Track Your Credit

Credit Repair Overview

Credit Repair is done in what are called rounds of disputes. Each round of disputes usually takes between 35-45 days. Reason being is that any letters sent out to credit reporting agencies are required by Federal Law to be investigated and responded to within a 30 calendar day period. Give 5-10 days for the lag in mail for all results to be received. Required items for credit reporting agencies to investigate any items on the credit reports are 2 forms of id. The most common would be a copy of a driver’s license and a copy of a bank statement or a utility bill. There is also credit restoration which is more for individuals who have multiple unpaid collections and charge offs that have reported within the last 2 and a half years. Typically most credit repair company’s bill monthly for services performed.

Steps To Start Repairing Your Credit:


1. Order copies of your free credit reports or sign up on a credit monitoring service that gives you access to all three of your credit reports. You are eligible for all three free credit reports once annually. You are also eligible is you have been denied credit within the last 60 days.

2. Examine all three reports thoroughly. Everything should be consecutive across all three reports. Take a highlighter and highlight any account that is negative on your reports. These are the accounts you will be working on repairing. Pinpoint inaccuracies within the items that you will be repairing. Make notations on anything reporting incorrectly.

3. File your dispute letters, and reasons for dispute Any account that you are disputing for the first time will be a “round 1 item”. Remember not to dispute every account that you are working on at once. This is called dispute flooding, and the credit reporting agencies can toss the disputes out as frivolous.

4. Federal law requires the credit reporting agencies to conduct their investigations within a 30 calendar day period. What the credit reporting agencies do when they receive your dispute letter is conduct an investigation with the creditor, or debt collector that is reporting the information. Based off of your dispute reason the creditor/debt collector will verify the item as being reported correctly, update or correct, or delete the item. We have set each “Round” counter to count down from 35 days. This gives appropriate mailing time. Once your 35 day round is up, the system will send you an automatic email letting you know that it is time to analyze all three reports and do another round.


Understanding Your Credit Score

The key to understanding credit in knowing what makes up your FICO scores! Keeping your FICO scores high is also knowing what content of your credit reports is affecting your scores.

Proactive Credit Repair Moves


While you are going through your disputing process keep in mind that there are many additional things that you can do to be proactive on your credit and improve you credit quickly.

1. If you do not have any open credit card or otherwise known as “revolving accounts”, then open one and let it report to your credit.

2. Continue opening credit cards until you obtain at least 4.

3. Do not use more than 25% of your credit limit at any time while you are building your credit.

4. If you have open credit cards, figure out your balances on each card, and if your balances are over 25% of the total credit limit, work on paying each one under 25% or paid off completely.

5. Remember that your credit is only useful when you are trying to use it. Simple this means don’t stress out about your credit scores fluctuating on a month to month basis. 10-20 points up or down is common. As long as you pull your credit up at least 60-90 days before you are making any large purchases you should have time to improve your credit before applying. This is the case even if you have good credit. The difference in a 6% interest rate and a 5% interest rate on a $100,000 mortgage is $25000!!! That’s $25000 in interest that 1% would cost you. To give you an idea of a credit score that would qualify for a 6% : 640 5% 680+

6. Do not just apply for anything. You should research before you apply for anything where a credit score is used for decision making. http://www.whogavemecredit.com, and http://www.creditboards.com are free website where you as a consumer can search for what bureaus are pulled by which creditor and what score was required for the approval or denial.

7. Have someone with excellent credit card history add you on as an authorized user to their account. This is called “piggybacking”. You can acquire multiple years of payment history by being added on as an authorized user on a credit card that has been open for multiple years. This dramatically improves the FICO scores. Your average age of credit improves if you add accounts that have more time open that yours. Make sure that the balance/limit ratio is under 25%.

What Are FICO Scores?


FICO scores are used by lenders to make credit granting decisions. Some of the credit scores offered by online credit report monitoring services can be misleading when compared to your actual FICO score.


FICO scores are available at http://www.myfico.com for a fee.

However you are only able to obtain your TransUnio and Equifax FICO score.


What Makes Up FICO Scores?



35% - Payment History

30% - Amounts Owed

15% - Length Of Credit History

10% - Amount Of New Credit

10% - Types Of Credit In Use


Credit Resources

These are excellent credit resources

Orchard Bank


 

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