Browsing Category: "Clean Credit"
Credit Problems? Why Have A Clean Credit Report?
Credit Problems? Time For A Clean Credit Report!
It is so easy for people to judge others who have Credit Problems. They may have a Clean Credit Report and have never faced a life circumstance that turned your financial world upside down. But you can’t think about that nor worry about it. Whether you used your credit cards with reckless abandon or you faced a horrible situation such as being laid off, divorced or a medical problem-it is ok. There is a chance to fix your credit in the near future. If only these individuals would learn not to spend money that they do not have then their finances would never reach a state of ruin. It is too easy to be on the outside looking in and offering these simplistic explanations. There is so much more to the story.
Why should you repair your Credit Problems?
There are several reasons why you really need to be proactive and start to begin the process of getting a Clean Credit Report.
1-Saving money on interest – When you have a low credit score, you will pay more in interest on all loans you have. This can add up to thousands and thousands of dollars in even one year.
2-Lower Insurance Rates – Do you realize that when you have a low credit score, you pay more for even auto and home insurance? Part of the underwriting process is to check credit and it is an automatic higher premium. Even if you have a perfect driving record, you will pay more!
3-Higher Security Deposits – Cell phone companies, utility companies, internet companies etc will check credit to determine a deposit. The worse your credit is, the higher a deposit you will have to pay. Usually after 12 months of on time payment, you will get your deposit back.
4-Paying Cash – There is nothing wrong with paying cash for everything and this is a goal to shoot for but what happens when the car breaks down or you have an emergent need and do not have the cash available? With a low credit score, you will be unable to qualify for credit. You should always have an emergency back up and this is a huge reason to correc those Credit Problems and shoot for a Clean Credit Report.
5– Purchase Power – Lets face it. Having bad credit either makes it impossible to purchase a car or house. It can even make it impossible to rent an apartment! Why continue to deal with that vrs just starting the credit repair process?
6- Positive Factor – Think of how much better you will feel when you have great credit and don’t have to always worry about what may happen next. This is huge.
Well Then Where Do I Begin?
Read the posts here on Improve Credit and this one on Credit Disputes. It will help guide you in the right direction to start on the path to having a Clean Credit Report and ending your Credit Problems.
Clean Credit? Improve Credit? Rebuild Credit? How?
Many people ask, “how can I get Clean Credit, Improve Credit or Rebuild Credit?”
Many people believe that they can’t get clean credit or even improve credit on their own. They feel that going to a credit repair agency is their only option. This is false. I won’t ever say that it is ‘easy’ to do-it does require time, it requires you to be active and keep good records and follow through but if you take it one step at a time, it is not overwhelming and you will feel a huge sense of accomplishment when you see things falling off your report and your credit score going up. To improve your credit score, on your own, is a very powerful feeling. You’ve been in a bad place and now is the time to start the rebuild credit process and start fresh!
For more detailed information see the previous post on pulling your credit report and credit disputes. And this previous post on how to improve credit.
There are far too many steps to list on one post so I’ll focus on credit disputes. Once you have your credit reports (see link above for details on where to get them) in hand, it is time to begin. You really should prepare yourself for the process. Depending on how much credit repair you need to do, you need to have either one binder with dividers for the three CRA’s (credit reporting agencies) or a binder per CRA. You will want to copy or print two copies of your credit report so you can make notes on the copy and keep one untouched. Every single letter you send out should be placed in the binder as well as any notes you make about issues on your credit report. Every bit of correspondence that is mailed back to you should be placed in the binder. You will forget steps you have made so you need this information all contained.
The second thing you need is patience. To clean and improve your credit it takes time and the 30 days the CRA has to give the lenders to respond to your dispute will seem like it is a year. Just think of all the months that have passed with poor credit and now you are taking the steps to rebuild your credit. While it seems like you aren’t doing anything… things are happening in the background.
Now there are two theories on disputing. Some people believe you should dispute everything-even if you know it is your account/issue. They believe that they are one side of the equation and the lender can verify the account is reporting accurately and then the tradeline stays on your report or if they fail to respond within the 30 days, it is their issue-they had their chance and now it comes off your report. The other theory is if you know it is your debt, then man up and take care of it. I’ll leave you to which viewpoint you subscribe to.
When you send your letter for the credit dispute, you can make it very simple.
My name is xyz, my address is xyz, my date of birth is xyz. Credit report # is xyz. (It is optional to include a copy of your Drivers License but know that you may get a request back asking you to provide it)
I am disputing the following items listed on my credit report as they are not mine:
Item 1: list account information as shown on report.
Item 2:
Now when you get the letter back from the CRA with the list of items they updated or deleted, you can dispute again, for a different reason but it is possible you may get a letter back saying ‘already verified’. The success of a 2nd dispute varies but it is always worth a try-especially if you know the item is reporting incorrectly.
More steps to improve and clean your credit will be coming. There are many steps you can take to rebuild your credit and credit disputes is just the beginning. Shortly you will have the answer to “Can I Clean Credit, Improve Credit or Rebuild Credit?” YES YOU CAN!
TaTa
