You will be surprised how easy and uncomplicated credit repair can be when you just apply yourself and follow the golden rule…”treat others the way you wish to be treated”
Having bad credit and low FICO credit scores is serious business, and fixing that problem should be done in a business-like manner. Picking up the phone and yelling at the lender’s customer support representative is not going to help repair your credit; in fact, it may make it worse. Think about the person on the other end of the phone. Oftentimes they are simple, hard working people who take a lot of crap everyday on the phone. Not to mention they probably don’t get paid very much and work in a small cubicle in some windowless call center.
I discuss in other postings how to handle these type of folks when you make a phone call to them, however for now I want to discuss what to do when you send out a letter to a creditor.
When you write a letter to anyone other than the credit bureaus (more on them later), make sure that your words are simple, concise, and professional.
A simple credit repair letter can help you in a variety of ways:
1. Reduce your debt by negotiating repayment plans with your lenders, in writing. Especially in the current meltdown of banks, Wall Street, and the general market, this is probably the BEST time to be negotiating with your creditors. Debt negotiation letters can settle your debts, and erase bad credit, for a fraction of what you currently owe. Your lenders will always want to recoup some of their losses, as opposed to having to write all of off your bad debt. A simple letter can be very powerful in reducing the amount of money you owe, and perhaps avoid bankruptcy for you.
2. A well-crafted letter can also stop collection agencies and attorney debt collectors from harassing you. It is your right to not be called in the middle of the night or while you are at work. These companies sometimes “buy” your debt from the original lender, for a percent of the value. Get these annoying parasites out of your life by putting it in writing.
3. Stop identity theft with a fraud alert letter. If you suspect that an ID thief is using your personal identifying information to open a new credit account for their personal gain, place an “initial fraud alert” on all three of your credit reports (TransUnion, EquiFax, and Experian).
This can only be done if you feel your personal information has been compromised. The initial fraud alert letter requires that lending institutions call you at the phone number listed on your credit report to confirm any new transactions, effectively stopping any new ID theft, at least for the next 90 days.
4. Raise your credit score by removing inaccurate or negative information from your credit report. Write to the credit bureau that is distributing the bad information, and spell out exactly why the data should be deleted from your report. Perhaps you have paid off a loan that your report shows as outstanding. Always include any copies of proof you may have, such as cancelled checks showing timely payments. It never hurts to include the consequences that have resulted from the credit bureau including the inaccurate information as well.
Be sure to make a copy of all credit repair letters and any attachments for your own files. It is all good evidence that you are working to establish a good line of communication with your creditors.
The impact of your credit repair letters will not be instantaneous. But in a month or so you will likely find that your credit report will reflect the requested changes, that the identification theft has stopped, or that your lenders are negotiating in good faith with you in good faith to reduce your debt. Keep in mind that you are repairing not only your credit, but also your good name and reputation.
The pen is mightier than the sword.
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There are many strategies, tips, and techniques available on the Internet on how to repair your bad credit. Unfortunately most of them are old, outdated and ineffective!
Having great credit scores is THE most effective way to improve your finances and financial independence. When you build and maintain excellent credit, you control your future.
Discover how to repair bad credit and improve credit scores.
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