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8 Tips to improve your creditIn doing research recently for a large book chain on the top self-help books, we couldn't help but notice an obvious pattern. People are constantly searching for the best way to lose weight, the easiest way to make money, the fastest way to retire wealthy, the best way to organize your life -- inside and out, inspirational books to transform your life and many more DIY tips. It was startling that no one was really looking for the best or easiest way to have good credit. After all, everything in our life practically revolves around our credit history and credit score, so why are people not worried about that before losing weight? It's strange to watch people buying all these self help books and just walking passed the credit repair or credit improvement books. Sure, it could be that those people didnt need it, but chances are, most of them were probably uneducated about their credit reports. It just doesnt seem to dawn on people about their credit until they need it. Is it that people don't know where to turn for such help or perhaps the experts haven't realized yet how to tap that market in a DIY manner? Whatever the case may be, people are doing everything else to improve their lives except facing their credit. It's a perfect evolution because it's one of the best DIY topics that you can learn. It's safe to say its certainly easier than learning how to master the bull market and it takes less dedication than losing weight. So why is it nobody is talking about it? For one thing, its one of THOSE topics people are embarrassed to discuss -- and it's overwhelming. Thinking of dealing with credit bureaus and collection agencies doesn't sound like a day at the park, but if you look at it as a way to manage just another aspect of your life then you can take the fear out of it. People dont exactly follow credit repair companies on Facebook. After all, doing so would sort of alert all of your friends that you probably have credit problems. People simply dont like to talk about it. Fact is, your credit score is important. You CAN and will get better rates on loans -- and SAVE money if you work to bring your credit score up. What good is a slimmer waistline if you're paying double for car insurance because of your lousy credit score. What good is a retirement plan if you are losing thousands every year in higher fees and interest rates because of your lousy credit score. What good is internal peace if you're laying awake nights worried about refinancing you car or paying off all that credit card debt? It only makes complete sense that your credit be as organized as your personal life. So lets take some fear out of the dreaded DIY Credit Repair and Credit Score Improvement. 1.) Don't be intimated by the credit bureaus: Top of the list seems to be the general misunderstanding that the credit bureaus are a Government agency like the IRS. Fact is, they are NOT. Credit bureaus are for-profit companies just like Microsoft, Toyota or Pepsi. They make billions off of credit reports and credit related products. They sell your information to businesses so they can profile you for products. They don't rule your credit history or create it -- they only report it. The creditor (or the source) own that information. The bureaus are simply making money off of reporting it. You have every right to question your credit history and should not let anyone intimidate you otherwise. 2.) Your loyalty lies with only you: Nobody cares about your credit history more than you. You cant count on the credit bureaus or your creditors to handle your credit history - bar none - no questions asked. You have to take responsibility in managing your credit reports just as you would your checking account. 3.) FREE is great: You can find resources all over the Internet to help you take charge of your credit. Using legal libraries, discussion forums and expert Q & A websites like Yahoo! and About.com are great places to find trustworthy tips. The Federal Trade Commission (FTC.gov) offers a massive amount of free information on credit and collection issues. Free credit reports are even better. The website annualcreditreport.com offers all three credit reports free every 12 months! Dont overlook our credit library either! 4.) Your pen & paper are your best friend: Placing a telephone call to a creditor or collection agency is not really a good idea. Not only is there no way to prove what's being said to you, but you'll have no paper trail of your efforts. Collection agencies may promise you anything by phone but in writing is where its at. You'll need that proof later if the agency has failed to agree to remove a negative listing or settle a debt for less. Keep records of everything! Need samples? Our DIY credit repair letters can be found here. 5.) Asking never hurt anyone: One of the best ways to settle a debt, remove a negative mark or lower an interest rate is to simply ask. People bargain everyday with collection agencies and creditors. If you've decided a debt needs to be paid and its in collections or charged off, its a must to negotiate the terms. Whether you're asking for a deletion in exchange for a payoff or asking a creditor to remove an inaccurate history on an account -- ask! Don't assume the answer is no because often its yes! 6.) Time doesn't heal everything: Unless you want to wait 7 long years! A negative item can remain on your credit reports for 7 years from the date it was written off. If you've come into a situation where you need a negative item corrected and its only been a couple of years, then you need to weigh the pros and cons of paying it. If you're trying to refi your home loan or get a first mortgage then obviously you'll need good credit. Exceptions like that are good reasons to contact the collection agency to try and work it out. Of course don't ever reveal your reason to the collector because then they have you right where they want you, but you will want to try and remove the item or settle it. Remember to verify any negative item FIRST with the credit bureaus if you've decided to address it. Once that's done and you've decided the debt is correct and due, then work with your creditor or the agency to settle the debt in exchange for a better rating. Rather than accept a "paid charge off" which is still negative, ask for a deletion or "settled for less" as an alternative. 7.) Know your rights: What's more important than your basic rights? Civil law is no different than criminal law in terms of your rights - and believe me. It pays to know them. The most important laws you need to pay attention to when dealing with your credit are the FDCPA, FCRA, FACTA and the FCBA. The Fair Debt Collections Practices Act covers bill collectors and collection attorneys. The Fair Credit Reporting Act covers the credit bureaus and original creditors. The Fair and Accurate Credit Transactions Act is a supplement to offer even more credit rights. The Fair Credit Billing Act is important for credit card and loan rights. Simply knowing the basics of these laws can really payoff. Whether you use it to cease a collector or to uncover an inaccurate item on your credit reports -- they are your strongest weapon in DIY credit repair. It's how attorneys work on your credit and you can too. For free! If you do seek help from a credit repair company, be sure to get familiar with the CROA. Credit Repair Organization Act. 8.) Credit and divorce: An important FTC publication (PDF) aimed at married couples considering divorce or people who've already divorced and are concerned with how that impacts their credit reports. More DIY Help: Collection laws by state | Dealing with bill collectors | Statute of limitations for debts Find More Credit/Collection
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