Credit Repair Tips

Credit Repair Tips
Professional Credit Repair Service
Helping Illinois Residents Build a Strong Financial Future

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Develop Good Financial Habits for a LIFETIME

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6-9 MONTHS IS A GOOD TIME FRAME TO ENROLL IN OUR CREDIT REPAIR & FINANCIAL COACHING PLAN FOR PROVEN RESULTS
OVER TIME YOU MAY QUALIFY FOR BETTER CREDIT WITH LOWER INTEREST RATES AND HIGHER LIMITS

We Will Help You Dispute Negative Items On Your Credit Reports

The Fair Credit Reporting Act (FCRA) allows all negative items on a credit report to be disputed, and we send dispute letters to the credit bureaus and credit furnishers on your behalf. Credit repair removes negative accounts that are incorrect, outdated, out of compliance or cannot be verified by the 3 major credit bureaus. These accounts are problematic since they usually cause your credit score to be lower. After removal, your scores will usually increase.

The credit bureaus are allowed 30-45 days to respond with the results of their investigation. We also request verification that their review was in compliance with federal consumer protection laws.

Negative information must be removed when the credit bureaus and credit furnishers do not verify them within 30 days, or the collection agencies do not validate them within 30 days
Negative items that were removed may be reported again after proper verification or validation, and a 5-day notification to the consumer
The Statute of Limitations (see details) specifies the maximum number of years that negative items can be included on your credit report

Credit monitoring is a powerful financial tool that provides monthly credit score changes, status updates, identity theft protection and other benefits. Credit monitoring is required for each client until the credit repair process has been completed.

1) KEEP YOUR CREDIT MONITORING ACCOUNT ACTIVE

Credit monitoring provides monthly updates from the 3 major credit bureaus and allows us to see the changes to your accounts and your credit scores
It also helps identify 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 ($20-$35/mo)

2) 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 lower your score dramatically and undo the progress that we're making

3) 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

4) CONTINUE MAKING REGULAR PAYMENTS ON YOUR INSTALLMENT LOANS

Paying them off early may save you interest
However, your credit score may also decrease for a short time
Since you're working towards a higher credit score, simply continue making your regular monthly payments

5) 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, however now is NOT the time
Please be patient until our credit repair process has been completed

6) 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

7) 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
If you have high balances, pay them down to 25% or less
Another effective strategy is to request a credit line increase so that your balance due doesn't exceed 25% of the new limit

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

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 budget accordingly

9) 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 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

10) 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 in other systems for mortgages, government loans and other types of lending