Are you fed up with bad credit? Are you ready to begin cleaning up your credit reports and improve your credit score? Here are a few tips from a credit repair professional that can give your credit score the boost that it needs.
Credit Repair And Your Payments
So you’ve decided to repair your credit. You need to enure all your payments are made on time from this moment on. Organize your finances and make sure there’s enough room in your budget for occasional unexpected expenses. Successful credit repair will require a certain amount of effort and you don’t want to undo your hard work and go backwards. Credit repair can transform your life so put in the effort and you’ll be rewarded.
Review Your Credit Reports
You can get copies of all three of your credit reports online from any of the sites listed at the end of this post:
Credit repair can be a daunting process. I recommend you take one small step at a time. Start by checking the credit limits on your revolving accounts. A significant portion of your credit score is based on the ratio of your current revolving balances to your credit limits. Many credit card companies under-report these limits and inadvertently do damage to your credit score. If you find any under-reported limits then inform the creditor and provide a copy of a credit card statement to the credit bureaus.
Eliminate Extraneous Accounts
Examine your credit reports for extraneous accounts, such as closed and paid accounts that are being reported as open with a balance. Also look for duplicate accounts. A duplicate account with no derogatory information can have a negative impact on your credit score. Duplicate accounts are a common occurrence and they can be rectified quite easily with a bit of credit repair. It is the credit bureaus rather than the creditors that most often cause these errors so a letter to the offending bureau should solve the problem.
The debt collection industry is the biggest single contributor to credit reporting errors and as such is well worth your attention. The FTC has made it clear in the “Fair Credit Reporting Act” that when debt is sold from one collector to another or returns it to the original creditor they should withdraw their reporting of the item. However, there is no incentive for compliance with this directive. You should therefore challenge collections as part of your credit repair effort.
Use Debt Validation
If you receive a collection letter then open it immediately and be prepared to respond. For a 30 day period following receipt of such a letter you are in control, legally. Don’t miss this credit repair opportunity. If a stranger were to knock on your door and ask for money would you give it to them? I hope not. Don’t give anything to a debt collector without first validating the debt. You have the legal right to demand proof from a debt collector that they have not only the legal right to collect the debt but also an objective accounting of the amount they are claiming. Do this within 30 days and do it in writing.
Know Your Statutes Of Limitation
Debts are not collectable indefinitely. If you’re beginning a credit repair effort this is one of the most important facts to know. Statues of limitation vary based on debt type and state. A search on Google is all it takes to find this information. Once the statute of limitation has expired a debt collector can no longer sue for the debt, and therefore will be unable to get a judgment. If a debt is past the statute of limitation then a debt collector has no legal way to collect. This provides you with two great credit repair options. You can send them a cease communication letter and you’ll never hear from them again, or alternatively you can contact them to negotiate payment. Once they know you understand your rights they should be content to settle with you.
Save For The Future
With all the effort you’re placing into your credit repair project you’ll want to ensure that nothing unexpected comes along to put you back to square one. The best credit repair insurance is a healthy savings account. If unexpected expenses occur then you’ll have some money set aside.