Repairing_Your_Credit_Report by hashournonos


Repairing Your Credit Report

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Fixing your credit report and repairing your credit are two distinct processes and problems.

Pathfinder Business Strategies, tax deductions

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Fixing your credit report and repairing your credit are two distinct processes and problems. If your credit is
bad, you can implement some of the strategies below to fix a low score.

Negotiate down the amount of debt (it’s easiest with private individuals). To do this, you must demonstrate
the reason for falling behind. One of the tools you can use as leverage is offering something (not the full
amount) rather than nothing. For example, explain why the lender should take $5,000 instead of $10,000.
You can say “I’m calling five other creditors today. I’m offering you $0.50 on the dollar and if you aren’t
interested, I’ll file for bankruptcy,” in which case they wouldn’t get a nickel).

Negotiate a forbearance with credit card companies and clients with mortgages. If there was an illness, death
of a breadwinner, divorce or some other legitimate reason incurring severe financial difficulty, you may
have a case. Show them you had a good reason for falling behind, agree to stay current on the current
payment and offer to pay X amount per month toward what you owe. You also can stick the amount owed
on the back of the loan. These are legitimate ways to negotiate and repair your credit.

Beware of illegitimate ways to repair credit
Watch out for companies that will put together new tax returns for you. They’re essentially offering to
dummy up tax returns. Another scam is when they take advantage of the credit reporting service’s limited
window to answer disputes. If, for example, the window is 14 days, they’ll write a letter saying you don’t
owe (when you actually do). It’s just a matter of time before the bank fails to meet the 14-day window;
when they miss deadline, you are not required to pay the disputed amount. Not only is this wrong ethically,
but it doesn’t fix your credit problem. Additionally, companies that charge you an upfront fee to get you
new credit (often ranging from $100 to $1,000), especially out of other countries, is a scam.

Recommended Read
I recommend “Your Credit Score” by Liz Weston, a helpful book on different strategies of legitimate ways
to improve your credit score on your own. If you feel like you need/want help, there are legitimate services
available to you as well.

credit disputes letters

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