The empirical impact of a bad credit entry on a credit score is not measurable.
“There’s no perfect way to predict what variable will change the weight given to any of the five scoring elements, which is why FICO’s algorithm is often referred to as the “black box”.
A quick summary of practical credit scoring repair tactics you can use.
The first part of credit score repair involves 1) understanding credit scoring and how to skew the credit rating system in your favor, and 2) using credit repair techniques to clean bad credit.
It’s been widely perpetuated by the collection industry that any payment can reset the seven-year credit reporting statute.
Collection agencies will often unlawfully furnish account information beyond what is allowable by the FCRA.
They’ve changed their policy, but are they still evil?
In my second edition, I wrote about Capital One’s policy of failing to provide a credit limit when they furnish account information to the bureaus. This failure could have potentially hurt a credit score, according to Craig Watts (FICO).
Most victims suffer needlessly, since knowing what to do can make it far less painful than it needs to be.
Indications that identity theft has occurred include unfamiliar tradelines and inquiries. And once it has occurred, you will certainly fight an uphill battle to get things straightened out, particularly if you don’t take action early and follow the Fair Credit Reporting Act guidelines.
There are many ways to protect from identity theft. Some are practical, while others are more extreme.
Should a thief open new accounts using your identity and then fail to pay off the debts, your credit will be ruined, and unfortunately the mechanism for repairing the damage is spotty.
Breaking down the many choices for identity theft monitoring.
In spite of the precautions taken, anyone is susceptible to identity theft. Yet the odds of its occurrence can be greatly mitigated through the use of the practical measures, and there is no way to avoid it completely by using credit monitoring services.
FICO’s online tools can be used to get a better handle on credit scores.
Since FICO’s “multi-variant analysis” causes one aspect of a credit report to shift a score one way or another. One way to see this variance in action is to try FICO’s Credit Score Simulator and Estimator.
The Fair Debt Collection Practices Act can be used to stop unruly debt collectors.
One of the core elements of successful self credit repair is your ability to deal with all types of collectors. After all, they are the ones who will be making many of the decisions regarding you and your account.
Knowing the debt collection statutes can assist in negotiating debt!
In addition to Credit Reporting Statutes of Limitation, there are statutes of limitation that apply to debt collections, in terms of how long a creditor has to collect on a debt using a lawsuit.
Simple steps for credit rating improvement.
There are some easy things you can do immediately to improve your credit rating, not least of which is to begin to pay your bills on time, now and forevermore. You’d be surprised how rapidly things improve once you do this one thing.
Real world strategies for improving credit scores.
Let’s dissect each of the five scoring elements and consider them in terms of their relative connection to practical, real-world actions you can take to improve your credit rating.
Dealing with non-compliant credit bureaus and furnishers who report inaccurate bad credit.
So, you’ve already sent multiple letters using BestCredit credit repair methods, and can’t get anywhere with the faulty reporting. What now?
How does credit card debt settlement affect your credit score?
This question is often asked, and one of the least understood aspects of a credit score.
NY Supreme Court Smacks Down Debt Collector
Previously I wrote an article which outlined the Debt Collection Statutes of Limitation by state. But many debtors often ask, “Which state’s debt collection statutes apply in my case?”
How long can bad credit stay on your credit report?
Sometimes it can seem like trying to read an Aztec Calendar when attempting to understand the nuances of credit reporting statutes of limitation. The short answer is that credit reporting agencies generally keep bad credit information for seven years, yet by law they can delete the information anytime they wish, even before seven years.1 The long answer, however, is much more complex.
Disputing inaccurate bad credit using letters.
One thing you must always consider carefully when removing inaccurate information is your FICO credit score. Some inaccurate information may not be adverse at all, and its presence may be helping your score more than it’s hurting it.