Guide to A Fast and Easy Guide To Credit Repair

Inspecting Your Credit Reports:

If you are paying attention to your credit report for the first time, or haven't done so in over a year - it may be a good idea to pull all three credit reports and credit scores.

I recommend: If you are paying attention to your credit report for the first time, or haven’t done so in over a year - it may be a good idea to pull all three credit reports and credit scores.

You can get a free credit report at www.annualcreditreport.com (scores are extra)
If you find that doesn’t work and you want to pay for your reports, www.myfico.com  has the most accurate credit reports.

While going over your credit reports you want to pay special attention to the following details:

• Your personal information i.e. name, address, social security numbers
• Your account payment history. Check for late pays and/or collection accounts.
• Accounts you don’t recognize.
• Make sure your credit limits & balances are both accurate. If your credit limit is not showing, it will appear as though you are maxed out and your credit score will suffer as a result.

I recommend you go over every detail of your credit report. Make notation of anything you don’t think is accurate, or don’t recognize.

Creating Your Credit Repair Game Plan:

Now that you've inspected your credit report and documented any negative or unfamiliar information - it's time to start the credit repair process.

I recommend: I recommend you divide the questionable items in two sections as this will help you determine the most appropriate and safest method of turning the negatives, into positives.

1) Debts within your state’s statute of limitations.
2) Debts outside your state’s statue of limitations

This could be the single most useful bit of information to you for successful credit repair. If you don’t know your states statutes, you can check them here - statute of limitations

What the statute of limitations means to you. Beyond the statute of limitations a creditor has no legal recourse what so ever to collect the debt.

They cannot sue you, garnish your wages or put liens on your property. If your debts are within the state statute they can do any, or all of the above.

To calculate whether your debts are near the statute of limitations…the clock starts 30 days from the day you made your last payment. For example; If your last payment was January 1st. 2000 - the clock would begin Feb 1st. 2000

When to Dispute Negative Information & When to Settle:

Knowing when to dispute debts and when to settle is critical in improving your credit score, while avoiding any chance of getting yourself sued.

I recommend: 
I. Debts within the statute: You now know if a debt is well within your state’s statute, creditors have the right to take legal recourse. This means you want to proceed with caution. Disputing a debt within the Statute could initiate an unwanted lawsuit.

If you have the financial means; you may want to settle these debts instead of disputing. If you’re nearing the statute, you have a good chance of a “pay for deletion.” This means the creditor will agree, in writing to delete the negative trade line entirely from your credit report in exchange for payment.

This works because collectors know the statute is drawing near and their chances of collecting are next to nothing.

II. Debts past the statute: If a debt is past the statute of limitations, you have a lot more options available to you. These are debts I would dispute since you have no fear of legal recourse.

The FCRA states that you, as a consumer have the right to question anything you feel in inaccurate or outdated on your credit report. The credit bureaus, and/or creditors have 30 days to prove the validity of the debt. If they can’t, it must be removed, or corrected.

Debts old enough to be past the statute of limitations are often times lost, stored or too much work to verify in a 30 day time frame and your chances of having it removed are very good.

Creating & Maintaining the Perfect Credit Profile:

While it happens all the time, it's not always realistic to expect every item to be removed from your credit report. But if you've removed a couple items and perhaps settled a couple, then you should be in well enough shape to begin establishing new credit.

I recommend: Nobody really knows what the formula for the “perfect credit profile” is, but we’ve found that the strongest credit scores consist of the following:

• 3 to 5 revolving credit cards (starting with a secured card works fine)
• A Mortgage Loan
• An installment account
• All should be a minimum of 6 months old, 2 years is preferable

If you’re attempting to re-establish new credit from square one, you may want to start with a gas card. If you find you’re denied, then start with a secured credit card; most banks offer them.Once you establish your first card, use it lightly. Fill your gas tank, buy lunch etc - just make sure you never exceed 30% of your available credit line.

Once you’ve made timely payments for a few months, apply for a second.

Quick Tips for Credit Repair & Managing Your Credit:

Here are some quit tips and guidelines for maintaining your credit profile.

I recommend: 

• Debts within the Statute of limitations - consider paying for deletion
• If you own property, be aware disputing debts may cause creditors to seek liens
• Any negotiations with creditors should be done in writing
• Send all disputes via certified mail
• Pay your credit cards by the Closing Date, not the due dates
• Spread your credit card balances evenly across your credit cards
• Never exceed 30% of your available credit
• Do not pay collectors with checks or credit cards. Use Money Orders.
• Married Couples may want to consider keeping credit files separate
• Check your credit report at least quarterly.
• Look for suspicious activity on bank statements. That’s where most theft appears
• Apply for credit sparingly. Inquiries hurt your credit score