Raise Credit Fast – 3 Things You Are Doing Wrong When Trying to Fix Credit
Posted in Finance on 08/12/2010 02:47 am by
Irena Bocheva asked:
Do you want to raise credit fast? Do you want to qualify for a favorable mortgage or auto loan, but fear that your FICO score is too low? Are you worried that the job you want to get requires a mandatory credit check? Whatever your case is, you are not alone. More than 35 million Americans are dealing with issues related bad credit score.
Contrary to the popular beliefs, fast credit repair is possible. The only requirement is knowledge about the inner workings of the credit system and the various loopholes in it.
Here are 3 simple tips that will help you understand how fast credit repair works:
1 You are not the victim…learn your rights.
Harassing collection phone calls, tons of unwanted mail, refusals to get financed on your mortgage or auto purchase-a lot of factors can leave you with the impression that you are a helpless victim of the credit system. In reality, however, you have numerous rights and you are far from being powerless. For example, under the Fair Credit Reporting Act you can dispute any incorrect, outdated, incomplete, questionable or unverifiable information on your report. The disputes can be filed on multiple levels -credit bureaus, companies reporting to credit bureaus, collection agencies and original collectors (623 Dispute). You can dispute the validity of the whole negative account (the account is not mine) as well as separate listings within the account (wrong balance, wrong account limit, you did not make a late payment that month etc). Under the protection of FCRA you can sue credit bureaus if they fail to conduct investigation on your case within 30 days. You can also sue original creditors if you dispute a debt and they fail to report it as disputed to collection bureaus or if they pull your credit report without your authorization. Collection agencies can also be held accountable if they can’t validate a debt (provide proper documentation that the debt is yours), but continue to pursue collection activity. The Fair Credit Reporting Act and the Fair Debt Collection Practices specify numerous rights for the consumer and limitations for the practices of the credit agencies and debt collectors. The more you know about these rights, the better your chances to raise credit score fast.
2 Are you taking advantage of the loopholes in the system?
The credit system is rife with loopholes. However, you have to be knowledgeable in order to take advantage of them. A simple example-the so called Dispute 623 allows you to dispute a listing ( within a negative account ) with the original creditor. Only a small percentage of creditors keep a decent records. The rest preserve records for 13-18 months the most. The reason is simple-it takes a lot of money to keep huge database updated or to input data from one system to another (in the case of acquisition). If your debt is more that 18 months old, file 623 dispute. More than likely the creditor will not have the proper documentation to verify the debt. Under these circumstances, creditors are required to remove the whole item ( even though you disputed a separate listing) from you credit record. Nice, isn’t it…
3 No written proof…no guarantee
Another thing you have to keep in mind is that fast credit repair requires keeping proof of every piece of paperwork you ever exchange with credit institutions. If you attempt to engage in credit repair over the phone or e-mail, you mind end up on the losing side. Use certified mail and fax instead.
If you want to raise credit fast, you have to gain knowledge about the credit system and the various loopholes in it. You don’t have to reinvent the wheel here-simply use strategies and little known secrets that worked for others.
Stephanie
Do you want to raise credit fast? Do you want to qualify for a favorable mortgage or auto loan, but fear that your FICO score is too low? Are you worried that the job you want to get requires a mandatory credit check? Whatever your case is, you are not alone. More than 35 million Americans are dealing with issues related bad credit score.
Contrary to the popular beliefs, fast credit repair is possible. The only requirement is knowledge about the inner workings of the credit system and the various loopholes in it.
Here are 3 simple tips that will help you understand how fast credit repair works:
1 You are not the victim…learn your rights.
Harassing collection phone calls, tons of unwanted mail, refusals to get financed on your mortgage or auto purchase-a lot of factors can leave you with the impression that you are a helpless victim of the credit system. In reality, however, you have numerous rights and you are far from being powerless. For example, under the Fair Credit Reporting Act you can dispute any incorrect, outdated, incomplete, questionable or unverifiable information on your report. The disputes can be filed on multiple levels -credit bureaus, companies reporting to credit bureaus, collection agencies and original collectors (623 Dispute). You can dispute the validity of the whole negative account (the account is not mine) as well as separate listings within the account (wrong balance, wrong account limit, you did not make a late payment that month etc). Under the protection of FCRA you can sue credit bureaus if they fail to conduct investigation on your case within 30 days. You can also sue original creditors if you dispute a debt and they fail to report it as disputed to collection bureaus or if they pull your credit report without your authorization. Collection agencies can also be held accountable if they can’t validate a debt (provide proper documentation that the debt is yours), but continue to pursue collection activity. The Fair Credit Reporting Act and the Fair Debt Collection Practices specify numerous rights for the consumer and limitations for the practices of the credit agencies and debt collectors. The more you know about these rights, the better your chances to raise credit score fast.
2 Are you taking advantage of the loopholes in the system?
The credit system is rife with loopholes. However, you have to be knowledgeable in order to take advantage of them. A simple example-the so called Dispute 623 allows you to dispute a listing ( within a negative account ) with the original creditor. Only a small percentage of creditors keep a decent records. The rest preserve records for 13-18 months the most. The reason is simple-it takes a lot of money to keep huge database updated or to input data from one system to another (in the case of acquisition). If your debt is more that 18 months old, file 623 dispute. More than likely the creditor will not have the proper documentation to verify the debt. Under these circumstances, creditors are required to remove the whole item ( even though you disputed a separate listing) from you credit record. Nice, isn’t it…
3 No written proof…no guarantee
Another thing you have to keep in mind is that fast credit repair requires keeping proof of every piece of paperwork you ever exchange with credit institutions. If you attempt to engage in credit repair over the phone or e-mail, you mind end up on the losing side. Use certified mail and fax instead.
If you want to raise credit fast, you have to gain knowledge about the credit system and the various loopholes in it. You don’t have to reinvent the wheel here-simply use strategies and little known secrets that worked for others.
Stephanie
