How to build a perfect credit

[ Bookmark this page! ] [ get HTML Version ]





How to build a perfect credit
In my attempt to describe "perfect credit" it is practicaly impossible to put into words because "perfect credit" is a myth. The majority of consumers can achieve a good credit, and this is due to the fact that we are human, and humans we have a tendency to err. Yet, good credit is still a goal that is unattainable by a large number of consumers because their credit gets damaged at a very young age. The best concept that is devised is a report called "Using Credit Wisely" that discusses how to use credit, but individuals come into contact with credit at a very early age and start the damaging process right away, which can possibly lead us to a lifetime of bad credit!!!

In college years, credit card offers are pouring every semester when we are enrolled. This bad credit phenomenon is accredited to the ease of gaining those credit cards. Students are rarely aware of the consequences of using credit unwisely, so they continue to use them to pay all of the expenses not covered by tuition. Then once they graduate, they spend most of our time trying to find employment to repay all the student loans, and often overlook the small debts created by using the credit cards we applied for to pay all our expenses.

Now, all of our credit accounts have gone to collection agencies, even the ones we tried to pay but got behind on, collection agents are calling and we are having a tought time avoiding their calls because with all of our other living expenses, we barely have enough for food. Eventually the collection calls slow down or completely cease, and we think it over but it is not. A few years down the line when we go to apply for a car or a home, those neglected credit card accounts come back to haunt us.

This is a scenario faced by millions of consumers every day, but there is still hope for those tying to repair the damage done in our student years. And the answer is in laws created by the Federal Government, in a form of laws that protects the consumer and helps them to try to restore their "good credit" rating. These law are entitled the Fair Credit Reporting Act (FCRA), Fair Debt Collections Practice Act, and the Fair Credit Billing Act, if used wisely these laws can help consumers restore their credit to a status they can be complacent with, if not "perfect."

The first step in to acquire a good understanding of what these laws cover, and the Federal Trade Commission has given details on the laws on their website http://www.ftc.gov. The next step is procure copies of your personal credit report, and this can be easily accomplished by purchasing them from the three consumer reporting agencies for a small fee, but a copy can also be attained for free if you have been denied credit / employment based on information contained in the credit file. Luckily this is one of the sections contained in the Fair Credit Reporting Act and I have taken advantage of it in the past to get a free credit report.

Another possibility for consumers who want to restore their credit but don't have the time to research these laws is hiring a professional credit repair organization to initiate the process for them. If you decide to hire a credit repair company, it is strongly suggested that the Credit Repair Organizations Act be read, and as stated earlier, this law can also be viewed on the FTC's website.

Repairing credit can be accomplished by the average consumer as long as they remain "vigilant". If a copy of the credit report has been procured, then it is time to get to work, first ensure that all personal / biographic information contain in the report is accurate. A consumer can quickly lose very valuable credit points by the information contained on the credit application and what is contained on the credit file not matching. Most of consumer reporting agencies will have a form that allows to edit the information contained in the personal / biographic section of the credit report, if this form is not present or offered, create one with the incorrect information above the correct information.

The next phase will be to modify or remove accounts that are not yours, or contain outdated entries that should have been removed from the file based on the laws contained in the Fair Credit Reporting Act. The entries that can be removed are most revolving and fixed accounts that have been closed due to non-payment with a date of activity of 7 years ago, and bankruptcies after 10 years. Most of court related rulings can also be removed after 7 years. Disputed accounts have to be investigated, and it is the responsibility of the credit grantor to proved that the account belongs to the person disputing it.

Using the disputing process of the law is a way to ensure that the consumer reporting agency is reporting correct and up - to - date information on the consumer, but also under the same law it is illegal to dispute information that is correct and accurate. The great news is that accounts that have been paid off and are in good standing can stay on your credit report indefinitely, and this can work to your benefit since this arrangement allows the reporting agency to report only good credit once the credit file has been restored and maintained.

Bookmark this page | Search this site | E-mail to a Friend






Top rated articles for perfect credit
1. Budgeting 101
2. Are your finances as strong as your marriage?
3. Dealing with creditors
4. Shady credit counseling services may do more harm than good
5. How online credit counseling works

Editors picks: perfect credit
6. Credit consolidation information and solving Credit Problems
7. The consumer's guide to credit counseling
8. Does Debt Counseling Affect Credit Ratings?
9. How to Find Credit Counseling
10. Your 3 worst debt consolidation moves

Premium articles: perfect credit
11. Are the credit bureaus really helping you?
12. Get Out of Debt Free with a Consumer Credit Counseling Service
13. Your credit card payment just doubled
14. What is Wrong with Credit Counseling?
15. Using A Credit Counseling Service

Related articles: perfect credit
16. Consumer credit counseling services: Should You Use Them?
17. Five Differences Between Debt Reduction and Credit Counseling
18. Trapped by debt? Free yourself in 7 steps
19. Credit Bureau Reports and Your Credit History
20. Are They Really Putting You in the Drivers Seat or Just Taking You for a Ride?

Recommended Reading : perfect credit
21. Credit counseling program
22. Choose Your Credit Counselor Carefully
23. 8 dirty tricks your credit card company can play
24. Credit counseling organizations can mislead you and bring IRS penalties
25. How a Credit Consolidator Can Reduce Your Debt

1. Creditor predator - how to manage credit - includes related article on mistake on credit reports
2. Why bad debt shows up more than once on credit report?
3. Solving Your Credit Problems
4. Are the credit bureaus really helping you?
5. Debtors, beware: Not all credit-counseling agencies are honest
1. 5 Ways to Get Yourself in Debt
2. Debt Consolidation - When You Owe Them Money
3. Online Brokerage Service
4. Benefits of Debt consolidation
5. Online debt consolidation services

Credit Counseling and Debt consolidation services in Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi,



How to build a perfect credit
Debt consolidation services in Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania,

Debt consolidation services in Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Washington DC, West Virginia, Wisconsin and Wyoming.

Add website or submit URL link of your site to 1000 free directory