Quick Fixs – How You Can Get Faster Results

As you can see, if they use the lowest score, 630, or the highest score, 680, the difference in monthly payments can be a $175 per month (that’s $2100 per year). So 50 points can make a big difference.

Many negative items on your credit report can represent up to 20-25 points. So if you get 2-3 items removed, that can mean up to a 75 point increase in your credit score. That can make a huge impact on your credit cost.

So our goal is to get at least a 75 point increase in your credit score in the next 30 days, and it is a very realistic goal if you follow our suggestions to the letter. Starting a dialog with any creditor can work to your advantage in cleaning up your credit report. Believe it or not, many creditors want to do whatever they can to get you even with them, that means they may negotiate everything from the amount of money owed, to the terms of payment.

Review Information On Each Of Your Credit Reports

The first thing you want to do is make copies of each credit report since we are going to use a copy to send with each dispute, keep a copy to track our progress, and use a copy to plan your disputes. So you are going to need at least three copies to start with, and more based on the number of disputes.

Review each credit report and examine each negative item. Rank the items on the following basis:

·         Easy – True wrong or inaccurate information

·         Negotiate – Late payments, payments behind, or collections

·         Not Going Away – Tax liens, bankruptcy, repossessions, foreclosures

Most creditors look at the last 18 months, so that’s where we will concentrate our efforts (although you should dispute any wrong or inaccurate information no matter how old). Review each report, marking the negatives bases on the category above.

Always be polite but firm. Do not get caught up in an emotional or angry dialogue with any creditor or Credit Bureau. Your goal here is to improve your credit score and lower your credit cost.

Once a negative item has been disputed, it normally is removed temporarily until the investigation is complete. This is the main reason many credit card repair companies recommend that you challenge everything. But many financing situations can drag on forever, especially mortgages. And if all of your negative disputes reappear during the process, it’s going to have a very negative impact on your request for credit. Denial or  increased cost (higher interest rate) can result.

Start With All The Items Marked Easy

The best way to accelerate your results is to contact the creditor directly if at all possible. This cuts out the time element of having the Credit Bureau contact the reporting entity and you can get a fax or document that clears the negative entry. You provide this document to the Credit Bureau and ask for the removal. You can also do the dispute request online to speed up the process. This can remove negative items in as little as one week.

Since most of the items in this category should be a matter of verifying that information is inaccurate or out and out wrong, you should have immediate results. And keep in mind that about 40% or more credit reports have inaccurate information so most people can get a quick increase just by eliminating this kind of negative.

The Best Way To Negotiate Your Way Out of A Negative Entry

This is where most people fail miserably. Direct contact with the entity is a must when you need to negotiate. Two items you must determine is that the reporting entity will delete and what it will take for them to do so. The best way is the direct approach by asking.

·         Find the person at the company that can make the decision

·         If it was a late payment situation, explain why (medical expenses, payment methods, etc.)

·         If you are behind in payments, find out the amount to bring you up to date

·         If you defaulted on a contract, ask what amount they will need to remove it

Whenever you contact the reporting entity make sure you get any agreement in writing, even if it is just a letter. Always keep in mind that they too want to resolve this account and that will work in your favor.

Late payments can really hurt your credit score but you can talk your way out of them if you present a realistic reason. Unforeseen medical expenses, billing foul ups, out of town, use what ever applies and be earnest in your appeal. Especially if you only have one or two late payments over a long period of time, most times you can get these removed.

If you have a negative that involves being behind (skipped payments, late right now, etc.) your best bet is to offer a flat amount to “catch up”. Any honest effort is usually accepted even if it’s not the entire amount owed.

If you have a default (you never paid the bill in full), find out what they will take to remove the item. If it’s a collection agency they get a portion of the pay off so use that to your advantage. Look at the original amount, not the amount that includes the collection agency’s added on fees. Those fees are normally above the amount that the collection agency has agreed to collect for the client. But be careful to get any agreement in writing (called a deletion letter) and make sure you get a copy mailed to you so it is an original and not a fax. Collection agencies are notorious for trying ever trick in the book to either reinstate the debt or not honor a verbal agreement.

Don't become discouraged if the first person you speak to claims "We don't settle accounts!" This is a canned response used by nearly all collectors and customer service reps in the industry. Collection agencies like to play hardball, no doubt about it. You are going to have to keep moving up the line by asking for a supervisor.

Last ditch efforts are to sue the reporting company – this is dangerous territory for several reasons but can be used in some cases. The downside is the cost (attorney, court, etc.) and the very real possibility that you will lose and then have a judgment against you. The only good thing is the creditor also has to face the same costs and loss. But it may force them to take a settlement for far less than the original amount rather than incur additional costs.

The Not Going Away Soon Items

There are some items like Tax Liens, Bankruptcy, and repossessions that will not go away under the time period is up (most likely 7-10 years but Tax Liens stay until you pay). You can have information added to your file that offers some type of explanation. There are several opinions on the value of these but as long as it’s logical it won’t increase the impact.

If these items are over 18 months old, the impact is lessened. Catastrophic events occur to anyone and many lenders understand this. As long as you can show a turn around point, you can still get credit even after a bankruptcy or repossession (which usually go hand in hand these days). Some creditors even look at this as a positive since you did something about your hopeless situation (and that you can’t claim a Bankruptcy again for 7 years so the risk is reduced).

General Tips For Improving Your Credit Score

Timing is everything when you are applying for credit. If it’s for the short term (car loan, revolving – department store type, big item) you can file a dispute for any or all items and as long as it’s not judged to be frivolous the negatives will be removed temporarily.

Older negative items that have long been forgotten by the filing creditor may go unanswered and therefore be removed. Try and offer valid reason for disputing as to not trip that frivolous trigger.

Any accounts showing as open that have been paid off will increase your score if you can get a letter of payoff. This will then not count toward debt and also give you a boost by showing a paid off account.

Any high interest lenders that show on your account (Beneficial companies, payday loan companies, etc.) should be removed bad or good. This is an indication that at one time you were using high risk lenders.

You can request an audit to show if you were truly late in a payment. This has to made directly to the reporting creditor and they have to show proof of late payments which is difficult to do under most circumstances.

If you have high balances (near or at your limit) on credit card accounts pay them down and request an update from the credit card company. Many recorded balances are outdated and don’t reflect the true balance. You may also be able to consolidate your credit card debt on one new card and be well under your new limit.

If you have established credit with a non-reporting creditor call and ask them to report it. Any positive information about a paid off account or current account can help raise your score.

You do have a right to add your side to the story of any negative item. There are many varied opinions on the value of this but it may help. But make sure the information is realistic and has some value.