There is no substitute for good credit, nothing can replace it. Of course cash is King but in our present economy you have to protect the queen and that’s your credit. To some this may sound awkward but good credit actually not that hard of a task. Let’s get straight to it.

The key to getting, having and keeping good credit is behavior. That’s it. Money is only a factor in the after effects. That is in paying back what credit you have obligated yourself for and what you report to the bureaus in providing your personal information.

There are a couple of key things to keep in mind; a) The credit reporting agencies are private companies; b) they know what they are told & instructed to do; c) they are governed by federal acts.  The credit reporting agencies don’t control you, in truth, you control them.

If your “credit health” is a major factor in your life then it is up to you to maintain it. To ensure that you have decent credit here are a few things that are really important:

1)Monitor your credit file. Don’t ignore it and act like it dosen’t exist. You need to be alert and pay attention to what is in your credit file. Everything matters from the spelling of your name and all of your previous addresses down to duplicate inquiries from your present creditors to old stale information;

2) Pay your bills on time, that’s where the behavior kicks in. Find out what works for you and do it. If you keep forgetting or losing your bills, sign up for automatic bill pay or put reminders in your phone or your email calendar;

3) Make sure that your personal information is current, consistent and up to date;

4) Its better to dispute in a letter from you, than it is to do it online. What you say and how you say it means everything, the online form gives you very few options. Sometimes it’s the difference between getting your update/deletion and getting a letter saying that they already investigated this matter and there is nothing more that they can do;

5) Do your best to maintain balanced credit. Balanced credit is revolving & installment. Like a credit card and a car loan or a mortgage.

6) Apply for credit sparingly. If you don’t need it, don’t apply for it. 80% of inquiries affect your credit, so be cautious and mindful when you are credit shopping.

Its your credit, so its important for you to use it wisely to shape your financial future. Stay tuned fro more credit repair info.

The Credit Repair Process

1. Order the Credit Files from the three major credit reporting bureaus.
2. Once you begin to receive you credit files, analyze each file thoroughly, compare similarities (account numbers, creditor names, creditor addresses, balances, identifying information, etc.)  Map out your process and plan for each individual file & your plan for all three files. In some cases, it’s ok to write one (the same) letter addressed to all three of the bureaus, sometimes it’s necessary to write individual letters to the different bureaus, in an effort to not cross contaminate or updated, where it doesn’t deem necessary.
3.   Determine the class of each item on your credit file (paid, owe, not mine, joint account, in collections, current, older than 7 years, not yours, etc) you may have other classifications it varies on an individual basis. Analyze your identifying information (name, address, birth date place of employment etc) Make specific not of any inconsistencies or irregularities found.
4. Identify the approach needed on each individual account & item. For example, A paid credit card that was sold to a third party debtor(collection agency) and appears on each bureau, but from a different company, needs some form of verification that it has been paid sent to the credit bureaus.  It also needs to be identified & noted that all three account listed on the different individual bureaus bearing different creditor names, account numbers and balances, are the same account. It may also help to send any “proving documentation”(receipts, confirmation letters) to the different companies, for faster response & compliance times. Let’s not forget, the credit bureaus are governed by the Fair Credit Reporting Act, use it to your advantage it is there for a purpose.
5. Before you begin to contact your creditors. Figure out which debts are “rightfully yours” & determine your “logical & sensible” goal to make payments on those debts. If you can afford to pay some of them off in payment plans, call and work out a payment plan, if you would rather (and have the ability, cash in hand) to pay in a lump sum. Call & negotiate a pay off.

*Note- When negotiating, be polite but firm, leave yourself some wiggle room so shoot lower than what you can afford, with hopes that you can get your targeted goal amount

1. Construct, write & send out your letters. Be careful with your wording, it’s very important to be aware of what you are saying and how you are saying it, use words wisely. It makes the difference in the response and result that you get, from the credit bureau & the creditor.
2. Wait for your responses. Be mindful conscious and aware of the different mail & letters that you get. Save everything for the time being.  Create a special place to collect everything that has to do with your repair & restoration.
3. Repeat Steps 1-7 Until you achieve your desired results
4.  

We generally add and amend stuff to these steps to add a better clarity, quality & understanding.