Depending on the Power of Your Own Credit Repair Letters

Bad credit record or negative payment history is a very distressing situation. Well, you cannot blame anyone for it because your default in paying your debt obligation is your own doing. Definitely, it could emanate from your distraught financial condition. Repairing this credit condition can be painless if you have the initiative to execute credit repair letters. With a properly worded-letter to explain your past financial problem, you can surely mend your bad credit reputation to eventually repair and improve your credit scores.
credit repair letters
In your intention to write credit repair letters, you can furnish a copy to each of the credit bureaus and collection agencies. There are different kinds of debt repair letters namely dispute letters, debt validation letters, pay for delete letters and cease and desist letters.

Initial step towards creating credit repair letters

The presence of a negative mark in your credit report will be the basis of the credit repair letters. In many cases, the basis of these kinds of letters is about the misinformation contained in the report. The effectiveness of the reasons you have given in the credit letters will tremendously help you in the repair of your bad credit record.
What items should your credit repair letter contain? You should identify the incorrect piece of information contained therein, if there is. Then explain why it is incorrect. You have to watch your language in the letter as you need to be polite but firm when you explain your side. Writing this credit repair letter forms the baseline for which you can start undoing the negative credit rating.

What is dispute letter about?

The most common of the credit repair letters is the dispute letter as this tends to be the most effective type. This letter is usually addressed to credit bureaus with the aim to dispute the account, personal information or public record. Here you can site some parts of the Fair Credit Reporting Act to support your claim. But do not resort to threats to the bureaus. Maintain the polite ways. If you are still not sure on how to compose this letter, try to find templates and samples in the internet. You can even make use of credit repair software that will tell you the relevant items to include in this dispute letter.

Other kinds of repair letters to erase the record of bad credit rating

Here are three other kinds of credit repair letters usually written for the collection agencies.
• Debt validation letters – These are letters to collection agencies for the sole purpose of validating your debt balance. This is simply a right to challenge or verify a statement of debt as contained in the Federal Fair Debt Collection Practices Act.
• Pay for debt letters – This is also a letter to the collection agencies when you want to negotiate in the payment of debt scheme for any existing account. This is done to remove or update your account to change the negative to positive credit report.
• Cease and desist letters – This is generally addressed to any person or entity but most usually to debt collection agencies. This is to request the agencies to stop contacting you. As a proof of the request, the letter should be certified to have been sent and there must be a return to sender part that is duly received and acknowledged by the addressee or authorized representative.
Credit repair letters are sent to the credit bureaus and the collection agencies. The dispute letters are usually addressed to the bureau while the other three are for the collection agencies.

Are You in Search for Top Credit Repair Companies?

You may have tried repairing your bad credit rating by yourself and sadly, the effort was futile. When you come to the point of stopping in rebuilding your credit rating, you would be in a stand still situation and would just give up. This becomes your big reason for seeking the assistance of one of the top credit repair companies.
top credit repair companies
In choosing the credit repair firm, the first tip is to be able to identify the company that can be trusted. There had been plenty of people who were robbed of thousands of dollars paying to fake credit repair companies. Sadly, many firms that claim in their advertisements to be one of the top credit repair companies do not deliver the desired or expected results. And it is most unfortunate when the company chosen is a scamming firm.

Legitimacy of top credit repair companies

If you will try to be very cautious, you will find some top credit repair companies that are effective and legitimate. As a guide, a legitimate credit repair firm makes use of the dispute process under the Fair Credit Reporting Act. This is the sure way to deliver positive results.
The legitimate top credit repair company will not easily give you a guarantee of good results. If the company you found does say so, then that allegation should be a warning signal that it may not be a legitimate one. Furthermore, the real company will even go to the extent of promising refunds if the expected result does not come. This statement of refund is even a better form of guarantee.

Choosing between new and old credit repair firms

Because of the high demand for good credit repair companies, many such enterprises mushroomed in the market. Should you hire an old or a new company? Both have their pros and cons.
• Old company – This represents the expert and the experienced people. The existence of the firm for several years is proof of legitimacy, effectiveness and deliverance of results. Otherwise, it will not retain its stature as one of the top credit repair companies. But then, as it has more clients, you may be made to wait in a queue before your case is acted upon.
• New company – As new, you may be reluctant to hire its services. It has no solid proof of being in the list of top credit repair firms. If this company is dead set in the market rivalry, it will give you the personal and swift service that is hardly found in an old company with many customers.

Fees of good credit repair companies

The choice between the old and new company becomes a personal preference of one who is undergoing bad credit rating reputation. What about the fees being collected by the company? Can you afford the fee of the old company which is surely more than what a new company collects? Most of the top credit repair firms that had been in existence for several years charge the fees on hourly rates. Others have another scheme of fees where you pay for every item in the credit bureau’s report. As the repair can take a longer time, the firm may charge you on a weekly or monthly basis or perhaps a combination of the different modes.
It may be hard to recommend to you on the choice of top credit repair companies. As you are the one in need of the service, do an examination of your budget. This is the first consideration so go and search asking for the range of fees.

How to Rebuild Credit Fast – Two Best Strategies

You are not alone when you go through tough financial situation. It happens in the lives of many people. What is paramount is to be able to move on and be renewed. When you fail to pay your credit card obligations, you are in the dead end in the eyes of these companies. When you get your credit report, you will find your name listed as one with bad payment history and thus do not qualify for any loans or other credit card approval. Do not feel so bad rather think on how to rebuild credit fast since there are credit repair companies that assist financially distressed individuals.
The problem may not be very simple as there are multiple things to straighten out. First, you have to deal with three major credit bureaus – the Equifax, Experian and TransUnion. Your name will be listed in these agencies that would give notice to the public on how you fell behind the servicing of your debts. Your record here will hold back all lenders thinking that you could not be a trusted borrower or credit card user. And the credit standing that you are trying to rebuild will never happen.
how to rebuild credit fast
However, there are ways on how to rebuild credit fast and reliable. You need two strategies that when you take a closer look, these are ordinary solutions. One is to apply and use prepaid credit cards. Second, get a copy of your credit rating from these bureaus and contest all the wrong information contained therein.

The role of prepaid credit card on how to rebuild credit fast

What good would a prepaid credit card do to your bad credit rating? This will provide proof that you have financially recovered and are good credit card user.
What is a prepaid credit card? This is a Mastercard or Visacard with the company logo and you use this for many financial transactions like funds transfer, withdrawal of deposits, debit card and credit card. The limit is based on how much you have loaded to the card. If you have only deposited $200, then that is the maximum amount of purchases that can be debited from it. With the prepaid credit card, you will always have money. What this card will present to the investigators is the fact that you can now pay your usages, a rebuilding of your credit reputation.
You are not restricted to having one prepaid card only. By applying to more prepaid credit card companies, you can fast track the process on how to rebuild credit fast. Since you can only debit or use up to the amount deposited, you will not have record of nonpayment of dues. With the prepaid credit cards, you can have a record of financial capability and your credit rating will begin to soar.

Three credit rating bureaus

At the very instance when you are learning how to rebuild credit fast; you or your hired credit repair agent can contact the three agencies. Get a copy of the credit report from Experian, Equifax and TransUnion. It is important that you get from all three as the information in them may have differences. These three groups, as competitive agencies, do not share information with each other. Thus, it is likely that they have different information about your credit history. Once you find inaccuracies in the report, you can always question the bureau and have it corrected. This process will improve your credit standing.

How fast can the bad credit rating be removed?

Actually, there is no guarantee on how to rebuild credit fast or instantly. If one credit repair firm tells you that it can be done overnight, then it is just trying to scam you. It does not happen that fast as rebuilding credit rating undergoes multiple processes. Your biggest benefit for the wait is turning a poor credit into a good one and this will work to your advantage and future loan applications.

How the Stigma of Bad Credit Is Changed by Credit Repair Firms

You are almost at the point when your credit card and loan applications could hardly be approved because of your credit history. You are one of those people who suffered financial problems causing you to default in some of your debt obligations. Consequently, you are listed as a person with bad payment record. Only restoration of credit can give you peace of mind. That is not far from achieving if you find credit repair firms that can erase the bad stigma caused by negative credit rating.
credit repair firms
Just like many people listed with bad credit history in one or all of the three US credit rating agencies, you can fix your situation through the assistance of credit repair services. However, you have to be cautious as not all credit repair firms can be efficient and legitimate. Finding the right credit repair company, you are on your way to acquire a car, emergency or even home loans.

How credit repair firms work

If you are not familiar with credit repair firms you will definitely want to know how these companies work. Let us take a look at the ideal, reputable, efficient and legitimate company. I am providing these descriptions because there are many credit repair services that only attempt to swindle people in need of credit repair. The real credit repair provider can successfully repair your credit standing in a few months’ time. But if you hire a new inexperienced credit repair company, it may take a year for it to accomplish your goal. That is if ever they get successful. You see, not every firm will be able to get you out of the hole. It takes diligence, right approach and adequate resources to check and repair any credit report. You then will be facing the problem on how to pick the suitable company that is passionate in changing your credit track record, at the same time keeping your pocket and money safe from scams.

Is it safe to hire this service?

The main concern in finding credit repair firms is safety. The bogus companies will ask you for advance payment and will require you to deposit in an account or via wire or anything just so they can collect money from you. Scammers will always ask for “money down” and after getting the cash, they disappear. You will find many such persons in the internet. A legitimate one will accept checks, credit cards or debit cards just what normal businesses do. You should be watchful of this so that you are sure that you are dealing with the right credit repair firms.

Distinguishing a reliable credit service

A reliable company will be able to provide you information on have the repair is going to be done but definitely will not promise a specific turnaround. When sourcing your professional credit repair service provider, here are some questions that you should ask.
• How long had they been in this business?
• What are they able to clear out in the credit rating reports?
• What is the approximate turnaround time?
• Are they ready with some samples of their accomplishments regarding this credit repair?
Real credit repair enterprises will be able to separate themselves from the fake ones in a number of ways. The real company is able to show your proofs of what they have done, possibly in detailed video format. You will be shown the progress on what they are doing, from the start until the repair is made. And most of all, they will be able to outline to you the steps to be done in your case. You will be presented with a timeframe of the process.
Now, you can distinguish what is real from what is bogus as far as credit repair firms are concerned. You know how these operate. They are like lawyers who will depend, not against the judges but contra the credit bureaus.

Four Steps to Repairing Your Credit

Even a short period of bad luck and poor sales can ruin a business’s credit rating. Once your business accumulates a lot of debt or misses a few payments, its credit rating will fall quickly. This puts an incredible financial burden on your business, especially if you need a loan to make your business more profitable.

Unfortunately, there aren’t many quick ways to repair your businesses credit history. It will take time. If you follow these four steps to repairing credit, though, your business can qualify for lower interest rates that will help it thrive.

1. Dispute Inaccuracies in Your Credit History

About one out of five credit reports contain errors. That’s a serious problem for businesses that need to access low-interest loans. When lenders see harmful information on your credit report, they will probably turn down your application. If they don’t turn it down, they will raise the interest rate to protect themselves from risk.

When you find errors on your business credit report, you have to gather evidence showing why the item does not belong. In some cases, companies have mistakenly reported you instead of a similar business. In other cases, items seem to show up without any reason.

After you gather supporting documents, write a dispute letter explaining why the item does not belong on your report. This article should help you draft a convincing letter that solves the problem.

Companies have 30 days to remove errors. Keep an eye on your business’s credit history to make sure they remove it. If it’s still there a month later, you will need to follow up with the three major credit bureaus.

2. Reduce Your Business’s Debt

Your business’s debt accounts for about 30% of your credit score. If your business has a lot of debt, then lenders will not want to give you money without high interest rates. Secure debts (such as mortgages and loans on property) do not matter nearly as much as unsecured debt (such as credit card debt).

Reducing your debt could potentially raise your score by 20 to 30%. If you have high-interest credit card debt, focus on it first. Pay off as much as you can before applying for a loan. Lenders prefer clients who have access to a lot of credit, but who only use a small fraction of that credit.

3. Protect Your Business’s Existing Lines of Credit

Do not close any lines of credit. If you have lines of credit in good standing, keep them open so they can make your debt-to-credit ratio more attractive.

As you pay down existing debts, those lines of credit will start to improve your score. It may feel good to cancel an account and cut up your credit card, but that could lower your score.

4. Focus on Making All Payments on Time

Your business’s payment history makes up about 35% of its credit score. Late and missed payments will bring your score down quickly. That’s why you have to concentrate on making every payment on time.

If you have an office manager, you may want to put him or her in charge of this. If you think that you have time to take on the responsibility, then you may want to do it yourself. Regardless, you need to choose a responsible person who will pay bills before they are due.

On occasion, you may have to make a late payment. It’s unfortunate, but struggling businesses have to make tough choices. If you must send a payment after its due date, make sure you send it within 30 days. Most companies will not report late payments until they are at least 30 days overdue.

Hopefully you never have to make a payment later than 30 days. If you must, pay the debt as soon as possible. The longer you wait, the more damage it will have on your business’s credit rating.

Repairing credit for a lower interest rate takes a lot of hard work and commitment. Your business will not recover over night. It could take you months or years before you can get a low-interest loan. If that’s what it takes, then that’s what you have to do. As long as you focus on these four steps, at least you know that your business is heading in the right direction.