Credit Card ’s Talk

1. Deleting Errors in 48 Hours

This is the absolute fastest way to correct errors on your credit report and raise your credit score. However, it can only be done through a mortgage company or a bank. If you apply for a home loan and find errors on your credit report, request the loan officer to conduct a Rapid Rescore. But don’t mistake it for the credit clinic tactic of multiple dispute letters.

The Rapid Rescore strategy requires proper paperwork. You need proof that the item is incorrect. It must come from the creditor directly. For example, a letter stating the account is not your account, a letter stating the account was paid satisfactorily, a release of lien, a satisfaction of judgment, a bankruptcy discharge, a letter for deletion of collection account or any relevant evidence.

This is the same documentation a bank or mortgage company would require for the credit accounts anyways. The difference is, now you can improve your credit score and receive a lower interest rate. The results are not guaranteed and will run you about $50 per account.

2. Deleting Negative Credit

This is the infamous area where you’ve heard of all the scams. Credit repair clinics charge an arm and a leg and promise a clean credit report. Sometimes even a new credit profile! People spending hundreds, or even thousands, of dollars for something they can do themselves.

Removing errors is simple. Deleting negative credit that is accurate requires advanced methods. But that is not the scope of this report. So I’ll focus on the deleting the negative errors.

Credit report errors easily disappear by using a simple dispute letter. If you have the paperwork proving the error as mentioned above in Rapid Rescore, send copies of that along with the dispute letter. This will make the credit bureau’s job easier and you will get faster results.

If you don’t have the documentation to prove the error(s), send the dispute letter anyway. According to federal law, the credit bureau’s have a reasonable time to validate your claim. They will contact the creditor for verification of your dispute. Then the account will be reported accurately - or deleted. It has been generally accepted the reasonable time to complete this task is 30 days.

If you’re not the do-it-yourself kind of person. Or don’t have the time. You could hire someone who is very economical.

3. PiggyBack Someone’s Credit

This is a fast and great little credit score booster. But it requires a very trusting relationship. Simply put, someone else adds you to their credit account. For example, when applying for a credit card, you may have seen the section to add a card holder. If your trusting person adds you, their payment history is now reported on your credit report too. If they have perfect credit, now you have a perfect account.

To make this more effective, use an aged account. Imagine if your trusted person has a 10 year old credit card account with a perfect payment history and a balance of only 50% of the credit limit. Wouldn’t you love to have this on your credit report? The easy part is your trusted person just calls the credit card company and requests a form to add a cardholder. Once completed and activated, their entire account history and future is now firmly planted on your account. Imagine if you secured 3-5 of these accounts - especially installment accounts. Your credit score could sky-rocket!

The challenging part? Finding the trusted person. Since you already have a low credit score and bad credit, how eager will someone be to make you a cardholder? Even your parents don’t want you to damage their credit. But, no one says you need to possess the card! In other words, your trusted person could add you as a card holder and never give you the card or PIN or any information. Since the bills and all account information is still mailed to the trusted person’s address, you won’t know anything about the account. This scenario could land you many trusted persons. And you still benefit with a higher credit score.

4. Playing Round Robin

This strategy is one of the oldest credit building techniques around. It used to be accomplished with secured savings accounts. But now, it’s much easier with secured credit cards. In fact, I’ve used this method myself.

Here’s how it works: Take ,000 (or what you can afford) and get a secured credit card. Once received, get a cash advance of 70% of your credit limit. Get a second secured credit card. Once received, get a cash advance of 70% of your credit limit. Get a third secured credit card. Once received, get a cash advance of 70% of your credit limit.

Open a new checking account with the final cash advance. Use this account only for making payments on your three new credit cards. If you make your payments on time every month, your credit score will increase because you now have three new perfect payment credit cards. (Initially, your credit score might drop a few points due to the rapid, multiple accounts being opened. However, be patient because within 4 months of no new accounts or any delinquencies of any account, you will see your credit score increase. Mine increased 60 points in 60 days!!)

5. Pay on Time

This one is quite obvious. But after 12.5 years in the mortgage business, I discovered it still needs repeating. Your creditors were gracious enough to loan you money. Now pay your damn bills! If you don’t, your credit score decreases. EVEN IF ONLY 30 DAYS LATE!

That’s right folks. For some reason people think, I’m only a few weeks late. What’s the big deal? Well, for the loan company, if you pay late but consistent, they make a lot more money with late fees and more interest (if a simple interest loan). For you, your credit score is damaged. If you think long-term and credit score, I’m certain you would not have a cavalier attitude.

6. Pay Down Debts

This seems like an obvious method, doesn’t it? But it is not as transparent as you might think. Remember, we’re playing with high-level statistics and probabilities which evaluates and forecasts trends in your behavior. Here’s what you do…

Never pay off your revolving debt in it’s entirety! Isn’t that a surprise? Think about it. Your credit score is a reflection of your ability to manage your credit. Paying off your debt is not managing your debt. If you have a zero balance, how can you manage it? You don’t. It no longer exists. And you cannot manage what does not exist, right? Therefore, in terms of credit score, you have demonstrated your ability to swiftly pay off accounts to avoid managing them. Thus, slightly decreasing your credit score.

One exception, of course, is if you’re over extended to begin with. Pay off what’s necessary to make your credit profile look great. Then manage the remaining credit.

7. Don’t Close Accounts

Even if you pay off revolving debts, do not close the account. The longer an account is open with no negative reports, the better it reflects in your overall credit score. This is due to the weighted-average in the credit score formula. Many credit experts suggest a balance of 30% of your credit limit. That’s ideal. But you can go as high as 70% and still maintain a healthy credit score.

8. No New Credit

You must be vigilant in your credit behavior if you want the best credit score. Therefore, do not get any new credit unless it is absolutely necessary. Each time you apply for credit, an inquiry is added to your report. This usually drops your credit score slightly. When you have fresh credit, there is no track record how you will manage (or pay) this account. Therefore, it’s a higher risk which results in a minor drop in your credit score. Remember, your credit score is about risk assessment.

Here’s what you do: obtain credit for your housing, transportation, college or continued education and 3-5 credit cards. That’s really all you need for personal credit. If you want more credit, request a credit limit increase on your current cards rather than apply for new ones.

9. Maintain A Mix of Credit Types

If you show you can handle different types of credit at the same time, you are rewarded with a great credit score. In other words, get installment loans like vehicle, personal loan or mortgage. Get revolving credit like credit cards: Visa, Mastercard, Sears, Sunoco Gas, Costco. By mixing it up, you demonstrate you can manage your credit because you will have short term and long term credit with a fixed payment. As well as a variable monthly payment on your credit cards.

Keep these accounts open with a balance of 70% or less and paid on time and you will witness your credit score climb to great heights.

10. Don’t File Bankruptcy or Foreclosure

Here’s the most obvious advice: Don’t file for bankruptcy or foreclosure. These stay on your credit report for 10 years and always decrease your credit score. The older the bankruptcy or foreclosure account becomes, coupled with re-built credit history, the less of an impact they play on your credit score.

Contrary to popular beliefs, you can legally delete a bankruptcy and foreclosure. It’s not easy. But it’s possible. See the advanced methods for that solution.

To quickly rebuild your credit history after a bankruptcy or foreclosure, use the Round Robin strategy above and get secured credit cards. Now you can even get a car loan or mortgage right after bankruptcy.

? 2004 David Czach.

——– Editor’s Note ———-

Dave Czach has 12 years experience in the mortgage business and a Bachelor’s Degree in Real Estate. He can be reached at http://myLoanHero.com/go.cgi/daveczach.

This article may be reprinted without compensation provided there are no changes whatsoever to the article, the copyright notice and the complete Editor’s Note. Any reprinting or duplication without these conditions is copyright infringement.

——– Editor’s Note ———-

——– Editor’s Note ———-

Dave Czach has 12 years experience in the mortgage business and a Bachelor’s Degree in Real Estate. He can be reached at http://myLoanHero.com/go.cgi/daveczach.

1. Deleting Errors in 48 Hours

This is the absolute fastest way to correct errors on your credit report and raise your credit score. However, it can only be done through a mortgage company or a bank. If you apply for a home loan and find errors on your credit report, request the loan officer to conduct a Rapid Rescore. But don’t mistake it for the credit clinic tactic of multiple dispute letters.

The Rapid Rescore strategy requires proper paperwork. You need proof that the item is incorrect. It must come from the creditor directly. For example, a letter stating the account is not your account, a letter stating the account was paid satisfactorily, a release of lien, a satisfaction of judgment, a bankruptcy discharge, a letter for deletion of collection account or any relevant evidence.

This is the same documentation a bank or mortgage company would require for the credit accounts anyways. The difference is, now you can improve your credit score and receive a lower interest rate. The results are not guaranteed and will run you about $50 per account.

2. Deleting Negative Credit

This is the infamous area where you’ve heard of all the scams. Credit repair clinics charge an arm and a leg and promise a clean credit report. Sometimes even a new credit profile! People spending hundreds, or even thousands, of dollars for something they can do themselves.

Removing errors is simple. Deleting negative credit that is accurate requires advanced methods. But that is not the scope of this report. So I’ll focus on the deleting the negative errors.

Credit report errors easily disappear by using a simple dispute letter. If you have the paperwork proving the error as mentioned above in Rapid Rescore, send copies of that along with the dispute letter. This will make the credit bureau’s job easier and you will get faster results.

If you don’t have the documentation to prove the error(s), send the dispute letter anyway. According to federal law, the credit bureau’s have a reasonable time to validate your claim. They will contact the creditor for verification of your dispute. Then the account will be reported accurately - or deleted. It has been generally accepted the reasonable time to complete this task is 30 days.

If you’re not the do-it-yourself kind of person. Or don’t have the time. You could hire someone who is very economical.

3. PiggyBack Someone’s Credit

This is a fast and great little credit score booster. But it requires a very trusting relationship. Simply put, someone else adds you to their credit account. For example, when applying for a credit card, you may have seen the section to add a card holder. If your trusting person adds you, their payment history is now reported on your credit report too. If they have perfect credit, now you have a perfect account.

To make this more effective, use an aged account. Imagine if your trusted person has a 10 year old credit card account with a perfect payment history and a balance of only 50% of the credit limit. Wouldn’t you love to have this on your credit report? The easy part is your trusted person just calls the credit card company and requests a form to add a cardholder. Once completed and activated, their entire account history and future is now firmly planted on your account. Imagine if you secured 3-5 of these accounts - especially installment accounts. Your credit score could sky-rocket!

The challenging part? Finding the trusted person. Since you already have a low credit score and bad credit, how eager will someone be to make you a cardholder? Even your parents don’t want you to damage their credit. But, no one says you need to possess the card! In other words, your trusted person could add you as a card holder and never give you the card or PIN or any information. Since the bills and all account information is still mailed to the trusted person’s address, you won’t know anything about the account. This scenario could land you many trusted persons. And you still benefit with a higher credit score.

4. Playing Round Robin

This strategy is one of the oldest credit building techniques around. It used to be accomplished with secured savings accounts. But now, it’s much easier with secured credit cards. In fact, I’ve used this method myself.

Here’s how it works: Take ,000 (or what you can afford) and get a secured credit card. Once received, get a cash advance of 70% of your credit limit. Get a second secured credit card. Once received, get a cash advance of 70% of your credit limit. Get a third secured credit card. Once received, get a cash advance of 70% of your credit limit.

Open a new checking account with the final cash advance. Use this account only for making payments on your three new credit cards. If you make your payments on time every month, your credit score will increase because you now have three new perfect payment credit cards. (Initially, your credit score might drop a few points due to the rapid, multiple accounts being opened. However, be patient because within 4 months of no new accounts or any delinquencies of any account, you will see your credit score increase. Mine increased 60 points in 60 days!!)

5. Pay on Time

This one is quite obvious. But after 12.5 years in the mortgage business, I discovered it still needs repeating. Your creditors were gracious enough to loan you money. Now pay your damn bills! If you don’t, your credit score decreases. EVEN IF ONLY 30 DAYS LATE!

That’s right folks. For some reason people think, I’m only a few weeks late. What’s the big deal? Well, for the loan company, if you pay late but consistent, they make a lot more money with late fees and more interest (if a simple interest loan). For you, your credit score is damaged. If you think long-term and credit score, I’m certain you would not have a cavalier attitude.

6. Pay Down Debts

This seems like an obvious method, doesn’t it? But it is not as transparent as you might think. Remember, we’re playing with high-level statistics and probabilities which evaluates and forecasts trends in your behavior. Here’s what you do…

Never pay off your revolving debt in it’s entirety! Isn’t that a surprise? Think about it. Your credit score is a reflection of your ability to manage your credit. Paying off your debt is not managing your debt. If you have a zero balance, how can you manage it? You don’t. It no longer exists. And you cannot manage what does not exist, right? Therefore, in terms of credit score, you have demonstrated your ability to swiftly pay off accounts to avoid managing them. Thus, slightly decreasing your credit score.

One exception, of course, is if you’re over extended to begin with. Pay off what’s necessary to make your credit profile look great. Then manage the remaining credit.

7. Don’t Close Accounts

Even if you pay off revolving debts, do not close the account. The longer an account is open with no negative reports, the better it reflects in your overall credit score. This is due to the weighted-average in the credit score formula. Many credit experts suggest a balance of 30% of your credit limit. That’s ideal. But you can go as high as 70% and still maintain a healthy credit score.

8. No New Credit

You must be vigilant in your credit behavior if you want the best credit score. Therefore, do not get any new credit unless it is absolutely necessary. Each time you apply for credit, an inquiry is added to your report. This usually drops your credit score slightly. When you have fresh credit, there is no track record how you will manage (or pay) this account. Therefore, it’s a higher risk which results in a minor drop in your credit score. Remember, your credit score is about risk assessment.

Here’s what you do: obtain credit for your housing, transportation, college or continued education and 3-5 credit cards. That’s really all you need for personal credit. If you want more credit, request a credit limit increase on your current cards rather than apply for new ones.

9. Maintain A Mix of Credit Types

If you show you can handle different types of credit at the same time, you are rewarded with a great credit score. In other words, get installment loans like vehicle, personal loan or mortgage. Get revolving credit like credit cards: Visa, Mastercard, Sears, Sunoco Gas, Costco. By mixing it up, you demonstrate you can manage your credit because you will have short term and long term credit with a fixed payment. As well as a variable monthly payment on your credit cards.

Keep these accounts open with a balance of 70% or less and paid on time and you will witness your credit score climb to great heights.

10. Don’t File Bankruptcy or Foreclosure

Here’s the most obvious advice: Don’t file for bankruptcy or foreclosure. These stay on your credit report for 10 years and always decrease your credit score. The older the bankruptcy or foreclosure account becomes, coupled with re-built credit history, the less of an impact they play on your credit score.

Contrary to popular beliefs, you can legally delete a bankruptcy and foreclosure. It’s not easy. But it’s possible. See the advanced methods for that solution.

To quickly rebuild your credit history after a bankruptcy or foreclosure, use the Round Robin strategy above and get secured credit cards. Now you can even get a car loan or mortgage right after bankruptcy.

? 2004 David Czach.

——– Editor’s Note ———-

Dave Czach has 12 years experience in the mortgage business and a Bachelor’s Degree in Real Estate. He can be reached at http://myLoanHero.com/go.cgi/daveczach.

This article may be reprinted without compensation provided there are no changes whatsoever to the article, the copyright notice and the complete Editor’s Note. Any reprinting or duplication without these conditions is copyright infringement.

——– Editor’s Note ———-

——– Editor’s Note ———-

Dave Czach has 12 years experience in the mortgage business and a Bachelor’s Degree in Real Estate. He can be reached at http://myLoanHero.com/go.cgi/daveczach.

On the way home from work, Tom looked at a short list on his ?to do list? and began sequencing the list into a logical travel pattern to minimize crisscrossing. Sunday grilling with family and guests were an important event around the pool while cooling off and just chilling and relaxing and disengaging from the challenges and stress from work. This would be another great weekend.

While at the check out in the grocery store, the total rang up $192.52. Tom had given their other credit card to Tricia in the morning so she could make her stops as well. ?Sir?, the check out lady said seeing he had a credit card out, ?will that be credit or debit?? Tom said, ?credit?, as he swiped his card. Some moments passed. ?Hmmmmm?.? The check out girl said, ?Do mind swiping your card again, this one didn?t take.? Tom swiped his card again with the same result. Tom knew there was a $5,000 limit on this card and nothing was owed as he settles up every month like clockwork. In a panic, not believing what was happening, thinking it was just a machine malfunction Tom pleaded with the check out girl while unconsciously raising his voice to ?try it one more time!? She does and says, ?Nope, didn?t go, do you have another card?? she asks. Tom says, ?no, I shared that with my wife this morning.? The clerk says, ?Well sir, we have a big line up behind you, you?ll have to push your cart over to the service desk and perhaps they can help you.? Embarrassed by what was transpiring Tom pushes the cart over to the service desk and in further panic, calls Tricia on his cell phone.

As Tom would soon find out, he had been mugged in his sleep. Violated as if someone had pistol whipped him and took all his money and destroyed his credit rating in the process all in one full swoop. This story is repeated many times every day of the year over and over. Lives are interrupted. Yes there is a new law regarding identity theft and yes there are remedies to resolve the issue. However, now instead of having a great weekend with family and friends, he now needs to put on his fireman?s hat and gear to fight a wild fire threatening to destroy his good credit. The point is there is a street savvy criminal element that is out to take as much as they possibly can from you. You are just another mark. Bonnie and Clyde would be considered a couple of pikers compared to this scum. There is the matter of ?universal default? where if you a delinquent on one card all the other credit card interest rates increase. A victim must be proactive. Much depends on it. The Federal Trade Commission web site on Identity Theft is a good place to start. This is no substitute for the phone work and letters you will need to employ perhaps over a two or three year period to fight your way back. This is where you will need to invoke your own credit repair program.

Can you totally eliminate this debacle? No, but you can make it tougher. There are steps. A few measures would be: (1) Get a Post Office Box where no one will be able to rummage through all those credit card offers and later pick that applied card up out of your mail box using a newly supplied phone number to activate. (2) Buy and use a shredder for any and all personal information that formerly was exposed to self-appointed garbage can divers looking for your financial information. (3) When a vendor wants the ?Three number code? on the back think twice about sharing it. Some pin numbers are stolen by looking over your shoulder. (4) Check your credit file frequently with all three bureaus. Monitor your credit file. (5) Require that any user of the card needs to show on the spot identification. (6) Don?t run dates of birth when running a credit report this is too much information. (8) Be careful with your information. Credit scores are utilized for granting and quoting mortgages, car insurance, car purchases and all can be adversely effected by a low credit score, whether it is your fault or not. (9) Keep a lower limit credit card for any online or impulse purchases. Lower the hit.

To get satisfaction, you will need to file a POLICE REPORT. Unfortunately, many of the offending perpetrators turn out to be family members and the victims are reluctant to file a POLICE REPORT, which will put the perpetrators in jail. Do not make your information available to anyone in your home. It would be like leaving thousands of $20s, $50s and $100 dollar bills hanging out on top of tables, all over the floor or sticking out a drawer. The temptation is just too great. Make it real tough for ANYONE to hurt your credit rating. No police report, no coverage from the credit card companies and there you are an even bigger victim. Mugged while sleeping by someone in your own home.

Sleep with one eye open. Avoid getting mugged while sleeping. Credit repair is no fun. Limit your exposure. If you find yourself a victim, file a POLICE REPORT and get busy.

Dale Rogers
http://www.brokencredit.com

Dale Rogers is a thirty-year mortgage veteran and frequent contributor to the Broken Credit Blog The BCB is a free website created to assist the general public with information about credit repair and responsible mortgage lending.

http://www.BrokenCredit.com

Having good credit can open up many doors for you and your family including approval for a mortgage or car loan and a lower interest rate based on your past experience of paying back your debt in quick time.

If you are looking for ways to improve or keep up your good credit rating, here are some tips.

Pay Your Bills on Time

Obviously, this is an easy one; however we all have financial difficulties from time to time. If you find yourself having difficulties paying your bills on time, the best thing you can do is contact your lenders and alert them of the situation. You can be put on a payment plan or have a deferment for a couple of months.

Don?t Go Over Your Head with Credit

Don?t take out too many credit cards or too many home loans. Even if you don?t have that much on your balance, a credit card company will look at having too many credit cards in your possession as a negative. While each creditor is different, usually three credit cards, two loans and a mortgage are seen as a responsible amount of credit.

Have a Balance on Your Credit Card

In order to build good credit, you need to show the credit card companies that you buy and then pay off your bill. If you have a credit card with no balance, they can?t predict your credit history.

Christain Cullen is a successful webmaster and writer. He has over 350 websites online which offer help or information on a diverse range of subjects, from 1031 Exchanges to Pet-Birds to Flying Schools to Plasma TV.

His latest online Directory can be accessed @ skoozee.info.

Everyone is welcome to visit and there is a contact page for any questions you may have.

Credit card accounts that you aren’t using are a temptation that many consumers think could be a big financial risk. Closing accounts you don’t use helps you avoid temptation. You can also avoid credit fraud or annual fees by closing accounts that you no longer use. However, this must be done the proper way or you could end up having problems.

Make Sure It?s Closed

Don’t just cut up your cards and throw them away or send them back to your lender. It’s important to follow up to make sure your account is really closed. For people planning on obtaining a vehicle or mortgage, following up is an important step. If you are counting on having the account closed but you don?t make sure you may risk to apply for a financial product you shouldn?t and getting declined will affect your credit even more.

The First Steps

First, call your credit card company’s customer-service number on the back of the credit card. Let the customer service people know you are closing the account. Ask for an address and a person or department to whom you can send a confirmation letter regarding your cancellation. Follow up with a short letter confirming the cancellation.

It may Take Some Time

Credit card companies will take their sweet time closing your account. Don’t be surprised if you get phone calls from them offering better rates or perks. Wait a couple of months and request a copy of your credit report to see if the account was closed. Be sure the report states that YOU requested to close the account.

If the report says the account was closed by your creditor, it could negatively affect your credit report. Ask the credit card company to fix the report if they’ve made this mistake. It may sound as just a simple fact, but it is one that may lower your credit score significantly so do make sure this gets fixed as soon as possible.

Think Ahead If You Plan to Apply For a Loan

If you are closing accounts in preparation for applying for a mortgage loan, do it at least six months in advance. Open accounts are considered ?potential? credit by lenders, and it could affect your ability to qualify. However, a mistake added to your credit report could also cost you, so be sure to follow up.

Closing unused credit cards can bring many benefits to your financial life; however, you need to do it in such a way that it won?t affect upcoming financial transactions. As a general rule, do it only if you don?t plan to request any financial product for some time and check that the closing of the account is actually completed.

Sarah Dinkins is an Expert Loan Consultant in the financial industry that helps people to repair their credit and get approved for home loans, unsecured personal loans, student loans, consolidation loans, car loans and other types of loans and financial products. At http://www.badcreditfinancialexperts.com/article/ she is continually adding new finance articles useful for those in need of professional advice.