How to Handle Collections
Proceed with Caution! This is the most important and dangerous of the six steps. Please proceed with care, do not consider contacting any collection company that has a date reported more than six months ago, download the worksheet on the right. The pay for delete strategy is your goal and above all, get every negotiation in writing, so you can correct the reporting on your own. Also, check out this video for 5 things a debt collector doesn?t want you to know.
Time to focus on Good Credit.
Time to bring down you balances. Paying down your balances is the safest way to improve your credit report. Your goal should be paying down your balances to 5-9% to get the most points available. Your goal should be five good credit cards that have never been late. Look for an older account that has gone dormant. If you reactivate it, you will benefit from all this history and safely increase your credit score. Just make sure that reactivating the card will not trigger a new credit inquiry.
The best time to pay your bills
Most people believe that they should pay their bills on the due date. This time I share with you one tip that can give you a better credit score every month by never paying your bills on the due date again. By just finding your statement date and getting your balance down just before that date, you will enjoy a higher score all month for free.
Utilities and ending disputes
If you found actual errors in step one and disputed them with the repositories, you must end those disputes now! I can not tell you how many times credit repair companies have ruined a mortgage application because of the mass dispute strategy they all seem to use. You must take care of this prior to entering into the mortgage process. Are your utilities being reported on your credit report? You can pick up some additional points paying them down early, before the statement date.
Additional steps to remove a dispute off a credit account.
Call Equifax 404-885-8300 and tell them you need to speak with someone in the Executive Consumer Service Department and tell them to remove the disputes. Have the account information in hand when calling.
Call Transunion 312-985-2000 you will get a machine greeting but stay on to you are transferred to a live person tell them you need to speak with someone in the Special Handling Department for instant removal.
Transunion ? This will be handled by faxing a letter and sending certified mail with return receipt to each Creditor stating that they were reporting dispute comments that were preventing me from obtaining mortgage financing, also make a call and speak with someone about removing dispute.
How to remove a 30 day late
It doesn?t hurt to ask. In this video we talk about the good will removal of a 30 or 60 day late. Be sure to download the worksheet for a script on how to ask. This works best if you only had one late payment and a year has past since the ?late? with no other payment problems. This can really help your credit and it will not cost you any more than some time. Remember, it doesn?t hurt to ask?
Let's Get Started!
Take action now! Credit is all based on history and the moves we make today, this week, or this month will pay off later. The important actions you take now will be aged a few months when you start the mortgage process. Step one get your free credit report, Step two look for actual errors and contact the collection companies. Check out the worksheet download for more instructions. You can fix your own credit report if you know what to do. Follow these steps and you will be headed in the right direction.
STEPS TO A BETTER CREDIT SCORE