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Posts Tagged ‘credit repair attorney’

Millions of Americans who lost their homes in the foreclosure crisis are now in dire need of credit repair. Bankruptcy can cause a low credit score by shedding 300 or more points off; not to mention that this information will remain on file for ten years. Foreclosure is just as insidious, often costing ex-homeowners 300 points and a 7-year blemish on their credit score. There are ways to bring up poor credit yourself, as well as utilizing companies that specialize in this field.

If you’re wondering how to bring up a low credit score, then you’ll be happy to know there are a a few ways to do so. First, check your free credit score with Experian, TransUnion and Equifax and be sure to be on the watch for any facts about identity theft while you are going over your credit report. Once you know what figures you are dealing with you can work out where to start in your credit repair strategy. Next, pay off all your debts, starting with the highest interest credit cards first. If you need help with this area, then you may want to consult a credit repair attorney. While you're paying these off keep your accounts open, otherwise it will look like you're using a larger portion of your available credit. Thirdly, look at getting what is known as “good debt,” such as a mortgage, a school loan, a car loan or a self-financed installment loan; anything that will prove you can be trusted to once again stick to a monthly payment plan.

One way to re-establish good credit is to secure one of the credit cards for people with bad credit. You need to exercise caution while looking over these credit repair offers, as there are obviously many scams preying on the poor. An unsecured credit card paid each month on-time and in-full is one of the best ways to demonstrate the “new you,” the one who can be trusted with a loan or line of credit. At www.credit.com, there are a number of offerings from Visa and Mastercard for people with low credit scores. Some of these interest rates are as low as 9.9% or as high as 19.92%, so naturally you’ll have to weed through the lot of them for the best deal. This option should only be exercised if you can be disciplined enough to use it only for credit repair purposes. Maybe you’ll use your card to buy gas each month or you’ll pay for your cell phone bill each month, using your bank’s auto-bill-pay to ensure that you never make a late payment or miss a payment.

You can fix your credit on your own with a little bit of guts and knowledge. A 2004 Federal Reserve bulletin stated that 29% of credit reports contained accounts with inaccurate balances, often more than three months out-of-date. Not all creditors report timely payments or adjust their records. Additionally, creditors aren’t required to report to all three credit bureaus, so your credit repair should include sending in your updated information to all the bureaus to ensure accuracy and to check up on your credit score each year.

Do you know a nasty four letter word that most adults face every single day? No, it is not a curse word though to be honest…it feels that way. It is debt. This four letter word is responsible for people feeling as if they will never be free from the shackles of credit card bills and loan payments. You do not have to live your life around that four letter word. You can be free and be rid of the bills and credit card payments.

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Sure, there are credit cards for people with bad credit and you can still get a loan with bad credit, but why not focus on how to repair credit score history to ensure that you get the best deals in life? Students are often handed their first unsecured credit card with little explanation on how to use it wisely. Most understand that it’s ideal to only use what can be paid off within the month, but the balance can so easily accumulate. Many people don’t realize that it could take 10 years to pay off their balances if they just pay the minimum monthly payments and that maxing out their cards will drop their scores significantly, as will paying one bill late.

The first step to repairing your credit score history is to understand the breakdown of that three-digit number and what factors into your score. According to a leading credit repair Attorney our payment history comprises 35% of the score, so always pay every bill and credit payment on schedule. This tells the lender how likely you are to pay them in full and on time, without hassle. Also, the more recent the mistake, the worse it will be for your score. Another 30% of the score is based on any outstanding debt, such as how much you owe on auto and home loans and how many credit cards you have at their credit limits. You should have no more than three credit cards at 25% or less of their limits. This indicates whether you’re out of control, using up your limits, and whether you’re literally living on credit or not. The length of time you’ve had credit will account for 15% percent of your score because lenders want to see that you have a long-standing history of paying responsibly. Furthermore, 10% of the score is based on the number of inquiries made on your report. If you are applying furiously for tons of credit cards, then this indicates that you are in some kind of financial difficulty. The last 10% of the score is based on the types of credit you have, which should be a mix of unsecured credit cards and revolving loans to show you are capable of managing money. Credit report repair should start with making regular payments, then working outstanding balances down to 30% of your credit limit, then on to things like type of credit.

To repair credit score numbers, you’ll need improved credit history. You can achieve this by figuring out what caused you to fall behind and devising a new spending plan that can reduce your debt and set you up for a win. Often, you can negotiate new due dates or ask for reduced monthly payments from your creditors. Collection accounts will sometimes send you a settlement letter, allowing you to pay less than the original amount; sometimes as little as half! As for your credit score, paying it off in full will look better than accepting the settlement offer, but be sure you negotiate with your collector before you pay a single dime, requesting that they remove the blemish from your credit, and get that in writing!

You may have also heard that adding stability to your credit file will repair credit score numbers. To repair your credit this way, you should make sure all creditors are reporting your positive payment history, as sometimes travel, entertainment, gasoline card and local banks don’t always report your information to the credit bureaus. Ideally, your credit portfolio should include 2-3 unsecured credit cards and an installment loan to show diversity. Opening a savings account is another way to show your reliability. Lastly, do not let your credit status go dormant. Craig Watts of the Fair Isaac Corp says, “The faster you begin to re-establish good credit, where you pay on time, every time, the faster you’ll improve your credit score.”

There is probably something you face every single day. No, it is not your reflection in the mirror or your family. It is the accumulation of bills and credit cards. That every day spending that begins to accumulate until you are faced with a mountain of bills and not enough paycheck to cover it all. People can easily find themselves snowed under by these bills and may even find themselves losing their home and their possessions when they cannot make payments in a timely manner. Bad credit is all too easy to get into but you can find your way out.

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