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[H966]How To Clear Credit History

by Steve Salzman, Ste

To everyone that has no idea about credit and how it affects your credit history. I am a credit specialist at a mortgage company. I see many types of credit. Your credit score is built on an algorithm that the Fair Isaac Corporation has devised many years ago. If you were to call they wouldn't even be able to answer your questions on the mathematical equation. It is kept tightly sealed. Anyway, when I do a credit analysis many people make the same mistakes. The first mistake is they never ever tell the creditors that their income is higher than first reported. Second, they never or very rarely ask for an increase in their credit limits on their cards. But never carry a high balance on the cards. Credit limits should be raised every 6-8 months. You never want to max out the cards. Also, never cancel a credit card less than 24 months. Lenders want to see a 24-month history. Cards with less than 24 months are considered new and will not allow your score to improve.

The myth about derogatory and collection accounts staying on for 7 years. I have been very successful in removing about 75% of those questionable credit trade lines. The important part is to challenge all that is in collections and is charged off. The credit reporting companies (Experian, Equifax, & Trans Union) have to send out to those companies on your credit files a verification card. Many companies are too busy to send it back. They have 30 days to respond. If there is no response it must be removed. Once removed it can no longer appear on your credit history. If it does reappear on your history then you can dispute that with the reporting company showing they removed it once before.

Items on your credit history that are 7 years or older must be removed. Companies can no longer collect for it. If they try then you have a good lawsuit. This is called a statute of limitations. All this can be found under the Fair Credit Reporting Act. When collection agencies purchase a debt that is about to turn 7 years old they will resell it to other collection agencies that will report it on your credit history. This is how the debt remains on the credit history. Credit reporting companies remove debt 7 years after it is reported. I dispute the debt from the first time it appears on the history and inform the reporting company it is the same old debt that was already removed. It is really illegal for the collection agencies to do that but it is done. Also, if you get calls from collectors don't verify the debt. Tell them that person is not you and that they have that person's old number or whatever but never verify it is you.

If you have recent debt (within the last 2 years), I would pay those off. This would get your credit scores higher. My clients have obtained higher scores of more than 20 points after I was finished with their credit analysis. If you have any judgments on your credit history this will remain on there for 8-10 years. I have had those removed too. It depends on the court. You never want to go to a Consumer Credit Counseling Service. STAY AWAY FROM THEM!! Don't listen to the ads. It's all lies. Lenders look at these companies like as if you filed a chapter 13 bankruptcy. Also, these companies, for the most part, never pay your bills on time. On your credit history it will reflect late and slow pay.

Individuals who find themselves in dire straits in terms of credit due to poor spending habits or neglected payments can find themselves out in the cold when they try to receive new credit. Having a bad credit score can affect an individual's ability to do a lot of things, from purchasing a home or car to renting movies. Individual consumers in this position may find that they feel they are stuck in an endless cycle; they cannot get credit because of poor credit history, but without a means of getting credit they cannot repair that history.

Credit cards for people with bad credit, offer a way to have credit extended to these individuals while also providing a means of credit repair. Bad credit credit cards work extensively with the three credit bureaus of the United States (Experian, Equifax, and TransUnion) in order to establish the approval rating of individuals. These services keep track of the financial histories of millions of individuals across the nation and are responsible for assessing credit and issuing scores for consumers based on that history. It is to these services that companies send applications in order to determine if the applicant is eligible for a certain type of card.

In the case of credit repair, holders of credit cards for bad credit can expect a report to be sent to all three credit bureaus each month. If a card holder is keeping pace with payments and purchase fees, these statements will reflect positively on their credit history. This will allow the bureau involved to raise the credit rating of the customer, allowing credit history to slowly be repaired. Not only will individuals find their credit score going up, they will also find that as good history is established, the limit on their card is raised.

In order to receive one of these cards, applicants must provide the credit card company with information such as age and buying history (current and former credit cards). Successful applicants must be of legal age, and must also be residents of the United States of America. Depending on the card that you choose you can expect to pay a higher APR than regular credit cards and they also have an annual usage fee.

Most of the major credit card companies that issue credit cards for people with bad credit offer benefits that include access to online services. With these services, it is possible to get vital information on a card at any time, day or night, seven days a week. Individuals can use this service to observe their accounts or to make payments.

In addition, these companies also have toll free numbers available for emergency situations from which customers can also manage their transactions. Holders of bad credit credit cards also have the ability to receive cash advances from thousands of ATM machines all over the world, and the ability to make hotel or rental reservations over the phone with participating merchants.

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Both Steve Salzman & Anthony Samuel are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Steve Salzman has sinced written about articles on various topics from Finances. . Steve Salzman's top article generates over 720 views. to your Favourites.

Anthony Samuel has sinced written about articles on various topics from Check Credit Rating, Airline Credit Cards and Credit Cards. Apply for an or review and compare many more. Anthony Samuel's top article generates over 74000 views. to your Favourites.