Having a bad credit score can even stop you from getting a job. Andrea who has worked worked for small agencies and has her insurance license was turned down for a job with
Farmers Insurance not because she did not qulify but because she had bad credit.
Companies see you as a risk if you can not manage you life how are you going to help them in their business.
No at times job losses, health issues are factors that effect your credit.
But you may also be paying for someone elses mistakes. Reports show that 79% or 1 out of 4 credit reports contain errors and in accurate information.
Have good credit will save $300 per month on a $300,000 30 year mortgage it will also save you on your car payments, credit card payments, ect…
So as you can see having good credit will save you on average of $500 or more per month.
Step #1 is to get your FREE annual credit report at http://annualcreditreport.com you can also mail in a request to Annual Credit Report Service at P.O Box 105281, Atlanta, GA, 30348-5281 or call them at (877)322-8228.
Under the Fair Credit Reporting Act you are required by law to get your FREE credit report from all the the major credit reporting agancies. For details visit http://ftc.gov/bcp/menus/cosumer/credit/rights.shtm.
Equifax Information Services, LLC
P.O Box 740241
Atlanta, Ga 30374
TransUnion Consumer Solutions
P.O BOX 2000
Chester, PA 19022-2000
Step #2 Under the Fair Credit Reporting Act your are require by law to the right to verify items on your credit report.
All major credit agencies must verify items on your credit report with in 30 days or these items must be removed from your credit report by law.
You can find template Credit Reporting Act letters in which you can use to fix your credit score. You want to avoid using the same verbage but use these as more of an outline.
See Debt Free For Life: The Finish Rich Plan for Financial Freedom for Credit Reporting Act letters.
Step #3 Fixing your credit is a legal issue. It is not what is true but what you can prove. Even if what you say is true you will also need to prove it.
When dealing with credit reporting agaencies you will need to use certified Mail in order to document the dates which are required by Fair Credit Reporting Act.
Credit Report vs. Credit Score: Credit Report is not the same thing as a Credit Score. You are required by law to get a FREE get report Credit Scores on the other hand you must pay for.
How your Credit Score is complied?
- 35% Payment History
- 30% Amount Owed
- 15% Length of Credit History
- 10% New Credit
- 10% Trypes of Credit Used
Why Cutting up your Credit Cards will hurt your Credit! Many experts will suggest to cut up your Credit Score.15% of your Credit Score is made of of the history of your credit cards.
So the older the credit card the better. Many of you may have heard expert suggest to cut up your credit cards but when you card expired you will get a new card in the mail.
Cutting up your credit cards will not help you, you will need to cancel your credit card but this will hurt your credit.
30% of your Credit Score is made up of amount owed. Now what has been happening is credit card companies are cutting people credit over night.
So you do not want to spend more than 33% of your credit. If you have spend more you want to pay down your credit card down.
Pay your bill twice a month: Because of the way that credit reports are compiled it is helpful to pay your credit bills twice a month.
You get your bill which has the amount and then the due due. So you will take the amount owed and divide that by 2. Lets you are Visa payment is $100 and the bill is due on the 30th of the month.
So you will pay $50 on the 15th and another $50 on the 30th fo a total of $100. Because of the way credit scores are compiled this will improve your credit.
When shopping for lines of credit do it quickly: You have two kind of Credit Score (1) soft inquiry – This is when you check your own credit this will not hurt your credit score. (2) hard inquiry – Which will hurt your credit score this is what happen when looking for a mortgage or a car loan.
When shopping for a loan you will want to buy quick so you do not hurt your score.
Why Template letters may Hurt your Credit Score: We talked about you can use template letter to fix your Credit but you should only use them as an outline if you are
going to use them at all.
The computer systems that these credit reporting agencies use are very advanced. If you send a template letter or if you letter look similar what others have used your account will be flaged and will be very difficult to repair your credit at that point.
This is why we suggest using a professional credit repairing agency like U Can 2 Financial Services.
Procrastination will hurt your Credit Score: When repairing your Credit Score there are many correspondence between you and the Credit agencies with times line.
What I have notice is that people let thing fall through. How many of us have started something that we did not finish? It is best to hire a professional agency to repair your credit we suggest using U Can 2 Financial Services.
Not Fixing your Credit in the Proper order: Things need to be done in the proper order if these agencies are not following state and federal law you will need to make a legal case.
If you are going to ask delinquency from the creditor you will need to do this before dealing with the credit agencies.
Persistence pays off: Many people give up to soon and are not willing to fight for their rights. I at one time coach people how to get faulty charges removed from their credit
these were charges of $3,000, $5,000, $15,000.
Most people gave Rick Enstrom faught and got a $9,000 charge removed.
This again, is why we suggest finding a profession agency like U Can 2 Financial Services
to do this for you.
Document Everything: If is not what you say but what you can prove so you want to document everything.
Failing to validate before payments: Many people are quick to get credit to stop calling them before making payment you have the right to make sure the debt is yours.
Re-Set Payments: Debt is a legal issue and if the debt has gone without payment long enough you are then no longer required by law to pay the bill.
In many cases it is 7 years but this law will very from state to state.
Now if you repay the debt this will reset this debt and by law you will then have to repay this debt.
One trick many debt collection agencies use is to get people to only pay $1 dollar which re-set the debt.
Not finding a Professional: Credit repair may seem simple but one simple mistake or letting something fall through the creaks can drastically hurt you.
So you will want to hire a professional agency like U Can 2 Financial Services.
There are legal loopholes that may FREE you from any obligation of making further payments on your debt. The first thing you should do is to see if you are one of them by clicking here
For more tips on getting out of debt check out David Bach’s Debt Free For Life: The Finish Rich Plan for Financial Freedom.