tak3032 asked:


I have really, really, really bad credit anything you can think of. I want to repair it but I noticed almost all of it will be cleared up from my credit report in 3yrs any ways. Should I continue and neglect the payments and wait the 3yrs or should I try to pay them. It’s been about 4-5 yrs since I last paid my creditors. Some have told me to just wait because even if I did pay back all the creditors my credit report would still show that I was past due for so long. I should just hang and wait for the 3yrs and I’ll be good to go.

Christina Costa asked:


If you have decided to fix your bad credit, there are credit repair companies that can help. This is a big decision and not one you should take lightly. On average, a credit repair company will charge you a few hundred dollars and their program usually takes a year to complete.

You don’t want to pick the wrong company and find yourself deeper in debt and nowhere closer to improving your credit. On the other hand, if you find a great company to help you that might be one of the smartest financial decisions you can make!

Let’s first of all take a look at what you should hope a credit repair service will do for you. Take a look at your credit and ask yourself what you think needs to improve. Credit repair goes beyond disputes with your credit companies and the credit bureaus.

Credit repair has been seen as something that is repairing the credit report. Now, working to repair your bad credit can also help to fix your credit report. You have rights under the Fair Credit Reporting Act to dispute any items that you feel are inaccurate.

This part of repairing your credit has been very beneficial to people who have incomplete or inaccurate information on their credit reports. This will of course only help your credit score once you get the items corrected.

This is just the beginning, repairing your credit. Although some people are not satisfied with just working to correct their credit reports. If you find a reputable credit repair company then they should also work with your creditors to have them stop reporting negative accounts.

Another thing they should do for you is contact collection agencies to have them stop reporting negative accounts. Some credit repair companies will even dispute some debts reported and find out how legitimate those claims really are.

Now, it depends on each individual credit situation just how well a credit repair company can help you. Some people might only want to get help on fixing their credit reports, while others need more extensive help and look for a company that provides full credit repair service.

Here is an important question most people ask, how can you tell if this is a reputable credit repair company? There has been a bad rep given to this industry because of many scams that have taken place. Fortunately, the fraudulent companies have been shut down. I think it is still necessary that you take some precaution and figure out if you have found a legitimate company before working with them.

Familiarize yourself with some of the laws that surround credit repair companies. The Credit Repair Organizations Act was drafted to protect you, the consumer, from any credit repair scams. They also protect your right to get any help with credit repair for your report.

There is always the Better Business Bureau (BBB) reports, they keep all complaint on file made against companies. If there are multiple complaints against a company or a low rating, proceed with caution.

Also, if you come across a company that does not list “credit repair” in their services on the BBB then also be wary of them. The nice thing about the BBB is that they have high standards for credit repair companies. If you have found a company that is possibly fraudulent, the give away is that they have not listed “credit repair” with the BBB.

As with anything you do, concerning your finances and credit, take the time to do some research. There are many reputable companies available and thanks to the internet you can find them within minutes of searching! Credit repair is possible for everyone and good credit is definitely in your future.

Abhishek Agarwal asked:


Everyday life seems very easy when your wallet is full of credit cards. But at the end of the month when the bills for the same start pouring in, you realise how difficult it is to juggle credits. You do not know which ones to pay off, which ones to carry forward, all in all, you are in a financial soup. Slowly but surely, your credit rating takes a plummeting and you will find it extremely difficult to get a mortgate for your home, or get a loan for life’s many milestones like your child’s education, that coveted new car, or any durables that you long for. Or it could be that your spouse or child may have indulged in shopping sprees you could not afford. Or perhaps there was a medical emergency in the family. So for no fault of your own, you find yourself in a financial mess.

What should be done now? Well, shove off the troublesome burden of sorting things out to the experts – in this case – certified credit counselors who are used to handling all sorts of financial complications. They will thoroughly study your particular situation and chalk out a program of removing your debt burden for you with all the personal attention you deserve. They will also explain to you the basics on which credit cards operate so that you can resist the temptations to use them day in and day out.

Since they are well aware of rules and regulations of creditors, they are in a position to advice you on how to manage repayments to your best advantage. They will also negotiate on your behalf with companies to whom you owe money to reduce the delinquent fees or late payment charges. A step-by-step repayment program is drawn up for you and you are also advised on how to keep your outstandings to a minimum. A financial discipline is compulsorily instilled in you. Thereafter, if you keep your commitment to the program, you will find that within a few months, all your debt has been paid off and your credit rating has improved miraculously.

Of course you must not think that the debt consolidation advice will be freely given. They will of course deduct their fees alongwith your monthly deductions towards debt repayment. If you give them a lumpsum every month, they will take care to distribute it to the various creditors with an optimum spread. The term non-profit means that after taking care of all overheads, the company’s accounts do now show profits. They will also educate you as to how well the credit card wheels are oiled and what you can do to prevent them running over you.

However, you need to be cautious which company you trust for the all important job. You should not land from the frying pan into the fire. It takes all kinds to make the world. Get references, cross-check credentials and do your utmost to verify the company’s trustworthiness. You could also get a few quotes from such companies, before you zero in on one. Then although you do not like the idea of incurring anl additional expenditure towards their services in your debt-ridden state, when they take you to a credit free state, you will find that it was worth every penny and more. The certified counselors will also guide you as to how your finances should be handled. That will help you consciously to stay creditworthy.

Ian Webber asked:


Whoa Nellie – Don’t Pay that Bill

Hold your horses. So you got a collection letter in the mail. You are distraught and already figuring out how to pay the collector. Shockingly, a majority of collections are paid needlessly. Resist the impulse to pick up your checkbook. Just slow it down. Credit repair requires patience – and a bit of knowledge comes in handy too.

Don’t Believe Your Eyes

When it comes to collection letters, don’t believe your eyes. Don’t write a check. Don’t call the collector. There are four essential credit repair tests you must apply before doing anything. First, do you recognize the debt? Second, is it possible it was satisfied with a previous collector or the original creditor? Third, is it beyond the statute of limitation for collection through the court system? And fourth, is it beyond the reporting period limit for your credit report?

Do You Recognize the Debt?

If you have attempted credit repair you already know that the collection industry is far from perfect. Collectors buy and sell collection accounts on a regular basis. The level of quality control at collection businesses is notoriously lax. There is every possibility that you are getting a collection notice for a debt that has nothing to do with you. Be sure.

Have You Paid the Debt?

Because collectors buy and sell debt regularly it is common for a new collector to send you a dunning letter for a debt that you satisfied with a prior collector. Original creditors often have in-house collection departments that are as lax in their record keeping as any collector. Oftentimes debts are bundled for sale at the same time that consumers are sending their payment. Your money may have gone in one door while your account was being sold out another door.

Credit Repair Statute of Limitation Shockers

Here is the credit repair fact that most people are not aware of. I can’t tell you how many otherwise well-informed people have drawn a blank on this one. The statute of limitation (SOL) for collection through the courts has nothing whatsoever to do with the seven-year reporting limit for derogatory information imposed by the Fair Credit Reporting Act (FCRA) on the credit bureaus. This can be credit repair magic. The SOL is almost always far less than seven years, and may be as little as two years. Each debt type has its own SOL which depends on the type of debt, the state in which you incurred the debt, and the state you currently live – more about this in a second.

The Reporting Period Limit

Most people in credit repair programs are aware of reporting period limits. Generally speaking the credit bureaus are directed by the FCRA to report derogatory credit events for no longer than seven years. There is a slightly more complicated method of measuring reporting period limits for charge-offs and collections which may continue to report for seven years plus 180 days from the date of original default – being the first time a scheduled payment was missed in the sequence that led to collection.

What are the Credit Repair Consequences?

If you don’t recognize the debt, it may not be yours and you should not pay it. If you paid the original collector you certainly don’t want to pay it a second time. If the debt is beyond the SOL the collector has no way to enforce the collection. This means you can send the collector a cease communication letter and he will vanish forever from your life, and you don’t have to worry about a judgment. Or, if you want to pay the debt, it is usually very negotiable once past the SOL. And if the debt is beyond the reporting period limit it is almost certainly beyond the SOL, so all of the above benefits should apply, plus you should not have to worry about the appearance of the collection on your credit report. It’s the ultimate credit repair outcome.

Credit Repair and the SOL

The SOL is not hard to check and it is central to any credit repair effort. Just get on the Internet and search for statute of limitations. You should be able to find an easy-to-read chart listing SOL by debt type and by state. Don’t forget to check your state of residence and the state in which you entered into the original agreement. The longer period applies to your case. Remember to measure the time period properly. The SOL clock always starts with the date of original default. Collectors do not reset the date when they start and restart the collection process.

Call in the Credit Repair Troops

If all of this is too much to bear, pick up the phone and call a credit repair expert. It’s your money and should not be taken lightly. If you do not have the time to cope with the process a professional credit repair company will insure that every step is taken in the proper order and that you are not paying needlessly throwing money away. When it comes to credit repair, the right way is the best way. You can do it!

Copyright © 2008 Ian Webber. All Content. All Rights Reserved.

Abhishek Agarwal asked:


Having negative credit ratings in your credit history is a strict no-no. It is something that will hinder your loan applications and get you a bad reputation when it comes to your credibility. Most financial companies will look upon you as a risky credit customer. You must be very cautious as it takes just one mistake to make all the difference between a good credit history and a bad one. So, when you have managed to somehow get a bad entry into your credit report, you should spend some time getting rid of it and setting the record straight once more.

In order to set the record right you need to first get a copy of your credit report from one of the credit rating bureaus. There are three bureaus and it is advisable to get a copy from all three of them and consolidate your own report. This is necessary because your creditors need to send in a report of you paying or not paying a bill and they are more than likely to send it to one bureau and not to the other two. If you have paid your mortgage bills and one of the three credit bureaus have not entered it into their records it is going to reflect badly in your rating. So, you need to inform them of any mistakes, with proof of your payments.

You can get a copy of your credit report online. All three credit rating bureaus have portals that facilitate you getting a report within minutes of logging in. When you see that there is a mistake in your credit report you should immediately gather all the evidence you can, such as bills, receipts and any other correspondence you may have with the creditors and send it to the credit rating bureaus and have them rectify their records.

Remember to send your letter and documents via certified mail because the credit rating companies have a mean streak and sit on the case while your ratings get distributed among any financial agency that you may have applied to for a loan. You should understand that the credit rating companies are permitted to make your report available to any financial company, but not to the general public. If they can do this they are obliged to keep their records up to date and reprimand the company that has not reported your correct financial report to them.

Erasing a negative credit rating is not an easy job. It cannot be erased, so to speak, however, it can be raised but this does take some time such as 6 months to a year. You should try to keep your rating at about 750, like most Americans. If your rating falls below 650 you are likely to be refused any financial aid you may require from any institution or company.

Abhishek Agarwal asked:


It was I the 1950′ that a man called Fair Isaac decided to come up with a system to determine which individuals were worthy of credit and which ones were not. He called his system a credit rating and this has become a standard practice in the United States known as FICO. The credit rating was assigned to individuals based on their record of repayment of loans and debt to all kinds. This little 3 digit number can be the cause of you getting approved for a loan or being disapproved.

From that time on everything anyone des in the US with respect to the use of any kind of financial instrument, including credit cards, even loans and mortgages, reflects in your credit history and this is a snap shot of your credit worthiness. The Fair Isaac Company receives this data every month from creditors and compiles this information after which a complicated mathematical formula is applied, which demonstrates your credit worthiness. Though this information is not meant for public viewing it is available to any financial institution you may seek any financial aid from.

With the average rating of a US citizen being 720, it is common knowledge that the higher the number goes the better is your credit rating, or you worthiness of a loan. On the other hand if your credit ratings falls below the 650 mark the more likely you are of being denied a loan. Unfortunately this number also hiders your ability to get rental accommodation. People with credit scores lesser than 600 are very high credit risks and are almost certain to be denied any form of financial assistance from any institution.

It is, however, not a rule of thumb that you will definitely get disapproved due to your credit rating. Creditors are well aware that your ratings can go wrong due to a number of factors. Medical bills could be one of the reasons that you could not keep to your repayment schedule. Accidents which required much needed automobile repairs are another reason for you to skip payments. There is an endless list of reasons that are not in your control and so your credit ratings go wrong. The IFCO does not take these into account, but some credit companies do when considering your loan application.

Nevertheless it is important to stick to a repayment regime in order to maintain a good credit score. Bad credit history will only hamper your efforts in securing a much needed loan in times of emergencies. So, maintain good credit records with all three debt bureaus. And if your credit history is not too good it is time you started working on improving it.