Hello Everyone and welcome to 2009! I have been pouring over the many  e-mails that my students and followers of this blog have been sending to me. I will address some of the more common questions and topics each week here at the blog. One that keeps coming up is; what to do if you have been caught up in this financial crisis that most Americans have found themselves in.

   First off, Don’t Panic! I know that losing a home, losing a job, being WAY behind on credit card payments, or having a car repossessed  may seem like the end of the world. Trust me…is isn’t. This too shall come to pass as they say.

 

   Today, many Americans are falling on economic hard times.  Through no fault of their own, companies have downsized and passed out pink slips to countless good employees.  Even if new positions are found the next day, they generally come with a significant pay cut. Thus, it is impossible to meet mortgages, pay student loans, or keep up with minimum credit card payments. Even when the economic crisis is over, many individuals will need to know how to repair credit following financial hardship.

 

   Generally, credit report repair can take up to seven years to accomplish.  Credit history, good or bad, stays on the books for a significant amount of time. Potential lenders need to know how money issues have been handled in the past, how finances are today, and whether individuals are a good credit risk for tomorrow.

 

   However, knowing how to repair credit is the first step in rediscovering financial freedom and getting out from under the burden of debt for good!

Begin by:

 

·      Living within your means

·      Getting rid of temptation

·      Making payment arrangements with creditors

·      Combining debt

·      Seeking advice

 

   Learning how to repair credit may sound simple in planning, but the execution may be one of the most difficult tasks you have ever undertaken.

 

Live within your means

   In today’s society, it is so easy to get into the mode of buy now, pay later.  Department stores sometimes offer significant discounts if customers apply for the store credit card.  Even the federal government wants to give incentives for lenders to provide more credit for potential borrowers. Of course, any savvy individual knows how this philosophy can spell financial disaster. 

 

Instead of falling into the financial trap, live within your means and discover how to repair credit by simply saying “no” once in awhile.  For example, if a daily latte does not fit into the family budget, start putting coffee in a thermos before going to work.  If going out to eat, followed by a movie on Friday night means gambling on whether the utility bill can be paid this month, make a simple dinner at home and rent a movie.

 

Getting rid of temptation

   Learning how to repair credit means getting rid of temptation to keep digging in that pit of financial woes.  Make sure you cannot spend it, if you do not have it. Yes, it is time to put ALL of the credit cards through the shredder.  If the pain is too great, a good friend will be glad to do the deed for you. Then, you can escape the trap the majority of Americans have fallen into over the last few years.  Pay cash, or walk away.

 

Making payment arrangements with creditors

   The next step in learning how to repair credit is contacting all the companies to whom you owe money.  Set up a feasible plan to eradicate the debt.  Most people are willing to work with customers who are genuinely making an effort to escape the debt trap. They simple need to have a plan you can both live with, until the debt is resolved.

 

Combining debt

   One of the biggest obstacles to learning how to repair credit and reach financial freedom is the massive interest rates on credit cards.  Most people would faint if they truly understood the interest being charged each month, and how many years it will take to achieve a zero balance with only the minimum payment.  Multiply the problem by six or seven credit cards and it is now a financial disaster!

 

   One of the first lessons in learning how to repair credit is combining debt.  Many card companies offer cheap interest rates on balance transfers. Naturally, they would rather be making a profit than leaving the charge to a competitor. By transferring debt from a credit card with higher interest, you might save hundreds, if not thousands, of dollars over time.

 

Seek advice

   Last, but definitely not least, seek the advice of a credit repair expert.  For example, if you live in Texas, you may want to look up credit repair San Antonio in the yellow pages or online.  The key is to find someone who has the knowledge to help you get out of debt ASAP.  Then, credit repair can begin in earnest, as the wounds of debt begin to heal.

 

   Look, there are many credit repair books, tapes, seminars, and services out on the Net. Of course I am bias to my credit repair advice, but there are also some very reputable sources of info. Just realize that you can do better than most so called credit repair companies. 

Stay tuned!

Your Credit Score Insider 

Mark

www.CrushingTheCreditBureaus.com

 

   Okay, now that the holiday season is behind us…it’s time to get started on cleaning up bad credit that you may have accumulated during 2008. Let’s face it, this was one of the worst years on record for personal financial chaos.

   When I speak at real estate investing seminars across the country, one of the common questions that comes up is whether or not to hire a lawyer ( not some legal sounding dispute letter writing company) to challenge bad credit items. Here is my take on the subject:

   When repairing your credit score there are legal credit repair services and options to make this happen. There are rules that the credit card companies and banks have to follow when placing items on your credit report. There are also rules about having negative marks removed as well. There are companies that can help you have these negative marks removed from your report and get back your credit score.

These companies and organizations are well versed in the area of credit repair and credit scores. Their only job is to help people remove negative marks and fix the errors that credit bureaus regularly make on consumer credit reports. Unfortunately, these negative marks lower your credit scores greatly and can be extremely difficult to remove and receive assistance from the credit bureaus.

Common mistakes that are found on many credit reports include:

• Incorrect names or names that you have never gone by

• Misspelling your name or parts of your name

• Wrong addresses or address or states that you have never lived in

• Wrong job and employment information

• Mixing family information, accounts added because of the same last name, but that are not yours.

• Incorrect account numbers

• Credit limits that are too high or too low

• Payment history showing missed payments when there have been none

• Accounts that are not yours

• Bank and credit card names that are incorrect

• Showing accounts that are open that have been closed by the consumer

• Accounts showing closed by credit granter when they were closed by the consumer

• Duplicate accounts, the same account showing up multiple times on the same report

• Missing accounts that are in good standing that are not showing

• Incorrect balances of accounts

• Accounts that should have fallen off the credit report already

• Collection accounts that have been paid or are not yours

   These are just a few of the errors that are made all the time on consumer credit reports. Almost anything that the credit bureaus and credit card companies can make a mistake with, they will. You have to check your report at least once a year to make sure that it is right and error free. All these different mistakes can add up and drastically lower your credit score.

   Even when some errors could be in your favor, they should still be fixed and shown to report accurate information. It is all a part of your credit report and all information should only pertain to you and reflect accurately your credit history. That is when a professional legal credit repair service is very useful.

   They will help you write and create the letters to send to have these errors fixed. For example, when you appeal an item on your credit report you can request that you be sent proof that the account is yours. If the credit card company or bank can not do this, then the account must be removed immediately. They are only given a certain amount of time to do this and if they fail to do so, then the credit bureau must remove or correct the information.

   Also, accounts can only stay on your credit for so long, after that they must be removed. These items and many more will be taken care of by a legal credit repair service. If you are looking for fast credit repair, then using a legal credit repair service will make that happen. They can help you recover your credit score and get you on the path to financial recovery.

Bottom Line?

Give Yourself The Gift You Deserve To Have The Highest Credit Scores Possible! After All, You Deserve It. Your Financial Future Deserves It!

If You Want In-Depth Tips, Techniques, and Information About Cleaning Up Your Bad Credit, Explore My Site. http://www.crushingthecreditbureaus.com