Credit Repair Guide

Find Complete Information on Credit Repair

How Long Does Credit Repair Take?

Written By: sgv327Gdh - Feb• 19•14

When people ask how long it takes to do credit repair they are usually referring to the amount of time it takes to get EVERYTHING negative off their credit reports.

The simple answer to that is “I Don’t Know” as a matter of fact nobody knows. I like to use analogies when explaining many things having to do with credit repair. The analogy that come to mind when answering this question is the Russian roulette analogy.

Russian Roulette – If you have never heard of Russian Roulette, it is a game using a gun that has a bullet in one chamber, the participant spins the chamber and then pulls the trigger at his head not knowing if the gun will go off. Well credit repair is like that. You send in a dispute letter and you have a 1 in 6 chance of the item that you dispute coming off your credit report. If it doesn’t come off you still have a 1 in 6 shot (no pun intended) of getting the item off and so on. Sending out multiple disputes doesn’t increase your odds all that much it just gives you one more opportunity to attempt to get the item off. You can technically have 20 tries at Russian roulette with nothing coming off as you can have 20 rounds of credit repair without an item coming off. That is however pretty unlikely.

As with Russian roulette we have found that eventually the items will come off, the only way it doesn’t come off (or you don’t shoot yourself) is to quit before you pull the next trigger

Credit repair will take as long as it takes, it depends a lot on the individual or company that is doing it, do they know what they are doing?, are they using the same tactics over and over?, are they following up in a timely manner? The important part is not to quit

People tend to put off things that are not pleasant and things that are tedious, credit repair is both unpleasant and tedious so before doing it you must have a plan. Without a plan you are setting yourself up for failure

Most people, professional or not will take over a year to get most of the items off, this time frame can easily hit 2-3 years if you lack the experience and/or fortitude to keep pressing on.

The better prepared, educated, and tenacious you are the faster the process will go.

What is Involved When Doing Credit Repair Yourself

Written By: sgv327Gdh - Feb• 19•14

Attempting to do credit repair can be a very rewarding experience, there is nothing like the feeling of getting an item removed from your credit report, especially if you have been trying to get the item removed for several months. However, the process of credit repair can be very tedious and frustrating, which adds to the thrill when it finally works.

It typically takes 4-6 hours per month for someone to do their own credit repair, the time is broken down as follows;

1 – Obtain, read, and review your credit reports – This takes about an hour for most people

2 – Analyze reports and determine credit repair tactics or strategies to use – This takes about 30 minutes per strategy and most people will need to use 4-5 strategies for each round of letters (This time is reduced in future rounds as the hardest part is determining the tactic to use)

3 – Creating and writing your initial disputes for each item for all three credit bureaus and each creditor on your report – Average about 10-15 minutes per letter, longer for the first letter but duplicate letters going to different creditors will be easier as you just have to change the contact name, address, and account numbers

4 – Make copies of all the letters and organizing them into a file system (1 hour)

5 – Hand addressing, envelopes, filling out certified mail cards, and going to the post office to mail them out (1 hour)

6 – Sit back and wait – It takes between 30-45 days for any results to make it’s way through the system and hit your credit report, once all the results hit your report you will repeat the process

As you can see if you dedicate a little bit of time towards your credit repair project you can get through it in just a few hours. So just grab some coffee and let’s get started.

Can Credit Repair Help You Earn More Money?

Written By: sgv327Gdh - Feb• 19•14

12The job market in today’s environment is probably as tight as it has ever been and employers have looked for different ways to differentiate between multiple job candidates that can provide them with a little insight as to what type of employee they will be.

In a recent survey over 60% of employers obtain a credit report prior to making a final hiring decision, this credit report, if filled with negative items, can easily cause an otherwise stellar candidate to lose their opportunity to get a job.

This scenario happens everyday and is an unmeasured cost of bad credit and in many cases causes an avalanche affect as not having a job will increase the probability of additional credit issues which will make the next job interview that much more difficult.

Can Potential Employers Pull My Credit report?

The Fair Credit Reporting Act makes it clear that employers have a permissible purpose and thus can pull credit reports

What are employers looking for when pulling a credit report?

Although there has yet to be any research that supports a lower business risk by hiring someone with credit issues most employers when asked this question say the reason and concern has to do with theft and/or embezzlement, many employers also feel that if a person is irresponsible in their financial life they may carry over that behavior into their business life.

How can credit repair help you earn more money?

Are you up for a promotion or trying to land a job that provides you with better pay? If so you may lose that opportunity because of items on your credit report, as a matter of fact some employers are letting people go due to credit issues developed after the employee is already working for them.

Credit repair can help alleviate this risk by working on removing the negative items that are showing up on your credit report. The less items showing the better chances of you either retaining your current job, getting that promotion, or getting your new dream job.

There is no better time to start thinking about credit repair than right now.

How Does Bad Credit Affect My Life and How Credit Repair Can Help

Written By: sgv327Gdh - Feb• 19•14

13Bad credit has a dramatic effect on so many aspects of your life that many people don’t even realize how far and deep it reaches. One of the biggest affects bad credit has on your life is that it increases the costs of just about everything you are involved with.

Credit Cards – Do you see all those great commercials asking you “What’s in your Wallet?” These are credit card companies touting their latest and greatest “green, gold, blue, platinum, black,silver, gold, pearl, turquoise or other uniquely colored” credit cards with very low interest rates that have no annual fees, allows you to earn points and even forgive an occasional late payment. Well these cards are for the financial elite. If you apply for a credit card with credit issues and are lucky enough to be approved you can expect to pay interest rates somewhere in the high 20% rates, instead of earning points you will have to pay them an annual fee for the privilege of paying them huge late fees and/or over limit fees the second you are late. In a society where you can’t do anything without a credit card people with bad credit are forced to endure the huge expense of carrying these little plastic cards of death.

Auto Loans – With bad credit instead of qualifying for the newest super gas efficient hybrid car you are forced to settle for a 6 year old second, third, or fourth hand car with questionable history. For the privilege of driving this beater upper you are forced to give 10 personal references so if you are ever late they can call everyone on your friends list and harass them for your payment. You get to pay for frequent repairs and of course pay for much more gas than if you had that nice shiny new hybrid. You also have much less money in the bank because the lender wanted to hedge their bets and made you put down all of your savings as a down payment

Auto Insurance – As if paying through the nose for your new used car wasn’t enough your auto insurance company decides that they should charge you a higher rate as well, why? Well everyone else is doing it so why not!

Home Loans – If you are lucky enough to have enough expendable income after getting gouged on credit cards and your car to somehow qualify for a mortgage chances are you will be required to pay a larger down payment and an interest rate well above market rate which over the life of the loan will cost you 10’s of thousands of dollars in added interest payments alone.

Renting – For those of us not lucky enough to be able to finance a home we will have the opportunity to rent, unfortunately you won’t be able to choose where we rent from, that decision is up to the landlord. Chances are you will not live where you desire, maybe a little further away from work (more gas money) maybe in a rougher part of town (higher grocery bills) you may need a larger deposit and the landlord may ignore your credit if you ignore the conditions of the property.

Utilities – Now that you have a place to live chances are you will have to pay large deposits for all your utilities cutting directly into the little savings you have.

Cell Phones – You forgo the phone companies telephone line and decide to get a cell phone but here to you are stuck with a lousy prepaid service that doesn’t have the newest phones but still charges you an arm and a leg for last years models. All because you can’t qualify for the best services that offer the best phones, at least not without a huge deposit

Bank Accounts – Now that you are in your new place you realize you want to start paying your rent using a check since the cost of money orders have gone up recently, you apply for a bank account and you find out that because of your credit history you only qualify for a savings account and you can’t even get a debit card for that.

Employment – Now that you are paying more for your car, home, insurance, gas, and credit cards you start thinking that maybe you need a job that pays more, you go on a couple of interviews which you pretty much aced but then a few days later the company tells you that they went in another direction, they chose someone with the same qualifications except they had better credit. You plead your case but they can’t change their mind as it is just their policy. You are now stuck at your old job with your old income but now you are spending a lot more on the basics.

Business Start Ups – You get a bright idea and tell yourself that you are going to get out of the rat race, you have a great business idea that you know deep inside will take off and allow you and your family to finally enjoy the better things life has to offer, you go to the bank to get a small business loan for your new business that just can’t fail and behold they tell you that you just don’t have good enough credit, you should try next year.

Relationships – You go home to tell you wife/husband that the stupid bank said no, both your dreams are ruined and she/he just can’t take it anymore and wants a divorce. Over 50% of marriages end in divorce and most issues have to do with finances.

You can start fixing this problem today, don’t ignore your credit any longer, someway, somehow you must start thinking about how you will resolve these credit issues as they will not go away. Sure everyone says that in 7 years everything will be cleared but in the real world companies re-age debt all the time and the only way to fight it is with credit repair.

Credit repair can remove negative items from your credit report, as negative items are removed your scores go up, as your scores go up you face less financial issues. Learn to live life on the cheap again and consider what you will do for credit repair.

Questions You Must Ask When Repairing Your Own Credit

Written By: sgv327Gdh - Feb• 19•14

Do you review your credit reports?

Get your head out of the sand and look at your report, you can’t begin to fix it if you don’t know what is wrong

Have you disputed errors on your report?

Look at everything and develop a plan of action, everything needs and should be 100% correct and accurate. Every name spelling, every address, balances and dates late on all account should match between all 3 credit bureaus, if they don’t then dispute them as they are not accurate and the smallest inaccuracy can cost you points

Are you requesting validation of old debt?

Just because you may remember a debt doesn’t me you are liable to pay for it. If the creditor doesn’t have proof the debt exists then you don’t have to pay it. It is simple contract law….They must be able to prove the debt belongs to you and they have the right to collect on it. If you feel obliged to pay it just call me up and send me the money as I can’t prove its your debt either nor do I have a contract with you. If that sounds silly why would you pay a collection agency who just “says” you owe them money?

Are you aware of the Statute of Limitations in your State?

If your state statute of limitations says you are not responsible for a debt after 4 years (all states are different) why should you pay it in year five or six? Again if you are giving money away let me know.

Are you negotiating/settling debt with your creditors?

If the creditor can validate the debt then you might consider negotiating a payment on the debt, see if they will do a pay for delete, this means you will pay on the account but only if they delete it from your report

Do you know the amount of debt you are in?

Do not overextend yourself, life happens to all of us and one wrong turn can put you in financial crisis. Reduce your debt load and start planning for your next life event that will affect your finances (eg. Job loss, divorce, sickness, etc)

Do you have a plan for getting out of debt?

Start with making more money and spending less, then start paying down your credit cards. You can use the snowball payoff program which seems to work for the most people. This is where you focus on one credit card at a time until is paid off and then move on to the next.

How much is interest costing you?

When you know this number it adds to the desire to pay off your balances, imagine what you can do with that extra money every month

How are you handling your current credit?

Just because you have a limit doesn’t mean you can spend most of it. Your credit limit is not the speed limit. It is not acceptable to be just under or right at your credit limit. The lower your balance the better your scores will be

Once you know the answers to these questions you will be well on your way to repairing your own credit as many of these items need to be understood in order for you to have success