Credit repair and Your Payments

You have decided to repair your credit. You need to make sure that all of your payments are made on time from now on. Make sure your finances are organized and that there is enough room in your budget for the occasional unexpected expense. Credit repair requires effort and you don't want to slip backwards. Credit repair can transform your life; make the right effort and you will be richly rewarded.

Credit Repair and the Power to Change

Today is a good day to make a fresh start. There are a million ways to freshen up your life, organize your finances, and start getting your credit into shape. It doesn't matter what your credit looks like at the moment. If you start your credit repair effort today you will reach your goals before you know it. All you need to do is put one foot in front of the next. Let's get started. It's a new day.

Your Credit Score Matters

One little number determines the interest rate you pay on every loan you take. And your interest rate determines your payment, thereby impacting your budget and the quality of your life. This is important. Every point of your credit score matters. So pay attention. Credit repair can pay dividends that last for years to come.

Common Practice

It is a common practice for parents to give a child a credit card. It's good for emergencies and handy for everything from summer camp to college life. It is also common for one spouse to make the other spouse an additional card member.

John and Susan declared bankruptcy in January of 2004 and were discharged four months later in April. They were under the impression that there was nothing that could be done to repair their credit following the bankruptcy. They both felt as if they were holding their breath and waiting for the years to pass. In January of 2008 they decided to apply for an FHA mortgage.

Questionable Credit Repair Practices

A small sub-set of the credit repair industry has been operating in a gray area of the law by selling authorized user accounts to consumers. Many credit repair customers have been willing to pay significant amounts of money for these accounts, and the credit score benefit that comes with them. According to the Fair Isaac July 31, 2008 press release, those days are officially over.

When did credit scoring begin?

All of your credit repair efforts are designed to improve your credit scores. There may be no more important number in your life. But where did credit scoring start? The FICO scoring model was created in the 1950s by two Stanford University researchers, Bill Fair and Earl Isaac. Automated FICO scores were first made available in 1989 and initially utilized by credit card issuers. But scores really became part of all of our lives in 1995 when Fannie Mae and Freddie Mac, the mortgage giants, asked lenders to incorporate the use of FICO scores in their approval decisions. The rest is history. Fair Isaac Corp. trades on the New York Stock Exchange under the Symbol FIC, and reported revenues of over 800 million dollars in 2007.

Using Your Credit Cards

There is nothing wrong with using your credit cards. Credit cards allow you to manage both purchases and unforeseen events over time. There is also nothing particularly wrong with running your balances up to the limit - unless you need your credit scores to be at their best in the short term.

Find Out Your FICO Scores

Your mortgage lender will underwrite your loan application using the middle of your three FICO scores. If you expect to purchase a home or refinance your current mortgage you should know your FICO scores in advance. If there is a problem it is best that you discover it, rather than your mortgage lender. Plan your credit repair strategy today.

The Basic Rules

Collectors are governed by the Fair Debt Collection Practices Act (FDCPA). Collectors do not always play fair, so it is best if you know the rules. Collectors cannot report a collection to the credit bureaus unless they have sent you a letter detailing the debt and the identity of the original creditor. They must also provide an explanation of your right to challenge the debt within thirty days of receiving the letter; if used properly this is a powerful credit repair tool.