Archives for "Inspiration"

Who Needs Credit Repair?

The purpose of credit repair is to improve your credit. The most significant transformations will occur for those with credit issues, but if you have decent credit you may still get valuable and substantive results. Your credit scores will dictate the interest rate you receive on every dollar you borrow, and even an incremental improvement in your loan rates can add up to significant savings over time. Potential financial benefits are available to most everyone.

What Credit Repair Does

Credit repair, at its best, will address everything that contributes to your credit score. The process will include sending dispute letters to the credit bureaus to clear up erroneous reporting. Deficiencies in your credit profile should be addressed as well; if you do not have the accounts you need to develop higher scores a good credit repair service should provide you with the guidance and assistance to rebuild your credit to insure the best outcome. And finally, you may benefit from appropriate score optimization tips. There are many cases where careful changes to existing accounts can produce major score improvement.

What Credit Repair Does Not Do

Credit repair is not about eliminating real and accurate accounts from your credit report. If you are in debt and looking for a way to resolve your outstanding commitments you may benefit from consumer credit counseling. You may even want to consult a bankruptcy attorney. Credit repair is intended to skillfully identify and correct reporting errors. These may include simple issues like accounts that are not yours, to more tricky errors that may seem correct but should not be there as a matter of law. These later issues generally require training to spot and may call for the services of a professional.

Do it Yourself?

Managing the restoration of your own credit can be rewarding. But be careful not to miss any opportunities. Before starting the credit repair process do your homework. You must have an understanding of the Fair Credit Reporting Act as well as knowledge of the way the Fair Isaac FICO score works. And if you have any collections on your credit report you will need to understand the Fair Debt Collection Practices Act and your state statutes of limitation.

Subtle Factors Count

But there is still more you need for success. You must have an understanding of the way the credit bureaus operate if you want your dispute letters to get processed to your satisfaction. You may want to spend some time browsing online credit forums or pick up a book on the subject before you get started. If all of this seems intimidating, you should consider hiring a good credit repair service.

Choosing a Professional Service

For most people, the decision to use a professional credit repair service is the wise option. If you take this path you will not have to invest the time to master all of the skills you need to succeed. You will be comfortable knowing that all the angles are being addressed adequately. One of the more time consuming and organizationally intensive tasks in the process is managing dispute letters. Letters may need to be resent. Responses must be rebutted to when the results are not to your satisfaction. For what should be a moderate monthly fee you can turn all of the work over to an expert and insure the highest likelihood of success. Good luck!

Copyright © 2010 Sky Blue Credit Repair. All Content. All Rights Reserved.

Credit is Resilient

You can clean up your credit reports, increase your credit scores, and reap all of the benefits that come from great credit. For most people good credit translates into self-confidence, inner peace, and the financial rewards of lower interest rates and better loan terms. Credit repair can deliver all of these things, but you need to take the initiative. Credit is resilient, and there is no derogatory credit event that cannot be offset with an intelligent application of credit repair principles. Regardless of your current situation, if you take action now you will soon be rewarded with measurable improvements. Stay the course, and before you know it you will have credit that you can be proud of and which will serve your financial life well.

The Value of Credit Repair Services

The first step in the credit repair process is a detailed examination of your credit reports. There is more involved than simply spotting items that do not belong to you. Many of the errors on credit reports may look familiar but should not report as a matter of law. These legal compliance issues require training to identify. Doing the job on your own can be rewarding, but unless you have the time to learn the applicable laws you should consider hiring a reputable credit repair service. A good service will quickly spot the issues that should be challenged as well as providing a plan of action for rebuilding and optimizing your scores. Take your time to find a company that you are comfortable with. Do not be afraid to pick up the phone and interview a couple of services.

The Importance of Rebuilding

Tough times may have left you financially traumatized and either reluctant to open new accounts or fearful of being denied. And yet, there is nothing more critical to credit repair success than rebuilding your credit. Many people are under the impression that they should wait until their credit has recovered before applying for new accounts. Do not hesitate. Now is the time to rebuild. The current condition of your credit is not an obstacle. Secured credit cards are the perfect solution. Your credit will recover most quickly if you get two cards. A comprehensive credit repair service should be able to recommend good low cost cards with no income or credit requirements that will report to all three bureaus.

Debt Management for Credit Repair

Now that you are getting back on your feet, credit-wise, it is essential that you manage your finances extremely carefully. Budget yourself prudently, do not let your obligations exceed your ability to repay, and establish a solid plan for paying your bills in a timely manner. It is crucial for your credit repair program that you do not fall behind on your payments. It is equally critical that you manage your new secured credit cards in a special way, a way that will optimize your scores. Use your cards regularly, but do not use more than 20 percent of the cards limit. And when you make your payment each month, leave a small balance, even ten dollars, on the card. This requires a little attention, but it will be worth it.

The Payoff of Financial Prudence

It is a wonderful feeling to watch your credit reports improve and your scores increase. And the new confidence and self-esteem you will experience will carry into many parts of your life and relationships. But there are fantastic financial benefits to credit repair as well. As your credit scores increase you will be eligible for low rate, favorable term financing. This does not mean that you should go into debt, but when financing is needed for something like an automobile or a home purchase the difference can add up to hundreds of dollars each month, and thousands each year. The lower payments that you will qualify for can easily mean budgetary comfort. Soon you will discover that your credit repair success has built on itself and transformed your life.

Copyright © 2009 Sky Blue Credit Repair. All Content. All Rights Reserved.

You Can Do It!

Credit repair works. Great credit can be yours, along with the wonderful benefits it offers. It just takes a little planning. Take the first step today and experience the joy that comes from regaining control over your financial life. Here are our favorite ten steps to credit repair success!

1. Proofread Your Credit Reports

Credit repair is necessary for millions of Americans. The credit reporting system involves the credit bureaus, creditors, collectors, court houses, and all the software that ties the system together. Errors happen. Credit repair is the cure. You cannot assume that mistakes will correct themselves. Proofread your reports and identify every questionable entry.

2. Dispute, Dispute, Dispute

The Fair Credit Reporting Act requires the credit bureaus to process consumer disputes about credit report accuracy. Put your legal rights to work and dispute every questionable item you find. If you encounter resistance, if the credit bureaus do not respond favorably to your credit repair effort, do not give up. Write back and demand that they have the creditor research the issue properly. Patience pays.

3. Challenge Collectors

If you receive a collection letter, open it right away. You will be shocked to hear that half of all of active collections are for accounts that were previously paid, belong to another person, or are, for some other reason, not valid. Under the Fair Debt Collections Practices Act you have the right to validate a debt within 30 days of getting a collection letter. This is a powerful credit repair tool. Ask for proof they own the debt and documentation of the balance claimed.

4. Learn About Statutes of Limitation

Collectors have a limited time in which they can enforce collection through the court system. When this time limit, known as the statute of limitation (SOL), expires, they can try to collect, but they no longer have leverage. The SOL is almost always far less than the reporting period limit. Knowledge of the SOL is critical to your credit repair effort. Research the SOL for every debt. If the SOL has expired the debt should be very negotiable.

5. Manage Your Revolving Accounts

Your credit card balances can ruin your credit scores, even if you make all of your payments on time. Proper management of your revolving accounts is important to your credit repair success, and can swing your credit scores by over 100 points. For the best results make sure that your credit card balances are as low as possible. The FICO scoring model will give you the biggest score boost if you use less than 20 percent of the available limit. Do not neglect this essential tip.

6. Avoid Consumer Debt

While your credit card balances can make or break your credit repair effort, the type of debt you utilize is equally important. Do not count on store cards or consumer debt, like furniture store credit lines, to contribute to your good credit. In fact, the FICO scoring model has a built in partiality against consumer debt. If you want to build your credit, stick with mainstream cards like MasterCard and Visa.

7. Monitor Your Credit

An online credit monitoring service can be a valuable credit repair tool. If you join a service like the TrueCredit 3-Bureau Credit Monitoring Service you will be notified of all material changes that occur on your credit reports instantly via email, including inquiries, new accounts, and the appearance of derogatory information. Once you are alerted to the appearance of something you disagree with you can react in a timely manner.

8. Refinance Costly Loans

Once your credit repair program is underway, your credit report is tidy, and your scores are climbing, it is time to cash in on your newly improved credit. Examine all of your debt from your credit cards to your mortgage. All high rate loans are candidates for refinancing. You can start by contacting your current lenders to see if they can offer you more favorable terms. If not, you can shop for the best rates elsewhere.

9. Save Your Money

Your newly improved credit, and the lower payments that lenders have offered you, should allow you to start a savings plan. A savings plan is the perfect complement to your credit repair program. Money in the bank provides a cushion when unexpected expenses arise. You have put effort into restoring your credit; do not let an unexpected expense cause you to fall behind on your bills. Savings is smart.

10. Learn to Invest

Make financial stability and personal wealth the capstone of your credit repair effort. Personal wealth will insulate you against events that once would have caused stress and damage to your credit record. Put the past behind you and realize your true potential. As your saving account grows, explore your investment options. Read and study. Learn everything you can about investment and personal financial management. Your time has come!

Copyright © 2009 Sky Blue Credit Repair. All Content. All Rights Reserved.

Credit Repair is Not Hard

Credit repair can be shockingly effective. And it is not difficult. In fact the biggest barrier people face is not in the technical detail of credit repair, it is in their attitude. A small attitude adjustment can make the difference between mediocre results and a life changing outcome. You must approach your credit repair project with an attitude that combines a skeptical view of the accuracy of credit reporting with faith in your own ability to prevail against the corporate machinery of the credit bureaus.

The Shocking Truth

More than three quarters of all credit reports contain errors. This may not make much of an impression, but combined with the following fact you may start to perceive the importance of credit repair in a new light. Errors are not only tolerated by regulators, they are overtly accepted. A close reading of the Fair Credit Reporting Act will reveal that Congress values the viability and the ongoing profitability of the credit bureaus over the absolute accuracy of the reporting system.

The Scope of the Problem

This means that the credit bureaus will only go so far in their quest to eliminate the errors that appear on the credit reports of over one hundred and fifty million Americans. In other words, you must look out for yourself. Credit repair is the answer. Without active intervention on your part the mistakes on your reports are most likely to linger for years, and depending on the severity of the error, this may cost you both money and opportunity.

The Necessity for Credit Repair

Once your attitude about the power, and even necessity, of credit repair in your own life is aligned with reality it is time to confront your credit reports. Let your new perspective light your way. As you examine your reports you should expect to find mistakes. Give yourself the benefit of the doubt. If something does not ring true you should make plans to dispute it. The importance of this cannot be overstated. Every error may be causing you harm.

It is Your Money!

Do not overlook anything, regardless of size or age. Credit repair should be employed liberally. Most lenders utilize some form of score based pricing when determining what interest rate you will pay on any loan you apply for. Even a small difference in your score can make a difference in the cost of the money you borrow. To ignore even a small innocuous looking item today may translate onto an increase in the monthly payments you will make tomorrow. A little attention to detail in your credit repair effort will pay dividends for years to come.

Success is Yours

Lastly, it is essential that you embark on your credit repair project with self-confidence. You can do it! The importance of a can-do attitude will become clear as the process continues. You will find that the credit bureaus are stubborn and cantankerous in their handling of your disputes. You cannot let this stop you. Be resolute in your determination and you will prevail. Expect resistance and do not take it personally. The credit bureaus do not get paid to read your credit repair letters, much less to act on them. But stick with it and you will find that you have more control over your credit life than you ever thought possible.

Copyright © 2009 Sky Blue Credit Repair. All Content. All Rights Reserved.

The Full Potential of Credit Repair

Credit repair can eliminate many of the bothersome errors on your credit report. This is an exciting and wonderful thing, but it is only half the benefit that a properly implemented strategy is capable of delivering, and to neglect the true potential of credit repair is to sell yourself short. Go the extra mile and you will see your scores reach unexpected heights and your credit report become so attractive to lenders that you will be able to secure the best, low cost financing available. Your credit is far too important to settle for anything less than the best.

The Power of New Credit

Everyone loves to watch negative items get deleted from their credit reports. It is liberating and exciting, but by itself it may not do much to raise your credit scores. Your credit scores do not have natural resilience. In other words, the absence of derogatory information on your report may eliminate the dead weight that was holding your scores down, but without positive credit to create loft, they will remain dormant like a deflated balloon awaiting inflation. You must have positive open accounts to provide this loft. Without positive credit your credit repair endeavor, and scores, are sure to disappoint.

The Right Type of Credit

If you do not have open accounts that are reporting in a positive manner you should remedy that state of affairs immediately. Building new credit is essential to your credit repair success, but not all forms of credit will benefit your scores, and some will be downright harmful. For the right outcome, stick with MasterCard and Visa. American Express and Discover are also fine, but harder to get and less widely accepted, so choose wisely. If you cannot get approved for standard cards, you should apply for secured cards. They are inexpensive, every bit as valuable and you will not get denied. Avoid store cards and consumer debt, like furniture store loans catalog credit lines. The FICO scoring model carries a bias against this type of debt and your scores will suffer.

The Importance of Balance Management

For the right credit repair results you must keep a close eye on your revolving balances. This cannot be stressed enough. Your scores will swing wildly based on your balances. Many people make the mistake of getting a couple of new secured credit cards and running them up to their limit. The intention in getting the card was right, but letting the balances run up can cost over 100 points. This is an easy error to make, especially if the limits on the secured cards are low. Credit repair requires diligence. Watch those balances!

Patience and Victory

Once you start your credit repair process you must be patient. The credit bureaus are required to process your disputes, but they do not do so willingly. The systems they have set up to manage the voluminous number of dispute letters they receive are designed to move the letters through the system with little emphasis on accuracy. Do not get flustered if your initial complaint gets ignored or denied. Remain calm and keep sending your request until you are satisfied. Statistically, the odds are that they will eventually process your credit repair request properly.

The Strength of Savings

In our experience those that start a credit repair program simultaneously with a small savings plan are most like to succeed. Unexpected events will arise. And with these events often come expenses. If your budget is too tight you will find that these occurrences stress your ability to make your payments on time, and suddenly you will find another new late payment on your credit report. Do not put your credit at risk. Find a way to start a savings plan. Budget for it. It will provide a buffer in hard times and insure that your credit repair results are safe.

Credit Repair Resources

Confused or overwhelmed by the prospects of investing the time needed to launch your credit repair effort properly? Do not be discouraged and do not give up. Nothing is more important. If you cannot handle it on your own, find a reputable credit repair service to take up the cause on your behalf. Do a little homework, check out the options, interview your top choices and make your decision. A professional credit repair company will insure that the job is done right. You will succeed!

Copyright © 2009 Sky Blue Credit Repair. All Content. All Rights Reserved.