Step Introduction In today’s credit-driven society, most Americans suffer from negative credit and other financial obligations that limit our participation in the world of finance. From negative reporting with the banking system to insufficient credit with the bureau. The importance step of a positive credit rating is becoming clearer today than at any other time. We’re becoming a paperless society that strictly uses credit cards and ATMs for everything from hotel reservations to car rentals to online purchases.
I mention this to clarify to you readers the importance of not only having good credit but also understanding how to maintain it and make the most of your good credit. I personally believe the reason for the high number of failed credits is a lack of financial education. Most Americans don’t know the teachings of their parents or the like on how to handle and manage money.
A man should have as many credits as he makes in a year, so if you make $50,000 a year, you should have at least $50,000 in credit available if you become incapacitated or unable to earn. You will have enough credit to cover your expenses. The old adage says it takes three months to screw up and generally nine months to fix so cover yourself up.
In order to have this bearing or advantage there are definitely some financial management steps that need to be implemented, I will discuss some of them later in this book but first I will go into the details and analysis of 10 simple steps for A1 credit how to get it and also how to maintain it. Notice I said simple is not easy because there will be work required and strong will required to receive the best results. *What is your credit score 560? 678? 720? The average US credit score is 692.
STEP 1
Get your three credit reports from each of the three major credit reporting agencies. You may be entitled to three free reports in certain circumstances depending on the state you live in and if you have been denied credit, employment, or credit benefits. Feel free to check out these online resources for possible free reports. anualcreditreport.com, consumercredit.com, experian.com/ra, equifax.com/fcra.
These agencies include but are not limited to Experian, Equifax, and Trans Union. Each bureau collects data about you and your credit pattern and compiles it into a scoring system called Fico and combined in April 2007 they collectively work together to create Profits. The advantage is that your scores from all three bureaus are combined into one. Nobody but the bureau knows how they actually get the scores they do, but what I’ve done through research and personal experience establishes the key elements that raise and lower these scores, which I’ll mention later in this self-help manual.
STEP 2
Thoroughly review each Report, check for inaccuracies in the bureau’s report data about millions of people every day and the accuracy rate is very low. With this being said you will most likely notice some inaccuracies on your personal credit report.
- First read your report from top to bottom beginning with the summary page to inquires on that’s pulled your credit. Each section can be disputed if any inaccuracies appear.
- Next Make sure your address is up to date your name is spelled correctly with all prefix’s and suffix’s if any, such as if you are a junior, II, III, or so one make sure its reported. Dispute any discrepancies.
- Review all accounts positive and potential negative accounts check for balances, account opened date, any late payments, and make sure your account number is reported correctly.
- Review all inquires, these are the companies that pulled your credit with your consent. The section you are most concerned about is the one that reads inquires viewed by others these are the inquires that count against you.
STEP 3
Contact the company that reports inaccurate information. Usually this can get the item removed but due to frivolous disputes with so many companies and all so-called credit repair companies, companies are more prone to fighting you before they remove the item, they may ask you to get a police report and sign a waiver fraud that must be notarized by a notary.
If you do have an item that doesn’t belong to you or it’s inaccurate, go to step four. If you’re only trying to remove items from your credit that actually belong to you and aren’t being reported incorrectly, stop, I have another solution to change your credit.
- You can contact all your creditors and utilize the arbitration cause in each agreement to accept credit. What this allows you to do is in time of need arbitrate your debt for a lesser amount than you owe.
- You may want to see if the creditor offered any type of depression insurance which would allow you to pay the minimum amount due with no interest fees.
- Worst come to worst you could use my manual to create a brand new credit file legally. If this interest you contact H.E. Company’s website and sign up. There are other companies that offer this service I unfortunately do not know any reputable ones that I could refer you to so check out mine.
STEP 4
Now if you have found any inaccurate information reported to the credit bureau about you, then now is the time for us to proceed to setting up an investigation or debating the inaccurate information, with the bureau. As I suggested earlier, it is wise and can prove beneficial to give the company reporting the misinformation a chance to correct it. You are not required if you don’t want to, you can dispute it directly with the bureau that reported the inaccurate information.
In your dispute, you want to make sure that you are as specific as possible about the dispute on an account that is not yours, but you may have information to help prove the reason for this dispute as another and add information regarding this. If you make your dispute online there will be a multiple choice dispute, if you do your dispute by mail or telephone you would like to provide as much information as you feel is necessary to file your case.
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Credit bureaus are legally required to investigate all disputes unless they are seen as frivolous and the main reason for dismissing a dispute as frivolous is that if the same item has been disputed before for the same reason it doesn’t mean you can’t dispute the same thing twice it only means if You dispute the item as not your property then you must dispute it as a different reason a second time.
The bureau has 30 to 45 days to return a decision on your dispute, leaving creditors an initial 30 days to respond to an investigation. Most companies don’t have the time, resources, or debt that isn’t significant enough for them to reply to a response and in this case the item is removed because of the FCRA law. If the company responds back to the bureau, you can provide any documentation you have to challenge their claim to the bureau.
STEP 5
Reduce your debt to income ratio. Pay all balances on existing open accounts. Usually the rule of thumb is 30% of your credit limit is used and anywhere from 60 to 70% is available. This reflects good budgeting habits for the bureau as well as for potential lenders.
STEP 6
Have at least three to five trade lines reporting you one of them being major credit card visa, master card, American express, discovery and so on. Others may be retail accounts, furniture stores, jewelry stores or so on, you will need at least two accounts with a two to four year history behind them a good payment history.
STEP 7
Add experienced accounts to your files. This is a very common way to increase your credit score very quickly by 50 points or more. If you have a friend or relative who has a credit card that has been around for several years with good payouts and there is no delay in asking the person to add you as an official signer, they are not required to allow you access to a credit card they can accept cards and discard. You just want the history on your credit file so that in a few months you can turn around and get your own line of credit.
It was the law practice congress that passed a law thirty years ago that allowed wives to be placed in their husbands’ accounts giving them their own creditworthiness. Today today we still use this practice.
STEP 8
Stop running on your credit because the questions count towards your score. If you are looking for car, house, loan financing, etc., put together a financial package that describes your ability to pay back debts yourself. In this package you may want to have a copy of your latest payslip or 1099 for self-employed, as well as most recent copies of all three credit reports along with scores purchased by you or from the mortgage company. You may want to add an income statement, list of financial liabilities, and perhaps a copy of your bank statement. This should be enough information for any lender to base a credit decision on.
STEP 9
Arbitration and negative accounts and bad debts. This includes collection of late payments, rebates, and other potentially negative things. Words of wisdom communication is the key to success in any field saying that to let you know if you contact your creditors before they are in arrears or even if you are one or two thirty days late if you talk to creditors and ask questions sometimes they don’t want to tend to Remove negative information for you because they value your business and understand the importance of good credit in today’s society.
STEP 10
Pay your bills on time. Now that you’ve raised your credit score negotiating your debt to pay off your balance, the only logical thing to do now is to continue paying your bills on time. Some of the clues I’ve learned through my extensive research on personal credit is that you get a favorable return from your lender when you pay on time if you want to raise your credit limit and lower your interest rates as long as you’ve been paying on time for several months. they usually have no problem helping you with the request.
Try to make all payments in a 25 day cycle this will reduce interest costs or at least keep them to a minimum and will also guarantee favorable reporting to the bureau.