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What Do The Professionals Recommend When It Comes To Credit Repair?

By Derek Brown
Published: Tuesday, November 2nd, 2010

There are several ways on bow you can repair your credit but the real effective way in repairing the credit actually is a combination of legal knowledge and some technical skills and of course common sense. When we talk of the technical aspect in credit preparation, there is a requirement of understanding what FICO uses for scoring and monitoring. Now, in the legal aspect one should also understand the policies and system used by Fair Debt Collection Practices Act (FDCPA) and Fair Credit Reporting Act (FCRA).

If you wish to know what the pros have to advice about credit repair then here are some of them:

Try to reduce your balance

There is a specific model used by FICO when it comes to the usage of credit card. They actually set five levels. Your score could either make or break your credit depending on how you manage your cards and a hundred and fifty points is a good point for you. The difference in the score will be the determining factor whether or not you get approved or denied of your loan and credit card. 20, 40, 60, 80,100% are the said levels and reducing your balance to twenty or lower is a good way of optimization. .

The collections

There should be a record of collections on our credit report. Legally, when a company passes the debt to a collection company, the whole credit report should is moved. This is a part that not a lot are giving too much attention to since there is no seen benefit from doing it. If you have the copy of your credit report then check them meticulously and dispute any inaccuracy that you find; it is your right anyway and there in no one or circumstance that can stop you from doing that. If you don’t know how and what to do then there are credit repair experts that you can ask help from.

Authorized Accounts User

FICO several years ago released the Fair Isaac model scoring system that has given the family members the right to the benefits. This is something not familiar to a lot and this is how it works: if you have a relative or maybe friends who are willing to add you or make you an extension to one of their good standing credit cards then the score from that account can be passed on you. One thing you have to check on though-make sure that your donor has a good paying history and that a reasonable balance is maintained and that the account has been active for the past three years.

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