Credit Repair - 13 Tips to Improve your Credit Score

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The Top 13 Credit Myths That Will Cost You Your Credit Scores And Thousands of $$$$

description

Credit repair isn't a secret skill or process only available to credit repair companies. You have the power and the right to repair your own credit score. Credit repair is critical to saving money on insurance, loans, and credit cards, but that's not the only reason to repair your credit. You've probably seen advertisements for credit repair on television or heard them on the radio. I've even seen credit repair signs on the side of the road. Don’t let anyone fool you into thinking you need to hire a professional to repair your credit. The truth is, there is nothing a credit repair company can do to improve your credit that you can’t do for yourself. Save some money and the hassle of finding a reputable company and repair your credit yourself. The next steps will show you how.

Transcript of Credit Repair - 13 Tips to Improve your Credit Score

Page 1: Credit Repair - 13 Tips to Improve your Credit Score

The Top

13 Credit Myths

That Will Cost You Your

Credit Scores And

Thousands of $$$$

Page 2: Credit Repair - 13 Tips to Improve your Credit Score

#1 If you have bad credit, there is nothing you can do

}  The big banks would love you to believe this because they make a lot more money off of people with damaged credit.

}  Whether it’s a bankruptcy, repossession, foreclosure, collection account, charge off or late payment, you have options.

}  We have a video that explains these 3 ways, and the simple steps to take.

}  There is a law called the Fair Credit Reporting Act, that allows ALL Americans to change or delete an item from their credit report for 3 main reasons.

Watch the video here: http://bit.ly/CreditRepair

Secret

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#2 Making a lot of money will improve your credit report and scores

This is incorrect. Income is not a factor in your credit rating therefore your credit scores will have

no impact by how much you make.

It is not uncommon for people with high incomes to have low credit scores, and many people with

lower incomes have high credit scores.

The amount you have in the bank or

investments has no impact on your credit

either.

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#3 I don’t need credit

}  Your credit file follows you everywhere you go.

}  Unfortunately more than 60% of employers use credit files and background checks when hiring employees.

- When you go to buy a car, it’s right there with you. - When you go to buy a house, there it is. - Even when you go to get insurance, or just rent an apartment it follows you around.

Damaged credit creates serious roadblocks in life.

We show you how to remove those roadblocks.

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#4 All of your

credit

reports

and scores

will be

the same

}  You guessed it... this is false! It’s not unusual for reports to differ from bureau to bureau. Many creditors only report to one or two of the three main credit bureaus. If an account does not show up on one of the three credit reports, the report missing that account may have a different credit score than the others.

}  If you have a missing account and it’s in good standing, you’re losing out on it helping your credit report and credit score. Now if it is a negative account, having it missing from 1 of the 3 reports can help that credit score! This is why many people have 3 credit scores that vary greatly from one another.

Credit Report

Credit Report

Credit Report

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#5 You should close all of your unused credit cards

}  False. This can cost you your credit score and your future need for emergency funds. The issue with this “myth” is when you only have a handful of accounts and you close all or most of them, you have little to no credit you can use.

}  This is important because the lenders want to see that you have credit available but are responsible enough not to use it all.

}  Because of this, your credit score can drop dramatically if you close out all, or most of your accounts.

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#6 Divorce will absolve you of your credit obligations

}  You are still legally obligated to any debt that is reporting on your credit report until you have your name removed from the account… regardless of what your divorce decree says.

Scary right?

That means if the divorce decree says your spouse is responsible for a debt, but you are both on the loan papers, the creditors can harass you if your spouse starts missing payments. It will also show as a missed payment on your credit report.

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#7 Debit cards can help your credit reports and scores

}  Unlikely. Most check cards have no effect on your credit standing. Check cards or ATM cards with Visa or MasterCard logos work as credit cards but are rarely reported to the credit reporting agencies.

}  If you want a secured loan or credit card to build up your credit, don’t be fooled into thinking your debit card will do it.

There are a few good resources for getting new credit to build up your score. We review the best loan options and credit cards on our credit resources page

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#8

Paying

cash for

everything

will help

your

credit

rating

}  Using cash for your transactions does not have an effect on your credit (other than you are not using your cards). Not using any credit can have a NEGATIVE effect on your credit.

}  You need to show lenders that you can use credit and be responsible with it. You never know when you’ll need a car loan or something as simple as not having to pay a security deposit for a cell phone bill or utility like electricity, water, cable or internet.

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#9 I’ve never missed a payment, so I have great credit scores.

}  On-time payments obviously impact your credit scores but there are many other factors involved too. Payment history accounts for 35% of your credit score. There are also many other factors in calculating the other 65% of your credit scores like credit utilization, new credit, length of credit, etc.

Credit utilization is worth 30% and if you charge a balance of more than a 1/3 of your total credit limit, it can hurt your credit scores. The length of your credit history, number of accounts and type of accounts all impact your credit scores also.

Types of Credit10%

New Credit10%

Length of Credit History15%

Credit Utilization30%

Payment History35%

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#10

Your credit

scores

have to

suffer for

seven

years

}  While the average account will report on your credit report for up to 7 years, there is no law or rule that says it cannot be removed sooner.

}  If there are negative items that are reporting with incorrect, incomplete or misleading information, it is YOUR legal right to request they be fixed or deleted.

With the right knowledge, you can remove those inaccurate, incomplete or unverifiable items quickly.

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#11 Paying off negative items will remove them from my report.

}  Simply paying off a tax lien, collection or other late payment does not remove them from your credit.

That’s where the creditor was past the time frame where they could sue you but by making a payment, you now gave them the legal ability to sue you again!

In some cases it can RESTART THE CLOCK on the statute of limitations.

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#12

You should

delete

every

inaccurate

account

you can

find

}  Absolutely NOT... If you have an account that had some derogatory information in the past but also has a lengthy history, then your new average age of accounts will be significantly lower. So you have to be very careful when selecting which accounts to delete.

}  This is a huge mistake that credit repair companies make. Sometimes they go after deleting everything they can. That would leave you with very little to no credit.

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#13 When disputing, It’s best to just say... “Account is not mine!”

}  Don’t do this because it can be illegal. There are many other ways to do this correctly and in a more effective manner. You can easily find an inaccurate item on your report and dispute it the legal way.

FYI - The credit reporting agency has to be able to verify the account on your report, otherwise they have to delete it!

In the Credit Repair Secret ® we show you how to find the incomplete, inaccurate or simply unverifiable info and how to quickly dispute it to have it fixed or removed from your credit report!

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You can legally beat the bad items out of your credit file…

You can improve your credit in less than an hour a month. See how easy it is: The Credit Repair Secret®