Archive for December 25th, 2008
Dec
25
In Search of the True Credit Repair Professional
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Jim Kemish asked:
Now is the Time for Credit Repair
The quality of your credit has never been as important as it is today. Lenders have tightened their guidelines and interest rates are now determined by new Risk-Based Pricing models; the lower your credit score, the higher your rate, and every single point can make a difference. People everywhere are turning to credit repair professionals to help them clean up their credit reports and optimize their credit scores.
The Importance of Professional Help
There is a good reason that so many people are reaching out for credit repair help. There was a time when it was enough if you paid your bills on schedule. Those days are over. The advent of the complicated FICO credit scoring model has made a science of credit score optimization, while the complexity of the credit reporting system has made it more difficult than ever to identify and correct errors.
How to Find the True Credit Repair Pro
Credit repair is no longer a simple matter of spotting an error on your credit report and disputing it with the offending credit bureau. A working knowledge of the Fair Credit Reporting Act is a bare minimum requirement, while your credit score is dependent on many subtle factors, most of which have nothing to do with your ability to make your payments on time. It’s a new world and the right help can make all the difference. Here are the essential qualifications to look for in a credit repair professional.
Knowledge of the Laws
A credit repair professional has an intimate knowledge of the laws that govern all of the participants in the credit reporting system. The credit bureaus are bound by the Fair Credit Reporting Act, collectors are governed by the Fair Debt Collection Practices Act, and state statutes of limitation will contribute significantly to the negotiability of collections.
Familiarity with Lender Remedies
Truly effective credit repair often must look beyond the credit bureaus and include lender cures and rehabilitation opportunities. Many lenders offer attractive programs that can get you back on track and even eliminate bad marks from your credit report. The credit repair professional will be able to guide you through the process of approaching creditors about these opportunities as appropriate. This multi-dimensional approach will insure that you get the best possible results.
An Understanding of the FICO Scoring Model
There are many variables involved in the process of credit score optimization, and everything matters; payment history, account balances and usage, age of accounts, account types and even the mix of accounts. A credit repair professional has in-depth knowledge of the FICO scoring model and will provide you with everything you need to know to manage the content of your credit report, strike the proper balance, and get the most out of your credit score.
Help With Rebuilding Credit
It is not unusual, after a period of financial stress, to have little or no open credit. Your credit scores are based on both the positive and the negative information on your credit reports. Effective credit repair must address both parts of the equation simultaneously. To focus only on removing erroneous derogatory information from your credit report will leave half of your credit repair potential untapped. A credit repair professional will help you rebuild your credit and manage your new debt for the best possible credit score results.
Putting it All Together
The genuine credit repair professional will address all aspects of your credit to insure that you get the best possible results. Everything necessary will be done to clean up your credit reports, improve your credit scores, rebuild your credit, and make you as lender-ready as you can be. In selecting a credit repair service make sure that their program covers every base. And trust yourself. Pick up the phone and interview your prospective choices before signing up. Write down a list of questions and ask away. Your credit is too important not to take the time to make the right choice. Good luck! Copyright © 2008 James W. Kemish. All Content. All Rights Reserved.
Now is the Time for Credit Repair
The quality of your credit has never been as important as it is today. Lenders have tightened their guidelines and interest rates are now determined by new Risk-Based Pricing models; the lower your credit score, the higher your rate, and every single point can make a difference. People everywhere are turning to credit repair professionals to help them clean up their credit reports and optimize their credit scores.
The Importance of Professional Help
There is a good reason that so many people are reaching out for credit repair help. There was a time when it was enough if you paid your bills on schedule. Those days are over. The advent of the complicated FICO credit scoring model has made a science of credit score optimization, while the complexity of the credit reporting system has made it more difficult than ever to identify and correct errors.
How to Find the True Credit Repair Pro
Credit repair is no longer a simple matter of spotting an error on your credit report and disputing it with the offending credit bureau. A working knowledge of the Fair Credit Reporting Act is a bare minimum requirement, while your credit score is dependent on many subtle factors, most of which have nothing to do with your ability to make your payments on time. It’s a new world and the right help can make all the difference. Here are the essential qualifications to look for in a credit repair professional.
Knowledge of the Laws
A credit repair professional has an intimate knowledge of the laws that govern all of the participants in the credit reporting system. The credit bureaus are bound by the Fair Credit Reporting Act, collectors are governed by the Fair Debt Collection Practices Act, and state statutes of limitation will contribute significantly to the negotiability of collections.
Familiarity with Lender Remedies
Truly effective credit repair often must look beyond the credit bureaus and include lender cures and rehabilitation opportunities. Many lenders offer attractive programs that can get you back on track and even eliminate bad marks from your credit report. The credit repair professional will be able to guide you through the process of approaching creditors about these opportunities as appropriate. This multi-dimensional approach will insure that you get the best possible results.
An Understanding of the FICO Scoring Model
There are many variables involved in the process of credit score optimization, and everything matters; payment history, account balances and usage, age of accounts, account types and even the mix of accounts. A credit repair professional has in-depth knowledge of the FICO scoring model and will provide you with everything you need to know to manage the content of your credit report, strike the proper balance, and get the most out of your credit score.
Help With Rebuilding Credit
It is not unusual, after a period of financial stress, to have little or no open credit. Your credit scores are based on both the positive and the negative information on your credit reports. Effective credit repair must address both parts of the equation simultaneously. To focus only on removing erroneous derogatory information from your credit report will leave half of your credit repair potential untapped. A credit repair professional will help you rebuild your credit and manage your new debt for the best possible credit score results.
Putting it All Together
The genuine credit repair professional will address all aspects of your credit to insure that you get the best possible results. Everything necessary will be done to clean up your credit reports, improve your credit scores, rebuild your credit, and make you as lender-ready as you can be. In selecting a credit repair service make sure that their program covers every base. And trust yourself. Pick up the phone and interview your prospective choices before signing up. Write down a list of questions and ask away. Your credit is too important not to take the time to make the right choice. Good luck! Copyright © 2008 James W. Kemish. All Content. All Rights Reserved.
Dec
25
Building New Credit for Credit Repair Success
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Ian Webber asked:
Build New Credit Now
The most common credit repair mistake people make is putting off building new credit. If bad financial times have left you without open accounts you must start the rebuilding process now. No matter how successful you are in correcting derogatory items on your credit report if you do not have any open accounts your credit score will not get off the ground. Your credit score is based on both the positive and the negative information on your credit reports. Removing the negative is essential, but without open accounts in good standing the credit scoring formula has nothing to grade you on.
No Excuse for Delay
The logic most people apply in delaying the opening of new accounts as part of a credit repair program is the belief that it would be better to wait. No one wants to get denied. The problem with postponing the task of opening new credit is that it takes time for the new accounts to be an asset. The first few months your new accounts are open will be a drag on your scores. It is best to get started today and to let those new accounts become seasoned. Your credit repair efforts can be very satisfying if you do it right.
Get the Right Type of Credit
If the quality of your credit is not sufficient to be approved for regular credit cards, just get secured cards, they are every bit as valuable for your credit repair efforts. If you are rebuilding your credit from scratch you should get two new secured cards. While we are on the subject it is worth mentioning that not all types of credit are equally beneficial. Focus on building your credit with MasterCard, Visa, American Express, and Discover. Avoid store cards and consumer credit like furniture store loans at all costs when your credit repair project is getting underway. These forms of credit are of questionable benefit and may even depress the scores of those with little credit depth.
Managing Your New Credit
Once you have opened your new credit cards you can pump up your credit repair efforts significantly or you can become your own worst enemy. These new little credit cards can easily make a difference of one hundred points in your scores, in either direction, depending on how you manage them. The FICO scoring formula to a surprising extent hinges on the balances you maintain on your cards. Specifically FICO recognizes card usage in 20% increments. It is handy to be aware that if you want the largest credit repair benefit you should use less than 20% of your available limit. And if you max out one of your new cards you can expect a precipitous breathtaking drop in your scores. If this should happen to you, here is a bit of good news. All you need to do is pay your balances back down again and your score will pop right back up, just as quickly as the creditor reports the new balance to the credit bureaus.
Credit Repair and Installment Debt
Generally speaking, in the long term it is very good for your credit repair efforts to have a balanced mix of credit types. As mentioned above store cards and consumer debt, such as furniture store loans are the exception; if you are making a credit repair effort I suggest you steer clear of these debt types altogether. Once your credit is well established you can feel free to use consumer debt and enjoy the discounts that often come with these new accounts. Automobile loans and mortgages are a healthy counterpoint to well managed revolving debt. From a credit repair perspective both of these credit types should be part of a long term credit building strategy. Unlike revolving debt, which can influence your scores dramatically from month to month in either direction based on your balances, the real impact of these installment loans builds over time as the FICO scoring model give you credit for longevity.
Get Some Credit Repair Help
There are a lot of little details that can make a significant difference in your credit repair success. Unfortunately, not all of these details are a matter of common sense. You need to study up a bit. The credit reporting system and the FICO credit scoring model have evolved into densely complex systems. It is no longer enough to just pay your bills on time and hope for the best. It is not a perfect world and you need to look out for yourself, and it may take some work. Buy a book on credit repair or contact a legitimate credit repair service to light the path for you. You can do it. Good Luck!
Copyright © 2008 Ian Webber. All Content. All Rights Reserved.
Build New Credit Now
The most common credit repair mistake people make is putting off building new credit. If bad financial times have left you without open accounts you must start the rebuilding process now. No matter how successful you are in correcting derogatory items on your credit report if you do not have any open accounts your credit score will not get off the ground. Your credit score is based on both the positive and the negative information on your credit reports. Removing the negative is essential, but without open accounts in good standing the credit scoring formula has nothing to grade you on.
No Excuse for Delay
The logic most people apply in delaying the opening of new accounts as part of a credit repair program is the belief that it would be better to wait. No one wants to get denied. The problem with postponing the task of opening new credit is that it takes time for the new accounts to be an asset. The first few months your new accounts are open will be a drag on your scores. It is best to get started today and to let those new accounts become seasoned. Your credit repair efforts can be very satisfying if you do it right.
Get the Right Type of Credit
If the quality of your credit is not sufficient to be approved for regular credit cards, just get secured cards, they are every bit as valuable for your credit repair efforts. If you are rebuilding your credit from scratch you should get two new secured cards. While we are on the subject it is worth mentioning that not all types of credit are equally beneficial. Focus on building your credit with MasterCard, Visa, American Express, and Discover. Avoid store cards and consumer credit like furniture store loans at all costs when your credit repair project is getting underway. These forms of credit are of questionable benefit and may even depress the scores of those with little credit depth.
Managing Your New Credit
Once you have opened your new credit cards you can pump up your credit repair efforts significantly or you can become your own worst enemy. These new little credit cards can easily make a difference of one hundred points in your scores, in either direction, depending on how you manage them. The FICO scoring formula to a surprising extent hinges on the balances you maintain on your cards. Specifically FICO recognizes card usage in 20% increments. It is handy to be aware that if you want the largest credit repair benefit you should use less than 20% of your available limit. And if you max out one of your new cards you can expect a precipitous breathtaking drop in your scores. If this should happen to you, here is a bit of good news. All you need to do is pay your balances back down again and your score will pop right back up, just as quickly as the creditor reports the new balance to the credit bureaus.
Credit Repair and Installment Debt
Generally speaking, in the long term it is very good for your credit repair efforts to have a balanced mix of credit types. As mentioned above store cards and consumer debt, such as furniture store loans are the exception; if you are making a credit repair effort I suggest you steer clear of these debt types altogether. Once your credit is well established you can feel free to use consumer debt and enjoy the discounts that often come with these new accounts. Automobile loans and mortgages are a healthy counterpoint to well managed revolving debt. From a credit repair perspective both of these credit types should be part of a long term credit building strategy. Unlike revolving debt, which can influence your scores dramatically from month to month in either direction based on your balances, the real impact of these installment loans builds over time as the FICO scoring model give you credit for longevity.
Get Some Credit Repair Help
There are a lot of little details that can make a significant difference in your credit repair success. Unfortunately, not all of these details are a matter of common sense. You need to study up a bit. The credit reporting system and the FICO credit scoring model have evolved into densely complex systems. It is no longer enough to just pay your bills on time and hope for the best. It is not a perfect world and you need to look out for yourself, and it may take some work. Buy a book on credit repair or contact a legitimate credit repair service to light the path for you. You can do it. Good Luck!
Copyright © 2008 Ian Webber. All Content. All Rights Reserved.