CREDIT REPAIR GUIDE
This guide is based on my own experiences cleaning up my own credit. Hoepfully it will do the trick for you too.
Email me if you know of more effective strategies.
Remember, this guide is not for deadbeats. I don't know how to erase bad credit that still has a balance owed (I don't think it can be done). Although I have had one entry erased after 14 years utilizing Form 11. However, these strategies are extremely effective for negative credit entries with zero balances.
1. Obtain Credit Report
There are three ways to obtain your credit report.
1. Simply request your credit file from the Credit Reporting Agency (CRA). Most CRA's will charge you $8.50 or more. Form 2 is the tool to use.
2. If you have been turned down for credit the CRA must supply you with a free copy of your credit file provided you request it within 60 days of the credit denial. Form 1 is the tool to use.
3. After you ask for verification of an entry on your credit file you should receive a fresh copy of your credit report. Always ask for the latest copy of your credit file with any correspondence you have with the CRA.
2. Analyze Credit Report
Analyzing your credit report is the hardest part of the process. Some of them seem to be formatted strictly for rocket scientists and neurosurgeons. But, believe it or not, all of the information you need to decipher your credit file is sent with it. All it takes is time.
3. Challenge Negative Entry
The tools that I have provided make this a very easy step in the process. Most of the negative credit entries on my credit file were successfully challenged with Form 3 and Form 4.
4. Research and Negotiation
Once you receive your updated credit report you will notice one of two outcomes. Either the challenged entry has been removed or it has not. If it is gone, you're done! Thats it. A big grin should now be forming.
If the challenged entry is still there, don't worry. There are still plenty of strategies to utilize. At this point I always use Form 7 to immediately challenge the entry again. Sometimes it works and sometimes it doesn't.
If the challenged entry is still there, keep the faith. We aint licked yet! Now its time to call the creditor (not the CRA) and request that the negative entry be removed. Yes it works to simply ask. Often times the very first person I talk to will comply. Staying professional and keeping your temper in check is essential. This isn't to say that you shouldn't be firm and resolute. Just treat the other person with respect. But this is no time to be bashful either.
My favorite arguments are:
1. "This is the only thing standing between me and a new home".
2. "I could have walked away from this debt but chose to make a tremendous financial sacrifice to do the right thing. Can't you do me this small favor after I faithfully paid you every dollar I owed you?"
3. "I am not attempting to cheat you out of anything. I made good on the debt I owed you. Why can't you do me this favor?"
A sense of urgency is helpful. A good reason to remove the debt, like needing to purchase a home, puts pressure on the creditor's representative. Afterall, they are human too. They have debts too. Wouldn't it make you feel like a real heel if you thwarted an entire families efforts to purchase a new home? Especially if the debt had been paid. But the creditor will probably be slower to take action if he/she perceives you are merely attempting to tidy up your credit file.
As a last resort, nag. Yep, nag! I don't like to do it but it works. If you really want that negative entry removed, nagging can do the trick. If you have paid the debt, especially if you have paid late fees it would be difficult for a creditor to argue that he still needs to ruin you. But some of them will. I once nagged my way to the president of a bank. Albeit a small bank in a small town. He and all of his lieutenants looked me in the eye and told me "we report em as we see em!" I left with my tail between my legs. Needless to say, I was not very pleasant to be around back at the house. It was very difficult to stay composed at the bank. But I did. I am convinced that my professional and courteous manner paid off. The negative entry mysteriously vanished a couple of months later. Of course, if it had not vanished the bank president would have heard from me again. Nagging works!
Well, thats it. That is the way I cleaned up my credit file along with my wife's credit file. We now have A1 credit. Neither one of us have any type of blemish on our credit report. And believe me, it was ugly! 95% of all the negative entries came off with the first challenge (Form 3 and Form 4).
