Repairing Your Credit Is Possible

Know your rights and be eligible for any type of loan. It’s just a matter of being one step ahead of the circumstances. We give you an insight on how it works.

Advertising Credit Repair

Much is advertised about credit repair and as a product on the line for sale, there are tons and tons of hype and sales copy. Once we get through the initial curtain, little is left but a software program you must buy, someone who does it for a fee or a set of letter templates for a “convenient” address to the credit bureaus, for a certain price as well.

The Credit Bureaus

They are agencies that are making business and who sell their reports with your information to the subscribers. A subscriber may be any store, bank, car dealer or lending company. They work in good faith, but somehow or other the amount of incorrect and outdated data rises to around 35%. This is where credit repair comes in.

What The Advertisers Don’t Say

What they don’t tell you when they offer you a product is how the credit bureaus function, and how the entries are done. They don’t say that the credit agencies don’t like to be addressed in a legal way because it makes them feel that you are threatening them with taking legal action if they don’t correct the entries.

So, How Do We Address Them?

The best way is to write as what you are: A normal citizen who needs credit and wants to inform about certain inaccuracies. Even if you are an attorney, write to them in plain English, stating what you want from them in a polite way. That’s all there is to it.

Get Your Credit Report

You have the right to ask for one report per year, free. And even though the bureau may charge you a fee, it is never more than 15 dollars or so. Once you have your report, start doing your homework. Check out inaccuracies, outdated data, like debts that you have already honored and errors due to mistaking your for somebody else with your same name.

Detection Completed

Now make sure you have proof of what you are mentioning as wrong, for them to check out and correct accordingly. Any slow payment or debt should not remain on your report for more than seven years and bankruptcies, not more than ten years. Everybody has a right to change their attitude towards credit, so you don’t need to pay today, for yesterday’s misdoings.

And Now, Build Up

Now that you’ve screened out “wrongs”, begin to build up the “rights”. You can do this by taking very small loans, easy to pay and for short terms. Each one will add points to your score, making you eligible for larger loans very soon.

The report does not register the amount of the loan, but will take good note of your duly payments. So, we mustn’t forget that loans, after all, are an important part of our everyday life.

Mary Wise, a professional consultant at Badcreditloanservices.com with twenty years in the financial field, prevents consumers from falling into the hands of fraudulent lenders. In her website you will find more useful tips and interesting financial articles on this and many other related topics.

This entry was posted on Sunday, March 25th, 2007 and is filed under Credit Repair. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
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How Credit Scores Affect Mortgage Applications

With a good credit score an applicant will receive prompt response from many lenders, all of them offering low interest rates and low down payment options. The loan amount offered also may be high. On the contrary a low credit score would result in a lot of rejection from various mortgage financers. Because creditors wouldn’t come forward easily to give credit to individuals that have a history of difficulty in repaying existing loans. After all, creditors take risk when they finance mortgages against the credit history of a debtor. Naturally, they will wish to remain on the safe side and pick up less risky ones that have good credit histories. A good credit score means less chance of missing on payments and therefore less risky.

But there are some real risk takers that will come forward to finance mortgages for individuals with bad credit scores. They would charge high down payments and always high interest rates though. They may also fix additional charges for every little paper work and may charge high closing rates. The loan amount offered will also be considerably less. The individual with poor credit scores will not have much choice but to accept the terms and conditions as there are no other alternatives. This is a tight situation and to avoid this you must have a good credit score.

People with bad credit may fall in to the trap of ’secured loans’. Secured loans are the ones where the loan applicant offers an asset as collateral security. The lender becomes secure about the repayment of the loan and not the borrower. Securing a loan with bad credit score becomes easy only when the applicant is willing to offer some asset as collateral security. This again is a very dangerous situation where an individual runs the risk of losing his entire collateral asset in case of failing to pay the loan installments in time. An individual should always avoid such type of a loan.

Resort properties normally require large amounts of finance which a person with bad credit may find it difficult to obtain. So it is always advisable to keep your credit score high. Incase the credit score becomes low due to unavoidable financial reasons it can be improved upon. There is no need to lose hope simply because a person has a low credit score. If the property that he intends to buy has good equity he should go out and try to obtain finances for it. There are many sub prime lenders willing to offer their services.

For a review of your credit report as it relates to a mortgage loan and a consultation on the best loans available to you, give us a confidential, no obligation and no cost call.