Originally posted by @Mindy Jensen:
What is your favorite way to repair credit? Have you used a certain strategy that worked really well/increased your score significantly?
I'm not looking for the credit repair equivalent of a get rich quick scheme. I'm fine with something that takes a while. I am writing about repairing your credit, and want to make recommendations that work.
Mindy,
I am glad that you are willing to study long on this one. Failure often offers the best opportunities for acquiring wisdom. I've found that quick fixes are generally less rewarding than jumping into the bones of the monster and owning him with your victory.
A broker recently told me " troy, in this life we have all been reduced to a set of numbers". I completely agree with him.
It is important to know this. Face the facts and take onus. I hope this help and motivates you. Please bear in mind that my credit is still not perfect and is now as it will always be, a work in process. Perfection robs you of the ability to improve.
I got the great idea to begin investing in 2007. You will see in my profile that this venture ended in foreclosure and total financial collapse. I thought my life was over. There was a tremendous feeling of failure, depression. I wish I was aware of BP back then.
Then I took action. I took up station in Bahrain. thought the change of scenery would do me good. I purchased six credit repair books from amazon. I even purchased a book on how to open a debt collection business. I wanted to know how they(it) earned.
Your credit score is not only a refection of who you are; it attempts to be a snap-shot of financial health. the metric seems to calculate how well you commit to past debts. How stable you are in your job. What kind of debt one is carrying and are you are in constant search for new debt. It tries to place a number on how dependable a person each person is(a risk calculator). Try to view this risk from the eyes of the investor.
First, I check a the largest percentage of you score is payment history -37 percent. Second is available credit; this the amount of credit granted in total vs. how much is being used. smaller percentages are inquiries - are you in a financial pinch and seeking to use new debt to cover it. And last not sure of the percentage is length of average accounts. The latter of these are harder to manipulate. Never close accounts in the attempt to improve credit. It will cause the inverse affect.
By the percentages listed above it is not hard to see that making your payments on time is one of the biggest things the consumer can do to improve the score. This is no accident. Your credit score reflects the risks a lender/ investor associates with granting you new debt, be conscious of this. The basics of financial sense applies here. do not take on new debt with having a real reason for it (depends on financial IQ level). In our case we would want the debt to repay itself while putting cash in your pockets, an asset. The system can be manipulated, but only with intricate knowledge of its inner processes.
Now, on to the debt collectors. debt collection in America is a multi-billion dollar business. From what I took of it, there is no really big start ups funds necessary. I say that to say, there are a lot of unscrupulous agencies out there. These guys by buy bank losses for pennies on the dollar. They hit the jack pot when you pay them in full. I negotiate all debt that are in this status.
Fortunately, our great country has laws. These laws were created for the specific reason of keep these vultures off you. The Fair Credit Reporting act are one of these. There are entire forums dedicated to just this propose. Finding like minded people, this is the key to winning. They will show you how to write proof of debt documents, or even pay for deletion. If that does not work then we settle. Remember always have them verify the debt. If they cant keep perfect records you win.
Last, it is imperative that once you start this process you keep a professional view point (as if you were you own client). Confronting ones credit is confronting ones past. To do so effectively the emotions must be tamed. Debtors will play off your sense of right and wrong. Go by that statue to law, know them well. A positive attitude goes a long way.
Hope this is helpful. Good Hunting!
Troy,
