Credit repair facts, hints and mistakes : Bad Credit Advisor

Credit repair facts, hints and mistakes

When it comes to credit repair, there are many misconceptions and simply incorrect information out there. Making some of the missteps won't hurt you while making others can be very painful. Here is the very incomplete compilation - call it credit repair facts in nutshell, of certain things you need to know:

- derogatory records can not be deleted from your credit report
- if you cosign for someone else, you are responsible if he/she defaults
- never supply too much information to collection agencies as you may inadvertently verify your negatives
- don't close revolving accounts for the sake of closing - open revolving account with little or no balance are very important in credit repair
- don't dispute an incorrect positive information
- always ask collection agency for debt validation

- don't deal with collectors or collections agencies on the phone, mail/fax leaves paper trail that can be very important
- don't sign anything sent to a collection agency as your signature can appear on documents you never signed
- know Statutes of Limitations in your state
- paying off collection account will not raise your score, and can be even detrimental to your credit repair efforts, only pay collections after you negotiated in writing for deletion collection record
- never use post dated checks and never give collection agencies anything with your personal financial info on it
- don't get confused between time limits on credit reporting and on debt collection
- don't get confused between state Statutes of Limitations on Debt and state Statutes of Limitations on Judgements
- you will not gain anything by using credit repair agency instead of doing it yourself
- credit repair takes time and effort, and fast credit repair is often not feasible
- self credit repair works the best, no third party help needed
- an unpaid tax lien will not be dropped from credit reports after 9 years, it stay on the credit report indefinitely until paid in full
- you can't remove bankruptcy from credit report
- student loans are almost impossible to discharge and there is no statute of limitations on student loans

The credit repair is a delicate art which can be mastered rather quickly. If you need to do that, don't delay, the sooner you start, the sooner you finish.

Fri Mar 27, 2009 02:03PM by Tony | More in Credit Repair | Comments (0)

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