Posts Tagged credit repair

Getting Valid Negative Marks On Your Credit Report Reversed

May 27th, 2009

businessmancallUnless it’s an errant item, negative entries in your credit report usually can’t be removed all that easily.  You can try, and that’s exactly what credit repair companies do, but there’s little guarantee that you’ll actually succeed in doing so.

For the most part, getting valid negative entries out of your credit report is a near-impossible feat.  Unless, that is, you can get yourself in a prime bargaining position.

An Ideal Scenario

Let’s say you have an outstanding credit card balance that you haven’t been able to pay the last six months.  No doubt, your credit report has already suffered, with tons of red flags created by the recent inability to settle your obligations.  Then, due to some good fortune, you came across a sufficient amount of money that allows you to settle the existing debt.  In this situation, you have a very good shot of getting most of the negative marks caused by the credit card on your credit report removed.

When you call up the bank to pay the balance in full, make sure you negotiate removal of your negative credit items as part of the deal.  With the current economic climate that sees cardholders miss out on more and more payments, the bank will usually give in to reasonable demands if that means getting the money they are owed.

Getting Help

You can most definitely do this on your own.  If you’re hesitant, though, or find it difficult to hold your own in negotiations, you can employ the help of professional debt consultants who can perform the process on your behalf.  If you get a good one, they can probably even negotiate parts of the debt removed, making whatever fee they charge no added cost whatsoever.

Rebuilding Your Credit Fast

March 16th, 2009

buildcreditWant to fix up your tarnished credit record quickly?  Do these three things:

1. Challenge your credit report

You can challenge pretty much anything on your credit report.  In fact, when you sign up with one of those credit repair services, that’s exactly what they’ll do.

Doing it by yourself isn’t all that hard either.  Choose the negative items that look the easiest to be removed and challenge three or four of them at a time.   This process will take time, especially since all three credit bureaus will have to update your reports, although once they do, you can expect major changes in your score within 30 days.

2.  Pay down your existing debt

Keeping high balances on your revolving credit, especially when you’re over 50% of your limit for each, pulls down your credit score in a significant way.  Settling your bills on time and paying them down to below 15% of your total credit limit should help ease your credit record woes over time.

3. Avoid Unsecured Credit Cards For People With Bad Credit And Opt For A Secured Card Instead

Sub-prime credit cards generally aren’t great options when you’re trying to raise your credit score.  Furthermore, they’ll often have severely low limits, constricting fees and unusually high interest rates.

A better option will be to apply for a secured credit card instead, where your limit will be equivalent to whatever amount you deposit.  Using one, you can enjoy a higher credit limit than what an unsecured card should get you, which will help with your overall credit score.