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Restoring credit history is impossible, fortunately

There are a lot of misconceptions about credit history. Let’s put things right and start from the very beginning.

1. Your credit history is basically a record of all the payments you make. It’s a must for every creditor to report ev­erything without trying to hide any facts. And that’s exactly what they do – nobody wants to lose a license.

2. Credit history was introduced as a way of helping people to get loans, not as some form of punishment. That’s why any violations that affect your credit score (CS) have strict time limitations.

3. Nobody can give you a definite answer as to why your CS goes down sometimes. This is due to the fact that there are over 40 different factors that determine the fluctuations of your CS. For instance, one credit request per month can raise your CS, while five such requests per day can ruin it. By making a late payment, you might lose, figura­tively speaking, 40 points within the first month. After 40 days, however, it will go down to only 5 points, while after a 60 day period, it won’t have any impact on your CS at all.

What’s more, all financial problems such as bankruptcy, foreclosure, judgments, or collection, provided they were re­solved by you, cannot affect your CS for longer than 12 months. On the other hand, unpaid collection of $ 5.00 will always remain on your credit history and be an obstacle for its improvement. Zero tolerance (ZT) rule is at work here, and nothing can be done.

So, if a certain record in your credit history keeps affecting your CS, your creditor will never stop reporting it, and consequently, there is no way it can be removed. However, if this record no longer has an impact on your CS, there is no need to waste time and money trying to delete it. Bear in mind that 99% of those who have access to your credit, can only see the CS but not the entire content of your credit history.

Credit history recovery after financial problems in the past is a much more important issue. In this case, excellent credit history of your friends and rela­tives can be of great help if they agree to include your name as an authorized user of their cards. Any credit card will be working for your benefit, but the process takes time. If you want to speed things up, analyzing the present state of your credit history is where you have to start. It’s not unusual for the creditors to delay reporting the settlement of your financial disputes to the credit bureaus. Such practices impede the process of your CS recovery. Unfortunately, there were cases when years had been lost due to the creditors’ negligence.

To avoid repeating such mistakes, here is what you should do. Immediately upon eliminating your debt with each creditor, you have to obtain a Release Letter from them confirming that your dispute has been resolved. After that, send a copy of such Release Letter to all credit bu­reaus. Upon completing these 3 steps, I recommend that you ask your financial advisor to run your credit report again to make sure that all your debt records have zero balance.

I will be happy to help you with every step of the process.

joseph RozenbergPlease call me for more information: 847-520-7030.
email: mockbajr@gmail.com
site: www.drfgroup.net

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