After twelve years of credit repair, credit score repair and writing credit repair letters to all sorts of creditors, collection agencies and credit bureaus, I realized that it was necessary to provide my services at a serious discount to consumers in need. I realized that not all consumers could afford my credit repair services. As a result, I created a hot line to answer credit repair and credit score questions. However, I noticed that it was becoming an overwhelming task for my staff and at much expense in order to provide the free credit repair services.
A little over two (2) years ago, a couple of my clients suggested I should write a booklet (20 pages) about credit score, how credit score is calculated, what to look for when calculating credit score, what is the best way to repair credit and some of the main topics of credit repair. They suggested I should provide this ebook for a price of $9.95. I thought about doing so for some time as I was thinking that 20 pages of credit repair ebook would not be enough to even touch the surface on so many subjects that needed to be covered. You see the entire idea of credit repair (credit score repair) or credit repair letter writing is not a simple task that even 50 pages would be enough. However, it was also bothering me to charge $9.95 for some limited number of pages.
Then I realized, I could sit and think and continue contemplating about writing a credit repair – fix credit summary pages until I turn blue, or if I truly want to help consumers with their credit repair and credit score issues, I must take a step and start now. That was two (2) years ago.
As I was writing, in August 2006, I realized, we’ll have a major problems with the mortgage loans being granted so easily due to the unethical practices of mortgage lenders, brokers and direct lenders. You must understand this point. For the past eleven (11) years, I was directly involved in assisting my clients get loans after their credit repair was reasonably completed and their credit score was around 740 or higher. Initially, I was just fixing credit and let them enjoy the luxury of such good credit score. However, after communicating with my clients a couple of months later, I noticed that they were getting rubbed by “mortgage brokers” and the so called “Direct Lenders” or even the loan servicing companies. It was unjust then and it continued to be unjust now. Since this is a separate issue of its own, that I must share it with you and teaches you what to watch-out for, I am going to create a separate article about Creditors, lenders, mortgage brokers and the “direct lenders.”
Let’s stick with issue regarding credit repair.
Most consumers fall in the trap of over extended credit when banks and credit cards companies offer one card or loan after another. The consumers think the best way to get-out-of debt is borrowing more. In other words, “steal from Pete to pay Paul.” This is one of the major misconception consumers have that puts them in a deeper debt and causes even more problems for them to the point that they have credit collapse (beyond credit crunch). They experience receiving a lot of called from collection agencies, having late payments, collections and charge off entries on their credit files (credit reports) and their credit score goes down to 400 or 500 level.
As I was typing my so-called ebook (according to push my clients given), I noticed that the summary book was expanding to over one hundred pages and I was not even touching half the issues. Then I decided to continue and make the book a “credit repair” book called “Your Credit = Your Life, Fix It Now!” Since August 2006 realization that we will have mortgage problems, my only option was to inform as many people as I could either by emailing or calling, I was not able to reach all consumers. However, “Your Credit = Your Life…” book addressed all issues.
Other misconceptions consumers have, is the fact that some of them think, a credit repair is a quick fix. They think, they can just wave a magic wand and their credit score will go up from 495 to 720 or more. That’s not how it works. A true credit repair or improvement in credit score takes time (several months to a couple of years). Don’t be fooled by what you hear as quick “credit repair fix.”
In order for you to do self credit repair which is the best method, your must follow several steps. Those steps are lengthy and require patience. It requires dedication, willpower and application of your own gradual experiences. For the past several years, I have a sign on my office door so that everyone can clearly see. I also have the quote on my business cards, letterhead, books I wrote and talk about it repeatedly. It says, “more is lost by indecision than by bad decision.”
Think about it for a couple of second and then relate these words to what has transpired in your life thus far. Just as I was contemplating to write 20 pages for an ebook and sell it for $9.95, I was thinking of two things:
a. It is not possible to write just 20 pages,
b. I wouldn’t have the heart to sell a summary book for $9.95.
I lost the track of my own quote. “More was being lost be my indecision…” I wanted to help teach others how to fix credit; I hired a staff teaching them the credit repair concepts, but wasn’t grabbing my keyboard to type what was in my heart and mind. As my clients were pushing me, I was lost in my indecision.
Most consumers do exactly the same as I did for a couple of months. Think with yourself. How many times were you planning to do something and you kept contemplating if you should do what was in your mind or suggested to you? I bet you did that a few times. I bet part of your problem was the same as mine. Where do I start? How do I approach it? What would be my next step? And, a long list of other questions. You know something. Unless you take the first step, you wouldn’t know what the next step is. Unless you set your goal, mind and heart to take an action, it will never happen. You will contemplate and continue in your indecision yet time passes you by and all you do get deeper and deeper in debt, pay more for simple loans, get drowned in debt to a point that you will take your credit or financial anger on your loved ones. This is all because you didn’t make your decision to do something to turn your life around.
My dear friend, stop feeling sorry. Here, I am pushing you to do something. Make a decision and do something about it NOW. It is never a bad idea to have a better credit so that you could have a better life and save more money. It took me several months to prepare the book that offers all you need to know about your credit. Believe me, I have seen so many credit reports that yours would not be half as bad as what I’ve seen. There is hope for everyone, especially you. You only become hopeless when you don’t get up, shack off feeling sorry and do something to turn your credit life around.
Please let it be now. Here are a few steps in what you can do.
1. Get copies of your credit reports. You must obtain recent copies for all three (3) credit bureaus. One credit report won’t do. Why? Different creditors and collection agencies report to different credit bureaus. See the book.
2. Compare each entry shown on your credit reports with the account statements you have. Whether it is an open account, closed account, a collection, a charge off or late payment account. You don’t know how many times, I seen credit reports where the consumer did not have any such account and it was creditor or credit bureaus mistakes. Read the book.
3. When you notice inconsistencies (whether it is an account you don’t recognize or misinformation about an account), call creditors and credit bureaus. Discuss, dispute and be persistent.
4. Ask for a conclusion, removal or correction letter.
5. Do NOT settle with collection agencies. If you do or have no other choice, you must do two things, settle for less or don’t pay unless they agree to correct the entry by removing it.
6. Do not trust a collection agent. They do NOT mean well.
There are so many things to talk about and so many techniques to offer. It is impossible to discuss all in this article. So, I ask you to do something useful and quick to improve your credit score, which is as a result of your steps in your credit repair. You don’t know how good it will do for you.
For a complete details of the list above and other topics use the knowledge base provided at link and pick up a copy of the book “Your Credit = Your Life, Fix It now!”
There are several important issues to consider before starting your credit repair effort. The time you invest in preparation will save you time and effort, and more importantly, insure that you get the results you deserve from your credit repair project. Take a moment, plan your approach, and proceed thoughtfully. You will succeed!
Make Your Payments on Time
If you are currently not able to keep up with your existing obligations, credit repair is not the right option for you. Before starting a credit repair effort your finances should be stabilized and you should be able to pay your bills on time. There is no point in cleaning up your credit report while derogatory events continue to occur. If you are having trouble paying your bills you should investigate other options, including consumer credit counseling and debt negotiation. You should also consider consulting a bankruptcy attorney.
Get Your Credit Reports
You will need all three reports from the major CRAs (credit reporting agencies) for your credit repair project; they are Experian, Equifax, and TransUnion. You can get them for free at AnnualCreditReport.com, but I am sorry to say that I advise against this option, as it is difficult and frustrating. And in the end, should you succeed, you will have three credit reports in different formats, and all about as clear to the layman as reading Chinese. I suggest purchasing a nice tri-merged report. They are easily available on the Internet and should cost less than $20. A good investment in your credit repair success.
Get Your Credit Scores, Maybe
It seems like a nice idea to obtain your credit scores at the outset of your credit repair project so you can track the progress of this important number. Should you choose to do this, you need to be aware of a controversial battle between the credit bureaus and Fair Isaac Corp, the developer of the FICO scoring model. Lenders purchase FICO scores from the credit bureaus to make loan decisions. The credit bureaus, however, will not sell these genuine FICO scores to consumers. Instead they have created their own scores which are meant to mimic the behavior of FICO scores. Unfortunately, they often differ by as much as 100 points. At the moment consumers can purchase genuine FICO scores for their Equifax and TransUnion reports directly from Fair Isaac at MyFICO.com. A single Equifax FICO score is available at Equifax.com. Experian FICO scores are not available to the public.
Read the Fair Credit Reporting Act
You cannot hope to succeed at credit repair without knowing the compliance requirements imposed on the credit bureaus. These requirements are codified in the Fair Credit Reporting Act (FCRA). Many people starting a credit repair program assume that it is only necessary to spot and dispute the obvious derogatory errors. If you make this mistake you are likely to leave half of your potential improvement untapped. If you take the time to grasp the essential reporting guidelines of the FCRA you will gain the legal leverage you need to get the credit repair results you deserve.
Read the Fair Debt Collection Practices Act
If you have any collection issues at all you will need a working knowledge of the Fair Debt Collection Practices Act (FDCPA). This is not a difficult read and will give you a significant advantage in dealing with both active collections as well as dormant collection accounts on your credit report. Armed with your legal rights you will be able to stop collectors from bothering you, force them to validate their legitimacy, provide you with an accounting of the debt, and force them to remove erroneous and outdated entries from your credit report.
Learn Your Statutes of Limitation
Statutes of limitation define the time limit for collectors to enforce collection of a debt through the court system and are an essential tool in your credit repair arsenal. A statute of limitation (SOL) has no bearing on the reporting period limits that the CRAs are required to enforce. Reporting period limits are generally seven years for derogatory events, whereas SOLs are often as short as three years. When an SOL has expired, a collector has no way to enforce the collection of a debt. This gives you a powerful credit repair advantage; you may opt to ignore the debt with no fear of being sued, or you may choose to negotiate a very favorable payoff.
Consider Professional Help
If you are going to manage your own credit repair effort you must invest the time in understanding your rights and the compliance requirements of all parties involved in the reporting process. But if you decide that you cannot manage the effort it takes to manage the credit repair task properly you should hire a professional. Should you decide on this path I suggest that you write down a list of questions relevant to your case and call several reputable credit repair services and interview them. Choose the company that you are comfortable with and put them to work. Good luck!