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The excerpt below is from a series of articles on credit repair …

Many of us believe that it is only through an agency that we could possibly have any hope for repairing our own credit. Rest assured that this is not true. It could possibly cost you more money and time to arrange through an agency than it would to just do it yourself. My recommendation, before contacting an agency for assistance, is to follow the steps below. You may just be surprised at the results.

Credit repair takes time and it definitely takes patience. You first need to contact the credit agencies in writing and request a copy of your credit report. Federal Law entitles you to a free credit report every year. There are three main credit-reporting agencies that you will need to contact. The bureaus information can be located by running a search on the internet for “Credit Reporting Agencies” or looking through you local phone book. Include the following in your written correspondence with the credit agency.

1. Written request for a copy of your credit report (You are entitled to one free credit report a year).
2. Include a copy of your state ID.
3. Send proof of your current address if it is not current on your ID.
4. List your last known addresses for the past 5 years.
5. Include a copy of your social security card.
6. Sign the document

Allow at least 4-6 weeks to receive your credit report(s). If you have already received your yearly credit report from an agency and are not entitled to another report, you may also use any denial letter of credit within 60 days of its receipt. If you receive a letter denying you credit, make a copy and enclose it with your written request for a copy of your credit report.

Once you receive your reports from all of the credit report agencies, review each report for accuracy and discrepancies. Design a spreadsheet or written log to track the differences. Do not hesitate to mark disputes or accounts that are invalid. If you find anything on your report that is worth disputing, most agencies allow you to file an official dispute via their website. Your credit reports should include contact and account information for each creditor. Organize all of your debt and creditors. Most debts older than 7 years may or may not appear on your report. If this is the case, leave them alone, do not dig around for them. Most creditors after 7 years of not having any contact with you will write off the debt, some may continue their pursuit to find you. Either way, don’t open the Pandora’s box if the account isn’t listed on your credit report.

Take it upon yourself to contact each creditor to negotiate payments, most are willing to work with you, some may make things very difficult. If a creditor is being difficult, feel free to ask for his or her supervisor or speak with someone else. Expect some creditors to be rude and unwilling to work with you, do not feel discouraged, and just ask to speak with someone else. Offer a settlement amount. write down details of the conversation as well as the person’s contact information every time you speak with a creditor …

Read the full article here: DIY Credit Repair

The excerpt below is from a series of articles on credit repair …

Avoiding complications in credit repair is almost as important as getting out of debt. When we have bills that we’ve neglected to pay simply because we didn’t have the money to pay them, or else we purchased items instead of paying those bills, we are in debt.

If you are considering a home equity loan to get you out of your current mortgage … don’t. Why? Simply because most home equity loans get you deeper into debt, and once you are obligated you will find the problem is more complicated than when you originally applied for the loan.

Lenders often target home owners with difficult financial circumstances, offering them high interest rates and making them believe this is a good solution for debt relief. In most cases, this is where foreclosures come in, or selling homes comes into effect. This solution is ultimately only an option to get you into deeper debt.

One solution you may want to consider as a home owner, is a “reverse mortgage loan.” This type of loan is often granted as equity against your home, your belongings, and so on. The loan offers a ‘cash advance’ solution and does not require that the owner pay on the mortgage until the end of the mortgage term or when you sell your home. Most lenders provide a lump sum advance, a line of credit, or else a monthly installment to the home owners. Some lenders even offer a combination of these to home owners.

This is certainly a better solution for repairing your credit and credit repair to a new future. Before you get too excited, however, it is important to consider the disadvantages. One disadvantage is that reverse home mortgage loans are often more suitable for people of an older generation that have built their equity over the years in their homes. Another disadvantage is that almost all home loans require upfront payments, such as title, insurance, application fees, origination fees, interest and so on. Therefore, it pays to ask questions and shop around before taking out another loan to repair or build your credit.

Another option for paying off your debts and repairing your credit is to borrow money from your family or friends. If you have someone that trusts you enough to loan you the money to get out of debt, it is often better than getting a loan.

There are several options or questions you must consider before asking your family or friends to loan you the money to build or repair your credit. One of those questions should be the obvious one: “Can my family members or friends afford to lend me the money I need to get out of debt?” Are the people you are thinking of approaching also kind enough to loan you money without putting high demands on you? Of course there may be interest involved, but remember they are loaning you money they could be spending on their own needs. Is it possible that you can repay the loan without complicating your situation further? Can I repay those who loan me the money to free myself of debt? How long do I have to repay the loan? Make sure there are no extra complications before asking friends or family for money to help get you out of debt …

Read the full article here: Credit Repair Tips