Archives for "Quick Fixes"
Super Effective Credit Report Repair Tips
Tricks of the Trade
Credit report repair, done right, can do wonders for the appearance of your credit report, and your scores too! Here are a few awesome credit repair tips that will really make your scores move fast. Put them to work individually, or all at once, depending on your own needs, and watch the magic happen.
Open Accounts Right Now
The FICO scoring model will give you bonus points for opening new accounts after a period of bad credit. It is all in the timing. Those old cards that survived the tough times are still worth something, but when it comes to credit repair FICO wants you to prove that you still have what it takes to get back in the swing of borrowing money. If your credit is crummy, secured credit cards are ideal. Small is good! Open now, pay on time, keep your balances low, and your scores may rise over 100 points in the next six months.
The Balance-Limit Connection
This credit report repair tip is just as urgent for those opening new accounts today as it is for those managing already well seasoned revolving accounts. Holy cow! A little change in your balances can send your credit scores flying or diving. Have you maxed out a card lately and then checked out your scores? This is a fairly recent FICO tweak which can work for or against you. Try to use less than 20 percent of your limit for the best result.
Store Cards Do Not Cut It
While you are working on your credit report repair project, do not apply for any store cards. And if you already have some, start chipping away at the balances until they are zeroed out, and leave them there. Store cards should only be used if there is some great financial incentive. Use them, save a buck, and they pay them off. There are a few reasons. The biggie is that FICO just does not like them. They will yield the smallest credit repair benefit when you manage them well, but they will kill you if you do not.
Send Dispute Letters
Review your credit reports. Grab a highlighter and mark up everything that looks funny. Send dispute letters to the credit bureaus. And if you do not like the results, dispute again. If you want the job done like a pro, you can hire a pro. Credit repair services are a great value and will manage the whole dispute routine for you until the job is done. They may even spot a few choice ways to get your scores to pop. It is worth it.
Got a Few Bucks?
If you have any collections, now is the time to try to negotiate a deal. Here we are in 2010, and collectors are hungry. Plan your call in advance. Have the money to send right on the spot if you strike a good deal, and let them know you can. It is a great credit repair tip. You may even be able to get them to knock the collection off your report. The last Friday of the month can be a great time to try this. Good luck!
Copyright © 2010 Sky Blue Credit Repair. All Content. All Rights Reserved.
Easy Credit Repair Clean Up Candidates
Think Twice
Credit repair is not about getting rid of genuine derogatory information on your reports, but before you decide what is genuine and what is not, you should think twice. There may be some issues you have to live with until the reporting period, usually seven years, has passed, but you may find that some of the items which look accurate have no business being on your report.
Accept Nothing Blindly
Many people make the mistake of accepting the presence of negative information on their reports simply because it looks familiar. In the present credit environment, where every single point in your credit score translates into money in your pocket, you cannot afford to accept anything without putting it under the microscope of credit repair.
Common Culprits
Commonly neglected derogatory information most often prone to reporting errors includes: overstated revolving balances, closed accounts reported as open, duplicate accounts, and collections, once accurate, but no longer allowed to report. All of these are prime and often easy credit repair candidates. All of these can be removed from your reports.
Overstated Balances
Overstated revolving accounts are often neglected in the credit repair process as the account may in every other way look fine. The single erroneous balance figure is easily overlooked in a cursory examination, and yet, this single innocuous error can knock the wind out of your credit score. High revolving balances hurt. Overstated balanced should be corrected.
Closed or Open
Closed accounts which continue to report as open can likewise be eliminated. You must examine your reports very carefully as you pursue your credit repair project. Creditors often continue to show accounts in an open status, often with balances, for years after they have been closed!
Mysterious Duplicates
Duplicate accounts, like the above two cases, may not be spotted, especially by those scouring for derogatory issues. But like overstated balances, these accounts can overstate your obligations and lower your scores. Put your credit repair knowledge to work and erase these extraneous accounts.
Collectors Out of Compliance
The last of these sneaky candidates for credit repair is the most insidious, erroneous collection accounts. Spotting these little devils can be difficult unless you know exactly what to look for. By law, collectors are supposed to cease the reporting of a debt at the time that they no longer own it. Many collectors will sell accounts if they cannot collect in the first six months. This should trigger an end to their reporting, but do not hold your breath.
Spotting the Offenders
One way to spot these incorrect lingering collection accounts is easy. If more than one collector is reporting a single debt, the oldest one should be disputed and removed with credit repair. This does not mean that singular occurrences are correct! The most recent collector may have sold the account too. You may opt to challenge these collections as well, but please do your homework first.
Research Comes First
Before including any questionable collection in your credit repair effort you should do a bit of homework. Try to recall everything you can about the original event. If you can remember the original date of default you can calculate the statute of limitation (SOL). If the debt is beyond the SOL you can dispute without fear of the collector prevailing in a lawsuit. Credit repair works, but carefully!
Copyright © 2010 Sky Blue Credit Repair. All Content. All Rights Reserved.
Top Ten Credit Repair Tips
Starting Your Credit Repair Project
Credit Repair is not hard. Take the time to plan your effort and the results will be fantastic. Here is a list of our favorite credit repair tips. Try them together, or pick the ones that look good to you. Good luck, you are on your way!
Reduce Your Balances
The balances on your credit cards can cause a swing of 150 points. If you are utilizing over 60 percent of the limit on a card you are losing points; if you approach the limit your credit scores will plummet. If you really want to boost your scores reduce your balances to below 20 percent of the limit; i.e. if you have a $1,000 limit get the balance under $200 and watch your scores take off.
Increase Your Card Limits
There are two sides to the balance-to-limit ratio. If you don’t have the wherewithal to get your balances under 20 percent of the limit, try to have the limit increased; the result will be the same. The credit markets are pretty tight these days, but it’s worth a phone call to the credit card company. Nothing ventured, nothing gained.
Open Secured Cards to Rebuild Credit
Secured credit cards are one of the best credit repair tools available. If your credit is poor and you cannot get approved for a regular credit card, apply for a secured card. Keep the balance-to-limit ratio in mind and maintain your balances under 20 percent of the limit for the best credit repair results. This is especially important with new cards which are weighed extra heavily by the credit scoring model.
Get a Couple of Authorized User Accounts
For a quick credit repair boost call a family member and have them add you to one of their credit cards as an authorized user. Fair Isaac Corp recently modified their software to block the benefit of brokered authorized user accounts, so don’t bother trying to purchase these accounts online, but legitimate family member authorized user accounts will continue to provide a major credit repair benefit.
Rehabilitate Student Loans
If you are in default of a student loan now is the time to make it right. There is no cause for fear, student loan lenders are required to provide affordable payment options to accommodate your needs. Before you call your lender call the Student Loan Ombudsman Office at (877) 557-2575, they are on your side and will explain your rights. Rehabilitation can even purge the old default status from your account; a nice credit repair bonus.
Validate Collection Letters
If you get a collection letter in the mail don’t throw it away; you will be wasting a great credit repair opportunity. Under the Fair Debt Collection Practices Act you have only 30 days to force the collector to validate the debt. If they cannot provide proof they have the legal right to collect along with an objective accounting from the original creditor they must cease all collection efforts and not report to the credit bureaus.
Give Yourself the Benefit of the Doubt
When it comes to credit repair give yourself the benefit of the doubt. Examine your credit reports carefully, but don’t assume the derogatory information is accurate just because it is being reported. If there is a shadow of a doubt dispute it. Many independent studies have verified that credit reports are likely to contain multiple errors. Put your credit repair rights to work and clean up your reports.
Challenge Collections
Among the worst credit report offenders are collectors. Collectors regularly buy and sell collection accounts. Collectors who no longer own a debt are supposed to withdraw the account from your credit report entirely. Unfortunately, there is no incentive for them to comply with the law, so they almost always let the expired accounts linger. Dispute expired collections and they will be removed from your report.
Underreported Limits
Examine your reports for underreported credit card limits. Recall that your credit score is affected by your balance-to-limit ratios. It is not uncommon for credit cards companies to report your limit as less than it is, or even as equal to your current balance. Just make a copy of a recent credit card statement and attach it to your dispute letter for quick credit repair results.
Call a Credit Repair Professional
If you are too busy to manage the credit repair task yourself, call a professional. A credit repair professional will examine your credit reports and insure that every possible strategy is utilized to correct errors and improve your scores. Either way, it’s your credit; make sure it is as good as it can be.
Copyright © 2008 Sky Blue Credit Repair. All Content. All Rights Reserved.
Credit Repair Quick Start Guide
Credit Repair and Your Payments
You have decided to repair your credit. You need to make sure that all of your payments are made on time from now on. Make sure your finances are organized and that there is enough room in your budget for the occasional unexpected expense. Credit repair requires effort and you don’t want to slip backwards. Credit repair can transform your life; make the right effort and you will be richly rewarded.
Review Your Credit Reports
Get copies of all three of your credit reports. You can get them online at AnnualCreditReport.com for free one time each 12 months. This website is government mandated and is the only place where you can get your reports for free. All of the other websites that advertise free credit reports require you to join a monthly service; there is value in these monthly services, but make sure you know what you are buying. Once you have your reports it’s time to start your credit repair project.
Correct Your Account Limits
Credit repair can be daunting. I suggest you take one manageable step at a time. Begin by proofreading the credit limits on your revolving accounts. A significant part of your credit scores are based on the ratio of your current revolving balances to your credit limits. Many credit card issuers under-report these limits and inadvertently harm your credit scores. Put your credit repair plan into action. If you discover any under-reported limits communicate the issue to the creditor and provide a copy of a credit card statement to the credit bureaus.
Eliminate Extraneous Accounts
Examine your reports for extraneous accounts. These can include closed and paid accounts that are reporting as open with balances. You should also look for duplicate accounts. Take your time. Credit repair requires a little patience. A duplicate account with no derogatory information may blend into the background, but can have a negative impact on your credit scores. Duplicate accounts are common occurrences and can be easily rectified with a bit of credit repair. The credit bureaus rather than the creditors most often cause these errors, so a letter to the offending bureau ought to do the trick.
Challenge Collections
The collection industry may be the largest single contributor to credit reporting errors and well worth your credit repair attention. The FTC has made it clear in their elucidation of the Fair Credit Reporting Act that when collectors sell debt to another collector or returns it to the original creditor they should withdraw their reporting of the item. Unfortunately, there is no incentive for compliance and so these erroneous collection accounts continue to report, often for years. Generally speaking, you would be well advised to challenge collections as part of your credit repair project; an easy credit repair task.
Use Debt Validation
If you get a collection letter in the mail open it right away and prepare to respond. For a thirty-day period following receipt of a collection letter you are in the legal drivers seat. Don’t miss this credit repair opportunity. If a stranger knocked on your door and asked for money would you hand it over? I hope not. Don’t give a penny to a collector without validating the debt. You have the right to demand proof from a collector that they have the legal right to collect, and an objective accounting of the amount claimed due; do this within thirty days, and do it in writing.
Know Your Statutes of Limitation
Debts are not collectible forever. If you are embarking on a credit repair effort this is one of the truly important facts to know. Statues of limitation vary based on state and debt type. This information can easily be found on the Internet. Once the statute of limitation has expired a collector can no longer sue you for the debt, and hence cannot get a judgment. Read this credit repair fact carefully. If a debt is beyond the statute of limitation a collector has absolutely no way to enforce collection. This gives you two wonderful credit repair options. You can send them a cease communication letter and you will never hear from them again, or you can contact them to negotiate payment. Once they know you understand your rights they should be happy to settle.
Save for the Future
With all of the effort you are putting into your credit repair project you will want to insure that nothing comes along to send you back to square one. The best credit repair insurance in the world is a healthy saving account. If unexpected expenses arise, and they will, you will not bust your budget if you have some money set aside. Saving also offers some amazing fringe benefits that transcend the obvious, like self-confidence and peace of mind, which can’t be measured, but are definitely priceless. Good luck!
Copyright © 2008 James W. Kemish. All Content. All Rights Reserved.
Credit Repair Quick and Easy Tune Up
Your Credit Score Matters
One little number determines the interest rate you pay on every loan you take. And your interest rate determines your payment, thereby impacting your budget and the quality of your life. This is important. Every point of your credit score matters. So pay attention. Credit repair can pay dividends that last for years to come.
Don’t be Silly
Too many people ignore their credit. This is a big mistake. Small precautionary measures can make major differences in your credit scores, just as silly oversights can plunge your scores into negative territory just when you need them the most. It does not matter if your credit is good or bad. Little changes in your behavior prior to applying for a loan can make life-changing differences in your life for many years to come. It makes perfect sense. A ounce of credit repair prevention is worth a pound of cure.
Look at your Credit Reports
Knowledge is power. And in the case of credit repair, knowledge is money. Before you apply for a loan take the time to see what a lender will see. The credit reporting system is seriously deficient. Quality control is sacrificed to cost saving at the credit bureaus daily. Congress recognized this unfortunate fact and mandated free access to your three credit reports once every twelve months so that you could catch and correct inevitable errors. Get it? You must be vigilant.
How to Get Your Credit Scores
Lenders base their lending decisions on credit scores. But not just any scores. The credit bureaus sell a special credit score to lenders called the FICO score. The credit bureaus however, do not sell these important scores to consumers. If you purchase credit scores from the credit bureaus you will be buying their own proprietary scores that have no resemblance to FICO scores. Ouch! But have no fear. Go to the website of Fair Isaac Corporation, the inventor of the FICO score model where you can purchase all three FICO scores for fifty dollars total. Not cheap, but it is an investment in your own life.
The Credit Repair Deep Freeze
If you are getting a loan in the near future now is the time to limit your credit activity. New accounts will hurt your scores, at least temporarily, and inquiries won’t help either. Try to remain alert. Many people make the error of buying new furniture before closing on their new mortgage, and financing the whole package. This could cost you fifty points on your score. And watch out for store card point-of-purchase offers. When a clerk asks if you want to save money by opening a new account, just say no. It’s great to save money, but if you need your credit scores it’s best to lay low for the moment.
Get Your Balances Under Control Now
Credit cards have a major impact on your credit scores. All of your accounts matter, but those little pieces of plastic in your wallet can swing your credit score dramatically in either direction, so take heed. If you make the mistake of applying for a loan at the unfortunate moment that a credit card is maxed out your scores may suffer a penalty of over one hundred points. That’s right! So now is the time to get those balances down. The optimal balance for credit repair purposes is under 20% of the limit.
Credit Repair and Rapid Rescore
If you have made mortgage application and been told that your scores are too low, there is still hope. Mortgage brokers have access to an amazing credit repair tool called Rapid Rescore. You cannot do this yourself. This process was developed exclusively for mortgage originators to allow potential homebuyers a chance to prop up their scores at the critical moment. To the best of my knowledge no other industry offers this awesome opportunity. Here’s how it works.
Rapid Rescore Credit Repair Magic
If, after making mortgage application, you realize that you should have paid down your credit card balances, there is still time. Just contact your credit card company and tell them that you want to pay down your balance in the quickest possible way. They will instruct you accordingly. Once the payment has been processed, contact the credit card company and ask for a balance confirmation letter. Give this balance letter to your mortgage broker to do a Rapid Rescore. Within about three days your scores will be recalculated based on the new lower balances. Credit repair magic!
Calling a Credit Repair Professional
If in doubt, call a credit repair expert. There are a wide variety of ways to bolster your credit scores. Hiring a credit repair professional will insure that every possible option is considered and pursued in a proper and effective manner. When every point counts make sure you take the right steps and you will come out ahead!
Copyright © 2008 Sky Blue Credit Repair. All Content. All Rights Reserved.