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Credit Repair Red Letter Days

by Ian Webber
Credit repair can have a uniquely measurable payoff. In fact, never before has quality of your credit so quickly translated into dollars and cents. Virtually all of the credit market sectors, from credit card issuers to mortgage lenders are now pricing on a risk basis. This means that every single point on your credit score means more money in your pocket. Higher credit scores mean lower interest rates on every loan you are approved for. (continued below)

Credit Repair Red Letter Days

You Will Be Victorious
A small investment in credit repair today can easily generate a return of tens of thousands of dollars over time. If you have any credit issues whatsoever, you simply cannot justify inaction. If you are afraid of confronting your credit report now is the time to overcome your fear. If you are intimidated by the credit bureaus, now is the time to stand up for your rights. If you are worried that your credit repair will rouse collectors from their docile repose, worry not. Put knowledge and the law on your side and you will emerge victorious.

A Dose of Reality
You should start your credit repair adventure with a dose of reality about the organizations you will be confronting in your search for credit accuracy, the credit bureaus. The credit bureaus have no governmental status or charter. They are business like any other for-profit corporation. And, although they do a decent job of managing data files on over 200 million Americans each, they are more focused on profitability than the perfection of your credit report. In fact, the entire credit repair dispute process is a real thorn in their side, which they administer reluctantly and in as minimalistic a manner as possible.

The Role of Patience in Credit Repair
Understanding the modus operandi of the credit bureaus should also give you the understanding of the need for patience. Your disputes may fall through the cracks. And this may happen more than once on the road to credit repair success. But you will reach your goal if you keep on plugging along. There is no need to get riled up about inadequate dispute processing on the part of the bureaus, nor will it do anything except raise your blood pressure. Keep your eyes on the prize. If you do not get the result you need, stay focused and send another round of concise dispute letters right back out again.

Sharpen Your Pencil
Understanding the lax nature of the credit reporting system must also illuminate your perception of the content of your own credit report. Given the importance, and potential financial impact of every single point on your credit score, you must look at your reports with a skeptical eye. No longer should you believe blindly in the content of your report. Question everything. Here are some of the most common errors that people uncover when they begin their credit repair in earnest; underreported revolving limits, closed accounts reported as open, paid accounts reported with a balance, and duplicate accounts. All of these sneaky little errors can hurt your scores and cost you money.

When in Doubt, Dispute
Another area that you should pay close attention to in your credit repair endeavor is the collection section. Collectors are easily the most blatant reporting offenders. Collectors purchase and sell collection accounts on a regular basis. Many collectors will give up on an account within six months if they cannot collect. They then sell the account to another collector who will try his luck. By law, when a collector sells an debt to another collector or returns it to the original creditor they must extract their own account from your credit report. Unfortunately, there is no motivation for them to comply with this law. On the contrary, since there is no penalty for non-compliance it only represents extra work. Examine all collection accounts with a critical eye. When in doubt dispute!

Credit Repair Assistance
Many people are just too busy to learn the credit repair process, or to keep track of the ongoing disputes and re-disputes that are necessary to continue in an organized and successful manner. The job requires patience, time, and knowledge. If you cannot manage it on your own do not despair, you can hire a professional credit repair service to do it for you. They will insure that the job is done completely and done right. Whatever path you choose you should start your credit repair journey today. Your credit matters.

About the Author
Copyright © 2009 Ian Webber. All Content. All Rights Reserved.
Ian Webber is an expert in consumer law and credit repair. Ian is a graduate of the London School of Economics and The University of Chicago where he earned his LLM. Ian consults with one of the leading online credit repair services and is currently based in Florida.

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