Before deciding on which credit repair company to use it is important to know if you are even a good candidate for credit repair. It is also important to do your research on which credit repair company you use. Don’t make the mistake of choosing the cheapest option.
First things first, the only way to tell anything is to get a recent copy of your credit report, making sure it is a FICO report. Just saying “my score is low” DOES NOT make you a good candidate for credit repair.
You can get free copies of your reports once a year here.
It all depends on WHAT is reporting and HOW it is reporting. But I will get into that a little bit later.
Most of the services for getting your report, free or paid similar to Credit Karma and others do not give you reports and scores based on FICO scoring models.
In the world of qualifying for a house, car, apartment or getting a credit card only FICO matters. Make sure you remember that, FICO, FICO, FICO.
Once you have your credit report, review all the negative accounts and notes.
Keep your eye out for any of these:
- Late’s or delinquencies
- Profit & Loss
- Bankruptcies, or accounts included in a BK’s
- Tax Liens
Usually, these will be noted by different colors black, red, orange or yellow. But be aware some credit reports won’t have any awesome color variations. So, I know it’s difficult but you might actually have to READ the reports.
Once you have identified the negative accounts you want to look out for specific details, and every good report will have them.
- Past Due
- Written Off
- Date of Last Payment
- Date of Last Activity (DLA)
- Placed for Collection
- Paid for less than full amount
Most Importantly you want to take note of the Dollar amount past due or still owed.
The dollar amount and date could determine whether you get sued for the debt or not, so this part is extremely important.
If a negative account collection, charge-off, profit and loss, repossession …etc, has a dollar amount over a thousand dollars you might want to leave it alone.
Depending on the “Date of Last Activity”. The last date you made a payment, or the last date the account was active, again you might want to leave it alone.
In some states like California if it is within 4 years, and you try deleting/correcting or disputing that account you could awaken the evil Collection agencies. There is a possibility they will come after you and sue you for the old account and even add on more fees sometimes doubling the original amount owed.
In most states, it is 6 years and it is called a Statute of Limitations.
Click here to check out what the time Statute of Limitations is in your state.
Going through your credit report, keep a tally of all the negative accounts.
If a majority of your negative accounts are less than thousands of dollars and the Date of Last Activity has been over 6 months to a year older, those are prime for Credit Repair.
If your accounts are recently negative, within 6 months it’s better to wait and leave them alone until they age.
Keep in mind most times collection agencies will report very old items as new when they buy them. Do not worry about those “new” open dates. Keep in mind the original Date of Last activity from the Original creditor, if it is much older and as long as it’s been over 6 months those items can be worked on.
Good Luck and Good Credit.
If you have your credit report and want an Expert Credit Hero to review it with you. Click here and let us know!
Legal Disclaimer – Credit Repair Heroes does not provide legal advice. The information provided in this blog are for informational purposes only and not for the purpose of providing legal advice. The author is not a lawyer and no attorney-client or confidential relationship exists or will be formed between you and Credit Repair Heroes or the author. You should contact an attorney to obtain advice with respect to any particular issue or problem.