Insider tips and dirty secrets the credit reporting agencies don't want you to know about.
I'll share with you little known information we've discovered that will raise your credit score starting today.
Insider Secret #1
The best way to remove accurate information from your credit report is to negotiate directly with the company who is reporting it. You can make two very compelling cases for removal:
1. payment in full by installments
2. partial but immediate payment
Using a Credit Repair Service costs you money and time. If you exhaust the dispute process with the Credit reporting Agencies, you may have no choice but to negotiate directly with the lender. Do so yourself instead of using an outside source.
Insider Secret # 2
If the credit bureau refuses to remove negative information from your credit report, you have the right to have a consumer statement added to your credit report. Only do this as a last resort and only after you have exhausted all means of disputing, including direct negotiation with the company reporting on the status of your account. The consumer statement you insert into your credit report is supposed to be sent to anyone who requests your report. I find this is effective only with employment or housing as loans are score driven.
Insider Secret #3
When reviewing your credit report look carefully to see if you are the subscriber or if you are a signor on the account. For instance, a married couple shares the same credit card, but the card was issued in the wife's name. The husband might have use privileges and may have even been responsible for running up the debt, but he is not responsible for that debt and the account should not be on his credit report if negative information is being reported. Dispute this and have these accounts removed.
Insider Secret # 4
The other way to deletion is through time. The Fair Credit Reporting Act spells out the term limit for charge-offs, late payments, tax liens and judgements. After 7 years these items must be removed from your credit report. The statute of limitations for a Bankruptcy is 10 years. Comb through your credit report and dispute every negative entry that is older than 7 years. You will be surprised how many accounts you can find.
Insider Secret # 5
Credit Reporting Agencies have 30 days from the time when they receive your dispute, to respond to you. If they are unable to complete their investigation within that time, they are required by provisions in the Fair Credit Reporting Act, to delete the negative notation from your credit report. (Bankruptcy is 10 years).
If you are to be successful in pursuing the dispute route, give yourself the best chance of success by following two basic rules (6 & 7).
Inside Secrets #6
Always include a copy of your drivers license or other identification showing you are indeed the petitioner. The FCRA allows for fines and imprisonment to employees of the Credit Reporting Agencies who violate privacy policies and give your credit information to just anybody. If you don't comply with their identification process, you will not be given an investigation.
Inside Secrets #7
Knowing the Credit Reporting Agencies have 30 days to complete their investigation, always send correspondence to the Credit Reporting Agency by certified mail-return receipt required. This small fee you pay will be worth a lot if you are required to prove that the 30 day statute was violated. Keep good records and follow up on the 31st day.
Inside Secrets # 8
Get a secured Credit Card and never charge more than 25% of the limit. This limit will be the amount of money you deposit with the credit card company. Pay the balance in full faithfully every month and do not be late. You will soon see that your credit report scores will increase and you may see offers of more credit arriving in the mail.
Inside Secrets # 9
Closing old accounts usually lowers your credit score. If you have old credit card accounts which you don't use, leave them open as it adds to the available balance and this is one way to keep your scores up. Closing these accounts lowers your available balance. There are time when closing accounts is a good idea and this is usually when you move and don't alert the card company. If you close an account make sure you are the one who invokes this and not the lender. Check your credit report making sure a notation is "closed by account holder."
Inside Secrets #10
Pay your bills early. Credit scores are partially a result of a ratio between credit available and credit used. The trick is to stay in the 25% range of credit used and this can be accomplished by simply paying your bills early-before the reporting period. Late mailings many times will equal late fees and this is just another way for credit card companies to extort money from you. Pay them early. After all, it's their money. Not yours.
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