| By :
Ian Webber
Work With What You Have Your credit scores are based on the content of your credit reports. If it is not in your credit file, it is not included in your score. And credit repair is all about your scores. Start by looking at your existing optimization opportunities. Revolving balances can be reduced for a big boost, and your store cards can be gradually phased out and closed. If you have consumer credit lines from a furniture or electronics store, they are doing little for your score and can be closed when your budget allows. Build Anew Moving beyond what you already have, there is a new wrinkle in the FICO scoring model that will reward your credit repair effort generously for opening new accounts in the timeframe that occurs after a spell of derogatory issues. In other words, if you have had poor credit in the past, now is a great time to get back on the horse. New secured credit cards are a wonderful adjunct to your credit repair program. They are affordable and can add 100 points to your score within 6 months. Use a Lifeline Authorized user accounts are not a proxy for building your very own credit, but they can give you a real credit repair boost. Call mom or dad and ask if they would add you to one of their excellent, seasoned, low balance credit cards as an authorized user. There is no financial exposure for them (they do not even need to give you a card), and when the account pops up on your report your score will take off as if the account had been yours all along. Dispute Liberally Credit repair traditionally includes a credit report cleanup. When the time comes to pick the items to dispute, be generous with yourself. Give yourself the benefit of the doubt. Do not attribute any degree of infallibility to the bureaus. Errors happen, and they are not uncommon. Grab a red pen and circle everything that smells fishy to you. Every error that you can fix can contribute to your score improvement. Go for the gusto. Dispute Two More Times Here is the real key to credit repair success. Do not give up. The credit bureaus are cantankerous and may not process your dispute letter properly the first time that you send it. This is not personal. They may not have even read the darn thing. Just relax and send your request for correction again. This time you can feel free to complain about their lack of due diligence. Stand your ground. Try Negotiation This is an interesting time. It is mid-2010 at the time of this writing and the economy is weak. People in every industry are hungry and this includes the collection industry. If you have identified legitimate collections on your credit report, and have validated the debt to your satisfaction, now is the time to try negotiation. Try the last Friday of the month. Have your money ready and let the collector know that you can get it in his hands real fast. Make it tempting and you are a winner. Find a Credit Repair Company If you want help, look for a legitimate credit repair company. There are a couple of rules of thumb for making a smart selection. Check the Better Business Bureau rating for clues about any service issues. Read the website to get a feel for the company; if there are any wild promises, move on. And lastly, pick up the phone and interview them. How do you feel now? If you do not get the right vibes, move on. Good luck! Copyright © 2010 Ian Webber. All Content. All Rights Reserved.
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