2010 – The Year of Credit Rebuilding

There has been no time in recent history when your credit score has been as important as in 2010. The vast reduction of available credit in the form of cut backs perpetuated by the credit card companies is the predominant reason for this. In fact, maybe you noticed that your available balance was drastically reduced overnight!

It is now even more difficult to be approved for a home mortgage. In order to be approved for a mortgage today, you must now have a minimum credit score that is 40 points higher and, if you are hoping for reasonable rates, you will need a minimum score which is 28 points higher.

You can rest assured that it will be almost impossible to obtain new credit in 2010, especially if your credit score isn't up to par.

In light of this, you will need a strategy for hiking up your credit score this year.

This past weekend, I sat down and committed to paper my 2010 financial goals. I even included my goal of increasing my FICO score to 775.

Your financial goals may not be the same as mine. However, I hope that you have given them some thought. Whatever goals you may choose, it is important to include improving your FICO score and removing negative items from your credit history in your overall plan. For a simple formula to help you achieve these financial goals, see below:

Credit Strategy #1: Questionable Negative Items Should Be Deleted From Your Credit Reports

You should at once dispute any questionable negative item such as a collection, late payment, charge off, repossession, and/or bankruptcy in order to remove it from your credit report.

You can do this yourself with a regular dispute letter which you can find here.

Sometimes, items such as judgments, charge offs, and repossessions are particularly stubborn to remove from your credit report. As these items have a tendency to be a bit more "sticky," you may require something more forceful than a standard dispute letter.

Something you might try is called "debt validation." This is where you demand that your debt be validated by the original creditor. (This is substantially different from disputing an item with the bureaus. However, it is often very effective when dealing with collections and charge offs.)

It is probably best not to attempt debt validation on your own. I tried to do it myself and failed miserably. In fact, I did such a poor job that the creditors just ignored my correspondence altogether.

It was a different story when my attorneys at Lexington helped though. They got a big bad collection agency (Midland Credit) to contact the bureaus and have them remove all the charge offs and collections.

You may not want to get a firm like Lexington Law involved. This approach is for people who are seriously dedicated to repairing their credit. If this is you, you can contact Lexington Law at (800) 636-3158 and speak to one of their paralegals for a free consultation.

Credit Strategy #2: Move Forward with Building Good Credit

If you have an unsecured account, this is pretty easy to accomplish. Pay your bills on time. It would be even better to set up an auto pay so your payment is never late. Doing this also saves you the cost of postage so you are actually saving money!

Rebuilding good credit can be more difficult if you don't have an unsecured account such as a Visa or MasterCard. Additionally, it will be very difficult to obtain one of these cards if your credit score is in the 500 range or lower.

Credit Strategy #3: Don't Get Discouraged or Let Down Your Guard

Stay persistent. This will take time. If you get started today you can consider yourself ahead of the game. Keep a detailed log of what your score is today and track your progress. Odds are that if you follow these tips your score will continue to climb each month.

Don't become down-trodden if things don't work out the way you think they should. Different strategies may be available to tackle an issue.

We raised our credit scores from the upper 500 range to 745 and 763 in under six months and got approved for our dream home. See proof of our credit repair success at www.creditforcouples.com and get the real truth about lexingtonlaw.com .

The Advantages of Getting Your Credit Report

It is easy to obtain a copy of your credit report and this is the first thing you need to do to start repairing your credit. This article will explain how to go about obtaining a copy of your credit report and some of the benefits for doing so.

The most common reason people request a copy of their credit report is to assist with repairing their credit. Credit reports list entries which include a person's financial history, such as identifying information, credit accounts, and payment history. The review of a credit report will tell a person if all of their credit information has been recorded accurately or if there is false or inaccurate information which may be affecting their credit score.

You can dispute any inaccurate or false information you discover on your credit report. To do so, you will need to send a dispute letter to the credit bureau requesting the correction of the disputed item. The credit bureau then has 30 days to obtain verification of the recorded information. If the credit bureau does not receive verification of the disputed entry, it must delete the entry in its entirety. If this happens, your credit score should increase.

Another reason for obtaining a copy of your credit report is budgeting. By viewing your credit report, you can determine if you should attempt to consolidate your debt or if your should re-prioritize your debt payments.

Identity theft is a concern to everyone these days and it is the motivation many people need to request a copy of their credit report. By comparing your recent credit transactions against an up-to-date copy of your credit report, you can see if there are any discrepancies which might lead you to believe you have become a victim of identity theft. Your credit worthiness will be affected if you become a victim of identity theft.

There are several ways to request a copy of your credit report. You can obtain a copy of your credit report from one of the many internet businesses which offer this service. Additionally, you can obtain a copy for free from the three major credit reporting agencies, Experian, Equifax, and TransUnion. These three major credit reporting agencies are legally obligated to provide you with a free copy of your credit report once every twelve months. You may obtain your free copy of your credit report by calling Annual Credit Report at (877) 322-8228.

It is wise to obtain a copy of your credit report. Request yours today and when it arrives, sit down and review it for any inaccuracies so you can begin to rebuild your credit.

I Freed Myself from the Midland Credit Management Collection Agency. See How I Did it at www.MidlandCreditDebt.com

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A Credit Card Can Help to Rebuild Your Credit

Yes, you can use a credit card to help rebuild your credit. However, you need to follow a few steps in order to accomplish your goal.

The credit crisis has everyone scared, as well it should. Multitudes of people who once never missed a payment or even considered that they would default on a loan are now battling below-average credit scores. Lenders often feel that below-average credit scores are the sign of a bad credit risk.

If you find yourself in this situation now, be assured that you can dig yourself out of this proverbial hole. One way to do this is to use a particular type of credit card to help rebuild your credit. After obtaining this credit card, you will need to use it wisely, which means paying the monthly bill on time every month, and not overspending. By doing this, you will begin to see your credit score rise as you improve your spending and payment history.

Are you wondering what type of credit card you should or should not look for? Well, if your credit is suffering, it is wise not to apply for an unsecured credit card which generally offers a low annual percentage rate (APR) and many benefits. Your credit score can actually suffer even more if you apply for one of these unsecured credit cards and you are denied. Instead, search for a good quality secured credit card. Approval is normally guaranteed if you apply for a secured credit card.

Secured credit cards and unsecured credit cards are basically the same. Just like with an unsecured credit card, you should still be able to purchase goods and services and make cash withdrawals using an ATM. The major difference between these types of credit cards is that a "deposit" will need to be provided in order to begin using a secured credit card. Your credit limit will be determined by how much you deposit with the credit card company. Although the minimum is usually $100, you can deposit more if you would like to do so.

When performing research for a secured credit card, be sure to look for one which provides reports to Experian, Equifax, and TransUnion, the three major credit reporting bureaus. A credit card that does not report to these three credit reporting agencies should not even be considered.

Also, make sure that you find the secured credit card with the lowest APR, as well as the fewest and lowest charges. The various fees, penalties, charges, etc., vary greatly between the credit card companies so make sure you consider all the angles before you apply. Prior to submitting an application for a secured credit card, make sure that you have found one that will meet your need of rebuilding your credit, while not charging you an arm and a leg.

So, now you have your brand new secured credit card in hand. What now? From this point forward you will need to handle and manage your credit card carefully and with great consideration. Remember, the idea is to rebuild your credit, not dig your hole deeper. You should consider purchasing a few "small" items on the card each month. Then, turn around and make payment well in advance of the due date. It is even more desirable if you pay the balance off each month. I did say "small" items!

You should see your credit score increase a little each month by handling your credit card responsibly. This careful use of your credit card should assist you in becoming a "good" credit risk.

Lexington Law Fixed this Man's Bad Credit and Raised His Score by 163 Points. See Why it Works at www.lexingtonlawreviews.com.