Can I Really Fix My Credit Scores?

Can I Really Fix My Credit Scores?
The first consideration when you're trying to raise your credit scores is to know where you currently stand. Everyone has scores that range between 300 and 850. This number determines if a creditor will extend credit to you as well as interests rates you might pay, is based on your ability to repay a loan, the interest rate you might be offered, as well as often determining rental or mortgage payments. Taking our credit ratings seriously is vital and honestly, it's the way our society operates. If you are one of the millions of Americans who have credit problems, you should know there are ways to overcome these obstacles. It's important to educate yourself and while you should take it seriously, you shouldn't allow it to stress you or cause you undue grief. Here are some of the positive steps you can take:

The first option should be paying down your current credit cards. Frequently, people believe paying off installment loans on automobiles and making on-time mortgage payments are the best first options. They're important, of course, but there are significant advantages in paying down - or better, paying in full - your revolving credit card debt. Your credit score is based on a number of factors. One major factor is allowing for a comfortable gap between the amount of credit you have been extended on your credit cards and the actual amount you have used. It shows you are able to exercise restraint in your spending habits. Instead of paying down those with the highest interest rates first, begin with those closer to their limits.

Use the credit cards you have sparingly, and when possible, pay the entire balance each month. High balances bruise your credit score. It is best to keep your charges at or below 30% of the card's limit each month.

Ensure your limits are accurately reported. Your credit score may be affected if your limits are reading less than what they actually are. Issuers of credit cards will quickly rectify the situation if you simply make them aware of it.

Your credit score can be raised by establishing a history. The longer an individual's accounts have been in good standing, the better. It's also wise to occasionally use some of your older card accounts to keep them current in their activity levels. Again, be sure to pay the balance in full when your statement arrives.

If you have been a good customer to your credit issuers, you can often raise your credit score by simply requesting, in writing, a "goodwill adjustment". If you have a late payment or sometimes even two late payments from the past, the credit issuer may agree to remove these late payments from your report. It costs nothing to request this.

Raising your credit score can be done, but it's an ongoing process. Just as your credit scores can drop, they can also improve. There are effective methods to raise your credit score and it all begins with developing a clear understanding of where you are and then being proactive in your efforts to initiate positive changes.
By : Chane S

Can I Fix My Bad Credit?

Can I Fix My Bad Credit?
Remaining pro-active in your efforts to fix your credit is by far the best way. Removing negative accounts and adding positive accounts is the only tried and true method. Both of these processes can take some time, though. The time to start fixing your bad credit is now, not the day you are ready to apply for a loan. Depending on how bad your credit is, it can take as little as one or two months to fix and as many as twelve months to repair.

First, you will want to know exactly where you stand. You will need to have your credit reports pulled so that you know what your scores are. You can obtain a copy for free once a year. It will cost a small amount of money to know your scores (unless a banker or mortgage broker is willing to give you a copy of your credit report after applying for a loan).

Once you know where you stand, you will need to then analyze your credit reports to determine what's beneficial and what is to your disadvantage. It may take awhile, but it's worth learning how to read a credit report. Once you can determine what is not to your advantage, your next step is to construct a plan of attack to get those accounts removed as fast as possible. This can be done by disputing these accounts with the credit bureaus via debt validation letters and other negotiations with creditors.

When you submit a dispute with the credit bureaus, the burden of proof is on them. All you are required to say is something along the lines of, "Please provide documentation that the following accounts belong on my credit report; otherwise, please delete this damaging data immediately." It is then up to the credit bureaus to contact the creditors to verify the information being reported is correct. Fortunately for you, most creditors keep less than perfect records and cannot verify the accounts even belong to you. In this case, by law, the accounts must be deleted immediately.

Disputing is one of the best ways to get accounts removed from your credit report, but there are many other ways to fix your credit. You should also be attempting to add positive accounts at this point. My suggestion is to apply for a few secured credit cards or by visiting your local credit union or bank and asking if they have a credit card with a low limit that will enhance your efforts to improve your credit scores. This is just a few ways to rebuild your credit. Be sure to always ask if what you apply for will report on your credit reports. After all, you want to get credit for paying your bills on time.
By : Chane S

Charge Offs - What They Are and How to Fix Them

Charge Offs - What They Are and How to Fix Them
Creditors use the term charge off to write off debt. After a period of time where no payment has been made on an account, (usually 180 days), creditors write it off as a loss and send the account to a collection agency.

After the account has been sent to a collection agency, the creditor usually stops charging interest. The reason for this is that they would have to report the account as income on their income taxes, if they stop charging interest they can just write it off.

Charge offs on your credit report are extremely damaging. It affects all aspects of your credit score. You may find it difficult to get another credit card and your interest rates on any current loans you have may go up. (Yes. Even if it has nothing to do with the charge off. The interest rates have everything to do with your credit score)

The first thing to do if you find yourself in a situation of financial stress is to try to avoid having a charge off put on your credit in the first place. Try contacting the lender and explaining your current situation. Negotiate. By making minimal payments as frequently as you are able, you can probably avoid a charge off.

If it is impossible to keep up on monthly payments and you do end up with a charge off on your credit report, there are ways to have them removed. You can try to contact the original creditor and see if you can agree upon a payment plan. They may remove the charge off once the original debt has been paid. Also, it may benefit you to ask questions, creditors are willing to work with you on ways to get your situation resolved. If that doesn’t work you can dispute the charge off with the credit bureaus. When you dispute an item on your credit report, the credit bureaus then have 30 days to verify account with the original creditor. If there isn’t any verification the item must be removed from your credit. Chances are if you have already paid the charge off it will be removed, it may be a little bit harder to remove if there is still outstanding debt. But again, creditors want their money and they are willing to negotiate.

Hard financial times don’t have to ruin your credit score forever. You can use your negotiating skills to repair your credit score and help to keep your interest rates down.
Creditors use the term charge off to write off debt. After a period of time where no payment has been made on an account, (usually 180 days), creditors write it off as a loss and send the account to a collection agency.

After the account has been sent to a collection agency, the creditor usually stops charging interest. The reason for this is that they would have to report the account as income on their income taxes, if they stop charging interest they can just write it off.

Charge offs on your credit report are extremely damaging. It affects all aspects of your credit score. You may find it difficult to get another credit card and your interest rates on any current loans you have may go up. (Yes. Even if it has nothing to do with the charge off. The interest rates have everything to do with your credit score)

The first thing to do if you find yourself in a situation of financial stress is to try to avoid having a charge off put on your credit in the first place. Try contacting the lender and explaining your current situation. Negotiate. By making minimal payments as frequently as you are able, you can probably avoid a charge off.

If it is impossible to keep up on monthly payments and you do end up with a charge off on your credit report, there are ways to have them removed. You can try to contact the original creditor and see if you can agree upon a payment plan. They may remove the charge off once the original debt has been paid. Also, it may benefit you to ask questions, creditors are willing to work with you on ways to get your situation resolved. If that doesn’t work you can dispute the charge off with the credit bureaus. When you dispute an item on your credit report, the credit bureaus then have 30 days to verify account with the original creditor. If there isn’t any verification the item must be removed from your credit. Chances are if you have already paid the charge off it will be removed, it may be a little bit harder to remove if there is still outstanding debt. But again, creditors want their money and they are willing to negotiate.

Hard financial times don’t have to ruin your credit score forever. You can use your negotiating skills to repair your credit score and help to keep your interest rates down.
By : Chane S

Credit Repair: Undoing the Damage

Credit Repair: Undoing the Damage
With appropriate measures and the right information, you can repair your credit rating and increase your credit scores. This one fact, however, is only half the battle. Because there is so much misinformation tossed around regarding credit repair, finding the truth and learning your federal rights under the Fair Credit Reporting Act is a must. Once you understand how the American credit system works, you are on your way to living a life of financial prosperity.

Here you'll find a few steps that will aid you in your efforts to repair your credit scores:

Obtain Your Credit Report
Request a copy of your credit report from the three major consumer reporting agencies. This will also tell you what your credit scores are.

Evaluate Your Credit Reports
Once you have your reports, you’ll want to ensure the information is correct. There are mistakes in nearly 80% of all credit reports.

Dispute Questionable Items
If you discover an inaccuracy or accounts you're not familiar with, dispute it with the reporting credit bureau. If the creditors cannot verify an account, the bureaus must remove all references from your credit report.

Consumer reporting agencies receive thousands of disputes each day. These disputes are handled by employees who make minimum wages with only a very short time to investigate each dispute. If the negative accounts aren't removed after your initial dispute, don't despair. It make take a few efforts to get the CRAs to remove the account. Be patient and allow four to five weeks between your efforts.

Pay Off Bad Debt
Paying off your most recent past due accounts can increase your credit scores. Use caution when paying on accounts more than a few years old, as paying them can bring your down your scores even more by triggering a "current" status on the account.

Negotiate with the creditor to update the account to reflect “paid as agreed” or to remove the account BEFORE you pay it. It’s difficult to convince the creditor to update or remove it after payment because you don't have as much leverage. That said, it sometimes is easier to dispute paid accounts with the consumer reporting agencies.

Maintain and Utilize Credit to Your Advantage
Another important aspect with raising your credit scores is to keep your existing balances below 35% of your available credit limit. You’ll also want to minimize the number of inquiries you make by not applying for credit unless absolutely necessary.
By : Chane S

5 Steps To Take Right Now to Repair Your Bad Credit

5 Steps To Take Right Now to Repair Your Bad Credit
There are many simple ways to repair bad credit. Everyone has had at least a few damaging accounts within their credit reports. It's difficult to not have ever experienced a blemish. Life happens and we must react accordingly. A temporary rating setback is common for nearly everyone. The key is to not stress too much about it. Just as your credit scores can be damaged easily, they may also be repaired. Following our five tips that you can implement today that will reflect positively on your scores.

• Tip Number 1:
Know what you are dealing with. You have a right to request an annual report free of charge, from each of the three major reporting agencies (also known as a tri-merge). Equifax, Experian and TransUnion are the three big players. Requesting a revised report every four months will empower you to catch errors early on, thereby allowing you to investigate and request erroneous information be removed. If you are not aware of these negative items, you can do little to repair them.

• Tip Number 2:
Dispute negative items on your reports. Federal laws dictate any negative items on your credit reports that cannot be substantiated or verified within a 30 to 45 day window of being disputed, the item must be removed. If for any reason in the chain of verification the process fails to complete, you may then insist its immediate removal.
Roughly 40% of all disputes are not verified!

• Tip Number 3:
If you have active credit cards, a few sacrifices may be required to pay the balances down to either a zero balance or perhaps a lower balance. The second most important variable for computing your credit score is how much of your available credit is being used. If your credit cards are maxed out and you make only the interest payments - even if these payments are made on time - it can still reflect negatively on your credit report. Keep your credit card balances at around 30% of the available limits and pay the balances in full each month. This is a great way to repair bad credit scores.

• Tip Number 4:
Ensure your monthly payments for credit cards, bank loans, mortgages, utilities and others are made on time each month. This is by far the most important variable in the algorithm that calculates your scores. The best way to ensure you're able to do this is to not extend yourself into situations that will prevent on time payments. One single late payment can drop your credit report score by 100 points or more! It seems incredible, but it's true. The fact that a negative mark is so easy to acquire should tell you how important this is. Ensure timely payments are made as part of your efforts to repair and then maintain your credit scores.

• Tip Number 5:
Live below your means! If you cannot afford it, don't buy it. It is unwise to go into debt for unnecessary extravagances such as big screen televisions. Save your money and then pay cash.

Repairing your bad credit can certainly enhance your abilities to live the lifestyle you desire. You must be proactive, patient and have a solid plan. Protect your credit rating! This is one of the most important as
pects of survival in a capitalist society such as the U.S. Begin your efforts to repair your credit scores today.

There are many simple ways to repair bad credit. Everyone has had at least a few damaging accounts within their credit reports. It's difficult to not have ever experienced a blemish. Life happens and we must react accordingly. A temporary rating setback is common for nearly everyone. The key is to not stress too much about it. Just as your credit scores can be damaged easily, they may also be repair
By : Chane S

Tips to Repair Credit Need-to-Know Credit Repair Tips

Tips to Repair Credit
Need-to-Know Credit Repair Tips

A less-than-perfect credit score is common today. Missing a single payment can drop your score by as much as 100 points! Fortunately, learning credit repair is possible for anyone willing to pick up a few new techniques. It’s a painful fact that credit scores slip quickly, but they can rise just as quickly... if you follow the tips outlined below.

Tip One: Lower Credit Card Balances

To calculate your credit score, the bureaus compare the difference between what you have available and what you’re actually using. If your credit is at its limit, or even close to that limit, then it’s time to start paying off more than just the interest every month. Take some time to consider how you can reduce your spending, then use that money to reduce the principle on your credit. At the most you should have 30% in-use on any given card at any time. Creditors like people who have credit available; it’s proof that you’re a responsible consumer.


Tip Two: Don’t Let Old Cards Gather Dust


Long-term credit is better-credit; at least as far as your credit score is concerned. If you have older, valid credit accounts gathering dust, break them out and use them! Charge (though no more than the 30% mentioned above) something to that account, then pay it off well within the due-date timeframe. That way, the credit bureaus show activity that makes you look like a well-established and valued consumer as well.


Tip Three: Dispute Black Marks

Per Federal regulation, each of the three major credit bureaus (Experian, Equifax and TransUnion) are required to provide a free copy of your credit report on request, once a year. Go to a different bureau every four months and request a copy; use it to stay knowledgeable about your credit and your specific circumstances.

Go through each report when you receive it and dispute every single black mark on it. Those same regulations allow you to dispute any negative claim on your report. By disputing it, you’re forcing the bureau to verify the claim. Because the bureau is selling your information for profit, it becomes the bureau’s responsibility to make that verification and ensure that it’s correct.

Law requires the bureau to verify the disputed claim in a reasonable amount of time: 30 to 45 days. If they don’t, they must remove it from your report. As a general rule of thumb, 40% of the disputes made aren’t verified within that timeframe. This point is the single most powerful tool in your arsenal against bad credit. Don’t hesitate to use it, and use it often! Submit your disputes by certified mail at the busiest times of the year, and you may join that 40%.

These tips are just a few of the many options available to you to repair your credit. It takes attention to detail, steadfast determination, and no small amount of patience to make this work, but it can be done. Repairing your credit is your legal right, and something that everyone should do on a regular basis.
By ; Chane S

How Can I Repair My Credit Report When I Don't Understand It?

How Can I Repair My Credit Report When I Don't Understand It?
Repairing bad credit can seem like a slow and time consuming process. Patience and knowledge of how it didn't happen overnight is required. Understanding the credit system and how your credit reports are perceived through the eyes of creditors is crucial when you begin this process of improving your scores. Unfortunately, there are millions of Americans who learn too late just how the credit system works. Believe me - they end up paying the price for this lack of knowledge.

When a consumer asks the question, "How do you repair bad credit?" it's often after they've been denied financing for their dream home and then discover it's too late. Their income is sufficient and they're good people who deserve the opportunity to live the American dream. Unfortunately, their low credit scores are proving to be a major setback. It's only after leaving a car dealership or their bank after having been denied they realize their scores are too low. Either way, it's traumatic and heartbreaking. It prevents us from living the life we want to live.

The good news is that regardless of how bad your situation is, there are many ways to repair your credit. The first step is contacting the three major credit bureaus - Equifax, Experian and TransUnion. Request a copy of your credit report as well as your FICO scores so that you have a clear snapshot of where you are and can measure your progress as you move through this process.

Once you've received your credit reports, you'll want to ensure the information is accurate. Nearly 79% of all credit reports include errors. These errors can mean the difference of hundreds of thousand of dollars in interest. It's then you realize how serious this is.

Look for any negative accounts on your credit report that are inaccurate. If you are not 100% certain of an account's accuracy, highlight them. Any uncertainty or questions in your mind of whether they belong on your report, request an investigation. Include these items in a dispute letter to the credit bureau that is reporting the account.

Give the credit bureaus ample time to conduct their investigations. According to the FTC, thirty days is sufficient. Once you receive the results of the investigation, review your credit report again to what's been removed. If there are any items that have been verified, you can then forward a procedural request to determine what methods were used to verify the information. You will want to continue this process until you have achieved the desired results.

This is only one method of credit repair and there are many more. Learning the steps to repair bad credit is a must for anyone suffering from a bad credit rating but wishes to improve it. After all, your credit rating is essential to your financial well-being and you should be willing to fight for it.
By : Chane S