Credit Repair Information Credit Card Debt Report Credit

Credit Repair Information Credit Card Debt Report Credit

Time for A Credit Repair Tune Up!

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 underreported 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.

About the Author

Jim Kemish, a nationally recognized credit repair and restoration expert, is the president and founder of Sky Blue Credit, a leading Credit Repair Service since 1989. Jim is also the president of Power Mortgage, a Florida mortgage company based in Delray Beach, Florida.

Credit Repair Questions???

I am in the process of cleaning up My Credit myself and I am getting some conflicting information and need some questions answered.
1) I have a credit card that I reached a settlement amount on years ago. I was told that there is a "zero balance" form letter that I can use to change the status on my report from "settlement" to "satisfactorily paid". Does anyone know where one is and how that works?
2) I have several small collections ($100-$300) on my credit that I am going to pay off. Is it better to have those show as paid or get those items removed entirely? If removed entirely, how do I do that?
3) The only Line Of Credit I have is my car note. It currently shows some late payments. Any advice on getting those changed to a current status?

I'm hoping to be in a position to purchase a home in the next 12 months and my credit is bad. I do have money to pay off my debts and I want to make sure that everything looks good when finished. Any other advice is appreciated.

1 - Never heard of such an item, and doubt that it exists. The best way to avoid the dreaded 'settled for less than original balance' is on the front end-by negotiating with the creditor.

2 - Paying the collections will do you NO GOOD unless you get them to agree, in writing, to remove the item from your credit report once it is paid. Don't agree to anything until you have that letter. They will always try to tell you that they can't do that, at first. Don't believe it. They can and will if negotiated properly.

3 - You can dispute the late payments. The FCRA says you can dispute items as many times as you want. If they don't respond to the credit bureaus within 30 days, they must remove it. Send dispute letters to each of the bureaus that the trade line is reporting to. What you don't have is revolving credit - and you need it. Get a Secured Credit Card and your score will immediately jump 30 points.

I have a Credit Repair Company with in-house Realtors and mortgage brokers and these techniques have worked for us many, many times.
Good luck!

Dateline NBC - Credit Card Debt Trap Part 1 of 10

 

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