Ok...so you have bad credit. SO WHAT are you going to do about it?
Well...let's begin right now. Chances are you have been procrastinating too long already. Or, maybe
you just didn't know where to start. Either way, there is no time like the present to get started, and I
want to help you.
I have been you. I have been both the procrastinator, and that person with some great ideas, a great
desire, etc., but just didn't know where or how to begin. I often think of all the things I would have
accomplished if I would have just done something...anything on the path to where I was trying to go. Have
you found yourself still thinking or talking about something you initially thought of doing several
months ago...years ago? Just imagine if you would have devoted even just 30 minutes of your time a day,
devoted to that endeavor. How much would you have accomplished by now? Something to think about isn't
it?
Anyway...that's the past, and the great news for you is that now a door of opportunity is opening for
you to embark on a journey of self- empowerment and change. And the journey begins with this first
step.
To begin, take a moment to visualize yourself with excellent credit. See yourself living in your dream
home...driving your dream car, money in the bank...comfortable and happy... whatever happiness means to
you. If you can't see it... feel it, then you will not experience it. See it clearly in your mind in
explicit detail and focus your mind on these images. It helps to surround yourself with these images so
that you have constant reminders of your goals and stay motivated. For no reason should you lose sight of
where you want to go...despite what obstacles you may anticipate that stand in your way. Those who
accomplish greatness only see where they want to go, and don't worry about how they are going to get
there. By acting in that wisdom alone miracles somehow just happen!
Ok...now let's talk credit! What you are about to read are some facts, and some information you may
find interesting. It is my hope that you feel inspired to take action, having a better understanding of
the credit game, and some knowledge with where to begin.
Credit Facts
- Credit Bureaus, also called Credit Reporting Agencies, are owned privately, with the sole function
of collecting information regarding your credit history, and then selling that same information to
creditors/lenders for a fee. These lenders/creditors need this information for marketing purposes, for
example, so they know who to send their credit card offers.
- There are 3 main CRA's, TransUnion, Equifax, and Experian. As you see I underlined "main" as there
are other reporting agencies, though for the purposes of composing your FICO score the above mentioned 3
are used exclusively. You can obtain a copy of your report by contacting these CRA's, or going online to
MyAnnualCredit report.com. Don't be fooled by other online companies offering a "free report", as there
are many.
You will need a current copy of your Credit Report to begin repairing your credit.
- Your FICO score, created by Fair Isaac Corporation, is a numerical score, used as an indicator of
how credit worthy you are, or how great a risk you are. It ranges between 300-850, and is used by all 3
CRA's, and the majority of lenders/creditors. Generally speaking if you were to rate your standing based
on this number range it would look like this:
750+ (Excellent)
720+ (Very Good)
661-720 ( Not Bad)
620-660 (Average)
619 and below (low)
(give or take 1-2 points here or there, depending on the source)
-Your FICO score does not come automatically when you order your Credit Report. FICO scores require an extra charge. To be safe, it is best to
obtain these scores from myFICO.com, as the CRA's may offer a score calculated by that agency and not
a true FICO score. Look for "Certified FICO Credit Score" to be sure.
-Your FICO score is impacted either positively or negatively based on 1.) your payment history, i.e.,
history of late payments 2.) the amounts you owe on each account 3.) the length of your credit history
(the length of time you've had active credit)
4.) newly opened accounts and inquiries 5.) types of credit (the types of accounts on your
profile).
-You can repair your credit and raise your score by consistently paying your bills on time every
month, disputing items on your Credit Report and having those negative items removed, and if you have few open
accounts and very poor credit, obtaining secured credit cards, to build your standing. There are many
ways to have items deleted from your credit profile, and the CRA's must comply because they are
mandated by law to do so.
- Please note also, if you dispute items on your report, and then within the 30 days allowed, the
CRA's send you back a letter indicating that they have verified the item(s) to be accurate, you can
request that they explain their method of verification, and essentially prove to you that they conducted
a "reasonable" investigation. The burden of proof is on them.
- The Fair Debt Collections Practices Act, and the Fair Credit Reporting Act, were both created to
protect you, the consumer, from unfair practices used by debt collectors, and the CRA's.
Wow...I could go on and on. There is so much regarding this topic, and truly many, many ways to
approach repairing your credit. The above mentioned has barely scratched the surface, but it is a great
start. It is my belief that if we seek knowledge....wisdom, etc., we will find it. And to be honest, I
don't even think it's so much our finding "it", but rather "it" coming to meet us, revealing itself to us
because we had faith enough to try...to believe. It is my sincere desire that you obtain much success in
all you aspire to do.
