Credit History Repair
How To Repair Your Credit History

Credit history repair is essential for bad credit, a serous obstacle that hinders you from purchasing or refinancing real estate or for anything else for that matter, but even with no or poor credit you can still refinance, buy your first home or purchase investment properties.  If you have clean credit history, however, it makes buying a little easier. Lets look at what credit is and what one can do by establishing, building, and how to repair your credit history.

Credit Bureaus And Your Credit History Repair

Your credit history can never be too good. No matter what your situation, you can always use clean credit. Whether you are new to an area, recently widowed, divorced, bankrupt, or you have a line of credit for 100,000+ and would like to double it, establishing or improving whatever credit you have is an important part of gaining an edge and capital in purchasing real estate. 

We are all pretty much aware that information about our credit history is collected and stored in credit bureaus across the country. There are about five major credit bureaus that act as clearing houses for collecting information concerning everyone's payment habits. Smaller bureaus receive their reports from these larger credit bureaus. Potential lenders and businesses can contact their local bureaus to receive a report about you to help them decide if you are a good credit risk. 

Typical information included in the credit history report are personal information such as your address, phone number, job title or description, and marital status. 

The critical information included is payment schedules for loans and credit purchases, applications for credit, lawsuits, bankruptcies, and debts. Any information more than seven years old cannot be sent out. The exception to this rule is in the case of bankruptcy which stays in your file for ten years.

Credit bureaus do not verify or make value judgments about information they collect, It is up to your lenders to decide, based on their own criteria, whether or not to give you credit. That is why it is so important to make sure that your credit history file is accurate.

By law credit bureaus must show your credit history file to you and tell you who, if anyone, has asked for your file in the last six months. If you have tried to borrow money within the past 30 days and have been turned down for the loan, the credit bureau probably will not charge you to receive a copy of your file. Otherwise, there will be a charge of $10 to $15.Very few people do not have at least one blemish, small or large, in their credit file. Find out exactly what your credit history profile is and whether any flaws that exist are correctable. For example, you may have purchased an item and charged it on you credit card. The item was defective, and you returned it. Yet, you are still receiving statements showing an outstanding balance.

Write a letter to your credit file at the national credit bureaus and explain this and every other similar situation you encounter. Notifying a local bureau will not change your records at all locations. Because the national bureaus are clearing houses, changing the file at these locations will be reflected in all the future requests for information they receive from smaller bureaus.

There is an old saying that goes like this "If you ever want to get something done right go directly to the source". With that in mind, it doesn't matter if you are trying to repair your credit history yourself or use a professional credit repair law firm, either way, you will have to have a starting point.

A proactive self help approach for anyone is to know exactly what is on your credit report. You have to know what is wrong with your credit before you can correct it. 

Many credit history repair services claim to remove negative credit no matter what the conditions. Their advertisements make bold assertions; "Bankruptcy, tax liens, judgments, . . . not a problem!! One hundred percent guaranteed!! Credit History Repair - 100% cleared in 30 days!!"....BULL! Any reputable company can not make claims like this without reviewing your credit history file. Also look for legitimate money back guarantees. 

Unfortunately, it's risky to trust anyone to help you repair your credit history. It is estimated that credit repair services have scammed Americans out of more than fifty million dollars. The majority of credit repair services were started by entrepreneurs with a flare for marketing. Consumers have flocked to these credit services only to discover that their advertisements proved far more impressive than their results. Hiring a credit history repair company to repair credit is like playing the Lotto. Many of them are effective and legitimate, but it is difficult to tell a scam from the real deal.

We recommend just one methods to help credit history repair on this site, and for the foreseeable future, this is the only one that we would dare to place our stamp of approval on, Why? Because we know how powerful the quality of services that they provide first hand.

Lexington Law takes an aggressive stance to help you Credit History Repair!

While there are many credit history repair services who brand themselves as clean credit repair organizations, most of them lack the legal clout and experience necessary to adequately represent your dispute efforts. Some of the specific advantages of using Lexington Law Firm are:

• They can dispute directly with the creditors and have the teeth to back it up.

• They force your rights under the various federal laws to expedite credit history repair.

• They can do everything a non-attorney can do, and everything they can’t. For example, they can demand from a creditor and settle debts, cases where a non-attorney would not do you much good.

• Lexington Law Firm keeps abreast of current consumer laws as well as changes to, interpretation thereof, and applicability of those laws.

• They govern themselves according to the rules and principles of professional conduct.

• Lexington Law Firm practice the methodologies and structure like any law-practicing firm.

• Your case will be reviewed by an credit history repair attorney who will impose legal opinions when and if necessary.

• Your confidentiality is protected by the attorney-client privilege.

So, if you know that you are in over your head and the pursuit to correct your credit is just to much for you to emotionally handle then turn it over to the only professional law firm that we highly recommend for credit repair services, Lexington Law Firm, they'll get the job done!

Credit History Repair Continued... The Credit Pursuit Game

Another way to improve or establish clean credit is to go to two or three banks and open up a money market account in each. Find out the minimum amount for an installment loan each bank will make. Then, use at least that amount to open the accounts. If the minimum loan happens to be $1,000 per bank, open each of your money market accounts with $1,000.

About two weeks after you have done this, go back to each bank and ask to borrow the same amount of money you have on deposit. Offer to collateralize, or secure, the loan with your money market account. Make certain that each loan is an installment loan, of six months or longer. That way you can be certain it will do on your credit report. Bankers are very comfortable granting these loans because the collateral is right in their own bank. If the loan is not repaid, the bank has access to the money market account, making the bank's risk minimal. You should not have to pay much interest either, generally 2% or 3% over what you are earning in interest on your account.

When the banker asks what you are going to do with the money, you could tell the banker that you are trying to develop credit with his or her bank. Reassure the banker that the loan will be repaid on time, if not earlier, so that eventually you could even obtain a mortgage from the bank. Because banks are in the business of making money, you will usually get the loan. The banker would not pass up an opportunity to make a profit from the interest your loan is generating.

When you have secured a loan at each of the two or three banks, take the money you borrowed and put it into another interest bearing account. You will use that money plus the interest it earns to help pay back the banks.

A week later you will receive a repayment coupon book from each of the banks. Every Friday for the next three of four weeks, tear off a coupon and make a monthly payment. You might even personally take one or two payments into the bank and give them directly to the loan officer. You want to get to know him or her and build a banking relationship. After this, make your monthly payments every month until the loan is paid.

Not only have you retired the loan faster than the period for which the loan papers call, but you now have two or three banks that you can list as credit history references. When you do, be sure to give the name of the loan officer who worked with you. When people check with the loan officer about your credit, they will be told that it is excellent.

Once you have completed this technique, go back to the same banks and apply for a $500 unsecured loan for a period of 60 or 90 days. Be sure to repay them ahead of schedule. Then, go back to the banks about every six months and ask for increasingly larger amounts. This is known as establishing an unsecured line of credit. It can be very useful to you in purchasing real estate and will help establish a credit history repair pattern.

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