Credit And Credit Cards

Have you ever wondered what companies send you when they claim you can erase your bad credit overnight? How about those ads that say you can get any major credit card 100% Guaranteed regardless of your credit?

Ads abound almost everywhere (online and off) selling books, systems and secrets to help you fix your credit in a hurry. Many of these programs have claims which read like the covers of supermarket tabloids “In 3hrs my credit score jumped from 580 to 676!”… “Erase bad credit and smash your debts with just 2 Magic Letters!”. “Create a completely new credit file in 24hrs!” Are these types of claims ALWAYS too good to be true? The answer is “Yes and… no”.

While many people would love for you to believe that the only thing that can fix bad credit is time; in reality… nothing could be further from the truth. The fact is, time is only one factor which will fix a credit report (but it’s a far cry from being the only factor). How can I back this up? Easy. Under a consumer protection law known as the Fair Credit Reporting Act (a.k.a. the FCRA) the only negative information which can remain on your credit report is not what is accurate… but what can be proved as such. What’s this mean to you?

It means any negative item on your credit report can only remain there if it is accurate and CAN BE PROVED AS ACCURATE under the guidelines of the FCRA. This undisputable fact presents consumers with both good news and bad news. The good news is that through the FCRA your credit score can most likely be improved dramatically in a very short period of time with only a modest amount of effort on your part.

The bad news is that while the actual “work” will take very little of your time, it is vital that you have good information on “how” to go about it. This is the bad news; 9 out of 10 courses on restoring your credit will do nothing more than lead you into a snake pit. This is because they provide you with out-dated “Boiler Plate” dispute letters which are rarely effective. These are nothing more than form letters and… quite frankly (more bad news) the Credit Bureaus and Creditors will laugh at you if you try to use them.

While I agree with the Federal Trade Commission (FTC) that “Anything a Credit Repair Clinic can do for you legally, you can do for yourself at little or not cost”… the key element you need for success is the latest inside techniques and procedures to get the results you want. These involve strategies known as “Proof of Contract”, “Constructive Notice”, “Challenge of Procedure” or “Restrictive Endorsement” and many others.

All these terms may “sound” impressive but they are really quite simple. In the end, it is nothing more than a method of communication which exercises your consumer protection rights, gets the results you want and raises your credit score. Even more impressive, once you learn how simple it can be by doing it for yourself, you will find there is a fortune to be made doing it for others! Either way, it all starts by requesting a free copy of your credit report by visiting www.AnnualCreditReport.com.

Tags: credit repair tips, credit cards, money, bankruptcy, personal finance

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“We can delete negative information within 24 hours!”

How often have you read or heard a statement like this regarding credit repair? Whether you have been researching Credit Repair companies or just driving down the street, you have probably seen statements like this more often then not. It’s an enticing offer. Who doesn’t want the best credit score possible? Who hasn’t let a payment or two fall behind? If you’re anything like the majority of consumers you have some delinquencies on your credit file. It would be great if these so called credit repair companies actually had some secret plan that would remove inaccurate delinquencies from your credit file.

The truth is that they don’t.

The Fair Credit Reporting Act (FCRA) states that accurate credit information can not be removed from a credit file for a minimum of 7 years. The bottom line is that it’s the law. Credit Repair is a lot like trying to get out of a speeding ticket. You know you were speeding but you’re still going to try to talk the cop out of giving you a ticket. If you get enough tickets and try enough times you may get off on one. Most of the time you won’t. This is how these companies work. They send dispute letters to the credit reporting agencies on your behalf stating that the information being reported on your file is inaccurate. They may use several reasons why the information is incorrect. It could be that you were not late, it’s being reported incorrectly, the information is misleading, etc. They send these letters by certified mail and start counting the days. Per the FCRA a creditor has 30 days to verify an item. If they do not verify within the 30 day time frame that information must be removed. What the Credit Repair companies don’t tell you is that most companies do verify the information within 30 days and even if they don’t, with a compelling reason they can verify after the 30 day time frame and the information will stay on your credit file. Every now and then you may get something to come off and stay off. It happens, but not often.

The amazing thing is that most of these companies charge you $100’s if not over a $1,000 to get started and then charge you a monthly maintenance fee to mail letters for you. If you want to take this approach to rebuilding your credit, save your money and mail the letters yourself. It’s not that hard do. It’s like playing the lottery, you might get lucky but you probably won’t.

The good news is that there are ways to radically improve your credit score without resorting to asking credit repair companies to commit fraud on your behalf. If you are interested in improving and maximizing your scores please speak to a credit expert. A competent Credit Advisor will review your credit file with you and create a battle plan that will improve your credit score to the level that you desire. Good luck!

Tom Barker is a Credit Advisor with over 10 years of experience in the credit industry. He was an Officer of MBNA America where he dealt with all aspects of the credit industry from collections to lending to working directly with the credit bureaus. Currently he serves as a loan officer and Credit Advisor in Baltimore, MD. He uses his credit experience to help consumers rebuild their credit score and improve their financial outlay. To receive a no cost credit evaluation please contact Tom through his website: http://www.peakcreditrepair.com

Tags: credit, credit cards, credit repair, personal finance, bad credit

Popularity: 2%

The truth about credit repair is that even immediately following a bankruptcy, you may qualify for a credit card with some companies, if you are employed and have a checking account. Some companies will approve your application even if you are unemployed. This is not to say that bankruptcy is the best credit repair option. It is not even a good credit repair option. It is just meant to offer a little encouragement to those who are frustrated and believe that there is nothing they can do.

Credit card companies that extend credit to people with low credit scores and those who have just declared bankruptcy charge higher interest rates and fees. If you qualify for one of these cards, but not the lower interest rate cards, it is important to pay the balance off each month. Typically the line of credit will be very low anyway, but it is still important to monitor your spending. The truth about credit repair is that establishing a good payment history will help. It does not exactly offset the bad credit, but if you are able to get a credit card and pay the balance off monthly, credit card companies will typically increase your line of credit. This will improve your credit score. There are many factors which determine a person’s credit score and one is the amount of available credit versus used credit. So, if you are approved for a higher credit limit, but you do not “charge up” to that higher limit, then your credit score will go up. The best credit repair programs consist of building good credit, while removing bad credit.

The truth about credit repair is that negative items do not have to stay on your credit report for a long period of time. They can be removed by the credit bureaus or by the creditors who reported the negative items in the first place. The best credit repair programs include disputes with the credit bureau and good will intervention with creditors. The worst credit repair advice is to wait the five to seven years for the information to “fall off” of your credit report. The truth about credit repair is that if you dispute an item on your credit report and the credit bureau cannot verify it, then they must remove it.

Even the best credit repair specialists will advise consumers that the whole process is time consuming and can be frustrating. This is the truth about credit repair, but it does not mean that you are “stuck” with bad credit for your entire life or even a number of years. People who have the time, patience and the knowledge can achieve results in a matter of weeks or months. If you do not have the time, patience or the know-how, you can hire a credit repair company. The best credit repair companies are associated with law firms. They do not recommend illegal action, such as providing false information on credit applications. They are honest and upfront about their fees. The best credit repair law firms can help you achieve results, do a lot of the work for you and take most of the frustration out of the process.

The truth about credit repair is that you must pay your bills. You must pay off any outstanding judgments or charge-offs. But, the truth about credit repair is that you can call a creditor who has reported a charge-off or judgment and negotiate the removal of the negative report. Once you have paid the creditor, they have no real desire to leave the negative information on your report. Even though the credit bureaus may say that a specific item will remain on your credit report for a specific amount of time; it is not necessarily the truth. The truth about credit repair is that consumers can accomplish a lot on their own and possibly more if they have the help and advice of one of the best credit repair companies. For more of the truth about credit repair, visit Credit Fix Solutions.

The writers and editors of Credit Fix Solutions are committed to providing the truth about credit repair to consumers. Visit us at http://creditfixnow.blogspot.com.

Tags: finance, personal finance, apply credit cards, credit score, consolidation

Popularity: 1%