Why Legal Credit Repair.
Your Fico Credit Score can determine if you qualify for a mortgage, if you can get a car loan or credit card. Your credit score will also determine what interest rate and or fees you pay if you qualify for financing. Therefore it is imperative that you manage your credit score just like you manage your money. In fact to manage your credit score is managing your money. A lower fico credit score can costs you tens of thousands of dollars in a home loan and even more on a credit card. That is why at least once a year you should review your credit reports to ensure nothing is being inaccurately reported. If you find negative and inaccurate information the process of removing it is called credit repair.
Legal Credit Repair.
The process of improving your credit score by disputing and removing inaccurate information from your credit bureau report is your legal right. There are many laws that protect you and requires the credit reporting agencies to make a free copy of your credit report once a year. The Fair Credit Reporting Act is one such law. This law not only makes it easier for consumers to review and improve their credit reports. The Fair Credit Reporting Act mandates the credit reporting agencies to report accurate information and how the information is to be reported. There are actually many other state and federal laws to regulate the credit bureaus and the credit repositories. These laws not only protect the consumers from creditors, they protect consumers from unscrupolous credit repair companies and they also protect and maintain the integrity of the American Banking System.
Getting Started with Legal Credit Repair.
By going to http://annualcreditreport.com not only do you get a free copy of your report from each of the three national repositories you get instructions to dispute those items you consider inaccurate. The first step is to regularly review your report. Next you should dispute any inaccurate information. It takes 30 to 45 days to get a response from the credit bureaus after they investigate your dispute. If you are not satisfied with the results you should consider hiring a professional credit restoration company. They need a copy of your credit report and the free copy you get from annual credit report.com will work.
The Credit Repair Company.
The credit restoration company will then review your report with you and begin a series of disputes on your behalf. A good professional company will not only work with the credit repositories to dispute the negative items on your report, they will educate you to properly manage and improve your Fico Credit Scores. With their experience and knowledge of all of your legal rights and options a good company can be very successful in helping you improve and repair your credit.
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Improve Your Fico Credit Scores.
To get the best credit and interest rates you must have the best fico credit scores. These strategies will help you improve your fico credit scores and qualify for the best mortgage rates, auto loan rates and credit cards. Implement these to improve your credit score today.
Legal Credit Repair.
You have the right to legal credit repair. Whether you do it yourself or hire a professional company to assist you to remove items off of your report that are either inaccurate, improperly reporting or just do not meet the legal standards required for the credit reporting agencies to follow in reporting your credit history. So the number one strategy that many people use to improve their credit scores is to dispute those items. It is an effective method especially if the you stick to it. Unfortunately, the credit reporting agencies are not eager to help you. In some cases they have been known to arbitrarily dismiss many consumers disputes as frivolous and unfounded. This deters a lot of people. It has been said that as much as 20% of all disputes submitted to the credit reporting agencies are dismissed as frivolous. That means 80% are reviewed and worked on. Chances are if you dispute the inaccuracies one or 2 more rounds that they will be properly reviewed and handled.
Reduce Your Balances and or Increase Your Credit Limits.
A second strategy almost as effective as disputing negative items on your credit report is to reduce the balances on your credit cards and or increase your limits. The balanced owed on a credit card as a percentage of the high credit limit affects your credit score. They higher that ratio the lower your score. The lower the ratio the higher the score. This factor alone can account for one client who pays his bills on time every month with a credit score of 750 while another client who also pays their bills on time every month only has a 600 score. A 750 is considered very good credit while a 600 score is fair and the consumer would not qualify for most credit programs. If they do qualify they would pay a higher costs. On time payments account for 35% of your credit score. The available credit percentage factor represents 30% of your credit score. These two strategies alone can account for 65% of your total score.
Negotiate Old Collections and Late Payments.
The older negative items are on your report the less impact they have on your credit score. To improve your fico credit score you want to remove them completely from the report. If you pay them off or make payment arrangements you create a new activity that make the negative item a recent activity therefore effectively lowering or worsening your score. This is the exact opposite of what your intentions may be. To improve your score negotiate with the creditor to pay the item off at a reduced amount and for that they must complete remove the item from the credit bureau. You must get this in writing before you send them the money. Otherwise they have no incentive to follow through and remove the item.
Finally Strategies.
These three strategies will help you improve your credit score and allow you to qualify for the best credit at the lowest interest rates. Other strategies to remember is time. The longer an account is open the more positive points you add to your credit score. The type of accounts you have also affect your score. Mortgages and installment loans have the highest value, then major bank credit followed by national department store accounts. All other accounts, though they affect your credit score they have less of a positive impact. Use these strategies to improve your credit, get a mortgage, credit card or auto loan.
Louis J.
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Legal Credit Repair.
Credit Repair is legal. Can you really improve your credit score? There are a number of federal and local laws that govern the reporting of consumer credit information. Each of these laws offer provisions for the consumer to challenge information that is reported by the credit reporting agencies that is erroneous or just reported wrong. So first we must know that credit repair is legal.
Are Credit Repair Companies Legitimate?
In the past many credit restoration companies where either out right scams, multi level marketing schemes, pyramid companies or just ma and pa shops that would take advantage of the vulnerable consumers. Today there are laws that protect the consumers against such companies. The Federal Trade Commission as well as state agencies monitor these companies and are tasked to enforce the applicable laws that govern such repair and restoration entities. Also the legitimate companies thought it important to monitor themselves so the formed trade associations like many other industries to set higher standards of protection and service for the consumer. These associations set the bar high for companies seeking to be associated with them so they can improve the image of the industry, especially member companies. So with a little due diligence it is easier to find reputable credit improvement companies that do not over charge and under deliver.
Does Legal Credit Repair Work.
Yes it does. There are thousands of people who have their credit improved with the assistance of such companies every month. I could ask you to take my word for it, but who am I to you? This is a testimony of a loan officer who submitted one of his customers to have their credit score improved and a mortgage late payment removed and here are the results:
I referred a borrower over mid July with a score of 598. Not quite 2 months later, I repulled credit to find his middle score jumped 100 points!!! And a mortgage 30 day late was taken off. The loan is going to be subbed tomorrow! Love it when that happens. I was honestly just hoping that I could get his score above 620 to do an FHA refi. After having a conversation with Specialized Credit, we decided to re-pull credit and see what we could do. After pulling credit, he now has a mid score of 680 and his 30 day mortgage late was no longer there. Not only could I do a refinance for him, I can now go conventional at a lower rate with no mortgage insurance. Saving him $768 a month by paying off credit card debt that he is now paying 14% on. Taking his mortgage rate from 6.625% to 4.875%. This also gives him 20K cash out. HUGE deal for him. He is taking care of almost $15,000 in credit card debt and getting 20K cash out for a lower payment than he is paying now on his mortgage. Thanks Specialized!!! That is a $4K deal in my pipeline!!!
Marty Blackmon
Loan Specialist
Salt Lake City, Utah
See The Benefit.
This is not just to improve a credit score. Credit restoration is all about a financial benefit. In this case the customer lowered their interest rate and saved over $750.00 per month plus put $20,000.00 in cash on top of the savings. Yes being able to improve your credit score is a great feature. To lower your mortgage payment and get cash out as you refinance and consolidate your bills is the benefit that makes it all worth while. If you are a consumer who wants to improve your credit score send me an email at louisj@howtogetthebestcredit.com or leave a comment below. All comments are moderated and we will not publish or share your contact information.
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