Credit Repair Tips and Tricks

Here are a few Tips & Hints we thought you might find helpful if your credit is not as good as you would like and creditors are calling:

1. A creditor (someone that you owe money to) does not like to be bothered with having to verify information from a request letter. As a matter of fact, once an account has been closed for over a year, it is removed off their computer and placed onto a back-up media and stored (likely they will ignore the request rather than going through the time consuming process to find the file and then report back to the agency);

2. Creditors are VERY afraid of lawsuits, and many times will ignore the verification request rather than risk sending back incorrect data;

3. 50% to 60% of all negative items will generally be removed from a credit report on the first try. If a creditor gets a second verification request, they usually assume that it's just a second notice of the request and ignore it;

4. The holiday season is a time when most offices are understaffed because of Thanksgiving, Christmas, Hanukkah and New years. We think these are the times to send your verification request - one slip up - and the item is off your credit report FOREVER.

5. The worst credit offenses are usually the ones that get removed the fastest. Items such as bankruptcies and foreclosures appear as "Public Records". That means to verify these types of negative items, the credit reporting agency has to go to the county or federal courthouse and locate the desired documents. Do you really think your government is capable of responding in a timely fashion to this type of request? The answer is - NO WAY. Therefore, the chances of these types of items being removed from your credit report FOREVER are very high!

6. When you pay a bill, always include a few cents extra. This will cause some computer systems to upgrade your credit rating and/or your credit limit.

7. You can get "extra" credit from a secured credit card. Many department stores will automatically give you one of their cards when you show them a major credit card. You should apply for one with our guaranteed VISA program.

8. If you own stocks, bonds and other investments do not list them on an application. These are generally not used to get the loan, but instead will be seized in the event your loan (or card) is not paid.

9. Welfare, child support, and alimony can all be claimed as income on an application. Many banks consider welfare to be a very stable form of income.

10. If you've tried a "Follow-Up Letter" a couple of times, and your creditor has met the time frame each time, check the dates on the verification forms to see how long that it takes them to come back. If the creditor generally responds within 40 days, send a letter to the reporting agency 35 days after your dispute letter was sent, asking that the items be removed due to non-verification.

11. Pay close attention to the name of the person that signs the credit verification form. Send the creditor a letter (made out to the person that signs the verification form) explaining that their information is erroneous and ask them to please not verify it incorrectly.

12. Occasionally a credit-reporting agency will state that a dispute seemed to have the wording of a lawyer or a credit counselor and therefore it must be frivolous. If this happens, write the credit reporting agency back in a hand written note, stating that you are not dealing with a lawyer or credit counselor, however you are well aware of your legal rights under the Fair Credit Reporting Act. This usually fixes the problem right away.

Tips & Hints: Establishing Credit

13. Apply for a credit card, charge $5.00 or $10.00 per month and pay the balance plus $1.00 each month. There are many ways to get a card even if you have no credit or bad credit.

14. Don't apply for too many credit cards at one time. Apply for one credit card, wait to receive it, then apply for another if you desire. Too many credit applications on your credit report does hurt your credit rating. Applicants that appear to be over-extending themselves scare creditors.

15. If you are new to a job, make sure the credit bureau has your current employment information on record. Otherwise, you may get rejected for "lack of employment" even though you're employed.

16. Gas & Oil Cards do not help your credit. Most of them do not report to the credit reporting agencies. Therefore, timely payments on these cards are not going to improve your credit appearance.

17. If you cannot get an unsecured card. A secured card will help your credit as well. A secured credit card is a major credit card that is issued to you under the condition that you open a savings account at the bank that issued the card. You can then usually charge up to the amount in your savings bank.

18. If you live with your parents or with a friend, and the phone is in their name, have the Telephone Company add your name to the listing. There is usually a small charge of about 75 cents to a dollar per month, but it creates the same effect as having a phone in your name.

19. Try to show that you have one address for a long time, rather than many addresses. Even if you move a lot, perhaps listing one address as your permanent address is better.

20. A family is looked favorably upon. Married with kids is great in the bank eyes.

21. Eighteen to twenty five is the most heavily discriminated against when it comes to getting credit.

22. Creditors like to see job stability.

23. Creditors like to see applicants with a certain amount of debt. This includes house payment or rent, car payment, and credit card bills. You're in good shape as long as your monthly obligations do not exceed 50% of your income.

24. If you are self-employed, incorporate your company, and have your corporation pay you a salary. Creditors don't like self-employed. They like to see a steady wage being paid and reported on a W-2.

25. Many banks that check credit reports as a requirement to open a checking account, do not check credit reports for savings accounts. You can open a savings account, then three weeks later, open a checking account at the same bank. Some banks do not run credit checks on current customers that are opening a new checking account.

26. Have a friend or a relative open a checking account as a joint signer. Then later, have their name removed from the account, and you are left with your own individual checking account.