Is your credit far from perfect? Are you having troubles getting approved for a mortgage or auto loan? Do you want to get rid of debt and start with a "clean credit slate"? In the current economic crisis more and more Americans are facing the same bad credit problems.
Contrary to the general myth, fixing credit doesn't have to be that hard.
You can clean credit history in a short period of time if you arm yourself with credit knowledge and a healthy dose of perseverance.
Here are 3 simple tips that will help you understand how fast credit repair works: 1.
Time is not always the solution.
A lot of credit experts think that time is the only solution for serious credit problems.
Bankruptcies stay on your record for 10 years.
Negative items like collections, tax liens, judgments, late payments, past due payments etc usually fall off your record after 7 years.
Credit inquiries appear on your report for a period of 2 years.
You can pay off collections, liens, judgments etc, but they still stay on your credit report( albeit now paid) and affect your score negatively.
The only thing you can do, according to the mainstream credit advisers, is pay the negative items off and wait until they fall off from your record completely.
Contrary to that myth, there are so many things you can do in order to remove a negative item from your report.
The only requirement is not time, but credit knowledge and thinking outside the credit box.
2.
Pay more or pay less.
The traditional way of credit repair preaches financial discipline and paying your debt off.
In reality paying your debt in full will not necessarily raise your score.
For example, paying off an old collection might actually hurt your credit score.
The reason is that the account is now updated to "current".
The negative item (although paid) will have bigger impact on your credit score and will stay on your record as an adverse account for another 7 years.
In this case-paying your debt in full doesn't really help.
Instead of trying to pay debt in full, concentrate on negotiation with collection agencies.
In reality debt collectors still make a pretty handsome profit even if you pay them 25 % or less of the amount owed.
Your ultimate goal is to pay as little as possible and still convince debt collectors to remove the item from your credit report.
In other words-don't go for the "hard" way, when you can do it the "smart" way.
3.
Always aim for complete deletion.
Deletion of negative items is the ultimate goal of fast credit repair.
A paid off negative item might not benefit your score.
A deleted negative item, on the other hand, will boost your score immediately.
In order to delete an item from your report, you have to master the art of "dispute" and " negotiation" with credit bureaus and collection agencies.
There are many ways to clean credit history.
Knowledge about the inner workings of the system and the various loopholes in it, however, seems like the shortest route.
Once you start thinking outside the box, you'll be surprised to find how easy credit repair actually is.