Credit Repair Works

Credit repair works. And the results will have a dramatic impact on your financial life. Lenders everywhere have tightened their credit requirements. Every single point on your credit score matters. Credit blemishes can quickly translate into higher interest rates and even loan denials. You cannot afford to ignore the potential of credit repair. Do it yourself, or for a small investment you can hire a professional credit repair service to manage the process for you. Either way, now is the time to take action.

The Great Liberation

Free yourself from the illusion of authority. Many people make the mistake of giving too much credibility to the content of their credit reports. The power of the credit bureaus can be intimidating; we might believe our eyes against our better judgment. The credit bureaus play an important role in our world, but they are not without flaw. Over half of all credit reports include errors that are significant enough for the victims to pay premium interest rates, and, in many cases, to face loan denial. The credit bureaus maintain files on over 200 million Americans. That means that over 100 million Americans are victims of credit reporting errors.

The Credit Repair Plot Thickens



There is an unfortunate and unjust credit reporting anomaly that is virtually guaranteed to handicap those who can afford it the least. If you have had legitimate credit problems in the past you are more than twice as likely to be a victim of reporting errors as someone who has not had issues. There are two primary reasons for this; when you default on a debt the creditor is apt to move your account into another reporting category increasing the likelihood of duplicates and errors, and secondly, if an account is sent to a collector the lax reporting conformity of the collection industry can harm your credit needlessly for years to come.

And There is More

An informed examination of your credit report by a credit repair professional may turn up errors in many categories. Some of these errors are pure compliance violations that you are not likely to spot without training. If you are going to manage your own credit repair project make sure to do your homework before getting started. Educate yourself about reporting period limits for all categories of credit, make sure you understand the operation of statute of limitations, and peruse the Fair Credit Reporting Act and the Fair Debt Collection Practices Act. The little details can make the difference between success and failure.

The Credit Repair Solution



Understanding your rights and the compliance requirements of the credit bureaus will give you the legal leverage you need for your credit repair effort to succeed. Your credit bureau disputes are the cornerstone of your credit repair project, but there is more. True credit repair success should be measured by the improvement in your FICO credit scores. You must carry out your credit bureau disputes with an understanding of the impact every change in your credit report will have on your FICO scores. When you put it all together you will be thrilled with the results.

Help is Near

You are not alone. Many people don’t have the time to manage their credit repair project as carefully as necessary. If you feel that you can’t give it the attention it deserves, hire a credit repair professional. A professional will insure that every issue is identified, and will address your problems in an informed and careful manner designed to produce the best results. In addition, truly effective credit repair services will assist you in rebuilding and reshaping your credit to meet future lenders guidelines so that you will be left with genuinely useable credit. Whichever route you take, I urge you to act now. It’s your credit, and it matters.

Copyright © 2009 James W. Kemish. All Content. All Rights Reserved.

Questionable Credit Repair Practices

A small sub-set of the credit repair industry has been operating in a gray area of the law by selling authorized user accounts to consumers. Many credit repair customers have been willing to pay significant amounts of money for these accounts, and the credit score benefit that comes with them. According to the Fair Isaac July 31, 2008 press release, those days are officially over.

A Brief History

The FICO credit scoring model considers, among other things, the payment history of your credit cards as an indicator of your credit worthiness. Until now, FICO also applied the payment history of authorized user accounts in their calculation of the score of the authorized user – an interesting point as these accounts reflect the credit worthiness of the primary card holder, rather than the authorized user.

The Birth of Credit Repair Card Sales

A number of credit repair companies picked up on this loophole and began to sell authorized card memberships to people wanting a quick score boost. Soon lenders caught on and decided to fight back; justifiably so, as these accounts artificially skewed the credit scores of borrowers, making good credit decisions unreliable.

The End is in Sight

Fair Isaac Corp. has now taken steps to preserve the integrity of the FICO score by eliminating the score benefit of authorized user accounts sold by so-called credit repair companies that chose to operate in this questionable market. If you have considered buying authorized user accounts from one of these credit repair operations to get a quick bump in your credit score, forget it.

The End of the Credit Repair Gray Market

The new, updated, FICO 08 release includes a fancy sorting algorithm which reportedly will allow legitimate authorized card holders, such as spouses, to continue to receive the score benefit, while effectively blocking cards that were sold in the credit repair gray market. Spouses are clearly safe, and based on the language of the July 31, 2008 press release, so, we believe, are child accounts.

How Does the Magic Work?

If I had to guess, I’d say that Fair Isaac tests for a relationship between the primary card holder and the member user. I’d also guess that they are testing for the number of member users per primary account. In other words, primary accounts that have more than one or two authorized users will be blocked for sure. This in itself would eliminate the majority of the gray market accounts because most of these accounts were sold multiple times.

Make Your Credit Repair Plans

Fair Isaac’s new approach to the authorized user account problem is very even-handed and should provide comfort to spouse and child card holders, as they should be able to continue to enjoy the score benefit of their accounts. But if you are making a credit repair effort and have purchased authorized user cards and are counting on them to maintain your score, it’s time to make other plans.

Finding the Right Solution

Ethical credit repair is also the most effective. Truly successful credit repair is about a genuine reshaping of your credit. You might have been able to artificially increase your credit score by purchasing an authorized card membership, but this was never an effective long term solution.

Credit Repair Done Right

If you are in a credit repair program and want to improve your credit scores, there is an effective and reliable way to do so. Build your own credit! If your credit scores are below the level that will allow you to get unsecured credit cards, get secured cards. Secured cards are cost effective, the accounts are yours, and before long you will be enjoying improved credit scores. That’s the right approach to credit repair.

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

The Growing Importance of Your Credit Score

Credit repair revolves around credit score improvement, and for good cause. You are probably aware that a low credit score can keep you from getting the credit you want. But did you know that lenders set interest rates based on credit scores? Late in 2007, Fannie Mae and Freddy Mac, the federally charted mortgage giants, modified their pricing to be more sensitive to credit scores than ever before. Even borrowers with excellent credit will now have their rate adjusted based on incremental score differences.

Every Point Counts

Mortgage lenders are not alone in their recent pricing policy changes. Auto finance companies, long known for tiered pricing, have also sharpened their pencils and are more score sensitive than ever. If you are applying for a loan you should be aware that every point on your credit score could affect your interest rate. Fortunately there is a way to control your credit scores and hasten your credit repair goals.

Credit Cards the Credit Repair Powerhouse

Effective credit repair is all encompassing. But there is a special category of debt that offers more control over your scores than you ever imagined – if you know what to do. Credit cards have a special place in the FICO scoring model, and therefore in your credit repair effort as well. Fair Isaac and Company, the creator of the FICO scoring model, interprets the way you use your credit card as a primary indicator of the risk a lender will assume when lending you money. And there is reasonable logic involved.

Credit Cards as a Barometer of Risk

Fair Isaac and Company is in the business of measuring the risk of lending money. Their method is to assign numeric value to every behavior they can identify within your credit file. These values are measured by a complex algorithm, or formula, which they license to the credit bureaus. The credit bureaus apply this formula to the information they collect about you and come up with a single number; your credit score.

Credit Card Behavior

Fair Isaac gives your credit cards special importance because your balances can change monthly and contain several indicators of potential risk. The indicators measured by Fair Isaac include your payment record, your balance relative to your high credit limit, and the age of the card. In addition, the importance of each indicator varies based on the value of the other categories. Let’s see why.

Credit Repair Rule Number One – On Time Payments

Many people involved in a credit repair effort open new credit cards to rebuild their credit. If managed correctly this can be a powerful score booster. But there is a dark side as well. If you miss a payment Fair Isaac will cut your score dramatically as a way of alerting lenders that you are a high risk. It’s simple. Your new credit card was seen by Fair Isaac as a test of your ability to manage new debt. And you failed. Credit repair rule number one, make your payments on time.

High Balances Equal Credit Repair Trouble

So, you got a new credit card, ran the balance up to the limit, and now you wonder why your credit repair efforts are not working. You can afford the payments, and you’re making them on time. What’s the problem? Unfortunately, all Fair Isaac can see is unproven debt and a person who may have no restraint. So you get categorized with a statistical majority who get in over their heads and soon default. As a result Fair Isaac will knock your credit score down to warn potential lenders to steer clear. Do you want to keep your scores up? Please keep your balances down.

The Age of Your Credit Cards

Once you have proven to Fair Isaac that you can manage the firepower in your wallet you will be rewarded with increased latitude. Your score will still suffer if you make a late payment, and you will be penalized if you let your balance approach the limit, but not as much. In addition, you will be rewarded with a higher score as Fair Isaac becomes more confident in your staying power. When it comes to credit repair, time is your friend.

Reaching Your Credit Repair Goals

Do you want to optimize your credit score? Make your payments on time and watch those balances. The latest release of the FICO score model recognizes five balance-to-limit ratios: 20%, 40%, 60%, 80%, and 100%. The first two tiers, 20% and 40%, will increase your scores, 60% is neutral, 80% is bad, and 100% is terrible. There is also a special deadly over 100% category, which you can expect to obliterate your score. If your credit cards are under one year old your behavior is especially important. If you exercise caution, your scores will soar, and you will reach your credit repair goals.

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

FICO – More Than Meets the Eye

Fair Isaac and Company is the developer of the FICO score, the credit score used by most lenders today. The exact formula is not published, but Fair Isaac offers a breakdown of the categories of influence, and the relative importance of each. The breakdown is a helpful starting point for anyone in credit repair mode who wishes to optimize his or her scores, but it is only a starting point…

Credit Repair and the Logic of FICO

If you are in a credit repair program and aspire to optimize your credit scores it is handy to understand the logic behind the scenes. Fair Isaac is in the business of providing lenders with a measure of the risk they will incur in lending you money. Fair Isaac has spent years analyzing the implications of every measurable behavior and developed a formula to communicate risk with a single number. Here is a breakdown of the components of the FICO score along with some powerful tips you can apply to your own credit repair efforts.

Pay History

Your pay history makes up 35% of your score. Clear enough, but let’s take a moment to understand the implications. A late payment is an indication of financial stress. Financial stress translates into risk of default, and FICO communicates this risk to lenders by reducing your credit score. A lower credit score says, “don’t lend to this person.” But there is more involved. FICO weighs recent late payments more heavily than older late payments. A brand new late payment can send your credit score to a level that no lender will consider. On the other hand, anyone in credit repair mode should be happy to hear that the impact of a late payment fades quickly as time goes by.

Balances – Installment

Your account balances make up 30% of your score. Both installment and revolving accounts are considered. Let’s take a quick look at installment debt before discussing the far more important category of revolving debt. When installment debt, such as a car loan, appears on your credit report FICO sees it as an unknown and drops your score to warn lenders of the new risk. After a few months FICO acknowledges your ability to manage the payments and adjusts your score accordingly. Not a big credit repair concern.

Balances – Revolving

Revolving balances are tricky and may hinder or help your credit repair efforts more than you think. You can clean up your credit report, pay your bills on time, and still end up with a miserable credit score. FICO puts a huge emphasis on the relationship between your balance and your high credit limit. The latest FICO model acknowledges six balance-to-limit ratios: 20%, 40%, 60%, 80%, 100%, and the deadly over-100% category. The two lower tiers will increase your scores, the middle tier is neutral, 80% is bad, 100% is awful, and as for the deadly over-100% category – I think you get the message.

Credit Repair and Your Balances

People often get a credit card, and quickly use it to the limit. Sounds like fun! Unfortunately, a new account with a high balance is credit repair suicide. The new account warns FICO about unknown stress on your budget, and the high balance says that you are out of control. This may not be the case, but big brother is watching and he doesn’t like what he sees. But there is some good news too. If you take that same new account and keep the balance below 20% of your high credit limit for 6 months FICO will think you are fantastic and reward you accordingly. This is solid credit repair gold.

The Age of Accounts

This category makes up 15% of your score. There are a few credit repair angles here. There is nothing you can do about the age of installment debt; when it’s paid, it’s done. But revolving accounts are a different story. FICO loves old accounts as much as it worries about new ones. Many people start a credit repair effort and cut up their credit cards; a strategic error. Generally you would be advised to keep your accounts open. There are exceptions. If you have lots of established credit cards you should close the inactive ones. There is a bit of a balancing act; too many cards work against your score.

New Credit & Inquiries

This category weighs in at 10% of your score. If you are planning to apply for a mortgage or a car loan soon, or are in a credit repair program and watching your scores, you should minimize your credit activity. New accounts will reduce your score, and an inquiry is interpreted as the intent to open a new account, so FICO will downgrade you to warn prospective lenders that there may be trouble ahead.

Type and Mix of Credit

This is the final 10% of the calculation, and not much of a credit repair concern. FICO does not publish their idea of the optimal mix of credit, but if you really want to know what the perfect 850 credit score looks like, here you go! One mortgage over 5 years old, two car loans more than halfway through their life span, and five credit cards over five years old with balances under 20% of the high credit limit will take you to the summit!

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

Credit Repair is all About Leverage

You want results. In the universe of credit repair you should focus your attention on the areas where you have legal leverage, and avoid those where you have none. If there are errors on your credit report your leverage will come from the obligations imposed on the credit bureaus by the Fair Credit Reporting Act (FCRA).

Know Where you Stand

The FCRA spells out the responsibilities of the credit bureaus in dealing with the dispute and verification process. All of your credit repair results will be attributable to the FCRA. Take the time to understand your basic rights and the legal responsibilities of the credit bureaus and you will have the power to produce the credit repair results that you need.

Don’t Believe Your Eyes

The vast majority of credit reports contain multiple errors. Many people have the propensity to believe what they see on their credit reports. The credit bureaus are not government agencies, nor are they infallible, far from it. They are big businesses trying hard to manage an unimaginable amount of data. Errors are part of the picture, and it’s time for you to look out for yourself.

Credit Bureaus and the Law

If it were not for the pressure of the government spurred by almost ceaseless consumer complaints about credit reporting inaccuracy things would be much worse. As it is, credit repair is reasonably manageable if you know your rights. It’s all about the FCRA and the obligations it imposes on the credit bureaus. You can succeed if you know your rights and stand your ground.

The Thirty Day Rule

Are there errors on your credit report? Oddly enough there is no point in disputing your issues directly with the creditor, as you would have no leverage; they have no obligation to respond. You need to focus your credit repair efforts on the credit bureaus. Once a credit bureau receives a dispute they have 30 days to verify the information with the creditor. If they cannot verify the information within that timeframe they must cease reporting it and send you a letter stating the outcome.

The Fifteen Day Rule

If a creditor verifies the information with the credit bureau within the allowed timeframe they will send you a letter explaining that the information has been verified. But this is not the end of your rights. If you are not satisfied you may send another letter to the credit bureaus requesting details about their verification process including contact information with the creditor. The credit bureau has 15 days to comply with this request.

Collectors and Psychology

Your credit repair project may bring you in contact with a collector. This is usually an unpleasant experience. Collectors are trained emotional terrorists. I am not kidding. Professional collectors are taught to cause as much fear and discomfort as possible without crossing the line into illegality. They will do and say whatever it takes to wear you down and make you pay. If you have to deal with a collector you had better know your rights.

Collectors and the Law

Collectors fall under the supervision of another important law called the Fair Debt Collection Practices Act (FDCPA). The FDCPA lists unacceptable collection practices as well as certain obligations to respond to specific consumer requests. If you know your rights you can control and even dominate the situation. Your right to validate a debt imposes an obligation on the collector to document the alleged debt and brings a halt to all collection efforts while this process is underway.

Credit Repair and Statues of Limitation

If confronted by a collector you may be able to turn the entire communication to your favor if you know the statute of limitation on the subject debt. The statute of limitation is the time limit that a debt may be collected through the court system. If a collection is beyond the statute of limitation a collector has no way to enforce the collection by suing you. This means two things, first, if you send the collector a cease communication letter he will go away forever, and second, if you would like to resolve an outstanding balance the collector should be very willing to negotiate.

Credit Repair Muscle

You don’t have to go it alone! If you would like to be guided through the process of credit repair, just call on a credit repair professional. Many people are too busy to manage the details involved with doing the job properly. You credit is too important to be left to chance. There is only one way to do it, the right way. Good luck!

Copyright © 2008 Ian Webber. All Content. All Rights Reserved.

Are You a Candidate for Credit Repair?

It is true that millions of people have benefited from credit repair. But there are many misconceptions about the subject that have led others to jump into credit repair programs before they were ready. If you are truly a candidate you are likely to see dramatic results in a short period of time. Your credit report can be tidied up and your credit scores optimized; many people see a complete transformation on their report and a significant jump in their scores within just a few months.

You Are Not a Candidate, if…

You are not a candidate for credit repair if you are having trouble paying your bills. Credit repair is not about eliminating debt or finding a way to erase legitimate obligations from your reports. There is little point in starting the process of cleaning up your credit if there will be new derogatory information reported each month. If you are in a financial bind there are several other options that you should investigate, including consumer credit counseling, debt negotiation, and bankruptcy. Prior to deciding on a course of action please take your time to research these options carefully.

You Are a Candidate, if…

You are a candidate for credit repair if your finances are reasonable stable. You must be able to keep up with your bills, and ideally have a little money left over for savings. The ability to contribute, even a small amount, to a saving account will allow you to create a safety cushion for unexpected expenses and to insure that you can preserve the fruits of your credit repair efforts. True progress may also require that you build new credit, and for many people this means opening secured credit cards. A secured card typically requires a small savings deposit ranging from 200 to 300 dollars, so you should have some money available to contribute to the cause.

Getting Started

If you are a candidate for credit repair there are several steps you must take to prepare for the process. This small investment of time at the outset will pay huge dividends. Too many people jump in blindly and consequently get frustrated, or more commonly get only half of the potential benefit. There are few things as important as your credit; you owe it to yourself to make sure the job gets done properly. When it comes to credit repair, short cuts are dead-ends. Here are some ideas about building the right foundation for your efforts.

Get Your Credit Reports

Start by getting all three of your credit reports. Credit reports are a little tricky to read. If you purchase your three bureau credit reports individually, or opt for the free reports offered through the government mandated site AnnualCreditReport.com you will be starting your project at a disadvantage. Give yourself the edge and invest in a good tri-merged credit report online. One of these reports should cost you less than 20 dollars and is well worth the money. Most tri-merged reports structure your credit information for ease of understanding and will allow you to make sense of everything you see.

Proofreading for Credit Repair

The goal of proofreading your credit reports is to indentify every single issue that is hurting your scores. Before starting there are two things you need to know. First, it is essential that you give yourself the benefit of the doubt; if there is any question in your mind about the accuracy of a derogatory item you should dispute it with the credit bureaus. Second, don’t skip anything regardless of how small. You might be surprised how little things can add up and impact your credit scores. It’s your credit. Everything matters.

Spotting Invisible Dangers

When you proofread your credit reports there are several special things to look out for. These issues are hard-to-spot legal and reporting problems that can depress your scores, and yet unless you are alert they will escape your notice. Underreported credit limits can make your cards look like they are over utilized, accounts often continue to report as open with a balance long after they have been paid and closed, duplicate listings are commonplace and should be eliminated, collectors are supposed to withdraw their listings completely when they sell the debt to another collector or return it to the original creditor, but they do not often comply. All of these issues can hurt your scores so look sharp!

Reach Out for Help

If at any time you feel overwhelmed by the task you should reach out for help. There are many professional credit repair services that can insure that the job gets done properly. These companies are typically very affordable and will make sure that nothing gets left out. The best of these credit repair firms will also provide additional services like score consulting, rehabilitation and rebuilding guidance, and more. It’s your credit. It matters. Good luck!

Copyright © 2009 Ian Webber. All Content. All Rights Reserved.

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.

Starting your Credit Repair Tune Up: Get Your Reports

A credit repair tune up does not have to be hard. If you break up the project into smaller tasks the whole job will be a breeze. Don’t be intimidated. Take it slow and you will get the job done. Each little step along the way can add points to your credit score and move you closer to your credit repair goals.

Credit Repair Made Simple – One Bureau at a Time

There are three credit bureaus, so you need to tune up three credit reports. Many people starting a credit repair effort are intimidated when they see their reports. The formats are unique and the information reported by each bureau is different. Don’t worry; you don’t have to work on all three reports at the same time. There is no economy of scale. Start with one report, do what needs to be done, and then move on to the next one. Slow and steady wins the race.

High Credit Limits

Begin your credit repair tune up with something easy. I suggest you get a highlighter and mark the high credit limits on your accounts, both installment and revolving. If you find an account with an under reported limit it is costing you points on your scores, possibly significant points. It is easy to correct a limit error, just dispute it with the offending credit bureau and attach a copy of a recent statement showing the correct limit. Your credit repair tune up is off to a good start.

Account Opening Dates

The age of each account has an impact on your credit scores. Credit repair rule number one: an old account is a good account. Highlight your account opening dates. If you find one that underreports an opening date you should contact the creditor and inform them of the error and ask them to report it correctly. You should also ask them for a letter indicating the account opening date and then submit it to the bureaus yourself. You will be surprised with the results…

Credit Repair and Collection Accounts

The sale of debt is so common in the collection industry that you may find a single collectable account reported many times on your credit report. Collectors that no longer own a debt are not allowed to report it to the credit bureaus. And yet there is no incentive for collectors to cease reporting when they sell the debt to another collector. If you see the same account being collected by more than one collector, dispute all but the most recent. They will be removed. Your credit repair tune up is really getting into gear.

Negotiating Uncollectable Collections

Collections may be collected through the courts for a limited amount of time determined by state law. These time limits are called statutes of limitation (SOL) and are usually surprisingly short. If a debt cannot be collected through the courts it cannot be enforced. Please note that the SOL is not the same as the reporting period limit for your credit report. So, you may want to negotiate these “uncollectable” collections as part of your credit repair effort. The collector will love to hear from you, and you might even get them to remove the account from your credit in exchange for payment instead of just reporting it as paid. Give it a try!

Paying Down Your Balances

If you have the ability to pay down revolving balances, go ahead and do it. The FICO scoring model puts a lot of emphasis on the ratio between your balance and your high credit limit – and the lower the better. Are you looking for quick credit repair results? Pay your balances down below 20% of the high credit limit. If your balances have been lingering near the limit wait until you see what lower balances can do for your scores!

Trimming Down Accounts

You need to have open accounts in good standing to have a good credit score. But you can also have too many accounts. Successful credit repair involves achieving the right balance of accounts, so go ahead and close a few. But it is important to pick the right ones to close. MasterCard and Visa cards are the most valuable for your credit scores. Store cards have little value and should be the first to go. When you pick the accounts to close, please remember that old accounts are good accounts.

Credit Repair and New Accounts

If you do not have any open MasterCard of Visa accounts it’s time to open a couple. Two is a good number! If your credit scores are too low to get approved for regular unsecured credit cards, get two secured cards. Secured credit cards are the perfect credit repair tool. It’s easy and you won’t get denied. Remember, no credit, no credit scores. Your scores are a measure of your ability to pay and manage your debt. Get some credit cards and prove that you are a good risk. You scores will thank you!

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

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.

The credit card crunch has hit consumers at an all time high. Many consumers are desperate and reaching out to many different avenues in their desire to pay off their debt and repair their credit. Many consumers are being scammed by credit repair agencies that are only after their money and have no intention of helping consumers repair their credit.

Do your research on the credit repair company you decide to go with. Make sure the company you choose is backed by an accredited lender and the BBB. Call them and ask them questions regarding how they will be able to help you get out of debt and repair your credit report. Ask them how long before your credit will be repaired and back on the road to recovery.

You should never have to pay an upfront fee for a credit repair agent to help you get out of debt. Some agencies take consumers last few dollars to help them get out credit card debt and then they have trouble again making the monthly payments. This causes the vicious circle of debt to continue to grow and never relieving the consumer from making high payments to pay off debt.

Make sure you get the full details of the programs you are signing up for. What will be the total interest rate or fee that will be applied to your account? If you are looking to repair your credit you need to ask the credit repair agency all about the hidden fees or other long term accruals that the company may apply further down the road. This could actually mean it will take you longer to pay the debt off then it would if you were to pay the balances off on your own.

Try to avoid signing on to services with a credit repair agency if you can help it. Many companies claim they can help you repair your credit overnight and that is not true. With a little time and effort you can repair your own credit by paying your bills on time and keeping your balances low.

Copy what credit repair companies do. Credit repair companies simply work with your creditors and combine all of your debts to create one low monthly payment. By contacting your credit card companies individually you may be able to lower your monthly payments and pay your debt off faster.

Staying away from credit repair agencies and doing what they do for you without having to pay the long term charges is a great way to save money and save yourself the hassle of possibly getting scammed. You need to make sure if you decide to go with a credit repair agency that you do not accrue other debt during that time, it is very important in the recovery of bringing your good credit back to life. Pay your debt off a little at a time and pay the minimum amount due on time is the best way to get your bad credit back on track.