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Credit Repair
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Do it Yourself Credit Repair
When you apply for a mortgage, your lender will request a credit report from a credit reporting agency. This is usually a local or regional company. This company pulls together a credit report electronically. It usually comes from one or more of the major repositories, but it can come from several sources.
Along with the information, the local credit reporting company receives a numerical score. The score represents a composite of the borrower's credit history, employment, ability to save, and so on. The most famous of these scores is known as the FICO score, which was the model developed by the Fair-Issacs Comany a number of years ago. It is believed that the Beacon and Trans-Union scores are really scoring information provided by the Fair-Issacs Company, but have been tweaked somewhat by the others bureaus. That is partly true, but what most people don't know is that, with information streaming into their credit file almost every day, the scores can change daily. That is why someone can apply for a mortgage with one company today and have a FICO score of, say, 717, and apply with another leander a week later and that score can be higher or lower, depending on the information received at the repositories in the interim.
The truth is that the Fair-Issacs Company and the major credit repositories do not divule how the scoring model works. Due to the level of erroneous reporting to people's credit files, there has been pressure on congress lately to make credit repositories more accountable for the accuracy of the information they report AND to divulge what goes into the models, so that people can know what to do to improve their scores.
This is important because the industry is moving toward "risk-based" pricing. In other words, this means that the higher the score the less paperwork needed to prove credit worthiness and the lower the fees and interest rate.
This system while perhaps unfair to most, will be great for those with good credit. It's one way good credit risks can be rewarded. In the past year, we in the industry have already seen a dramatic reduction in paperwork requirements and "risk-based" pricing (rates & fees) has become commonplace.
If you have recently obtained your credit report and you are not happy with what was reported, you can take steps to correct the negative information on it. There are aslo proactive things you can do to improve your scores, if you are anticipating applying for a mortgage anytime soon. while I fully intend on going into details when you call, I'll give you a few hints now as to how to be proactive in improving your scores from where you are today.
First and the most obvious, pay your bills and payments on time. The second is, don't apply for any new credit unnecessarily. Every time you sign and return a credit card offering, or open that second account at a department store because you get a 15% discount, an inquiry will be generated and it will reduce your score. The third is that IF YOU MUST! maintain credit card balances, try to keep them at a level that is 35%-40% of the maximum credit limit. If the credit limit is $1,000, keep your running balance below $400. WARNING!, consolidating all your credit card payments into one can hurt you if the balance is at the credit limit. Besides, these consolidating companies (CCCs) are nothing more than collection agencies that are OWNED by the credit bureaus, KNOW IT! And last but not least, if you get into a dispute with the phone company and it isn't a large amount, PAY IT! and move on. Having one or more collections, even if they are small, can severely damge your score.
ENOUGH TALK!
CLICK & SEND
HERE
You will be sent everything you need in MS Word Format, for mild circumstances to strategies for the most severe cases known to man. It's either that, or pay some company to do it for you, in which I'll explain the downside to taking that route. Besides; nobody is going to manage your money, time, credit or for that matter, your life, better than you will, not to mention the price some companies charge. Don't worry, there's no catch; But it will cost you consistant action on your part and the mailing expenses. And yes; credit repair companies hate me for doing this. A couple of companies have asked me why I do it; and to be honest with you; I really don't know why. It might be to prove contrary to popular belief; "Everything Doesn't Have a Price", at least not Monetary. I guess that's just who I am as a human being. And don't think for one minute your situation is so bad that nothing can be done; ANY and that means ANY! credit can be repaired. Not only am I going to show you HOW; but I will be sharing with you the much more important, WHY! Because without WHY, How is meaningless.
If there's any time in which to take the following statement seriously, it is a time when it's regarding your good credit.
"If You Conform to Conventional Wisdom, The Collective Conscience
& Social Conditioning, "You’ll Have to Be Content With Mediocre Results."
THERE IS NO OTHER VARIABLE!
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