Credit repair does not have to take forever. True, there may be issues that time alone will heal, but there are also many powerful credit repair techniques that can yield quick, satisfying results. Given the current condition of the credit markets you cannot afford to sit back and hope that your credit reports will improve on their own. Every point on your credit score translates into a real financial impact on your life. You must take action. The investment you make in credit repair can pay you back a thousand fold. Become proactive. The sooner you act the sooner you will experience the benefits. Are you ready to take control of your credit life?
A Healthy Dose of Doubt
Do not underestimate the power of credit repair. And do not overestimate the accuracy of the credit reporting system. You should start the process with great optimism. You may have heard that three quarters of all credit reports have errors. But you may not know that errors are even more prevalent on the reports of those who have had genuine credit issues in the past. Look at your reports with a critical eye. Get out your highlighter and go to work. Identify everything that looks even remotely questionable. If you do not recognize it, there is a really good chance that it is a mistake and should be disputed.
The Collector Question
One of the most interesting and potentially beneficial credit repair opportunities can be found in the collection section of your credit report. By law, collectors are required to remove their collection account from your credit report when they sell the account to another collector or give it back to the original creditor. This requirement is rarely complied with, and as a result you may have several collectors reporting the same debt simultaneously. Furthermore, given that many collectors only attempt to collect for six months before giving up and selling, even the most recent collector may be a candidate for dispute.
Negotiate Around Statutes of Limitation
There are few things as important to effective credit repair as an understanding of statutes of limitation (SOL). The SOL determines the time limit that collectors are allowed to enforce collection through the court system. If you find a collection account that is beyond the SOL you are in a position to take control. You should be able to negotiate for pennies on the dollar, or in the case that the collector is unpleasantly aggressive you can make them go away forever by sending a cease communication letter. There are two important things to know about statutes of limitation. First, the SOL is almost always far less than the reporting period limit on the account. And, second, the SOL clock starts with the date of default with the original creditor and is not reset when a new collector takes over. Always check your SOLs.
Refresh for Success
If you do not have any open credit cards you will never realize the full potential of credit repair. The FICO scoring model puts so much emphasis on open revolving accounts that to ignore the opportunity is to seriously handicap your project. If your credit is impaired you may need to get secured cards. This is not a problem. They are inexpensive, easy, and you will not get turned down. Secured cards are the perfect credit repair accessory. Even a small secured card, if managed right, is every bit as potent as a large unsecured card. If you do not have any open cards, get a fresh start and open two today.
Chip Away Today
Your credit card balances have a critical impact on your credit scores. Aside from all of the other things you are doing to get your credit repair project off to a great start if you let your credit card balances approach their limit your progress will languish. Pay those balances down to the best of your ability and your scores will rise as you do so. To truly optimize your credit scores reduce your balances so that you are utilizing less than twenty percent of the limit on the card.
Yelp For Help
Your credit is important. It is time to do whatever is needed to clean up the errors on your reports and sharpen up those scores. If you understand the importance of credit repair, but do not have the time to learn how to do it right you should hire a reputable credit repair service to handle the project for you. A professional will be able to identify all of the opportunities and manage the dispute process on your behalf. Do not delay. Now is the time to take control of your credit life.
Author Resource:-
Ian Webber is a financial consultant and expert in consumer law and credit repair. Ian is a graduate of the London School of Economics and The University of Chicago. Ian consults with one of the leading online credit repair services. For more info see http://www.skybluecredit.com
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