Marc Chase asked:


Credit Repair is a very debated topic on the net right now as to whether it’s legal, effective, ethical and an avenue worth pursuing for individuals with negative, inaccurate or unverifiable information on their credit reports. No matter where you search, you will find varying opinions in regard the legitimacy of the credit repair industry, from the FTC and Attorney General, to debt consolidation companies and law firms practicing credit repair companies.

First off to answer the question “is credit repair and its practitioners legal,” the answer is yes! There is a specific body of legislation, the Credit Repair Organizations Act (CROA) that outlines how credit repair companies may legally operate. This Federal regulation is proof that the industry as a whole is legal and not a scam. I think the negative overtones are more likely a case of a few hundred bad apples taking advantage of people.

The second most debated topic in many of the popular credit forums is whether or not one should even use a credit repair company, or give it a go themselves? The art of credit repair or credit restoration is not necessarily a difficult one to grasp and despite what a lot of the credit repair companies and lawyers would like you to believe, there is no “magical, proprietary dispute letter.” Remember, the Fair Credit Reporting Act (FCRA) was set up so that consumers could fix errors on their credit reports on their own. It was not set up so consumers could fix errors If they had the magic letter. It really is almost as simple as saying…

“Hey this is not my account, please verify the information and remove from my report”

So why would you consider hiring a company to improve your credit score if it is so easy? The art of credit repair is not perfectly written letter, but more of knowing the little tricks credit bureaus and collection agents use to avoid eliminating the debt.

As much bad press credit repair agencies have received, bureaus and collection agencies are no angels either. They try and trick you, they don’t always follow procedure and we’ve seen numerous cases of them breaking promises consumers have made with them when negotiating debt.

Credit report repair agencies should be well versed and know what to expect and exactly how to negotiate through all the little tricks that the average consumer wouldn’t. If you are lucky enough to be working with an ethical company that does its job and at a good price, it can work wonders for your credit score.

The people we spoke with that do favor using an agency to fix their credit, do so because typically it’s only 30.00 to 50.00 per month and they just don’t feel like dealing with the headaches, nor do they want to be their own guinea pigs.

If you do make the decision you would rather leave it to the pros, what steps should you take to make sure you’re hiring the right company? At the time of writing this there is very little governing the industry outside of CROA and it is a craps shoot for the most part.

However, there is hope on the horizon. Currently a non-profit organization is being formed called the National Credit Repair Association (NCRA) This industry organization brings overdue legitimacy and integrity to the credit repair field, and represents all certified credit repair organizations. The idea is that accredited credit repair firms are overseen to ensure they embody top standards and ethics, and adhere to all applicable state and federal laws in their practices. In other words, the “BBB” of the Credit Repair Industry.

We highly recommend that you utilize this service when fully launched as it will force legitimate companies to sign up much like they would the BBB and it will also weed out the unscrupulous credit repair companies who do not wish to adhere to standards. The credit repair industry is a legal and much needed industry, but much like any “new fad” it’s going to take time to get regulated, weed out the scum and let the professionals rise to the top.

In closing, credit repair is something that most Americans will probably have to deal with at some point in their lives. It can be done by you with a little homework, accurate record keeping and patience, or you can hire a firm just as long as you’ve done your homework, insist the company is a member of The NCRA and make sure they are not breaking laws when dealing with your personal credit scores.

Lee Beattie asked:


No one plans to contend with bad credit when they start out on their own but, regrettably, matters take place and we fall behind on our obligations. Maybe you lost your job and had trouble acquiring a new one or you got ill and missed a good deal of work, either way you fell behind on bills and nowadays your credit is troubled. You can opt to start with a credit repair company only many a find that the best means to go is self credit repair.

Restoring your own credit is simple to perform if you know what you are managing. One of the first things that you need to do with self credit repair, is to get a copy of your credit report from the three credit bureaus. To me the chance to take a look at your entire credit history and learn what areas you demand to work on. Each of the 3 credit bureaus provides a free copy of your credit report one time a year. You can go direct to all of their web sites to request your free copy.

The next thing you’ll need to do when performing self credit repair, is make up a list of the duplicate entries on your credit reports. This is a quick means to advance your credit score as you can speedily have creditors erase duplicate entries. You would plainly write a letter to every creditor that bears a duplicate entry and explain to them the situation and call for that they readily remove that multiple entry from your credit history. If you’re doubtful how to formulate the letter to your creditor, you can get a free credit repair kit on how to repair your credit history yourself from whatever of the three major credit bureaus.

Once you clear the duplicate entries as well every bit the errors given on your credit reports, you can concentrate on paying off some of the smaller debts and make up payments to larger ones. While processing of a credit repair can be time consuming, it could be worsened if you don’t establish some effort to it. You will discover that in no time at all, your credit score will be getting higher and you’ll be well on your means to the credit score you deserve.

Never feel that your credit score is out of your control as on that point is always a means to fix things. Once you start your credit score on the appropriate track you need to be sure to set up a budget that you can comply with each week and be sure to include each of your incoming money as well as all of your expenses. This will serve you to maintain your credit score on the great side while improving on it each month.

If you would like more information on this topic and want Fast Credit Repair or if you are in need of Free Credit Repair, Beatlands Credit Repair has many credit repair topics and tips that can be very useful.

Jim Kemish asked:


Pay Your Bills on Time

Credit repair means timely payments. Does this go without saying? If you want to repair your credit and improve your credit scores you cannot afford new late payments on your credit report. New late payments will have a major impact on your scores, as much as 100 points. The initial impact of a late payment will fade over time, so get those late payments behind you forever.

Open New Accounts

If you don’t have any open and active accounts on your credit report you cannot expect your credit repair effort to succeed. Credit scores are based on two broad categories of data, the good and the bad.  Removing the bad stuff will get you halfway to your goal, but in the world of credit halfway doesn’t count for much. You need to build the good as well. It’s time to open new accounts, and credit cards are the perfect credit repair tool.

Try Secured Credit Cards

If you are trying to build new credit but can’t get approved for a credit card, try a secured card. It’s easy! Secured credit cards require a small saving account which will usually secure the entire credit line on your new card. Most secure cards require a minimum deposit of two to three hundred dollars. Don’t be embarrassed by the small amount, these little cards carry big credit repair power.

Manage Your Revolving Balances

The key to optimizing your credit scores with credit cards – aside from making your payments on time - is prudent balance management. The lower the better, but there are specific targets you should know. The current credit scoring model in use by lenders recognizes 20, 40, 60, 80, and 100 percent usage. 20 and 40 are good, 60 is neutral, while 80 and 100 percent usage will reduce your scores, and if you want credit repair success, don’t even think of going over the limit.

Credit Repair and Authorized User Cards

Authorized user accounts have been the subject of much debate. Some credit repair companies, operating in a gray area of the law, have sold authorized card status for years to people who wanted a quick credit score boost. On July 31, 2008 Fair Isaac announced a software fix which blocks the benefit of these brokered accounts while leaving intact the benefit of legitimate spouse and family member cards. So if you have a relative with awesome credit that wants to help your credit repair project, have them add you as an authorized user and watch your score pop.

Credit Repair and Your Student Loans

If you have student loan problems you should pick up the phone right now (really, right now) and explore the many options that are available to get you back on track. Student loans are unique amongst all forms of debt; they have no statute of limitation for collection. The longer you ignore them the worse it gets. As tough as it sounds, there are many great resolutions available. The Student Loan Ombudsman Office has been set up to help you understand your rights. Call them at (877) 557-2575.

Clean Up Your Reports

Don’t believe everything you read, especially if it is on your credit report. Credit reports are typically loaded with errors, many of which can devastate your credit scores. Order all three of your reports, one from each bureau and plan to spend an hour proof reading each one. Credit repair can be the best time you ever invested. Check every detail including the neutral looking information like credit limits and reporting dates. Once you have identified the errors dispute them with the credit bureaus.

Need Help? Hire a Credit Repair Pro

If you are not comfortable reading your credit reports, or if you don’t have the time, hire a pro. A credit repair professional will insure that the job is done right. They will check statute of limitation dates and reporting period limits, identify compliance issues that may otherwise be hard to spot, write the dispute letters for you, manage re-disputes, and counsel you to insure the optimal outcome. Credit repair is important, take action today.

Copyright © 2008 James W. Kemish. All Content. All Rights Reserved.

Jim Kemish asked:


Cease Communication Letters Cut Two Ways

Bob and Sue were reading about credit repair and the Fair Debt Collection Practices Act on the internet. They came across information about Cease Communication Letters which would force a collector to stop calling. So one day, after getting a call from an aggressive collector, Sue suggested they send a Cease Communication Letter. They sat down at the keyboard and gleefully wrote a note to the collector demanding that he cease communication. Bob even added some impressive language to convey his knowledge of the law. They went to the Post Office, mailed the letter, and went out to celebrate their credit repair victory. And then it all went bad.

The Cease Communication Backlash

Bob and Sue thought they magically made the collector vanish. Unfortunately, the collection was about to return with a vengeance. One evening there was a knock on the door. When Bob answered a man handed him an envelope. Bob had been served. The collector who received the Cease Communication Letter had returned the collection to the original creditor. The collection was well within the statute of limitation for collecting through the courts, and the creditor decided to sue. It was their right. Bob and Sue learned the hard way about sending Cease Communication Letters before the expiration of the Stature of Limitation. Credit repair decisions require care.

Falling for a Collection Trick

One day Bob and Sue got a friendly letter from a collection agency. It was an offer to settle an old debt for half price. Even better, Bob and Sue could make three affordable installment payments. They were determined to make their credit repair program succeed, so they called the collector and started the payment plan. It was only later that they realized the mistake. First of all, the collection was many years past the statute of limitation for collection through the courts. Worse yet, in spite of the fact that this account was showing on their credit report, the original default had occurred more than seven years ago…

Credit Repair and Timing

So what did this all mean? It meant that they did not have to pay a penny. The fact that the collection was beyond the statute of limitation for collecting through the courts meant that the collector had no way to enforce the collection. And the fact that the original default date was over seven years old meant that Bob and Sue could have disputed the presence of the account on their credit report with the credit bureaus and it would have been deleted. Credit repair is all about the timing.

Statute of Limitation Knowledge Pays Off

Sometime later, after Bob and Sue had become aware of their credit repair rights, another collection letter arrived. They were not about to be fooled again. First, Bob checked the statute of limitation and found that the original default happened about ten years previously. He had also learned about his right to validate a debt within thirty days of getting a collection letter. So he sent a letter demanding that the collector furnish proof of their legal right to collect the debt along with a true accounting of the amount claimed. Because he knew that the documentation must be objective he also insisted that the account come from the original creditor. The collector was never heard from again. The collection was never reported on Bob’s credit. Credit repair success is sweet.

Credit Repair and New Accounts

Bob and Sue’s credit repair effort was well underway. Their credit reports were really shaping up. Many derogatory accounts had been deleted. They were happy, at least until their trip to the car dealer. The finance manager ran their credit and informed them that their credit scores were too low. The reports were not bad, but the scores were dismal. After doing a little homework Bob and Sue found out about the importance of building new credit. It is not enough to clean up derogatory information. The FICO credit scoring model needs open and active credit. So they each opened two new secured credit cards. They made their payments on time and kept the balances under 20% of the high credit limit. Within a few months their scores were dramatically higher. Soon they were behind the wheel of their new car.

Budget Some Credit Repair Insurance

Bob and Sue were thrilled; their credit repair effort was successful, but they worried about a setback. They wanted to be ready for anything. So they sat down one Sunday morning and worked up a budget. When they were done they had found a way to set aside ten percent of their monthly income for a savings account. Initially they thought of it as credit repair insurance. Over time they realized it was the best thing they could have done. Their savings insured that they could maintain their perfect credit. But better yet, it gave them real inner peace and satisfaction, a new and fantastic experience.

Copyright © 2007 James W. Kemish. All Content. All Rights Reserved.

Damon DeCrescenzo asked:


 

FICO score is a credit scoring system that was developed in the1950s by Fair Isaac & Co. Today, the three major credit reporting bureaus Experian, Equifax and Trans Union all use FICO scores to evaluate the credit worthiness of almost 90% of the adult Americans. FICO scores can range from 300-850 and these scores are calculated on the basis of scoring models and mathematical calculations that are not revealed to the public. The higher the FICO score, the lower the risk to the creditor and hence if your FICO score is high, you end up with lower interest rates, faster loan approval time, lower insurance premiums and better employment prospects. If your score is low, you may be in need of the services of the best credit repair firm that can help you take repair action via a personalized credit repair program.

A FICO score of a person is determined by studying a person’s credit history. Late payments, charge offs, judgments/liens, bankruptcies, foreclosures, the total amount of credit used and the total credit that is currently available, credit cards issued, employment history, the amount secured as loans, their repayment history are all considered while determining a person’s FICO score. It is a snap shot of the credit worthiness of a person that is used by creditors when they evaluate any credit application. Persons with a FICO score of less than 500 are said to have a bad credit record and this qualifies them to seek the help of one of the firms offering best credit repair services. There are several genuine firms that operate online offering credit repair service for a nominal fee. The legally trained and experienced credit repair specialist will make it easy for those who wish to remove negative or inaccurate information from their credit reports in a hassle free manner.

The three main credit reporting agencies use three distinct types of FICO scores. The FICO score used by Equifax is referred to as BEACON, the one used by Experian is referred to as Experian/Fair Isaac Risk Model and the one used by Trans Union is referred to as FICO Risk Score, Classic. Each of them is compiled taking into account the data currently available at the individual credit reporting agencies. With credit repair support from a team of professionally qualified experts, people will have little difficulty in erasing erroneous reports and inaccurate information while the personalized repair plan of action ensures that they make improvements to their FICO score steadily. You can improve your FICO score and repair your credit report by hiring the best credit repair firm.

Jim Kemish asked:


Your Credit Repair Lifeline

No matter how bad your credit might be there is a quick way to get your credit scores moving in the right direction. The FICO scoring model places considerable weight on your ability to manage your debt; and credit cards offer the perfect way to demonstrate your responsibility and influence your credit scores quickly.

Get Back in the Action Right Now

If the events of life have left you without credit cards, now is the time to get back in the action. It does not matter what your credit report looks like. Forget the past. Credit repair is about the present. Forget your fear of denial. You can do this now. Secured credit cards are the perfect credit repair option.

Secured Cards Done Right

Open two new secured credit cards today. Secured cards require a small savings deposit that will secure a modest line of credit. Once you have your cards it is time to work the system. It’s credit repair magic. Just maintain your balances under 20% of your credit limit. Don’t pay them off, and don’t let them go above 20% of the limit. Do it right and watch your scores improve.

Pay Down Your Balances

If you have plenty of credit, secured cards are not for you. But here are some facts that should aid your credit repair efforts. The FICO credit-scoring model is very sensitive to the relationship between your current balance and your high credit limit. FICO acknowledges six different balance-to-limit ratios: 20%, 40%, 60%, 80%, 100%, and over 100%. The first two are positive, 60% is neutral, and 80% and 100% are increasingly bad. To go over the limit is credit repair suicide.

Up Your Limits

Pay down your credit card balances and your scores will improve on the next reporting cycle. The affect can be dramatic. But there is another way. While you work on paying your balances down you should try this easy credit repair strategy. Call the credit card issuers and ask them to increase your limit. The affect on your credit score will be the same as if you paid your balance down. Can’t hurt to ask!

Give Uncle Bob a Call

Additional card member accounts still work! For those unfamiliar with the concept, here is an overview. Let’s say old uncle Bob has fantastic credit. If he is willing to make you an additional card member on one of his well-managed credit cards you will miraculously inherit the credit history of the card as if it were yours. It’s a real credit repair boost. So if you are on good terms with uncle Bob, give him a call.

A Caution About Additional Card Member Accounts

There is a downside to the additional card member strategy. Fair Isaac and Company, the creators of the FICO scoring model, are well aware of the loophole and have already blocked the benefit in the latest release of the software. The credit bureaus always take time to adopt a new release; you just might have another year to use this credit repair trick. If you take this route, you should also open two new secured cards and start building real credit of your own.

Pay off an Old Judgment

Here is an interesting credit repair trick. Unpaid judgments can report for seven years or the state statute of limitation, which ever is longer. Statutes of limitation on judgments are usually longer than seven years, and they can be re-filed in most states. Paid judgments are a different story altogether. Paid judgments are removed by the credit bureaus seven years from the original filing date. So if you have a judgment that is seven years old, payment will cause it to be removed from your credit report.

Negotiate That Collection Away

If you have a collection account on your credit report chances are that there is a collector that would love to hear from you. Collectors play hard, but they also know that something is better than nothing. And if you hang up without making a deal, they get nothing. You can always try to negotiate with a collector, but there is one circumstance where you are virtually guaranteed to succeed…

Credit Repair and the Statute of Limitation

Collections can only be enforced through the courts for a limited time. Once the statute of limitation expires a collector may talk big, but they have no way to force payment. They can’t get a judgment, and if you send them a cease communication letter they can’t call you again. The collection, on the other hand will linger on your credit report until the seven years are up. Are you past the statute of limitation? Want to get rid of the collection for ten to twenty-five cents on the dollar? Call your collector, and make them an offer. Your credit repair efforts will pay off.

Copyright © 2007 James W. Kemish. All Content. All Rights Reserved.

Chane Steiner asked:


Well, first let’s start with what credit repair is. “Credit repair” is a term most commonly used to describe a systematic process of improving ones credit scores by obtaining copies of the individual’s credit report, reviewing the credit report for errors and misleading information; then disputing the information with the credit bureaus. This is just a basic explanation of the process. While it can be very simple for some, it is much more complex and time consuming for others.

Most consumers with bad credit are searching for free credit repair. Regrettably, there are no services that I know of that will repair your credit for free so, if you are looking for “free credit repair” you will have to do it by yourself. There are also some reputable, inexpensive credit repair services available for consumers who just don’t have time to learn the credit repair process. But, doing it yourself has many advantages and I think that most people who learn about the credit game have better chances of not getting into credit trouble again.

When you are ready to start your free credit repair journey, I suggest starting at a credit repair forum or by reading a credit repair book. A credit repair forum is a discussion group of people teaching and learning credit repair. There’s tons of information online – just be careful – there is lots of misinformation online as well. Remember to always research your questions with different sources.

After spending hours and hours researching credit repair online, I’ve realized that credit repair has got to be one of the most misconstrued topics online. There are way too many people being mislead online. They don’t research the information they find and end up repeating it to others. And yes, some of them are even repeating the information on their websites. They are only trying to help, but instead usually end up really hurting other people financially. Please, please do not be one of those people.

This is why I suggest credit repair forums; usually when someone is wrong, there are plenty of professionals at the forums that will correct that person immediately.

Nikola Govorko asked:


Good credit score is necessary if we want to live normal lives. Lots of people make mistake of not paying enough attention to their credit rating even though without good credit many of the everyday things like renting a car, apartment or having a credit card would be unavailable to us.

Each time you do not pay your creditor on time it will be reported to the credit bureau and your credit score will be adjusted accordingly. And in case that it happens often or even you allow your loans to go default, you are going to find yourself in a situation needing credit repair.

Why will you need credit repair? Well with poor credit score you might forget about getting a credit card or a loan of any kind. Well not probably of any kind, but you will be forced to take a loan with a much higher interest rate and because of that your monthly payments will be even harder to make on time.

So how to begin with repairing your credit? You have a number of options here, you can either try a do it yourself credit repair or you can hire a credit repair company to help you.

Your initial research will lead you to a lot of companies that advertise themselves on the web and in newspaper. Most of them use a very aggressive marketing techniques and offer many promises they can not keep.

Be very careful of this promises because simply put there is no fast credit repair. Even if your credit is damaged only by a few incorrect items in your credit report it will take months before those items are cleared.

Also many of these ads are just scams, with all the identity theft around you must think at least twice before giving your sensitive, private information to a company you have never before heard for.

When it comes to do it your self credit repair you should know that whatever a credit repair company can do for you, you can do yourself. What that means is do not listen if somebody promises you a credit repair in a few weeks, credit bureaus work for themselves and are not associated with credit repair companies in any way.

Nobody can erase bad items from your credit report if those items are correct. In most cases a credit repair company will persuade you to challenge all of the negative items on your report.

Sometimes they might even propose engaging in illegal activities, do not take this route, even if it does not get you in a trouble with a law any credit improvement will be only temporary.

Much better way for this is do it yourself credit repair, go online and search for information. The best places for information are well trusted, established credit repair companies and law offices and naturally the government sites.

Step 1 - Get the copy of your credit report from a reputable provider.

Step 2 - Examine it thoroughly for any mistakes, if you find any try to dispute them. Be sure to dispute ONLY the incorrect items.

Step 3 - If you can not find any errors you are in deep credit trouble and will have to go through the complete repair process like debt consolidation and maybe even bankruptcy.

One simple step is to apply for a secure credit card. Just be sure to pay the bills for it regularly and by doing this you will start a slow but steady process of repairing your credit score.

This process will require a large amount of patience and determination from you. But by improving financial responsibility you are going to be in a position to payback your debts on time. By doing so you are going to prove to them that you can be trusted with a credit.

Once again keep in mind that credit repair will take both time and patience, but by undergoing do it yourself credit repair you will profit in the long run.

Stephen Ashton asked:


There are some benefits to using a credit repair company and there are some real disadvantages too. The first thing to think about is why you want to use a credit repair service? Is it because you have bad credit that you want to fix but simply don’t know how? If this is true then try reading a bit of information about how to fix bad credit to see if you think this is something you can do.

If you don’t have time to sit down, write letters and go through the credit reports to see what you can dispute, then a credit repair company is probably for you. A credit repair company will take care of all the tedious tasks that are involved in disputing bad credit marks on your credit report. You should however make sure that you use a company that knows the law so that they can properly understand your needs.

To fix bad credit yourself, all you have to do is request your credit report, read what’s on it when it arrives, and write a letter to dispute the bad credit that you believe is unfair or untrue. At this point you can also write to your creditors to try and negotiate a reasonable pay off plan in return for removing the debt from your credit history. When you pay a credit repair service, this is practically all they do. Firstly they request your credit report or reports, if they are requesting more than one report from the three big credit bureaus.

When not to use a credit repair company

A good credit repair service will be upfront and honest about what they can and can’t do. They will be clear about how much they charge and clear about what you will get from the service.

A bad credit repair service will probably do some the following:

* Try to confuse you with financial jargon so you don’t understand what they are doing

* Don’t tell you what your legal rights are

* Tell you not to contact one of the credit bureaus directly yourself

* Suggest that you try to invent a new credit identity and then apply for a new credit report. This can be done by applying for an Employer Identification Number (EIN) to use instead of your Social Security number.

* Tell you to try and remove all your bad credit regardless of whether it is true or not. If you do this and are found to be committing fraud, you may be held responsible yourself.

So if you are thinking about using a credit repair company you should remember three things:

* Only inaccurate information on your credit report can be removed. So if a credit repair service says they can repair you credit ‘guaranteed’, this simply isn’t true. Credit repair companies have actually been successfully sued for claiming they can remove bad credit when in fact they can’t.

* Credit repair companies can charge high prices for doing something that is pretty routine, so don’t pay big prices because it probably isn’t worth it.

* When a credit repair organization requests your credit report, the credit companies won’t accept any disputes unless it is accompanied by a notarized power of attorney that authorizes a licensed attorney or if the power of attorney is unlimited and irrevocable. Alternatively you or a family member can do it on your behalf.

Using a credit repair service can greatly help you to start to repair your credit score quickly as they can quickly identify where the problems lie in your credit report and highlight any errors that may have been made.

Jim Kemish asked:


Credit Repair and your Credit Reports

Credit repair is all about knowledge, and your credit reports are the key. There are three credit bureaus, Experian, Equifax, and TransUnion, and they each provide their reports in a different format. In addition, there are many tri-merged reports available which blend the information from all three credit bureaus in a different format. The tri-merged reports are designed to be user friendly and may be your best bet for credit repair.

The Real Score

There is another credit repair resource that gets less notice, but is arguably the most important. This resource is MyFico.com the website for Fair Isaac Corporation the creator and owner of the Fico credit score. The credit bureaus sell their own scores, marketing them with no visible disclosure that they are not the scores that lenders use. These bogus scores are deceptive and bear little resemblance to the genuine scores available at MyFico.com.

The Right Credit Repair Set Up

So, if you want to benchmark your scores, get the scores that count. Ah, but there is a twist. Although you should get your scores from Fair Isaac, their credit reports are the least useful for credit repair. So, I’m sorry to say, but if you really want to do it right buy your scores from Fair Isaac and a good tri-merged report for credit repair information purposes.

Proof Reading for Credit Repair

Once you have your credit reports it’s time to put on your reading glasses and get down to the business of squinting through all of the data that the credit bureaus attribute, often wrongly, to your life. I suggest that you clear your desk or kitchen table, get a pad of paper and a highlighter and make a note of everything you see that is even vaguely questionable. Here are some of the most significant things to look for.

Pushing it to the Limit

Credit card issuers often under report your high credit limits. This seems innocent enough; most people don’t think to look for this innocuous little tidbit, but it has the potential to knock 100 points off your score. Gasp. Check it out. The FICO scoring model places great weight on the relationship between your balance and your limit. If the credit card issuer erroneously underreports your limit your score may be artificially depressed.

Gone but not Gone

Another problem often overlooked are accounts that have been closed and paid but continue to report as open with balances. This is very common and can overstate your current debt load. It is not unusual to spot two or three of these accounts, ranging from mortgages to little store cards. You can easily eliminate these obsolete accounts for a nice little credit repair boost.

Ditching the Dupes

Duplicate accounts are as common as dandelions in the spring, and like old closed accounts that report as open, these bothersome little pests can put a dent in your scores. These accounts appear for a variety of reasons usually stemming from creditors reporting methods and occasional account number changes. Look carefully for these redundant accounts and remove them.

Collections are Iffy

Collections are the most questionable accounts on your credit report. Collectors buy, sell, and even trade debt regularly. Collectors that do not own a collection account, per FTC Fair Credit Reporting Act Staff Opinion Letters, must cease reporting that account. Unfortunately there are no incentives for them to do so, and hence these old erroneous collections can linger forever. Challenge them as part of your credit repair effort.

The Student Loan Solution

If you have student loans that have slipped into default it is time to make peace with your lender. Student loans are different from every other debt. There is no statute of limitation for collection of student loans and hence there is no hope of waiting until they go away. In fact, the situation will get worse with every day you delay. The good news is that you have awesome legal rights when it comes to your student loans including easy rehabilitation and consolidation programs. Call the Student Loan Ombudsman at (877) 557-2575. They are on your side.

Credit Repair Lifeline

Is this too much to handle? If you are too busy to manage your own credit repair project, hire a credit repair professional. This is far too important to ignore. You can’t afford to delay your credit repair project. Every single point on your credit score has an impact on your life, so take care of your credit and your credit will take care of you. Good luck!

Copyright © 2008 James W. Kemish. All Content. All Rights Reserved.