"Credit repair secrets don't exist", "There are no shortcuts to better credit", "It takes one wrong step to damage credit and years to repair it" – you have probably heard such things a million times. Guess what? Fast credit repair is possible and there are many credit secrets that will take you there. The key is knowledge about the inner workings of the credit system and the various loopholes in it.
1 Credit Repair Secret # 1 Paying off your debt in full will not raise your credit score.
According to the mainstream credit advisers credit repair can only be achieved through financial discipline and careful budget planning. You probably see them on the news occasionally -role model families that buckled up, saved every penny for a few years and paid off their debt in full. Is this really necessary? Certain items in your credit report have to be paid in full (legal judgments, tax liens, child support). Others, however, can be settled for a minimal fraction of the amount owed (collection agencies still make profit out of you even if you pay them 20% or less of what you owe). The other important fact is that paying off your debt can sometimes lower your score. Just because you paid an old debt does not erase the fact that at one time you were not paying it "as agreed". If you pay now the account status will be upgraded to current and the day of last activity will be changed. The negative account (albeit now paid) will continue to influence your record adversely for another 7 years.
2 Credit Repair Secret # 2 You can remove negative item from your report.
Negative items are not "set in stone" for the duration of the punishment period. They can be changed and deleted. And we are not talking only about mistakes in your report. The Fair Credit Reporting Act as well as various federal and state laws REQUIRE that items be removed if they are not 100% accurate or cannot be verified in a timely manner. For example, you are allowed to dispute a listing within a negative item (wrong balance, wrong limit, did not pay late this month etc) with the original creditor. Many creditors keep files for only 13-18 months, because it's quite expensive to keep a huge database updated.So if your negative account is older than that, the creditors might not have the proper paperwork to prove you wrong. In this case, even though you are disputing a listing within the account, the creditor has to remove the whole account from your credit record. And this is exactly what you are aiming for.
3 Credit Repair Secret # 3 You have far more power that collection agencies.
Collection agencies harass and threaten, but in reality they are more bark than bite. You have to realize that when it comes to collection agencies, the law is on your side. Under different provisions of the FDCPA you can send a "cease and desist" letter and inform collection agencies that they can contact you only through mail. If they continue to call, you have every legal right to sue. Collection agencies are also forbidden from making harassing phone calls, calling you between 9 PM and 8AM, threatening to garnish your wages, seize your property etc. You are also given the right to ask collection agencies for verification of debt. If they can't validate the debt in a timely manner, but continue pursuing collection activities-they are in violation of FDCPA. In a nutshell-you have far more legal power than collection agencies. Learn how to use it.
Is there a credit repair secret? The answer is simple-the credit system is rife with tricks and loopholes. Credit repair is real easy, once you know how …