Credit Repair Tips

Credit Repair Tips
Follow These Proven Strategies

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PHASE 1: Follow These Proven Strategies Throughout Your Credit Repair Process

Credit monitoring is a powerful financial tool that provides monthly credit score changes, identity theft protection and other benefits. Credit monitoring is billed separately by the service provider ($25-$35/month) and it is required until the credit repair process has been completed.

1) A 6-9 MONTH COMMITMENT IS A GOOD TIME FRAME FOR PROVEN RESULTS

If you finish earlier, congratulations!
However, federal and state consumer laws provide credit bureaus and third parties adequate time to investigate and reply to all disputes
Our overall goals are better credit scores, higher approval limits and lower interest rates

2) FREEZE YOUR ACCOUNTS WITH THE 3 MAJOR CREDIT BUREAUS UNTIL YOUR CREDIT REPAIR PROCESS HAS BEEN COMPLETEED

Inquiries (applications for new credit) lower a person's credit score
Freezing your account with each credit bureau will prevent new inquiries while we're repairing your credit profile

3) KEEP YOUR CREDIT MONITORING ACCOUNT ACTIVE

The information from your credit monitoring service allows us to prepare your initial Credit Audit

It also provides monthly updates from the 3 major credit bureaus and allows us to see the changes to your accounts and your credit scores
A 3-Bureau credit report helps identify discrepancies, incorrect information, fraudulent transactions and potential cases of identity theft
A FICO score is usually required for major purchases including mortgages and autos (select the monthly subscription OR 7 day trial for $1)
VantageScore is available for overall financial health and is usually sufficient for other types of financial goals (select the 7 day trial for $1)
Credit monitoring is billed separately by the service provider ($25-$35/mo)

4) PAY YOUR BILLS ON TIME EVERY MONTH

Lenders like to see a good payment history along with several credit cards that maintain low balances
Always pay on time since one missed payment could decrease your approved limit, lower your credit score dramatically and undo the progress that we're making

5) KEEP ALL OF YOUR CREDIT CARD ACCOUNTS OPEN AND IN GOOD STANDING

Continue using your open, active credit card accounts wisely so that they will be reported as "good" credit (click here for Credit Facts)
If you're no longer using a credit card on a regular basis, make small purchases from time to time and then pay the account in full

6) CONTINUE MAKING REGULAR PAYMENTS ON YOUR INSTALLMENT LOANS

Paying them off early may save you interest and work in your favor, provided that there isn't a prepayment penalty that offsets the amount saved
However this could negatively impact several components of your credit score including payment history, length of credit and types of credit used
Therefore your credit score would most likely decrease for a short time
Since you're working towards a higher credit score, continue making your regular monthly payments until your credit repair process has been completed

7) REQUEST MODIFIED PAYMENT ARRANGEMENTS FROM YOUR LENDERS IF YOU HAVE A DOCUMENTED HARDSHIP

Many lenders have hardship relief programs for unemployment, unexpected medical expenses, divorce or other documented circumstances
Contact each of your lenders if one of these situations applies to you

8) STOP APPLYING FOR NEW ACCOUNTS DURING CREDIT REPAIR

The accounts that are included in your Credit Audit & Analysis Report are the "baseline" for comparison purposes
Opening new accounts or having new inquiries may lower your credit score for up to a year and reverse the progress that we're making on your behalf
If opening a new account appears to be a good strategy for you, we'll let you know at the appropriate time
Please be patient until our credit repair process has been completed

9) DO NOT CLOSE ANY OF YOUR EXISTING ACCOUNTS SINCE SOME OF THEM INCREASE YOUR CREDIT SCORE

Existing accounts that are in good standing contribute to a better credit score
Closing an account that has a positive credit history could lower your score and reverse the progress that we're making on your behalf

10) PAY YOUR CREDIT CARDS DOWN TO 25% OR LESS OF THE AVAILABLE LIMIT

The balance owed on a credit card vs. the approved credit limit is referred to as the utilization ratio
Credit bureaus calculate higher scores when utilization is below 30%
If you have high balances, pay them down to 25% or less
Another effective strategy is to request a credit line increase when your balance is low, them work towards 25% or less of the new limit

11) ONLY SPEND 25% OR LESS OF THE AVAILABLE CREDIT LIMIT, EVEN IF YOU PAY THE BALANCE IN FULL

Credit reports include the "high balance" along with the balance that was due at the end of each month
It is best to maintain both balances at 25% or less, so pay it down during the month when your spending exceeds 25% of your available credit limit

12) BEFORE PAYING A NON-MEDICAL COLLECTION ACCOUNT, ALWAYS REQUEST A "PAY TO DELETE" AGREEMENT

A collection account may be sold to one collection agency after another, be removed from your credit report and then be reported again
If you pay off a medical collection, it will be removed from your credit report
However, other types of paid and unpaid collection accounts can remain on your credit report for up to 7 years
BEFORE SENDING YOUR PAYMENT FOR A NON-MEDICAL COLLECTION ACCOUNT Request a "pay to delete" agreement IN WRITING from the collection agency to ensure that the account will be removed, otherwise it can remain on your credit report for up to 7 years

13) UNPAID ACCOUNTS THAT HAVE BEEN DELETED FROM YOUR CREDIT REPORT MAY STILL BE LEGITIMATE DEBTS THAT YOU OWE

Accounts can be deleted from your credit report if they aren't being reported in compliance with federal and state consumer laws
However, a creditor may still try to sue you in court, garnish your wages or take other action to collect the amount owed
If an unpaid debt is deleted from your credit report, it may still be reported for mortgages, government loans and other types of lending
When applying for financing, sometimes these accounts will need to be paid in full before a new loan can be approved