Outsourcing Your Credit Dispute Processing
The Frustrations of Credit Repair Processing
I have been asked (again) how to alleviate the frustration of the credit disputing process that I go thru in my credit repair business. Endless phone calls and emails from clients who don’t understand how things work, how long it takes, why it takes so long and on and on…
Outsourcing Credit Disputing Increases Profitability
The answer is simple and very profitable – OUTSOURCING. Letting a professional company handle your clients, from phone calls and emails to credit counseling. Check out this video and you will see what I mean
Best Advice on How to Fix Bad Credit
I’ve have been asked from time to time about the legitimacy of credit repair, does it really work, can I do it myself, should I hire someone, things of that nature.
Let’s start by saying that repairing your credit report is becoming increasingly important. As the cost of financing begins to rise, the added cost of having poor credit compounds the amount you must pay, leaving less and less discretionary income. In addition, other services (car insurance, home owners and renters insurance to name a few) are looking at your credit report and charging you accordingly.
Knowing this makes it crucial to fix bad credit as soon as you can. Credit repair does work! It’s that simple. Whether you choose to do it yourself or hire a company it is worth doing.
The steps you must take will be determined by what is on your credit report. If you are dealing with late payments, public records like tax liens or a bankruptcy, you will need to deal with the credit bureaus.
If you are dealing with debt collections you will probably need to address both the credit bureaus and the debt collection companies.
Here is a video which details what to do in dealing with the credit bureaus. These are the first steps you should take.
Of course there are many other issues in rebuilding a credit profile and improving your credit scores. Due to the increasingly complex nature of a credit report, I do recommend hiring a credit specialist even if it is just for a short time. Get their expertise on what a top notch credit report should look like and their advice on how to achieve this. Many companies will give you that information for free before you commit to purchasing their program. PLEASE SHARE
How To Repair Bad Credit with this Insider Secret
Improve Your Credit Using What The Courts Use
100’s of millions of dollars have been paid out by all three credit bureaus in lost lawsuits based on a technicality in the law! This is the same technicality that can fix your bad credit and improve your credit scores!
The credit bureaus often require the plaintiffs to not disclose the reason they lost the case or the settlement amount because they don’t want the public to know.
Court Ordered Credit Repair
Fixing bad credit revolves around the vagueness in the law which covers HOW the credit bureaus are to accurately verify what they are reporting about you. It was never spelled out. The credit bureaus feel that all they have to do is accept what the creditors are telling them as accurate without seeing any actual documentation and that is enough. Leaving the burden of proof on that credit furnisher. However, the courts have absolutely DEMANDED that the credit bureaus go far beyond just accepting a third parties say so. The courts state that the law evinces the credit bureaus to do a thorough investigation, going far beyond reporting hearsay and that since they collect and profit by this information that they will be held liable when it is inaccurate, misleading or unverified. The courts have gone so far as to state that the credit bureaus are, “habitual repeat offenders of the Fair Credit Reporting Act”!
The Cost of Bad Credit is Too High
This is the very point of law which makes fixing bad credit possible. Because the credit bureaus are sticking their damn fingers in every part of your life, it is beginning to really have a financial impact on consumers. Therefore, it is worth the effort to learn about repairing bad credit and taking the steps to do so.
How To Raise My Credit Score(s)
Raising Your Credit Scores Is No Laughing Matter
Raising your credit scores takes some common sense, some insider information, (the kind you would really have to dig for, like court cases and published studies) and a plan of action.
There are basically two actions you can take to raise credit scores, one you can control, the second you can’t. Both are worth doing.
Let’s raise your credit scores with the actions you can take…
Start with using the credit cards you have. If they have very low balances (less than 30% of your available credit line), keep those balances low and make your payments on time. This adds positive credit history every 30 days as the creditor reports to the credit bureaus. If your balances are above that 30% threshold there are a couple of options. (1) You can stop using them and pay down the balances until you get at or below the 30% threshold. At or below 30% will give you the highest scores for unsecured credit lines. (2) You can get more credit thereby raising your overall credit limit against the amount of debt you are carrying.
If your credit is too poor to get a credit card or you haven’t yet established credit yet, here is a quick list of the best credit cards for building or establishing credit. Credit cards for bad credit.
Another possibility is to become an “authorized user” on someone else’s account (like a sibling or parent). This gives you their great credit rating on your credit report instantly raising your credit scores.
Raising your credit scores by targeting the bad credit…
This can be a bit tricky. No one can guarantee the outcome of using a credit repair company, yet the results that they are getting is pretty amazing. Removing bad credit from your credit report will definitely improve your credit scores.
You can easily do this yourself with a little research and a lot of patience or hire a reputable credit repair company.
The Secret on How To Remove Bad Credit
Want to know the secret to removing bad credit history?
The secret is, there is no secret! There are hundreds of videos and thousands more websites all explaining why credit repair works. The law protects you from unverified credit reporting by the credit bureaus. And the credit bureaus DO NOT VERIFY what they report. They merely accept third party hearsay. In other words your creditors just tell them what to report, the credit bureaus never actually see any original documentation.
If there is a secret to removing bad credit from your credit report it is in the HOW. Most consumer, trying credit repair on their own, flat fail when it comes to fixing bad credit mainly because they give up too soon. The truth is, removing bad credit takes a good deal of time and a great deal of persistence.
Just because a negative credit item is not removed in the first or second letter does not mean it won’t be removed in the 8th or 9th letter. Are you willing to show that much patience? That is the secret of how to remove bad credit.
Don’t have the time? Don’t have the patience? Consider hiring a credit specialist to help your remove bad credit and improve your credit scores. A good quality, experienced credit repair company can be worth their weight in gold, because poor credit costs you considerably more then good credit!
Here is how credit repair works
Credit Report Repair – An Ingenious Technicality
Understanding how credit repair works is just “down and dirty” simple. The truth is that “CREDIT REPORT REPAIR” is based on a legal technicality.
Although the FCRA (Fair Credit Reporting Act) does not specifically say that the credit bureaus must back up what they report about you with actual documentation, it does say that they do have to be able to prove what they report. In other words, they got the information about you from somewhere, so somewhere there must be proof.
Here is the technicality, the credit bureaus never really see the actual documents. They accept third party proof from creditors. So what if that third party proof is inaccurate, was never actually verified or just flat wrong. The credit bureaus would never know. Ouch!!
That is why the courts have demanded that the credit bureaus go much further in their investigation then accepting the word of a third party. To make their point, the US Courts have fined the credit bureaus nearly one billion dollars for this very big technicality.
You can feel confident that credit report repair works, whether you do it yourself or hire a credit repair company.
Two commonly missed steps in Raising Your Credit Scores
This will help you understand the two most common mistakes people forget in rebuilding and raising their credit scores!
How Many Credit Cards Is The Right Amount?
This question comes to me from a client in Kentucky. There are a lot of theories on what is best and the credit bureaus won’t tell anybody their formula. But after discussing with others who are in the credit education business we have generally come to the same conclusion.
The first part of the answer lies in the amount of available credit line you have. Let’s say you have $2,500 of available credit line on two credit cards. And that you have balances on Card A of $1,500 and zero on Card B. In this scenario you will likely have a lower credit score because you are carrying 60% of the available credit line on one card when the optimum amount has proven to be around 30%. This is the standard thinking in the industry
However, as one of my colleges points out, you would only be carrying a combined total of 30% when using the combined credit limits of both cards. Based on the credit reports I have reviewed there is truth here as well and the likely answer is that both factors are involved in calculating your credit scores.
The second part comes from reviewing those same actual credit reports and seeing consumers who are carrying balances on say 4 to 7 credit cards and still holding 740 FICO scores and above. What became obvious was that those with the higher scores were typically below 35% of their available credit lines. Those with scores in the 600’s were carrying a higher ratio to their overall credit lines
So…a possible way to raise credit scores if you are carrying ratios above 35% would be to apply for additional credit cards and not use them, thereby lowering your ratio of balances carried against your available credit lines. Of course, the obvious and first step to be taken to raise your credit scores is to pay down your balances on the way to paying them off.
Raise Credit Scores By Becoming An Authorized User
This will quickly raise your credit scores…
In today’s world more and more is based on credit. The ability to purchase, for emergencies, to qualify for a job and more. The downside is that more and more companies (insurance companies especially) are using credit and credit scores to qualify you. If you don’t have good credit (above 740 FICO scores) you will most likely pay higher rates and fees because of it.
Lenders are not the only ones using credit to qualify you!
One answer is to become an authorized user on someone else’s credit card that has a better credit rating. The process is simple, you and the other party (spouse, sibling, friend, co-worker, etc.) agree that although you are an authorized user, you will not use this account to purchase. The agreement is only to have that good credit card history added to your credit profile and nothing more. Let’s say this other person has had this card for more than five(5) years, that adds five years of positive credit history to your credit profile instantly.
But lenders know this trick, so why do it anyway?
Since 50% of your credit score is made up of using credit and credit history, this will definitely raise your credit scores! Since things like car insurance and home owners insurance are also based on having good credit scores, the impact will be to reduce the insurance premiums you will pay. When it comes to a mortgage, this may not be effective as lenders often use their own criteria and often discount the credit history when you are an authorized user.
Too many benefits not to do this!
There really is no downside. If adding that much positive credit history raises your credit scores say 100 points, you are at an advantage when you go to buy a car, furniture, appliances and more. Even in applying for another credit card, your credit report will look great. You will need to monitor that account to be sure it remains in good standing. Once you have re-established your won credit, you can drop the arrangement.
How To Stop A Credit Dispute With The Credit Bureaus
I received a call this morning from a loan officer in Florida. She said that her clients had been working with a credit repair company with good results and now qualified for a mortgage but their credit report showed several accounts being disputed.
Lenders will no longer fund loans where there are disputes on a credit report. The reason is that, by law, when an account is in dispute it cannot be used in calculating a credit score. The results show an inaccurate score until the dispute has been resolved.
Here is how to stop the dispute. Contact the credit bureaus directly by phone. Each bureau is set up to handle this directly and immediately. Simply explain that you are no longer disputing this account and would like your credit report to reflect that.
It may take a day or two before it actually shows up. You can also contact the creditor directly and explain the same thing, account no longer in dispute. They will then report to the bureaus usually within 24 hours.
My experience says do both to insure that it gets done.
Mike Day
The Credit Expert 