Credit Repair | Credit Card Debt Relief Secrets

Credit Repair Secrets

First, ignore all the advertising those credit repair outfits broadcast. They will promise to work miracles but in the end all they do for sure is cash your check.

Start out by creating a phone and mail log. It should include the date, time, name of person contacted (both first and last), their department, and have a generous area for notes as each call usually involves unique factors.

Then use the log very carefully. This is necessary as you may end up in court where the other side will try to convince the court that everything you say is "hearsay" which means the court won't act on the information you provide.

Immediately after each call, stop and fill out your log while the information is still fresh in your mind. Studies have shown that our memory can lose a third of it's content in only 12 hours.

Get it down on paper as quickly as possible.

During any phone calls be sure to be calm and polite and at the same time persistent. Don't shout. Don't threaten. Don't argue. It won’t work - except against you. If someone insists that a form or paper doesn't exist and you have it in your hand calmly say "I have a copy right here in my hand - give me your fax number and I'll send it to you"

Most issuers record and monitor their incoming phone calls and tag those recordings with the caller ID phone number of the caller. Keep this in mind also. Always call from home if you can.

If you can, it may be best if you can get the creditor to notify the credit bureau that the information was in error and should be removed. Or if the creditor has admitted that they made a mistake, be sure they reported it to the bureaus. Since they have no incentive to report it, it often isn't reported at all no matter what they promised you. If you remind them, it increases the odds that they will follow through and do what you ask.

Under the law, you must notify the bureaus by certified mail with return receipt. Any other form of notification is often ignored. Keep this in mind and when it comes time to make that pivotal notification, do it properly.

Credit bureaus are required by law to correct any errors. Unfortunately, bank credit files are not subject to the same laws. You'll have to deal with them separately.

If a creditor has made a mistake and reported it to the bureaus where it resides as a negative mark against your credit record, it may be best to contact the creditor directly. If they ignore your complaints and refuse to act you'll have to act yourself.

Send a dispute letter directly to the creditor with a certified copy going directly to the three big credit bureaus. The fact that you sent the original letter directly to the creditor will increase the status of the complaint when it's processed by the bureaus.

If you can convince the creditor that they've made a serious mistake and that it's harmed your credit record and your life, they will probably act to rectify the situation - it's not guaranteed of course but we're playing the odds here.

Have them send an official notification (ask that they send a UDF form - Universal Data Form to the credit bureaus) to the big three credit bureaus with a copy going to you. You might need these copies if the credit bureaus later refuse to correct your record.

If the creditor admits to an error but insists that the credit bureaus were notified and refuses to send another, (a common trick) simply ask for a confirmation of that fact in the form of a letter which you can then attach to your complaint when you send it to the credit bureaus.

Always remember that you can go up the chain of command if you can't get satisfaction. You can ask to speak to a supervisor or you could ask for "someone who can make a decision on this".

Any meaningful communication you have should be verified with a follow up letter you can use later. It's important to have the first and last name of any person you speak to as the employee roll over in these companies can be quite high.

You may be about to get some data changed only to discover that the individual you have been speaking with has resigned (or been fired) and you're left to start all over again. Having a full record you can quote will help you bring the new guy up to speed on your problem.

When a breakthrough does occur, immediately ask for a confirmation letter. Don't wait as they may change their position at any time. When you write to them always address your letter to the individual you talked to by name. It's much easier to ignore letters addressed to "To whom it may concern".

If two or more cards have raised your interest rates to unusual levels, you might want to send any error correction letters/forms to the credit card issuers. Then follow-up several weeks later to see if they can lower your rate in view of the new more positive information.

Here is a new tactic that has been used with considerable success - if you have the nerve. If your creditor and/or the credit bureaus steadfastly refuse to correct the problem that's dragging down your credit rating, you can threaten to reveal their abusive behavior on a web site.

Create a web site with a title that includes the names of the creditors and/or credit bureaus in question. List the details of your complaint but you'll be sued if you should go beyond a strictly factual list of events as they actually unfolded.

This is not your opportunity to take cheap shots or list your opinion of their underhanded ways. Just tell the truth. (when someone shouted "Give 'em hell Harry" at President Truman he replied "No, I just tell the truth and they think its Hell!".) The facts will speak for themselves and will paint a damaging enough picture.

Or you might want to find a consumer affairs reporter at a local paper. Every town has a TV station that has an investigative reporter who chases down abusive firms for their viewers. If the facts of your situation are disgusting enough, they might do a story on you. You might even end up by being interviewed on live TV! Whatever the outcome you can bet the credit bureaus won't enjoy the show. When the red-hot spotlight of the media falls on even the most uncaring corporate criminals - they will very quickly cave in and take whatever action is necessary to eliminate the media heat.

One very persistent 83 year old lady sent me an interesting tactic lately. She visited her local library and did a bit of research. She was able to get the official address of the top executives at the creditor firm and credit bureaus.

When she prepared each complaint letter, she sent a certified return receipt copy to each executive. The letters were sent by certified mail and she designated them “Addressee signature only” which means only the executive themselves could sign for the letter! I guess the executives got tired of signing for her letters and quickly corrected her problem.

If these tactics sound a little too hardcore, you have to remember that you're dealing with powerful bureaucracies that don't give a damn about you and your problem. It's the squeaky wheel that gets the grease and you'll have to become an extremely squeaky wheel if you're to get the attention you deserve.