Repairing_Your_Credit_Report by MarijanStefanovic


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

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.

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