Tips For Rapid Credit Restoration From a Mortgage Specialist

So, taking on credit repair? I've pulled and consulted on over 10,000 credit reports. Let me help:

1. Dispute Simultaneously: If you want rapid results it is crucial to dispute simultaneously. Disputing one or two at a time and awaiting their findings is not the way to go. You may be surprised how many do just this. Dispute everything at once!

2. Closing Active Accounts: Closing accounts with available credit limits on them while leaving others open with balances will instantly drive ones balance to limit ratio up and in doing so, drive their score down and potentially bounce them out of contention for financing a major purchase like a car or a home. 

3. Failure To Use Certified Mail: Without certified mail, one has no way of documenting and proving the chronology of their efforts. One must be able to prove that they took the proper steps to dispute their trade lines.

4. Giving Up: The creditors and the bureaus want us to give up and will try relentlessly to discourage our disputes. They offshore their back end work such as dispute handling. They have set up software and detection systems with the intent to complicate and delay our efforts. One must not give up!

5. Using dispute letter "templates" or frivolous/false disputes: Most of us know that the steps to credit score restoration almost always involve disputing inaccurate trade lines or requesting validation of ones debts. Almost all of the web-based "fix your credit now!" ads or those that we hear on the radio with 800 #'s (as in, call now! Operators are standing by!") use cheap, pre-generated letter templates which almost always get rejected at the gate by a computerized detection system. If a templated letter is detected your challenge is almost certain to get declined. Secondly, one should not challenge knowingly valid debts on one's report. Neither creditors nor the bureaus are required to respond to claims that are deemed frivolous.

6. "Resetting the clock": Making a payment to a collection agency on say an old collection account potentially resets the statute of limitations on the debt. As you may know, the statute of limitations as it applies to debt means the amount of time a creditor legally has to pursue a judgment against a debtor for non-payment of a debt. By no means is this advising that we don't pay our debt; after all, we incurred them. This is just to provide a bit of insight as to when and how to resolve collection accounts. (Check your state's statute of limitations or ask an attorney, the statute differs everywhere).

7. Not Validating: This is paramount! As many know, debts are commodotized, sold and purchased on a sort of "secondary market". Collection agencies buy their debts in bulk. Often these agencies fail to keep proper records and paper trail of the origination of these debts. One should always insist that ones creditor (or creditor's agent) validate the debt via the legally defined method.

8. Complacency: Don't get complacent. One must be constantly assertive, stay super-informed, use urgency and thoroughly articulate the detailed nature of their disputes. Also, if an action is to be taken within a certain time frame or deadline, take that action! 

9. Not Keeping Copies: One should get a file box from Staples or WalMart and an extra set of file dividers with labels. This file box is to be used solely for the task of credit repair. One must always copy and alphabetically file ones dated correspondence to and from from lenders, payment receipts, replies from creditors, the bureaus; everything.

10. Not Hiring a Professional or Hiring the Wrong One: Can one handle their own credit score restoration? Of course. The FTC recognizes and advocates this and they provide resources to help consumers do so. But when a professional is needed, as they often are when one is in a super hurry, such as a deal on a house, it is crucial to use a reliable, effective, complaint-free organization whose primary objective is not only rapid results for their customers but also the customer's long-term credit health as well. Be sure to thoroughly research a credit repair organization and visit the FTC's website on the topic before moving forward! If you would like a referral to an excellent credit repair organization with a track record of nothing but results and accolades from their customers, please visit my long time referral source, A & Z Credit Restoration's site and moderate your speakers volume before loading:

http://www.a-zcreditrestoration.com/

If you would like a same day pre-approval interview for a mortgage loan, to apply and lock in an interst rate, or simply an analysis or some recommendations, please, give me a call or send me a memo!

To apply for a mortgage pre-approval quickly, easily and securely please visit:

https://rwstools.com/fxsecureforms/quickapplication.aspx?siteid=884&lo=jwoods@hsoa.com&email=jwoods@myhsoa.com

For more on 100% financing for approved owner occupant buyers and the requirements please see:

http://abrightsunshineyday.blogspot.com/2011/06/sensible-30-year-fixed-no-money-down.html

For the FTC's website on consumer credit repair please see:

http://www.ftc.gov/bcp/menus/consumer/credit.shtm

As always, I'm here to help!

Jamie Woods
Community Banker
Home Savings of America
Member FDIC/Equal Housing Lender
225 Derry Rd  Hudson, NH  03051
http://www.newenglandloans.com

(603)-339-4461

* This is not legal advice. If you are in need of legal analysis, please contact an attorney.