Credit Repair Blog - The Credit Repair Resource

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 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.

Credit Repair To-Dos

Credit repair is simple. It may require some effort, but if you take these basic steps you will witness a dramatic transformation in your credit reports and scores. Here is the essential credit repair to-do list that will help you reach your credit goals before you know it.

Do Open New Accounts

Now is the time to get back on your feet. Do not wait until your credit repair project is successful before opening new accounts. You should rebuild now. In fact, your credit scores will go nowhere without open and active accounts. Do not worry about getting denied; secured cards are an easy and guaranteed way to rebuild today.

Do Avoid Store Accounts

Not all forms of credit provide an equal credit repair advantage. Consumer debt, such as store cards, will not give you the same benefit as a MasterCard or Visa, even if you manage them perfectly. But a late payment will cause your score to fall more dramatically than a derogatory event on your MasterCard or Visa. Choose your credit carefully.

Do Keep Your Balances Down

Your credit scores are sensitive to your revolving balances. The higher your balances, the lower your scores will be, and vice versa. There is no lasting harm done by using your credit cards, but if you need your scores to be their best in the short term, you will need to get your balances down, and keep them there until you have achieved your goals.

Do Start a Savings Plan

Too many people have started credit repair, and made great progress, only to see their scores fall because of a late payment. Unforeseen events will happen, it is best to be prepared. If you start a savings plan you will be able to absorb the cost of unexpected expenses without falling behind on your monthly payments. A single late payment can send your scores into a tailspin. Take precautions.

Do Dispute Reporting Errors

If you see something on your credit report that does not look right, dispute it. This is an essential step in any credit repair process. Credit reporting is prone to errors, and errors can easily translate into financial harm. Errors can lower your scores, and lower scores can raise the interest rates you pay on money you borrow. Do not be shy, dispute errors with the credit bureaus. They will be fixed.

Do Stand Your Ground

If you dispute an error with the credit bureaus and that error is verified by them as accurate, you should not give up. Remember that every point on your score is important, and errors can cost you money. If you want your credit repair effort to be successful it is important to stand your ground. You do not have to accept verification as the final word. Write back and push the issue. Stand your ground and you may yet prevail.

Do Succeed

Credit repair works. Make the effort and you will succeed. The process is simple and the results are invaluable. As the months go by you will have the pleasure of watching your credit report improve and your scores go up. As this happens, doors of opportunity will open. Lenders, employers, insurance companies, and even landlords will see you in a new light. Start working on your credit repair to-do list today and success will be yours!

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

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.