| Credit scores are the determining factor on how good | | | | agencies. Next, look for duplicate collections, many |
| the deal is for most of the major purchases we make | | | | collection agencies will package and sell your debt to |
| in life. Managing your credit wisely can save thousands | | | | other companies and never remove their original |
| of dollars over one's lifetime and even contribute to a | | | | report. Send a letter to the credit bureaus with an |
| comfortable retirement. Think about this, improving your | | | | explanation asking that they remove the debt. |
| credit scores by 50 points can save around $33,000 | | | | 3) Dispute ALL debts with the credit bureaus - Dispute |
| over the life of the average mortgage. If you also | | | | all late payments, collections and negative remarks that |
| consider the likelihood that you will also pay higher | | | | appear on all 3 credit bureaus, not the collection |
| rates on car loans, and credit were talking about a | | | | agencies. In the dispute letter simply state that you do |
| huge sum of money. What if you were able to put all | | | | not believe the debt is yours and ask them to have |
| of that money into a retirement account, wow! | | | | the reporting agency to prove that you owe the debt. |
| Before we get started, I would like to touch on the | | | | In the event it is a late payment simply say that you |
| "companies" that advertise that they can magically | | | | weren't late.You can find a good letter by following the |
| clean your credit and have your scores up in a matter | | | | link above. |
| of days. In my opinion any company that makes such | | | | Note: When I say dispute all items I mean all negative |
| a claim is less than legitimate at best. The simple fact | | | | items whether they are a legitimate debt or not. By |
| is that it's ultimately the credit bureaus that will update | | | | law the collection agencies have to prove that you |
| your scores via the information they receive. By law, | | | | owe the debt within a reasonable amount of time or |
| credit bureaus cannot treat you any differently than | | | | remove the remark on your bureau. Many collection |
| the people you hire to clean up your credit. This means | | | | agencies are too busy or unable to respond to the |
| that Know-how and hard work are the only | | | | credit bureau's request. When this happens the credit |
| differences between you and credit repair companies. | | | | bureaus have to remove the negative remarks |
| So if you are willing to learn a little and roll up your | | | | regardless of their legitimacy. |
| sleeves you can save some money. | | | | 10 Ground Rules for Dealing with Collection Agencies |
| Don't get me wrong, there are a lot of legitimate credit | | | | |
| repair companies that perform great a services for | | | | 1. To use an analogy, credit collection agents are the |
| their clients. Depending on how bad your credit is | | | | Devil incarnate and they are on commission. |
| repairing your credit can be a lot of work. If you are | | | | 2. Arguing with the Devil is fruitless; they hold the gold |
| unable to spend the time or you lack the "stomach" to | | | | and will ultimately win the argument. |
| deal with collection agents then I suggest that you look | | | | 3. Speaking with the "supervisor" usually will not work; |
| into hiring a legitimate credit repair company. The only | | | | he got his position by being the meanest Devil. |
| downside is that it can be very expensive and the | | | | 4. The Devil will lie and cheat, it is his nature. Do not |
| money you spend paying them to repair your credit | | | | EVER give debit card numbers, checks numbers, |
| can be used paying down debt. | | | | credit card numbers, or bank accounts over the phone |
| 3 Tips for Fast Credit Report Repair | | | | to a collection agency. |
| 1) Opt out of all credit bureau solicitations - Have you | | | | 5. Make any and every payment you send to them |
| ever wondered how you get "pre-approved" credit | | | | with a money order or certified funds. |
| card and mortgage offers? Credit bureaus actually sell | | | | 6. Send all correspondence via certified mail return |
| your information to companies to solicit you. These | | | | receipt, leave a paper trail and make a file. |
| leads are furnished to the solicitors by credit type and | | | | 7. Do not accept a deal or negotiated payoff without |
| a credit score range. The credit bureaus then "ding" | | | | having it in writing. |
| your credit score 3 - 10 points for the inquiries! The | | | | 8. When negotiating a lower payoff take their first |
| good news is that you can "opt out" from this practice | | | | offer, they will almost always call back to sweeten |
| and it will raise your credit score 3 - 10 points within a | | | | their offer. |
| week. You can find the website here: | | | | 9. When negotiating a lower payoff always approach |
| 2) Validate all debts as real debts on your bureau - | | | | the collection agent from the position "this is all I can |
| This action requires that you have a credit bureau in | | | | afford to pay" not "this is all I am going to pay you". |
| hand. If you are serious about cleaning your credit it is | | | | Refer to rule #2 |
| crucial that you have one it will be your blue-print. You | | | | 10. Always have a copy of your credit report when |
| will need to pony up about $40 bucks to get a credit | | | | repairing your credit [ |
| report with all 3 bureaus and scores. Many companies | | | | Obviously, there is a lot more to know than we have |
| offer "free" credit reports if you join their credit | | | | mentioned in these three tips. However these three |
| monitoring service that ironically cost around $40 | | | | tips will almost always help you with fast credit report |
| bucks. | | | | repair. NOTE: Executing these three tips you do not |
| With Credit report in hand, you need to validate ALL | | | | want to the collection agencies at this time. If collection |
| debts with collection agencies that are reporting on | | | | agencies update the information on your bureau it can |
| your credit bureau. Look for debts that are older than | | | | actually lower your credit scores. Do these three steps |
| 7 years old, (from the charge-off date) the credit | | | | first before contacting the collection agencies and then |
| bureaus have remove these by law. Dispute these | | | | you can dance with the devil later. |
| debts with the credit bureaus NOT the collection | | | | |