Finding Your New Life With Credit Repair
You do not have to accept a life of bad credit. Credit repair is the smart alternative. Start your new life and leave the past behind.
A Dynamic Process
Credit repair is a dynamic process of taking control of your credit life. If you proceed in a thoughtful and methodical manner you are destined to succeed. And as the credit repair process begins to bear fruit you will see your old life fading away and a new life taking hold; a new life with good credit, financial hope for you and your family, and a bright new outlook.
Seize the Day
Start your credit repair program by building positive credit. Do not wait seven years hoping that your bad credit will fade away before you can get a fresh start; do it now. Secured credit cards are the perfect means of developing sound, healthy new credit. They are a low cost means of getting started and you will not get denied. And more important, these little secured cards are every bit as valuable to your FICO score as larger unsecured cards.
The Right Formula
There are a lot of credit scores available on the web. You can get them from the credit bureaus, and you can get them from a variety of vendors and resellers. Oddly, none of these scores are the same as the ones that lenders look at when they are reviewing a loan application. And in most cases, these scores are not even close to the ones that lenders use. Lenders use FICO scores. FICO is an acronym for Fair Isaac Corp, the creator of the score, and it is their scoring process that matters to your credit repair project.
The Power of Positive Credit
The FICO scoring model generates your real credit score and is based on everything that appears on your credit report. Your credit repair success depends on understanding the importance of positive credit. Negative information can hold your score down, but you must have positive information on your report to demonstrate to Fair Isaac that you are willing and able to make responsible timely payments to your debtors every month. The best way to do this is with credit cards. Get them, use them, and watch your credit repair success take hold. But you must do it right.
Using Your Cards Right
The FICO scoring model is programmed to identify a range of different card usage levels. The more of your available balance you use, the more FICO will lower your score. The rationale behind this is that high balances are statistically connected to a elevated likelihood of default. And since FICO scores are sold by Fair Isaac to lenders to evaluate the potential risk of lending money, the higher your balance the lower your score will be. If you really want to make a good impression on Fair Isaac and be rewarded with a higher score keep your balance under 20 percent of your card limit.
The Credit Repair Attack
Once you have the rebuilding phase of your credit repair program underway, now is the time to attack all of the questionable negative items on your credit report. Do not make the mistake of believing in the infallibility of the credit bureaus. Over three-quarters of all credit reports have mistakes on them. A huge percentage of these mistakes are capable of depressing your credit scores significantly. You must stand up for your rights and prepare for battle. Now is the time to examine every line of your credit report and prepare to send dispute letters to the credit bureaus.
Patience and Simplicity
The dispute process is integral to credit repair and requires both common sense and patience. The credit bureaus will process your dispute requests only reluctantly, so you must expect some resistance. Plan on repeating your request until you are satisfied that they have conducted the proper research. And keep your dispute letters simple. The poor overworked clerks that process these letters must translate your words in just a matter of seconds. If you try to tell your whole life story, they may very well reject your letter completely. Credit repair and simplicity go well together.
Go Ahead and Reach Out
If you do not have the perseverance for the letter writing phase of the credit repair undertaking you might think of hiring a professional credit repair service. They will make sure that the entire job is managed in an organized and effective manner, and will follow through in a timely way, month by month until the job is done!
Copyright © 2008 Edward White. All Content. All Rights Reserved.
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ABOUT THE AUTHOR
Ed White is a credit repair expert and financial consultant. In addition to his own private practice he consults for one of the nation’s leading credit repair services. Ed is a graduate of the University of Pennsylvania and has a degree in economics.