I Don't Want to Destroy My Credit Score
Repair Your Credit Report and Raise Your FICO Score
Nov 12, 2008
In Search of Tier One Credit
Tier one credit is an achievement that has many rewards. If you are trying to buy a house, lease a car or make any other major purchase, tier one may qualify you for preferred interest rates saving you hundred or thousands of dollars. “Get zero percent interest when you qualify with your good credit.” Good credit actually means great credit and that means tier one. Like so many aspects of credit granting and credit scoring, it is nearly impossible to get a simple and decisive numeric understanding of what “tier one” means. Most vendors set the floor on tier one at a FICO (Fair Isaac Company) score of 720. It’s a fairly short list of Americans who enjoy a 720 FICO or more. For those preferred borrowers their responsible credit management earns them the lowest rates possible. Why? They are low maintenance and low risk customers. For everyone else below 720 the only hope is credit repair.
Several Important Warnings about Paying for Credit Repair
The law on credit repair is aggressive and vigorously enforced. Many unscrupulous businesses have deceived and defrauded consumers into believing they could raise credit scores by many dozens if not hundreds of points in little or no time. That is not to say that those services don’t or won’t work. It is to say, buyer beware Federal and state government has responded with regulations that are meant to alert and protect consumers from persistent abuses. The simplest and most important warnings are:
1. Illegally charging an advance fee for credit repair.
2. Falsely claiming that they can remove negative information from consumers’ credit reports, even if the information is accurate and timely.
There are Lawful Ways to Raise Your Credit Score Yourself
Step one is to request your credit report. Everyone is entitled to one free credit report every twelve months from each of the three credit reporting bureaus; TransUnion, Experian and Equifax. They provide access through a shared website at www.annualcreaitreport.com. You may get your free credit report from many other sites, but you will be bombarded with advertising - not on this one.
Once you have your credit report check it for accuracy. If there is anything on it that is not correct you must immediately correct it. A simple letter of to the credit bureau is all it takes. If there are debts listed there that are over seven years old, request that they be removed because they have exceeded the statute of limitations. If credit line limits or the amount of debt you owe on those lines is incorrect request an adjustment. It is as simple as that. No service provider can lawfully do more for you than that. This is a sample letter as recommended by the Federal Trade Commission that will get the ball rolling.
Date
Your Name
Your Address,
City, State, Zip Code
Complaint Department
Name of Company
Address
City, State, Zip Code
Dear Sir or Madam:
I am writing to dispute the following information in my file. The items I dispute also are encircled on the attached copy of the report I received.
This item (identify item(s) disputed by name of source, such as creditors or tax court, and identify type of item, such as credit account, judgment, etc.) is (inaccurate or incomplete) because (describe what is inaccurate or incomplete and why). I am requesting that the item be deleted (or request another specific change) to correct the information.
Enclosed are copies of (use this sentence if applicable and describe any enclosed documentation, such as payment records, court documents) supporting my position. Please investigate this (these) matter(s) and (delete or correct) the disputed item(s) as soon as possible.
Sincerely,
Your name
Enclosures: (List what you are enclosing.)
Thirty Days to a Better Credit Score
The challenges you make must be responded to in 30 days or less. If no response is made by the lender to the bureau, they must immediately remove or change the reporting. Those changes will help to improve your credit score by removing bad marks, outdated debt, incorrect income; all of which improves your overall credit worthiness. If you don’t get the results you want, you can always talk to several credit repair businesses. Only then you will know if their service can help you and is worth the money.
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