Easily one of the most debated and misunderstood topics today. Our credit scores dictate so much of what we’re able to do in today’s world and it’s only going to get worse. It’s no wonder credit repair companies are emerging literally by the day – and consumers are scrambling for ways to learn the facts about credit repair and to best optimize their credit scores.
We’ve been in the credit repair services industry for a long time and never before has it been so confusing for consumers. Your credit plays an important role in the quality of life you’re able to live; and with the current state of the economy it’s vital you have total control of it.
Here’s the problem. Opportunists realize this and are popping up everyday to take advantage consumers with their fast credit repair schemes and self help credit repair books. It’s no wonder the entire credit repair industry has the reputation it does.
So the question is can a consumer with bad credit, effectively repair it and start over? Without a doubt the answer is yes. But you have to understand what credit repair means (at least by our definition). It’s not about quick fixes or these generic credit repair letters. It’s a process! It’s about learning to manage your debt, how to recognize errors on your credit reports and understanding when and how to optimize your credit profile.
When we refer to credit repair, this is the part you read about all over the internet. It’s basically trying to remove the inaccurate, outdated or unverifiable information from your credit report. Keep in mind, no matter what you read, negative items can be removed, but its only a small part of truly managing your credit.
When you look at your credit report and identify the negative items, you want to look at every single detail. Blindly disputing anything negative like most credit repair companies do is not the right way, nor is it legal. But, getting them removed can be legal and easy if there is an error – even if it’s your debt. Why? Because the FCRA entitles you to a fair and accurate credit report. If there is an error, then there’s a good chance the account can be removed.
You want to look for the following:
One the most important of all these factors is the date of last activity. This is important because your strategy will be based on the statute of limitations for your state. If it’s a newer debt, you have to be careful and understand that disputing newer debts could land you in court. In this instance you may want to consider debt negotiation. However, if it’s past the statute of limitations or even near it, your chances of getting it removed are pretty good.
Your goal during the credit repair process doesn’t have to be perfection. A bad account or two is not necessarily a bad thing – you just have to outweigh it with positive trade lines.
For some reason when people begin to work on their credit, their focus becomes removing everything negative. Sure the negatives hurt but it’s only 35 percent of your credit score.
Your open, positive trade lines are a close second at 30 percent; and the good news is that you can completely control this aspect of your credit profile – no matter how bad your credit is.
If you don’t have any open accounts – get a secured credit card. Almost any bank will issue them to you and they count as a positive trade line. From our experience a good number of open, revolving credit cards is anywhere from 3 to 5.
If you are just starting out, whether it’s a regular credit card or a secured credit card - you want to obtain your first one and make timely payments for at least 4 months, then apply for your second one etc.
Be sure to always keep your balances below 25 percent of your available limit. In other words if you have a limit of $1,000.00 do not exceed $250.00
The other big factor is the age of your cards. The biggest mistake I see people make is closing their cards. Its simple math – the older the card, the more it helps you. Close your cards and you lost all that age. If you have a problem spending cut it up, but by all means do not close the accounts.
Credit Repair works but it’s not always about a quick fix. In almost 10 years we haven’t seen a client yet that we couldn’t help achieve their goals. You just have to understand how it works.
We only spoke of 65 percent of what makes up a good credit score in the information above, but hopefully you’re starting to understand that anybody can obtain perfect credit (usually pretty fast too). You just need to realize its more then disputing negative items. It’s a total solution.
If you would like a free Consultation, please use the information below. We’d be glad to show you how we can help. Or visit our credit repair articles section and our credit repair blog.
For more information about our Credit Repair Services: Credit Repair Services
For more information about My Credit Group's credit repair services, or to schedule a free consultation, contact our credit repair consultants today. A fully trained credit planner will call you to discuss whether or not our credit repair services are a good fit for you and your personal needs. [ Contact Us Now ]
To the staff at My Credit Group,
As a senior loan specialist for one of the nations top lenders, being able to deliver top notch services to our clients is paramount. Admittedly, I was hesitant to refer my clients to a credit repair company.
That was two years and several successful loans ago, and I can honestly say that you've handled every aspect of your business with complete professionalism. I've heard nothing but but exceptional
feedback from my clients, and outstanding results in their credit scores.
To anybody considering using a credit repair company, My Credit Group is the only choice in my opinion.
Sincerely,
Eric Atilano - Sr. Loan Specialist
~ Chase Home Loans
