Credit Repair Secrets #1

Credit Repair Secrets #2

Secret #31

Being refused credit by a major lender can be a double negative. First, you’ll have to go elsewhere for your loan which means an additional credit application being listed on your credit report.

And secondly, having a credit inquiry on your report without a corresponding loan balance will make others think that you’ve been turned down by a major lender – a very bad black mark.

Secret #32

Should you fall on hard times and know that you can’t keep all your accounts current, it’s better from a credit standpoint to keep all your payments less than 30 days late than allow one or two to lapse into the dreaded over 60 day category.

Secret #33
Should your total debt load climb too high, it will have a negative effect on your credit rating similar to several late payments.

Secret #34

When you submit correction requests to a credit reporting agency, always make multiple extra file copies for you records. In some cases you’ll have to send two copies before you get the result you are seeking. Any disputes or appeals will require more copies

You might also want to consider sending copies of your credit report with the relevant entries either highlighted in yellow or circled in red ink. Also send any supporting documentation but once again make multiple copies of everything you send. Any attempt to get copies back from a credit agency will probably prove fruitless.

Secret #35

If you obtained your credit reports in any other way than directly from the issuing agency, you’ll have to get a direct copy before you challenge any of the items listed. Combined reports from independent third-party supplies are not acceptable to the agencies.

Secret #36

If you can afford the expense and you have access to the Internet, you should first attempt to correct any negative entries through the firm’s online service. It costs more than sending in forms by mail but for the money you get a better shot at resolving the problem and the process happens much more quickly.

Secret #37

When you challenge a negative entry be very sure to provide them with as much information as you can. If you leave out even the smallest detail you can bet that they’ll turn you down based on the missing information. Wait until you’ve got all the data at hand before starting the process.

Secret #38

Never attempt to correct a problem for someone else unless they sign the paperwork or you sign it and have a power of attorney. Otherwise your challenge will be ignored.

Because there are many credit reporting outfits out there who make a practice of swamping the credit reporting agencies with frivolous challenges, the agencies are eager to throw out anything that doesn’t seem complete and official in every way.

Secret #39

If the creditor has made a mistake that appears in your credit record, you might want to think about approaching the creditor directly yourself. Get a letter from them admitting the mistake and requesting that the credit bureau correct the record.

Then you can send a copy of the letter directly to the reporting agency which usually works quite well provided the letter has a phone number and contact name.

Secret #40

If you can now afford to pay off an old debt that includes past late payments, it’s not out of the question to ask the creditor to eliminate the report entirely from your credit record. You offer to pay a loan they expected to never collect, and in return they agree to wipe the slate clean. Again, get their agreement in writing before parting with your hard-earned cash.

Secret #41

When talking to a creditor customer representative, don’t forget that most of these people change jobs very often. If you can’t get the result you seek, always insist on speaking with a supervisor. Supervisors are usually authorized to make changes lower ranking employees might even be aware of. Most supervisors are given standard offers they can make without any other authorization.

Secret #42

Here’s a secret that I’ve experienced myself. When I obtained copies of my credit reports I was delighted to find that an account that I had paid late several times didn’t appear on any of my reports at all!

I assumed that it would be there to damage my credit history but somehow the creditor never reported the transactions to the credit agencies. This isn’t all that rare – it happens quite often.

Unfortunately, if an item doesn’t appear now that’s no guarantee that it won’t pop up at a later date. The entry may have been entered under the wrong social security number or name. The mistake may be corrected later and poof – it magically appears on your record just when you were convinced it was gone.

Secret #43

Plenty of routine financial transactions never appear on credit records at all. Your dealings with your landlord will probably never find their way onto your file as landlords tend to use a network of their own tenant records.

Personal or family loans, orthodontists, florists, laundries and dry cleaners also normally don’t bother with credit agencies. Utility companies are another industry that don’t usually make much use of credit reporting agencies.

Secret #44

Before applying for a mortgage you might want to consider having an account that’s not currently on your report added. Don’t be surprised if they charge you a fee if the new account holder isn’t a member of their service.

Secret #45

If your credit record shows a good payment record followed by a brief period of late payments followed by another good period, potential creditors may accept an excuse like a temporary health problem or an illness in the family.

Secret #46

When considering the closing of accounts, potential creditors pay more attention to accounts that have been open the longest. If you close only newer accounts you may be doing yourself a favor (provided there aren’t any late payments recorded in the accounts you close).

Secret #47

If you run into financial problems there are two things you’ll want to keep in mind. The most important item on your credit report is your mortgage payment. Always keep that current. If you must make late payments, make them in other accounts.

Then spread the late payments around making sure that no payment is over 60 days late. Late payments under 60 days in arrears are less damaging than the longer 60 and 90 day versions.

Then when you can catch up on your payments, call your creditors and request that they “re-age” those payments so they don’t show as being late.

Secret #48

If your credit history contains only your mortgage payment and nothing else, some creditors may suspect that you filed for bankruptcy some years ago. Having a single credit card or other credit account open will change the entire complexion of your credit reputation.

Secret #49

If you’ve had financial problems in the past it will do you little good to clean up your credit if you don’t also change your spending habits. If you don’t mend your ways you’ll just fall into the same spending patterns as before and end up right back in the hole.

Secret #50

If you’re tempted to do business with any kind of debt counseling or debt settlement outfit, always take the time to call your local Better Business Bureau to check up on their reputation. The vast majority of these firms have less than wonderful reputations so always check.

Whichever firm you choose to use, always stick with one inside your home state. Never go out of state as they can fleece you and you’ll have little recourse. Your state probably has some sort of licensing system that includes a complaint system you can use should you feel cheated.

Secret #51

Some of the people you may end up talking to have hidden agendas and will steer you into or out of particular situations. Never rely on a bankruptcy attorney for advice on anything other than the actual bankruptcy court procedure.

They will almost always steer you toward bankruptcy. When you call a debt counseling firm you may get the exact opposite advice as many of these outfits are actually funded by major retailers. They will paint a very gloomy picture of bankruptcy as they’re paid to force debtors into repayment plans that protect their retail bosses from having their accounts wiped out by the bankruptcy courts.

Don’t be fooled into believing that the term “non-profit” means anything. Before you deal with a firm always determine who is paying their bills. Then you’ll know which way they’re biased and can use them accordingly.

Secret #52

If you credit is relatively good you should carefully avoid using any kind of credit counseling firm. They can trash an otherwise sound credit history.

But if your record contains several blemishes already, working with a credit counseling firm may not be all that bad an idea, particularly if you’re having problems budgeting your money.

Secret #53

Before calling a credit agency decide exactly what the purpose of the call is and precisely what your goal will be. Make sure you have all the relevant paperwork right in front of you.

When you’re connected to an actual breathing human being, immediately ask their name and direct contact phone number. Be polite, be positive but be pushy. Never admit that you’re having any kind of financial problem. If you do you can expect them to raise your interest rates to the moon and come after you with a vengeance.

Make your request as clearly as you can. If they give in you’re home free. If they won’t or can’t accommodate you - ask to speak to a supervisor. If they offer to have one call back – accept their offer and hang up. Make sure you stay near your phone for the return call.

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