How to Improve Credit

Credit Repair

Credit repair is the process of using the Fair Credit Reporting Act to dispute negative items and get them removed from your credit report, resulting in an increase to your score.  I work with my clients to show them how they can do this on their own or hire a low-cost law firm to do it for them.  Either way, you are likely to get some positive results once your debt is paid off, and each negative item that is removed from your report will have a positive effect on your credit rating.

The FTC website provides all you need to “do it yourself” here: Credit Repair: How to Help Yourself

Another great DIY resource is the Credit Info Center.  HOWEVER, while the credit repair information is good and can help you, beware of the rest of the information.  The website has become extremely hypocritical. On one hand, they say all “debt consolidation companies” are bad, grouping all credit counseling and debt settlement companies together and publishing a long list of which ones, in their opinion, are “bad”. On this list is Credit Solutions, which I agree is one of the most notoriously shady companies with a looong list of complaints on their BBB report. My last check showed over 1,500 complaints!! Also on the list are companies which I know are providing a good service to consumers with few complaints.

Here’s the hypocrisy: Credit Info Center is now promoting “debt relief” and generating leads for these same “debt consolidation companies” they have demonized for years.. and GUESS WHO they will send you to when you fill out the form on their website for help? Yes, in the spirit of true hypocrisy, Credit Info Center is selling their leads to Credit Solutions. Might as well sell your soul to the devil.

So use the credit repair info, sample letters, etc. It’s good stuff, BUT watch out getting debt help from these guys.

Also, no need to pay $45 for a 15 minute consultation,

http://www.creditinfocenter.com/repair/Repair.shtml

Credit Rebuilding

You can re-establish a good payment history quickly by using credit in an optimal way.

Without having to throw hundreds and hundreds of dollars into the toilet each month on minimum payments (most of which is interest), you will be able to create a savings very quickly after your debt is eliminated.  You can then open 2-3 “secured” credit cards with banks.  Use these cards responsibly by charging them up to just below 50% of their limits (so you don’t get dinged on your credit score for going over 50%) and pay them off each month down to about 25%.

* You actually want to carry a balance because creditors will flag you in their computer systems as a “deadbeat” if you pay your cards off each month, as they make no money on people who do this.

If you use secured credit cards in an optimal way like this for 6-12 months during the credit repair process, you will begin to re-establish a good payment history, while keeping your DTI low and avoiding utilization problems.  From there you should be in good shape with your credit score and much better long term credit worthiness.

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Thank you for the opportunity to serve you!

Here To Be An Asset To You,

Jesse Niesen
DebtGOTOGuy.com
Debt Relief Guide Online
888-928-DEBT(3328)

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