequented, and her business took a hit. The gym finally closed in the fall.

Stevens and her husband spent more than $35,000 to keep the boutique afloat, drawing on their own money and donations from family. After working from 6 a.m. until almost 10 p.m., seven days a week for months on end, Stevens realized her store would not survive. The couple filed for bankruptcy two weeks ago.

"You feel bad, because you never set out to do this," Stevens said. "We're trying to put it behind us and lick our wounds and move on."

Under the 2005 law, Congress imposed higher fees on those seeking bankruptcy and began requiring credit counseling sessions and a means test to assess debtors' ability to pay what they owed.

Lawless, the Illinois law professor, said his research found that the law simply increased the cost of filing by 50 percent and led many more people to cling to false hope longer.

Many filers take a credit counseling class just a day before turning to the courts.

Also, the law's test of a person's ability to pay off debts appears to have failed at one of its goals: steering debtors from Chapter 7, which allows people to sell off their assets to repay what they can and start again debt-free, and into Chapter 13, which places the filer in a repayment plan that can last for years. Chapter 7 cases accounted for 69 percent of all filings in the past year, compared with 71 percent in 2004.

Lawless argued that only a tiny number of people were abusing the system before the 2005 shift, and that the law punishes those who genuinely need help.

"The point of the bankruptcy system is to give the honest but unfortunate debtor a fresh start," Lawless said. "The fact that people are waiting longer to file shows just how mean-spirited the law is."

Boost Your Credit Score

2009-03-28T22:10:00.002-05:00

What You Need to Know About Credit Repair

2009-03-21T13:14:00.005-05:00

Have you been turned down for a mortgage, car loan, or anything else? Are you tired of paying high interest rates?

If we can show you how to:

1. Improve your chance of getting approved for whatever you want,
2. Save money and pay lower interest rates,
3. Establish a better credit rating,

would you be interested?

There are many reasons why you want to have good credit. Here are a few:

1. To get approved for a mortgage to achieve the "American Dream",
2. To get approved for an apartment,
3. To get a credit card with a lower interest rate,
4. To get that car you always wanted,
5. To buy that LCD or plasma TV, a computer, or some other toy without having to pay cash,
6. To pay a lower rate on automobile, health, or life insurance,
7. And to have a better lifestyle and more confidence.

Get your FREE 24-page report at RaiseYourCreditScoreNow.com. In it you will learn:

1. Who the credit reporting agencies are and what they do,
2. What are credit repair and counseling services,
3. What is the Credit Repair Organizations Act,
4. How to report unethical business practices,
5. Where do credit reports come from,
6. How to request your credit report,
7. What are the factors that affect your credit score,
8. How to improve your credit,

and much, much more.

Stop living a less than ideal life now and start building GOOD credit NOW!

Bad Credit: 3 Rapid Ways to Fix or Repair

2009-03-14T17:58:00.002-05:00

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Posted by Nordin Brett

With the deluge of information available and extraordinary offers from companies to fix or repair your bad credit, it is difficult to believe that 80% of cases can be resolved in short-order by only focusing on a few areas of a credit report. Based on my experience as a mortgage professional and credit analyst, I can usually pinpoint the cause of a low credit score with a few simple steps and increase the credit score within 30 days.

Here are the 3 most common credit issues I uncover and the fastest way to resolve them.

Credit card balances exceed 30% of the credit limit:

1. Pay down the credit cards to less than 30 percent of the credit limit
2. Ask the credit card company to increase the limit. This can sometimes be done on your online banking system. If not, here are the questions to ask over the phone:
- Can you increase my credit limit without pulling my credit score?
- Can I request a specific limit or will you deny me all together? Will you make a counter offer?
3. If you have some credit cards with low balances, transfer funds from one card to another so that each has less than a 30% balance
4. If you are 4 months from needing a mortgage, obtain a new credit card and transfer balances so each is less than 30% of the credit limit

Remove all errors from your credit report:

Concentrate only on high priority errors that happened within the last 2 years. High priorities are:
1. Information that is listed more than once, verify there are no duplicate collections
2. Negative payment history
3. Bankruptcy items that are still showing as past due accounts
4. Accounts that are not yours
5. Collection notices that are not yours
6. Social Security Numbers and names that are not yours
7. Accuracy of credit limits; no reporting or low limits can hurt

Do NOT focus on date of birth, address, wrong employer, delinquencies older than 2 years or wrong account numbers.

Collections or Charge Offs showing on the credit report:

1. Never pay a collection unless the creditor or collection agency has not agreed to delete the collection in writing. Paying a collection is like admitting guilt and this will lower your credit score.
2. Collections 2 years or older will only hurt your credit minimally and they are not worth pursuing.
3. Try to get the collection deleted from your credit report by receiving a letter of deletion from the creditor or collection agency.
4. Always negotiate charge-offs before settling a payment. Most creditors will accept less than 50% of the remaining balance.

By focusing on just these 3 areas of your credit report, you can dramatically increase your credit score within 60 days.

Article source: ContentLog.com

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Brett Nordin is a veteran mortgage broker who has saved his clients hundreds of dollars in unnecessary credit repair fees. To get a FREE guide toCredit Repair and Credit Score Maximization Click Here

Rebuilding Damaged Credit

2009-03-05T23:43:00.001-06:00

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Posted by Nordin Brett

We’ve all had times of uncertainty in our lives. Job loss, medical problems, divorce, a death in the family and other life-changing events can all be factors in creating financial distress. During these times bills pile up, payments are missed, automobiles repossessed and houses foreclosed. If we are able to recover, scars are left on our credit report to remind us of the financial hardship we endured. Most people give up, hoarding cash under their mattress and swearing off credit cards forever. Living off the grid might seem like a safer place to be but then life happens again and we want to buy a house or a car. There is a sudden desire to rekindle our credit but the task seems daunting. How can we begin rebuilding our damaged credit?

The good news is that the credit system is set-up to give us a do-over. There are two main factors in rebuilding credit. First, time is on our side. The old saying "time cures all" is alive and well in the credit world. Collections that are older than two years have only a small impact on our credit score. Late payments and other derogatory items fall off a credit report after seven years. Second, we must re-establish positive credit history. This is the part that most people struggle with. The knee-jerk reaction is to stop all credit activity, however, keeping credit lines open and building positive payment history can accelerate your credit score.

Think of credit like school; you can barely pass high school but go on to graduate with honors in college. Employers don’t care what you did in high school if you graduated Suma Cum Laude in college. Creditors think the same way, your most recent credit has the highest impact on their perception of your ability to repay debt.

So how do we begin our journey to credit re-birth? Here is a list of the basic activities you can perform to begin rebuilding your damaged credit:

1. Get added as an authorized user on a family member’s credit card that will has a good payment history. This will not impact the owner’s credit.
2. Remove your name from authorized accounts that hurt your score.
3. Take out a small title loan or installment loan for an automobile or other personal property.
4. Take out a secure credit card - ask your bank how.
5. Do not contact consumer credit counseling companies. These types of companies are viewed similarly to a bankruptcy by the credit bureaus.
6. Don’t forget, time is on your side:
o Inquiries made by creditors fall off your report 2 years from the reporting date
o Late payments fall off 7 years from the reporting date
o Bankruptcy and foreclosure falls off 10 years from the reporting date

In my experience, rebuilding damaged credit can be a fairly simple and short process if you get sound advice and are willing to spend a little time.

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Brett Nordin is a veteran mortgage broker and credit analyst. To get a FREE guide to Credit Repair and Credit Score Maximization Click Here

Improving Credit With Credit Repair

2009-02-27T23:20:00.001-06:00

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Posted by Brown Jim on November 19th, 2007 in Finance

Don’t feel helpless and hopeless if you have bad credit for this will not last forever. You can actually take steps to help begin the repair of your credit.

When you have a bad credit situation one of the initial steps that you could take would be to stop using your credit cards for you don’t want to continue accumulating credit card purchases and increasing your credit card debt. Until you are in control of your financial situation, I suggest that you refrain from using your credit cards.

Try to secure a copy of your credit report. Being able to review your credit report will give you an idea of what areas to improve and what possible courses of action you can take. Get a copy of your credit report from the three credit bureaus.

Check your credit report. If you happen to find any mistakes, report the incorrect information to have them removed. Your credit report will contain as well information about incorrect information that has been disputed with any of the credit bureaus.

About 35% of credit score is made up of your payment history so it is best that your past due accounts have a current status. Turning delinquent accounts into current status can have a significant impact on your credit rating and standing.

Avoid adding in more credit applications while you are trying your best to repair and improve you credit. You will likely be turned down and denied of credit and such denied applications will only help decrease your credit score.

Accounts with balances should be kept open. While you may be tempted to terminate delinquent credit card accounts, ensure that doing such will not affect your credit rating negatively in any manner.

Try to call your creditors for while you feel they are the last people you want to talk to, you may find that they might be willing to help you out with your current financial situation. Try to negotiate with your creditors to pay in smaller monthly payments for a specified time period until you are up on your feet with regards your financial standing.

Paying off your debts will definitely improve your credit and financial situation. If you do not have the cash on hand you can always make a sacrifice for instance by selling off some of your belongings to speed up the paying process.

Don’t be ashamed to get help. Professional help like credit counseling is available to aid you on possible options and courses of action to help you with your credit problem.

You cannot expect your credit damage to be repaired overnight. Be patient and continue what you have started by continuing on the steps you have undertaken to improve your credit.

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James Brown writes about Adaptive Marketing key code, Academy Law web code and FreeCreditReport.com deals