Are you asking yourself this question, because you want to purchase your dream house or a brand new car? Or you simply want to get rid of debt and start with a "clean credit slate"? Whatever your specific situation is, you are not alone. Currently more than 35 million Americans are struggling with bad credit score and the various issues that come with it. Luckily, there are numerous ways to improve credit score. The only requirement-start thinking outside the credit box.
Here are 3 simple tips that will help you understand how fast credit repair works.
1 Why credit repair services are not always the best idea?
Credit repair services make a bank out of the huge crowd of uniformed people with bad debt. They charge exorbitant fees for things you can do yourself IF you had the credit knowledge. For example-they file disputes with credit bureaus and collection agencies, ask for debt validation (documentation proving the debt was yours), negotiate with collection agents etc. In other words -they are doing everything you can do yourself if you take the initiative.
2 How to find "order" in the credit chaos?
When it comes to credit repair, a lot of people feel overwhelmed and helpless. The harassing collection phone calls, the flood of unwanted mail makes you feel as if you are drowning in a sea of debt. Take a deep breath and relax. There is order in the credit chaos. Use your credit report as a staring point. Highlight all negative items in your report and rank them in order of descending importance (bankruptcies, foreclosures, loan defaults, legal judgments, collections, late payments, past due payments, credit inquiries etc). With the exception of bankruptcies and foreclosures, all other negative items can be altered and deleted from your credit report. Educate yourself on the different strategies you have to use in order to delete the different kind of items. The more you know about the credit system and the various loopholes in it, the better your chances to get rid of unwanted accounts in your credit report.
3 Different strategies for different agencies.
Collection agencies, credit bureaus, original creditors-they all have the power to delete negative items from you credit report but you have to approach them the right way. Let's say you are trying to delete a one time late payment on your auto loan. Send a goodwill letter to your creditor explaining the circumstances around that late payment (you do have a sob story, right). Be diplomatic and polite and ask them to remove that late payment from you report in exchange for your loyalty as a customer. As simple as it is, the strategy usually works. However, you have to be far more aggressive and assertive when you approach collection agencies. Request a validation of debt before you start negotiating for settlement. In many cases the collection agency does not have the necessary paperwork to prove the debt belongs to you. If they fail to provide proper documentation, they are required by law to remove the item from your record. If they refuse to do so or are slow to respond, threaten to sue.
How increase credit score? Little known credit secrets and tricks can boost your score in no time. Once you start thinking outside the credit box, you'll be surprised to find how easy credit repair actually is.