Can You Restore Your Good Credit?

Lesson #38 : Can you restore your good credit?

Can You Restore Your Good Credit? Yes! And you can do it at little or no cost. Fact: You can hire Credit Warriors Inc to repair your credit for you, but at the end of the day you are the best person for the job. The law allows you to request an investigation of information in your file that you dispute as inaccurate, incomplete or questionable. The law also makes demands on creditors about their record keeping requirements. If the Credit Reporting Agencies cannot verify information on your credit report, they must remove it. If a creditor has not kept the records as the law requires, they must remove it. For example, if a credit reporting agency cannot contact a collection agency reporting a collection on your report or they cannot verify the information, then the credit reporting agency must delete the entry. Additionally, if a creditor has failed to keep written and auditable records for the account in question, the creditor must cease the reporting and have the item removed. There is much more to restoring your good credit than removing the negative items. Credit Warriors will teach you the proper way not only to remove negative items, but also how to convert negatives into positives, how to build good credit items, and how to improve your credit scores through knowing what goes into the scores.

The basic strategy to repairing your credit is as follows. A. Get copies of all three of your credit reports and analyze what is on each report. B. Know which items are affecting your scores most, both from a positive and negative standpoint. C. Make a list of all items you consider to be questionable or inaccurate. D. Identify each item in your report that you intend dispute and determine which strategy you will use to remove it. E. Write letters to either the Credit Reporting Agencies or individual creditors. F. Send all letters certified mail and keep detail records. G. Get updated copies after each reporting cycle of all three of your credit reports and review and analyze what is on each report. The Credit Reporting Agencies are not very cooperative, and creditors usually must be forced to remove items. It is not easy to get the job done, but it is possible.

The Credit Report Agencies make money by providing credit reports to lenders, not by spending their time dealing with all the inaccurate and questionable information in their databases. The items listed below are in descending order with the first item being the “most damaging” to your credit.  Bankruptcy  Foreclosures  Repossessions  Loan defaults  Charge-offs  Consumer credit counseling (settlement negotiation)  Court judgments  Collection accounts  Past due payments  Credit inquiries Your goal should be to have a complete deletion of negative items. There is no point in correcting the information in a repossession, foreclosure, charge-off, judgment, collection account or settled past due accounts. These items are negative and changing the information within a negative item will yield no positive results. Negative items must be deleted or not disputed at all. Bankruptcies and foreclosures are the hardest things to get off of your credit report. The reason is they are easy for the Credit Reporting Agencies to verify, and the Courts keep meticulous written records. In a bankruptcy, you will most likely have accounts reporting as “included in bankruptcy.” To have any hope of removing the bankruptcy reporting, you must first get all of the other, ”included in bankruptcy” items deleted.

The Credit Agencies and their Credit Reporting Agencies collect credit history information on individuals and entities. They make money by selling this information to lenders, insurers, employers, landlords, and others seeking to make informed decisions or offers based on what is in the reports. The information in your credit report can determine whether these institutions decide if you are likely to make the payments on a loan, you are a good insurance risk, you would be a good employee, how reliable you are, or what kind of problems you have had in the past. In turn, lending institutions provide the Credit Agencies the credit history information that their files contain. Therefore, the Credit Agencies are an exchange center for credit information in much the same way as the NASDAQ exchange is for stock. Your credit report includes information on your employment, your address, if you have been sued, ever filed for bankruptcy protection, if you have an arrest record, how you pay your bills, and if you use aliases or other identities. The Credit Agencies have information about you regarding: Your Identification and Employment Information. They have your name, aliases, date of birth date, Social Security number, spouse’s name, employment history, home ownership, gross income, and previous addresses.

Reporting creditors show how much credit has been extended to you and how you have paid. Each record will indicate on time payments, past due records, and collection accounts. Your Public Records. They have visibility on bankruptcies, foreclosures, judgments, and tax liens may appear in your report along with arrests and convictions. Record Inquiries. This includes a listing of all institutions that have received a copy of your credit history in the last year for the purposes of extending or collecting credit and those requesting your credit history for employment purposes for the last two years. There are three major Credit Agencies, Equifax, Experian and TransUnion. Reporting to these agencies is normally done monthly. The information comes in electronically, and the agencies accept it as fact. These agencies never check the accuracy of the information when it first arrives and will only attempt to verify the information if you request an investigation. Other than creditors, the Credit Agencies may receive information on you from the Department of Motor Vehicles, the Medical Information Board, the FBI, the IRS, Law Enforcement Agencies, the County Recorder’s Office, and Banking Institutions (check fraud).

Credit Agencies do not rate or express an opinion as to your credit worthiness they simply report what they “believe” to be the facts. Rating your credit worthiness is done by the individual institutions. It was these institutions that reported the information to the Credit Agencies in the first place. These institutions then base their rating upon the information in your credit report. Basically it’s designed to get you nowhere, no worries because you can still beat them fair and square at their own game.




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