Website design By BotEap.comI’m going to show you how to fix your credit. I am not going to share everything I know with you about credit scoring models or algorithms, but I am going to share the process with you. I do this because I want you to know what you are doing when you go to fix your credit. If you have bad credit and are into DIY, this article is for you. I’m going to cover everything in this article from A to Z.

Website design By BotEap.comThe first thing to do is check your credit for inconsistencies. 79% of credit reports have one error or another. Cases of mistaken or stolen identity, same or similar names reporting the wrong report, wrong amounts, duplicate accounts, and many other forms of errors that are reported in credit profiles abound. Check your credit report very carefully for inconsistencies like the ones listed above.

Website design By BotEap.comOnce you’ve identified the errors you want to fix, it’s time to move on to the next step. You’ll want to dispute those items with the three major credit reporting agencies. Write a letter to each of the three credit bureaus explaining what you think is the error and request that they remove the item reported in error from your credit report. Proper format is an important ingredient in ensuring that your dispute is handled correctly. The credit bureaus will want to make sure that you are who you say you are. For that reason, you should always send your dispute letters with a copy of your driver’s license and a self-addressed bill (such as a utility bill). If you’ve recently moved, they may want to see additional verification, so please include a pay stub, social security card, or W2 form.

Website design By BotEap.comThere is no guarantee that disputing an item will result in that item being removed from your credit profile. If the article is actually reported in error, there is a high probability that it will be removed. Creditors have 30 days to validate an account that has been disputed, otherwise it is automatically deleted. If an item is validated but you are sure it is being reported in error, you can contest the validation. This process begins by first requesting from the credit bureaus the documentation that the creditor used to validate the account. A good example would be if an amount is reported incorrectly. For example, if you canceled an account but it still reflects an amount owed. In that case, obtain dated proof of your debt obligation exemption to compare with the documentation used for validation, which may show that the validation is dated.

Website design By BotEap.comIf you are unable to remove an item through the dispute process, the collection agency or creditor will most likely be more flexible and willing to negotiate after an item has been disputed, validation challenged, or is currently in dispute. As a last resort, you may want to try negotiating a settlement with the creditor; this is only if you cannot remove the item by any other means. However, here are some basic rules to keep in mind. Again, if you are certain that the item is reported incorrectly or is not yours in its entirety; do not recognize the debt as yours.

Website design By BotEap.comThe first thing to ask when the creditor answers the phone is that the agent return to an unregistered line. You have the right to speak on an unregistered line and generally the agent will be happy to accommodate you. He or she will put you on hold briefly and return to a line that is not being recorded. Once they are back on the line with you, tell them that you are calling by the account number (enter the account number). If you acknowledge ownership of the debt, that could reset the statute of limitations to 0 days from the last date of activity. It is important not to do that acknowledgment in case you cannot reach an agreement. It’s not uncommon for the payoff to drop to around 40% or 40 cents on the dollar. Collections and profit and loss statements come out on their own seven years after the last activity, while items written off in bankruptcy come out in 10 years.

Website design By BotEap.comClearing your credit history from your credit profile is the first step in establishing your credit repair. The next step is to restore credit. Sometimes when you make a lot of changes to your credit profile in a short amount of time, you can see a drop in your credit score in the first month after. The reason for this is that while you delete derogatory items, you also delete the transaction history. This is normal and will be recovered in the following month as long as you have established new business lines (credit account).

Website design By BotEap.comThose with perfect credit have multiple experienced business lines that vary in type. Usually a couple of revolving accounts, an installment loan or two, and an amortized loan like a mortgage. The more experienced a business line is, the more weighted it will be on your credit report. If you have the option to have a friend or family member add you as an authorized user on a seasoned business line, this will speed up the period of time in which you can increase your credit score. However, with a clean slate, you should still be able to increase your score significantly over the next several months.

Website design By BotEap.comTo get started, open a couple of credit card accounts. You should limit your inquiries to no more than 3 in any 6-month period. For that reason, it’s a good idea, if you have cash on hand, to start with secured credit cards. Secured cards come with guaranteed approval and don’t require a credit check, so you can limit inquiries to your account. Another great option is Aarons Sales & Lease; They are the only leasing company that I am aware of that reports to the top 3 credit reporting agencies. When establishing new credit, try to limit your new credit inquiries as much as possible.

Website design By BotEap.comAfter establishing a couple of new credit card accounts, make sure they are open and active. You will want to use the cards to create a positive transaction history. At the same time, you should use them carefully to maximize your credit utilization. Never exceed 30 percent of your available balance, as that is the sweet spot your account is open and active while maintaining a large percentage of available credit. It’s a good idea to make a small purchase or two once a month and then pay your bill after receiving it in the mail to make sure it’s posted and account activity is reflected on your credit profile.

Website design By BotEap.comThere is much more than the information I have provided here. There are specific calculations we can do based on credit score models that allow us to estimate scores at particular intervals. However, to continue complying, I never quote deadlines or offer guarantees because there are always variables that could interrupt the work we are doing. The information provided here is more than enough for you to go out and fix your own credit. There is nothing we can do about it that you cannot do yourself. You can follow the steps outlined in this article and correct your credit.

Website design By BotEap.comIf you don’t have time to put work into this process or prefer to leave it up to the professionals, we are here to help. Northern Finance Group employs highly trained credit repair professionals and we are ready to work with you every step of the way. Our fees are reasonable for the high level of service we provide and we can make sure your credit reaches the heights it strives for. If you have been denied a loan and need to have it repaired as soon as possible, call us for a free consultation.

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