I know I have not updated the blog in a long time but I was busy with a couple clients. I have decided to write this article today about rebuilding person credit because I was reading an article written on another credit website about rebuilding credit and the author clearly did not have experience rebuilding his own credit.
We all make mistakes, and when you first get credit many people do not understand how important it is to maintain good credit and I was one of those people. If you have found yourself in the same situation all is not lost, but you have to commit to it.
Getting Rid of the Negative entries on your credit.
The first step to rebuilding your credit getting rid of all or most of the negative entries on your credit. I know this is pretty obvious but I will like to go into the options that you have to remove the negative items on your credit.
1. Dispute Electronically - In order to dispute negative items from your credit electronically you must be set up with a credit monitoring service. The one we recomment is GoFreeCredit.com . This company is one of the few companies that still offer a 30 day free trial. Most of the other companies offer a 7 or 10 day free trial. Once you are registered with them, simply login and go to the dispute section. You will be able to despute any negative items on your credit directly from their website. They may ask you a number of questions about the specific post but it is a quick and easy process.
2. Dispute Manually - Disputing negative items manually entails writing letters to the credit bureaus and the creditor explaining why those specific negative items should not be on your credit report. A quick google search of “free dispute letters” or “dispute letter samples” will give you a wide range of letters that you can use for your own personal use by simply updating the letters to fit your need.
3. Hiring a Credit Coach/ Credit Repair Professional - Many people cry down credit repair services as they claim anyone can do it themselves. Although this is true in many cases, some people simply do not have the time to learn and research everything that needs to be done and simply prefers to hire a professional. We offer credit repaor services at $350 per person and $650 per couple. Give us a call at 305-432-2921 and we can have you going in no time. The price is for the entire process.
Building Positive Credit
Once you have overcome the hurdle of getting rid of most or all of your negative credit, you now have to build positive credit items. This can be a challenging task in these times. Many of the credit cards that were once available for people rebuilding or with no credit are not available anymore. Now that you are ready to add some positive credit these are your options:
1. Add Authorize User Tradelines- According to Wikipedia, Authorized User Tradelines or “Piggybacking” Tradelines is a practice involving seasoned trade lines, sometimes called piggybacking, which uses a creditworthy borrower’s accounts to improve the credit rating of an unrelated third party.
The creditworthy borrower adds the third party as an authorized user of his lines of credit, but does not actually provide the third party with materials (credit cards, account numbers, etc.) that would permit the third party to make charges against that account.
The benefit to the third party is an improvement in their personal credit rating—their credit score increases. However, this does not change their entire credit record, but merely increases their credit score as a result of the newly added tradeline. This may make the third party look like a better credit risk, and may improve the third party’s access to new credit. However, a credit score is only one aspect of the lending process; that is, the borrow must pass all underwriting procedures, which include much more than the credit scores of the borrow.
We have Authorized User tradelines for sale from $350.
2. Add Primary Tradelines - Primary tradelines are accounts where the client is the primary holder of the account. These tradelines are more powerfull than Authorize user tradelines but they are very scarce. I have one source that I use for these type of tradelines and if you are interested feel free to call or email us at 305-432-2921 or email@example.com.
3. Acquire New Unsecured Credit Cards - Once you have cleaned your credit there are a few cards that are available to you which will help you to rebuild your credit. Although some of them have high fees, as a consumer you must understand that as you are rebuilding credit you are a higher risk than others and the fees are put in place to mitigate those risks and nothing is free. You must accept that you are getting another chance at building credit and this is one of the prices that you may have to pay. The following cards or a couple unsecured credit cards available to people with not to good credit.
Applied Bank Visa Business Card – This card is good for anyone with a business and not so good credit. They will usually approve you for $500-$750 in credit. This is a visa card so it can be spent anywhere.
Horizon Gold Card – The Horizon Gold Card is a Store Card that usually starts at a limit of $2000. This is good for some of us who do not have many options when it comes to getting a new credit card and it is an unsecured card.
Capital One Classic Platinum MasterCard – This is a great card that capital one kept through the financial crisis. They are still giving consumers a chance to build their personal credit. There is a $39 yearly fee that comes out of the card if it is approved.
4. Acquire Secured Credit Cards – I personally do not like secured credit cards but they do serve a purpose.For those of us who want to build our credit fats, many companies offer cards that are secured by a deposit that you will make to them and receive a small return on th e deposit. The following are a few that we recommend.
First Progress Platinum Secured MasterCard – The First Progress Secured Platinum MasterCard® Credit Card, designed to help individuals build or rebuild their credit. This full-feature platinum secured MasterCard offers worldwide acceptance and a credit line based on a security deposit, rather than on a credit score.
American Express Prepaid Card - The American Express® Prepaid Card features no monthly or annual fees, no credit check as well as some of the premium American Express services you’re already accustomed to: Purchase Protection, Fraud Protection, Roadside Assistance and more.