Credit Repair in the News

Credit repair is more important than ever. In a recent interview with MarketWatch, a Wall Street Journal website, the Consumer Operations manager for the MyFICO division of Fair Isaac spoke out about the importance of checking your credit reports. In the words of the article, “There may be some surprises waiting for you.”

A New Credit Repair Landscape

Creditors everywhere have tightened their guidelines. This new credit environment has made credit repair more important than ever before. And to make things even more difficult in these already challenging times, creditors have begun to reduce and close credit cards in order to limit their own risk exposure.

The Limit Reduction Problem

This action is doubly hard for consumers. First, these limit reductions are happening unexpectedly, even to those who have never made a late payment. And second, and even more damaging, is the snowball effect that follows. A major part of your credit score is based on the relationship between your current balance and your credit limit. When a creditor cuts your limit your balance-to-limit ratio increases and your credit score will fall, through no fault of your own.

The Snowball Effect

And the snowball starts rolling. Once the first creditor drops a limit and your scores fall, other creditors are likely to drop your limits as well. And the lower your scores the more prone you will be to this perfect storm of credit repair trouble. What to do?

Good Credit Repair Advice

The Consumer Operations Manager for MyFICO suggests that you do everything in your power to insure that your credit report is as clean as possible and your scores are optimized. And don’t make the mistake of thinking that paying your bills on time (as important as it is) is you need to do. Credit repair knowledge is power. Here is a summary of his credit repair tips, and our extrapolation.

Check Your Credit Reports

Look for changes in your account limits. And while you’re at it, check for errors. Errors come in many shapes. Derogatory information should cease reporting, generally, after seven years. You should know that the seven year reporting period clock starts on the date of the original default with the original creditor. The original default was the first reported late payment in the sequence that led to the charge off or collection status. Collectors cannot reset the clock with subsequent reporting. And while we are on the subject of collectors, you should know that if a collector no longer owns the debt, he is supposed to remove the account entirely from your credit report. When in doubt, challenge the item with the credit bureaus or hire a credit repair professional to manage the process for you.

Don’t Get Close to Your Credit Card Limits

A significant percentage of your credit score is based on your balance-to-limit ratio. Reduce your balances as much as possible. Less than 20% of your limit is the optimal balance. Many people are blindsided by precipitous drops in the scores when they max out a card, even when they have never been late on a payment.

Keep Accounts Active

Use your cards to keep them alive. Dormant cards are in danger of being closed by creditors and unless you have plenty of open accounts this could cause a drop in your scores and send you in search of credit repair solutions.

Pay Your Bills on Time



This seems like a no-brainer, but it is so important. Make sure you understand the impact your purchases will have on your budget. Try not to let yourself get spread too thin. A single late payment can have a big effect on your scores, and may even trigger adverse action, such as limit reduction, by your creditors.

Don’t Apply for New Credit Cards

We have warned against store cards for years, and MyFICO agrees. Store cards can be credit repair suicide as they often present a triple threat. First, you will have an inquiry. Second, you will have a new account which will weigh down your credit scores for several months. And last, and worst, is the fact that most store cards offer a credit limit only marginally over the amount of your purchase. Put these together and you get credit repair trouble.

Call for Credit Repair Help

If you are confused by all of the components of credit report and score management, or don’t have the time to handle the task on your own, don’t give up. Call a credit repair professional for help. A credit repair professional will manage the process for you and insure that everything possible is done to optimize your credit. Good luck! Copyright © 2008 James W. Kemish. All Content. All Rights Reserved.

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.

Using Your Credit Cards

There is nothing wrong with using your credit cards. Credit cards allow you to manage both purchases and unforeseen events over time. There is also nothing particularly wrong with running your balances up to the limit – unless you need your credit scores to be at their best in the short term.

Credit Repair and Your Credit Card Balances

The FICO scoring model recognizes five different credit card usage levels and adjusts your scores accordingly. These levels are 20, 40, 60, 80, and 100 percent; the lower your balance the higher your score. This should not be taken lightly. Changing your credit card balances can cause a swing of over 100 points on your credit score. If you are applying for a loan every point on your score counts, so keep those balances down.

Store Cards Can be Good Business

Everyone likes a good deal. So when a cashier at a department store offers a discount in exchange for opening a new store card, it can be tempting. Sometimes accepting the offer is the right thing to do. It can be good business to save a little money. But in the world of credit repair, timing is everything. When that store card hits your credit report it will put a big dent in your credit score.

The Problem with Store Cards

Store cards contain three credit score hits in one little package. First is the inquiry, second is the new account, and third, almost inevitably, your new balance will be close to the card’s limit. If you don’t need your credit score anytime soon there is no problem, but if you will are applying for a loan, or are in a credit repair program, think twice before opening that new store card.

How Many Credit Cards

Too many credit cards are not great, so a bit of financial simplification may be in order, but don’t get carried away. Many people start a credit repair program and decide to tidy up their life by closing all but one credit card. This can send your credit score into a tailspin. If you have more than five open cards, go ahead and trim down, but otherwise leave them open. Your credit scores will thank you.

Rebuild Your Credit Now

After a period of financial difficulty many people find themselves with no open accounts. You need to have open accounts to build your credit scores. Credit repair takes time. Don’t wait until you have cleaned up the old derogatory information on your credit reports before applying for your new credit cards; start building now.

Secured Credit Cards for Credit Repair Success

If you can’t get approved for regular credit cards, get secured cards. Secured cards require a small saving account which will secure your new credit line. Open two secured accounts, keep the balance under twenty percent of your limit and you will see big credit repair results before you know it.

Authorized User Accounts – The Good News

Authorized user accounts provide two benefits. First, they are easy to get; anyone can add you to their account as an authorized user. Second, you inherit the benefit of the primary card holder’s payment history on that account. So, assuming they have a good history, your credit score will increase accordingly. A great credit repair trick – or is it?

Authorized user Accounts – The Bad News

The problem with authorized user accounts is that Fair Isaac and Company has removed the credit score inheritance benefit from the new version of the FICO software. The credit bureaus will be adopting the new software over the next year or so and the score benefit will be gone. It’s time to build real credit. If you cannot get unsecured credit cards, apply for secured cards. Take action today.

Don’t Ignore Collection Letters

The last thing you want to find in your mailbox is a collection letter. It is tempting to ignore it. Unfortunately, if you ignore that collection letter for more than 30 days you have lost a golden credit repair opportunity to validate the debt. If you read the collection letter carefully you will see a notice that you have 30 days to challenge the collection. Don’t miss your chance.

Credit Repair and Debt Validation

Collectors are governed by the Fair Debt Collection Practices Act, which says that if challenged they must, upon request, provide proof of their legal right to collect and an accounting of the amount due. This accounting should come from the original creditor. If the collector cannot provide the requested documentation they must cease collection efforts and not report to the credit bureaus.

Start Your Credit Repair Project Today

Every point on your credit score matters. Credit repair takes time. You cannot afford to delay. Just make sure to do your homework. Educate yourself. There are great resources on the web. If the project seems daunting, hire a professional. Expert credit repair services are very affordable and should include everything you need to optimize your credit score.

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

Credit repair products are on an all time high because this market is getting bigger and bigger every day. The fall in economy is making it hard for people to repay back on time, which deteriorates their credit reports. Hence, more and more people want to repair their credit reports. An easy credit repair kit is a good way to do this. Most of these products are claimed to be best and they come in different forms like videos, books, DVDs or CDs and even computer software. The credit repair books are most widely used method. These books can be a breath of relief for people with poor credit score. With the guidance from these books, an individual can come to know what he got to do and how he should do things to fix his bad credit.

The most widely read book regarding this is “The Credit Repair Kit” By John Ventura. It costs around $15 and is easily found on Amazon.com. You can even buy the used copy of book for $1 only. This book is considered as one of the front runners in improving credit scores and this is the reason it has received very good reviews too.

This book educates people about basics related to credit like how to solve the credit problems, it what are credit exposure agencies and also provide the detailed information on how to receive and read your credit report. Most readers are average people willing to improve the credit ratings and are surely not experts. Hence, this easy credit repair kit guides them well to fix their credit scores.

The Internet has opened new doors and possibilities are immense. Countless books on credit repair are easily available on the World Wide Web. The best thing is that you just need to download them and can read them from the comfort of your home.

Other most commonly used way in credit repair kit are the software tools for credit repair. They can be easily installed on the PC. Some of these softwares are so advanced that they have built in servers that automatically connect you to the credit reporting agencies and verify the information itself. These softwares make tracking your credit status easy

When you are thinking of purchasing an easy credit repair kit, keep the following pointers in mind. The kit should:

• Guide you to read the credit report.

• Explain the working of agencies and the ways by which they access and collect individual’s credit report information.

• Teach you many ways to fix your credit score.

• Teach you about the ways to approach credit reporting agency in case of any disputes or errors on your report.

• Teach you about the ways to handle identity theft issues.

• Teach you the ways to improve the credit ratings.

• Have tools that help you stay away from credit problems forever.

For easy tips and techniques visit Easy Credit Repair Kit.

Credit Repair, Is it a Scam?

Many people will argue and tell you that all credit repair is a scam, but if you know your facts then you can see that honest, legitimate companies can assist you in doing credit repair.

Credit repair is not a way to change falsely change information on your credit report. No one can promise you a great credit score because Credit Repair does not work that way. Can you improve your credit score by doing credit repair? Generally, most people find that their credit score does improve with proper credit repair. So let’s start off by explaining what credit repair is and how you should go about it.

Everyone has a credit history report. This report is built upon information that is sent to the credit reporting agencies (Equifax, Experian and TransUnion). The information is then added to your credit history and works to build your credit score.

Most Americans have credit history reports that have inaccurate or misleading information on their reports. Approximately, 79% of all credit history reports have information that is inaccurate. Inaccurate information causes your credit score to be incorrect. Credit Repair is when you dispute the inaccurate information so that your credit report is as accurate as possible. When correcting the information that is inaccurate your credit score will change. Since you are disputing information that is being reported to your credit report that is negative, you will see changes in your credit score in a positive manner. This change in a positive manner will raise your credit score.

Information on your credit report should be reviewed very closely. Dates, balances, payment history can play a huge part in determining what effect that is having on your credit report. For example, if you opened an account in 2000 but it shows on your credit report that you opened that account in 2002, then your credit score will be lower because your score is based on credit history. The longer you have had an account, the more it helps your credit score. If you have an account that shows your balance as $1000 but it actually is $2000 then your available credit ratio is wrong and that will lower your credit score. This is why it is so important to review your credit history report very carefully.

If you have reviewed your credit report and found that you have inaccurate information on your report, then you have the right to dispute that information. The Fair Credit Reporting Act (FCRA) gives you that right. You can review the FCRA at www.ftc.gov website. This will help you to understand your rights. You should know that no one can remove information from your credit report that is accurate. Any company that guarantees they can is not a legitimate credit repair company.

You have the right to dispute any information without the assistance of anyone. You can take the time to review your report, go over what information is on that report and then determine if it is accurate or not. If you have never reviewed a credit report before then you might be in for a headache as they are extremely difficult to read and determine if the information is accurate or not.

Most legitimate credit repair companies will break down the information on the report and show you what is negative on your report. The best place to start is to review the negative information and determine what is inaccurate. This is where you should begin to dispute the inaccurate information. Again, you can do all of this yourself but it is very time consuming. Now once you have found the inaccurate information on your credit report and begun the dispute process, be prepared for resistance. Most companies don’t want to go back and take the time to review the information closely. This causes them to just verify the account. You might get a letter back from the credit bureau telling you that they verified the account. But you know that the information they verified is still wrong. Most people will stop disputing here and that is why there is still so much information being reported that is still wrong. Sometimes, you have to dispute information on your credit report several times before the company sees that you won’t stop disputing inaccurate information. Then the companies will take a good hard look and generally find the errors. Once they have found the errors, they will correct them.

Don’t dispute too many items at one time. Think of it this way, if someone walked up to you and gave you a pile of things that you were told to fix, you may be overwhelmed and not sure what to do next. Credit Bureaus will “flag” an account that gets too many disputes at one time and may not go forward with any dispute. It is best to dispute a few things at a time so that you don’t “flag” your account. Working at a slow steady pace generally will give you much better results than if you try to get everything cleaned up all at once.

If you dispute an item on Experian, it is best to dispute a different item to the other bureaus. This might help your process of Credit Repair to move more quickly. When a dispute goes to a company for review, if they find an error, they will report it to all three bureaus. So if you dispute one item at all three bureaus and the company reports the changes to all three bureaus, you did not work the system efficiently.

So remember this:

1. Take the time to review your credit report closely

2. Determine which items on your credit report are inaccurate.

3. Dispute the information that is inaccurate.

4. Don’t be discouraged if the bureau reports the information as verified.

5. Don’t dispute too many items at one time. Large disputes will trigger flags at the bureaus.

6. Dispute different things at different bureaus. This might speed up the process.

7. Determine if the problem is small and manageable. Get assistance if necessary.

A legitimate Credit Repair Company can help you by doing all of the day to day work. It could save you a lot in postage if you have huge amounts of disputes to handle. Ovation Credit Services can show you how they process your credit information and how you inform them as to what needs to be disputed. Then your responsibility is to update and simply monitor what disputes are being processed for you. To get the best credit score possible, you will need to start with the most accurate report possible. Then by paying your bills in full and on time, your credit score will get better each and every month.