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  • I agree with your take on retirees have no children with no debt really there’s no need for life insurance. Lately I’ve been told that life insurance can be use like a saving acct where in case of emergency or medical needs and nursing home care you can withdraw from your policy . I’ve have never heard of this before , is this some sort of a scam? Thank you

  • Thank you for the share. Very nice journey. Sounds like because you are able to generate income plus be responsible, you were able to keep credit score at a good rate. Encouraging! I’m still slightly confused about the travel hack thing, revolving credit cards, and thought you weren’t suppose to carry more than 5-7 at a time, and not let any close because it drops your points significantly (all of course only methods for those not spending above their means). Of course if life throws a huge curveball, then that’s a different matter which can adversely effect credit score, along with other more serious issues. Granted you are able to make payments in time, not pay interest, is it still important, even if financially well off to not have more than the 7 cards. Also, yes heard the mixed credit is important. What if you cannot yet afford a mortgage, then it’s not posisble to get that mixed/diversified line of credit to help with credit score?

  • I have a couple of credit cards with fees. One of them is $100 a year! The charges are broken down to a monthly fee. It has a zero balance ($1450 limit) and paying that fee is honestly a pain. Can I cancel that card?

  • My score is absolutely terrible! No matter how hard I try, I’m not getting anywhere. I can’t even qualify for a simple loan. Im about to give up

  • Thank you for the great advice. I am in escrow and don’t want to apply for any new credit at this time. I have 18 inquiries on my credit report (all 3) more than once or twice, I am challenging them through letters obtained through Lexington Law Firm.

  • Thanks for sharing this fantastic list of websites for saving money. I will definitely try these tips to spare some money. I would suggest you to add Dealsshutter website as well as it helped me alot in saving alot of money on online shopping. Just a suggestion in case you need an updated article!!

  • Yes pay the original creditor. That’s the only way for u to get that off your credit report l. Request an agreement in writing not verbal.

  • What can I do if I go in a business partner and opened a company credit card under our personal names as joint account ? The on reason I did it it’s because his credit is bad and mine is 800 credit score. He promised to pay for it when he use it. Now we’re not really in good terms but he charged up $8500 on the credit card I never seen nor activated it. When it arrived he opened it and activate the credit card with his name on it but technically both card is under my name didn’t even know it arrived. What else can I do beside taking him too Court?

  • All of this is old information. Nothing new. We all know this umless your 17 years old. LTV, down payment, credit scores etc.
    Tell us something we dont know for once. Same information over and over and over.

  • I was hacked back in January/February. I lost access to all my bank accounts, my investment accounts and noticed very very odd issues started to arise. I lost followers from fakebook and instascam. I still haven’t been able to fix everything. They cloned the SSID network service and then ran overlay software to monitor my passwords and the accounts. Also when I would try to call my bank it kept making sounds as if they’re listening; it happened five times back to back. Totally not cool.

  • I need help, my wife is being sued by a collection agencies attorney, i’ve offered a settlement of nearly 30% but they refused, debt is almost 6 years old. What should i do? Can anyone help?

    • It will drop off your credit report in (7) years. Don’t allow them to bully you. Ask them how much did they buy the account for and pay that amount. I can assure you they paid pennies on the dollar. I wouldn’t pay!

  • I use ultra mobile. I pay 29 each month, always have internet, service, and can call the Dominican Republic everytime I el want with no issues it alse has wifi calling that when I’m in the DR I can receive and make calls withought roaming. If you want roaming you can add 5 dollars as you need it. Remember to check your coverage. I live in ALPHARETTA, GA.

  • I went from Verizon to Choice then now I have Straighttalk and paying $66.00 a month I don’t get service were I live if I want to make a call it says I’m roaming so I have to pay extra another $15 so in reality you really don’t save money

  • I recieved a collection letter about five years ago. The bill was for electronic equipment totaling over $4000.00 . Not mine. When I contacted them for the address of the bill they said It was Kentucky. Never lived in Kentucky and never been to Kentucky. No intention of paying this bill.

  • I disagree with your 4th choice of Capital One Quicksilver Cash Rewards Card. I’ve had this card for quite some time now and it’s not that great. Trust me, 1.5% back on all purchases is nothing to get excited about. Why didn’t you look into Discover’s offerings? They have several cards that are equal or better than Capital One Quicksilver. Also, the airline miles rewards offered some Discover Cards beats anything that Quicksilver could ever offer. Pick a new #4.

  • Bank closed my credit account which had excellent payment history bcuz I had $0 balance for 14 months my credit score was dropped 48 points as a result I paid off 2500 in debt $$600 more than than the closed Account credit limit these improve my credit usage and available credit but my score only went up 22 points. This is predatory

  • Thanks for helping me understand what credit repair companies do and how they work. I find it interesting to learn that they can diagnose a credit report and figure out if there are inaccuracies on it, so they could get removed. My friend told me that having bad credit has affected his lifestyle and he’s looking for a way out of it. I’ll share this with him so he could consider hiring a company for credit repair.

  • I got 2 phones, one free with purchase in a 2 year contract coming off of a 50 per month unlimited plan with smart phone, att said it would be same price but they lied!! I pay 248 per month for 2 iPhones with unlimited service, with 43 dollars going towards the one phone that was not free, I cannot wait to get out of this it nearly kills me every month!! Then add direct tv for another 150 per month, part of the deal, for one year promo price but doubling in August!!!! What can I do???

    • Have you heard about cable pass and I think HD Streamz. It’s an app you use with fire stick but I’m not sure if that’s the name of it. Cable pass is an app where you can get thousands of channels for $17 a month and you can share with family. They say you have to jailbreak your fire stick but I haven’t so far. I don’t know who your internet provider is but I have Spectrum which was running a promotion at the time for $40(normally $80). I hope this helps. If I find the exact name of the other one, I’ll try and find you. It has 4,000 channels. Good luck.

  • I’m a client of credit pro and they are awesome. They raised my score 50 points within 30 days. I’m still awaiting more results.

  • I have 1 bankrupcy from 11 yrs ago that did not even remove anything? I did it myself and made a mess. Then a attorney did my bankrupcy approx. 2 yrs ago. These things are keeping my credit a mess. Do you know how i could remove the old ona?? Thank you. Peggy Wagner

  • If my Social number is locked so that the third party can not access my report without my authorization will they still be allowed to pull it?

  • If my Social number is locked so that the third party can not access my report without my authorization will it still allow them to pull it?

  • The authoress told us that we should not close old accounts when they are paid down. That is true, as age of credit figures into your credit score.
    However, she advised people to cut up their older cards if they are afraid that they’ll run up the balance again.
    Freezing cards into a block of ice would be a better ploy.
    You would be able to periodically use the card(s) for a small purchase that you can pay off promptly — after purposefully going through the inconvenience of thawing that block of ice.
    If, however, you cut up any older card(s) the issuer(s) could close any of those card accounts due to lack of account activity. That would cause you to have a decreased length of credit history when the card eventually falls off of your credit history. Never let your OLDEST credit card get closed due to inactivity. As stated above, that can reduce the length of your credit history once the card falls off your credit history — plus, that will decrease your amount of available credit, which will increase your overall credit utilization if you happen to carry a balance on any of your revolving credit.
    So, freeze those cards, making it difficult to use them willy-nilly — yet allowing you to make periodic small purchases which you pay off promptly. Do not allow any of your cards to be closed due to inactivity. That can work against you.

  • I have multiple credit cards and all of them up to date with some balance and a never missed a payment, my question my score it was 760 and now like 688 , my question why’s the score goes down if everything paid before time I think the score should not be effected even if you have a balance. Thanks

  • I hired a credit repair company. They have now charged me $699 for the first month, yet nothing has been removed or repaired. Is this legal, if so what am I paying for…?

  • I had two ER accounts one which was covered by insurance. We repeatedly gave them the insurance info, but they claimed we didn’t and sent both accounts to court for judgement. I paid over two thousand dollars to the collection agency. Should I have not paid. What are the ramifications if I didn’t pay after the court judgement?

  • A well thought out, over funded whole life insurance policy can totally eliminate banks all together! It’s called Infinite Banking and it was a concept first introduced by R. Nelson Nash. You have to make sure you’re getting the right policy so he started the R. Nelson Nash Institute, where you can get policies that fit, you never have to use a bank again, through the policies you become your own banker and when you need money you lend it to yourself at 5% interest and always bank be your own best costumer and pay yourself back promptly, then you are continually adding to your assets. He had written many books and has a ton of YouTube videos of speeches, lectures, interviews on how Infinite Banking works!!! Check it out if you want to be free of banks forever!!!

  • To understand credit has been a difficult task being that there are so many hidden secrets. I am learning that credit is a different walk in this life and it is not so simple as it sounds.

  • I want to have a good credit rating but don’t want to use a credit card. This article is totally a big help for me. I’ll try to do what you said here to accomplish my goal. Thanks for sharing this article.

  • I bought this for my daughter to build her credit, because she has none. She was refused a credit card.

  • Question
    Transfer balance to another credit card will affect me , because I have 4 already
    And cancel 2 cards will have impact on my credit

  • Yes, I think that it’s better to figure out first what you CAN Afford to pay and start there to reduce your business. Thanks for sharing this article. I’ll follow what you said here.

  • Hi Rebecca!

    The other day I was having a similar discussion with my business partner. Your article has provided great insight into this matter. I really liked it.

    Thanks,
    Bryan Snyder

  • I had been honored to get a call from my friend
    when he observed the important recommendations shared on your site.
    Browsing your blog publication is a real fantastic experience.
    Many thanks for taking into consideration readers much like me, and I wish you the best of achievements like a professional in this field.

  • Nice article. Especially for the young out there. I am old (by many younger standards. 65 to be exact). I started both at work with a 401K back in the day. And privately on my own. I also invested in Rental properties by acquiring one duplex and eventually turning that into about 12 duplexes. (24 rental properties). I manged them at first. But eventually turned them over to a Property mngt company. (Best thing I ever did) . OK..Here’s my advice to those starting out..It is not easy. It requires Discipline and attacking wealth growing from a..variety of angles. Invest in things you know and are comfortable with. When I was young I invested in things I know people needed. People must eat, they must have a place to stay and they need healthcare (hint..invest in medical industry including the pharma side, technology, nursing aides, homes, ect). Only use 10% of your money in speculation or chance investments. Good luck to all of you.

  • Interesting perspective on flipping leverage positions. My question is; is scoring done with the same mathematical model? Do banks, car loans and Mortgage companies look at credit the same way? And if they are, why are scores always different?

  • I was a 620 now 484 due to loans and paying late, I previous was sick on two occasions and been behind every since, should I file bankruptcy

  • Annualcreditreport.com is NOT as cooperative as you may think. Nor is EQUIFAX. Both make it extremely difficult to get your file(s) online, without jumping through one or more onerous processes. They protect one another. It’s stacked against you, the consumer.

  • First Premiere Bankcard is by far the worst card to have, even after paying them on time for a year, they wanted to charge me a 3% charge on an increase. I paid their asses of and cut up the card.

  • Lexington law is the most useless company I have ever had the displeasure of working with, i couldn’t recommend them to my worst enemy ,, yes they send letters to creditors but at least for me,, they were not truthful letters. I had them 8 months and have accomplished far more in 2 months by myself then they ever have

  • I have an issue with the big 3 credit report agencies. I have a 580 score in all three…one of them never moves no matter what. A brand new car…all payments made on time…5 credit cards all paid in full every month to avoid interest. Yet score barely goes up. Looking to trade in my car for another one and all they seem to do is look at the lowest score and not the payment history. Am I doing something wrong??? I make 65k a year…same job for 28 years..total credit limit is 5k on all my cards…which I repeat I pay off in full every month

  • Hi
    I purchased a vehicle in 2017 it was totaled out in May of this year my insurance company paid and gap paid and they still negatively reported on my credit bureaus I was late paying. For example on Experian they reported 60 days late and paid on Equifax they reported that I was 90 days late and paid off, and on Transunion they reported that I was current and still owed $10,644.00.. I have also paid off three small debts and my credit score is still below 565 it should have gone up it has been 30 days since I have paid those debts off What should I do?.

  • The “authorized user” strategy will not work as easily as you make it sound. Companies are now owned by larger conglomerates whose CSRs will not just simply add another user’s name to the account. They now recommend that a user order merchandise under the cardholder’s account number with proper permission.

  • So we should start a movement in the government against both sides because what the hell do we have insurance for i haven’t had accident in 20 years and my insurance company doesn’t appreciate that.

  • I’m very interested in all the information I’ve obtained from you. I’m going to use the credit pros you recommended however I do have a question. If things stay on your credit report for 7 years, how can credit pros change/fix that?

  • After being in the finance industry for more than 30 years, I’m convinced that, if people stopped trying to live beyond their means, they would be much better off with 90% less debt. Nevertheless, paying off a collection account is debatable. When I was managing a national finance company, no one’s score went up by even a single digit after paying off an account. FYI, collection agencies will accept as low as 25% at times, and they will still earn their 29% fee from the original creditor as well.

    • And they report the accounts as fully paid and charge offs. Still negative! I’m now using The Credit Pros to clean up my credit report. Just started and already one unknown account I didn’t recognize has been taken off. I thought after the National Debt Relief negotiated and paid my creditors, I’ll be A-ok. Wrong! !However, it feels good not to be harassed by collection agencies.

  • PEOPLE BEWARE. YOUR CREDITOR SELLS YOUR ACCOUNT TO A COLLECTION AGENCY. YOU MAKE ARRANGEMENTS AND PAY THEM OFF, WELL, GUESS WHAT. THEY HAVE YOUR MONEY AND NO ONE (I MEAN NO-ONE) EVER HEARS ABOUT IT. i DID THAT WITH ONE OF MY HUSBANDS BILLS. I NEVER RECEIVED AN ACKNOWLEDGEMENT IT WAS PAID AND NEITHER DID THE COMPANY THAT HE ORIGINALLY OWED. THIS HAPPENED TWICE. I REFUSE TO PAY A COLLECTION AGENCY. PERIOD!!

    • I WAS WONDERING WHAT KIND OF PROOF OF PAYMENT THESE COLLECTION AGENCIES GAVE YOU IF YOU PAID THE DEBT OFF. THANKS FOR THIS TIP. NO WAY TO EVEN KNOW IF THEY WERE GOING TO MARK IT “PAID” ON YOUR CREDIT REPORT. WHY EVER PAY THEM? MAYBE PAY THE ORIGINAL DEBTOR AND GET WRITTEN PROOF OF PAYMENT SO THAT YOU COULD SUBMIT THAT TO THE CREDIT BUREAU. DON’T PAY UNLESS YOU GET THAT.

    • I too believe that you should avoid paying a collection bureau. I would send the payments directly to the CREDITOR. No one else. I am not an authority on finances but have read & experienced being sent to a creditor in past years…but I’m older & wiser now. Call the creditor directly & arrange to make pmts. Even if they tell you you’re in collections…make small pmts & send higher amts. if able to. Tell them that. This way you are paying down debt directly to the creditor. I myself am doing such a thing for Co-payment to a hospital. I don’t want to use any credit cards, I have enough available. I just find it easier to pay directly than to pay interest. Hope this helps.

  • Credit one and its daily interest was a turn off for me. And they tell you that you have a certain credit limit and they deduct before you get the card. So my beginning 300.00 limit on the card went immediately to 225.00 because they took an annual fee. I cut it up and sent it back. My score has gone up from very low 5s to mid 6s so I think my next card will be secured. My Capital One Mastercard is fine for now.

  • I live in California where the statute of limitations is four years. Last time I paid on a credit card was four years and two months ago. Does that mean the statute of limitations has run out on these cards? Is there another starting point for the statute of limitations?

  • I received my credit card two months ago, with my poor credit I received a visa with a 20,000.00 credit limit with no fees or deposits required. I obtained a cash advance of 10,000.00 and went to the casino in Tampa and with the cash advance, I won $5000,000.00. I paid the credit card off. All has changed for the good.

  • Two derogatory items were removed from my reports, I was issued a new credit card and I transferred a balance over for 0% interest. My insurance company sent me notice my premium was reduced for the next term, usually it goes up every year but never down. Moving my credit score into a higher score card has added benefits just like this article indicates.

  • This article reads like an advertisement – I kept waiting for the book pitch.

    Do your homework BEFORE you start talking to salesmen. To them, you are nothing but a dollar sign to be harvested.

    All you need:
    1) Arrange your financing BEFORE you go looking
    2) Car FAX
    3) Unless you are a competent mechanic, pay for one to check it out for you.

    Fail to do any one of the above three and you have no one to blame but yourself.

  • A good idea is to rent the car you’re thinking of buying. Go to your nearest Hertz and rent the car for the weekend. You’ll get a good idea of the workings, seat comfort, etc.

  • If your smart STAY AWAY FROM THE DEALERS ON RT22 IN NJ,you will be glad you did. They are the biggest bunch of thief and don’t give a hout about what they sell you,even if you can’t afford it. NEVER,NEVER,NEVER give any salesperson your Drivers Luc. Or Credit Card to go to the finance manager to check ,to check what,they now have control over you .you won’t leave without the item(s) they will get lost so you will sign any contract they put in front if you after a hour or so wIte.

  • When does statute of limitations begin? The last time credit card was used or when origonal creditor wrote off the account?

    • I had a car repossessed in 2014. I made arrangements to pay back some. Then my husband died in 2017. I recently got a letter demanding the amount I owe. I am a widow and a Senior citizen. I have nothing, no property,nothing. Can they come after me after this long?

  • Consumers seldom benefit from misleading sites that collect all your information then sell it to multiple other companies who will bother you for a long time to come. The dishonest nature of an info collector/seller is a bad way to attempt to begin any business relationship.

  • MYTH #5: Have to disagree, John.
    I was a credit and collections manager for years, for a very large CA. If people want to move on with their lives, let them do so with their money in their pocket, where it belongs. Just because a debtor has made a mistake, it doesn’t mean making another one by paying greedy and predatory collection agencies. 25 years in the business.

  • Hello All,

    I have been with the Credit Solution Program since 2012. I must say I am quite honoured to be able to have ” doors ” open to me that were unattainable in the past.
    I read all the information Mike sends my way, through The Credit Solution Program and he is a genius !
    The tools he enables you to use at your convenience, and time frame do work. You must put forth the effort to he,p yourself as well.
    Listen to his wisdom of Credit, Banks, Mortgages, and especially your Credit Report. These subjects are his maven. He has proven, time and time again, to me anyway, that if you follow his instructions, his advice or his ” storues” ( which are fabulous examples) you will be in a great position to raise your Credit Score.

    I’ve been with the Credit Solution Program since 2012, as I mentioned, and I still find his advice valuable, interesting, and most of true.
    My chapeau is off to all of you associated with the Credit Solution Program. 🙂
    Thank you for keeping me abreast of the” solutions”, that various questions come across my desk. I am a life member. The Credit Solution Program teaches me something new with every e-mail I receive.
    Listen and follow the instructions on how to increase your Credit score:)

  • Being one of the 43 million borrowers who paid off his $40,000 student loan, in two years, makes you kind of special, doesn’t it?

  • Credit One’s security stinks. I also have 2 cards with them and have been hacked at least 2 times and they have to cancel the card and reissue. I have never been late etc. and have had problems with them since day one. The problems are with the visa card not mastercard. They do up my credit limit but I always have to pay them to do that. It was $14.95 at first now they are up to $19.95. I have started saying no to this.

  • One thing I didn’t see covered was the fact that having a perfect record doesn’t mean lower premiums. Insurance co. see people with a perfect record as an accident waiting to happen. This was told to me by a State Farm agent.

  • I have paid loan for Firstcitizen s bank
    But shows up my credit report change off un paid
    Called the bank couple times they don’t even talk to me
    I have all paper works
    Shoul I go to court or what’s the best option
    It’s damaging my business terribly

    • File a written complaint with all three credit credit bureaus along with copies of of your documentations. Also in the future you should make removing the negative it a condition of paying off the debt.

  • I really liked your tip to question anything that may seem off or extra in your medical bills, because sometimes mistakes are made and you may be charged a bit extra. My son has been in the hospital since last Monday, and I am trying to sort out the medical bills. I will be sure to question anything that looks “off.”

  • The article Clearly states the THREE cards! Please Read Thoroughly people.

    1. Best Overall Credit Card: Capital One Secured MasterCard

    2. Best Credit Card for Rewards: Discover it Secured Credit Card

    3. Best Credit Card with No Credit Check: OpenSky Secured Visa Credit Card

  • I have been carrying balances for years. I am now 72 years old. I have paid my minimum due on time which paid my interest for most. I had a high interest loan that I took out 6 years ago and paid it off. Took out another one with the same company. I felt I gave them more than enough money in interests paying off the old and new loan. 3 months ago I ran into financial stress. Paycheck to paycheck. I stopped paying my credit cards and the loan. A so called attorney sent a letter. The loan is 3000 the interest is 3000.

  • I agree with Dr. Breeder. I agree. Credit should be based on how you pays your bills period!! All of these other variables are impossible to keep up with and most people don’t even know about them. Scoring credit needs to be simplified because the current system isn’t fair. I pay all of my bills on time but my friend who filed bankruptcy has a higher credit score than me because of credit card balances. Go figure!!

  • Credit shot up 32 pts just for being added as an authorized user on an established card higher limit card and it has 0 Utilization at the moment. It works!

  • I’ve been following your credit advice for several years. My spouse and I have been able to progress from a very poor 480 to now consistently grounded at 802. You have a few recommendation on how to get to 850 Club. We are moving I that direction Thank you for this live changing program.

  • The term “authorized user” is nebulous. I don’t know where you got your information, but many retail stores will not just simply add someone to an account. The account holder *may* pay for someone else’s purchase, but that’s about it.

  • Recently two of credit bureau were sued for lying to customers and that should give you insight about damages this has done to a lot of us.Before i came across freedom_hacking [at]hot mail .com ,my recent survey shows that men with credit score challenges are more than women.
    My ex wife till the divorce had her score too good before she took off,and since then i have do away with late payments but recently i got a letter from collection that im being garnished for her debt and the decree states she is solely responsible for that bill which made me put her on call and during the conversation i got to know she has been bankrupt, $9000 repo which will be settled by me.
    i am with a mortgage of $970 that has been late,went into collections which has impact on my score,all this are set backs for a good credit achievement
    i am indebted to Freedom who came to our rescue by shooting up my score,all payments paid,repo removed in a matter of days.
    it can only get worst if you allow it,no one will be liable to your ignorance.whatever way or method used is not necessary but the result achieved.

  • Have you ever read the reviews on InboxDollars and Leapforce? They have acquired so many negs that one should carefully read them before applying. Maybe your readers would be better off trying their hands at blogging, as you do.

  • How far in advanced should you send the request of production?
    I am being sued for a car that was repoed. When I looked at the contract I signed with the bank for the auto loan, instead of writing 14,850 they wrote 1485.00 so technically it looks like I should have only paid that. What do you suggest on doing after they produce the correct documents but still trying to fight that the contact is invalid??

  • We just bought our first car about a year ago. We had no idea what we were doing. We had just had a bankruptcy finalized about 6 months before we we bought this car. Well, they socked it to us alright. Whrn the contract was signed we agreed to pay about 17-19 G. We are still in contract with this car worth 10G ( I found out a couple months ago). Our payments are too high, out interest rates too high and we are beihind at least 1 car payment. We’ve had two reports of “over 30 days late” on our credit report. What is the safest way out of this. I’m so frustrated. Ty for any advice you can give, and if you can tell us what we did wrong.

  • I’m a car guy and I have to say that I’m sorry, but your article just scares people. You obviously have very little social skills and just to let you know, Consumer Reports and Edmonds are the pessimists periodicals. Do you think for one minute that they allow you to haggle over the ad that you want to place in their magazine or that their writers work for minimum wage. I think not. My suggestion is wait until the end of the model year and you will get the best deal in the world. And as for extended service plans (warranties), 2000 is not very much to upgrade to a 100k plan.

    Beth the best thing you could do is to get some friends and get out once in awhile and put down the pessimists friend magazines… just sayin

  • Man, these credit bureaus don’t give you a break, do they! They couldn’t care less if you have bad credit in the past. Two things really bother me. One is when a collection company sells your debt to another collection company, all the dates are moved up so it so recent even if it is over 7 years old. I had payday loans and I always thought that they would not do a credit check and just rely on your bank account. That is why it is called pay-day loans. But, to my dismay, these pay-day loans do check your credit and that does not look good on the books. It is even worse than regular collections. How do you rid of all that stuff?

  • MDavis

    You can also save money on your water and electric bills if you are run the tap to get the temp of the water you want. Electric water heaters go on as soon as you open any tap.Have a 2-qt. water pitcher handy and put it under the faucet. Open the tap and put one hand on the faucet pipe. Run the water until it’s the desired temperature, then fill the tub, dishpan, or whatever until you have the amount you desire. Turn off the water. Put your pitcher on a counter to be used for drinking, cooking, watering plants, that extra boost you need to flush once in a while, etc. If you have city water, this will probably also save you some change on your water bill, as all that water won’t be going down the drain and draining your pocketbook. You’d be amazed at how that adds up, too.
    I have saved about $30 per month this way. I wash dishes by hand- If you are rinsing your dishes before putting them in the dishwasher, you might consider an experiment to see how much you are wasting during the pre-washing rinse. (Use a dishpan or bucket to measure). This has the potential to save you even more money. Perhaps combined, these two tricks could save you up to $60/month- which is $720 a year.

    Regarding the electric companies, some states allow the customer to choose the company supplying their power. New Jersey is one of those. We have competition, but the rates are not always that far apart.

  • Our loan was sold to PNC and I did not find out until after the passing of my husband. He took care of the finances so I found out it’s in his name only. I was informed by PNC when they purchased the loan he was on it alone. We are both on the deed from the time we purchased the house, joint tenants. I never signed a quit claim deed to relinquish me portion of the community property. Now what? They put the loan in the estate of my husband. Do I have legal right here?

  • The real problem is not low drainage appliances like digital clocks and light bulbs, but the unregulated power companies that get permission to regularly raise rates. We need more competition, period. BTW, you forgot to mention fans–they use more energy than leds.

  • How many points do you lose if you make a payoff agreement vs. paying off the whole balance due on collection accounts?

  • Tia just wondering how your mortgage loan turned out. Did you ever get it straight?? It’s against the law to change from fix to variable. I hope you filed a complaint. I just got sent to another servicer and i’m a bit concerned because i am on a fix mortgage as well. I hope and pray that the new servicer is on the up and up.

  • Until Government reigns in the massive and pervasive up charging in the medical industry it will be unlikely we shall see an upturn in personal credit scoring.

    Our family feels we will not be held hostage by these savagely greedy medical entities. With little left to battle, this industry our only real tool is non-payment of their unwarranted and unearned charges.

    If we are fortunate enough to reach agreements with these people payments will only be made once we receive written understandings to remove all negative information from our credit bureau files. Without this, we will not pay them a cent.

  • This article identifies a state where economic conditions are booming and another region where financial conditions hinder the repayment of debt. I live in a community with little education and a greedy government. I can see people who live beyond their means and use credit to “Get By” whom lack the understanding of why Payday Loans drive people deeper into debt and the bank pushes services for their financial gain. The region you live in also affects insurance rates, so why does anyone believe credit score models are any different?

  • I use my credit card for almost all purchases, but I make payments on it generally once a week (*not* once a month), so I don’t have a huge bill at the end of the month, at it comes close to simulating using a debit card, but with the protection of a credit card. I also have set up all the bills I can to be paid automatically online, about a week before they are due. My credit score seems to like these! 🙂

    • your on a right path of paying your bills. and the best way that people don’t realize that works the best to improve credit works everytime counts 75% of credit improvement

    • I think this is the one thing I’m not doing, I have a credit card, but use it for only emergencies and usually replace the cash asap. For fear that I’ll get behind again, even though the stimulator tool shows me what monthly payments will do for my score over time. But I will certainly try and be patient. Thanks for the tip!

  • This is good stuff. It’s about time someon expose these predators. I have never used hm but I have seen people lives ruined by them and payday loan

  • Good evening.This is Dennis Williams sr.I am working with a company Called Lexington Law to have them help me to remove negative items off my credit report.I started out with 90 negative on my credit.But they have gotten off 80 negative items off leaving only 10 left.But the last 10 are taking so long to get removed.I have a late payment of a 120 days late payment that’s hurting my credit.My credit score is 593. But the 120 late on my credit is from the creditor closing my account .So when I tried to make a payment The would not accept payment .So for the last 3 months that’s why my payment was late.I called and explained to them why my payment was late.But they would only start me off new with a 0% interest rate and put me on a hardship program paying $32.00 a month.But would not remove the 120 day late off my account .What do I do? Please help me if you can.

  • There are times when people need to buy insurance, open bank accounts, brokerage accounts, etc., and they will be asked to give up all information relating to their identity, including their SSNs. Federal law. So, let’s use a little personal discretion here and stop acting like alarmists.

  • The more I read the more convinced I become that every American needs your program. You have done a masterful job of explaining how credit works and how to use credit instead of credit using you! Well done ?

  • I have three credit cards which were charged cash advances over the limit due to payments which i was promised and all were returned. What can i do about this? I feel like i was scammed out of the money and now have bad credit hits. Previous to this my credit was nearly perfect. Any advice…

  • It did catch my attention when you said that banks check the borrower’s credit history before approving their bank loans application. My sister and I are interested in applying for a bank loan, and we’re confident that we have a good credit score. To make sure, we’ll be sure to get the report of our credit information to ensure that there won’t be discrepancies on it. Thanks!

  • I have the same question as Jodi Grzeczka. My bank card is an ATM Debit Master Card. The one time I had a problem, my bank covered everything, issued a new card and wiped out all of the NSF charges caused by the fraud. But, does the fact that my ATM card is also a Master Card offer me the same protection as using my Capitol One card?

  • Thanks for the information, I am starting all over again coming from and 821 to now a 517 is so hard to rebuild, recovering from surgery. I have so many collection and late payments, I can’t get any type of credit, where do I start?
    Thanks Joann

    • Save some cash/money as soon as possible, try for about $2000.oo or more that you will leave “frozen ” in an account for a while. The more the better but if it is too tight to save more, Do Not Wait ! With the $2,000.oo approach banks in your area for one that
      is willing to issue a “secured ” card to you.
      You will probably run into some “bonehead ” bankers who will tell you they don’t issue secured credit cards because of the “risk”. Two (2) things to do with these banks : 1) ask them to explain the details of their “risk” ; they’ll probably sound nervous or make
      up a sketchy story or just stonewall you 2) Take them off your list of banks you will ever want to do business with (unless they someday come up with a super incentive,
      like a free Corvette for opening a savings account with a $190.oo balance…you don’t need a bank like them ! )
      When you get your new credit card ( one without junk fees ) and you will if you are just a little bit persistant, DO NOT rush out and buy a bunch of “stuff ” you don’t really need. Keep your spending to things you need, like food and other “needs” that you are presently paying cash for because you have to. Treat the cash you didn’t spend because you used your new credit card like a valuable treasure (it is) and use it to pay the full “statement balance” on your new credit card the day before it is due by phone or online from another account, other than the one you used to set up the “secured” card account…being secured means the bank holds the money as security in case you do not pay the balances you accumulate. You will qualify for better ,more flexible credit and that will happen sooner than most people think, IF you stick to the plan and
      do not ever make a payment, even one day late. I know people who have received offers for larger credit limits within just a few months of starting a plan like this. You will then be on your way to a much higher credit score,.but you must keep up the good work and never let your guard down. I personally know a good friend who went from a
      “score” in the 400s to over 760 in less than 2 years ; just keep on keep’n on !

      ps feel free and welcome to send me an email about your experience following this
      plan or anything else related.

      Also, although I didn’t use the “Credit Solutions Program ” myself ( I already had
      long term experience in the “credit field’ ) I can tell you from my reading about it on Mike Roberts emails and website , I would highly recommend it to anyone who is experiencing any of the bad effects of a not so good to a bad credit score and is confused and or mystified about the why’s and what to do’s. I have met people who have suffered the bad effects of bad credit from marriage to retirement, never having experienced the benefits of a desirable credit score during all those years…Very Sad !

  • Paying off debts makes sense only if you need to purchase a home or auto. Lenders will want all open collections paid up before approving you for a loan. I was a credit and collections manager for more than 25 years and never saw a credit score go up simply because a debtor paid off collection accounts. Keep the money in your pocket where it belongs, live with your mistake, and pay cash. Your family will need that money.

  • My new mortgage company has increased my payments in every way, even though I have a fixed rate for 390 months. My original payment was only $511 a month,but in just 6 months they have raised it to $960 a month. And now their saying my escrow is (1,700) in the negative. I have done the math and gone over every document and state I have gotten since I bought my house and have found multiple mistakes in their numbers. I know there wrong, and I have proof, from their own statements. But they still are not willing to listen. I’m at at loss and out money. I feel that they are intentionally trying to make me loose my house.
    Now they’ve put a mark on my credit when i was late (for the first time ) by 12 days. They are intensonally not filling on the day they accept my payment then charging me for it, plus they charge me just to pay my mortgage now. I’m at a loss I don’t have the money to fight but I do have the paper work and the harassment statements they’ve sent saying I’m in mitigation. I am currently up to date and paying what they want. It’s only a matter of time before my two boys and I lose our home to these thieves. I’m not quitter by all means just ask my doctors. I’ve beat cancer broken my back three times and still went to work 50 to 60 hours a week so my boys grow up better than I did. Not asking for anything just doing some venting but if anybody has any advice for me I would be appreciated. Ps.not much of a writer

    Always thought if I lived right,raised my boys right,everything would be right,boy was I wrong.

    Sincerely not giving up Ronny G.
    Venus tx.

  • Great job! Rent is throwing away money. You guys were smart to start your investment early. I wish I was as smart in your age group.

  • What kind of credit score do you need to assure being able to replace your closed cards ?? !
    Also it seems the opening and c would hurt your credit score ?

  • It’s real simple: It all has to do with cash flow. If you have the money to cover the anticipated bills each month, then do it; less to think about. I don’t like companies that charge the payor to use a credit card–it’s like being penalized for doing a good deed (saving them from having to bill). The other issue is trying to live beyond one’s means. If you can’t truly afford to buy with cash, make sure you’re gonna keep the object of interest long enough to pay it off without going under. And that goes for refis as well. There’s a whole new crew of homeowners who don’t recall the housing collapse in 2008.

  • Incredible, numerous superb strategies to earn extra revenue. This might give us strategies, tips, and more thoughts. Internet profit chances are a smart way to earn income on the web. I am going to try to embed a part of your guidelines in my lifestyle. I seriously love this data!

  • Regarding the closing of a card, I have had the Credit One card for over 5 years. Of course as many others, I have been paying the $8.25 fee for fear of dinging credit. This card has had a zero balance except for these horrific broken down annual fees, for a while now. I have read frightening reviews of others trying to close account, with no success. I am ceasing all activity regarding this card, (except for these fees I continue to receive), although at a loss as to closing it.

  • Great points, another thing I now look at is the ability to pay any additional amount towards the principal (in the easiest possible manner). Some lenders have a program to break your mortgage payment in half, so you pay half of your mortgage biweekly – this can shave years off of your loan. The one disadvantage is that that normally means it MUST be an automated payment. My lender sold our mortgage to another provider who is testing the biweekly payments out but doesn’t have the program in place yet. Unfortunately, they only allow you to make extra payments online, but nothing is applied to the mortgage until you call in and tell them to apply it to the principal – any unapplied funds.

    If you can swing making at least ONE extra mortgage payment per year it helps to shave off years as well. Don’t wait till the end of the year, just make an extra $100/per month payment if you can swing it (or whatever monthly adds up to one whole payment by the end of the year)!

  • A Service contract is worth its weight in gold if you purchase a used Chrysler, Ford, Chevrolet etc. service contract on your used Chrysler Ford or Chevrolet that you purchased from the same name new car dealer. I have found from personal experience that some “non factory aftermarket” warranties are headaches. They have many ways to “fine print” disqualify your claim.

  • Eric,
    Thank you! thank you! thank you! I did my research, followed your advise and just walked out of the court victorious and owing nothing. My heart was going to beat out of my chest. I was approached by the lawyer representing the lawers who were representing the collection agency before the case. He asked if I wanted to settle, I replied, “no”. We went into court and I answered truthfully that the credit card was mine and I had received the montly statements. I thought for sure I was going to loose. The judge asked the Plaintiff to produce documentation of the sale from the credit card to the collection agency. The documentation was insufficient. The lawyer admitted that it was a bulk sale. The judge ruled in my favor.

    Eric, you’re a hero!

  • My question deals with a bankruptcy. Three of the banks continue to report 30-90 day past due payments even though the bankruptcy was discharged over two years ago and they have zeroed my balance. Those late payments still show up even though they are no longer being used. Is that fair?

  • Your articles are always so insightful and to the point. My wife and I have been trying to manage debt our whole lives. In other words, we have been living beyond our means for years. However, our house mortgage will be paid off in the next 3 years, we are both still working but looking forward to retirement. I’m not endorsing that it’s okay to have credit card debt but if you have it, have a plan to pay it off.

  • Excellent topic. Shame and debt. I do not see much written on the power of shame to inhibit progress. Thanks for your thoughts.

  • Do not talk to debt collectors. They are all professional liars. Do all debt collection correspondence in writing. It annoys them because it’s more work and also you have a trail. Also, keep a sports air horn next to the phone to blast calls that are not yours, or calls you have stated should not continue. I add all of our phones to the “no call list” about once a year and it’s a joke. Means nothing. One blast from the air horn right in the phone and NO one calls me offering “free vacations” any longer.

  • If you can’t live in a home without having to cut corners that way, you probably should have waited and just moved to a higher class rental community. Homeowners typically wind up borrowing against their line of equity, or refinancing later, either of which still leaves them out of the loop of true home ownership.

  • One important issue that no one has brought up yet is checking whether the carrier’s customer service operations are U.S. or Canada based. I changed from Verizon to Sprint a year ago only to find out that almost all of its customer service operation is based in the Philippines. About half of the customer service reps don’t speak understandable English (emPHAsis on the wrong syLLAable and limited vocabulary usually) and don’t understand American English very well either, making communication difficult, lengthy and tedious. If you ask for a supervisor you are likely to face the same problem. I am getting rid of Sprint mainly for this reason. Saving some bucks by going to a second tier carrier is attractive but not if customer service is based in a location where the reps are likely to be difficult to communicate with.

  • Very interesting no feel if you are a. Nonwhite applicant credit accepted has been a problem trying yo are hain my verify score zzYhsk I will try it and let you know si have been approved. Thanks.

  • You mention it is easier to get credit cards from the retailer who offers them. If you have a poor credit rating, the chances are nil to a possibility of having the merchant will approve it. I gather the merchant will still check your credit as they don’t want people with poor credit. Most always, these stores will have it either as a Mastercard or VISA. Very rarely will you find a store having their own credit as in the past. I remember in earlier times, stores like Sears, Buffums, Mongomery Wards, May Co. and the like started out with their own credit. I bet it is a rarity to get cards like that now, them carrying their own credit.

  • in addition to looking for the best offers, you have to be careful of the anti-churning rules that each bank uses. i use bonuspit.com to keep track of all my credit card and they apply the bank rules automatically so i know which bank i can open a credit card with without violating those rules.

  • How about percentage of revolving credit used? My limits are dismally low, a joke, as I have credit cards for repairing credit. Don’t use them and you get dinged, use them too much, get dinged. Max them out and pay off in full, get dinged. No matter what you do you get dinged. My score just dropped 59 pts for using too much revolving credit, they make sure to report your balance before you pay. Every time you adapt, they adapt just to make sure they can get you for something negative. They want to keep you down so they can keep you paying high interest. I have a credit one card that is especially bad. I pay all but a few dollars every month but they still charge me tons of interest because they charge it daily; I wasn’t aware of this until a day ago….also, I was a few days late paying (a complete accident, I somehow paid 1 card twice within 3 days, unintentionally), and once I realized the mistake, they had already reported it. I immediately paid it. So now my credit report shows paid on time, but they didn’t update the balance, so now it looks like I’m irresponsible and don’t pay my bills. It’s rigged. It’s designed to keep people like me paying high interest for as long as possible. 1 4 day mistake undid 6 months of progress. When they finally update the balance to reflect reality, they’ll give 10 pts or so….. maybe

  • Well at least you offer the concepts of being generous with time and talents. Unfortunately most churches are only interested in cash. Tithing is an Old Covenant command and not for the Church. Give what you can. No pressure. No curse for not giving.

  • If your comment is “awaiting moderation” it means they are getting ready to strip it from the website as being bad for business. Come back in a week, and you’ll see.
    The whole system from FICO to Credit Repair is designed to keep you ignorant, in debt, and paying fees and interest until your family goes into debt to bury you.
    Remember, figures don’t lie, but liars figure, It’s a huge industry and takes brains and good judgement to avoid. Good Luck.

    • Hi Phil,
      All comments are now being moderated to prevent spam, as we have been inundated with it lately. Comments will be approved within 24 hours during the business week.

      We appreciate your understanding and patience, and thanks as always for your thoughtful insight into our articles!

      • You are simply WRONG good sir…i paid my cc balances down to ZERO and within one week my ficos dropped from EXCELLENT/VERY GOOD/ GOOD ..down to POOR ! I called each bureau and they ALL SAID yes sir thats the way it works…gor instance in order fot me to rrgain my TRANSUNION 777 i need to be at least $5000.00 in debt..a 25% of my debts…Equifax 18% …EXPERIAN 9% !!!!

  • If you use your “rights” under Free Annual credit Report” or whatever the real law is called, you will get what the credit agencies call a “summery” about 3 pages long. This is the minimum they can do under the law because they hate that law, and can avoid any attempt at enforcement by providing it. If you sign up for one of the reporting agencies or FICO’s “good deal” programs for $45.00 or more a year, they will send you a detailed 35 page report of your entire credit history and offer you lost of other “opportunities” to raise your score. On the real report you will likely find some errors you can try to fix, and will probably be able to jump through enough hoops to do so. But your actual FICO and other scores will not go up. The only way to do this is to get into barely manageable debt, make the minimum payments on time and stay there for the rest of your life. Then you are a “good” consumer and probably a fine American. Now the whole system is making money on you. Welcome to the 800 club. It’s easy. And if you fall behind, pay the “credit repair” industry. They will help you get you the “right” level of debt, for an ongoing fee. Pay off your car, credit cards, house and store cards and you sir, are a deadbeat and will be treated accordingly. You’re practically a communist.

  • “Awaiting moderation” is code for “if you do or say anything to reveal how the system works, we will block it”. It’s bad for the credit repair industry.

    • We have been receiving a lot of spam lately so we turned moderation back on 🙂

      As long as people aren’t spamming dangerous links, their comments will be approved. Just like this one.

  • I explained exactly why the above comment is correct, tried to post it and got a message; “Looks like you’ve posted this before” Which is typical of the whole crooked system. Looks like you’ll have to analyze the above statement on your own.
    Be aware though that the comment is correct, but the credit industry doesn’t want you to know why or how to avoid it. So, like usual, you’re on your own,

  • Yep tried the pay off the highest “payment” amount credit card first, minimum on the rest. When the first is paid use the amount that I am not paying anymore and start on the next highest. When done use both payments on the next and so on. Since the payments come out of your budget you don’t notice when you keep on “making” the payment. Since it compounds the next card is paid much quick etc. etc.

  • ALL YOU GUYS ARE LIEING BECUSE I USED LEXINGTON LAW AND THEY ARE GREAT CAUSE I HAD 8 NEGATIVE ITEM AND ALL REMOVED LEXINGTON ROCKS

  • I was taken by two firms. 1) A credit repair firm that said it could raise my “debt income ratio” when I gave them $1,200…..results…”nothing”! 2) A collection firm that said it could get back the $35K spent on home remodeling when contractor failed to return to finish job. I hired an attorney and went to court to get settlement in my favor, yet only 3 payment were made by contractor of which collection agency took 40%. I got several calls from the collection agency stating they could take contractor to court and if he did not show that their legal team would move to have him arrested for failure to appear in court, but wanted an additional $1,750 of which I lost as they have not collected. What can/should I do in these cases.

  • I had this business idea but couldn’t get the needed startup loan due to a low credit score setback by a few late payments and foreclosure. I was looking for a way out online and to my amazement I saw comments in different forums about how they employed the services of ethical hackers to increase their credit score. I was shocked but desperately seeked one, then there was the problem of which hacker of the many referrals to contact. I lost money to the first without a result, the second didn’t reply me anymore after I provided my info. I contacted another Robert Morris who assured me of sure delivery and behold in approx. 2 days. My FICO score went up an amazing 815 and he helped me to remove my late payments. He was a savior sent from God. I felt the need to put this word out there for people whose credit score need a miracle. You can get in touch with him through his mail: Robertmorriscyberservices@gmail.com.

  • There is a simple and foolproof way to stop all online card fraud (except 1 and that’s the fraudsters have a gun to your head)
    And it can be implemented without much effort.

  • Please tell me more about how you think paying to be an authorized user on someone’s credit card is bank fraud. If i am added as an authorized user to someones card there is no fraud happening because I legitimately am an authorized user and as long as FICO accepts this as part of their scoring model then it is fair play. To look at it from another angle you are suggesting that because someone has the privilege of knowing a person or having rich parents with good credit who can add them to their credit card that they deserve a higher credit score.

    • This article is not insinuating people that you know or even family adding you as authorized users. It is referring to companies who charge you a fee to use a “stranger’s” identity. Go back and read the article. That is fraudulent. You do not know the people in any form. And, credit solutions is trying to keep you from spending thousands of dollars and possibly going to jail.

  • I will advise you all to contact Aaron Swartz for your credit repair. My uncle introduced me to the credit specialist called Aaron Swartz that is capable of solving my problem then i get in touch with him. To my surprise, He help me removed 5 collection items on my report and raise my credit from 420 to 830 excellent within 72 hours. He pay off my mortgage loan, I will forever be indebted to him as I wouldn’t be a proud owner of a home and a comfortable lifestyle if not for him. Get in touch with him via aaronswartzcyberservices At Gmail Dot Com

  • I saw someone leave an info under comment section on helping to repair credit. I was interested in knowing more and if the hacker still does this. I had poor credit, a old bankruptcy & problems with getting approved for a apartment due to 2 broken leases from the past which I explained to CREDIT BRAINIAC when I made contact to him. The hacker cleaned my credit records and boost my credit score within just few days of knowing him. Everyone having credit problems should reach him a t creditbrainiac.repair (@ g ma i l . com).

  • I saw someone leave an info under comment section on helping to repair credit. I was interested in knowing more and if the hacker still does this. I had poor credit, a old bankruptcy and problems with getting approved for a apartment due to 2 broken leases from the past which I explained to CREDIT BRAINIAC when I made contact to him. The hacker cleaned my credit records and boost my credit score within just few days of knowing him. Everyone having credit problems should reach him a t creditbrainiac.repair (@ g ma i l . com).

  • I don’t have much to say. Just in case you need help regarding your credit score, I know a specialist that can help, I’m a living witness of his good job because he has helped me before and I was able to acquire my house through his help. You can message me privately on my mail which is GHOSTVIRUS@WORKMAIL.COM, I don’t mind giving you details on how I went about it and direct you to the specialist if necessary. I’m sorry I can’t drop the specialist’s contact here for some reasons including that of security reason.

  • Ok, some weeks ago, I watched a video on YouTube telling us to never pay a collections debt that was old and not to respond to it. Now, she’s telling us not to ignore it. Conflicting info on the same site from two different perspectives. Who should we believe? I always heard that anything over 7 years should be removed and now she is saying to try to settle with them. I think this is very bad advice.

  • I filed for chapter 7 in 2016 and was discharged in 2017. Before receiving my discharge in the mail, I received no fewer than 10 offers for auto loans for a new or used car. I secured 2 new credit cards through companies that have good credit building approaches of offering a low ($700) limit that doubles after 6 months of payments. These cards have no memberships fees. I secured an auto loan for $25,000 through Navy federal Credit Union within a week after bankruptcy discharge. They approved my loan in less than a minute. My credit score was around 600 then and now is over 700 a year later.

  • Hi,

    It surprises me to see the Indigo and Credit One cards listed here – I’ve only see negative reviews about these two cards!

  • America’s court system and the credit system sucks very unfair ….it is like being on a roller coasters …..up’s and down’s
    You are pretty much ..at ..a ..loss no matter what you do….

    • Speaking of Courts, Who if anybody ? Regulates Credit Reporting Agencies and should we not have a right to have a statement of our own explaining why and how some negative information got on our credit reports, Sort of like if you are a seller on Ebay or Amazon and a buyer gives you a bad report for everyone to see, Where you get to explain and in my case ask all prospective buyers to look at my last 450 very satisfied customers in the last year.

      • The Consumer Financial Protection Bureau (CFPB)
        You do have rights under the FCRA. The credit reporting agencies are not following the guidelines when reporting consumers information. That is why the dispute process is available. Until the information is verified, under the law it should not be placed on any credit reports. These agencies ignore the laws.
        Author of Credit Jail How to Break Out.

    • I agree 1,000,000 percent 😀it’s up and down ‘ up and down up and down and it’s apparently what ever u try don’t work and really sad part they don’t in account sometimes u job is lost might have to go and get major surgery so and so on who’s cares if u can’t work or something major happens I u gonna get behind on u bills not everyone but a lot they don’t care

  • America’s court system and the credit system sucks very unfair ….it is like being on a roller coasters …..up’s and down’s
    You are pretty much ..at ..a ..loss no matter what you do….

  • Hello me and my roommate both are disabled and are on Social Security we have been trying to buy a house and neither one of us had credit I’ve been working on mine and the store should be showing soon together we make 2000 a month and wondering if there is a program to help disabled with minimal credit and minimum down payment cuz being on Social Security we live month-to-month is there any kind of programs or help for us Our Hope cuz we don’t make three times the rent. The way we’re saying is if your on Social Security you left out

    • I’m in that situation – on Social Security and disabled. I get $15 for food stamps. I have $1,000 from S.S. Trying to get on my own —- I don’t see any way to be able to get a home. my credit score is 650 from Equifax and 643 from Trans Union. I’m slowly paying off bills on my credit report and I pay bills on time.

  • First Premier is the worst card on this list. They charge fees for everything and it’s really hard to close the account when you are able to get an unsecured card.

  • A creditor can not by law agree to immediately remove your colkections from butmreau once paid .also paying all of your ccs down to zero balance destroys your ficos

  • I saw someone leave an info under comment section on helping to repair credit I was interested in knowing more and if the hacker still does this. I had poor credit, a old bankruptcy and problems with getting approved for a apartment due to 2 two broken leases from the past which I explained to CREDIT BRAI NIAC when I made contact to him. The hacker cleared my bad records and improved my credit score. Everyone having credit issues should reach him a t creditbrainiac.repair (@ g ma i l . com).

    • “Best Experience EVER!!! In a matter of days I had 16 items removed from my report leaving two creditors on three reports! Now to set up my husband for credit brainiac!”

  • I saw someone leave an info under comment section on helping to repair credit I was interested in knowing more and if the hacker still does this. I had poor credit, a old bankruptcy & problems with getting approved for a apartment due to 2 broken leases from the past which I explained to CREDIT BRAI NIAC when I made contact to him. The hacker cleared my bad records and improved my credit score. Everyone having credit issues should reach him a t creditbrainiac.rep air (@ g ma i l . com).

  • Have been battling my credit scores and repair companies for awhile , my lack if credit management ill say affected the choices i made with my credit history, i needed my credit score improved from 580 ,511 and 573 ,i needed my score to be in the 700 plus A colleague told me about (Gary McKinnon) , well have lived all my life in bad credit ,i had nothing to lose ,to my surprise after giving the required information i was informed to my understanding about the process, ALL my late payments, inquires ,collections and public record were completely removed from my credit report and in less than 48hrs ,i watch my score grow to 752,720 and 708.if you’re in this too, you can hit him up on his working email (garymckinnoncyberservice At Gmail Dot Com)

  • I saw someone leave an info under comment section on helping to repair credit I was interested in knowing more and if the hacker still does this. I had bad credit, a old bankruptcy & problems with getting approved for a apartment due to 2 broken leases from the past which I explained to CREDIT BRAINIAC when I made contact to him. The hacker cleared my bad records and improved my credit score at a good cost. Everyone having credit issues should reach him at creditbrainiac (@ gmail . com).

  • Please explain this . oh and the bureaus did confirm that this is wgat they do when you pay down to zero balances. I called. So how can i get into the 800 club across the board ?! It seems impossible .

  • The Best credit card balance for a high credit score is zero…not so. When i paid all of my cc accounts to zero balance .. Within just one week my ficos dropped from ..for example…777 transunion down to 654 and the othet two down from equi very good to fair and exp from good to poor..TRANS says i can get my 777+ back once i am 25000.00 in debt again..i infer the other two will still be a problem as each prefers a certain amount of debt / cc utilization. Paying down my bills was a bad move

  • Creditkarma.com has some new offerings in addition to bank card credit scores from Trans Union and Experian. Now they are also offering free Auto Insurance scores and Tax preparation online. MIGHT BE WORTH CHECKING OUT!

  • Who can deny any of these cards are excellent but there may be better cards on the market for consumers today.

    Consider Bank of America’s Cash Rewards card or Discover Card’s latest offerings BOTH ARE EXCELLENT. Both are well worth checking out and comparing to the cards listed in this article. You may be well surprised at what you will find.

  • Hello, recently found out that a judgment was entered against me 20 years ago in Florida. My mortgage company notified me that they received a subpoena for information on my loan application. I purchased a home last year 2017. After researching I found out that I was sued in 1996 for $6000 for the balance owed on a car that i purchased when I lived in Miami. After moving to NY in 1994, had financial problems and made arrangements for the bank to pick up the car. I did inform them that I had no means to pay them. At that time I was a 24yo student looking for work. Never heard from them nor received any court papers. I called the law firm on the subpoena which also turned out to be a debt collection agency who purchased the debt. They say I now owe $30,000 which includes legal fees and interests. I am trying to get a copy of the summons because I do not recall ever being served. Had I known, I would have addressed this years ago. This has never shown up on my credit report and when I purchased my home nothing showed up. They are threatening to garnish my pay, bank acct, and put a lien on my home. Does anyone’have any suggestions?

    • All debt has a statute of limitations in which they can come after you for the old debt. If it is over 7 years old in most states, they are not allowed to sue you over this debt and after 7 years it cannot show up on your credit report. You need to speak to a lawyer about this, someone is trying to scam you. Also ask the debt collection agency to send you the actual loan papers you signed before you agree to any payment or even agree that it i your debt.

  • I have found that the rules defining credit worthiness need to be standardised. The way I see it is that as long as each financial institute can “make up” their own rules credit scores are going to continue to be arbitrary at best. What it really boils down to is “they who control the money make the rules”. This is certainly obvious when you receive your credit history from the “big 3” that contain the same information and your scores may vary by as much as 100 points. As many people forget, this country is a republic, not a democracy, and republics are run for and by the people with money, lots of money! Or maybe I’m just a “glass half empty” type of person, lol.

  • But..when you pay ALL your cards down to ZERO balances..your ficos get screwed within a week down from for ex. Trans 777 down to 654 SIMPLY FOR PAYING MY CARDS DOWN TO ZERO BALANCE ! Each bureau has its own preferred utilization rates..you have to play the hands ..find out which pulls from who and concetrateon that bureau for that card…IF I GO OUT TODAY AND GET 25% of my total limits combined in debt again ..i will grt my Trans 777 +- back ! In essence YOU GET PUNISHED FOR GETTING OUT OF DEBT

  • Wonderful for a Government home buyer program.

    I know a program that requires NO DOWN PAYMENT, has interest set at one of the lowest rates available and the is NO PMI INSURANCE REQUIRED. This program is available to anyone who can commute for a few meetings to one of their offices around the Nation. It is offered through a group known as the Neighborhood Assistance Corporation of America (NACA).

    To find out more about this BETTER HOME OWNERSHIP PROGRAM you can goto http://WWW.HTTPS//NACA.COM . Note: They also have a program designed to help buyers who want to reduce their monthly payments for any number of reasons.

    • One thing I should add. NACA will require you to submit a lot of paperwork and a family budget. THERE IS NO REQUIREMENT TO HAVE GOOD CREDIT AND DO NOT RELY UPON CREDIT SCORES TO MAKE THE LOAN. This is possible through prior arrangements NACA has with multiple lendors t hat allows them to verify ability to pay without having to submit good credit information to lenders. I know people who have successfully used this program but be ware they require a lot of paperwork and it can take several months before they have everything in order and will submit you to their lenders.

      In this case PATIENCE PAYS OFF if you want to save all the PMI insurance money and not make a down payment. 🙂

      • Lastly do not let the paperwork requirement get to you. You will have to submit much of the same paperwork to conventional lenders anyway. Nonw of it is hard to get or to complete, most of the paper you need can be downloaded to the NACA website or carried into an office. Most of the paper you need will be things like bank statements, income tax, credit accounts, bill payments and etc.

        The only real pain to any of this is setting aside a few hours to collect everything and submit it to NACA. None of this is really hard to and I like to refer to it as SIMPLY ANNOYING.

        This is when it is good to remind yourself that many things in life are SIMPLY ANNOYING. Anyone can find time and patience to complet this process with NACA if you are really wanting to buy a home you could otherwise not qualify to purchase.

  • Hello my name is Senithea. Jones and I am the eldest of eight children I am still desperately trying to purchase the home although my credit isn’t of part, I I would love for it to be however I do pay now for rent a one bedroom of $908 plus all my utilities and it seems to me that I should be able to pay that money towards something that I could I would I wish there was someone that could help me find a house in the Montgomery Illinois area I would love that so much for my grandchildren

  • WHAT IF YOUR HOME BEEN SOLD 5 TIMES WITHOUT A NOTICE. FILE BANKRUPTCY AND YOUR HOUSE WAS INCLUDED WHAT RIGHTS DO YOU HAVE

  • I got taken for a ride by a used car company. I did my home work and googled the car then drove it home. I took it back next day. I found out first hand the car would get me KiLLED! I also found Others had complained to HONDA, and I LOVE HONDA, Who blew them off!! The sales man had hustled me. I stood my ground, and in the end, FORD
    Stood up and did the right think, they gave me every penny back! I now drive a used RAV 4 I bought from Another FORD dealer. I think
    my age may have helped, I would like to believe it was ETHICS!!
    One thing I found during my LONG
    TORTURE NOTHING has changed in the treatment and attitudes by car dealers when it comes to women, if any thing it is WORSE!!
    There is no amount of money that you could give me to get me back at a car dealership, new or used!! I pray this car can be good enough to be my LAST!! The BOTTOM LINE in car sales will ALWAYS BE, ” MAKE THE SALE AT ANY COST!!

  • I would like to thank the author for this article. It hit home in a few areas. Thank you Mike Roberts, for bringing out this article. Thank you for your column. I wish I could afford the program. A fixed income is very difficult as you have most likely heard from many seniors. Again, thanks to both of you.

  • Hi John
    I had business failure back in 2008 due to the price of fuel and lack of freight. I had an expedite business. File bankruptcy chapter 7 in 2010 discharged in March of 2011. Was just getting back on my feet again until Thanksgiving of 2014 I got food poisoning. Did a early morning delivery on Friday the next day made it back to the yard. I had my fiancee drive me to the hospital. Was there Friday and released Monday. The next day I had worst leg cramp and no feeling in my right foot. Went back to the hospital they kept me under observation until after midnight. They sent me by ambulance to another hospital downtown Cincinnati. This is now December 3rd 2014. They operated on leg said it was a blood mass. I was in that hospital for two months. December 3 to February 5th 2015. I was off work the of that year. My bills was over $250,000 which my insurance paid $189,000. Which left me in serious out of pocket debt. Because of the most famous fine line in between crease clause. Above and beyond Customary and reasonable charges. Which is a very large gap. My credit score was in the toilet 419. I hired National Debt Relief to handle a charge card tiring to sue me. Barclay not mention any names. I received a letter from them and their representing Attorney. They were going to pursue a judgement. I faxed all the information to the NDR company. The representative assured me it would all be taken care of. 30 days later I get another letter in the mail stating that the awarded a judgement to the firm out of Cleveland Ohio.
    NDR said I faxed the information to the wrong number.They even charged me an extra $12.50 for their legal team services up beyond the negotiated $254.00 I was already paying. I called the Law firm and they wouldn’t talk to me until I released NDR from the debt process. When I called NDR to fire them they said most of all the
    monies I had paid them went to the legal for their negotiated services. The extra fee was 25% from the original amount in the first. Knowing what I know now I would be
    better off taken the law firm’s first settlement offer.
    Now which leads me to Chapter 2 of my story. Trying to improve my credit score and rating. I employ Lexington Law at $99.00 per month plus introductory fees. Had them about 7 months hoping I could get this judgement off and previous bankruptcy. After paying off the judgement I got the release letter from the law firm and personally took it to court house. Thirty days later it was off my credit report . However still medical collection’s and another bills still outstanding.
    The credit bureaus that’s Chapter 3.
    My score got up to 640 but now it is down to 609 due to some inquiries and close to making out my credit to pay some more bills.Still working on cleaning up my credit it just takes time and good pay record.
    Yes I am in for how the credit bureaus control our lives due to the FICO scores.
    Horrendous needs to be a change.
    Thanks for reading
    Bill n debt.

    • Forgive me if you already are aware of this. But there is also the major factor of utilization ratio (percentage) of credit used of what is available. Be conscious of this, as most assume, it’s ok to use most of it if you have it available to you. Nope! Keep it under 18% if you can. Start small and build accounts. Pay them down. Every 6 months request an increase if you this you’ll get it. Raise your credit lines whenever possible. This will help your score by lowering your ratio. If you need to purchase, keep it under 30% and pay it down quick.

  • I am writing this to thank global view for re-scoring and restoring my credit! and to reach out to those who might have similar problems like i did. email him at firewallbreachexpert’at’gmail’dot’com to fix your credit. Next week I will be closing on a house. I was approved by Bank of America (a bank, I might add, that wouldn’t even let me open a checking account in 2006!) The house is exactly where and what we wanted. Thanks to you, a dream is coming true. My credit scores are now where i want them and my late payments, all erased. I feel brand new.

  • How can you help someone who’s
    Majority of debt is already written off and in collections?

    And what are some solutions to catch up on your HOA Fees when they been set to an Legal Debt Collection Agency, who’ s placed a
    Lien on your Home?

    I have already paid $804.00 towards the Total bill of $1120.00.
    Now there telling me it’s $1120.00,
    Including the attorney fees!
    With this plan I will lose my home!

    I am disabled and struggling to keep this up! I have already sent a letter explaining my situation and emailed & faxed to my Case Manager. My home is only 4 yrs. old, and I was only 3 years behind $600.00 + there Legal Fees!

    So, my request was to pay off my pass due without the Legal Fees. Within two minutes they answered,
    declining my request!

    Can you please send any suggestions to help me keep my Home ?

    Sincerely ,
    Jeanine Thomas

  • Will it effect my daughters score if she puts me on her 30 year old credit card, must protect her score

    just discovered they charge 100.00 per year to add someone.

  • As an irresponsible homeowner who is in a ton of debt and lives pay check to pay check, it was a hard decision. It was so overwhelming knowing my $5k wasn’t really going to make a dent in really any one area, I thought I shouldn’t stress over it. That being said, I booked a Caribbean vacation for my family. I’m hoping a little R&R will clear my mind to do the right thing next year.

  • Is there any reason for a landlord or money lender to even file for a judgment in the future?

    It appears now there is no negative to reneging on a debt. Am I incorrect?

    04.16.18

    • Filing a Judgment will extend the statue of limitations on fines/citations.
      If the agency has not managed to collect outstanding debt, the will renew the judgment to extend the statute of limitations on the debt.

  • Using my credit cards in strip clubs was not a great decision. Those fees! And you get nothing lasting for all that money you’re charging…you’re basically going into debt and throwing money away for nothing other than a very short term few minutes of pleasure that sometimes isn’t even that pleasurable to begin with. If you go to a strip club, and you should rarely go to one, then carry a set amount of cash and don’t spend any more than that! Leave those credit cards at home!

  • Credit One actually HELPED me build my credit. After I got their card, my score rose super fast. So I’m not against them. I’ve never had any issues with them, and they have increased my limit several times. I have a Visa and a Mastercard with them, and no issues whatsoever. Maybe the people who are bad mouthing them or giving them low reviews are the ones who are late on their payments and are being contacted by Credit One or being charged the late fees.

  • Do not close it. It will affect your score. Lenders today are looking for three tradelines for 24 months depending on the loan. Some will look at alternative credit like insurance, phone bill, gym membership , and others. Get a head start before you start looking for a home and be pre-approved to submit with your offer.
    Happy Househunting!

  • if your credit score is poor and you want to increase it ,i was referred to netsolvetechnology AT gmail.com who help me increase my score and he remove negative item from my report,he is a professional in credit repair,i recommend him for those who need credit help ,tell him i refer

  • The first record of a tithe in scripture was when Abram tithed once to the King of Salem, Melchizedek, from the spoils of war (which included captives). Abram returned the rest, minus a small portion for his troops, to the King of Sodom. Some history buffs have noted that this type of tithe was like a tax and was an Arabic custom of the time. There is no record of Abram ever tithing from his own increase before of after this account. There is also no record of anyone else actually tithing until the Israelites, who were under Mosaic Law. (Ref Gen 14)

    The Israelites were commanded to tithe from the food produced in the land of Canaan. They tithed to the Levites, who in turn tithed to the priests. They also tithed to the needy and they tithed for a festival where they ate the tithe.

    Some speak of tithes being money, but there’s nowhere in scripture where God ever commanded a monetary tithe even though scripture from Genesis forward indicates the people traded with money (see Gen 47, Deuteronomy 14, Matthew 17, Matthew 22 for examples). The tithes God commanded were always food (Leviticus 27:30).

    Many err and don’t divide scripture correctly when they reference Malachi. They teach obedience in tithing carries a promise per Malachi 3:10. However, one needs to read Mal 1:1 and 2:1 for context. This was written for the Israelites and their priests, who were under Mosaic Law. The blessings of rebuking the devourer and curses in Mal 3:10 were for the Israelites – not the Church as we are not under the law per Gal 5 and other NT scripture. Additionally, Jesus redeemed us from the curse of the law (Gal 3:13), so the curses don’t apply either.

    Many also err when they states the Lord calls US (the Church) to “prove Him,” in Mal 3. Again, this was not written to the Church, it was written to the Israelites who were under the covenant of the law. The Church is under a new covenant are we are free to give as we purpose in our hearts and not of necessity (2Cor 9:7); however, we reap as we sow (2Cor 9:6). And God does promise to care for our needs when we give (2Cor 9:8).

    Another error is think Jesus is speaking to the Church in Matt 23:23. Jesus is actually chastising Pharisees who are under the law. Note also that they were tithing food even though they certainly had money (Matt 17:24-27 and 22:15-22).

    In short, although we’re under no command to give any specific percentage of our income, scripture does encourage us to be generous and to take care of the needy (Matt 25:33-46). Further, God should always be first in our hearts and next to that we should love our fellow man (Matthew 22:36-40 and Galatians 5:14). If we place money before God, we are serving money and we cannot serve two masters (Matthew 6:24).

  • I closed 2 credit cards that have not been used for a couple year. Last year I got a charge for the annual fee of $29.00 for each one adn when I got an email and opened it to tell me about the charge it was over 30 days and I could not get it reversed. This year I caught it in time and closed both accounts before the 30 days was up. I figured if I was not using those cards and there was a yearly fee I may as well close them. I could not negotiate removal of the fee to keep the cards. I hope this does not affect my score in any way.

  • I had a score of 500 Within 1 year I have a score of 750 But there keeps popping up a medical bill which gets disputed and they change there name and pop up again and down goes my score I don’t know how to hande this

  • Is refinancing a mortgage a bad idea if the present mortgage account is the oldest account on my credit history…? The other oldest account is not even 2 years.. What do you suggest i do in this matter?

  • The biggest mistake I’ve ever made besides loaning money to friends is I bought a timeshare many years ago. I probably paid on it for five years and what a waste of money that was. It was in Mexico and I never heard from them since. Jeanne in California

  • The biggest mistake I’ve ever made besides loaning money to friends is I bought a timeshare many years ago. I probably paid on it for five years and what a waste of money that was. It was in Mexico and I never heard from them since. Jeanne, California

  • Some of the info is good but usually driving it back to the dealer or leaving it in a lenders lot will still need a repo company to pick it up. Call your lender to see how a vol surrender is processed prior to making this decision.

  • Wells Fargo sold my loan knowing that the deed said it belonged to someone. A public adjuster sold the home in a foreclosure sale. The property tax department has name the public adjuster as the owner but they continue to escrow my loan. How can you sale a loan with a dispute of ownership?

  • “As a former banker,” Eric regrettably did not express what kind of DTI ratio banks are looking for when granting various types of loans. Obviously, income plays as large a part in loan granting, as does credit history.

  • I have a BofA credit card and have a 786/803 credit score and they keep jacking up my interest rate to 17.99%.
    I want a really low interest rate. I would really dig it if i get a lower rate. I called and asked about it and they told me that cannot do anything about it. Then they offered a higher amount of credit. I asked them to take $4000.00 off my credit and give me 10% interest…hehe. They refused that thought.

  • I’m in such a turmoil right now because of my own spending behavior. Credit cards, and late payments. I was going to ask my mom to co-sign for a $5K loan to get everything caught up, but I hate rejection. So I’m going to have to figure out a way to catch up everything, step by step. With God’s help, I’m going to make it right. I may lose a credit card or two, but I must make it right and build my score back up.

  • I recently applied for a $8k personal loan. My credit scores decreased from “excellent to good”. I received a good rate & term(3yrs). I don’t understand why. I used the funds borrowed to payoff credit cards with higher balances. Granted, I expected them to go down little but NOT as far as they did. Just goes to show that these financial pitfalls don’t always give you the end result that you have achieved.

  • I do like that your article suggests some places where the readers might be able to get a loan. After all, it can be pretty difficult to secure a proper loan to use for buying a car, especially if you have bad credit. However, many of the services that the article lists are usually willing to work with anyone to ensure that they get the car loan that they need.

  • In the past 15 years, I have been the excellent, best customer, they know me by hearth, I know the the 3 or more business managers of three “Pay Day ADVANCE” Stores, I HAVE KNOWN TO HAVE CALL THEM “STORE A” , “STORE B “, “STORE C”,
    THEY have help me with paying bills!!!. Better than USA Banks, :Thieves, nice in front, but cruel with their business practices, They don,t think that a time limit is expect on credit reports. To BE correct, at times mistakes are notice, but it is my
    time to fix the problems. not theirs. Keep your favors, I looked for Non USA Banks, and different currency to get over on the US Dollar. I will buy “KIA” cars, foreign merchandises. and say hello to process to those who know that fair is when the everyone should get the same interest rates to get out of debt.
    and the will to get out of debt will not be in my life.

  • My mortgager has my principle balance 10k
    More than it was when I bought the house for, I’ve lived here 20 years.. Wells Fargo,
    Never took equity loan

  • Tell them to send you any documentation with your signature on it showing that the card is yours. If they don’t have any proof they are bound by law to remove it immediately.

    • Can you elaborate on that? I have been dealing with BofA regarding the “signature” proof approach and their written response has been that this was an online application and that is “proof” that the account was made. I have a charge off that I have been challenging for almost a year now.

    • hmm. Here’s how I would write it:
      1. Hide the credit cards. You can’t pay them off fast if you keep using them.
      2. Take a look at the bill. Going ‘paperless’ is no excuse, log in to your account and find the digital copy of the bill. It will tell you how much interest you are paying on that debt and how long it takes to pay off at minimum payments. Those are both very important pieces of information to have and it could be a bit of an eye opener.
      3. Make sure you know the difference between transactions, balance, and interest. Transactions are when you actually use the card and that creates a balance debt. Interest is charged based on that balance. Even when you stop making transactions, the interest changes the balance as well.
      4. The only real way to eliminate debt faster is to pay it faster. That usually requires either having a strong income or significantly low expenses. Since most of us can’t instantly get raises I suggest taking a look at your expenses.
      5A. Do you get more satisfaction from several little successes versus one big success? Paying down the smallest balance card first will motivate you more in that case. You’ll see one card have a zero balance and that small success will inspire you to do it again.
      4B. Would you rather have one big success than lots of little ones? Paying down the card that has the highest interest rate first would be better for you. You are of the mindset that interest is ‘throwing away money’ and paying down the highest interest card will throw away less of it, thus ensuring you will have a bigger success when you reach your goal.
      5. Always pay more than the minimum payment. Minimum payments include interest owed and that majority of it is actually the interest. It takes forever to pay off your balance because most of the money never goes to the balance owed, it mostly goes to interest owed. I would strongly suggest paying at least the minimum plus whatever interest has been charged the previous month. That way some of the money is for sure going to the balance owed and paying the debt off.
      5. Always make at least the minimum payments on each card on time! Most cards carry a ‘default APR’ which is fancy talk for “if you pay late, we increase the interest significantly.” It is extremely difficult to get out of the jam it creates when the interest owed doubles overnight.
      6. Most utility bills will let you pay them late without a ding to your credit score. (at least with today’s scoring models. Credit scores do not include utilities but there is talk of changing this.) This means that if you absolutely must juggle money around to pay your bills, juggle the utility money toward the minimum payment on your card. You’ll owe a late fee on the utility bill so don’t do it if you don’t absolutely have to juggle bills.
      7. Are you in dire straits? When life gives you lemons you are supposed to make lemonade but sometimes even that is too expensive. Plasma donations are usually good for 20 dollars and you can do it 2 times a week. 40 dollars should cover a minimum payment or maybe just buy gas for your new uber/lyft/doordash job. The pay isn’t the greatest but the neat part is that your earnings can be be cashed out in less than 24 hours. Some temp agencies pay you immediately after you complete the day’s work. That’s a real big help if you are trying to pay bills due within days. Yes it’s all grunt work, it’s all not fun. Take the 60-100 dollars or so per day, get yourself out of dire straits, maybe then look for a weekly or monthly pay job that pays better and then focus on fun.

      For the record, yes I was in dire straits. I did Uber Eats and I stayed taking deliveries every day until I earned enough money to pay the bill that was due the next day. Sometimes it took all day (24 hours) to earn that money but I cashed out my earnings and paid my bills on time. It took two weeks before I caught up to where I could pay the bills with money that was not last minute. It can happen this way. I then focused on getting a better job and now that I have it, I currently pay 100 dollars plus interest for each of my 4 cards. I estimate I will be debt free on May 1st. Yes it can be done.

    • Jessica,
      I’ll pass this along to our writers! Look for an article on how to eliminate debt faster in the coming weeks.

      -Sam

  • I added my granddaughter to a couple of my credit cards as an authorized user while she was in college. She has now graduated & I want to remove her as an authorized user. Will removing her affect her credit and/or credit score? Thank you so much!

  • We do save big at Costco for a family of four. I have one issue and it is consistent with every Costco store nationwide, that is the terrible tasting carbonated sugar water down drinks. they are so diluted, I stopped drinking them. I wish they would taste the difference, if they need a larger profit, then charge an extra 10 cents to make the drinks taste like real soft drink like your Arby’s, Carls Jr, etc.

  • I am a family of one and I love Costco. Even shopping for one I save money. 5# bags of chocolate chips, nuts and other baking items during my baking season. Not to say the money I save buying my gas there, even though I have to drive 40 mins to get there, it is right around the corner from the VA Hospital, so it’s on my way and I fill up and shop. I like the larger quantities of chicken, fresh salmon and tilapia, which I freeze in servings. This saves me lots of time shopping and saves me money. I stagger the months so I only have to but one kind of meat per month, but I always have a variety in my freezer.
    So saying that it isn’t a good deal for a single person or a couple is wrong. If you plan, you can save a lot.

  • You completely missed one of the biggest reasons to join Costco. The gas prices. I have a Volkswagen with a 22 gallon tank that takes premium gas. I save anywhere from .80 cents to $1 per gallon vs my local gas station. Or roughly $20 on every fill up in my car. Filling my tank 3 times pays for my membership. For those who don’t need premium, the savings is still about the same.

    • No ending is correct. If you shop at Costco on a regular basis and take advantage of the other savings they offer, you can save big time. I received over $ 100.00 via Costco and by using the Costco visa I recently got back nearly another $ 400.00 from Citibank.

  • Very good article asking a very good question. Basically, I see it as the total cost of your annual spending at Costco would need to be greater than the annual membership fee in order for the membership fee to be justified, unless there are other indicators that makes one feel validated other than the savings.
    Thanks for sharing

  • Yes….could cut two ways; only if you let it and you lose control. Should never, ever attempt to bye anthing you can’t pay off in full or have at least controllable affordable monthly payments…
    Thanks….

  • What I find mind-boggling is how anybody this clueless can purport to represent oneself as a “financial expert.” The mind reels…

  • Hello I’m used before Lexington for couples months and nothing happen so you guys know other company I can used and not wasting my money than you

  • This is all you pros could come up with for “side jobs”. For all the wonderful credit information you provide, this is a joke. Uber? Would you consider putting some work into this subject and trying again to provide much better information. This could be a very important subject to many thousands of people.

  • Thank you for these info. Starting today I will work on these steps. I’m a first time buyer and Im planning to purchase a home this year.

  • Are you really advocating on-line pay day loans as a solution? Look at the interest. It’s over 800% and just sets people up for failure and bankruptcy. Do you research before advocating this again, please.

  • I was sold a car with MAJOR preexisting problems that were not disclosed. the engine light came on 24 hours after the initial lease started, they said they would fix it Saturday all they did was turn the light off. light came back on hours after leaving the lot again. i got the car looked at officially by a professional mechanic now that i know what is wrong the dealership refuses to fix it, or even let me trade the car for a different one. the cars ecm was switched out to try and hide the fact the car was totaled. i dont know what to do. i cant afford the 400$ a month, due to not being able to work.

  • yes i have a medical bill from a heart attack that the VA was suppose to have paid, but it appears the civil hospital didnt send it to the VA in time, so they arent paying it and its back on me now. They sent it to a collection agency and now they are coming at me for 23000 dollars. I
    I have 2 secure cards and my score went from 450 to 654 on equf, and 670 on exper. and 620 on tu. That one thing brought my score down again to 594, 606,.and 590. Any suggestions?

  • […] credit card or take out a loan in the future, make sure you do it sensibly. There are some healthy credit card habits you can adopt, but if you don’t trust yourself to manage them properly – it’s safer just to cut them […]

    • Hello people,
      I am in the process of repairing my credit. YOU HAVE THE RIGHT TO CHALLENGE EVERYTHING ON YOUR CREDIT REPORTS. It won’t affect your credit, you want to make sure what is on it is what is suppose to be on it. CHALLENGE!!
      Best of luck to you all

  • What’s the point of having a good credit score if the creditor still review your credit report before making a decision? In the process lowering your score. Isn’t the credit score reflective of your risk. Seems like the credit system is stacked to monopolize the borrower at both ends of the spectrum. They need us as much as we need them. Someone kindly enlighten me?

  • thank you for this valuable information. I trying hard to increase my credit score. I paid my house loan off and they put charged off. this decreased my score by 100 pts. this was incorrect it was changed to paid in full/charged off still my score is low because of this mark. what can I do?

  • The statute of limitation clock begins on the date of first delinquency. The exact day you went late. I don’t know why everyone gets this wrong.

  • What if the debt gets resold to a different collection company? Does that start over or is it only when it leaves the ofice of the original creditor?

  • I filed bankruptcy last year and I have four collection accounts that are still listed on my credit report even though they have a zero balance.

  • I have a question: since I can use my debit card as credit or debit, does using it as credit afford me any protection as you’ve illustrated?

    • No.
      A debit card is attached to your bank account.
      It doesn’t matter how you use it.
      It’s still a debit card

  • Tengo èxfinity de comcast y me llego una factura de 1.438.87 de un mes por usar la data creo que están tratando de robarme

  • I have METRO PCS. 2 lines 0f everything for $92.00 a month. $12.00 Is for insurance ($6.00 each line) Cut my Bill in half – literally. Been with them almost a year and am VERY happy!

  • City (Citibank) is one of the companies that offer a “nice credit cards” but when it came to you for not payment they do not care if you are daying. Chase, take advantage of your financial situation and raise your % from 12% to 29% just to get you into more trouble, and the sad part is that this great country does not help it people with financial problems and there are Financial gurus who recommend these products.

  • Lexington Law firm did NOT help me AT ALL! Was with them for an entire 12 months. After paying all that money and hoping for their honest help, I was STUNNED to find my score was LOWER than when I started! Hummmmm,,,how does that happen? Ive never used any credit, just kept paying down what I needed to! Just be careful. Those who have had good luck with this company maybe had minor credit issues.

  • I was wondering if there is a chance to get approval for a mortgage with a score around 635. I am still trying to improve it, and paying the $40 a mo. for Lexington Law. They have taken some stuff off, but I have a fixed income (disability) and a $55,000 medical bill for when my, then, 17 yr old son fell through the ceiling in the house we rent and broke his thigh bone in half. I feel like I couldn’t pay that in a million years!
    Can someone tell me about my mortgage question
    And about the medical bill issue?? Thanks 🙂

    • Yes it is very possible. Remember there are other factors in purchasing other than credit score. You need to be sure your debt-to-income ratio is not too high, plus show a cashflow funnel through deposits and bank statements. Go search types of loans and the credit score they accept – FHA is as low as 500. However, there are other factors they will consider.

    • Are you sewing the owner of the housie you rent ? Is there a City or County agency that is responsible for doing inspections and issuing certificates of meeting safety standards on rental properties ? It sounds like their insurance companies or their self insured status needs to work out a financial settlement with you. Also I had to go through bankruptcy 15 years ago to get rid of a $100,000 County Hospital Bill after an auto accident, To protect an inheritance that I knew was eventually coming, Maybe you should look into that also ?

  • I couldn’t find any value with Lexington Law either I started off 480 score 18 months ago. 90% were medical bills that went to collections. I took it upon myself to contact them, negotiate a payoff amount and request they immediately removed from my credit when I paid. They agreed. I was able to purchase a home 5.95% interest. I then opened up 4 “bad credit” credit cards and made sure the balance was less than 30%. Within 6 months of paying my mortgage on time and keeping my credit card balance low my score went to 720 where I was able to refinance my mortgage at 3.5%. It is not an overnight process but to go from refused a mortgage to your mailbox being filled with refinance offers in 18 months feels great. Now the second I get a medical bill in the mail it is paid! Also make sure you have 3-6 months worth of bills in savings. Now you can sleep peacefully

    • What percentage of the Collections Bills were you able to get them to reduce them to and agree to remove them and what type of legal document (If any ?) Did they give you insuring that they would Remove the Collections items on your credit report, Before you paid them ??

  • Equifax is not the best credit reporting agency .. I had a lawsuit against them and won. MH credit score kept going down dings left and right . I checked my credit and old creditor I had kept reporting late charges but I had already paid that specific debt off. I reported to all credit reporting agencies which included Equifax, Experian and Transunion. The only one I had issue problems and concerns was Equifax.
    I sent them over 15 demand letters to investigate the situation , after each inquiry Equifax continue he to say it was reporting the finance company as still open with no payments being made. I reached out to the company which took like 3 try’s due to change in management and the office manager wrote a letter of me paying off MH debt like several years previously and Equifax still report negative remarks . I’m at my wits end at this point so I sued them . The other two reporting agencies seen the issue and corrected the problem within the 3 months of me being concerned… good luck!

  • @Beth Trach i was able to find good information from your blog posts. I was always confuse with deductible, after reading this article my confusion has been cleared. thanks 🙂

  • I was contacted by Collection Agency on an old credit card debt that I stopped paying 4/2010. They state they will not sue me, but the opening date on my credit report shows 2013. Should I go ahead and send them a validation letter?
    Thank you!

  • I agree with you, There are number of excellent websites and apps to help you find the lowest prices on anything you could possible want to purchase. There are certain things that almost always cost less from electronic retailers. Thanks for the information..!!

  • This is terrible advice I agree for any debt past the SOL (statute of limitations) check your state each is different, some SOL’s are only 3-4 years and you can no longer be sued so long as you haven’t restarted the clock by making a payment during that time, that’s right the SOL can restart all over again once the collection folks get a payment of any kind out of you. Once the debt is 7 years old it should also be removed completely from your credit report. Her advice is good for fresh collections, however terrible advice that can actually hurt your credit even worse if you follow it for anything past the SOL date and especially if it approaching the removal date nearing 7 years old. Check your state laws where the debt was accumulated.

    • Let me add yet another thought to you collection above.

      In the case of folks with debt in collections and who are receiving income that is protected from garnishment, Social Security or Disability. Should these people place as much concern over potential lawsuits as others should consider? I tend to think not in some cases like grossly up charged medical bills that are nothing more than legalized theft from consumers.

      Presently my wife has 2 collections accounts due to up chargeed medical bills. I am on Social Security and the bills are not in my name. My wife will soon be on Social Security so I have told her it would be in our better interest to ignore these vultures and let them fly above as long as they desire. At some point in time we will request from them itemized invoices and proof the bill actually belongs to us. They are all part of a single hospital emergency room visit that lasted less than an hour total.

      I feel consumers should be protected from multiple collections entries in their credit reports simply because the care is being billed under different entities. THIS IS SOMETHING OUR CONGRESS NEEDS TO FIX FOR CONSUMERS.

      • I need to explain my reasoning behind why we ignore grossly up charged medical bills in collections.

        Our reason for ignoring those collection accounts are simple. No collection agency will remove anything from the credit reports until the account has been satisfied. There is no reason we should wrangle with these vultures for hours on end day after day to only get them to accept a partial payment as satisfaction on the account. We have tried this in the past only to find they will not remove the collection from our credit report files. Given this problem and the FACT WE REFUSE TO BE BILKED OUT OF UNEARNED MONEY along with knowing there is no way they can can file a suit and collect (income source is protected) we simply ride out the collecions entries on our credit report for a while until we feel safe requesting information they will very likely not be able to provide in time to continue the collections entries on our credit reports. THEY ARE SCAMMING US AND WE ARE SCAMMING BACK. (AN EYE FOR EYE APPROACH)

  • On deletions: The actual deletion of a collection, upon PIF, may violate the agreement between the agency and a CRA; however, many still do it to collect their 29-34%. Why do debtors want pay an account off in the first place? Generally, to qualify for an auto loan or mortgage. Even then, it may take months to see any improvement in a credit score. 25 years as a C & C manager.

  • Read the bill carefully. There should be a paragraph in tiny print stating that they cannot collect, or even take you to court due to the date of service being so old. Also, if this statement is not on the bill, write to them demanding proof of and date of original service. Send by certified mail with signature receipt. Bet you never hear from them again.

  • Credit bureaus suck
    They leave an account negative even after was paid. This us not right at all.
    When me and husband split he never paid the remaining balance of the electric bill which was the only bill he always paid.
    I did not know till I was applying for a gas credit card that was denied. I then called to check my credit and my score has dropped tremendously because of this. I went and paid that balance immediately, but 4 years later I still show a late payment in my report, and I have disputed thus left and right fir no reason, they still have it there. yES tHey SUCK

    • But the fact remains, you WERE late on that payment. Paying it eventually doesn’t erase that fact. The bureaus try to predict your likelihood of paying on time in the future and even though you made good on it, you have shown you have been late in the past. Does that make sense?

  • Lost everything eventually do to the stock mkt collapse in 2008… 3 homes dumped, a 2006 Dually Ford, a John Deere tractor, a 2001 Lexus LS, 4 horses etc… now I am older and have started a new company –
    Income is now the problem, mostly SS.

  • It sounds like with this current credit you mention here that you should be able to get a credit card without putting up a deposit ?

  • If you have a Master card with all the cash available from using an ATM Machine with it has been used up, But money to buy items from Walmart etc. is still available ! Just buy some small inexpensive thing that you would be buying anyway, Like liquid dishwashing liquid and the charged to your card and get $50 to $100 in cash instead in ask the cashier if you can get an extra $50.00 or $100.00 ? I have heard that doing this also makes it look like to your credit card company that you actually bought something and did Not get Cash from your card ! ? Go do a search for, How to get Cash out of credit cards and many of the first articles will list 50+ store chains that will give you cash, From your Master Card etc. cards, Like Walgreens, Walmart, CVS, and Dollar Tree Dollar store Nation wide chain dollar store !! (;^))

  • Generally you are better off paying cash for items, never using credit and avoiding credit reporting agencies. The agencies basically work for banks and banks are in business to take your money.

  • In my situation, they object to the number cards and the total balance unpaid, but also the fact that 60% of the available credit has been consumed. They ignore the size of the aggregate amount available for use. In my case, it’s more than $50,000. As balances mature for payment, I utilize the some of the $50,000 availability. As the maturing balances are paid, I open fresh availability within the cards paid down. I avoid the double-digit rates which occur when cards become past due. My aggregate actual rates are about two basis points above the prime rate. What’s wrong with that for unsecured debt?

  • Stephanie, can a mortgage servicer hire an attorney to contact homeowners,(without their permission), to offer loan mods that have higher monthly payments, and/or big balloon payments? Also, is it legal for the offers to be tied to the requirement of signing a Non-Disclosure Agreement?

  • Who or what gave a bunch of number crunchers the right to evaluate our credit ? Based on numbers that used to be illegal to have in your possession about other people’s finances ?? They can literally destroy people so badly that they commit suicide or end up divorced etc. ??? Was this ever decided by the U.S. Congress ?? ! Or anyone else elected or appointed ?? !!

  • Check a consumer catalogue and many problems can be helped by a good debt management program.That was what I used to get out of debt.Mak sure it is a legitimate program and also you want be able to use your credit cards for a lengthy period of time.I was over $45,000.00 in debt when I enrolled in this program.Please make sure that you keep up your stated payments andyou will be relieved of thi credit card burden.Be blessed.

  • I got charged with a DUI (driving under the influence of alcohol) during summer, started classes that cost 1900$ and I had to give the court 2400$, life became frustrating at a point I was filled with so many questions. If I’m guilty, will I become a felony conviction on my record, I almost lost my job during the whole mess then a coworker who had his criminal records expunged told me about webzz. It did take some days to talk him into fixing my DUI records and to my very surprise he fixed both my DUI records and increased my credit score in a way I didn’t understand he removed all negative entries from my credit report back when I had bad credit. So I recommend contacting him “Darkwebzz@null.net” cease applying for new credit card always and build up some positive credit history, he will make you have zero hard inquiries on your credit report and maximize your credit score.

  • I applied for a home loan few weeks ago but did not qualify. The last time I went through my credit report there were all sorts of things on my record including messed up addresses,bankruptcy and tax liens to dispute, and the companies all dropped it off my record. After searching through the internet for help i found this email address on FHA blog..( computerworm.hacker (at) hotmail. com ), The goodnews is that this man fixed my credit scores to 758, removed tax liens, eviction and bankruptcy off my report, he increased my credit limit and credit leverage. Still surprised at how Its just so fast and easy to push the dispute button at the credit agency website with this hacker. He just did mine and asked me to check back in 5 days and i confirmed already my credit score is at 758, the negative and derogatory items fell off. You can contact him and worry no more on buying a home with low credit scores. Hope that helps everyone looking for help.

  • Unfortunately I’m pretty sure if people with bad credit had been doing all these things in the first place, they wouldn’t be dealing with bad credit now. But I suppose it’s never too late to change your ways.

    • Some people didn’t have the tools or knowledge to know they were getting themselves in trouble. Not for you to judge. This is a crap comment.

      • We agree, Tracey! Not everyone is born with the tools to take care of their credit, and not everyone has someone who will teach them. That’s why we came up with The Credit Solution Program in the first place 🙂

    • Jimmy, your comment proves your youth and ignorance! Cancer, job loss, critical illness (heart, Parkinsons, etc. . . ), car accidents, businesses closing, lawsuits, death, bad banks that the government bails out and not the people they affected and things you don’t even see coming can affect your credit scores. You can have all the tools in the world, but when life throws you a complete curveball with something completely out of your control, family, not money, comes first. You can rebuild credit, you can’t rebuild corruption and death.

  • Leland Waterman you are grossly incorrect as Obama wasn’t even in office in 2008 when you chose to retire. Take responsibility for your own failure(s) and stop blaming others …..

  • If someone has a few credit card debts in Canada that are over 10
    Years old, are you still legally responsible for them? I had a mixture of cc debt that totalled about $50,000. At the time , I was unable to pay and didn’t go BK. They have all disappeared from
    my credit report and I am slowly starting to build up my ctredit again. What I really want to know is if someone stiffs Amex, Royal
    Bank of Canada, and a few other majors, would they ever allow
    Or approve an application for a new credit card after all years?
    Or basically, do they keep a STIFFER LIST. Would really appreciate
    Your feedback, cause I really want another Amex card and I’m scared to apply. Thanks in advance for your help. BTW love your site and all the info you provide. Have a great day.

    • I’m in the same boat as Steven, November 28, 2017 at 6:52 am, but I’m in the US. Wasn’t there an answer for Steven, and likely for me?
      I’m very interested in an AE card, also. In case you can’t find Steven, here’s his post:
      If someone has a few credit card debts in Canada that are over 10
      Years old, are you still legally responsible for them? I had a mixture of cc debt that totalled about $50,000. At the time , I was unable to pay and didn’t go BK. They have all disappeared from
      my credit report and I am slowly starting to build up my ctredit again. What I really want to know is if someone stiffs Amex, Royal
      Bank of Canada, and a few other majors, would they ever allow
      Or approve an application for a new credit card after all years?
      Or basically, do they keep a STIFFER LIST. Would really appreciate
      Your feedback, cause I really want another Amex card and I’m scared to apply. Thanks in advance for your help. BTW love your site and all the info you provide. Have a great day.

  • I ran a major credit and collections firm for more than 25 years. Debt settlement does nothing to improve your score. These days, paying off debt has become more of a moral issue than a legal one. Just demand that all further contact cease and desist, and document that request; any licensed collection agency will abide by that request. Statistically, there is only a 1-2% chance a collection agency will sue, and then, only if the amount if high enough (typical bank cards need to be at least $5,000). Going to a CRO won’t prevent them from suing, if they really want to. And don’t worry about the 1099-C. IRS Form 982 will discharge you from any financial obligation, if your net worth is less than the reported 1099-C debt. Finally, keep your money in your pocket; your family will need it when you use your debit card or pay cash.

    • Hooray for IRS Form 982. I used it a few filings back when I unexpectedly got “gifted” with a 1099-C on December 31. What timing. Coincidence? I think not. It took me hours of research to find this form but my mantra was: Rich people do not pay these penalties, therefore, there must be a form. That was also the first and only year I hired a tax professional to do my taxes. He looked at me and asked me why as I had already done it all correctly. I replied: peace of mind. If I’m going up against the IRS I want a major company to be my front man!

  • I managed a national credit and collections firm for more than 25 years. If you have a lot of derogatory items on your file, it makes sense to initiate a clean-up, just to remove the easy ones. The tougher ones may take a few letters and up to six months to see any real improvement. Ask your CRO if they have a legal team that will assist or go to bat on your behalf, if a federal lawsuit needs to be filed.

  • Credit One and other financial institutions get away with all this, due to anti-consumer policies and practices, established by the Office of the Comptroller of Currency. Having only one open account, even with exemplary paying habits, may land you a 700-750, but it may not be enough.

  • I personally applied to Merrick Bank to rebuild my credit. After 6 months of ontime payments they doubled my credit limit. I like this card.

    • They require a yearly fee and automatically add this charge on your bill whether account has a balance or not. Only way to stop paying fee is to close account.

    • They will stay on your credit report for seven years if you only pay a portion of what you owe! I did it with credit solutions of Dallas . 7 year mistake and even tried 2 other fix your credit card debts, over $1700 to one and $350 to the other plus the $5600 to credit solutions put me out of play for seven years,

  • Don’t Do it if it is a product of Synchrony Bank. They are unreliable, expensive and your credit limit is unstable. If you don’t use the card for a few months they will close the account. The Amazon Visa is GREAT!

  • bank of America 3% cash back on ALL related travel expenses. I have booked all my family vacations. travel by air, land, rent a car, whatever hotel motel whatever. its all 3
    % cash back.

  • I have a First Premier card. It was the first card I got 13 years ago. I keep a zero balance and do not use it. I have been debating on closing it, I am about to buy a house I wasn’t sure if it would lower my score by doing so before I qualified.

  • Although property insurers have made great strides in overall customer satisfaction over the past several years, the areas where they consistently see the lowest satisfaction scores are price and direct customer service,” said Greg Hoeg, Vice President of U.S. Insurance Operations at LNC insurance provideres. “Those two areas in particular will be under enormous stress as insurers address losses from the recent hurricanes.”

  • I’am screwed big time 6 payday loans I watch them eat my rental payments up now I’am four days on a five day pay or else notice.
    I make 18.50 hr. but I’am 65 years of age 12/17/1952 birthday.
    US Navy Vet.
    Now it looks like I Am facing a possible major illness, VA jesse brown want me to come in a talk about what found X-ray lungs abnormal, pelvis abnormal, kidneys somethings growing it really fast. Bad luck comes a looking.

  • good comments. I had 2 accounts where I was an authorized user only. not a co-borrower. I had those removed by simply stating, that I have not signed anywhere on theses debts and I am only authorized user. This person listed me as a nice gesture, to show I have more available credit. when his credit was good, then he defaulted and it was hurting my score. He got sick and hospitalized. they removed them. I did have to write all three credit agencies. did online.

  • good comments. I had 2 accounts where I was an authorized user only. not a co-borrower. I had those removed by simply stating, that I have not signed anywhere on theses debts and I am only authorized user. This person listed me as a nice gesture, to show I have more available credit. when his credit was good, then he defaulted and it was hurting my score. He got sick and hospitalized. they removed them. I did have to write all three credit agencies. done online.

  • I refinance my mortgage and with the extra money, they gave me I pay all my debts after buying down on most of them. I managed to stay debt free for a while but then, because of the mortgage refinancing, my home is in foreclosure. Had a car problem, got a credit to fix the car, and back in troubles again. because of the foreclosure, which still not done after 4 yrs, I got a payday loan to help me with my bill payments and rent every now and then. Finally, I got a better job, but I still behind of some debts and don’t know how to fix it.

  • This is so amazing,i was doubting this service from the start not until it happened like magic, i had all negative collections removed and permanently deleted from my credit reports,dejatech007ATgmailDOTcom is the best, he did a wonderful job for me , he boosted my credit score as high as 800s and he also increased my credit limit,he fixed my credit score permanently , now am free from all debts and loans ,i was able to get a new house for myself and my niece,i guarantee you if you have similar problems he will help you out immediately , i promised to tell people about his wonderful works , kindly tell him from Michelle .

  • I agree with every point, except #8. As a credit and collection manager for years, I’ve never known a single credit score to improve after paying write-offs. This business of paying off debts has turned into a moral issue, not a legal one. If you owe a lot of debt, but are working, keep the money in your pocket where it belongs; your family will need it. Use the cash to buy what you need and wait out the two clocks. Start fresh (with no bankruptcy), and move on with your life.

  • I really don’t want to leave a comment that can be read by everyone, but here it is. Ten years ago, I had a complete breakdown. After several hospitalizations, etc., it is only about the last six months that I feel clear minded and have a desire to see what my credit scores are. That sounds crazy, but I was and I did not recover overnight! It has taken almost a decade to get into an emotional position to even face life! Not funny, but very true. Anyway, I was horrified. I am 67, but don’t like feeling like a loser and would now like to be able to move into a respectable apartment (I moved into an efficiency because of a limited income) but when I checked my credit reports, I was flabbergasted. Most I did not understand or remember. One was definitely wrong, as I do remember the circumstances. I know I am rambling, but I really don’t know where to begin. I have a report from the 3 credit bureaus, but they are 606,527,532. I pay my rent, utilities, and credit cards on time, but it doesn’t seem to have much difference although my cards are all maxed. I don’t know where to go to begin to straighten things out. Any suggestions?

  • I have been using your information to raise my FICO scores from 705-740 up to 753-802. Why is Experion 40-50 points lower than Transunion? Is this normal? I changed bank for checking account to Chase Bank. Using Bill Pay, I set up recurring payments on all credit cards to cover minimum payments. When I get my invoices, I change amount to pay if balance is lower or if I have extra to pay more. Therefore, no late payments. They also give FICO score information for 7+ categories that make up your FICO score. You can also change information to see how paying down or increasing debt, increasing credit limits, etc will affect your score. When I pay off all credit cards my FICO will be 823. Great tool.

  • I got the contact of a credit repairer from a friend whom i contacted and who helped me remove all negative items from my credit and also improved my score to excellent level. i guarantee this credit repairer, he’s the best and I’m recommending him to everyone who needs to fix their credit to contact him for his service, you can contact him on creditrepairtechnologies (AT) gmail (DOT) com

  • I got the contact of a credit repairer from a friend whom i contacted and who helped me remove all negative items from my credit and also improved my score to excellent level. i guarantee this credit repairer, he’s the best and I’m recommending him to everyone who needs to fix their credit to contact him for his service, you can contact him on creditrepairtechnologies AT gmail DOT com

  • Well, look at the fine print when you authorize the merchant to do a credit check. You’ve often authorized them to check your credit any time in the future after this transaction – often times leading to multiple pulls you thought you hadn’t authorized.

  • Don’t need to waste your time with unprofessional hackers when you can get it fixed with such an authentic hacker?I’m here to publicly review this hacker who help me to raise my credit score to 800 plus excellent result,i have never dream i will meet such guru in my life, He is the most intelligent hacker I know. He really did a great job with my credit score when i really needed help to upgrade the new business i just got.If you need such assistant contact him on Email- hackwizarddoc1@protonmail he offer a lots of other service too..

    • The credit agencies are generally run by financial institutions. They take security very seriously.

      A hacker would have to be able to access their systems, make a modification and then delete all evidence that the modification has been made. Possible, but not easy – it could easily be months of work looking for a security flaw, and they would still need a way of ensuring the change was saved. Most hackers are low level ‘script kiddies’, and this is completely out of their league.

      An insider in the agency or one of their data feed partners would have a far easier time. Assuming they had system access and the rights to make changes, they could add false information such as a fake loan with regular repayments, or wiping old missed payment information.

      It’s unlikely they could get around the logging systems, so it’s going to be picked up sooner or later if they do it more than once, so not something you could do ‘for hire’. They would then be fired and face possible criminal charges, as it would be clear who they were.

  • HORRIBLE article. A FAQ with definitions would have been a better read. Devoid of any actionable advice. What is documentation we should show the credit reporting agencies, for instance?

  • I found after disputing each of the three(3) National Credit Bureaus three times, they will not remove your hard inquires. They send you this notice to contact the company’s and dispute with them. I know any accounts you can dispute, but they (NCB) are not doing their job. I have filed a complaint with Federal Trade Comn

  • Monty. The 13 point drop was likely a result of the inquiry AND the new account you where approved for showing up on your report. New accounts drop your average age of accounts.

    • It has grown much worse than the original 13 point drop. Now I am facing A FULL ON ATTACK on my credit score. I have gone from 785 to to 732 in 3 months time. Only one account has been opened and that is the only account applied for. My monthly balance runs about 10% of my credit limit. This is over a 50 point drop and there is no other information change on my credit report other than opening this single account.

  • I was preapproved with my bank for a car purchase. When I went into the dealership and filled out the paperwork. I told them I was preapproved for the loan with my bank. They told me I was eligible for 0% financing through the corporation. They asked me to fill out a credit application. I did and wrote on it for that corporation only….no others. Come to find out they checked 5 other banks and lowered my score some 50 pt. can I dispute these hard inquiries. This has happened to me a second time recently even though I have specified who they could check with.

  • My old lender I was on a fixed loan now on the new I’m on a variable. How do they just put you on what they want you to have? I had a 15 year loan and after I paid 10 years they sell my mortgage to another company and they put me on a variable rate. Can they keep increasing my payments where I can’t afford them? I have 5 years left I don’t want to lose my home.

    • Tia just wondering how your mortgage loan turned out. Did you ever get it straight?? It’s against the law to change from fix to variable. I hope you filed a complaint. I just got sent to another servicer and i’m a bit concerned because i am on a fix mortgage as well. I hope and pray that the new servicer is on the up and up.

  • Mike What makes your program from Smart Credit to which I pay 20 monthly and It didn’t come with form letter just a book with directions on how to do it yourself or pay more for auto pay forms.

  • everyone i boomed my credit score for cheap price only $47 i went to over 690 from a low pathetic 610 in 60 days go check out smart money secret.

    They have a FB group also that help you send out letters and remove any zombie debts or bad reports that killed your score.

    Now i was able to refinace MY car from thieves santander who wacked me with an outerspace 18.7% interest rate my car payments was $278 a month now guess what it is for final 3 years. $175.85 MY Bank got me in at way lower % of only 9.5 %

    YOU have rights use them get the smart money secret DO NOT pay lexington law or others high fees and starup signing huge fess also. They aint that good.

    • you are right about Lexington Law, the only thing they did was collect there $ 40 fee every month from your credit card, use them for about 4 years. Had only one item removed from credit records and that was one that just dropped off because of statute of limitations law!!!
      All they did was run of my credit card bill to about $2000 and that’s the only thing this particular card was used for!!!
      When you first sign on with them they said they would work to repair credit reports for you!! So beware some of the items you can have removed your self by checking your credit reports and talking with the credit bureaus and trying to dispute an item !!$

      • Lexington law is a scam company. They can’t even remove simple things that I did over the telephone myself. They tell you that are working on your credit but when you call the credit bureau They tell you that there is no activity whatsoever with your account. Stay away from that scam firm. Once I called them and they told me how their parents have credit problems and how they are having a hard time Well if these people have so much success why are their parents having credit issues?

  • I ran a major collection agency for 25 years. Paying off collection accounts does NOTHING to improve one’s score–it’s a myth (for now). FICO is based upon risk, not goodwill. Over the past three decades, the matter of paying debt has become more of a moral issue than a legal one. You have many legal rights; use them. Keep your money in the bank, and out of the hands of collection agencies. Trust me, with bad credit, you will need that money one day when the time comes.

  • ,” when revolving credit card debt is paid off with an installment loan, your credit scores are going to improve. Credit card debt is considered high risk, while installment loan debt is considered almost benign”.
    This is the best- kept secret ever! Understanding the discipline and control needed to make it work is very important but if done properly, what a blessing for past bad choices.

    • OMG!!! ARE YOU KIDDING ME!!!??? I have been SUFFERING with a TAX LIEN on my credit report for YEARS!
      I’ve tried numberous times to tell them that it really belongs to my ex-husband but nothing has changed!!! I will notify them again, THANK YOU SO MUCH xoxo

  • I have a question: if you have taken out a consolidation loan and want to take advantage of the 0% by transferring to a credit card can you do this?

  • Tax delinquency is no longer reported on CRs as of July 2017. However, they will make it so you don’t have the ability to pay your bills by taking everything in your account! So, even though it is not reported, does not mean it cannot affect your situation.

  • Although I DO believe everything you stated in your report, heaven forbid the credit bureaus actually live in the real world. Gee the credit bureaus would never never make a mistake and not properly safeguard our personal professional private information like loose our information to hackers. Still, we’re scrutinized as if we live in a perfect world. Things happen – a medical bill never got properly routed to me. The hospital even admitted the error was theirs. I only learned of the missing bill because it was reported to the credit bureaus as a non-paid bill for collections. My credit score was slammed and the credit bureaus never once bothered to confer with me first to confirm the validity of the bill or whether it was even valid. So, how again is this actually an aboveboard system with ANY validity or integrity whatsoever? Plainly it is not one!!

  • A debt collector has notified me with a bill I know was paid 15 years ago. He insists it was not paid in full. In all these years I have never once received a letter telling me this. After all this time I have no proof I paid it. Is this a new form of fraud? What do I do.?

    • Often our dear to heart Doctors offices will have billing companies audit their records and demand payment from patients whom they have no record of having paid.

      This has happened several times with our family and in every instance the collections are for visits which are very old and that the doctors office requires co-payment in advance of being seen. Yet they still hire companies to bill us anyway for charges we have paid long ago. Many times there is no proof of payment available given the years of time lapse between services paid at time of service and later billed by the medical billing company.

      OUR MEDICAL SERVICES SYSTEM IS TAKING ADVANTAGE OF CONSUMERS AS ARE PHARMACEUTICAL COMPANIES. If the public outcry becomes loud enough Congress will be unable to ignore these problems as they have in the past up to present time.

  • In less than 4 days of working with ZEUSHACKERS01 at OUTLOOKdotCOM, my credit score has raised high enough to be able to qualify for a mortgage loan that I was not able to before. Besides that, he’s so professional and friendly and easy to work with that it made the whole experience quite enjoyable. I have already recommended him to several people and all gave me positive replies

  • you will find a very sound credit repair service if you visit creditkarmahackerdotcom. they leave no stone unturned and when they handle your credit, be rest assured all negative items will be removed. All changes made are permanent or your money back. reach out to them and get started, consultation is free

  • Interesting article. I like the fact that you provided a list of institutions that may be able to provide you a loan even if you have bad credit such as car dealers and finance companies. I don’t think anyone wants to have a bad credit standing but if ever I would be in that predicament, I would certainly take heed of your advice.

  • Hello I am thinking about consolidating my lcredit cards which I max out. I only want to lower the interest and pay off the balances. Question would that hurt my credit score? Thanks for your reply

  • I’m did my research years ago and the viop phone cost is too much for me. You have to have internet and the viop package, which would have cost me over 100.00 a month. I have gone with tracefone for the last 17 years and have not had a plan come close to it, the minutes rollover and sometimes I only pay 20.00 for up to 3 Months of use.

  • Totally disappointed. You should have explained the dangers of payday loans and how to avoid them at all costs. It almost sounds like you are encouraging people to apply for these.

  • Surprising to me NO ONE MENTIONED forgetting about cell phone service and using a VoIP home phone provider.

    In days past anyone using a telephone used a landline. Today we have another variant to land line with our home phone service, is is VoIP (Voice over Internet Protocol). VoIP works the same as wired phones but is much less costly.

    Why expose yourself to an at fault accident, embarrassment during meetings, loss of appetite from interruptions, constant interruptions and a host of other similar difficulties? GET SMART GET A STATIONARY HOME PHONE AND TOSS THE DREAD INTERRUPTERS WE CALL CELLULAR PHONES.

    The notion no one can do without constant availability to a phone service in our hands has been disproved by millions over centuries of phone use via a stationary phone. Who cares is the boss can’t call you while your in the middle of traffic or your spouse has to go to the grocery because she can not get in contact with you on the way home. Get rid of the cell phones and save even more than this article suggest.

    • In this day and age our cell phones are used for much more than just a phone. It’s it a mini computer in my hand. I use it for keeping in touch with clients via email or text. I believe in great customer service and that means being able to be reached and not have messages puked up. I use it as a map to get anywhere I need to go in the cities. I would have no way to know how to get around without it. We do have a land line but only for recording purposes for clients to produce testimonials or anything else for our radio station. I can go on, so just doing away with us just NOT feasible in this day and age.

  • Hi Rebecca,
    Can you please tell me whether any of the business credit companies sending out pre-qualified mailers are a good idea? Our business does not have any credit currently, but we have tax liens, and are not sure we can get a conventional loan.

  • U. S. Cellular is 35.00 for iOS fone and 40.00 for smart fone unlimited everything. U can get Kyrocera or Samsung Moto E or G right now for 29.00 to 49.00 at Walmart. Excellent coverage.

  • I purchased a 2016 ford edge in Feb 2017 and the next month after the SUV needed to keep getting jump starts ,,,road side assistants was my new best friend it was not only embarrassing,but it was now an investment of something I really don’t want 4 attempts which is considered a lemon in the state of Illinois, I hired a lawyer and they want me to settle for 6,000 the car is 40k and 700.00 a month I was asking for a full refund and the lawyers seem to think this is a great deal I am an angry consumer who will never but or recommend this company to my worst enemy

  • I couldn’t possibly save thousands a year on my phone, and I don’t pay much more per year on my phone than I pay per month on my car. I have Republic Wireless, Moto E, and I get unlimited wifi and cell calls, texts, and Data (3G) for $25 per month plus tax, which totals $29.85 per month, charged automatically to my credit card on the 22nd of each month. That’s $358.20 per year, and since I have a QuicksilverOne, the cost is dropped down to $352.83 per year with my 1.5% cash back rewards. I also am not paying interest on this card since I use it for a large portion of my bills after making a payment to clear the available credit, and my total monthly payments are more than my credit limit, and as such more than my prior balance. More specifically, I use it for a total of $529.96 in bills each month ($500 credit limit), which saves me $7.95 per month, which is $95.40 per year. That’s like getting over 3 months per year free on my phone bill!

  • 1st of all… My 23 years in the wireless industry has sought me that even though they use the same network, it does make them equal. Most of the “Tier 2” carriers you speak of are actually owned 100% by one of the “Big 4”. metroPCS is owned (and operated by) T-Mobile. Virgin & boost are owned (and operated by) Sprint. Cricket is owned (and operated) by AT&T.

    However, the issue is not always the access to the towers… Rather it is the capabilities and features available on the network through the MVNO (mobile virtual network operator). Not all features are available from an MVNO… things such as Wi-Fi calling and MANY other features that we take for granted.

    Also, the “Tier 2’s” data speeds are slower (generally speaking) than those of the “Tier 1’s”.

    I currently use Verizon and for a family plan on unlimited, I pay the same per line as the “Tier 2” providers. If I only had a single line I “might” consider using something like “Straight Talk”, but there are many little features that a “Tier 2” does not provide.

    • Join creditkarma.com, creditsoup.com or nerdwallet.com. All three offer free credit scores. As far as a free credit REPORT, you are entitled to one free report per year from each of the major reporting bureaus (Equifax, Experian and TransUnion), which may be requested through annualcreditreport.com.

  • It is not up to the other party to say they will start over or wait, the state picks it up and they don’t drop anything.

    Joann in Atlanta

  • Glad to see fitting a bicycle in the car was included. That’s the first thing I consider when choosing a car.
    2nd: is the steering wheel shape comfortable for hours-long driving (must NOT have a big fat spoke at the 6-o’clock position where my thumbs go!)
    3rd: it MUST HAVE a compass. This is one of my favorite features. I use the compass direction to help navigate, especially here in cloudy Seattle.

  • #8 is the worst thing that you can do when trying to rebuild your credit. Consolidation loan, yes. Close credit cards, No, unless you want to drastically lower your score. Learn how to use your credit cards I’m not abused them. Once you get them down to zero contact the companies to find out how long they can be inactive with a zero balance before they close them and just purchase something small that you can pay off each month and then let him sit again zero.

  • Car insurance not only protects you and your car from accidents on the road but, depending on what type of coverage you have, can protect you against many other factors. Some types of insurance protect your car entirely, even if it’s stolen or damaged outside of a traffic accident.

  • I recently paid off my 3 year auto lease. I made all payments on time (if not early) and then at the end of the lease term I purchased the auto outright (cash). Nothing else had changed in my credit. Yet, my recent FICO score went down 20 points!! Ugh! What gives?

    • I have been study-ing credit myself for the past 4 years now and – from my observation not knowing your full circumstance – Credit reports like to see a mix (worth 10% of your score) of different accounts in your report. This may account for the downward spiral in your points. I agree makes no sense that I owe less – this is a good thing – but your credit reports like to debt on your report in my opinion – It took me 4 years but I lifted my score from the high 500’s to over 760 – my advice – Do your homework it goes a long way in building your financial profile

  • I had my credit score increased to 800, after i reached out to the best credit repairer with great concept and reviews about credit, I reached out to him for both credit score increase and removal of all unwanted items from my credit, which he did in 5 days, I believe *** is the best,reach out to him today to help you fix all your credit issues

    MODERATOR’S NOTE: The Credit Solution Program does not recommend using contacts you find in our comments to repair your credit. We have no way of guaranteeing they aren’t scammers. When in doubt, use a certified program. Here’s more information on how to spot scammers from the Federal Trade Commission: https://www.consumer.ftc.gov/articles/0225-credit-repair-scams

      • Hi Liz,
        Please don’t use the emails listed in these comments. We try to remove them as quickly as possible, but sometimes they slip through. We can’t guarantee they aren’t scammers. When in doubt, use a certified company (like Credit Pros.)

  • Mike, I wasn’t able to access your latest question about debt and does it expire ? It depends on whether it’s an unsecured debt or a secured debt. In most states, unsecured debts are subject to a statute of limitations. I live in Fl. so the statute here is 5 years. A secured debt has no statute and can be collected or repossessed by the creditor. For example, miss 3 car payments and your car will probably be towed to an impoundment facility.
    Judgments have a 20 year life span [in Fl. ] but the judgment can be renewed after 20 years. Your clients should be aware that even if a debtor makes one small payment on an unsecured debt, the statute begins again for another 5 yrs.
    I’ve been a subscriber for several years now and find your advice ,for the uninitiated, very helpful. Keep up the good work and ignore the negative reviews you occasionally get.

  • Dear Sir money’s not the problem cleaning this low debt out of the way.
    I went this lex law firm said that they would help me clear my debt they didn’t.
    Less then 6000 dollars has me living a partial life.
    Fining money for a house is not it I’am Vet.
    I need help in cleaning my credit scores.
    I did a dumb thing I went for some pay day loans when I really did not need them. Now with their high percentage they have me tied down.
    I’am working full time.
    With my low credit scores getting a loan to cover all debt’s with a low interest low is next to impossible.
    What can I do help, help!

    Edward H Crutcher

    • Hi Ed!

      I hope you don’t mind me calling you Ed sir.

      I am in now way associated with this program or the folks who work there. This is a program I have been following for many months, actually for several years now. I FEEL GOOD ABOUT THE CREDIT SOLUTION PROGRAM and what it offer the community.

      Now to what I wanted to tell you. Any program that offers to help will require some time from you and information you need to put together.

      you have never said you did not do this but this is what happens with many people. They enroll in a program expecting results yet they do not take time to furnish the information required for a group to be able to help you get things fixed. ALL I INTENDED HERE IS TO LET EVERYONE KNOW THEY WILL HAVE TO DO A FEW THINGS FOR ANYONE TO HELP THEM CLEAN UP AND RE-ESTABLISH GREAT CREDIT. It is a small price to pay for the reward you will receive.

    • Go look at NACA.COM !

      They do not require a down payment, do not use your credit to get approvals, they offer the lowest interest rates and YOU DO NOT HAVE TO PAY FOR PMI INSURANCE. PMI insurance will raise the amount of your payments significantly, you are far better off without having to purchase this insurance.

  • “You have to be active duty or retired military, work for the Department of Defense, or be an immediate family member to someone who qualifies.” This is incorrect.

    ALL Veterans and their family members also qualify!

  • Hi,
    I have a debt reported on my credit for unpaid rent by FCO(collection agency). The debt was due to me being laid off by a company I was working for no more than 3 months in 2014. The company closed their location in California and laid off everyone. I was stuck with rent of $1225 that I wasn’t able to pay while looking for another job. I moved out without an eviction notice on my score, but now it is there as unpaid rent. I have been living with family ever since trying to get on my feet.

    I was finally able to get a job in 2016 and have been with my company for 1 year and 8 months now. Cut to 2017…I have contacted the CA to and asked if I made the payment, if they would remove the debt from my report. I am able to take care of the debt now. But they have refused, stating that even if I paid whether i paid in full or took a settlemenent offer, it will remain on my credit.

    I am in the process of looking for a new place and it has been a pain in the you know what! What are my options? Is it better to pay them and allow the debt to remain on my credit reported as “settled”? or should I not pay and wait for it to eventually drop and when they can no longer pursue me for the debt? Will it look better if the debt is paid and settled so when I try to find an apartment, management companies and landlords will at least see that it was paid off and I could stand a better chance of finding a place to live? Is there a way, I can get them to remove the debt, once paid in full or even settled for less?

    I would appreciate your expert advice and feed back?

  • you will find solution to creditscore problems, just visit creditkarmahacker,com they are the best credit score repairers

  • So what to do when funds are so right? They’re all kinds of comments, what to, how to do, when you do, but what about the 1% of us that don’t have the access to move forward. How about real world honesty. I’ve bought the books read do this not that and, but I’m NO better off.

    • Its extremely hard to remove paid collections. There’s nothing in it for them to remove it.

      BEFORE YOU PAY COLLECTIONS:
      Always have them validate the debt first. If they can’t they have to delete. If they can validate, request a pay for delete but get it in writing.

  • My girlfriend now my wife got me to sign a contract the guy said it was only a 1 year obligation it was 6 I didn’t read it I took it as though she did well she had to file chapter 13 she put it in her plan they sent it to collections on me it’s $3500 the collection guy said I can pay a lump sum of $1700 that I still don’t have he said I can make payment for the full $3500 and when it’s paid in full it will be removed from my report I ask would it show I’m making payments he said no can you give a little advice thank you

  • Good info BUT if you’ve already got a low credit score you won’t be able to get a retail card either unless they don’t run a credit check. I’m betting they will.

    • You’re right it is a hard inquiry and they will say too many inquires if you apply for just 2 or 3 different cards!!!

  • A company brought a repo of mine says when I pay half of it they will give me a letter of release but they don’t report it to the credit berry I will have to so you say it still is on my credit for 7 years anyway no need to pay them

  • I have used some of yr advice and have seen a difference in my overall credit score, changing, from a low 300’s to the high 600’s and then in the past year or so I’ve seen it jump to being even higher. So great job on giving this advice, we all need it, since our own habits can some time control us, im pretty sure none of us wants to be in this situation…

  • Ok so I got behind on my cards was able to pay off all of the cards except for one I traded my 2014 truck for a 2017 SUV that did move my score a 40 point dealership said 40-50 I was duo but my score keeps dropping I’ve gone through 2 credit disputing companies who didn’t do much of anything at all except take me money from me I need help fixing my credit but I’m out of money any real true free advice and if it’s get a secured card remember I’m broke now thanks

  • Great article on what not to do. I have done all of them except the title loan and I’m still in debt. So that leads to my question: is there going to be a sequel to this on what one should do?

  • Everything, and I do mean EVERYTHING, in a car deal is negotiable. The price, the term of the loan, the finance rate you’re being given, and yes, even the extended warranty. Don’t pay $3,600 for a 10 year, 100,000 mile, zero deductible, free rental car, bumper-to-bumper plan that you can negotiate down to $1,200.

    And stay away from ALL fabric, rust, and paint sealant packages. Avoid dealer addendum packages that list nitrogen-filled tires for $300+. And “Market Adjustment Value” add-on window stickers of (example) $2,495. All of which are designed to add working room in the negotiation process and hidden profits. Last but not least, watch out for those notorious “Doc fees.” Another trick to build profit into the sale for the dealer.

    Anyone that speaks to you inside a showroom is a commissioned recipient of your money. From the General Sales Mgr., Finance Mgr., and the salesperson. They all get a slice of the profit pie.

    Have your credit union/bank/financial institution “pre-approve” you for a loan. Dealers will oftentimes match that rate because they will get a piece of the interest.

    Rebates. Are there available rebates? Veterans, Owner Loyalty, College Grad, Manufacturer’s Rebate, Special finance terms, Uber (yes, upwards of $1,000 from some OEM’s) rebates. You don’t HAVE to be a practicing Uber drive, just enrolled as one with documentation to show. Some OEM’s will match up to $500 after 30 days on a deposit you make into an account for one of their brand models. But if you don’t buy that brand, you don’t get the $500 returned.

    Buying a car takes work, research, investigatory skills, and lots of perseverance. And stamina. But keep the emotional baggage at home. If you walk into a showroom drooling over a vehicle, there’s a high probability you’ve already lost the battle and the war.

    • Just to add to what Richard said. I paid my way for my college education quite nicely by working at a dealership in sales. Lots of other areas to look for discounts. Where I currently work, we have business relationships with a lot of the German car companies. As a result we qualify for employee pricing from them. Check into relationships your company might have with some of the auto companies. In addition, I am a member of a few manufacturer car clubs. The loyalty discounts they offer are about 1k off a new car. Caveat there is you can’t typically sign up and immediately get the discount. Often you are eligible after a year. Another thing to consider is European delivery for some of the German car companies. There can be some substantial savings if you take your delivery of your car there. Fewer companies are doing this but for the ones that offer it it might be worth it. I typically combine this with a nice vacation and get to drive my new car on the roads were it was meant to be driven. Sort of nice cruising down the autobahn at 100 mph and not having to worry about getting a speeding ticket.

      Do a lot of due diligence on your trade’s value. That is where I made most of my money on the deals. Have a very good idea of what it is worth but be realistic. I would suggest going to Carmax and getting a cash offer from them BEFORE going to wherever you plan to buy your car. Then you at least have some idea (likely worst case scenario) of what your car is worth. Carmax will buy your car on the spot and withing 7 days of the offer they make you. So if you have one near you, check them out. A few times I just sold my car there. Keep in mind though that most states credit you with sales tax savings on your new car when traded in you old car at that dealership. Savings can be substantial. In my current state, if I trade in my 30k valued old car on my 45k new car, I’ll save about 2500 in sales tax on the new one.

      Take off any modifications on your old car before trade. The dealer won’t give you any extra money for almost any mods or tricked out wheels that you put on it. In fact they many penalize you for some of them. If you have the stock parts, and it isn’t a real PITA to put them back on, DO IT! Then sale your upgraded parts online and likely at least get 50 cents back on the dollar rather than nothing (like the dealer will give you). I once got an extra grand toward a trade because the dealer want to recertify my car and with the aftermarket wheels and tires the manufacturer wouldn’t let them if it didn’t have the stock wheels. I had the stock wheels and slapped them back on. I sold my aftermarket wheels and tires for 1500. I came out ahead 2500 overall on the deal because they were going to factor in at least 1000 to put stock wheels and tires to recertify it.

      As for aftermarket warranties, I disagree to some extent with previous comments. There are some good companies but check their ratings. All an aftermarket warranty is an insurance product. The big problem I’ve personally had is they typically ONLY cover repairs at one of their dealerships. Break down in the middle of nowhere, and if no dealer nearby, tough luck. OTOH on one of the aftermarket companies I was able to get them to just pay for the repair over the phone at a local mom and pop shop. Keep in mind with ANY of these warranties to keep meticulous records of all the maintenance you have done and make sure it is according to the manufacturers schedules. Don’t skimp on even things like oil filters. Some manufactures will deny warranty claims, even while under the factory warranty, if you use parts they don’t deem to be up to their specs. FCA is pretty strict about this especially on their diesel trucks. Don’t let saving $10 on a cheaper oil filter for your diesel truck cost you 10k if their is a major engine failure. Don’t think it can happen. They’ll look for anything they can to deny your claim in these major repairs EVEN if your cheapo filter wasn’t the cause, they still will use it as a basis anyway. If you just dropped 50k + on your new diesel truck, don’t cheap out on the filters. That includes the fuel filters as well.

  • The smart way to lend to family and friends is to Not lend to families or friends !
    But if you Must at liest consider it, Here are two methods to get you Out Of It ! First tell that friend who wants to borrow money that you just read an article by a Physiatrist that he just did a survey and that friends lending friends money was one of the largest causes of friendships breaking up, And that their friendship is Too Important to you to take that chance !! (;^))
    Another way is while discussing a loan, Ask the would be borrower if he has a checking account ! He will no dought answer yes ! Then ask him to give you a check for the total amount of the loan he is asking for, Tell him you will hold on to the check until he tells you, You can cash it, If he hems and Haws over writing one or comes up with excuses, Say, Well you Do intend to pay back this loan Don’t you ? Then just tell him no, He is Not showing likelihood of paying the loan back ?

  • I live in NC, and tried driving with Uber for a while, day, night, airport, downtown on weekend nights till 5:AM., Nothing added up, day or night the most of the rides were $3 to $5 before gas!, Long distances trips $12. at the most., So, after driving all night or day, and less gas exp. my big earning average for the day, READY? $35.00 and this is before maintenance and repair. Just scary what Uber want to do with you and your property.

    • I’ve been driving for Uber in St. Louis, in my spare time since December. Typical Friday night/Saturday earnings are $250-300. I’ve had a couple of rides that were over $100, as they were going a long distance and round trip. Guess it depends on where you live, but I love it.

    • My friend showed me his pay tracker thing and on Saturday night her made over $500. He keeps up with the plane arrivals at PTI.

  • I unsubscribed to The 800 Club, which you did, but you said it was a 100% money back guarantee for any reason. Well I see where you took my money, but I don’t see where you gave it back like you said you would. Can you please explain why you are not keeping your word and refunding the $19.97 you took from my account?

  • I been having the credit couch An I paied my money for the program I can not pull it off my phone as they said I could can’t down load it tried calling Mike all the crap they told me todo I have done An nothen I mean nothen !!!! Has helped me lower nor took place with this program!!!!!!!!!

    • I never signed up for the Credit program but I can honestly tell you and anyone else reading this that the information they provide in the program is excellent. When followed it will bring anyone back to full acceptance as a credit worthy person. The keyword is FOLLOWED and that means personal effort must be made to do the things this program teaches you.

      That said we all understand any program alone is not the entire solution to keeping great credit once you achieve it. The only way to insure keeping great credit is for YOU to keep your credit clean, pay bills on time, only charge what you can easily repay and never go crazy charging up the credit cards you receive. Credit is something you earned but earning credit and earning money to pay for your credit are two distinctly different things.

      Unfortunately aside from telling a person what should be done to keep credit clean there is no program that will do everything for them. If there were I would be investing heavily in the company selling that program because the returns would be huge.

      When people fail to control their spending eventually they will have a reaction to their over indulgence. Like drinking to much alcohol the spending high will wear off and the lows of debt biting at their income will eventually set in. Then like a bad hangover everything else in their lives goes down the toilet of financial disrespect right along with the person.

      We as people have to learn the insight to know that we alone must take charge of our lives completely if we expect any kind of somewhat care free life ahead. Even then life will never be completely care free but when our financial lives are in order every thing else we strive to achieve becomes much more reachable.

      When a good life and future is in our sights we no longer have the despair experienced by those who ignored their financial health and the future looks pretty good compared to what may have been their old life of ruin in the gutter of debt. Nothing will be completely care free but it can be close enough to know every thing we reach for is attainable once our finances are in order and we are willing to do the other things needed to get us to our goals. This is what brings real satisfaction to life.

      So is this sounds like you or someone you know please pass this basic knowledge on to them. There is nothing hard about keeping your credit clean, exert your ability to use self control, make a habit of it and you will be fine along with your future.

  • If 5 points are all we should see our credit score by upon a hard inquiry to our files then my question is “Which of the many credit scoring algorithms are you referring to?”. Many of us know FICO and Vantage the credit bureaus compete in this area with both selling credit scores based upon similar yet different methods to compute our credit scores. Within the systems to score credit there are sub areas that score credit based on very specific lending (Auto Loans, Credit Cards, Home Loans, Personal Loans, Ect.) bringing the total number of differing credit scores for an individual well up 20 potentially differing results for each person scored. This does not take into account other companies who are also in the business of credit scoring.

    To discuss this in a meaningful way we have to be specific about how we are being scored. Otherwise people have no way to know if those mentioned 5 points a hard pull might take off you credit score is from FICO or VANTAGE and which scoring algorithm within those two are being affected by 5 points.

    My credit is spotless but I only have about 2 & 1/2 years of reported data. There have been no bad marks of any kind on my credit report during this period of time and nothing but a completely clean report is what is seen when I review my 3 credit reports.

    How do we explain a 13 point loss in my credit score because of a single hard credit pull that was approved for a Master Card World Card? After reading what is said here this is very troubling to me and sounds like it should not be as it is. Even after the 13 point drop in my Vantage score I expect to see a much large drop in my FICO score. (The two reporting methods weigh things differently.)

    How can we consumers fix things like this? I have only 1 hard credit pull on my credit report. I waited over 2 years prior to applying for another Credit Card so the single past hard inquiry I had fell off the report. Now I am back to square one and the amount of credit history gathered in the 2 plus years seems meaningless where credit scores are concerned.

    How can you help a person with a 784 FICO – 8 score, at 2 credit bureaus, escape this seemingly harsh degradation in my credit score at the bureau where the hard inquiry was submitted?

  • I’m wondering what are the pros and cons of taking a garage and making it it into a rental apartment? I know some of them such as the loss of my total privacy the cost of the construction etc. but i dont kow what are the real numbers at the end of the day? How long does it take for the income to cover the construction costs?

  • The big question is why do people even need to rack up such huge debt ? Habits are hard to change. Transfer, sure, but the odds are that the debtor will wind up owing yet another balance sooner than later.

  • Hi, we are planning on purchasing a new home, but we couldn’t get a conventional mortgage from a bank, we came across “owner finance “. Is this a safe way to get a house, do we get to keep the deed and be sole owners of the house we are trying to purchase?

  • I managed a large C & C agency for years and wondered why people pay at all. It does NOT help the score. It keeps the account alive for 7 more years. It takes money that you will need. Start saving! Pay cash or use debit. Never settle a debt. Keep the money in your pocket where it belongs Tip: Only people who need to get a car or home are virtually forced to payoff a collection account; otherwise NEVER DO IT!!!”

  • I am having a hard time getting any loans my credit is horrible it not my fault I have low income. Capital one is my worst ever someone was help pay it backed fired
    Capital took my card away from me
    Talk about a screwed up deal.

    • Have you received any information from CAP 1 dated within the last 30 days?
      If not, you can call them and request a current billing/statement.
      When you have something that’s less than 30 days old, feel free to contact me. I don’t tell you here what to do next, because I don’t want you to spill the beans, so to speak, to CAP 1.

  • items that have been paid off but remain as negative items on your report can they be removed before their expected expiration date?

  • I have 1 credit card. I got in trouble in the early 2000’s and promised I would never get another after paying a ridiculous amount on interest. It’s balance is always 0. It effects my credit score but who cares. I have my home mortgage I pay each month, my car and my monthly expenses. You can very easily be drawn into a credit hole by your cards. Buyer beware!

  • Truly Kristie is a knowledgeable financial entity; her observation that insurance, utilities and the like do not appear on the 1003 is almost brilliant. Although, lower credit purchasers who use alternative credit might have to furnish this info to the underwriter, Kristie is 99.9% correct – these budget items should be considered.

    The only weakness in her article is a failure to cleary clarify the impact of ignoring APR in favor of lower interest rates – on the overall early loan termination; i.e. What cost adjustment/corrections occur on the financial end to a purchaser who finances 30 years and opts out at 5 years.

    Kristie has inspired me to write a few articles about mortgages that I will provide for your program at a later date;this is based on last mortgage loan processor & officer training and past service as a loan underwriter & residential & commercial real estate broker.

    I joined because I deem this program a consumer service

  • I make my credit card payments online and a couple of months ago one of them didn’t go through, I caught it when it was only a couple of days late.
    I called them and they removed the late charge, but about a week or so later Credit Karma let me know that they reported the late payment and my score dropped dramatically.
    I didn’t do anything about it, but after reading this I know that they shouldn’t have reported it since it was only a couple of days late.
    What should I do?
    Thanks!

  • I want to refinance my mortgage but my credit is poor I’m try to get it fixed paying a lot of stuff on my credit is getting up there goes up and down I’ve been paying my mortgage on time my mortgage is around 1700 and I would like to get it down from there a lot more down

  • Hi and thank heaven for people like you. I have been in a debt validation program for almost one year. Most of my 13 creditors have sent me collection letters that been sold to third parties for payment. 3 of the creditors or collection agencies have NOT sent me any letters. Is there an expiration for the time the credits have to assign a collection company?

    Thank U!

  • if you plan on buying your leased car at the end of the lease, remember you will be paying retail twice…never a bargain. ALWAYS ALWAYS ALWAYS buy a service contract if you are buying a used vehicle…get one that covers computer controls, power train, and bearings…if you think it’s expensive, ask yourself what peace of mind is worth. If you are putting yourself out there to afford the payment, you probably won’t be able to afford an expensive repair. My personal experience is I have always had a service contract pay for itself, and my professional experience is…you don’t want to be the person yelling at the service writer that your broken car is too expensive to fix when you were offered a service contract that would have limited your out of pocket expense to $100, and you were too cheap to buy it and turned it down. My current service contract cost $2500 rolled into the loan, and they have already paid out $4000…with 6 months left on the contract. Buy your car in the evening of the last day of the month, or the morning of the first day of the month to save big bucks…that’s when the sales incentives/quotas matter most and they will do anything to sell you a car. This information is based on a 25 year career in the auto industry.

  • I have been a hairstylist for the last 18 years, and have often thought of starting a business that would allow people to basically make appointments online with a licensed professional hairstylist who would be able to somehow bring the salon experience to them. Possibly converting small RVs into mobile hair salons. For those clients that are bound to their homes offer services to them as well that would allow them to still feel “human”, by getting a simple hair cut. Any suggestions on how to make my ideas a reality?? Finances are my biggest hurdle. I’m a single mom with 2 small children, I’m So extra money is not something that I have lying around.

  • I have been working on my credit report over 7 months now and I am so frustrated at the way its going. Before I started my score was over 620, after I started fixing problems the score dropped down 100 points,,,what’s up with that! I had collections on my report and recently made an agreement of payment with two of them for a payoff and supposed to be taken off my credit report. One account seems to be lost in space, after talking to at least 6 different people, no one can tell me where the account is or went but it still shows on my credit report. I have disputed some of the collections but the creditor does not agree, and I evidently still owe for a bogus charge, especially for a medical bill I do not owe. I have just reported a company to the CFPA for fraudulent charges and victimizing me while taking my rights as a citizen and a consumer, an investigation is going on for the company as well as Equifax and Experian, while Transunion should have also been investigated for allowing a false report on my credit. I am getting an attorney and hopefully someone is going to get sued for causing my integrity and rights to be damaged.
    I am 77 years old and trying to buy a house to live in, while my credit score given, is causing me to be unable to have a place to live. This is wrong and Unconstitutional in this country. My rights have become whatever the credit bureau decides and it does nothing but keep me down along with millions of other people. I will fight this problem as long as I am breathing, hopefully more people will do the same and someone with integrity will step forward.

    • Rule #1 Never talk to a collection agency on the phone. GET IT IN WRITING.
      Rule #2 All communications is written. This is proof of what is agreed too. Everything you want must be in writing. Just because they say their will remove something from a credit report does not mean they will unless you have it in writing. Make sure they agree to not use another classification to screw up your credit report. They say they will remove one thing but they will add another. They are tricky that way.
      Rule #3 Make sure you understand the law. FDCPA, FCRA, Statute of Limitations for the state the debt created in and don’t forget to check state laws for credit reporting, etc.

  • Mr. Mike Roberts – The comments pretty much say it all. While Rebecca may be
    doing her ‘best’ at writing, she has a lot to learn about ‘common sense’ and the
    aging population with regards to “saving” money while most are struggling to survive. Life happens, bad things happen to good people who have limited incomes. Wealth is not only $ in the bank, but counting blessings -health, family, friends, and choosing to be happy. Adding joy to others who are less fortunate,
    is the true wealth one takes with them to the end of their life’s journey…

    • Hi Dorena,
      Thanks for reading! Unfortunately, this blog is about how to save money in a practical manner. In following with our blog’s content, this article is about saving money, not counting your blessings. Rebecca, who is an immensely talented writer and an asset to our team, offered pragmatic knowledge on how to do exactly that. If you’re looking for an article on counting your blessings, might I suggest a blog that offers that kind of advice instead? Point #5 was especially helpful for me 🙂

  • Yes, maddening funny article, funny gorgeous and clueless young blond! I’m beautiful, too. I worked all my life. I’m very bright. My retired nurse friend told me I need an investment counselor or whatever the hell. Ladies, YOU try to juggle exactly $1,188/mo. to pay HUD senior housing, eat organic, keep the car insured, get over the mountain for VA healthcare because Veterans Choice is a damned joke — and . . . save for cremation! Social Security has been the same for two years. I have a dental estimate of $3,800 and brake work of $400 — plus two hand surgeries I may have to get in the troubled civilian world. As for this immature notion of prioritizing, I am proudest of having gradually lost — all on my own — 60 pounds! And that is why I’m wearing too-big, somewhat odd thrift shop put-togethers just now. I syringe-fed baby chipmunks two nights ago and hustled to clean the bear house, put out food for three bear cubs who will be wild and free next spring. I wore 15-year-old New Balance tennis shoes to do this! I do my own manicure — short, for playing the piano, a Steinway. Maybe in 50 years this silly girl will understand about manifesting the Good Life on a shoestring! Right now, her mug shot ruins her credibility.

  • I signed up with a debt relief agency a year ago as this process was new to me. The company established a savings account for me and negotiated with a company for me to resolve an account through negotiations for an amount considerably lower than the actual debt. They also paid themselves handsomely for the negotiation process which was almost as much as they resolved.
    They did not negotiate to my benefit. My credit report was hit costing me 43 points, as the Collection company reported an open amount of $2000.00., although they had a written agreement to settle the initial bill in the amount of $2700.00 for $1000.00. How do I get this off of my credit history?

    • Stasie i have an old wells fargo secured credit card acct i was paying on it each month than got into sone minor but nevertheless legal trouvle where i was locked up for 6 months i asked my christian lady friend to resolve this with the bank but she didnt so even though the bank had the money in escrow they still liat ir as 60 days past due this was 4 years ago the acct has been closed since 2013 listed as paid but every tine i go fmto apply for credit i get a ding for the past due acct saying its past due what do i do its killing my credit

  • When I start to rent to own I was marriage now I am not. I am still in the home keeping everything going on time but my income is only 1350 a month and i am working with my credit score it is 550. What can I do I want to keep the home the people that owner the home want help in any way

  • I have Midland credit And portfolio services.. whatever they are called..and SYNCHRONY is on my credit report.. and I don’t have actual ACCOUNT w them. SYNCHRONY bought GE CAPITAL BANK CARDS, AND THESE ACCOUNTS ARE ALMOST AT 7 YEAR MARK GE AND SYNCHRONY WERE SUED END OF 2016 .. $225 MILLION.. I NEVER RECEIVED ANY NOTIFICATION OF ACCOUNTS BEING BOUGHT BY SYNCHRONY, SYNCHRONY HASN’T CONTACTED ME, AND I STOPPED GETTING EMAILS IN 2013. WELL DURING SAME TIME FRAME I BECAME ILL, AND IT EFFECTED MY BRAIN AND MEMORY. SO I WOULDN’T HAVE KNOWN IF I DIDN’T PULL CREDIT REPORTS. ALSO HSBC SOLD OUT TO CAPITOL ONE.. AGAIN RECEIVED NOTHING AS FAR AS NOTIFICATION.. MY HUSBAND’S ACCOUNTS A FEW OF THEM ARE ON MY CREDIT REPORTS. THEY ALSO HAVE ORIGINAL DATE OPENED AS IF THEY WERE JUST OPENED
    ANY ADVICE? I HEARD MIDLAND AND PORTFOLIO ARE BRUTAL AND HAVE BEEN SUED.. SO IM ANXIOUS. DOESN’T CBR HAVE TO INFORM YOU IF TERMS OF CREDIT AGREEMENT CHANGES, AND THERE WSS MULTIPLE INACCURACIES ON MY EXPERIAN. AND THE CREDIT BUREAUS ARE RESPONSIBLE FOR MAKING SURE THE REPORTED INFO IS ACCURATE.. AND THEY CLEARLY DIDN’T.. I REQUESTED DEBT VALIDATION, AND THEY DIDN’T..

  • I agree, but in my case my score does not matter, I am retired, my income is soc sec only and at 900 a month, I don’t gualify for any type of credit…the average senior is like me…my credit was good until I could not work any more, 2 hip replacements.

  • USE YOU HEAD WHEN YOU PIGGY BACK!

    I would NEVER do anything illegal to help my credit score or another’s. I have piggy backed my wife (added as an authorized user) on one of my credit cards boosting her credit score overnight by more than 200 points. Her credit was not bad she just didn’t have any established credit while I had better than great credit and have had it for a while.

    Here is why you should use your head when you add an authorized user. Let’s take a teen you want to see get a good start but that teen has been making bad decisions. OK, so you decide to add the teen as an authorized user but cover yourself by keeping the card assigned for his use in your possession. Great this covers you from loses but might still come back to haunt you IF another company issues the teen credit based on the improved credit score he developed from being a user on your account.

    We have an ethical and moral responsibility to lenders who allow us to add users to our accounts. It is to add only those people we believe will not take advantage of a lenders generosity by scamming another lender via their enhanced credit score.

    I have no idea if this scenario has gone to trial in any court but it sure seems to be a reasonable claim a lender could make if they are able to satisfy court rules and establish the card holder as a participant in lending fraud. USE YOUR HEAD BEFORE YOU ADD ANY USER.

  • What I would do if I had to do it all over again with the knowledge I have now. I would have bought the ebook credit secrets and used the letter to stop all the 30 collection agencies that hounded my phone at work and home. Very embarrasing with them call my work and my personnel headquarters to track me down. I would have joined Lexington Law and Credit Repair dot com a lot sooner. I waited over 6 years to do anything. The collection letters stop the calls. But a lot of calls ended because in my state, they can’t sue you after 5 years so you are hard to collect from. Then the closer to the 7 year mark, the stuff starts falling off your credit reports anyways. I learned the hard way. I will never screw up my credit again. I do remember having a score as low as 434! Now I am up to a 732 depending on what fico score rating I am using. Have 3 high limit cards and most of my loan debt paid. Going to buy a property next year using VA loan. But I will have zero debt when I do it. There is light at the end of the tunnel. Get educated and take action and don’t listen to negative fools about Lexington.

  • All the insurance companies in America are very greedy!! We have already paid them in advance to protect us when we have an accident. Instead, if there is any kind of accident, big or small, we pay them more whether it is our fault or not. What other business in America can get away with that? Reason behind all this is pure and simple , the fault of Congress and lobbyist! Insurance companies pay representatives and senators big money to lobby for them in Congress. With big contributions coming into their pockets from insurance companies, what politician is going to vote for changes!!! It is high time we stopped all this. Congress should represent the people, not the insurance companies!!!

  • This is the same dilemma people face today with the Department of Education’s monitoring of student loans. It’s time for serious reform. Notwithstanding that, the three major credit bureaus appear to have removed most, if not all, negative information relating to these unpaid loans, at their discretion. Perhaps that’s their way of tacitly disapproving of the undue burden placed upon these victims. Another reason to periodically check one’s credit reports with all three bureaus.

    • FICO is used more widely (much more so) by creditors. So, while the Vantage Score (typically found on the free credit report sites like credit karma) is a good gage, it is not the score used for those looking to grant credit.

  • What should I do if I never receive notice from my old bank but a new company has already started sending me statements and requesting information?

  • There are two distinct problems with tier 2 providers. The first is roaming. As an example, Sprint and Verizon both work on CDMA technology and have roaming agreements (meaning you can use Sprint towers as a Verizon customer and vice versa). Further, many (if not all) of the phones are now cross compatible with the GSM networks and can therefore be used in many foreign countries (call your provider for info). Tier 2, however, is usually tied to ONE network (ex: Boost and Virgin are Sprint network only).

    The other issue is internet. If you use a lot of bandwidth, it will be slower on the prepaid (think of this as premium service vs regular). The idea, of course, is to keep the big guys in business (seriously, tier 2’s own no towers! If tier 1 providers go under, there’s no service for tier 2’s to buy!).

    Having said that, if your credit is not good, you just don’t NEED the speed, or you rarely travel, tier 2’s can be a good option.

  • How do I defend myself against a debt buyer got info about a charge off from an old bank account? I was going to work for a major company they run background check. Mine showed the bank charge off THEFT BY CHECK. PENDING
    The profession. I’m in. This was a death knell. O was already moving to another state when this info stops everything. The bank kept allowing an online crook keep grabbing money from my account after disputing this. Trying to cancel this never ending purchase now what can I do? I have started the dispute process but I don’t feel good about my chances. I got robbed plus no credit check was supposed to happen. Please help

  • Baffles me why anyone would pay $200 a month for a phone bill. Straight Talk costs me $45 a month. Works with any phone you want, even iPhone. ( iPhone 6 is $199 at Walmart right now) same EXACT service as a contract phone. No brainer.

  • who can I go to for a named non-owner insurance policy as I do not own a vehicle presently. But am in process of getting CAlif. drivers license. And may need to drive someone elses car at some point.

  • I received a letter from a collection agency telling me that I owe a debt from a credit card that I never had. I never received statements from this credit card, nor did I ever receive phone calls from the company to try to retrieve the debt. When I called them to explain this to them, they said they would investigate it. A week later I got a letter in the mail stating that the debt was mine. Now what do I do? I refuse to pay someone else’s bill!

    • Request a copy of :
      1)all statements that and 2)your signatures as they appear on each purchase alleged and
      3) validation documentation of your alleged card activation.
      #StayBlessed

  • I went to my credit union to get a credit card and when they ran my credit they denied my because they said my debt to income ratio was 5% higher than it should be to get a card. Sooo, they said they would see if i could get a $500.00 secured loan that i was approved for. Thing is, when it was approved and did it i did not know they ran my credit AGAIN and i didn’t know they did until i looked at my report. Questoin 1- Why would they run it 5 minutes after they just looked at it and Questions 2-HOW DO I GET RID OF (if i can?) 1 OF THE INQUIRES THAT HAS THE SAME DATE??? PLEASE HELP ME IF YOU CAN… THANK YOU IN ADVANCE. ..

  • Legitimate debts stay on the report, UNLESS a professional knows specific ways to lawfully remove them. As a credit and collections manager for more than 25 years, I often wondered why anyone pays any collection account, except to possibly buy a home or automobile. Paid collections will not increase your score by even one point because there is no benefit of available credit to lighten the debt-to- credit ratio. So, if it’s going to stay on your report anyway, DON’T PAY! Live with your mistake, and keep your money in your pocket, where it belongs. Your family will need it!

    • tMister K that doesnt make sense to not pay. They can take you to court, sue you, garnish your wages, and more. How do you simply not pay? Legally? also, I am aware that paying it does not increase credit score, but on the other hand, not paying it keeps it around forever. If you are truly a professional in this area I would really like to know how to avoid paying an almost $19,000 debt without getting sued, or other legal action…thanks!

  • I am being solicited by several companies that tell me they can eliminate all the negative items (past late payments) and can guarantee that they will have my dismissed bankruptcies removed even though they are less then 5 years old. Is this possible. They $1500 to accomplish this. I am a bit skeptical to say the least. Is what they are saying possible?

  • Stasie: i acquired a Visa Rewards
    Card (secured) from my bank and every month I charged on it .
    I paid it off in full each month for
    3yrs, and my bank unsecured my
    card and said they would increase my credit line. A week later my friends wife took my card out of my wallet paid her utilities and retirned it to my wallet. I never saw a statement
    since I’m gone driving. Finally my banks collection agency informed me that my account was turned over for collection.
    My credit score hit the bottom
    and I have sent briefs to all 3 credit agencies and Lexington Law and nobody is doing anything. My Visa was$873.00
    and will be paid in full in 2mo.

  • I did not see the listings for the three credit cards that supposed to help you build your credit?

    • Hi Joseph,
      You will see at the bottom of the article, there is a bar that says, “Page 1 of 4.” Please click on the blue button on that bar that reads, “Next Page,” to see the rest of the article, including a list of those credit cards. Happy reading!

  • The article was supposed to give listing of credit cards helpful to reestablishing credit. I did not see any.

    • Hi Gary,
      You will see at the bottom of the article, there is a bar that says, “Page 1 of 4.” Please click on the blue button on that bar that reads, “Next Page,” to see the rest of the article, including a list of those credit cards. Happy reading!

  • I don’t agree with everything you say. Every adult needs some life insurance if only for final expenses. As for using your emergency fund, that is fine if you have sufficient funds and/or you don’t have to use a chunk of that fund for some emergency just prior. I agree that your insurance needs change during different stages of life, but using term exclusively has complications of its own. When it runs out, the next policy will be more expensive no matter what. Sometimes your health will change in the interim and you are now uninsurable. And typically you always need some insurance in place. If this were not true, they would not be able to sell all those over-priced guaranteed issues policies to old people on TV.

    I beg to differ about working spouses. I work and have for over 30 years. When my husband died I would not have been able to do all the repairs and maintenance on my house if I did not have his insurance. I fervently wish we had bought more so that things would be easier for me. Since neither of my parents left me any insurance I made sure I was heavily insured so that if I died first my husband would not have to worry about money. I was the office manager for an insurance company for over 30 years and I have handed many widows a death claim check. Not one of them said they did not need all this money. I have had women break down and cry because what they had was woefully inadequate.

  • I hope I don’t aggravate anyone m but I have questions.. I love to learn. I saw the life insurance underwriting. I have a question about car insurance. Right before are renewal was due, they changed our premium. Long story. But we finished our 6 month.. in March, and they changed our premium before the last month.. and it went tob$6000 for ,6 months. Bc my 17 yo son had a fender bender. Prior we had 1100 for 6 months . Now they are saying we owe 2000. ?? Can they do that?

  • Hey I hope this helps me. I am an educated gal, but I always fix my husband’s​ credit repeatedly, bc quite frankly, he’s irresponsible. But I’m working on mine . I have some questions, and I can’t find answers. Ok. Last night I downloaded annual credit report.com. and Experian is the only one I could get, bc TransUnion and Equifax could not verify me with security questions. That has happened before. So now I’m worried about identity fraud.
    Anyway, on my Experian, they have numbers listed as your address. I read me. Mike’s info on how getting accounts removed with old addresses. Does any one know how to figure that out? I’m not on FB yet. I’m not a fan.. but I’ll join to talk with 800 club. I have some questions about some other issues.. that I can’t find answers to. Would anyone be willing to talk to me. This is my first day with this program..

  • I am desperatly interested in this programplease consider me to participate in this program as i have been victim of id theft as well as going thru a divorce. My phone number is **********

      • Sam, please consider letting people know about some of the non-government programs for home purchase. Many communities have them and some are Nation wide.

        NACA.COM is one of those programs that I personally know works. I have 2 different friends who have been successful going through their program.

        • Hi Monty,
          Thank you for the recommendation! I have sent it to our writers. Look for an article on this soon!

  • Citi Diamond has 21 months 0% interest and a 3% balance transfer fee. I even received another offer to transfer more to them… same fee but they extended the 0% period. I don’t use the card for anything except to pay down debt. Worked hard to rebuild my credit over last 7 years. Received card once credit got in high 600’s so not everyone may qualify. Citi just sent me another card offer with 0% for 24 months. It’s the Citi Simpliciti. They also offered 12 months 0% on purchases.

  • I had credit repair about a year ago and my credit score any up slightly, but now I just received several letters from IRS for prior tax years up to 10 years ago, I’m unable to pay, and they intend to file tax liens on my credit again. What can I do about this?

    • I owned back taxes from 2009, the IRS garnished my wages until the debt was paid in full (approx. $6000). I received a collection letter in Jan 2018 telling me I owe back taxes and interest from taxes owed from 2009. I showed them pay stubs to prove they already took the tax money that I owned and the debt was paid in full according to their own records. the don’t care and are now garnishing my pay again, this time for just shy of $10,000 as they have added more late fees to a bill that has already been paid. So in response to your question there is nothing you can do. Once you are in their system you are there for life.

    • What gives a business Large or Small the Rite to destroy your Credit Rating and possibly under some situations cost you tens of thousands of dollars over a 20 to 30 year mortgage on a house or business ?? And is there anything that makes them Sue-Proof for illegitimately damaging your credit rating ? This is a Very Serious question on this subject and it seems there should be several laws protecting the average American in the USA giving the Wronged Credit applicant the ability to strike back against a business granting credit and agencies reporting credit if they are unfair or just sloppy in creating and reporting Credit scores ? And Who are We are asking this / these questions, Who made up what parameters determine if I have a good on Time Payments record etc. and how is it determined Who is allowed to be put in these positions that could be used to Blackmail etc. !!

  • My credit score is in the 5’s, can’t seem to pull it up. I had an annual income of $47,000 but now it’s $18,000 I don’t know how to get out of debt. I have 5 credit cards all maxed out and 2 department store cards which keep incurring late fees, help!

    • I worked hard to pull my credit score up to 686. I just received a huge drop and when I checked it out, an old utility bill was apparently listed as ‘open’ in the amount of $2040. A collection agency listed the bill. However, I entered into a service with Accredited Debt Relief more than a year ago, and they had established a payment plan with this same utility and the paid them 2 installments, the final one due this month. Can I dispute this and have it deleted? It is erroneous.

    • How did you get approved for 5 unsecured credit cards with such a low credit score? You must be old; in your 40’s 50’s and opened up all those credit cards over the course of years.

  • Thank you for sharing these money making tips. You hit it right on the head about, the necessity to seek other avenue to earn extra money. It’s good to know that persons’ as yourself who is willing to share such expertise.

  • I have been asking the same question. I am quite afraid that student loan will impact my credit in a negative way. Thanks for sharing!

  • Hello everyone, I have been repairing credit for over 18 years, there are things that can be done to repair your credit, although it is not as simple and easy as the Lexington Law style companies say it is, 1-3 Americans have negative items on there credit and as of May 2017, credit fraud is at an all time high. There is very little anyone is willing to do that will stop it or remove it from your credit bureaus, I have vast experience in these areas and was a victim of identity fraud, I have sent all the proof in that was requested and some of it has been removed, the biggest issue with this is the government is not holding the credit bureaus to the laws that are in place to stop this or help us get the problem solved, in fact I have spent hours on the phone talkative the credit bureaus and I have gotten so many different stories about how they follow the laws and in fact they do not, by law no one can report a negative item against your credit without first submitting the complete documentation and the fact is none of them do, no proof is required from these collection agencies to report, if they have your name, ss# and birth date that all they are required to have to report against you, this is not the law and the credit bureaus are not following it, I have spent years in finanace and have read the laws front and back, what actually needs to be done is a class action lawsuit against the credit bureaus and this will stop, also just as a side note, the three major credit bureaus are using call centers in other countries that one, do not have a credit scoring process and they are in countries that make up for 58% of credit fraud, we are giving our personal information to people that are in the center of the credit fraud capital and this great government of ours allow them to continue to operate this way , and they wonder why we are in the shape we’re in. It’s sad that any of us have to go through it. I am leading a class action lawsuit against them, if you’re interested in hearing more about this let me know , the more we fight back the better off we will all be, waiting is going to just get you further away from your goal, and allows this to continue.

    • I’m ready to join in the class action suit against these bureaus. It’s time to bring them down to earth and hold them accountable for not following the law.

    • My name is Albert M. Cicarelli I am interested in joining your Class Action Lawsuit. My phone number is ******* and my address is ******

      • It can remain for 7 years after the last contact they had with you. (this is my current understanding of the law but I am not an attorney. Only an Attorney can give you 100% reliable information and I suggest you ask one.)

        All of that said th er are things you can do which could place collectors in a corner favorable to you. If they can not provide proof of the debt with I think 30 days of written request they have to remove your information from credit bureau files. I am sure there a re also other things you can do and for this contact CREDIT SOLUTIONS, this is part of what they do to help you recover.

    • I will join that law suit. I’ve had so many problems.
      Identify stolen for credit cards, Someone went to a dr. To get meds. They had my information.
      Dr. Never asked for ID. I’m done getting ripped off.
      Credit bureau’s don’t care just give you the run around.

    • Where can I sign up for the class action suit also? Please let me know. The higher ups at Equifax knew about the data breach & dumped their stocks before it was announced. That is insider trading. To rectify this, I believe the reporting system must be overhauled completely. Wipe everyone’s credit history clean & reset. There must be much better oversight on these companies. A few years ago, 60 Minutes did a segment on these agencies & you would be outraged if you watch it: https://youtu.be/HdMR2wYNmt4.

    • hi John pluchino:
      my name is ED Alvarez, I been a customer of Lexington law for a few years trying to clean and clear a problem of bankruptcy in 2009 in till today’s there still holding this problem in one of this credit bureaus, but? every month they charge me $ 100.00 dlls. to continue working on this case and I realize this is a waste of time and money and am very upset with this problem, I am going to shut them down immediately, also I would like to enjoy you in this class action lawsuit, please let me know more about this if is possible? and what we can do to all get-together and fight them back, I heard from people that they don’t care about what you say to them in till you take them to court because is all about money and they don’t care what they will lose in court because they collect so much money from all sources of company’s is this true? please let me know what I can do to be part of this and help in this matter, we need to put an end to this corrupted bureaus thank you so much, John:

      • I also used Lexington Law , all they did was collect their monthly fee out of a decimated credit card only used for this purpose a nd now maxed out on card by them , got the same ole letters every month saying they are doing this process to creditors, oh well lesson learned the hard way!!$

    • Hello John. I am disabled and have no credit card, Does that mean I cannot check my credit? Is there a place I can get my credit checked without a credit card? I haven’t checked it in perhaps a decade at least. Curious

    • i was in the mortgage banking industry for years. and saw many credit profiles and heard many horrifying stories. well i have had myself in a traumatic health issues and living terrible credit problems because of this. i would be very interested in improving these credit issues with the credit industries myself. i have paid out the nose and gotten nowhere with credit helpers. sign me up for this class action.

    • I want to know more. Credit is hard work and too easily damaged. My FICO dropped 100 points from recent fraud and proof but still have hard work and a lot of time ahead before recovering.

    • I have been fighting with creditors and the 3 credit bureaus for the past 4 years I feel they should do away with these crooks and come up with a better way to handle this carp! I would like to join the class action suit too!

  • I wish I would have noticed that my new car doesn’t have exterior door locks. Nor a lock on the trunk. So if in the unfortunate event that my key fob takes a poop while I’m in the grocery store, I have no way to enter my car. The key wasn’t designed to get one inside the car.

    • Your vehicle should have a way to enter when your battery is dead. Check your key. Is there a button on it that you can push? A door key should be within the key which comes out of the remote to place in the driver’s door. Ask your local dealer for assistance if you can’t find this.

  • V4’s are so rare compared to transverse inline engines. Are we talking about some vintage, rare cars? Lost me there.
    Buy new and you won’t have these issues.

    • I bought a brand spanking new suv and two months into this expensive investment had to call road side asst. They could not find the problem, so I kept having to get a jump to get it going to drive it back to the dealership so dam embarrasing and it came off the,showroom floor.

  • I’m using Lexington law now and have been for the last 3 months. My credit went from 482 to 626 already and I just qualified for a mortgage. They have already removed 82% of my negative items. Most of them were paid medical collections, paid tax liens and a charged off car repo from 2 years ago. So far I’ve been happy with their service but the seem to work on transunion and equifax first because I have not seen anything removed from experian yet. I’m going to contact them today and find out why.

  • Very unique suggestions for safeguarding from identity theft Eric.
    I wish there should be a two factor authentication while making purchases or wherever there is a debit of money from account, just like in online world.

  • I ran a CA for years, and I want to caution readers about “Zombie” collection agencies that prey upon unsuspecting debtors. These people chase old, time-barred debts and try too get people to pay on them. What’s relevant here is that they will sometimes make unlawful inquiries when there is no “permissible purpose.” When you check your credit, make sure that only legitimate inquiries are listed in your file(s). Even “soft” inqs should be challenged, if done by a company with no legitimate purpose. This type of invasiveness can be especially troublesome if your score is on the bubble, say at around 700.

  • Hello, I am currently in a debt consolidation program where my one loan is being paid monthly just not the full amount that is due. The creditor is saying they will sue me and have been calling everyday all day long. To now they have showed up at my house demanding money! My question is can they still sue me if I am paying monthly? Just not the full amount? They are taking the money I am giving them. They just keep saying I’m behind and they will sue and then garnish my wages! This is all new to me and I don’t quite understand it all. Thanks for the help.

  • I will continue to follow all of the processes. My score has raised from 482 to 644. Want to have the perfect score.

  • I have been following the advice given. I have come from a 482 to 644. I will work to get my score to the 800. Key is staying focus.

  • The advice is not informing you to do those things, rather the opposite. If anyone thinks otherwise, you are not reading through the details.

  • This is the dumbest thing I have ever seen on the topic. Basically it says be even more irresponsible and screw over your friends and family

  • Rebecca
    You look like you are about 15 years old. BTW what is your credit score if you do not mind me asking?

  • There were two times in which I had a “pay-to-delete” work. The first was when the debt was still held by the original creditors collection department and had not be sent to a separate collection agency. The second was after being sued for medical bills by a third party collection agency. Since I actually entered a response to the court, we were ordered to complete arbitration. During arbitration I was prepared. Yes, I owed the debt (typical emergency room admittance while I had no insurance). The collection agency filed for way more than what was reported by the “big 3”. It is important to note that the collection agency did not file for recovery of legal bills. I was ready to let a judge decide and not come to an agreement. However, I did concede to pay only what was reported by the credit agencies, and not a penny more. Therefore, it became a part of a stipulated agreement binding to both parties, that if I paid the debt on a very reasonable schedule, the collection agency would remove their entries. I did. They did. They were removed almost immediately. Hope this helps someone.

    • Wanted to add – that it was important to note that the collection agency had not filed for recovery of legal bills, and that their attorney was the one to participate in arbitration. He saw I was willing to see the case to trial, and that the preparation I had done showed him that there was a STRONG possibility I would prevail at trial. No money for his fee, less than 50% chance of winning, he advised the collection agency to agree to the court enforced stipulated agreement. They made a good call.

  • I found it interesting that I just had five collection entries removed for medical bills. These were approaching the 5 1/2 year mark. I had tried and tried to obtain “balance forgiveness” as a “charity write off (as I was unemployed, homeless and really pretty much indigent) with the credit agency the physicians practice had sent the debt to.

    ALL of the other care provider including the hospital had done just that – “charity write off”, but not this one. As a matter of fact, my hospital bill alone approached $190,000.00! I decided to contact the physicians practice one more time. I contacted the head of the business office and described the situation.
    He was understanding, but said that there policy was to not write this off. EVERY OTHER provider had I emphasized. Well, we hung up and after about 2 hours he called me back, and said they had directed the credit agency to remove the entries. Seems as if the new “corporate owner” of the practice had a different policy than the prior “corporate owner” and it was – “if the hospital writes it off so will we”. Wahoo!

    Now the 5 entries are gone and I now have zero collections. My credit score went up a WHOPPING 20 points!WTF. It appears that late payments even if only thirty days, in the last 24 months has a greater negative impact than collections. Of even greater impact is your credit utilization percentage. Mine is outrageous as I use 99% of my huge $6,000.00 aggregate credit limit on 7 cards.
    Paying down my utilization to 20% increases my score by 80 points ( according to the simulators on credit sites). Paying it down to 0% only increases it by 45 points.
    30 % = 75 points. The simulators seem to have a sweet spot at 20% not 0%. Just say’in.

    • The problem with if you owe that much for long period of time and you pay off lump sums, the card issuer often decreases available credit and you end up just as bad score because you still have similar utilization percentage. This happened to me.

  • I keep being turned down for credit, and the reason given is (1) too many inquiries: I have not authorized ANY inquiries, and do not recognize the companies listed in my reports from equifax et al. and (2) too high ratio of credit usage: because I hold a courtesy card on my daughters department store account and despite the fact that she is never late with payments. It was opened over a year when she became ill and requested the courtesy card… and I do not charge against it. How unfair is this!

  • Unfortunately, I fell victim to 8 of the 11 (if you count only paying the minimum).
    4 years ago my credit score was 810, yep that’s correct, 810.
    Then I met this great guy, fell in love, got engaged and that’s when the downfall started. I fell victim to his trap, he had me where he wanted me… looking toward our future together. So we’re engaged and I’m thinking “I need to start looking at how we can build our future together, make more money, save money, etc.”
    You can see where I’m going with this….
    In the long run none of the things I was trying to do benefited me at all. He had an agenda, take me for whatever he could get and then get out, of course taking everything with him. So I was left with all the bills and he helped pay them for a couple months then decided that he didn’t owe me anything.
    So now I am in the process of filing for bankruptcy. I have looked at all the options, talked to so many people and even though I hate the idea, filing bankruptcy is the best option for me.
    So my advice would be; make sure you know what you’re getting in to; don’t change the way that you are doing things to help anyone else (YES, even if it is your significant other); listen to your gut (and the little guy on your shoulder); stay strong in your position (if they really love you, they won’t push the issue).
    Thanks for taking the time to read this…. I hope that it will help someone out there!!
    P.S. Since leaving me he has had everything that I helped him obtain repossessed. And guess what…. It’s my fault!! Ha…. I believe it’s Karma!!

    • How did you cause his items he bought with your money to be repossessed ? After all he got your money out of the credit cards and spent it, How would you have any control over any more money he still owed on the items he bought ? Strangely enough, I as a 70 year old man, had a woman about 55 literally pick me up in the waiting room of my primary care Doctor’s office about ten months ago, It only took about three to four weeks to find out she was a con woman ! I told here on the first day, My finances were extremely limited but she said no problem she would pay for everything then over the next couple weeks she took me out to dinner twice and even a movie, But then came the immediate emergency loans she needed for $300 to replace her cell phone and $5,000 to pay off the rest of an $80,000 very specialized sewing machine she claimed she used in her business to make wedding dresses. She got nothing out of me, I told her I had just enough income to pay my basic living expenses and no more, Which was true. I assume her taking me out to places was to get me to feel indebted to her ? But I wasn’t born yesterday, We all need to be careful in these areas of the Heart (If it even gets to that point ?) Watch out for Gina ! She was / maybe still is here in Miami, Fl. !

  • Great article I’ve done a few of these but worked out in the end. Debt consolidation be careful there are bad sharks out there and most take their payment 1st. I was lucky and found an exception that got paid after the creditor on commission but the IRS fees are no joke every dime u save is taxable. My credit score bounced back quickly surprised some people but I learned during 2 years existing cards cut limits almost to zero do don’t plan on having credit for a

    401k loans need to be paid back within weeks if you change ir lose your job or it’s an early withdrawal with penalties what a cruel IRS joke.

  • I read above where you stated, “rate shopping isn’t detrimental to your score if done within a 45 day period. Instead, all hard pulls for this time frame count as a single inquiry.” Well, that is true with trans union, but equifax, I guess, did not receive your memo, because each of my inquiries when shopping for a car I eventually purchased, was counted as separate hard pulls. I am very upset about this. I sent them a letter concerning the matter and the outcome was, no change. My hard pulls with equifax are currently in the red! My score with equifax is currently a low 775 while trans union is 790.

    • Yes, each hard pull will show up but supposedly it won’t effect your score if it’s within 45 days. This is actually crap because the next person that looks at your credit will see all the hard pulls and doesn’t care if it’s for a vehicle only that you had it pulled.

      • My dealership played me when I was purchasing a car. I told them I didn’t want to have my credit run, all over town. They told me it would count as only 1 hard inquiry. They lied. I looked at my report soon after, and it shows that I have 5 separate inquiries from different banks and credit unions, and the bureaus refuse to remove them. Was told it would be 2 years before they drop off. This is a BS rule.

  • AGREE! The STRIPE worked instantly, but the CHIP takes more time. Also, you lose a lot of privacy with the CHIP, in fact, electronics can follow you around the store and record how long you spend in any area. If you are a shoplifter, it’ll be waiting for you next time you enter the store!!

  • Overall it works fine, but I have had trouble with it reading at certain terminals. Not sure if we are ready to phase out the stripes yet; not until the chips work more consistently.

  • I believe having a great credit score is necessary to buying a home with a great interest rate, but I don’t believe in using credit cards for daily living expenses. I prefer cash, it helps me stay on track with my budget. I have 3 credit cards with total credit lines of 44,000. I have one small balance left on my discover card, but once it’s paid off I will only use credit cards once a year to keep them open. I have a MMA for my emergency savings with a balance of $2500, and I continue to contribute monthly until I reach my goal of $14,000, which I can use in emergencies. I don’t think the rewards are that great to be using credit cards for daily expenses. If I want to go on vacation or fly I save my money and pay cash!!! These practices have been doing me good as all my scores are above 720 and continue to rise as I pay down revolving credit card debt. My mission is to be debt free and NEVER be in debt again!

  • I were using you guys and for all most 6 month you guys have my case nothing happened am just paying so much money and nothing why.

      • I used Lexington Law some years ago. They were advertising they could remove BKs so I fell for it. Finally stopped paying them after 8 months. They removed old information that anyone can do on their own.

        • Lexington Law Firm did nothing for me but charge a monthly fee which they claimed has to be debited from a checking or savings account. I do not recommend them, in fact I recommend staying away from them.

  • I were using you guys and for all most 6 month you guys have my case nothing happened am just paying so much money and nothing why.

  • Love to read articles about credit scores. I am one trying to climb to the perfect 800, but like you said, it takes time. I look at the climb as a game where I’m playing against a low score. I’m going to win even if it take me a little longer to get that perfect 800. I will get there. Thank you for all your advice.

  • Nothing is ever completely erased, nor does it ever “fall off.” As manager for a major consumer finance company for more than 25 years, I often wondered why so many people even bothered to file bankruptcy at all. If you don’t pay off your debts, they remain on file for a total of 7-1/2 years. Bankruptcy–10 years. And for large purchases over $125,000 like homes, life insurance policies, and even high-paying jobs (with an offer of $75,000 or more), the credit reporting agencies may continue to report, even after the 7-year window. If the CRAs were lawfully permitted to report otherwise, they would.

  • I made the mistake of cosigning a student loan. I talked Sally Mae down from $23,000 owed to $8,500 of which I paid on a credit card. Now, the difference (between 8500 & 23,000) is on my credit report as a write-off, thus destroying what credit I have. Is there any way, other than waiting the time they have to keep it on my report, to get it off my report. It is satisfied, at lest that is what this predator said.

    • No to the best of my knowledge no, but you can go back and call your original credit or and ask if you pay it in full will they pull it from your report, s other than that sorry but the answer is no! You’ll just have to wait the seven years how do I know this my brother went through something earilie.simillar!

  • I had a Macy’s card that I very seldom used. Then I used it for the amount of $11.00 and I forgot about it for 4 months. They only contact me recently after they closed my account and reported it to the credit bureau. I called them to reverse it but they declined. What can I do. This decreased my credit by a 100 points for 11 dollars!!!

    • call then talk to a live person and tell them that you did have a balance left but would love to do business with them in the future if it can be cleared up

  • How long can a judgement stay on your credit? I hear each state is different. What about Ohio and this is a credit card debt judgement.

    • Every creditor has a resolution department. Call the creditor ask for their phone number, and fax. Then after you call them keep bugging them…theu will block you soon after that, if they’re not going to help ya. The keep faxing them every month a few times. Sooner or later they will delete it, but not answer it directly…worked for me. I fix credit reports

  • I live very carefully on $1800/month, am a divorced woman, 68, and disabled, I have no credit cards. no investments, no real estate etc. and my credit score is nothing to brag about which is why I no longer use credit. My problem is that the most modest rented apartment I can find is nearly half of my gross income and I don’t know where I could find enough money to move if there is any place left where I could live more comfortably or at least tread water on my modest income. Do you have any suggestions?

    • Don’t know if this suits your interests but many people who need live in personal care would enjoy opening up space in their home for you to live and pay for your time
      You might have to store your things with trusted other person or pay for part of a basement.
      Or you could find a space and interview possible houseshare persons…do you have a local elderservices do police background check and do diligence of course, In my state you can hire a personal aid if you are disabled and there are classes to give you independence and agency to set wages make personnel records set aside the taxes and create a direct deposit to your checking acct for personal care wages….do you know anyone who could live in and be your aid…help w bathing dressing, errands and cooking light housekeeping? Just a thought…

    • All major cities have rental assistance programs and with what little youve posted here you would easily qualify. Including in that use every place you can find locally for food pantries.

  • Ive been paying on my house for ten yrs. Little did i know because it was in house finance they dont report this to credit beauru. What can i do? I have no credit history since my husband died a yr after purchase. Wr were lied to at sale of home that in two yrs of paying we would have good credit

    • You can ask your lender to report to all 3 credit repositories. Hopefully they will agree to do so. If not, call Equifax and ask them how you can report it. Good luck.

    • One more thing. I have been told by a reliable source that they used a service called Self Lender and it raised their credit score quite a bit after making 12 consecutive on time monthly payments. You may want to investigate their service if you are wanting to build your scores.

  • have 2/3 cards I would like to transfer to a no/low interest card. unfortunately I cannot get any company to give me a large enough balance to transfer them. their reasoning is that I already have too much debt load…

    • Pay then in small chucks up to what you are allowed at the maximum amount then do another balance transfer. Wash, Rinse, Repeat.

  • Good article. Bad examples. Neither Detroit nor Honolulu is at the top of the list for home seekers. Florida is, and so are other States and regions in a State. The article should have focused on the areas that would have the highest impact.

  • Buying a timeshare. Yearly maintenance fees keep going up and I do not even use timeshare. Sales pitch – was told I would save money on vacations. Also that I could go on Getaway trips at a big discount. Stopped paying yearly fees. Did not ruin my credit. Don’t buy Westgate timeshares!!!

  • I’m on a disability and am not fit for employment at this time. I was late off because of seasonal employment. I owe money on a credit card which I payed frequently when I had solid employment. Today I have received 7 calls. I have said I will be when I have employment no problem still she continues to harass me. Is it even legal to call 4 times in less then an hour?

  • I have 13, 3 are at 75% and 3 are at 30%, the other 7 are $0.00. I am working the “pay all extra money on the highest APR % til paid down to 30% while making regular minimum and then on to the next one. I have seen an increase in my score along with lower total finance charges applied every month. Also Automatic increases are helping the % utilization lower as my available credit goes up. Thanks for all the advice and daily emails, as it keeps me on top of everything

  • I have 10 credit cards. all of them at $1000 limit. does this mean I should use only 10% of the grand total ($10,000), or 10% from each card? Thanks

    • Both effect your score, say you have only one card maxed out and nothing on the others, it will hurt your score

    • I am reasonably sure from Credit Karma’s display of all my 7 cards that it is 10% of the total, Sign up with Credit Karma they give you an unbelievable amount of information on your accounts for FREE ! I do Not work for them ! I wish I worked for Somebody (;^)) Where did all the jobs go ? Especially for Americans !!

  • My question: How much is a mortgage or loan sold for compared to face value. Eg, a $70 thousand mortgage. How much would it sell for? Bank to Bank…

  • Good advice! I was once in a one-car accident back in 2005 when I took defensive measures to avoid crashing into another driver in a rain-drenched roadway. My vehicle had hit a commercial fence then spun around. The damage was extensive to both my vehicle and the other’s property. An accommodating passerby stopped to offer assistance, stating she had seen the whole thing. I was still dazed and didn’t think to get her name. Minutes later, a community service sheriff’s assistant arrived, and cited me for improper use of a motor vehicle. When I challenged his rush-to-judgment summarization, he asked about witnesses. None, because the woman had already left the scene. Had I gotten her name and contact number, I might have been able to later quash the officer’s invalid citation. GET NAMES!

  • Vast Platinum should be listed as the #1 card to avoid AT ALL COSTS. And there are an abundance of costs. Vast wants to help you spend what they already know you don’t have: “Disposable Income.”

    That card should come with an announcement which reads: “Are you really this desperate? Seriously? We are so thrilled that there are consumers like you!”

  • I have a lot of debt with hospital bills and credit. My income is half of what it used to be as I went through divorce. I think I am going to have to do Chapter 7. The debt is overwhelming and stressful! I can file on my own? And does it cost anything to file? I talked to a lawyer once and it could cost up to $1500.

  • Thank You So Much For This enlightening EM…I just have to decide which C.C. will be a good fit… Will be checking my Credit Score w/Credit Karma,or if you have another Agency I should use,I would Appreciate which one…No Bankruptcies no judgements.. I do not have any CC .Should be a Clean report,but low…Again,Thank You…

  • Do these same concepts apply to student loan collections that have been reaged and reported incorectly leaving me with 13 negatives on my credit and is it worth paying a company to have them removed and can they be? They have been bounced around to so many companies i dont have all the paperwork to support all of inaccuracies.

  • I just can’t thank you guys enough for all the helpful information. I do stay on top of my credit with credit monitoring. My scores are now 720 to 770 and going for 800 + Thank you

  • Thank you Mike Roberts for addressing the rude and ignorant comments that were made towards Rebecca Lake. They were clearly foolish. Sometimes people get angry and bitter when they see something that they could never have! Grow up!

  • You’re right Allison,
    Jesse overlooked a major factor. She did not have a qualifying credit score to be approved at the adverised 1.99% special rate, and I”m sure that was spelled out in the advertisement. So please don’t use derogatory terms as “tricked”, or say she got,”stuck” with 12.99%. Jesse had the right to refuse the rate. Jesse could,have negotiated or walked out. You shouldn’t villify an entire industry. No one “held a gun” to Jesse’s head. I’m sure that there are people in your industry of personal financial planners that may not always have their clients best interest at heart, and don’t they always offer added products that they encourage you to buy or invest in? Other than those remarks, your article has merit and encourages the use of common sense.

    • Joseph,
      You are 100% correct; however, unless the author uses gross hyperbole and wild accusations to cover their own embarrassment no one will pay attention. Caveat Emptor!

  • Paying off balance on my 2 cards with Capital One worked well with Trans Union and Equifax – score went back up over 46 points in 1 month – but my score with Experian stays almost 100 points below the other two. Anybody knows how to fix it?

    • That’s interesting. Each credit bureau is a proprietary algorithm. Experian’s seems to value paying off cards less than the other two if all things remain equal. You might want to try another tactic to boost that score. What was the impact on your FICO score? That’s the one you should care about more than the others. 90% of all lenders use FICO, not the other three’s scores.

  • Hello,my name is Eric and concerned about my score its all bad and I’ve never had a credit card one thing I’ve had was a phone and bill from version. That was 6 years ago and just recently applied at pep boys (on good).They haven’t updated my score.And can get them to I give my info and they don’t believe me. Help Thankyou Eric Knight

  • Is it true that as of July 2017 the credit bureaus must remove all civil judgments and tax liens from one’s credit report? I heard this on the news that new law has been passed.

    • Yes, it is true. I have two judgements that will “naturally” be removed in mid-2018, but I called 2 of the 3 major credit bureaus, and they basically said that legal teams were working on the details and the judgements should automatically be removed by the agencies. Bear in mind, they retain records for hundreds of millions of Americans, and they all won’t be taken care of in one month. I’ll stay on them until mine are cleared and I suggest you do the same. Good luck!

  • You know – if there was enough public outcry about the horribly inconsistent world of credit reporting and EVERY SINGLE TIME that errors are made by these credit bureaus they were held responsible for the costs pain and suffering experienced by the consumer; then, and only then would we (the people) start to actually see a fair, reasonable, and equitable credit system! As it stands right now – THERE IS no continuity whatsoever! The credit reporting bureaus are NEVER held responsible or accountable for errors on their part. In my case, I was deployed and a charge came in. I was out of the country – serving this country and a bill came in that I was never aware of. Although, I had passed along my new contact information – the company never got it forwarded on to their billing dept. So, bills that went out got returned as un-deliverable. It then have a lean placed against me and even though all of this could be proven and I am supposed to be protected under the ‘Service Members Civil Relief Act’? I was not! ALL of this because Credit Reporting Agencies are allowed to act with impunity. So…., if Americans are tired of them – then Americans have to take action and go thru their representatives and perhaps then and only then would this ridiculously inept system be fixed!

  • Thanks for sharing your insights. It is never a good thing to undergo repossession, whichever it is. I was closed to having my house repossessed, good thing I found options to recover.

  • Most people don’t pay themselves first which is a great place to start revamping your finances. Cutting your cable bill if you have high speed internet is another way to save at least $100 per month if not more.

    • I completely agree Cassie! I cut my cable more than five years ago and have been saving $70 per month ever since. I recently did the math and found I’ve saved thousands of dollars!

  • I’ve been reading posts from thecreditsolutionprogram for a year now. This is my first time submitting a comment. Not only is the article funny and well written, the tips are helpful. Saving is hard! Rebecca summarizes what’s important to consider and offers practical strategies anyone can use to set and meet goals. Thanks Rebecca!

  • First I’ll grant you I did not learn anything from the article either,and your entitled to your opinion.However Keith ,Wow. So I guess your a writer/producer whatever don’t care. That does not give you the right to put anyone down especially with your crazy judgement of someone young and good looking can have no experience or valued input assumption. From her twitter I am assuming shes a mom could be single and struggling and jump at chance to write anything. Point is you don’t know. Myself I trust someone closer to my age and maybe some of the same experiences than some rich old fart. I’m 34, I have 3 kids,I consider myself attractive, sure as hell have had to work hard for every penny and been through much financial struggle. I think you need to learn to not judge a book by its cover and that no one could get anything out of the article.

  • why in the world, would they take a beautiful blond haired thirty year old woman, and have her write about money? I admit as a professional writer myself, that you can write, but about credit? The dichotomy is silly. Your not old enough to know much about your topic. But you submitted and got a job that got posted on Mike Roberts site. May I respectfully ask, what makes you an expert? Your so young. I do give you one thing, and that is, I like the style by which you conjugate and I admit it fooled me, until they published the author. But now that I can see what you look like, I feel scammed. Your too young to be writing as an expert on bad credit. I read Mike because , like you, am interested in journalism. But to publish you on anything of this serious nature is just a bad choice. I might feel different if you were not so attractive…or if you had “some” life experience to draw from. But your article, which engaging …is blown out the window by using your picture Rebecca, so those of us that read, wanna read good writing ….and that you can do. But is it not fair, to write about things of which skew more in the genre of a millennial? All I am saying is that writing about Money, when you have never made any real money, or do Not have a half a million, which you don’t twerk the whole ideology of being a finance writer.

    In closing, I admit, you had me fooled and I didn’t learn anything I didn’t know, but the reason is because as a freelancer, you got a job and got published. But it would make sense to me, that although your young or this is an old picture, would you not want to write on something that suited your demographic?

    Ya know, pop culture, or men or anything that makes sense given your appearance? The truth is, a woman that looks like this Has no financial problems and never will…which makes reading your work a mockery.

    Your a lovely young woman. Would you rather be writing about something that fit your look?

    • You’re… as in you’re a fucking tool. Mister I am a writer and think I can be judgmental of anyone who does the same. What a joke.

    • Give her some slack. At least she’s trying. And, I’m sure she’ll get better as she posts more. By the way, you can’t be a professional writer if you don’t know the difference between your and you’re. She outperformed you, Mr. Professional Writer, in that department.

    • Keith, I was first inclined to remove your comment because of the personal attack, but I think it’s better left for everyone to see. I really don’t know where to start… first, you don’t need to be an “expert” to write about debt – many people over the age of 20 have some experience that can help others. You also most definitely do not need to have a healthy retirement account to write about debt and credit. I know I didn’t when I started this site. Finally, the sexist slant to your comment is bizarre… You seem to be implying that a grown adult woman is only suited for writing about pillow fights, boy crushes, and makeup tips. Really? Have you never met a woman that has to pay bills? Support a family? Think about and plan out her finances? Somehow I doubt that.

    • Nice article!

      I enjoyed how you have obviously risen above your status by writing on topics that don’t fit your look. As we all know, a person’s character, intelligence, life experience, education, and personal life struggles are easily discernible by viewing even a single photograph. I therefore commend you on your bravery and ambition! It must have been difficult – where would you even begin??? I mean, obviously a man helped you think up this idea (I hope you made him a nice sandwich as a thank you) but even so, I can’t imagine how strenuous this must have been for your poor little female brain! **sigh, eye roll, sigh**

      As one attractive female to another – keep on kickin’ ass! Men like Keith will always try to bring us down, but they are nothing. In fact, it is the knowledge that they are nothing that leads them to sit behind their computers and write such ill informed, ill written drivel. You’re doing great work and I look forward to seeing more from you!

  • Co-signing is like giving your life to another being to protect. If they pay on time and in full you are ok, but, if they do the thing most of them do … you are screwed.

    Having access to your social security number from the contract you signed … they can even open other credit. NEVER co-sign … for anybody. If you can lend them the money to make the purchase … have them sign a note with reasonable interest so you can take a loss on your tax return if they won’t pay.

  • My worst decision was going to Freedom Debt Relief. Besides making my problem worst. They took more of my funds for themselves instead of giving to creditors. I cancelled and working with creditors direct.

    • I too went to Freedom….biggest credit mistake I ever made. They told me they would negotiate my debt down with the creditor, meanwhile while Freedom was taking my monthly payments, my creditor was ignoring them and suing me. Not until I received a summons on my front door did I know what was going on. When I contacted my creditor and brought up Freedom, they told me basically “Yeah, we don’t work with those organizations; you’re the one who owes us the money”. I was floored, and the creditor said the door for negotiations had closed. I was sued, lost and received a judgement. To add insult to injury, I had to battle with Freedom to get my money back from them…thanks for nothing Freedom!!

      • Freedom Debt relief sold me on consolidating my credit cards (3cards) with Chase Bank! After a divorce it seems like they knew I was left with a $12.000 debt ! They debited my checking account for 8 month’s before Chase contacted me and said that I’d been scammed. I was so mad that I was about to fly out to Tempe AZ. and open a can of whoopass on a guy named Adam. Chase Told me if I’d just called them they would work with me. I’m still looking forward to the trip to Tempe in the near future. I have not got a dime from them. I hope someone forward this to them.

  • I am concerned that the new method of scoring credit, soon to be implemented by the 3 bureaus, will reduce the value of my credit score. By value I mean my scores worth to a lender.

    When borrowers are given relief from things impacting their credit scores like tax liens and others (I forgot the list of things there are several) by removing them as a condition of a credit score it will impact my hard earned credit scores value. A problem I see no way around unless I am given a higher score for not having any of those things on my credit report to begin with. The problem of boosting my score to allow it to hold its value actually negates what the bureaus are attempting to accomplish and die to this I do not expect to see an increase in the value of my score in the future but I do see a decline in its value.

    I have a very high credit score, nearly exceptional FICO 8 score, that will now be combined with others who presently have only a good credit score using FICO-8 principals. Once this new method of scoring is implemented those with presently considered derogatory information will see some of that information no longer affect their credit scores resulting in higher scores for the group.

    Good for some wanting to look better than they deserve but BAD, BAD, BAD for others because we have nothing to gain, no relief from with this new scoring method designed to make the borderline appear much better. I FIRMLY BELIEVE THOSE WHO ARE NOT AIDED BY THE NEW METHOD OF SCORING SHOULD HAVE THIS REFELECTED IN THEIR EXCEPTIONAL AND NEAR EXCEPTIONAL CREDIT SCORES. Otherwise it will be more unfair for us having those great scores than it presently is for those whose score is diminished by a Tax Lien and other reported items today. Has the lending industry again lost brain cells, as during the housing crisis, or is this actually a good marketing decision. I vote for the prior loss of cells.

    • Contact the credit reporting agencies and present this to them. Because of your great scores, they may be willing to do just that???!!!!

    • You have NOT demonstrated how relief for one group translate into a burden for you and others. can you do that? Show me how removing a tax lien from person A reduces your credit score.

      • I understand how this person stated their concerns BUT READING BETWEEN THE LINES let me offer the following commentary.

        Credit scores for many will improve as a result of the exclusions from scoring to come. I believe what this person is suggesting is their exceptional credit score will be viewed by lenders as less exceptional t under the new rules than it has been viewed prior to the new rules.

        Given the fear lendors may tighten lending to many with scores that had been considered as little risk is not without merit. Certainly if I were a lender I would consider the impact on information I gleam from our credit scoring system after rule implementation. Without surprise many may find loans they qualified for prior to the new rules have become more expensive after rule implementation by way of interest alone. To me this is a VERY VALID CONCERN.

        On the other hand noting accounts were not aided in scoring by the new rule implementation would have the effect of nullifying the purpose of the rule change. Under this scenario a lendor looking at a person who was helped by the rules could easily see they were helped which would in essence put them back to the same position they assumed under the old rules.

        Therefore it seems the only equitable method to discern the consumers not having received aid from the rules would be to raise their score by an equitable amount to show they are in fact better credit risk. Unfortunately this method of resolution also would carry the negative benefit of somewhat negating the purpose of the rule change.

        Bottom line, I see this rule implementation as needed but also presenting a catch 22 for borrowers who received no benefit from this new way of scoring borrowing expectations.

        • This will not affect someone with a good credit score but will give those that suffered in the past with derogatory credit items to get another shot to get back in the game. There’s nothing wrong with that though some see it as; “why did I work so hard to keep my score high when others screwed up and can now be on equal ground?” It’s like a ball player that strikes out 4 times in the game and gets booed and then in the last inning hits the game winning home run. Everyone deserves a second chance.

  • I’m ready to buy a home, and my score is at a 649, 643, and a 635, however, I have a old child-support from the 80s on my report. I’ve already cleared the funds owe to the State, yet there’s a balance which is owed to the other parent who’s welling to wave her part. We’ve gone to court before to wave the balance, however, she lives out of state and was late getting to court and the judge throw out and said we have to start all over again which took several months to get to that point. Is there any way around this? My bank said that’s the hold up.

    • Antonio, repeatedly dispute that line item monthly, with each credit bureau until it disappears. It will, if you will… same date every month

  • Thanks very much, Jason. I find your precautions very true and apt. I note the very things you mentioned, fees, fees, fees, and high-interest rates on cards for people like me, with less than perfect credit. You’re providing a tremendous service for unsophisticated and/or desperate people.

  • How many times can a creditor put the same collection on and off your credit. I have a collection agency after me for $106.00, and in less then one year they have put it on my report 3 times and have taken it off my report twice. It is currently sitting on all my reports. Everytime they put it on my score drops significantly and when they take it off, I do not see the same significant rise in my score. Is there a law that bars them from doing this to me? It has cost me more then 100 points on my credit score.

  • Debby
    March 14 2017
    The way I got out of debt was to list all my bills then put the interest I was paying next to each of them. Then I changed the list to the highest interest to the lowest. I only paid the minimum amount on all the bills starting with the second highest. I then called all my credit cards and asked them if they could lower my APR that I could not make the full payment, or ask them if they have a hardship program for those that have taken a cut in pay. You would be surprised, I got 5 out of 6 of my cards reduced down to 7.4%. Some of them were as high as 35.99%. Bryant Card Services gave me 6 months with 0 interest. I had to pay at least $30.00 a month by the due date and could not use the card during the 6 months. So I rearranged my list and put Bryant 1st, I was paying 35.99% on it. After I paid it off I starting working on the bill with the highest interest. By the time I had paid it off the smaller bills with lower interest were paid off. I had hospital bills and a Ashley Furniture bill that had no interest. I paid the minimum on the Ashley bill and sent the hospital $10.00 per month. Do a budget and get rid of any bills you do not need. You don’t need to eat out, you can take your lunch to work, you can use a kitchen hand towel instead of paper towels, you can turn off your hot water heater before you go to work then turn it on when you get home it will save you up to $30.00 a month. Make a list of all the money you spend in a month and then get rid of all the little extras you spend. I was spending over $300.00 a month on things I could do without. Shop around for car insurance and homeowners. I found Allstate had the cheapest homeowners and State Farm had the cheapest rates for car insurance. Between the two of them I saved $1056.00 a year. I should know how to get out of debt. I had to retire due to a brain disease in 2000. I was making $60,000.00 a year with a $500.00 car allowance per month and year end bonus. It was a wake up call when I had to go to $1100.00 Social Security. I lost all my investments after 911. So if I can do it you can too. Good Luck

    • I agree with your system of listing the ones with the highest interest rates. because I don’t have some of the debts listed in the article like car title Loans or payday loans which can have the highest interest rates. They will get you into serious financial trouble!!! i had not thought about calling the credit card companies and asking them to lower my APR but definitely will do that. I didn’t even know they would did that. Thanks

    • Hey thanks for the information I have been trying to get a handle on my credit for a while but I’m going to use this to my advantage.

  • Alice, you are almost there. finish paying down the lein and in three months you should be good to get that refinance, A credit union collateral loan would be a excellent trial, you be doing the same payments but to yourself for a loan you would have access to at full value. Go to a Credit union and open a collateral account.

  • Bill Burt, I have a solution for your insolvency, It will take some time but it will save you agony and relieve you of ever having that much debt again. If you want to solve your problem send me an email. George: I am sure I will be able to help you.

  • A fact I learned about- Re-establishing credit and getting a car loan at the same time. Driving a car of my qualification. You want to know how it was done?

    • I had to go chapter 7 due to my daughter being born with 7 heart defects! My 2 million dollar major medical health insurance was used within 2 years!!! Also my ex wife did my income taxes and truly did a number on me! I got a certified letter from the IRS 7 years later stating that I owed $68.800 dollars on a $9200 Dollar Federal income tax! So I had no choice but to go chapter 7!!!! Everyone said but you can’t go Bankrupt on Federal income Tax???
      Yes you can if you are current on the past 2 years!! So my awesome Attorney did my Bankruptcy and I used my
      Brother to obtain credit cards as an authorized user thanks to credit Solution program!! And within 15 months I now am So Grateful to now have a 722; 738; and a 742
      FICO SCORE!! My Attorney got everything erased accept my chapter 7 and I now have my own credit cards and I am now approved on my New Home at 3.5% APR 30 year fixed rate! Thanks to being with Credit Solutions Program for 3 1/2 years that I knew the HOW AND WHAT TO EXPECT ON REBUILDING MY CREDIT!!!

  • I am 67 years old and got a part-time job as a school referee in volleyball (season lasts Aug-Oct). I made $1500 first year and $2000 second year after expenses. You get more assignments as you get experience and seniority. Also some people ref all school year in basketball, softball/baseball. Larger cities have select teams that play all year round.

  • When I first made my CK acct,I had quite a few derogatory accts. All were medical,some were older than 7 years. One day I log into CK and damn near all of them disappeared. A couple was left on though. So I noticed that every time I pay one off a new one pops up. Has anyone ever had this happen? It’s cray cray.

    • Yes, because someone else has bought the debt and when you thought it would disappear from the report it did NOT.

  • If you use a fair amount of data, Ting is not the way to go – it can get very expensive. I found that TMobile Simply Prepaid up to 10 GB for $60/month is least expensive, but it still slows down since I stream a lot, even when I use their Binge On service.

  • Hi I have been with ATT for years…it is outrageous how much they charge am paying $140 each month & have iPhone 7+ ….any suggestions on shall I change service , carrier or ? Thank you bunch

  • So I am just what your thoughts are on extended warranty from the dealership, I have a 2014 1500 Chevrolet Silverado getting close to the 36000 miles of the warranty original. Bought new 5year/60000 miles supposed to cover all Power train and and other parts electric parts radiator window motors, computers and other things for around 2000.

    • My extended was $1,200. That’s bumper to bumper, zero deductible, and a rental up to $36 day.

      It would extend me from 60,00 to 100,000. Or, an additional 40,000 miles.

      You’re talking about 24,000 more miles for $2 grand. For me? I’d say “no, thanks”

    • Yes!! I guess loyalty doesn’t mean anything anymore. I’m about ready to dump them this next go around if I don’t get some major satisfaction.

  • When I received my tax refund,i always consider,as a homeowner,how to apply it to the safety and/or upkeep of my home.On the other hand,i have increased my charitable donations each year for the past several years.I have been blessed and I realize that you have to help those less fortunate than you.I definitely agree with paying those high interest credit cards as soon as possible.When you get them down.Remember,don’t run them back again and have the same situation occur again.

  • My only income is Social security. I cannot work due to a disability. Can my debtors take me to court to sue me for the balance owed?

  • I found your ins. points to the point and good advice. most of which I have been doing for years. here is what happened to me. at a stop sign near an industrial part of town I was to a complete stop and two semi trucks w/a 55 foot trailers were cutting the corner dangerously close, after the first barley miss I tried to ease backward to avoid the possibility of a collision. doing so lightly bumped the car behind me. no damage but, they collected 1400.00 dollars in damage. next ins. prem. went up 200.00 dollars a year. my co. would not listen to my reason of trying to save a 57,000.00 truck and showed no mercy. my record was never an accident claim in my 70 years of driving. your comment please/

  • I have no interest in accommodating an underwriter’s whimsy.
    The insurance agent is typically your friend , because they hear from you when you are unhappy … the underlying insurance company first priority is their profit. ..and they have lots of profit. They are the casino .. you are the patron.. the odds are always on the casino’s side … so … shop for the best deal you can twice a year. Select high deductibles, then apply for a no fee credit card. Put the card in your dresser drawer and don’t use it. With the high deductibles your outlay will be much lower. ..but you are covered by the ccard. The same ccard technique can allow higher medical deductibles too.
    After teh car is paid for and is over 10 years old .. drop everything but the liability. sequester the monthly savings toward the down payment on your next car.

  • Wrong….
    If you have accumulated wealth and assets, opt for higher liability coverage and even a liability umbrella policy to protect those assets in case of a lawsuit. Taking higher deductibles for comprehensive and collision will save more money than lowering vital liability coverage in most cases. Talk to a professional insurance agent for advice. There’s no charge for a true expert opinion.

  • I am a California Resident who sign up with the Credit Pros in October of 2016, I am having problem with them, When i was first contacted by Elizabeth a company sales Person for the consultation i was told that they will work on the three Credit Reporting Bureaus,

    I never receive in any of the 4 Months that i am with them three report, The only Report that i am somewhat pleased with is Transunion,
    Experian and Equirfax in the last four Months i received two reports from each and nothing has been done on the reports,
    how every my credit card was charge $99.99 each month plus when i had the consultation on what to expect from the company i was charge $99.99 and was told that they will work on all three credit reporting Bureaus each month,

    When i complain last month i was told that they can not grantee the credit reporting bureaus action mainly Experian.

  • Is there any other place or person or organization willing to gift a down payment to
    a person whom has no family to turn to for a gift ? As such as a family member may be as bad or worse off financially ,,,,

  • Yes I have only 2 credit cards with a total of 3100 available and have a balance of a little more than 500.owed on it the other little over 400.this one is a total of 1,000 the other is 2,100 I recently paid 1,000 on it how long does it take for my credit score to go up and by how much will it be affected looking to qualify for a first time buyers program that also comes with down payment assistance of 3 to 5 % for the down payment my score was 627 need 13 points minimum to qualify for the 3% would like to get the 5 % also have questions about buying a home that would require some inprovements or up grades maybe bathroom or kitchen I’ve read that there are grants for these things would appliances also fall under those guidelines I’m disabled now so income would be a BIG factor do you have any information or ideas that could help us out DESPERATELY TRYING TO GAIN HOMEOWNERSHIP

  • I have dealt with this issue. My insurance has a yearly pay out of pocket maximum each year. In 2015 I paid the out of pocket maximum and continued getting bills from providers. Being it was my first time I had been to see a doctor for anything serious and my out of pocket was paid I just thought eventually everything would catch up to each self and wouldn’t have to worry about it. But insurance companies arent the same anymore. I remember when you went to the hospital give them your health ins. Card pay the deductible and not have to worry about it. Insurance companies now do not keep track of how much you have paid to the providers. Well, anyway. I got a letter from a dept collector and was seeking payment for a separate provider. And if I didn’t pay the balance they threatened to report it to the credit bureaus. I had no choice but to pay it otherwise my credit would suffer. Now I have paid over 1300.00 over my out of pocket maximum. Then a month later I got call from another collector. She told me the provider has sent me letters to an address I have since moved from. Because they never got a response from me they sold it to another collector. Now am paying on a payment plan to the collector. And on top of that they are charging interest. Which I don’t think it’s legal to do if the original loan had no interest. Now I have gather up all my receipts and fill out a grievance to the insurance company. Is it really that difficult for the insurance companies to track how much I paid for the year? I mean on the insurance website they have an area where all the claims are located. And even says if the claim has been paid. But I believe it only means the insurance company has paid. And I just got another one and I tried calling the number on the bill and get a “this number is no longer in service” so I can’t get ahold of them. And there business address is PO box number. Now I guess soon I will get another dept collector wanting their money. There has got to be a better way. It’s pretty sad the way things are going in this country. I paid my maximum out of pocket. And now I have to be their bookkeeper and use my time on something they should be keeping track of. On top of that a new job title has immersed call a medical biller. What do they do? Make sure the bill gets to the patient and that’d it’s?

  • Great advice about when to start investing. Those emergency funds are often overlooked by many and so important to have. None of us are immune to life’s crazy curves. 6 months is a good amount to strive for.

  • I’m trying to raise my score. I’ve paid all credit cards down I know this is going to help tremendously. However I do have some late pays that are scarring my report. We are closing on our house tomorrow but have some rental properties we still have mortgages on. My concern is will paying my mortgage off early make my credit score go down more???? Ugh!!!

    • check out creditkarmahacker.com, they are elite credit repair guys who helped helped a lot of people with bad credit. is your credit card over utilized? they can cut down your utilization. is your autoloan the problem or are you trying to get a mortgage? whatever it is, they are experienced and savvy enough to adequately help you find lasting solution to whatever the issue may be

  • Five or six years to go from 499 to 739 so start getting what you need to do if you pay off an account do not close if that will mess up your ratio

  • I have a did a short sale of my home in 2012 and yet the mortgage default keeps showing as “120 days late” on my report. How can this be after 5 years now?

    • As long as a creditor continues to report your late payments and or does not remove the negative information from your credit bureau report. You will be haunted by this. I have malignant shadows haunting me from seven years ago. You see the credit bureaus couldn’t care less. They make money selling your info. Good or bad it doesn’t matter. They make money selling all info about you. Even if it’s bogus info. They are in a win win situation.

  • There are some inquiries on my credit report from 2006 and it is saying it has not been updated in 3 to 4 months what can I do.There are also some inquiries that was removed and still not updated.

    • Hi Beverly,

      It’s great that you’re staying on top of your credit report and reviewing it often. Try to first dispute anything you disagree with through the credit bureaus’ online. If those items in question aren’t removed the following month, I would reach out to the creditor directly and have them update the bureaus. All the best with your credit repair efforts.

  • I have a child support collection on Trans Union and Equifax. I have an older that shows is was going to be deleted, and a current one where the date has been moved out to a newer date. Any advice?

    • Hi David,

      That sounds frustrating. See my response to Dan below. You could try doing the same, or simply disputing with the bureau online.

      Good luck!

  • What about collection companies that keep re-aging an account? I have 2 accounts that were original default dates in 2007, yet 10 years later as of this month the collection agencies updated them as new again.

    • Hi Dan,

      I’ve seen that practice used more often these days. I’d suggest writing to the bureaus to request they provide proof of these collection accounts. Typically, if they have no documentation they will remove it altogether.

      Good luck!

      • What happens, or what does one do if a request to validate a debt is basically ignored by the credit reporting agency? I disputed several collections accounts with both Transunion and Experian, requesting tangible proof that it was my debt, ie: signed loan docs, application, receipt for merchandise, etc. I received nothing, except a blurb on my credit report that the debt had been validated, yet I never received any form of validation. Now what do I do? Thanks, Carole (paralgl01@ gmail.com).

  • I had a student loan rep. said he would help eliminate the student loans for $1000.00. I told him that I would have to cut back on my grocery and gas money for going to doctors. He said do what ever it take to pay him to eliminate the loans. At the time my score was 640. I didn’t like his attitude, so he tried to call me ,email me. I just ignored him. One month later my sores dropped to 440. And I have been trying to bring my scores up since then.

  • I read all the questions and replies but didn’t find the following: What if 4 out of 15 creditors do not want to grant you the settlement offer? What happens then?
    Next question: I’ve been contacted by many companies but am not sure which one to choose or if It’s be even worth it to go into that route as I have no delinquent account and 100% payment on time record and about 50K in debts; do you have any particular company you’d recommend based on your blog’s participants experience? Please advise. Thank you

  • I really wish my 19 year old granddaughter had seen this before she bought her car. First time buyer, got suckered into buying what looked good on the outside. She got a real Lemon and I understand Florida has no Lemon Law on used cars. She’s in a repair shop at least once a month from one week after the purchase.

  • My credit score was 580. Now after one year of issues due to past I. D theft I’ve ended up with a score of 810. Then unfortunately A certain cable company dove into my credit bureau not once but twice two days a part. which I’m aware they are not suppose to do this. Hence hurting
    My score down to 800. credit solutions has helped me beyond I ever could imagine. I’m one happy lady. Thank you again and again !!

  • I had a credit score of 530. Bad marriage was to blame. I couldn’t get credit to save my life. So I did go the secured way and deposited $200. With a 100% on time payments, I started getting letters for pre qualified unsecured credit cards. A year and a half later, I now have 5 credit cards with 100% on time payments. Credit score is now at 733! I would have never believed it, but it’s true. So, my advice to people wanting to REALLY improve their credit score is to listen to the advice of these experts. Thanks again!

  • I co-signed a car loan for my brother. A mistake. It went well at first when the bills were coming to me. But then he changed the billing address and then it all went off the rails. He defaulted and I ended up paying off the balance. It took years before I got everything straightened out. Never again.

  • Bank Debit or Credit? When I use my debit card I usually select credit b/c I don’t like typing my pin at certain places. Is this being reported as a credit card usage, even though its coming directly out of my account?

    • Hi Tom! Thanks for finding us! We offer lots of advice on how to better your score with our program, The Credit Solution Program. You can also continue reading our blog for free, or contact our affiliates at Credit Pros by calling 855-980-4898 for personal, one-on-one assistance. Best of luck fixing your credit!

  • Judgement was removed from my credit karma in 2015. Haven’t checked actual credit reports. Hadn’t received any recovery letters until two weeks ago. How does one know if judgement was refiled b4 the 7years? I don’t have any paperwork to check. How do I get these letters to stop?

    • Do a credit check on yourself and credit karma shows them. It just more likely hadn’t been filed yet. I try to check weekly glad I do. The credit bureau not on credit karma you can get a free year of looking at your report. Not sure how I got mine but I’m a member and don’t pay to see my report when I want to. Search on was around the fees.

  • Great review! I was in the car business for 15 years and what you’ll find is new or used car dealerships may really appreciate that you’ve done your homework. Show them that you mean business, and as long as your offer is “realistic” then you’ll get what you want. Buy at the end of the month, but beware of the after sale!

  • Oh my, so many holes, so little time.

    Buying a new automobile based on the ownership experience of a friend who already owns that particular model. What if she made the wrong choice for herself to begin with? Would that lead her to give a bad recommendation of an otherwise quality vehichle. Perhaps that person bought a bad example of an otherwise quality make? Remember, vehicles are just very large, complicated appliances. Even Mercedes builds a bad one once in a while.
    Possibly there’s features in a model out there of that vehicle she owns that you didn’t find in the one she lent you for your test drive that would make the vehicle more appealing or influence the quality of the driver’s experience behind the wheel.

    Yes, your mechanic’s opinion might be factored in. But remember, they never see them when they’re new and statistics show that the vast majority of owners return to the dealership for maintenance the first three years of ownership. That being said, your mechanic is definitely a wealth of information so long as you’re not shopping for a model that has come out in the last two or three years. Remember also that they are human beings with their own preferences and biases. The easiest example being trucks where all full size trucks are more or less on par, many would swear to never own this make or the other. Opinions being like, well you know.

    As far as pricing goes, sure if your in the market for something that’s basically a commodity such as a Focus or a Civic, and you’re ready to sacrifice color and equipment choices your pricing strategy might work. No dealer is going to sell a model in short supply for a three hundred dollar profit. A high end make such as Lexus,Mercedes or Infiniti won’t sell a seventy thousand dollar vehicle for a three hundred dollar mark up. And I didn’t even see the words trade in mentioned in your article. According to The Automotive News, approximately 85 percent of all transactions involve a trade in. Yes guides are a good place to start. Consumers being educated regarding the value of their trade is a good thing all around, but you still can’t buy a used car sight unseen. Neither can the dealer.

    As far as service contracts go,sure for a lot of folks it’s an unnecessary expense. Lessors of new vehicles obviously shouldn’t be candidates as theoretically they should be done with their vehicles about the same time the original manufacturer’s warranty will be expiring. What about the consumer who is purchasing a new vehicle with a three year, fifty thousand mile warranty and drives eighteen thousand miles a year. They’ll be out of warranty in about thirty months. Statistically speaking about fourty percent of the way through their finance contract. If something catistrophic fails and they’re out of the original factory warranty, then what? Maybe they can give you a call.

    The bottom line being that there’s not one blanket of advice that works for even a sizable percentage of consumers in a transaction with as many moving parts as the purchase of an automobile.

    The next time you want to write on a topic outside of your wheelhouse, keep it simple. If you’re giving advice on shopping for a price on a vehicle, confine yourself to that one topic.

  • I always buy used cars based on the dealership, that way I can buy an extended service plan directoy from the factory. For example I buy a used Chrysler from a Chrysler dealer and a Chrysler factory service plan. They have always been worth their weight in gold. I NEVER buy aftermarket service plans from non factory companies.

  • All great advice. Another tip or two – if you do end up going in to the dealership, and start doing the deal and don’t like what you hear – get up and walk out the door. Don’t hedge, just do it. You won’t believe how hard they will try and get you to stay, but stay firm and walk. They will follow up. Also – many sites show the length of time the car has been on the lot (in days). They are more willing to deal on cars that have been sitting. Finally – certified pre-owned cars are an incredible value. If you do the deal right you stand a good chance of never being upside down for the life of the loan.

  • I’m sorry but getting a ten year 100,000 mile warranty is actually worth a couple extra grand! Trust me. My first car had a timing chain, (not belt) and my mother talked me into getting the warranty. So in 6 months when it broke it cost me $50 for a brand new engine! Yes a new engine. Plus mechanics will rip you of just as quick. Even if you know about cars.

  • Boght a car it was total buy a deer. I pay my payment evermonth on time abd they mess up my credit i can not get a lone why wont anybody help me with a car . they said becaue i dont have they car anymore what can i do

    • Did the insurance company pay off he car? If not and there is a debt owed then they can report, but if the payments were made and the car is paid off then there is no reason for it to be a negative mark on your credit

  • When sending a collection agency a second debt validation letter along with the wollman ftc opinion letter. Do you send it as is? Or do you rewrite the wollman ftc opinion letter in your own words.

    • I would leave it as is and make sure you add this is a second or third or however many attempts it has been, send it verified mail so they have to sign for it . This way they cannot say they never received it.

  • I’m retired I have health care from my job my PCP ordered a test Atena said it was covered they paid the bill. I get a letter from the hospital where the test was performed saying I owe $300 plus dollars and a $20.00 co-pay I called Atena they said according to their contract the hospital had to accept the payment they are not to charge me. The hospital sent it to collectors I explained it to them I even sent a copy of my cancelled check for the $20.00 and they are still trying to collect these fees from me. What can I do ?

    • do not talk to the collection agency, call the hospital and confirm the insurance paid the bill, they should work with you if it’s just a mistake.

    • This is something that is part of the issues associated with debt collectors, I have beat these guys down and actually had them shut down . Email me your info and we can get the ball rolling

      • Not speaking to them will not help, they will continues to bother you until someone else takes control, they feel as though you have no help and will continue to call, email me and we can get them off your back

  • The legal definition of ‘coasting’ in a motor vehicle is when moving down the highway while the power supply (engine) is mechanically disconnected) from the driveline. Such as putting an automatic transmission into neutral or depressing the clutch pedal in a standard shift vehicle, which allows the vehicle to cover some distance while the engine is at idle, burning almost no gas. I must point out that operating a motor vehicle in this state is also ILLEGAL in all 50 states. So, I suggest that you learn the meaning of the terms you choose to use before you suggest your readers use them as I don’t thinkthey will save enough money on gas to pay the fines involved when they are cought

  • Yes my credit was ruined by my Son and Daughter-in-law. They took out two loans in my name, social security and home address. My Daughter-in-law was a division manger at the financial company where the loans were taken out and talked my Son into signing the two contracts not my name. I lost my home of 41 years to foreclosure. Lie after lie my Daughter-in-law told over the years thinking things were going to work out. Boy I found out real hard that that $188,000 ruined my life. I had always paid my bills on time or ahead of time. Now I can not get anyone is see my side of the story. I have been ruined, no credit what so ever or can not get any.

  • Allison, thank you for a very informative article. Unfortunately, it comes about four years too late for me. I was so tired and fed up not seeing my credit card balance drop that I was willing to do anything to pay it off.
    I thought debit settlement was a good idea because you pay back only a negotiated amount. On paper it seemed like a good idea, but in practice it is horrible. It takes six months of no payments before the lender will talk to you. Even then, it takes several offers before they will agree. I then got to thinking, how can I pay a lump sum amount when I don’t have the money? This led me to my next mistake.
    I chose to pay everything off with my retirement fund. The idea was, once I was debit free, I could quickly build it back up again. That has not happened. First, I made the big mistake of not having taxes taken out. That coupled with the fact that any money forgiven becomes taxable income. Second, I’m still in debit because I had no emergency fund, or rather every month I had an “emergency” so it was impossible to build it up. So, I pulled out the credit cards and did it all over again.
    Whatever I thought I might have gained was lost in taxes and penalties as well as the handsome fee to the company that handled the negotiations.
    The good news is there is a happy side to all of this. I have been working hard to do it the right way. Make payments on time, pay more than the minimum due and stop using the cards. It’s been tough but I finally realized there is no quick fix for eliminating debit. It is quick to dig a hole, but it takes a long time to climb back out, and rebuild your credit score.

  • If you pay off a credit card completely and don’t use it, will it affect your credit score? Or is it a good idea to cancel those cards? Does this also affect your credit score? Thanks.

    • I’ve paid off everything, no errors on my credit report. How long does it before my credit score goes up?

    • Keep the card, Pay off as much as possible, If you get it down to $0.00 then only make one small purchase every month or two and pay it off each month, so the card is not cancelled for lack of use and continues to report low balance percentage and on time payments which both are very important for a good credit score.

  • I am about to take a loan from my 401k to pay off my car it is the biggerst bill i have. I think it is a good idea. as I will repay the loan quarterly.

    • This will work unless you get laid off or change jobs. Then you have to pay the loan in full or it becomes a distribution with taxes due and 10% penalty for early distribution.

  • Thank you so much for this information and helping us improve our knowledge on sold debts.I have been looking for a while now to find the answers about what I should do about sold debt etc..and basically you have set me on the right path now to start from scratch and go through my credit reports..
    Thanks again

  • This is a great idea…just stay out of the damn FAST lane while doing it!! THAT’S the reason your getting honked at…that and your texting!!

  • and it makes it impossible for very many people to get through a traffic light and the slow highway driving extends rush hour time for many others. don’t be selfish and/or holier than thou—get a bike or carpool if you must—and you will really save

  • When implimenting these techniques always be aware of the drivers around you and try to be considerate by staying in the right lane as much as possible if the traffic in the left is busy. It’s a good thing to be frugal and economical but it is selfish to be inconsiderate of others and to unfairly impose your driving technique on them, just the same as you do not want them to impose their driving methods on you.

  • the fifth one is just rude to other drivers. those folks who start slowing down half way down the block are preventing folks from being able to get over to the turn lanes in time to catch the light. other wise if they are in the slow lane ( right side) this is great.

  • I agree. Auto insurers have a valid interest in the driving histories and claim histories of their clients. They have no standing to make crédit inquiries– they already have the ability to cancel coverage in cases of nonpayment to them. Anything else is abusive and invasive of privacy.

  • So, not everyone needing a co-signer is in that condition because of their own behavior! Me, as a prime example! I spent my entire adult life struggling to make ends meet at jobs paying just above minimum wage. I worked hard while supporting my family. Then just before reaching retirement age, my wife first, be came critically ill, then passed away. About four years later, I suffered a severe stroke. Suddenly there is NO income, and a mountain of medical bills going unpaid. Needless to say, my credit score went into the toilet!

    Now I need a car. Not a fancy car! Just transportation. A 14 year old car, with nearly 200K miles on it! Well, relying on my credit score alone–even after working all my life–living in the same community for 40+years, if it took only a quarter to travel around the world, I’m not able to borrow enough to get me out of sight!!!!!!!!!!! Just saying!!!! Sometimes we need help even though it’s not all our own fault!!!

    • Well said vwry vwry well
      Said !!! Many many people havw has mo chice but to fall victim to societys
      Demand and superficial looks wears feels but most of all OWN THOUGHTS &FEElings !!! To many peoplewho not only coose but are acfraid of some sort of reprocution from whomever to whatever and im here to say my name Is McGerra Lee Beck / Taggart I am drom Cordova , Valdez , Kodial Island , amd Kenai peninsula , wich is where i do my damdest for qhT handed evwryday to run the and three kids ( AlL FRIGGEN GIRLS ) wich I literally thought my
      Husbad would
      Leave me if she waant. Boy !!! Ok im
      Parking lot crying go home to have my veey own husband say something to me and at the time i waa fummed i mean ready u know !!… mean mad and all of the above ! Left literally across the street mind you!! and talked to my best friend ( who has somw years on me ok!! Like her dughter who has a couple or a year in me !!! Oookkkaaayy ) i was on my knees at he coffee table telling her what he had said to me and the story but when i got to saykmg what he said out louns amd inheard my self say it !!!! In that vwry moment amd srood up couldnt say anything but i learned in that monet what he exacmeat by what he said and that was thw laat day of of keeping my mouth shut and taking it !!!! Anymoee fpr what i k ow what i am capabale of and u ur family fake ass friends will see as i laugh and yet the heart i am the love with old school and just giving out what i truly
      Just hope to receive back from them
      Other whatever !!!! People keep gelling me it will pay off someday to be a good friend partner sister brother wichever may be here or there my advice to all who will listen and not just try. Ut actually do u will see a difference alwaya alwaythink and do ur damdeat to feel ir even if u r not exactly whwre u wanna be go to where u want to be be with people who want to be thwm of course this positive when totally necessary even in bad situations just know there is nothing that can kill you hurt you anything that cN do that to you u can do the to them think be observant listen know your suroidonds and. Nwvwr trust anyone with anything u can know someone 30 years and never truly know who they r that just who they r with you and closed locked doors bring out if i belwvwd fully that is …………,;: no choice !

  • YOU TRUMP PEOPLE CAN SEE NO WRONG, JUST LIKE YOUR LIAR-IN-CHIEF! HES ALREADY MAKING MILLIONS OFF THE GOVERNMENT! I SEE THE MILITARY NOW IS LEASING A WHOLE FLOOR IN TRUMP TOWERS FOR 1.5 MILLION A YR. IN 2000 THEY HAVE HIM ON TAPE SAYING IF HE EVER WAS PRES. THAT HE WOULD MAKE MONEY FROM BEING PRES.! HE DOESNT CARE ABOUT THE POOR AND ANYBODY THAT SAYS DIFFERENT IS AN IDIOT! JUST WAIT UNTILL THEY GET RID OF THE ACA! THEN YOU IDIOT TRUMPSTERS WILL SEE ,BUNCH OF IDIOTS!

  • There are several options out there, such as direct investment plans that have the drip plan.. Do some research, GOOGLE is your friend..

  • Anyone making less than $9,275 a year will not experience an increase as written here. If you make less than $9,275 you will probably have all federal income tax you payed refunded you because of the standard deductions.

  • I have multiple inquiries I know that is killing my score. Between refinancing my house and getting a vehicle put a lot of strain on my credit report. Is there a way I can get them off. I tried talking to different credit councils like the one you are for but I know this one thing they cannot do is help me with this problem. Any suggestions?

  • Is it Legal for collection agencies to make a hard inquiry on your credit for skip tracing purposes and how are the removed. I don’t think that’s fair to be allowed to be done.

  • In other words he still has not developed any concrete plans just the same old trust me it will be great. But we’ll see, every President has big plans that never make it to fruition. I hope he becomes more flexible and starts seeing thing for what they are if, not all plans go out the window.

    • Such a typical negative lib answer!!!!! So sick of your stupid attitudes!!!!!!
      He could give you a new car and you would still whine because you have to pay for the insurance. Just sick to death of it.
      “millions of dollars saved for college graduates” “The bigger issue here is college affordability.”
      “those making more than $9,275 but less than $37,650 will experience a decrease in income tax – from 15% to 12%.” (which is a great many of the work force!)
      These are proposals that he has made. He has a decent record so far of keeping his word and not being the typical “politician”, which is the MAIN reason he was elected!

  • i applied for a car loan and explained about my credit and was very Pacific that they were not run alot of credit inquiries one to be exact they ended up running 12 hard inquaries i contacted the credit bureas infact wrote them to be removed they replied that they were correct and would not remove them is that fair? what can be done about that?

  • :WHERE IS THE REST OF THIS PARAGRAPH-AND WHAT IS THE ANSWER??Amounts owed: 30%
    This is also known as your credit utilization rate, or the ratio of your available credit to debt, and it’s a very important but often overlooked component to your credit score. You want to try and keep your credit utilization rate below 20%.
    For example, say you have three credit cards with the following limits and balances:
    Credit card #1: $500 limit, $300 balance
    Credit card #2: $1,000 limit, $500 balance
    Credit card #3: $2,500 limit, $0 balance” ???????? WHERE IS THE REST OF THIS?

    • LisaAnn,
      Please use the large red numbers at the bottom of the page to navigate to the next page for the rest of the article. Thanks for reading!

  • So, now Mr. Trump is elected. Answer these questions……who is going to pay for
    the initial investment in the Mexico wall: Who is going to pay for the investigation
    into supposed voter fraud that we already know doesn’t exist. WE are. Taxpayer
    dollars. How do you reduce the tax rate and pay for programs like these.
    Simple answer………you don’t.

    • Its called supply-side resulting in economic velocity i.e. M1, M2, M3 throughput of lending and spending. This creates currency valuation increase (wealth) and federal revenue increase in a lower tax “rate” environment. Basically “Reagonomics” that resulted in the longest period of economic prosperity in our history. Take or retake EC101 and you’ll get it.

    • You can pay for it if you reduce needless wasteful spending , taxing businesses outsourcing production, reducing unecessary useless gov. employees. Yes there are ways to do it without increasing the tax burden of the citizens.

    • Do you seriously think there is no voter fraud? If not, why do Democrats fight so hard to stop every Republican bill to require proof of identity to vote? They say its racist, but what is racist about someone having to prove who they are? If a police officer pulls you over, you have to provide your driver’s license to prove who you are, you should at least have to do the same to place a vote, to prove that you are who you claim to be, and that you are a legal resident of the state, or country. There have been many cases where people that have been dead many years have somehow entered a ballot in a current election. Tell me how, in your mind, that isn’t voter fraud.

    • Maybe use the millions of dollars that are seized everyday at the borders taken from drug trafficking cartels try to get cash back to Mexico. Does anybody know where this money disappears to

    • You cut worthless liberal government offices and programs like shrimp running on tried Mills.oh,here’s an idea.get rid of most of the E.P.A. And the Dept.of education to start with.and any other agencies that think they have legislative powers that belong to Congress..That will save billions of tax payer dollars.see,easy!!!

  • Aliyyah; No way Trump gets the Repubs in the House to go for Maternity leave, tax credit for daycare maybe.
    John Sullivan

  • The movement with Obamacare was ridiculous from the very beginning. Being an over half-Centurion I’ve experienced the system as poor & a middle class. I’ve seen the hospitals totally go downhill, the attitude to the over 50 being “we don’t care about you, it would be just better if you went away”, spring up exponentially in place of a biased few. Healthcare workers losing and leaving their jobs because they don’t feel the same about providing aid and support they once loved to do without knowing why that “love of service” has suddenly changed in them. It’s like an air of stagnancy and repression looms over the system in place of being open and free to choose. Alternative remedies and ideas have bloomed however choosing them causes fear that one might be found out and punished in some way, because many were and did, some with their lives. Suppressing our freedoms to choose never results in expanding life and goodness. Any change that opens that up from the oppression of making someone have something they don’t want or need and be punished if you do not comply, is a good & better result. Period.

    • Well, Pyper, who pays for your medical care if you decide you don’t care about having health insurance? Most of the time, and in the end, it’s the American taxpayer and health insurance premium payer who foots your medical bills. Why should I, any taxpayer, premium payer, be responsible for your medical bills? Not to mention the fact, non-payers add to the costs charged by doctors and medical facilities to cover money they cannot collect for the care they have rendered. In the end, people who are responsible, have to carry the cost of those who refuse to be responsible for themselves…hence the PPACA, Obamacare if you like.

  • Hopefully No more new taxes for the 2017 year !!! Trump was my choice for President & will follow up with his promises !

    • I am on with you! What I found appaling is that Americans refer to President Trump as “Mr. Trump”, which shows a lack of respect. Also, the people should let him follow through with his plans. That is what he said would happen when he got into office. I think Americans are so used to having someone take office and not do what they say that when someone acts on their promises, they don’t know what to do. We should all show our support and hope and pray for the best. Remember, “No More Taxes”? Need I say more?

  • So insightful so depressing to know I have been doing it all wrong! Now to get working towards doing the right things Thanks Mike you give me so much information I’m hoping one day I will get to buy that house and stop making mistakes with my money and credit. Thank you for the awesome work you do, you truly are helping me to try and do better

  • Trump has already began his pillage of the middle class, already a federal freeze on jobs. I am a disabled veteran living on a pension. The VA medical system needs more employees , not less.

      • He’s referring to the federal employees that work in the VA hospitals and clinics. With the VA already being understaffed, it makes it difficult to take care of the Veterans effectively.

    • I too am a disabled vet.100%service connected.thank God for President Trump and his freeze..The criminal V.A.needs to be gutted and the people replaced with folks that have to worry about loosing their jobs and possible prosecution for sludging of their jobs but accepting a pay check for it..What’s it been? 3 weeks..He’s already done more than Obama did in 8 years..Give the man a chance..On a lighter note,WELCOME HOME BROTHER!!! it will be OK
      Really,it will.he will be a lot better than Obama could have ever dreamed of being,and can’t be any worse than worthless last one,who by the way if you haven’t figured it out yet is the worste we ever had,so,IT WILL BE OK…

  • We as Americans all want change, but with both sides being untruthful to the public, which places them in office…at this point lower and middle class don’t know who to believe…these two classes are the engine and drive train to the US car, and I know at this point that they need a better financial, housing, health care, education, criminal justice, and retirement infrastructure…let’s not forget that the health care system that we have in place was drawn up by Republican’s, like it or not…I think that our health care should be free for everyone to utilize it…if our government as a whole can’t work together, then it’s time that the lower and middle class wake up and start making real and ideal decisions when electing those that we put into office…instead of racial, popular, greedy, idiotic, and etc decisions, because in the end we will only be hurting ourselves…remember those that are well off, rich and wealthy get to operate on the wholesale floor, while we, no matter what your race is that have far less, next to nothing, and poverty get to operate on the retail floor…I’m just stating facts.

  • Hello. I find your articles to be very educational. Thank you for taking the time to write them. My question is about “closed”accounts. Are they the same or different from “charge off” and how long can they stay on your credit report?

  • A little confused on the mortgage part
    It’s states “19 months to Foreclose”
    Is that correct and is it in every state???

  • I love your writings and truly appreciate the information that you provide us. I have sort of an off topic question/concern. I had a medical bills that the creditors tried to come after me to pay. The bill was for dental for my daughter who was a minor. This bill had to be when she was around 13. They are now threatening to place it on her credit report. Since she’s not longer a minor. Can they do this?

    LaTracia Palm Beach County, Florida

    • No they can’t. If she was a minor at the time of service an adult had to sign as a responsible party. That person would be billed and responsible for payment. Minors can’t be held legally responsible for any business service or agreement. If she was 13 and is now 18, 5 years have passed. Even though she can not be held liable for anything as a minor; some state have a limited time in which a bill can be collected and reported. Check your state. My daughter had a hospital bill that was from when she was sixteen and collectors tried to harass her to pay. She told them she was a minor when the bill occurred and was not the legal responsible party. When they heard that they quit calling and it was removed from her credit.

  • The only thing that I know of is credit card balance I’m still working on how to get that balance done to a zero.

  • So far I think it’s good ? information.. until I get my credit score I can’t continue
    My phone and laptop just froze on me.. you I’m gonna have
    To try it again tomorrow.. you will have to email
    Me

  • I have been doing this for a long time the main thing being don’t be a speed demon and starting out slowly from a dead stop it really works to save gas and get the best gas mileage your car can get , also keep your tires at the proper pressure ,

  • I am in a dire straight I’ve suddenly fell behind in making payments and have been hospitalized and have avoided my creditor and am emotional taxed what must I do?

  • I haven’t had credit since 2009 when I had rebuilt my score back to 700 and then lost my job and everything else.. I don’t like the credit game but I’m now remarried and have savings. I have late payments on my score that are 6 yrs 8 months old. If I pay them off, will they come off my credit report.? My husband has good credit and I don’t want to be the reason we can’t finance a mortgage when we are ready to purchase a home. Any suggestions as to what would be my fastest recovery?

  • I NEVER WANT TO BUY A HOUSE AGAIN! I RATHER RENT. TO EXPENSIVE! EX: PIPE BUST UNDER MY HOUSE…FILED A CLAIM THEY ONLY PAID $750 AND MY DED $2000…THEY ONLY PAY FOR THE TUNNELING NOT TO REPAIR THE BUSTED PIPES. I RATHER CALL A LANDLORD.

  • Some things seem to be left out on page 2. The step by step instructions start out explaining how to install a faucet aerator, then jump to the toilet tank but do not give the initial steps. It starts with “when the tank has drained” without mentioning the change in subject, or how to drain the tank.

  • MY BANKRUPTCY WAS FINNAL DEC. 13. HOW LONG DO I HAVE TO WAIT TO GET A SECURED CREDIT CARD, AND WHERE IS THE BEST PLACE TO GET ONE THANK YOU, JERRY A.

  • I am hopeful about the changes Trump is planning when it comes to finances. It’s one of the boggest issues in the US. If he can fix it then a lot of peopke will be happy.

  • I know exactly what you’re talking about because after eight years in bankruptcy when I got my discharge two companies Came Back Time Warner and Verizon. I was in bankruptcy and those were excused they came back and put it back on my credit which lowered my score

  • Thanks for this free advice. Excellent site. It’s hard to believe there are no hidden charges or resource materials to purchase to get this valuable information. I pray that you will continue to be bless in this endeavor to help others.
    Sincerely ,
    Harry

  • Sorry, I lost it. I didn’t get the chance to see my credit score. How do I get back to it without putting all of my credit card information again.

    • Hi Elsie,
      I checked with our Support staff. You were not charged for anything when you lost the page, so please feel free to start over without worrying about being charged twice. Thanks!

  • Hello,
    Your video was great and helpful. I had a question is the reason for an emergency fund is so that creditors can see a savings account? Or is this just personal and creditors have no idea what you have in the savings? I’m waiting for the second video at this time. My credit score is 502\537 I’ve paid at least about 600.00 in debt and my credit score has not updated it seems they take forever to update. Looking forward in hearing back from you.

    • Hi Sarah! The reason for needing an emergency fund is so that you don’t have to go into debt when an emergency happens. Say your car breaks down and you don’t have the cash to cover the repair costs right away. You will have to take out a debt on a credit card or even take out a personal loan to repay it, which, if you are already short on money, can be disastrous to your credit if you don’t repay it or are late repaying. But if you put away a little bit of money each month to a savings, when these things do happen, you can take care of them out of pocket and not have to worry about all of that. I hope that helps! Thanks for watching and feel free to check out our blog.

  • My ex-husband is constantly late paying the mortgage on the house we bought together. My name is still on the loan. I am still waiting on my divorce settlement and to get my name off the loan. Because of his late payments, my score has dropped well over 100 pts. I stay current on all my bills and am even paying extra and trying to become debt free. What else can I do to prevent my score dropping anymore because of his carelessness?

  • Of all the articles and plans I have read over the years, this is the most direct and “do-able” step by step plan I have seen to greatly increase your credit score and eliminate your debt. Follow this one and you won’t fail.

    • Hi Tonya,
      I checked with support and they said the email address you have registered here is working. The emails will either be coming from Mike Roberts or from the Credit Expert @ Credit Solution Program. Please check your spam as well. I hope that helps!

    • I have 5 of my own and I am authorized user on 10 which are my children. Only thing I am lacking is a mortgage. My other credit splits are pretty diverse.

  • Rebecca, My name is Samual W. Dewitt, and the reasons that I am here is that I made some poor choices in handling my money, while I was in the hospital last year for almost 8 months. I made the mistake of trying to simplify my bills by a company who didn’t support my owning as per my request. Being unable to communicate while in the hospital, I lost a lot of credit worth. While in the hospital, I committed a awful thing in giving my banking cards for safekeeping to keep while I was there. For almost 7 months, I was to be saving at least $1000.00 a month, but when I finally got release, I didn’t have enough money to buy me any food and had to wait for a week to receive any money. This was my daughter, and I am still living with her, because my car was repossess, while I was in the hospital. I am making now $3500.00 a month, without any taxes being taken out, SSI, Pension, and VA compensation. Please advised, Thank You, Samuel W. Dewitt

  • Once mom got to the point where she was going to have to be cared for in a home 24/7 because we had no wheelchair access for her in our home, we sought advice from an eldercare attorney.

    We were able to buy a new big screen TV for her to enjoy in the room, along with a nice oak clothes closet to store new clothes in, and two new recliners for her to get comfortable in. The attorney said it was legal to spend money for moms needs even though she was in a Medicaid room and was only allowed to keep $25 a month from her S/S checks. It was very difficult to have mom in the home, but having the ability to fix up her room and visit every day made it easier for me to endure. Eventually, mom enjoyed playing games and socializing with others her age. They even had an in house hair dresser she saw every Friday.

    One final note: it appeared at one point mom was going to be forced out of the new home she loved because of changes to the maximum S/S income she could receive. We were able to get around that issue because the doctors and nurses said she was incontinent.

    My advice, get a good elder care attorney and build a lasting relationship with the doctor who attends the assisted living or nursing home facility you will be using. Also, find out who the health care advocate is for your area and contact them ahead of time

    • Thanks Gary. You’re right! It’s very important to get the legal and health care advocates on board early for all your parents’ elder care needs. They are best able to advise you on things and situations you may not know about.

  • Your constant emails have been inspirational and helpful these few years since I have been receiving them…My personal “Thank You” for your services.. Keep up the good job for us ALL….

    Take care, Be safe and most importantly, Be bless in Christ…

    Charles Y…

    • Hi Nellie,
      Have you considered our Credit Solution Program? You can improve your credit score on your own by using the process discussed in our program (which you can access here), or by calling a company like CreditPros (at 855-980-4898) and getting their help to bring your score up. Best of luck!

  • I’m not sure about Mexico. I have friends from different parts and the general message from them is that its a very dangerous place to live.

  • Hello, thank you for the information. What is the difference between doing the steps on my own using your tools versus using your paid assistance program? Will it repair quicker? I’m in a desperate need to repair my credit. I’m in the 400’s. A divorce and no emergency fund have wrecked my credit .

    • Hi Michelle!
      Our program teaches you how to make these fixes for yourself. A paid assistance program will do it for you, but it will cost you more and it will take control out of your hands. It all depends on what you are comfortable with. I hope that helps! Please let me know if you have any other questions.

  • The Department of Education, aka the federal government, needs to give victims of student debt a real break. They’ve stripped away of practically every consumer protection.

  • I absolutely agree. I was recently laid off after 17 years of working at the same company I decided to do just that (focus on earning). It gives you a different perspective.

  • I have all 3 of my credit reports in front of me. I’m ready to find out how to fix my credit score. Your video made a lot of sense. I will be expecting more from you tomorrow.

  • This insight has a “dah” factor of 15 on a scale of one to ten.

    Most people who find themselves in credit card debt beyond repair were naively reckless or criminal in their intent.

    The initially naive will find their way though the quagmire they have created for themselves via a more sober approach to credit understanding and a modicum of research. The criminal will always seek the short-cut, short-term solution.

    Which are you?

  • I read this “Having a credit card with a zero balance is also very likely to have a positive impact upon your credit scores since cards with zero balances have a debt-to-limit ratio of 0%.”

    Here is what happened to me when I dropped my Credit Card balance to zero. Bank of America reported my account as inactive and that dropped my credit score around 6 to 10 points. As soon as I left a balance smaller than 10% on the card my score shot right back up to where it had been prior to paying off the card completely.

    Note, the bank took no time in issuing the “Account Inactive Message” to all 3 credit bureaus. 5 minutes after I transferred the funds to pay the card off to $0.00 I made a small charge of around $35.00 on the same card. I called one of the bureaus and was told it might be removed when the bank sent their next report to them, which it was. That was at the end of the monthly billing cycle around 30 days.

    Everyone most likely will not do things the same as Bank of America did. So I thought I would share my experience with paying off a credit card and the effect on my credit score. 🙂

    • Bank of America I find to be very unethical at many different levels. I paid off my card with them long ago and would never do business with them ever again.

    • Hi Greg,
      So sorry to hear that! I’ve contacted our support office on your behalf to see what the problem is and will update you once I hear back. Thank you for your patience!

  • US Representative Maxine Waters is easily confirmed to be female. A quick check in the Wikipedia article on her identifies her as the most senior of the dozen black women serving in the United States Congress.

    It was an unnecessary dig to refer to her with male pronouns. If intentionally done: have more respect. If in error: attention to details and editing required.

    • Hi there,
      I’m sorry, but I don’t see where you are seeing Rep. Waters referred to with male pronouns in this article. Can you please point it out to me so that I can make the adjustments? Thank you.

  • Taking items off sooner is not going to help the problem. It’s a bandaid to something much bigger. If your going to change the credit system to better help the consumer then do it the right way. Focus more on the items paid then a late payment here and there. It’s awful when you are told time and time again that your credit score would be better if you just filed for bankruptcy instead of fighting to dig your self out of the hole your in. Now that’s a flawed system. Not to mention that it hurts you to take out a loan but also hurts you if you don’t have one and they want you to have credit cards and use them on a regular basis but yet it hurts you if you use them to much. And also how you have had tons of loans and always paid them back in full but wait, you were late 30 days last week on a payment so none of the good you have done matters!! Oh and not to mention they are only going to give you a few points back after you have made regular payments for 3 months but if you are late one time they take 45+! Flawed is not the word I would use. Rigged describes our credit system much better!!

    • Teri truer words where never written. The system is beyond flawed it is one that feeds off of itself and the chaos it creates. do not forget that frequently you are unable to obtain a home modification, approval for a short sale if you are current.

      There is no provision to assist those who have private mortgages and found themselves under water and were forced into short sales , deed in lieu or foreclosures and the banks were not predatory. we did not cause the problems in the banking industry -the industry did .
      How simple it would be to grant immunity to those who were unable to refinance balloons or complete buy outs as a result of divorce/separation or relocation due to job or illness and found that they were completely underwater.
      Consideration should be given to the number of time one pays in advance versus solely on the negatives.
      But I guess we all should remember that the banking information purchases data from the reporting bureaus and based on the information provided they charge interest. So for those attempting to live within their means and despite high utilization regularly make payments that are above the minimum payment are considered a risk and yet these people are expected to continue renting homes that if that cost 25-50% more than if they could purchase the same home.

  • Boy I hope this time rep waters can get this bill passed I have been a victim of the credit bureau for over thirty years. As many of the posts have already mentioned I have been in every situation named . I even wrote a letter to our newly elected President donald j trump before he was elected hoping maybe he could help get things removed from my credit report as mentioned resold collections for over 15 years now. I can’t believe our government would even allow this to happen . the best thing to do would be to do away with the credit bureaus altogether and go back in times to trust each person individually and we would have a stronger nation built on trust. I have not been able to get any kind of credit,not even something as simple as a small credit card.for over twenty years now. Yes I may have made some mistakes in the past but have to pay for them for a lifetime . Cant rent an apartment with a score of 650 or less,no wonder we have so many homeless people on the street.also the fact that the inquiries stay on report for two years if you have too many no good , if too few no good , make up your damn minds. I usually have to wait to save money up for any car repairs, food clothes etc. And then no one will give you any credit because of no credit history to go by. But now if you win the lottery big time there are no reservations as to how the banks credit card org charities can get a hold of your money with they”re offers . All i can say now is “you come into the world with nothing, and most certainly you will go out the same way as long as we have this society of a credit bureau mentality”. This government is truly messed up. Wishing the best for rep waters

  • Why are we pentilized for viewing our own credit report that we own any time we want. This is our information and not owned by anyone else so there should be no problem for us viewing when we want or authorize someone to pull our information when trying get approved fir a purchase.
    I totally agree with the changes for the length of time as things stay on the credit reports way to long. Credit service agencies should be held to a standard of timely removal of a cleared, paid in full outstanding account. Status of limitation should be held to a higher standard and because a debt is sold between collection companies doesn’t and should not let the date of the debt re-start over because of this. All of it is to long and unfair for someone trying to recover from losing a job or medical issue that prevented them from making timely payments or payments at all.
    The folks that developed the credit reporting system and it’s rule more than likely are of the wealthy class and never have been faced with hardships so they just don’t get it.
    There will always be folks that try to cheat at not paying but for the ones that do there best and try to manage there credit accordingly should not ge punished.
    It is ridiculous to let any financial institution charge interest rates up to 400% no matter what. This happens to folk with poor credit scores that are in need of help but can only get assistance thru pay paid loans.

  • You’re full of donkey dust. Are you paid bt the big banks? You’re more concerned for them than the consumer. OK, bump the 45 day window up to 1 year. The point is stop the long term punishment of the consumer for past mistakes. Bankruptcy? Max it at 3 years, You’re so worried about some bad actors taking advantage that you are willing to sacrifice the financial well-being of millions of consumers. Regulations can be made to catch and punish the bad actors. What pisses me off is that the credit card companies are the bad actors. Their interest rates are calculated to cover debt defaults, so monies lost in bankruptcieds are already covered. Then they take tax right-offs for the bogus losseds. Why not help the consumer get such sweetheart deals?

  • I believe the bill has some merit but they should be targeting the collection agencies and their ability to renew old debts that have been settled or expired beyond the limits already in place. Too many times a consumers old debt is sold over and over to collection agencies that renew the debt on a consumer’s credit file to make it look as though it’s an active account. If Congress wants to target and regulate a problem it should be these bottom feeder collection practices.

    • Please read the entire Bill before stating that it doesn’t target the collection agencies. The bill does that and more. When I say read the entire bill, I mean the actual bill, not some parts of it before anyone starts to break it apart, not knowing exactly what it does. You can find it on Govtrack.us

  • my Bankruptcy was more then 30 years ago. and I lost my job at one point missing a few payments and child support the judge said jan but made the oreder at an earlier time i was late 1 day not 30 1 day only due to transportation getting there.

  • One way to deal with a creditor who sues you, is to make an offer in settlement. The creditor is likely to accept the settlement since it means they avoid the expenses of going to court and collecting the judgement. Federal and most state courts encourage settlements in order to reduce the number of trials. I’m not sure what the tax implications of making a settlement are, but I don’t think they are the same as if the creditor forgives the debt. I also understand that making a settlement has less impact on your credit score than having a judgement against you. Be sure to consult with an attorney before taking this approach so that you understand all the consequences.

  • Simple quick fixes. Most of the information seems like common sense but if its something you just never thought to do then it becomes life changing!

  • I would be careful with Lexington. Wasted money trying them and my score didn’t move in a year. The problem with Lexington is that they only send form letters to creditors/credit bureau’s which do nothing and they don’t 1) deal with inquiries or 2) help with proactive means to rebuild credit. I’m using Credit Pro’s as of a couple weeks ago. Impressed so far but will update after 6 months with results. Just my sharing my experience…

    • 3 years and over $3000 with Lexington Law, they not only did not help me, they destroyed what good I had on my credit.. and refused to fix it… and just brushed me off and wanted more money… Im devasted here.. now have triple the work needs to be done to fix it…hard to sue a company for destroying you when they have a team of lawyers on retainer!!!!!

    • Agree! I wasted hundreds of $’s with Lexington. Equifax Experian and TransUnion hv software that kicks out system generated dispute letters!

    • Been with Lexington for 7 months. Started at 650 now have 712 to 732 depending what fico score rating is used. They took off collections and even a court judgment that was on all 3 bureaus. Plus I help myself during this period to pay down credit card debt. I had a good experience with them. Although they don’t do good with inquiries. Give you form letters for those and didn’t do me any good. The bureaus did respond to them but said they were legit. But that is the only negative.

  • It’s ironic that an ad mentioning the Fair Credit Billing Act appears in your column. Banks have been legally scamming consumers for years and getting away with it, until just a few short years ago.

    • YES THEY HAVE Mister K and Regions Bank Still Does My Friend! My wife and I have money taken from our accounts every month and they say WE DIDN’T TAKE IT! Where did it go if they DIDN’T TAKE $10.00 here and $20.00 there and NO ANSWERS FOR THIS! We have Seniors Free Banking and I confronted the bank manager and told her I think they were taking this money out to pay for a new building and putting some in THEIR POCKETS! IT STOPPED RIGHT THEN! Two years TO THE DATE NOW IT STARTS AGAIN! I went to them and ask what was going on with my wife’s account and they what was happening. I told THE NEW BANK MANAGER THAT MY WIFE’S SAVINGS accounts was being ROBBED.
      She went to her account and looked back and found what I was YELLING about and the search (BEGAN!) right THEN. It was an employee that put it in her investing Port Folly-O.
      Still never got the money that was taken 5 years ago and up till 2 years ago. So be on the LOOKOUT and ask for statements going back as far as you can get them them up to see if there is any thing out of order.
      Just Saying BE CAREFUL and SEARCH IT WELL My Friend.
      Ken W.

  • Mike, You can not be more accurate on anything than you are on this article.

    Each month I run my card up charging everything on my card instead of using cash or debit cards. I keep my cash available and I MAKE CERTAIN I MONTHLY PAY MY CREDIT CARD DOWN TO BETWEEN 1% TO 10% OF MY AVAILABLE CREDIT BEFORE THE PAYMENT DUE DATE. This keeps my Debt to Credit Ratio soundly in the lower limit of under 10% usage, the ideal sweet spot to maximize your credit score.

    I wonder why the banks simply do not put all this information in a short report and hand it to us when we open an account. Surely they want us to follow the norms and keep our credit clean or they would not make it so easy to get our credit scores maximized. The only answer I can imagine is banks must feel if we research this information on our own it makes us a better credit risk and shows our dedication to being credit worthy. In return our dedication and care to repay makes us better credit customers to carry their cards and lend money to. Think about it, makes perfect since to me.

    What does this mean for the people you help? It puts them in a unique position to be seen as one of the perfectly and determined credit worthy people they want to lend money to. This is what those who are righteous over following your advice have to look forward to, along with saving their time and effort of doing all of this on their own.

    In short there is no doubt you offer GREAT VALUE in the information you share.

  • With all the fancy algorithms and credit reporting services available, have they actually improved the delinquency rates?

  • Hi, I have two judgements on my credit report, but have paid them both to the parties that filed them, I’ve have satisfied the debt, so am I able to have the judgements removed off my credit report?

  • I was sued by a lawyer that I built the house for. The house was completed when finished and he took possession but never made a payment to the bank that the house was financed with. The house was put on the market and was listed for almost 7 months. When the house and did not sell he trumped up allegations and sued me for the entire price of the house. I spent $70,000 of my own money defending myself but ran out of money. He then got a judgment from us $320,000 of which I never got notice from the court that it had been filed. Can I get this removed sense it was falsely Filed without my knowledge.

      • Hi Sam, thanks for responding. Upon rereading.. I believe I asked incorrectly on what to do. First off.. the one judgement in question has no information on it.. not even a file date.. so I looked at my paper work and found a letter from the collection company/attorney and they filed paperwork to the courthouse stating Notice of dismissal with prejudice. So what I’m asking is, can I get theverything judgement removed from credit report? If so, do I start with the attorney?

        Regarding my other judgement, it was filed, but I settled with collection company, so it never went to court. The judgement states paid, can I have it removed or do I leave it alone?

        I appreciate your time and look forward to hearing from you?

        Susie

  • Since the very first video and all the tools my husband and i have been seeing all the changes and growth of our credit build. Thanks for all your accurate tools! Still working on some tools and the saving plan. We will get up their. Don’t stop helping people. You are the tool to credit solutions. Thank you!

  • I am disabled and have been since 93. Due to low income less than 800.00 per month it didn’t take long to get over my head in credit debt. Past 3 years i’v had 3 surgeries, closed my own business due to surgeries. I got behind last year on payments to 4 cards. All have been closed by the card company’s and sold to debt buyers. Should i declare bankruptcy and try to start over . JUST OVER 5000.00 IN DEBT, INCOME LESS THAN 750 PER MONTH. THREATENED WITH LAWSUIT OVER ON OF THESE DEBTS. HHEEELLLPPPP

    • once they sell the debt it is paid. act like you do not know what they are talking about. what they do is record you and try to get you to say that it is your debt. ask them to send you correspondence showing that they have your wet signature on a con-tract showing that you are in bed with them in commerce. after the main company charged it off they zero’d their balance book so debt was cleared then they sold it to a collection agency for pennies on the dollar. do not fall for their lies or empty threats. if you’ve already agreed you’re basically stuck unless you just want to tell em to fuck off. THATS NOT MY WEBSITE SAME TIME ITS VERY INFORMATIVE.

  • My Question is my Dad is retired Military and they have been taking percentage of his retirement into a Annuity my Mother passed away 3 years ago so I’m next in line as the benefishiery does Military Annuities still have cash value? My understanding is after my passes he’s 81, I’m soppose to receive 800.00 a month til it runs out, the reason I ask this is because I’m disabled going 57 recently seperated from a 36 year marrage no other family to rely on after my dad is gone,my mother had no life insurance either.thank you if willing to give some sound advice Sincerely Kathryn Akers

  • How can I get 43,000 in free retirement money. I’m down to my last dime and I work 24/7 feels like. It all goes to bills and the house. I have 2o yr old car that runs but will need a new car this coming yr. any advice you can give is appreciated.

  • My mother made me an authorized user on her account. It’s important to note that it takes about 3 months for the credit jump to take affect. If you’re thinking of adding someone as an authorized user please note you don’t have to give them the card. That way your credit isn’t at risk.

  • Great advice but I think my credit killer is not number 5 as said. My problem is unsolicited hard inquires on my credit. I have inquiries
    from places I never heard of. How do I stop that?

  • There is nothing in the Law that states that late payments or settlements has to stay on your report for seven years befor it can be removed. Why not publish the law as it is printed.

  • If your going to eat out on vacation do lunch instead of supper. Lunch prices are much cheaper and the serving sizes are not that much smaller. (Gaining weight is one of the down sides of vacationing.)

  • How do we STOP creditors from reporting a 8 and 9 year old debt from being reported! Obviously it’s sold to another source then showing as OPENED in 2016! It’s bad enough fighting ID Theft and Fraud but WHY do the credit repot agencies allow this action?

    • This is an issue with me, everything is 8 10yrs old & paid out & closed but still reporting some late payments. Even though my daughter has graduated college & grad school & haven’t had child support for over 8yrs they still report a few late payments really sux.

      Marty

  • Fast food helps. During the hollidays, Christmas and Mother’s @ Father’s Day the restaurants almost all run specials like but $25 get $5 for yourself. Some like O’Charlies even give $10 for $25. You have to use the bonus cards by a certain date or they expire. Keep all of the cards to use yourself and spread them out over the year and don’t allow yourself more.

    • Those are great alternatives. The cable thing is a major cost savings, when finally realizing that you don’t watch half the cable channels offered. And I don’t understand why the bigger name cell companies are so much more expensive. As if we’re paying for the brand name of cell service. lol. Good luck with the transition. It’ll be worth it in cost savings.

  • I have never had a bankruptcy. My credit report went down very recently when I lost my job. I was up at close to 800. Now I am close to 700.
    I have had some difficult credit times in the past. I was living in New York State at that time and the Statute of limitations was 4 years. Credit cards are unsecured debt and the debt is generally passed to bottom-feeder companies. The 4 year clock counts from the last payment made. New Jersey Laws have a 6 year SOL. I was subject to sewer service for something like $3500. I settled $70,000 worth of debt in New Jersey for $250. I had followed the path of common sense by mailing legal notices to the new credit holders and refusing to talk with collectors and NEVER made an interim payment. The written “stop hounding me letters” were copied from some considerate attorneys who offered their use at no charge.

    I have my own rule now which is to learn what are the rules are. This includes actions I took in the paragraph above and, most importantly I got out all the “stop hounding me” letters. I also checked the usury laws in New York and New Jersey. The NJ usury rate is 16% simple interest annually. None of our legislators seem to be paying attention to today’s rates.

    I have signed up with Uber and Lyft and should be starting by the end of this week. Uber’s guarantee is up to $600/week which, when multiplied by 52 comes to $31,200/yr. Being in my early 80s I would like to clean up my act and my debt.

    I was contacted by a person who claimed that there was a very simple process for increasing one’s FICO scores by 150 to 200 points by including my apartment rental with a landlord’s letter saying that, in the recent past (2 years) my rents have always been paid as agreed. Who knows?

    In any event I would like to see what you have added to what I have done, Just remember, I have never been a bankrupt. I have no idea where you got that from. Do let me know..

  • Paid for mine up front. I’m happy my bill isn’t that much but, Then again, I don’t have to pay my children’s bills any more. All companies take advantages of the consumer. It’s called “GREED”. Any company that insist on a 2 year contract knows after 3 or 4 months, You will be dissatisfied and you can’t do any thing about it “except pay”. Cell phone is one of the highest bills TRUE but, I believe the cable company’s are right there with the cell phone company.

    • It is not “Greed”, it is called offering a service. If you don’t like the price, go somewhere else. When you are in business, you are there to provide a service or product and make a profit… If profit is not made, the company will go out of business!

      Why is it that people don’t understand that a company will charge what the market will pay. You don’t have to get your service from someone (a company) you feel charges more than you are willing to pay. Profits are not bad, they allow for innovation and progress. Without profits, companies go bankrupt!

    • I am looking to lease a car but I am new at this so I don’t have a lot of information on how it works can you splain it a little bit more…

      • Leasing is like renting. The details are extensive and can fill a book but it can be simplified.
        Simple example: The value of the vehicle is $40,000. The leasing company (bank) figures the vehicle will be worth about 50% of that value in 3 years. they take the other 50%, divide it into the 3 year term, add interest (money factor) and tax, and you have your payment. This is a simplistic example but you get the general idea. Just remember to negotiate the payment, it’s not written in stone. The dealer will try to get as much as possible and will drop it if you press hard. I recently negotiated a BMW lease and ended up with a payment that was $60.00 month lower than the initial payment I was given and nothing changed but the dealer’s willingness to negotiate.

        \

        • One thing no finance expert ? Ever mentions about leases is that the total of the 3 year lease cost is figured and you are charged interest on it all as if it was to pay for something delivered at the beginning of the contract you have with them, In other words you pay 36 months interest on services provided (a leased car) as if you received the total value sold to you at once and Not spread out incromatically for the 36 month lease or 365 X 3 cars All for one day at the same time for one day ? !!! and then you were charged interest over a 36 month time period for what you got for one day to stage the World’s biggest car chase movie Scean. In other words you were charged interest on the whole lease for the whole 36 months but only provided with a car incrementally one day at a time during that lease !! and limited the number of miles you could use it on top of that.

  • How can I get my lease agreement added to my credit history for the last 3 yrs or so, because if we dont pay on time its added to our credit, Thank you.

  • After reading this very informative article, I also began doing research about cell phone services in my area. I did find many companies that offer the same services I currently receive from AT&T, for a substantially lower cost each month, BUT how can I make certain the service is also equal or better when it comes to connectability? They all “SAY” they service my area; however, many aquaintences of mine receive “spotty” service at best. I reside in the Pocono mountains which makes many “satellite” type service poor. Many companies up here take advantage of only giving customers partial information, and/or exaggerating their capabilities to get you as a customer. I feel they do this because they know what a hassle it is to change services, and phone numbers; therefore, they hope that people will just stay with them while receiving spotty or sub par service.
    Thank you so very much for your article, it was a very informative and I enjoyed it immensely. I hope you can help me with the questions that I have asked.
    From my family to yours, enjoy the holidays, and we look forward to more articles after the new year.

    • Chuck,
      Thank you for that sweet message! We here at Credit Simple hope you have a wonderful holiday season as well. I think in your case, it might be a good idea to go with your friends’ reviews of those companies. If they are getting spotty coverage in the Poconos, you’re probably going to get it too. I lived in the Cascades in Washington and no matter how good companies said their reception was, we always knew it was always cruddy at our house. Go with your gut on this one, Chuck. Thanks for reading!

    • My family still lives in the Poconos and they have Verizon and T-mobile. When I was up there I started with sprint, horrible, t-mobile was better but had horrible customer service. We’ve been with Verizon for the last several years and found them to have the best service coverage area as well as customer service. My parents house still has parts of house where they can not make a phone call but have been able to text and this has been a huge leap since with the other carriers they lost service about 10-15 min away from house at the base of the mountain on way up to there house. Hope this helps. I miss living up there but definitely do not know how I lived without great cell coverage so long.

    • Yes I agree the service is not always good I work in a Hospital and I get dropped calls all the time. Also the phones do not work that great they freeze up even though it’s cheaper the services is poor.

    • I can only offer my experience, but I have used Verizon, Sprint, Straightalk, and had to supplement a landline while at home. The internet didn’t work while I was home and in a lot of other places. I became frustrated and gave AT&T a try and have been happy every since. The phone I paid for with Sprint couldn’t be transferred to any other carrier including Verizon and I had to get a Tier 2 company which is Boostmobile and gave the phone to my daughter she hates it because it doesn’t work worth a flip even outside of the house. Mind you we live in a rural area I’d suggest just staying with a Tier 1 carrier. I travel all over for work and the only service that still worked in the mountains and in other areas that people complained about is AT&T. It’s widely known here that nothing but AT&T will work in Missouri. I’d check with friends and the locals and see what coverage they have and which carrier before I’d switch or do anything. Best of luck to you.

      • Ohh and I’m not in a contract plan either it’s actually a mix of prepay and contract. I get a bill, but I’m not locked into anything. I also get a discount on my Directv bill too.

  • I’m with Sharon, Annette How Did You Ever Get a Federal Student Loan Discharge????
    That Loan Has Runied MY Credit for Life. The Government Ownes Me. Jobs, cars, house, renting anywhere to live. Salie Mae now Navient actually has a Salie Mae Succide Hotline of their own.

    It owns everything except my soul which they can not have. Ruthless they will leave you homeless and hungry.

    • Whether or not you are in school or out call the education.gov.org you are entitled to a new program to get out of default if you make 23,000 @5.00 a month after 6 months go back to school after 9 months out of default and choose a payment based on income not what they want 20.00 a month for 20 years it’s over!

    • My student loans were forgiven dye to permanent disability that will unfortunately lead to death. Call Ancient and ask for info on loan forgiveness. They’re very supportive on this subject.

    • See what it costs to break the contract and how long you have left and just see what costs less waiting for contract to run out or staying with them and don’t forget to add costs if you need to buy a new phone

      • To those that do not kno, texting on most carriers are unlimited so is long distance and all of them have shoddy service at times, So whats really important is where you live and who has the best coverage in your area. I am an over the road truck driver and use my phone a lot in diffrent calling areas and i will tell you the truth, they all have dead spots,they all drop calls on you while your on the phone. They all have no service avaliable in certain areas. So find the one thats works for you in your area that is the least expensive and thats it ,,,,,,,pay up!

  • My ex-husband was ordered to refinance his truck and the RV we bought within six months after the divorce was final. That was 3 years ago he is constantly late and the creditors call me. I barely can pay my own bills much less his. He has ruined my credit. And I don’t know what to do.

  • Hi Tmac, I have too many credit cards & I want to close some. How can I close them without it affecting my credit score? Please help, Thanks

  • I’ve finally got a little bit of Credit within the last 2 years & haven’t missed a payment on my credit cards. However, I cashed a Check I received from a Loan Company & Have paid 5 months on it until this month of Dec..Simply because I don’t have it & I told them I’d pay in Jan. The Lady called me & wants me to take up enough to pay them a payment & leave me with a $100.00. It would also put my Payments back to the beginning & 6 months of payments of $125.00 A Month to start over . I called & told them again I couldn’t pay until next month & I didn’t want to take up the Money. I haven’t missed any payments except this one, so what does anyone suggest. Thanks very much.

  • How long can medical bill collections remain on your credit report & do future banks/creditors consider these unpaid medical bills at all in determining your qualification for a mortgage, auto, personal loans and/or credit card apps.? (living in Taxachusetts MA)

  • I would like to speak to you about unpaid debt and how to get my credit back in order. I have been working on it by myself for a short time now, but need to know if my ideology is sound. I can be reached at [omitted]. Thanks in advance.

    • Hi George,
      Thanks for being a reader! We do not contact people one-on-one. You will need to look to a company like Credit Pros who helps with that. You can call them at 855-980-4898. I have also omitted the personal information in your post for your safety.

  • I pray every day that will put my wife and my in to a1-bedroom or a two bedroom, My retirement is
    my wife’s check $ 210.00 we pay or bills on can someone please help us GOODNIGHT & GOD BLESS.

    • Hi Kennytinney,
      I am so sorry to hear about your struggles! I am having a little trouble understanding your post though. Could you tell me a little more about your situation (without any personal details) so I can point you in the right direction?

  • For me the worse thing I ever spent my money on was a fad diet… I heard the ad on the radio and it sounded so promising. “Doctor monitored” I went for the “free” consultation and walked away $2200 further in debt and a whole 1-2#’s lighter after 45 days. The “diet promised” a loss of 1-2# per day and I went every week and followed the program to the letter. In the 45 days I was going I saw the doctor twice, on my initial visit and about half way thru because I expressed my frustration of following the program and not losing any weight so he came in and talked to me and told me that not everyone is the same but I should keep doing what I was doing and it would happen. It took a year and a half to pay off that debt and I am still no lighter than I was the day I started the program, other than in the pocket book.

  • While not having an emergency fund is no doubt one of the reasons for my low credit score, in actuality, I don’t have a credit score. What came back after trying to get my credit reports was, “Sorry. Insufficient Ciredit History and scores cannot be obtained.” My credit history was a mess when I was in an auto accident, lost my job due to the recovery time and had to file bankruptcy. This was in 1994. I had a home and this address keeps showing up but the bankruptcy was over 10 years ago. I’ve paid for everything since with cash as i couldn’t get any credit. So now I have no credit history.

    • Hi John!
      Thanks for reading! We offer lots of advice on how to better your score with our program, The Credit Solution Program. You can also continue reading our blog for free, or contact our affiliates at Credit Pros by calling 855-980-4898 for personal, one-on-one assistance. Best of luck fixing your credit!

  • Can you tell me why it is that the three credit companies that report your credit can continue to have things that were written off or its been over 37 yrs how they continue these things on your credit report? Not to mention I went to court in 1985 , yes 1985 and the judge told me it was now taken care of me being a victim of fraud and yet here we are in 2016 and nothing has been resolved. I was told to sue all three of these companies for blocking me from credit by using things from 1985 …what can I do? Thank you kelly

    • You should call the Lexington Law firm. They are expert lawyers who handle credit problems and will get you cleaned up in a year or less depending how much stuff you have on your CR.

  • Hello, my name is Arvy Santoya. I previously previewed a link to rent to own homes I believe. The Danny Mar sounds wonderful. The mentioned link is no longer available. Can you provide me with some information regarding rent to own properties?

    • Hi Arvy,
      Thanks for reading! I’m afraid I don’t know which link you’re talking about. Was it in this article? Could it have been from a different website? I’d like to help but I am not finding anything. Sorry!

  • Your analysis based on my credit report is true. I am so consumed by school and daily living expenses that I have not paid any attention to saving

  • Cable, I would rather not have at all, but I use internet to work, so I have my cable at the bare minimum, that still gets me the internet I need to work, at the best speed I can get for the lowest price.. I absolutely will not pay for designer clothes I can make for myself.

    • I agree. I’m cutting cable as soon as my hubby agrees! Lol. I’ve heard of some low cost WiFi options, but I haven’t looked into them fully yet. I need WiFi to work from home so that’s risky for me.

  • Is there a down side to leasing vehicle my son is in college and his car was totaled this week and looking at leasing

    • Hi Jeff,
      Thanks for reading! There are a couple downsides to leasing vehicles:
      – Your son won’t own the car so there may be penalties for wear and tear, or more serious damage to the car.
      – The contract with the dealership with set an agreed-upon mileage which can’t be gone over during the lease without a penalty. So if your son is in college far from home, he may have to limit how often he comes home.
      Leasing is usually cheaper than a car payment and there may be other financial incentives for your son to lease over buying. To learn more, you and he will have to speak to the dealership you’re looking to lease from. Thanks for reading!

    • YES!! Never lease until you read the fine print. If you want to own the car, you will have a ludicrous balloon payment at the end. It’s like leasing a home or an appartment otherwise. You just keep turning the car back in to the dealership. You acquire no equity and have nothing to trade in, the only people who should lease a car are those who want a brand new car every two years to 18 months and then nothing to show for it in the end.

  • I got a video stating I can buy program for $47 and it says add to cart button , below. But there isn’t one . So Is there a code or something to enter ? So I don’t pay the 97.

    • Hi Melanie,
      Thanks for reading! I’m not sure I understand the question. You’re having trouble locating the cart button?

    • Agreed! So many other good options for TV programs, such as the fire stick, Roku or Chromecast that cable and its high costs are becoming obsolete.

  • Good article, and since one probably won’t be buying anything on credit, I would add that by freezing all three accounts, nobody but the CAs will ever see the collection accounts.

    • this may also be reported to the IRS as income of$14,500.00.Sometimes the write off company does not report it. Legaly, they should

  • Your article was fantastic! However, you might want to check the numbering because there are repeated numbers even thought each point is different from all of the others. I counted 12, but the list only goes up to 10. Keep up the good work!

    • Victor,
      Thanks for reading! You can improve your credit score on your own by using the process discussed in our program (which you can access here), or by calling a company like CreditPros (at 855-980-4898) and getting their help to bring your score up. Best of luck!

  • I had a storage unit that was auctioned off by the storage company, the amount I owed them is on my credit , how do I get this off my credit beings they sold my unit. Thank you. Joe.

    • Hi Joe,
      Thanks for reading! It may be worth your time to contact the credit bureaus and request they remove these collections accounts. You will need information from the storage unit company about when the unit was auctioned off. Hope that helps!

  • I’m unemployed unemployed, my unemployment will be exhausted in a month. I own my trailer and 500.00 car. What can they do, especially about my trailer? Thanks

    • Hi William,
      Thanks for reading! We’re so sorry to hear about your situation. But since we don’t know more about your debt, we can’t offer any more advice beyond what’s in this article. It may be worth your time to seek a free consultation from a lawyer. Best of luck!

  • Ever time I have had credit card my credit score has badly dropped. They make it very hard to get out of debt because the interest added on. But my score does slowly goes up without them. I don’t what to be in debt just to have good score. There has to be another way.

  • I read your information all the time, but I’m hesitant to use more credit cards even to consolidate to pay off existing debt. I worry about the “hard inquiries,” the monthly bill and whether or not the monthly expenditure would actually decrease as needed or increase. I thought if shopping for best rates was done for the same purchase, the hard inquiry would show as one incident, such as car shopping. But I see multiple hard inquiries listed for our recent auto purchase on Credit Karma. I don’t want to repeat that with cards. Please advise further.

  • Is this true or not??

    *DO NOT PAY YOUR ACCOUNTS IN COLLECTION*
    *YOU ARE ONLY THROWING AWAY YOUR MONEY*
    Paying a collection company means you are giving your money away to a seedy collection company who strongarms and confuses people into paying these things all the time. Your benefit? Nothing. *Nothing at all*
    The original creditor has already sold the debt to the agency and your credit score is tarnished for 7 years. End of story. Welcome to America!
    Take a swing back at the completely corrupt system that has put you in this situation and DO NOT PAY THE COLLECTION AGENCY EVER.
    Here’s why:
    No matter what happened to lead you to having a derogatory mark — whether it was actual deliberate negligence with a credit card, or completely uncontrollable medical debt — the greedy lawyers and bank lobbyists who set up this idiotic system simply lump all of this debt together in one big “you didn’t pay for this” category on our reports.
    The end result is: you pay higher interest rates for EVERYTHING. Which means *even more money* for the big banks. Good luck getting our government to fix this, too! It benefits those who have all the money, which incidentally are the people who run the government.
    No matter how small the bill, no matter if it was an insurance company’s clerical error / disorganization that led to the mark showing up on your report; It’s there, it’s severely impacting your credit score, and it’s not going anywhere for seven years. Period.
    There seems to be a lot of faux information floating around that you can “pay-to-delete” accounts in collections from your report, but this is completely and totally unsupported by ANY facts. I have *NEVER* seen a single *reliable* reference for how to handle this. If pay-to-delete isn’t analogous to the tooth-fairy, then CreditKarma should offer an integrated service (no 3rd party stuff which just seems like paid advertising) to help with this specific issue. They don’t. Why? Because you can’t do this. Because it’s illegal.
    At a minimum, CreditKarma should have an official “pay-to-delete” info page to dispell these rumors and set the facts straight.

    • There were two times in which I had a “pay-to-delete” work. The first was when the debt was still held by the original creditors collection department and had not be sent to a separate collection agency. The second was after being sued for medical bills by a third party collection agency. Since I actually entered a response to the court, we were ordered to complete arbitration. During arbitration I was prepared. Yes, I owed the debt (typical emergency room admittance while I had no insurance). The collection agency filed for way more than what was reported by the “big 3”. It is important to note that the collection agency did not file for recovery of legal bills. I was ready to let a judge decide and not come to an agreement. However, I did concede to pay only what was reported by the credit agencies, and not a penny more. Therefore, it became a part of a stipulated agreement binding to both parties, that if I paid the debt on a very reasonable schedule, the collection agency would remove their entries. I did. They did. They were removed almost immediately. Hope this helps someone.

    • Thank you for this post. I had a lot of debt that was sold to collection agencies and continue to get harassing calls and letters from them. When I checked my credit report, every one of them had been charged off by the original creditor. The way I look at it, the original creditor has made money selling the paper AND has written off the debt on their taxes, so win win for them. I get nothing by paying off the collection agency. My accountant advised not to pay them.

  • Secured card from First Progress was a life saver. Brought my high 500’s to mid 600’s in less than a year then got a new unsecured card and boosted credit score to high 600’s on one score and low 700’s on another score.
    Great advice. Thank you!

  • Never got the follow up email from you. Oh well, my credit score is at FICO-8 781 as of this month. Solidly in the upper half of VERY GOOD credit. I want to get to 850 and sure I know not many people ever get to that score. The truth of the matter is simple if I do not shoot for the stars the likely hood I will reach the stars is pretty low.

    • Hi Monty,
      Thanks for reading! I checked with our support folks using your email. It looks like the emails are going to the right account but they aren’t being opened. Have you checked your spam folder?

  • Was paying my credit cards bills every month but even thow i wasn’t using my cards the payments never went down even had a lawyer sub pine me and i kept on paying until two years ago i was getting some income tax return for the first time in years ,when the time came to get the return the I.R.S.send mea notice that the return was already collected ,when i send them proof that i never received any refund they discovered that somebody else had stolen my identity.never got to find out who or when that happened except i had to make a lot of calls to different agency but still two years later have creditors calling me is there any end to this madness?one of the three credit co.send me a copy of the repot and there were things bought all over even if i was denied to use the cards whoever had my identity was able to use them i just don’t understand nedless to say can’t buy anything unless i use cash but can’t afford car or can’ buy any
    Thing expensive for the last five or six years

    • Find the accounts that are not yours and fill out a police report, and then give that info to the creditors and the credit bureau, that is a tough situation and would probably need an Attorney to advise you. lol..

    • Sounds like everyone has the idea that an attorney is the only answer to these issues, this is the way that people get in more debt and get no exults, lawyer fees are more than the debt most of the time, there are ways to get this repaired without the cost of a lawyer.

  • I see several comments made with some of my same issues and I do not find an answer to the comments/issues (No Reply) How are we to learn if no answer is given?

    • Hey Lindsey,
      I’m sorry to hear that you aren’t finding the answer to your question! If you’d like, I can posit your question to our writers and see if they anyone has the answer. What is your question?

  • I have a collection for a retail store card. Although the OC has it listed as a charge-off, the actually debt itself is not being reported by the CA on any of my credit reports. I can settled the debt, but what should I do in order for that collection to not be reported

  • My name is Terry I don’t quite understand how you working it but I’m really interested in finding out please give me more information on it thank you

  • Hi live in Neb. Got letter from lawyer in K’s. Said I owed $1,500
    on a judgement back in 2002. I stayed the statue of limitations had ran out. She said oh no as long as judgement is active I owe. That was 14 years ago. They just now trying to collect. Can they?

  • I have been on Medicare and Medicare and on disability scene the 1990’s and living has been very hard for me. Living in low incom hosing
    Is not what I call a way of of life. I have have had a few serge ties and became a diabetic .
    And with other problems that I did not ask for in my life. Also the losing of my father that
    I only meat only in my adult life. This really
    Did hurt. And trying to get my credit together
    Is not east with no help in my life and no direction. I need all the help that I can get thanks for this credit direction it helps a lot.

  • That’s not exactly true. 15 U.S. Code § 1681c clearly defines exempted cases.”The provisions of paragraphs (1) through (5) of subsection (a) are not applicable in the case of any consumer credit report to be used in connection with—
    (1) a credit transaction involving, or which may reasonably be expected to involve, a principal amount of $150,000 or more;
    (2) the underwriting of life insurance involving, or which may reasonably be expected to involve, a face amount of $150,000 or more; or
    (3) the employment of any individual at an annual salary which equals, or which may reasonably be expected to equal $75,000, or more.”

  • Hello, I have been rebuilding my credit for almost 3 years and it is paying off in a positive way. My scores are in the 600’s and my payment history with bills have been excellent. I recently lost my husband to pancreatic cancer in September. Amazingly, I have not been sidetracked with my payment history and I consider this a blessing. I paid off a car much early than expected in September last year and now I am in the process of paying off my new car now. I know that as long as I remain firm and not allow people who don’t want to fix their credit issues to mess with my credit I will be fine. Thank you for allowing me to share.

  • I can’t get a credit card even though I an paying my bills on time all the credit bureaus are reporting me for bad credit they don’t want to see I am doing better my husband and I are paying Honda financial 250.00 every two weeks so we are giving them 500.00 every month the car payment is down to 14 thousand seven hundred and twenty two dollars and I am paying Stephen Einstein and associates 50.00 a month until I pay off the bill for finger hut it went into collections but I have been making my payments 50.00 payments every month and also we have cable we have not been late with the cable company we were late one time and I been paying one financial 169.05 a month towards the bill and we just payed Hudson Valley federal credit union off we owed them 673.00 now we owe them nothing we are going to work on a old bill from sprint soon we owe sprint 14 hundred dollars we are going to start paying them 100.00 every two weeks

    • Contact the Credit Bureau’s and report your recurring monthly bills; home phone, cell phone, electric bill, gas bill, water bill, etc. My score jumped 72 points doint this.

    • Sounds like you need to challenge the stuff that’s on your credit report. Once you get some of that stuff removed from your credit report, your score will go up significantly.

  • Badly managed government supervision over mortgage credit has caused me more headaches than anything else in my 35-year business career. In 1980, failed mortgage cred caused my construction materials marketing/contracting business to evaporate because there was a loss of mortgage credit for my contractors and future home owners. I entered the new business in marketing underground coal mine safety products to area mines in VA, WV and KY to re-establish my business. But by 1984, South American coal from Columbia ruined the price structure for my mine accounts causing mine closings quicker than I could establish new accounts. However, I never lost a dime on accounts receivables but went back to the construction industry. However, again in 2006, we had a 500,000-USD line of credit to build condo units on our 30-acre farm property. Band credit became impacted by subprime mortgages and units could not be sold due to lack of mortgages. We sold the property taking a 400,000-USD loss on its value to avoid foreclosure. I researched four other new business deals; however, none seemed to be viable due to the economy. The problem caused the loss of a considerable portion of my half of the sale contract proceeds. As I had a CDL driver’s license, I tried driving a FedEx contract truck which by this time, paid little more than the costs to operate the vehicle. So I decided to apply for Social Security after developing prostrate problems. Then I developed infection problems from a poorly managed Urology doctor. I refused to pay out more than Medicare allowed the doctor. So now, I have a 450-USD debt which reduced my credit score to 535. But I hope to re-start the mine supply operation since it has potential to make over one-million /annum. But I need investors in a business able to generate 400% ROI/annum. Major mine operations are emerging from bankruptcy and met coal now has 150-USD per ton profits. We have the best materials available on the market and a new innovative packaging system on a product that affords mine workers superior visual sight capability in an otherwise hazardous environment.

    • You can improve your life and get to a very good credit score within a year and 1/2. That’s not very long but it will take forever if you do not get started now. If you have no credit get a secured credit card and start the process of building you credit, pay every month on time and do not carry a month to month balance greater than 10% of your credit limit. Also maintain about a 5% month to month balance on your account so your credit score will not show your credit card as inactive which deducts point from your score. Pay all of your bills on time, use your credit card and pay that card 95% off each month by the payment due date.

      It really is that simple unless you have derogatory information in your credit reports. If you do then you will need to seek out a credit counseling group that has been active since the 1970’s. The reason for their having been active so long is to weed out the scam credit repair companies. Research this well online, all the information is there for your living location.

  • Thank you for all the info, you have given me a good knowledge and understanding about disputing. Is there anything people can do to remove inquires from their credit report, i cant believe how many times my credit was run just for buying a car.

  • This “Peer-to-Peer lending” strategy which you talk about sounds just like the recent elections we just had. It was one hell of an ordeal trying to figure out which one, out of two bad candidates the least worse.

  • Kroger has times 2 fuel points for every gift card you buy. If your going to eat out especially at fast food joints buy cards for them. They sometimes have times 4 fuel points. They have give 50 fuel points every time you fill a prescription at their pharmacy. 100 points equals $.10 off in gas up to $1 off when you use their station. Shell stations will give you .3 off if you use their station with your Kroger card.

  • If you eat at fast food chains anyway get gift cards for them at Kroger they have double fuel points added to your card each time you buy one. Sometimes they have times 4 points. These points save pennies on the dollar at their gas stations up to $1 off a gallon and at Shell stations for .3 cents off. You also get 50 points for every prescription you fill. 100 points = .10 off a gallon.

    • Carol,
      Thanks for reading! To see the list, please click on the next page of the article, listed above the text that says “Related Articles.”

  • I have worked for federal government and non for profit agencies a total of 10 years. However because of my low annual income, filing bankruptcy and raising a family I was not even able to make my monthly payment for my student loans and therefore had to continue to defer them. Is there any way that I may still qualify to have my student loans forgiven?

  • Thank you for responding back to me..please show me a secured credit card for at least $100 I’m on a fixed income.. As I was searching there was one 2 months ago that said only $99 for a secured credit card

  • What can I do to get the hard inquiries off my report faster? They seem to be one of the hot-button issues hurting me the most.

    • Hi Jerry,
      Thanks for reading! To see the list, please click on the next page of the article, listed above the text that says “Related Articles.”

  • I want to know more about these credit bureaus are they a scam and do they have a board of directors and how do you sue them

  • I am 76 years old I had a son that helped me with bills he past a year ago and I have slowly lost my credit . Getting behind in bills more and more.what would you sugest I do

  • Hi I have been rebuilding my credit my problem is I have two accounts that went to court but I settled them before it went that far do i really have wait seven years before they fall off and everything past do on my credit is paid off and haven’t missed a payment my question is how do I get derogatory marks off my credit sooner

  • I have a judgement on my credit report, I am making regular payments, and only owe 1200.00. I have not missed a payment on this, us there away I can get that removed from my credit report? I am trying to refinance my house, and my score is not quite high enough to qualify. Any advice would be helpful.

  • thank you for all you have done I really appreciate it I have been trying to get my credit score for the Last 5 Years she will not give me my credit scores because I will not give them my social security number I do not like giving out my social security number 2NE1 because of that I do not have a credit rating I have not had any late payments car payments rent phone anything I payments have all been on time that I know ofI was incarcerated for 10 years I had great credit at that time before I went and was incarcerated I have been out for 5 years and I’ve been trying to get my credit rating up to no avail I can’t get a loan I can’t get a credit card and I just can’t seem to get a car loan I make enough money and my social security check but yet I seem to be stopped everywhere I go because of my credit report if you can help me I would really appreciate it thank you very much Drew. R Seitz sr

  • The stock market is too dicey for me looking forward into the immediate future. Savings accounts and CDs barely pay out any meaningful interest.

    What I’ve found that pays real returns has been to invest in crowd funding as a lender.

    The 1st is The Uhaul Investors Club, which has been reviewed by The Wall Street Journal and Money Magazine amongst others. There, individuals give hard money loans in increments of $100.00 on hard assets such as Trucks, Trailers and corporate owned real estate. This fund has over 100 million dollars in investments at the moment. Depending on the collateral and loan term the APR paid ranges from just over 3% to just under 8%.

    The second crowd funding investment I partipate in The Lending Club. The lending club makes secured and unsecured loans to individuals with anywhere from fair to excellent credit. The investor picks which borrower and loan suits them in terms of risk,term and reward.

  • 7 years for a collection to stay on your report is way too long…it’s almost as long as a bankruptcy. The credit reporting system is deeply flawed. If you pay or settle a collection account, it should be removed from your credit report no later than 30 days after settlement. Remember, it’s up to the collection agency to determine if they even want to settle the account. Sometimes, they’ll only take full payment. Also, I think it’s ridiculous for inquiries to remain on your credit for so long. I think it should be no longer than a year. I hope at least some items from the bill will considered and pass. We are all prisoners of the system.

    • Yes you are right, we are prisoners of this flawed system. This is how the banks can own your life, so we need these reforms, and more down the line to address the collection agencies that are renewing debt just because they acquired it at a discount from the original creditor.

  • Ive never used credit. So my available credit is 0. I have 2k in bad reports (medical) if i get a pre paid card for 3k and create a balance of 1k credit debt will this balance me out in 6 months? I cant remove the reports even if i pay them so i would just like to come up enough to be able to get a home loan.

    • Its a very good chance your medical is a HIPAA violation, the medical can not sell or share your record with anybody without your written permission, in turn neither can the collector, so in turn this means you have a viable lawsuit againt the medical facility and the collector for 1000.00 per occurance each, your collections if you write them and tell them you want them to validate, not verify their claims, and they dont, thats another 1000.00 per occurance you can sue for

      • I have about $40.000 in collection for MEDICAL BILLS. IT GOES BACK TO 2011. FROM THREE DIFFERENT HOSPITALS. PLUS THE DOCTORS. I am disabled, and only get Social Security I am 74 yrs old and in very bad health .I. Can’t even afford my MEDS every month. Also My Ins. Paid ALOT to Hospitals. .I am at my wits end, My credit score is 560. So I have no credit.

  • I have a niece that has been convicted of many counts of I. D. Theft. Although she did not go to jail she was to reimburse, pay the victims back of what she stole from them, but she has not done a thing and this does not appear on her credit report. How is this possible?

  • I have said all along that once a creditor is paid, they are paid. The current system is too tight and it punishes people far too long. Ten and seven years are far too long. You are actually serving time. Each state has a statute of limitations. My state is three years. That is law, and that is is long enough. I do not feel that inquiries should go against you at all; it’s ridiculous. I support The Honorable Walter’s proposal. Quite frankly, I never liked the scoring system. I can look at my credit report and see my bills are being paid or not. If every day people are going to be held to the grind, then every day people should get million dollar bonuses. We have paid enough, and enough is enough.

  • I think the backlash behind this is, the rich want to stay rich, and keep the poor; poor. Business take advantage of the consumer all the time. It should be a law to have stuff taken off your credit after it has been paid off.

  • How about a credit service reporting agency that rates lender fairness to borrowers? For example, some lenders set payment due dates at 5 pm Eastern time, which is 2 pm Pacific time, a full 10 hours before the calendar changes in America’s most populated state! This trickery often is not discovered until the borrower gets home from work and starts paying a typical batch of bills. Because the transactions are automatically entered on 24-hour computers, there is no just reason for the premature cutoff. It is a predatory practice and should be so noted on the lender’s consumer rating.

  • I truly believe that inquiries stays on your credit report way to long and scores of 600 -640 shouldn’t be considered poor credit.

  • Why is it that you don’t get credit rated for the way you’ve paid your rent on time every month for 15 or 20 years, why don’t you get credit rating for paying your power bill on time Paying your gas bill on time paying your water bill on time your cable bill on time all these are necessity and should count on your credit And Be rated with your credit bureaus just like all of your credit cards which seems to be the only thing that credit bureaus rate you on. This is really unfair.

  • Back in 2013 I applied for a pro-se bankruptcy and did not complete paperwork and therefore it was cancelled. This is now showing in my credit as an actual bankruptcy. Can you explain why please? Thank you for your great help!

    • File a dispute on the credit burea, the courts DO NOT REPORT on your credit bureau, the actually have a department that seeks out public records and applies them results on your bureau, so in turn any court related report on your bureau is super easy to remove

      • The credit bureaus use a couple third party services to collect information from the courts. Any judgement that has been entered becomes public record. Because of this, it is not super easy to remove. In fact that is what the bureaus use to deny these simple disputes. What needs to be done is file a dispute asking the bureaus to provide you with a validation, not verification, of their information. The validation is the paper work RECEIVED DIRECTLY FROM THE COURTS, which as Faith states “the courts do not report” or do they request the bureaus to report anything, therefore, the bureaus need to remove the information as provided in FCRA, even though it is correct. The bureaus may try and fight you on this but be persistent and don’t give up. One thing to remember, you may be able to have this information removed from the credit report but it stays on public records.

      • Hi.. I had two judgements filed against me.. I settled and paid them without going to court.. the are on my report.. one has no file date and doesn’t say paid.. the other says paid.. I wrote to both courts to stop providing and to remove off their dockets.. one court returned my letter saying that I have nothing listed with them.. the other court returned my letter saying incorrect address. I got the address off the certified letter. Now what????? Help!

        • Ally financial. Auto lender that do not care about customers, only how much they can leach from you… I recently… last year.. suffered a total loss of my vehicle.. insurance paid, all extra warienties were credited back,, Thenni was told that the account was paid and closed… well. Not… i found out via a ding on my credit report that now they are saying i owe 9k more .. i call and can never get a straight answer . Now my scores have dropped to the botton.. and all my limits on my other cards have collapsed. Is there an honest bank out there any more.. any ideas..

  • Let’s do some real good here and wipe out the “loopholes” from US Code 1681c , specifically, (1) a credit transaction involving, or which may reasonably be expected to involve, a principal amount of $150,000 or more;
    (2) the underwriting of life insurance involving, or which may reasonably be expected to involve, a face amount of $150,000 or more; or
    (3) the employment of any individual at an annual salary which equals, or which may reasonably be expected to equal $75,000, or more. Forgiving student debt is another.

    • What you seem to be describing here is a Racketeer-Influenced Crime Organization: a totally predatory negative credit reporting network of negative credit reporters & companies who ‘hold’ negative computer reports gathered & underwritten for credit reporter borrowing under insurance/re-insurance policies of $150,000. These negative consumer credit companies then are permitted, with some government & court approval, to try to ‘collect on’/extort from forced ‘customers’ with much less ever actually borrowed regardless of repayment.

  • The “Forever Club” also includes (1) a credit transaction involving, or which may reasonably be expected to involve, a principal amount of $150,000 or more;
    (2) the underwriting of life insurance involving, or which may reasonably be expected to involve, a face amount of $150,000 or more; or
    (3) the employment of any individual at an annual salary which equals, or which may reasonably be expected to equal $75,000, or more.

  • I 100% agree with the propose bill by Walters.It is time for lower class citizens of this country to rise up against the unfair treatment done by creditors and those who have power to destroy your credit.I pray this bill passes..I’m all for it!

  • Creditors should not be allowed to sell your accounts over and over again and they keep resurfacing on your record well past the 7 year period allowed by law forcing you to have to constantly challenge those items, so for that reason, I offer my support to Rep. Waters.

    • I thought this practice was called “parking” and it is not allowed. It is really frustrating, I would check on that if I were you.
      Hope this helps

  • I have followed this site for years, it’s very informative. I bought a car, paid cash for it, the dealer won’t report bill as paid off even with me asking them several times. What can be done about this?

  • what do you do if an installment loan keeps updating a very old account as if it were just yesterday and it be on you credit report several times from where it has been sold?

    • They are violating your rights and you can sue
      cace v. Lucas, 775 F. Supp. 502, 505 (D. Conn. 1990) $1000Creditors or collection agencies, and credit bureaus if they try and â??Re-ageâ? your account by updating the date of last activity on your credit report in the hopes of keeping negative information on your account longer Consumer protection afforded by the FCRA

      • It is also on my credit report way back from 2006 and it is telling me it has not been updated in 3 to 4 months what do I do.

  • I paid off three of the collections account, back on 9/28/16. why doesn’t my credit report show they were paid?
    My federal student loan has been discharged, in fact, they owe me money. I sent a copy of discharge notice to all 3 credit score people. When does this all go away?

  • A company inquired about leasing a car. I did not initiate this inquiry. How do I stop this from happening again?

    There is an incorrect judgement on my credit report. It was placed last year. How do I handle this?

  • Getting married to a guy who was a big spender. Money was printed to be spent. He had to buy name brand. Generic was not good enough for him. Look & listen to the red flag warning signs.

  • When my bankruptcy fell off my score went up! How it would go down baffles me. I am now in the high 700’s. Both transunion & exquifax have me @ 780 & 752. Why the difference? IDK.

  • I have several Credit inquries from dealers on my credit report, I was tokd the gave to stay for 2 years is that true? If not what can I do to get tem off

  • Im with a credit forum, its amazing how much the average individual has little unknown violations against them by the credit bureaus, for instance, did you know that court related issues such as judgements or bankrupcies are not reported by the courts, but the credit bureaus actually have a dept that seeks out public information and adds it on themselves, its super easy to have removed, or that med records being reported without your written permission is a violation of HIPAA, as well they could be sued for upto 1000.00 paid to you for this violation, also did you know that when a credit bureau says they verified anything on your credit report, you have the right to know exactly how they verified it, if it wasnt a validation of proof of you signature, it should be removed from your credit report if you have requested validation and they did not provide it, and one more, you can request credit bureaus to remove all non account holding inquiries, old addresses, and old employers, failure to do so upon request is a violation if your right. All things that you request and doesnt get accomplished by a simple written requst (note, never sign anything, only send with your name just spelled out, plus any copy of proof of your identity, simply copy and black out any signatures you may have on it), can be reported to the Consumer Finance Protection Bureau in form of a complaint, these guys are super awsome and will help you look after your interest.

  • Thank you for the detailed informative article.
    What date was this article written, are all details current? Today is 10/19/2016.
    Thanks again, it is hard to find reliable detailed information on this topic.

    • Patrick,
      This article was published on Oct. 22, 2015. We are currently in the process of auditing our content to make sure older articles are current. If there is something that you think is incorrect or out-of-date, please let us know and we’ll be happy to look into it.

      Thanks!

  • When I receive an email saying click here to see how long an unpaid debt lasts and I do not get the immediate answer I was looking for then I will unsubscribe.

  • I’m current repairing my credit. After paying down debt, making on time payments..how long will it take to raise my credit score?

  • i AM A VICTIM OF ID. SCORESENCE AND LEXINGTON LAW ARE WORKING ON MY CREDIT BUT I STILL IN 500-520 WHEN MY CREDIT WAS 785. PLEASE ADVISE ME WHAT TO DO, I JUST BECAME A WIDOWED AND LIVING ON SS ONLY. THANK YOU

    • You may consider senior subsidized housing. You only pay one-third of your income for rent. You would have to get rid of your house if you have one, and settle for a one-bedroom apartment, but it is less maintenance, and much less expense. Consider ditching the car. A lot of senior places offer rides, and free or discounted events, shopping trips, doctor visits, etc. If you ever decide to go this route, shop carefully for a place. Research. Ask around. Not all places are as good as others.

    • I used Lexington Law years ago and ended up calling and reporting them to the BBB, they are Notorious for being “FOOT DRAGGERS” which cost me (and you) quite a bit of money while they purposely took their time disputing items on all 3-credit Bureaus, you see, the Longer they take to complete the job the more money they make, nice little, sneaky trick. They also Disputed a Positive HSBC Card, the only credit card I had at that time and HSBC Closed a perfectly good credit card account because of them. I was Livid. Anyway, once I reported them to the BBB they couldn’t return my money Fast Enough, it was almost comical, but then again, nothing is funny about having bad credit or having to pay someone to fix it. I still have the emails and the BBB Records to prove my story.

  • In my earlier following of you, you said that we should never go with a credit repair company that required to pay up front without doing a service first. Just wondering what changed?

  • What other options are there for stopping collection against me. Also why is it not mandatory that if I have to pay the collection, that I receive the property.

  • I have inquiries that I didn’t do other things such as students loans I am trying to get off my report I need help

  • I never had a “Discharge” But we withdrew our filing and have had ” Dismissed” logged on our reports for the past 8 years??? How do we get that taken off????

  • Good advice. It is also what Financial peace university teaches about building an emergency fund and beginning to whittle down on debt.

  • With higher-than-fair interest rates and late fees, it’s trickier than a tick in a hairy hide to pay down debt. I’ve always encouraged debt settlement as a viable means of settling the score, if one has the ability to set aside funds on a regular basis. Next best is just don’t pay and hang on for 7-1/2 years. You’ll need your money to pay for things in cash, or buy with a debit card. Don’t keep punishing yourself. The credit card companies were stacked against you from the beginning. Thank the Office of the Comptroller of Currency for that. From 25 years managing a national collection agency.

  • Can you please relay the cost of your credit repair services to me?
    My husband and I are interested.

    Thank you

    Karen Hughes

  • Look I’m very low income but I still would like to buy a home we’re on section 8 housing are there any other programs and loans that we may qualify for my credit is barely getting out of the red zone any help would be great

  • Get emails from websites that do the coupon match-ups for you. It is a huge time and money saver.

    Also, sign up for the emails from your local stores to keep abreast of deals and freebies.

  • I have a secured master card that I have had for about a year and have beening paying on time. Now that my credit score has gone from 509 to 770 how do I get the same card company to give me a unsecured card and get my money back that I had to deposit enorder to get my unsecured card?

    • If your score is 770 you should have no problem getting that card company or any other card company giving you an unsecured card. It’s pretty simple. Fill out an application!

    • William, you have to call the credit card company yourself and see if they offer unsecured after a certain amount of time because some of the companies do not offer as an option so the best thing to do while your score is up is to check out some unsecured card companies and find one​that fits you and then fill out an application. Many companies will solicit and pre offer you an unsecured card when your score starts rising. And after you get one or maybe two then you can do the same as you have done with the secured by paying on time and eventually you can close the secured and request your refund, just make sure you are in the time guidelines if they have one.

  • I am going thru a hardship. my income dropped from 45k up to 50k to 2250.00 a month.,I tried real hard to keep up.
    Well I decided to go thru a debt relief. I felted this would be fine instead of going bankruptcy. I did what was ask of me from the firm I was going thru. Still giving the firm the power of attorney the creditor would call me. I would talk with creditor and explained the situation. I was never nasty to anyone even to those who were nasty. well I had one creditor who would not except anything. so here late fees, interest etc.added up o am paying them 177.00 a month. it is very hard to paid at times
    I even asked them to take off the accrue interest and fee. no way. I explain the hardship to them
    also needing more surgery I put off has caused me problem. I’m my younger yrs, just married something like happen.. I wrote to the people we owed and how mucheck we could afford to sent. no problem…… Here is a company american express wouldn’t go thru a debt relief. so they put a hard ship on. I,AM not running from my problem as a senior I was trying to get help without going bankrupt.

  • Thank you for this article It helps my attitude while my credit is sinking. Not to give up and still make efforts to stay good with creditors

  • I only have medical bills and student loans on my credit report now student loans updated but the medical bills I owe on them one score 610 one score 628 one score 595 what do i do

    • I would love to here an answer to this I’m in same boat with medical with a charge off I hope someone will leave an answer and Lexington law is not it

  • Yes I am. interested in this program my name is Ruben Robertson I am working with the program now straight out my credit I have a decent job and I make a decent income I like the find out more information and regards to this program my phone number 773-454-3673 I also would like to know what all I need to get started with this program soon as possible

  • I am filing a chapter 7 bankruptcy in CA. I know the bankruptcy will be listed on my credit reports. Can’t I get the collection accounts removed from the credit reports because they were included in the bankruptcy? And is it true that if I forget to list a creditor, the debt is still discharged in the chapter 7 bankruptcy if I have no assets? Thank you for helping so many people with your great information and advice!

    • No, don’t go there! There is hope for you!
      Just stay positive & do it yourself!
      Whatever it takes!
      You can do it!
      Hang in there!

  • I don’t believe that your information on how long a chapter 13 bankruptcy stays on your credit report is correct. It falls off 7 years after the filing date. The discharge date is not considered.

  • It was suggested that i get a secure credit card make timely payment for about 6 months and that would help to improve my score. I was actually told to pay full balance. Im not paying full balance but i am making timely payments, and staying under 20 percent usage. My credit score improved almost instantly. Haven’t seen much difference over the last 6 months from the initial jump. Im now able to get approved for unsecured cards. Also, if you’re going to secure a card with a thousand dollars. I would split and do 2 cards at 500. I believe it will double your results.

  • Is no pay, late pay on debit/credit cards the same? If so, I thought that after 7 years they could not put a new default date. My understanding is that it’s against the law to do so.

  • I have a payment arrangement with a collection agency.did not ask for a settlement letter.Is it too late.have had this arrangement for 3 months and have payment made directly from my checking account.

    • Hi VA,
      There’s no list out there of all the accounts that have been hacked yet. However, if Yahoo thinks that yours is one of those that was compromised, you will be prompted to enter a new password. Do so as soon as possible. Additionally, remove your important information from your Yahoo account (such as emails that may include sensitive information, like credit card numbers, passwords, and more) and watch your accounts to see if anything changes. Hope that helps!

  • My credit have information with fraud on it. And Equifax will not let me dispute them. It makes believe that they are trying to keep my score down as well.

  • why is it that i have debt over 7 years ago that was sold to another company as debt that keeps rolling over and seems to extend the expiration date.

      • All you have to do is send letters to the three reporting bureaus, explain the situation, last date of transaction on the debt. If it has been 7 years since it became delinquent (unless you screwed up and made a payment in the past 7 or years), they have to completely remove the debt, no matter how many collectors are reporting it. Also, these are really easy to get rid of because it’s the burden of the collector to PROVE the last date of transaction. If you dispute in this manner…The collectors will not lie, if so and you can prove otherwise,,,,the reporting agencies will not deal with them anymore,,,my Aunt works for Trans Union..

        • Sorry Floyd,
          Please read my letter above about LDAs and Debt Extending. Also a client has to contact the CA directly, preferably by “certified mail-return receipt requested” to stop the collection. All credit bureaus only do what their customers demand, not others.

    • Each company can hold the debt up to a certain amount of years in hopes that you will pay a full or partial payment. When it is obvious that you are not looking to pay the debt, they then sell your debt to another company which generates another cycle of the 7 year period starting from the date in which the debt was purchased. The good news is that most companies will not purchase the debt if two or more companies have done so because they know that you’re not looking to pay the debt off, and at that point the company is stuck with it. At this point, the company will call more frequently to get you to pay off the debt. Remember that they do have a statue of limitation which is 3 years. At this point they can’t contact you any longer about the debt, however, they can sell your debt to a willing collection agency.

    • I have bad debts due to a divorce on my records over 10 years that keep rolling over to other companies I’m totally disabled from a stroke can’t work anymore 70 yrs old how long is this go stay in credit bureU? Thank You

    • Hi David,
      It is illegal for a collection company to extend a debt beyond the original debts (LDA))-last date of activity, this is called “extending a debt” and you can file a cause of action against a collection agency for doing so. If they attempt to do so you can collect $1,000 in damages. Check your states “statute of limitations” on debts, you will probably find your debt became expired for collection at 4 years and is already dead. If so send them a “Cease and Desist Letter” and the debt will probably disappear.

  • I’m ready now to fixed my credit score and you have already my information from last year I was confused between you and the other party they fixed but not all now I need it to buy house for my kids I need your help

  • hello, i have my credit reports ready to fix my credit thank you for sharing your secrets. you arew an nonselfish person.

  • I purchased a share of a recreational property in the early 80s with a friend of mine (in my name, as I had decent credit, and she didn’t). When she joined the military and was stationed elsewhere, we tried to sell the membership (Supposedly a share in the actual real estate, willable to my heirs, not simply a timeshare.) the company blocked the sale. They claimed they had the right to refuse any investor. Several years later, the company was purchased by Worldmark, then by Wyndham. I was sent papers indicating my number of shares. Since I was by then disabled, and unable to use the membership, I tried again to sell and was again blocked. Then I was sent a letter telling me I was in default. Several times I have had offers to buy the membership shares, but it consistently comes up as in default, unable to be sold.
    Last year I had a problem with identity theft and found that the “mortgage” on the property is listed in good standing. I am not able to benefit from this status, so it really didn’t make a whole lot of difference to me. I have been told that there was some lawsuit about the maintenance fees, and the company lost, so my “property” may not currently be in default. I just want it removed from my record. It has been about thirty years since I made a payment, how can it still be on my credit report?

    • Mary,
      So sorry for your troubles! It sounds to me like there may be a mistake on your credit report that is keeping it on your record. You may want to try contacting your credit reporting company to see if it can be taken off. Here’s an article on how. I hope that helps!

    • Hi James,
      The amount of time you stated can stay on your credit report for seven years and 180 days. The action the company took regarding the unfulfilled payment may also change that time. Thanks for reading!

    • This is why you should never allow a “paid less than full amount” note on your account, unfortunately this is almost as bad as not paying it at all!!
      Try to get all partial payments to state, “Paid-settled, or simply paid when paying”
      One other thing I keep reading about is about resetting the clock by debt collectors, the only LDA,”last date of activity” is the date the debt became overdue, selling a debt to a collector does not reset the LDA!! Normally the LDA starts 30 days after a debt is due, and contrary to some beliefs making a payment does not restart the clock unless the debt is brought up to date. I’ve had a few people make small payments, $25.00 or so and run the debt out out to the 4 year SOL and then have it canceled by a “cease and decease” letter. Not recommendedl but effective.

  • So a question… for example if I owed Capital One or American Express or discover after a 7 to15 year period of time and it is not on my credit report would I still be able to get credit through them today if my credit score is good?

  • You forgot to mention exempted cases, when, according to “§ 605. Requirements relating to information contained in
    consumer reports [15 U.S.C. § 1681c],” Credit transactions of $150,000 or more, life insurance for $150,000 or more, employment for a position expected to pay $75,000 or more. So, nobody may expect to get away with bad debt, even after seven years.
    .

    • Call your student loan servicer, where they are currently. I went with Elite Student Solutions and they wowed me with fact that I qualified for forbearance after 10 years because I work for a non-profit (health system). They charged me almost $500 up front and I would be paying a fee every month for this ‘Service’. I also found that they were doing the same thing the debt settlement companies do…collecting my payments and letting them pool, not paying anything to my loan servicer.

      I called my original servicer because I noticed they were not getting paid. I locked my account so they did not have access to it and I am paying the original servicer my payment, which is much less, and without the service fees. I could have probably negotiated this on my own.

      And I have to see if I can get any of the money back that I paid to Elite. I hope I can because it was a good chunk of change.

      • And mind you I have been paying on my school loans since 1997, went back for my master’s and I STILL owe over $45K >_<

    • Hi Michael,
      Bankruptcies that have been dismissed may stay on your credit report from up to ten years for a Chapter 7 or seven for a Chapter 13 from the date of dismissal onward. If it’s still on your report after this time period has passed, it may be a mistake. Consider contacting your credit reporting company to get this fixed. Learn how to do that here. Thanks for reading!

      • – Chapter 7 bankruptcies must be removed no later than 10 years from the DATE FILED. Chapter 13 bankruptcies can remain on your credit reports for 7 years from the DATE OF DISCHARGE, though this date may not exceed 10 years from the DATE FILED. For a Chapter 13 the date of discharge and the filing date are not the same dates.

        • I thought it is required that they go off the Bankruptcy Discharge Date for Chapter 7, and it is 10 years from the discharge date.

  • I really would like to thank Mike Roberts and the credit solutions program. 2 and a half years ago i was drowning in debt and had horrible credit. I tried hiring a credit law firm full of paralegals for help, which they did they managed to get some small items off but we hit a wall and i felt like I was paying $99 a month for nothing. Using the credit solution program i was able to call the creditors my self and negotiate a paid in full settlement at a much lower cost. The credit solution program also taught me how to build my credit even when i still had debt. Today my Fico score is at about 736 and im closing on my first home purchase. To this day i still read the articles and always direct people to this great program.
    Thank you so much

  • I think if they told me they were charging me a higher rate I would tell them goodbye and move on. Who weds a Hiller hardtop anyway? Morons.

  • My #1 Killer is late payments. My issue is that I missed 1 payment over 2 years, no late payments before or since. That late payment will be on my credit report 10 years. That’s CRAZY. In addition, although not listed as one of my killers is having a HELOC, or second mortgage. The credit agencies report this as a line of credit and it’s added with your credit card debt. I have very little credit card debt, however, my HELOC balance is always reported as the credit line. Ex: If my HELOC balance is 32,500, it appears my line of credit is $32,500, making look like I am sure 100% of my available credit, and I am not.

  • Collecting money is actually sales, and the best collectors will not make any debtor pay, unless the debtor has the capacity to pay and the desire to pay, the same criteria for extending credit in the first place. Notwithstanding that, the number one reason why debtors pay off collection accounts is to qualify for a home or auto. 25 years as C & C manager.

  • Thanks for information. If there was a way to get out of the mess I am in I would feel a whole lot better. Two years ago I had almost perfect credit for years always paid on tim. Then wife passed with cancer my rental houses destroyed stocks that were in margin calls completely depleted my wealth. So I hit bottom with a bang. Would love to pay back the 60 to 65 grand but just don’t have it.

  • I have had the same item reported twice by the same company a year AFTER I had the item removed. It’s from over 6 years ago. How can I get these people to stop? It’s a company called One Advantage. Please help me!

  • I had an auto loan with Chase and NOT ever missing a payment which was huge!!! They did something illegal and I now want my title and don’t know what to do. It’s too risky to write much detail but they put my loan on my credit as a CHARGE OFF, again no late or missed payments. Harassed family and friends VICIOUSLY. I asked a relative to make a payment if I sent money for it because I didn’t want my (then estranged husband) to know where I was going to live. Although they continued to get payments from me by wire they went into my relatives account and took 2 maybe 3 payments from that account without permission! I found out over a year after! My ex husband has nothing to do with the loan and was not allowed since he had bad history with them including charge offs. I still have the vehicle. I bought it long ago with MY credit and not in bad standing. I reported them to both government agencies Fair Credit Reporting and the other, also BBB. I have letters stating there was no response from them and that there is now a permanent negative mark on them for Unfair and illegal business practice and punishment will follow. Problem is that I tried to get it registered, the DMV said no matter how hard they tried they refused to comply. I have researched and found that CHASE AUTO has a LONG LIST OF HORROR STORIES LIKE MINE! Also in my case I found the dealer has a hand involved. I went in with a pre approval for a trade in and had a vehicle only 1 year old. Excellent standing for years with them too! The finance manager said I was declined (NOT), and they would find another finance company. Into 4 months from the day I got the new vehicle I still had no finance. I demanded my other vehicle to be returned many times. I was contacted by a person who left the Dealership who told me my trade in was SOLD before leaving and I had NOT decided to buy yet. I was window shopping basically. eight hours later I drove the new one home with a signed agreement to return my original vehicle the next day. The finance manager kept stringing me along! There is a lot more between my lines on their side but foolishly he had me sign 3 or maybe 4 copies of the loan application! FRAUD! I don’t know if I have the documents now I may have lost them in a couple of moves. The government agencies have copies. They have been forced to leave my credit but I have a vehicle almost 9 years old with 30,000 miles never hidden from them and no title and unable to register. This was all done during the fraud all of the banks and finance companies were loaded with PREDITORS.
    My credit is back from ID Theft and Fraud now and it was not easy. I used to carry 800+ fico.
    Any suggestions?

    • Hey Sharon, thanks for being a reader! FICO is one company that offers a calculator to help you find your credit score. Please see the linked article for more information.

    • FICO (Fair Isaac and COmpany) is a company who first designed and offered an algorithm to analyze and output a score based on the information in your credit reports maintained by the three credit bureaus. FICO offers what has long been considered the industry standard of credit scores for many types of lending. The most common of the FICO credit scores is know as FICO-8 used for general consumer lending, personal loans and credit cards. FICO also has other algorithms for specific lending like real estate, auto loans and other purposes like housing rental. In addition to credit scores FICO offers the use of their credit scores to lenders and consumers on a fee per score basis.

      Today FICO has competitors who also produce credit scores but the score they develop most time are not the same as the FICO score. For example the VANTAGE score is similar to the FICO score but the algorithm was written as a combined effort of the three credit bureaus. I assume this was done as a cost saving method of offering a credit score to those who desired to pay the bureaus for their in-house credit score.

      Because FICO has long been the GOLD STANDARD of credit scoring, FICO is the credit score you want to rely on for the best accuracy of having similar information to what lenders have available. This is what sets FICO apart from all of the other offshoot companies who have set out to develop their own credit scoring system(s).

    • Each credit bureau is a proprietary algorithm. Each credit score can and will be a little different from one another. The FICO score is the one created by the Fair Isaac Corp, and you should care about more about it than the others. Your lenders sure do. 90% of all lenders use FICO, not the other three’s scores.

    • Hey Duane,
      You will need to find a company that offers them to find out more information about individual loans. We mentioned Prosper and Lending Club in our article, but there are other options out there on the World Wide Web. Thanks for being a reader!

      • I just found out that a medical bill also 4yrs ago. Was not covered by my insurance company. Now I was in collections I didn’t know about this problem. It should have been paid by my insurance. Why didn’t I get anything from collections except a call I answered one day. He said it’s been to long? I didn’t even know I owed. Within days of me answering the call. It went straight to my credit report for no payment mark. It’s unbelievable that they can wait yrs to attack you and your CC score. When your CC is good. Bam your done!

    • A charge off just means that the original creditor has stopped trying to collect on the account, and yes they can still take you to court, most big company’s have collection agency’s they are contracted with to collect on the debt for them, once the debt is collected, the account goes back to the original creditor and you should receive a letter of paid in full, unless you settled the amount owed for less, then you would receive a settlement letter, your credit bureau would update as , acct settled for less than what was owed.

    • A charge off is when the debt collector has written off the debt and either sold it to a collector or has there own collection department that will still collect or try to collect on the debt, this is nothing more than a company saying they have written it off as a loss.

  • Heard about credit fixing but not taking care of liens and judgment situations , please post something about companies that can help with that ..

  • If you are on Medicare can you have an HSA? If so how does one go about creating this account? We pay for our Part B and also for Part D.

  • I have try many time to get a credit card and the owes say sorry we can’t give you credit at this tie you are a risk And I don’t know why my credit is Good , so my credit report say .
    Experian is 727 , Trans Union 691 , Equifax 671
    My credit is good to less a car , I got a car on October 2015. I been paying for a year and I pay every month never late and that don’t count in my credit report. I move lass year on December I was at approve too. If my credit is bad I wont be approve other. so I don’t know why I cant get any credit card any help will be nice.

  • The Obama Administration has made it very difficult for my business to survive because I have been in the energy industry and the construction industry for over 35-years.Therefore, I chose to retire in 2008 until the next administration could design new policies to strengthen our national economy. Its better to quit than to go bankrupt trying to do the impossible. Therefore, I do not pay bills where I receive less than satisfactory performance.

    • How do you blame Obama for you not paying your bills? If you created a construction company, diversify and create opportunities to pay your bills. Stop being a victim to government. America is the greatest place to make a buck, the government can’t stop you from making money.

    • I cannot think of a dumber thing to attach to Obama. First, he entered office in January 2009, during the worst financial crisis in generations caused by reckless deregulation across many industries combined with unprecedented Wall Street excesses…so your “retiring” seems to be a strategic choice to take your gains and employ a wait and see approach during a down cycle. After stabilizing the economy, Obama proceeded to oversee a long, steady (but slow) recovery. Construction and energy sectors did very well during this time — assuming one was nimble and capable of taking advantage of the many opportunities (i.e. Massive growth in natural gas production, solar energy expansion, etc., and major growth and expansion in home and condo markets). It seems to me that you are just looking for another forum to blame Obama for your troubles — too bad your stupidity caused you to miss out on the many opportunities over the last eight years. I wish you better luck in the Trump era.

      • E…you need to look at history…the O admin had more losses then any afmin in history. This just goes to show the stupidity of individuals that defend that tragic decade …

  • I have a few payday loans that aren’t too out of control but I have a personal a loan that is quite a bit what will happen and how can I manage pain these I’m afraid I’m not going to be able to pay them what will happen and what can I do

  • I appreciate your insightful information on debt settlement companies. How long does closed accounts and debt settlement remain on credit reports? How long do unpaid doctor bills stay on credit reports?
    Thanks
    Tulip

  • I have an issue with a second-party collection agency that purchased a write off from a department store. It has been longer than seven years. They also cannot show what I purchased and I have always had an issue with the amount owed. The collection company refuses to remove the item from my collection report. Extremely frustrating.

  • Paying off CC accounts is a general requirement of lenders when one is applying for a home or auto loan. The score, however, is based upon risk, not paid debts, so a score will not rise simply because one pays the debts. If the loan is approved, a consumer then has the opportunity to rebuild. As far as the seven year rule, 15 U.S. Code § 1681c– “Requirements relating to information contained in consumer reports”-are not applicable in the case of any consumer credit report to be used in connection with
    (1) a credit transaction involving, or which may reasonably be expected to involve, a principal amount of $150,000 or more;
    (2) the underwriting of life insurance involving, or which may reasonably be expected to involve, a face amount of $150,000 or more; or
    (3) the employment of any individual at an annual salary which equals, or which may reasonably be expected to equal $75,000, or more. Obviously, there’s need for still better pro-consumer legislation. From 25 years as a C&C manager.

  • I have reports past 7 years and are still there as active ,,,, by collection agencies ,,, they were post for 2006-2008 Yet ,, it reports in collection ,, only one managed to garnish 10% by sneaky tactics , i once hired a lawyer to make a deal ,, but 2-3 cards
    were not willing to settle ,, so all was diminished as in making a deal!! I owe , well one credit beauro says 7,500 another says 4,000$ ,, i have credit cards ,, because my score was fair ,, but these past accts are making it worse ,,, back in 2006 , i got hurt to where i lost everything !! What should i do ? I would like to make deal but they ask for more than i can afford because they accumulated interest that is unbelievable !!!! i rather suffer ,, than pay more in interest than what i reall owe!!

  • How can you find out what the original start date of a collection account is so one can ensure the 7 year statue please? I love your information. It has been extremely helpful!

  • I called to have my report purged of the judgements that I either paid off your that are on my report for 10, 12 or more years. I have called the insurance companies that paid the claims from hospitals, only to be told they don’t have to remove the false report ever.
    Some of the accounts were sold to numerous collection companies and each one demanded payment for debts that I paid in full to a different collection company. It is so bogus, that this happens. How do I fix the problem.
    Thank you for your help.
    Guy Reddoor

  • I just wanted to say ur information is highly appreciated because a lot of people don’t know that credit is like a sport if u don’t know the game how will u b able to play it!

  • As gramma used to say “knowledge is so so powerful son!…..with your shared knowledge there’s hope for credit power! Thanks for giving us a chance!…

  • We have no problem financing vehicles or being approved for bigger items. My husband is retired military of 24yrs and has now been with Time Warner Cable for 4 yrs. Our credit is right at fair. Some things will fall off this yr and next yr. All 3 credit agencies have different things on them. We just applied for a Shell gas card and was turned down. Any suggestions on a card we can apply for? I constantly get pre-approved offers in the mail but don’t apply. If we can’t get a simple gas card I can’t see being approved for a Visa card. Thanks in advance for any suggestions.

  • my credit score is 512, i have delinquent some medical bills i had insurance at the time how do i get them cleared from my credit score, i have no payments,but when my wife and i spit up she left me owing the bank we were banking with $200 if i have to pay this i will,also,i checked on a credit card but i have to pre-pay $200 probably to build my credit trust.

    • Dispute them with the credit bureaus and tell them your marriage status has changed and those bills are no longer your responsibility. Ask them to remove the bad info from your report and to send you a copy of your new report. When you contact them do it by Certified Mail, this way your request will be acted upon in a timely manor, they only have os long by law to comply.

  • Roger Ury
    I have been with Credit Repair.com for almost three months but did also had a referral from a friend for Lexington and I must admit the process was pretty much as you described a few things have been deleted off of my credit and then it seems things have come to a halt.
    Unfortunately my credit score has gone down a few points instead of showing an improvement. Obviously I will be making a decision shortly for other options.

  • My greatest trills came from lack of employment for a period of seven years. I worked for a company that killed people when they ran out of funds in a nursing home. I was accused of abuse to cover up the truth. So I wasn’t able to get work in the health care industry in Minnesota. Then I went to Über who did the background and found me innocent and hired me as a 1099 employee. I made that work for two years then the police department were writing folones charges against me and I never was heard in court I was made to pay the fines and removed from the system. When I was able to get into the courts I was told by the prosecutor that I was grossly miss represented and it will cost me $1500 to correct the problem. Any time outside of these two business I was told I am over qualified so no one would hire me.

  • You guys are very good at what you do everything is so informitive i got my credit up fomr 612 to 668 ans 671 but cant get it ant hifher ans i did not do experian yet but thanks ill probably be calling you for morw boost have a nice day

  • The three reporting agencies are stupid dictators. They will not fix their own mistakes in the files. They should not be allowed to control everything we do!

  • Hey guys Iam navy retired living in the country of Panama..OK WHAT GIVES WITH THE STORES AND RESTAURANTS NOT WANTING TO TAKE MY(USAA AMERICAN EXPRESS CARD)THEY ONLY TAKE MY(VISA /MASTER CARD)AND I HAD MY SPONSOR CHECK AND THERE IS NO(ATM WHERE I CAN GET CASH ADVANCE OFF THE CARD..WHAT’S UP WITH THAT????PLEASE LET ME WHY THAT IS..(I LOVE THIS SITE IT GIVES ME VERY IMPORTANT INFORMATION THAT I NEED)THANKS BE SAFE BE WELL. ..

    • Hi Michael,
      Thanks for your readership! Sometimes different countries have different laws about using overseas bank accounts. That could be interfereing with your ability to access money in Panama. Have you considered using a local bank? Learn more here.

  • What about when the IRS put lean on your credit and a judgment how long does that stay in does that hurt your credit really belly?

    • Hi Michael,
      Thanks for reading! You will find the fourth and fifth items on this list on the next page of the article, which you can find by clicking on the big, red 2 at the end of the article.

    • Hi Herman,
      Thanks for reading! You will find the fourth and fifth items on this list on the next page of the article, which you can find by clicking on the big, red 2 at the end of the article.

  • My credit score is 647 and my wife is 680. Our combine income is 127,000 dollars and we can’t qualify for a conventional loan. Why?

  • Mike you recommend credit pro is they as good as your credit solution. I would like to use them. I’m using one called National Credit and they don’t seem to be accomplish what I want. I have a credit score of 450 that is FICO score but with score sense it is 565, 545, and 585. By the way I just bought your Credit Solution Course.

    • Hi Herschel,
      Thank you so much for your readership! We do, indeed, recommend CreditPros. If you’re interested, give them a call at
      855-980-4898 and they can help you bring your credit back up to speed.

        • Belinda,
          You are correct! Credit Pros currently does not offer their services in Oregon, Maine, Kansas, South Carolina, Georgia, Minnesota, and California.

  • Light at the tunnel’s end. Thank you! This cedit education has been immeasurably helpful. Had access to this information been available earlier in my life, I would have avoided pitfalls identified here.

  • How do I get my score raise up, does it take more than I new account to help me improve. And why are these cars still on my credit report saying I still owe but I do not have the vehicles.

  • Right now, I cannot do anything that will affect my credit. I’m desperately trying to find some apartment complex that will rent to me after bankruptcy and foreclosure. I know that anything I do even positive will at first negatively affect my credit and it is so low right now I might be living in the street. I have to wait until I get into an apartment complex. Went from 830 down to 521, just from bankruptcy. Will fall lower when the foreclosure hits my credit, probably fall to 400-450. This after paying every single bill on time every single month since the mid 1980s.

  • Do you think I can a credit wil capital one with my credit score of 583? Credit karma said capital one very good?

  • Hey Mike, I want to thank you for all your help. You made this so simple. I have been with you guys for about nine months. I have raised my credit score up to 775 so far. I am shooting for 820 and I started with a credit score of 486. WOW – I’m so impressed with your Credit Solution Program. I will keep reading your emails cause I know I will learn something new. I will let you know when it gets to 800. Your program is so easy to follow and understand. It’s as easy as 1 2 3. The low cost of the program had me skeptical BUT – It’s the best and smartest dollar I spent. Again, I Thank You & I’ll let you know when I hit the 800 mark. I’M SO HAPPY

  • Does the statute of limitations law on reporting a negative item begin after a default or once the default occurred? I have a negative item on my report that shows opened in 2008 it’s 2016 it went to default in 2011 does the limitations statute apply here?

    • John,
      I’m sorry to hear that. Have you considered using a credit repair company to help you out? We personally prefer CreditPros (855-980-4898) but there are others out there that can help you out so you can save your time.

  • I can’t thank you enough for all the information you have supplied. Do you also tell people how to get the interest rate lowered so the stupid card can be paid off?

  • Great stuff!
    I am 68, own a business, married to a professor, great credit, great savings and retirement, love to give. Living the dream if you will. I never stop reinforcing the principles I live by.
    It’s why I appreciate folks like you. Thank you for what you do. Always good advice.

  • About 12 years ago I was contacted by my bank Capital one concerning a credit repair company ,which was looking for more clients, they came through a vetted sponser the local chamber of commerce ,my credit looked like the titanic after it split in two…so what the heck I,ll give it a try,had a meeting in real fancy new multi story building in McKinney tx, the man I met with seemed professional and swore on his mothers grave they could improve my score,said it would take a little time but not to worry patting me on the back ,I enquired about the cost, he said they would call after they made an estimate, this was on a thursday…the following monday the slick speaking rep came by my business in rowlett tx( Dallas suburb) to give me the good news they were on track to improve my lot, also picking up a ck for 2,720 dollars ,not a small sum for a tiny company, the summary is nothing ever happened,after 6mths I contacted my bank officer who had reccomended this king rat in the first place,she was concerned,contacted the rat, ordered him to meet with me a 3rd time which he did, I think he was afraid the bank might make waves for him so he met with me just to extend time on his behalf, by the way went back to the original fancy offices they were all for lease looked like they had never been used. Big clue to this is and its been mentioned on this site before…..If someone comes to you for cash payment for any reason its a con no matter where it comes from. p.s I,m sure the rats mother is still alive, she probably abandoned him when he was a baby for taking to much milk!

  • Every now and then I’m compelled to send you a message and it’s been a while, I bought your credit solutions program three years ago and have done exactly what you told me to do after bankruptcy and have read every email you sent me ! I have cleaned up my mess and i’m doing fantastic thanks to you !! Thank you Chris F

  • How do I get the creditor to reduce the Interest rate on a loan falsely advertised
    at 5 to 7%.but charged me 32%. This was either missed or not disclosed on line
    when the contract was submitted. Thank you. Ruby

  • I just dropped 150 points because someone else opened a credit karma account using a previous married name that I petitioned the court to be rid of. Everything I did was legal.TU said they would remove the other names. Now they’re using the name I had removed! This happened the same day I called about a fraud concern since someone had my S.S. income showing on my report, I was concerned. and now deny it! Only 3 days my score went from 700 to 555.
    I faxed all documents required. I now have Fraud Alert on my files. I have less TRUST for the credit report agencies! Am I destroyed again? It was expensive and hard to remove after ID theft!!

  • This is an important piece of legislation because it is applicable with my situation. I am a victim of predatory lending and the company (Ocwen Financial Services) has completely destroyed my credit and right now I have no real viable way of correcting my credit or having that stuff removed. This legislation will empower consumers such as myself who have been victimized by such awful business practices of predatory lenders.

    • Hi, L.Anderson..I agree with the new bill..I think people should not have to wait 7 years to be given a second chance..Derogatory paid accounts, whether paid in full or settled should not remain on your credit..

  • I had a finance company that I hadn’t used in 9 years do a hard credit inquiry on me cutting my score over 3 points. Is this legal? I contacted trans union & they said I would have to get the finance co. that did this to send them a letter giving permission to take it off. Lol. That’s bull crap. I think the credit bureau crock is just that, a crock of crap. I paid a loan off early & they lowered my score.Its all a big rip off.

  • I loved the video! I felt safe and at ease listening to your voice! I felt you really want to help your clients ! I’m looking forward to this new chapter in my life! And I’m excited to go on this journey! Thank you for your program . I look forward to the results!

  • The company you recommend regularly on your blog charges 179.00 up front then 99.00 after ….. Since they are asking for money upfront are they a scam also.

  • You used to speak highly of a company that claimed to be able to do this kind of work. On the strength of your word I contacted them. I DID NOT like their practices upon speaking to them on the phone. They seemed VERY shady. They made all types of promises about wiping EVERYTHING that was negative on my credit reports off. I told them I could do it myself. I did, and now my credit score is 742!!!!!!! THANKYOU for ALL your help. There should be more people like you!!!!!!!

  • The video was very informative and although I knew a lot of what you talked about because I was the credit mgr of a small corp. but that didn’t keep me from earning a credit score of 472 from Trans Union. Got you beat my friend so I’m all ears.

    Glenn Hurd

  • John,

    If I negotiate and settle the debt with the creditor and they accept my payment, how long will my negative mark stays on my credit report? Is there any way I can remove the negative mark on my report?

  • Good morning,can you suggests a couple of trusted p2p companies or web sites I can use for a loan maybe a phone number I live in Staten Island New York thanks.

  • Hello, I recently filed bankruptcy, but with your help provided via video I’m looking forward to my credit being repaired. I’m so grateful to have discovered this.

  • I had a leased car for 39 months. I paid every pymnt on time with Ally. Last December there were health issues in my family. The lease was up and I requested an extension from Ally. They sent me the paperwork which I completed and faxed. In error, they came and repossessed my vehicle. They single handidly ruined my credit that I worked so hard at establishing after a divorce! Is there anything I could do to correct this. Ally has been impossible to work with!!

  • What are my options if they damaged the car when trying to repo and didn’t take the car.

    Now I can’t drive the car because of the damage.

  • Interesting – I just got my bankruptcy off one of three CRA – My score dropped 42 points with that one particular CRA – That was a real shocker – Now you tell me that a fraud will drop my score also & I just last week had a call about a fraudulent charge – Seems as though the harder I try to raise my score the more it drops ??????????????

  • FICO aka Credit Score the NEW DISCRIMINATION Since when is a Credit Score Needed for CAR INSURANCE NOT A DRIVER LICENSE RECORD . Lets Call Our CONGRESSMAN & ACLU and every State Insurance Dept. And file a complaint Lets Get Them Back!!!!!!!

  • Hi Mike my name is Katherine I took out two Capital One cards and it 5 surgeries was out of work for 2 months and fell behind explain this to them made a $201 payment on one Accord and 90 on the other most of it is because they keep taking on $36 when I’m late so I’m falling behind what can I do about this can I consolidate with them to one card they promised to take off the charges but never did I need your advice please.

  • Excellent articles. Very helpful. Skeptical regarding companies can fix or reoair your credit for a large fee. I or you are the only one who can do that. Thanks for the great articles.

  • I have very low provable income.my debt to income ratio is very high.A debt consolidation loan would help me tremendously but I cannot qualify.I have tried with the lenders you have recommended.A loan would free up between $1500-$2000 dollars a month!but lenders won’t look at my credit report which shows all my payments on time and all of my outstanding debt.there is know way I could pay this debt each month with the income I can prove but lenders need provable income.I understand that.bankruptcy is not something I want to do.Is there any other option for someone in my position?

  • I have about 17,200 in credit card debt spread amongst 9 different credit cards that I am struggling to pay and bring the balances down. I am wondering if it makes financial good sense to get a consolidation loan to pay these off and improve my financial picture and credit score. I’ve crunched the numbers and it seems that I would see a savings of only about 116 .00 per month via this strategy. Need some assistance on his one

    • Have you heard of the snow ball effect ? Start with your highest interest card and each payment make a double payment. Every bit of the second amount will go to the principal and cut your overall interest down considerable. Once it is paid off take all of that money(the double payment) and apply it to the next highest interest card. You will be amazed at once it gets going how fast things get paid off. Also transfer high interest cards to 0% cards for 12 mths. or higher and pay them off with in they 0% time. Most of all remember to be disciplined and committed, everything you buy will fit in one of these descriptions want, need or desire. You may want a cold drink but all you need is water. So make your pay off plan and stick with it

  • I’m wondering if anyone has any luck asking creditors to remove derogatory information? I was a cosigner for what is now a ex-son-inlaw and he made a few late payments then stopped completely. Toyota Financial never sent me anything until it was almost 60 days late. I got the car and paid it off. I know I agreed to that so I’m not complaining about having to pay. But now my credit score has dropped by 83 points and Toyota tells me they can only report what actually happened and won’t remove it or change it. I don’t see why they are penalizing me when I did what I agreed to. I hate they waited to tell me it was being paid late until he stopped paying.

  • Great article. I plan on opening my first business within 8 months and the information I gathered will help dearly. Thank-you.

  • I bougth into a franchise it didn’t work out so I starter my own I use my company name but I get pay in my name am I doing right thing?it cost 1500 to open a business a accounts witch I don have

  • This is a great list. After 15 + yrs as a p&c agent this list includes many things agents don’t Tell their clients….. Ask questions!

  • so if you pay a debt that the creditor filed in 2008 as a default or charge off and you pay them in 2014 the credit rating agencies says you still will have 7 more years of the derogatory rating by this company. so in essence if you didn’t pay them at all the derogatory would fall off after a certain amount of time but by paying when you were able you get 7 more years why is that ?

    • Derogatory marks fall off after 7 years. You paid the debt. It should state paid but still negative marks stay in place as late payments. Paying a debt with out a written contract stating they will remove after paying in full stays on your credit for years showing length of time of credit history

    • Cat,
      You can see the additional points by clicking on the following pages of the article, starting with the big, red two listed at the bottom of the text.

  • If you use more than 60% of your credit card limit, but you pay it off in full each month. How does that effect your credit score?

  • When it comes to time limits (7 yrs or 10 yrs) most creditors and the three major credit bureaus well use the maximum time allowed. Although the Fair Credit Reporting Act does not indicate that it is required. The Act states: “May” report up to a maximum of 7 or 10 years. “May” is the operative word. Nothing stops them from removing paid, settled or discharged accounts from the reports earlier other than their own in house rules. Find a good attorney, who knows what they are doing and who knows the law and then challenge these companies. It well be hard finding an attorney who really knows the law. Most are lazy and like sheep just follow the heard as it is easy money for them. They well talk with you and in the end tell you nothing can be done and charge $250.00 – $500.00. That is BS. You have to decide if it is worth the time and money to challenge these companies, however. Most of the time you can have items removed by yourself. More information can be obtained by contacting the Federal Reserve Board of Governors or your State Senator, who well have a staff member contact the Federal Reserve on your behalf. Be patient, consistent, courteous and tenacious.

  • I love the information you give. It’s also great to see that alot of my common sense approaches are the exact advice you give here. Three very important things I’ve learned that make an immediate difference in raising my scores…1) I very rarely bring my cc down to zero balance. I may leave -$10-$20 on just so it shows I have control of my spending. It sounds a little backwards but it works. 2) When I do NEED to carry a balance I try to keep it below 30% utilization, most often below 10%. 3) The most important thing is the reported balance I carry over. Learning ALL the different reporting dates on all my cc/loans let’s me control what’s reported to the credit reporting agencies every month. Combined, these have really helped turn my score around. Hope this helps someone.

  • Hi. I filed bankruptcy 5 yrs ago. One of the creditors is listed as filed, but not satisfied, as the others are. There is a notation of included in bk. Home loan officer said not the same and I had to send him bk paperwork. How would I fix this at Experian, or the courts or both? Thank you for your time.

  • I have recently opened a savings account not linked to my bank. I will setup 15 dollars each that should add up to 1 dollar a day.

  • You write in the article above about debt settlement companies, “Some are good and some that could best be described as the ‘rats.'” However, your article does not say which debt settlement companies are good and which are the “rats.” Where do you name the good companies and the “rats”?

  • Incredibly useful information that has helped me take a hard look at my credit scores & build the courage to do something about it! It’s been 4 months since I’ve contacted my creditors, set up affordable payments and seen a 20 point difference in my credit scores! This plan works!!! If only I knew about credit earlier in life–I’m sharing this information with everyone I know! Thanks!

  • John, you’re way off base on this one. Point by point, DS companies does charge fees for services; they’re entitled to them, but now the laws have changed about when they may actually take them. Accounts are typically opened in a secured way with a reputable financial institution, in which deposits are accrued until a reasonable negotiation can be reached. The account belongs to the debtor, not the DS company, and the account holder may withdraw the money at any time. Yes, credit scores will drop, due to non-payment, but by that time, the debtor most likely is in a financial mess anyway, though can at least look forward to an actual settlement in the future. When a DS company begins working with a creditor (CA), it’s generally in the best interests of the creditor to stop all legal attempts to collect a debt (judgment), for fear of losing everything. Finally, if a debtor receives a 1099-C after negotiating a debt settlement, there are exceptions to paying the tax on that event, most notably, insolvency. Details and forms are available on the IRS website.

    • I’ve had a USAA credit card years ago.They charged it off as bad debt and closed the account. They gave me a # to a collection agency, which turned out to be Heltzberg Jewelry. They are not a collection company, now USAA says I still have an open account with them. Is that legal???

  • Hi My credit score is 705 transunion and 710 ex I have $23,000 of credit available after just after paying off all my cc only 1 shows that it has been paid off its been a month? Should I see a big jump?

  • And who was that set-up the credit scoring system?? So, let me see. They set-up their own rules? How nice!

  • Your article is INCORRECT …. the FCRA is very clear on the matter of Chapter 13 removal. It says that a Chapter 13 bankruptcy needs to be removed no later than 7 years from the FILING DATE. NOT the discharge date. If it were the discharge date there would be no reason to file a Chapter 13 as opposed to a Chapter 7. The incentive for quicker credit restoration would not be there.

  • credit agencies operate under a charter illegally approved by the US government! The use of SS numbers by any entity beside the US govt for ID purposes is ILLEGAL! Ans the laws and rules of credit rating agencies are ridiculous! Why have good credit if you are penalized for using more than 30% of it? When is paying a large balance down to zero every month less important than paying multiple payments on multiple card with multiple balances? why is is a penalty to apply for a receive new credit card based on good credit only to see you score drop? It is a SCAM!! and we are all sucked into it

  • So the card transferring the $10000 in your illustration is not considered as overstretching the debt ratio? I dont get it here.

  • Awesome…. so informative.. im cancelling credit repair. Com today…! Thanks for this mad knowledge….!!

  • Also people who were victims of predatory lenders should be able to start fresh all over again and be able to purchase another home

  • Even though I had written documentation that I was not 30-60-90 days late on a loan that was paid off to Wells Fargo auto
    Credit they claimed they had the right to ruin my credit with these negative dings even though I had proof that the loan was paid off and I was already making payments on a new loan. They claimed that processing time to Close the old Loan was not their problem and they even stood firm
    Even With the consumer protection bureau about their right to report my loan late! I had full written proof of everything but a person named Micah Taylor promised to ruin me because I called her a “vicious credit rat” and to this day there are still negative dings on my new loan even though I was never late and had full
    Written documentation! Why is this person allowed to ruin my credit, stalk
    Me on social
    Media and make these claims just because she is in a position of power? I did everything possible
    To have these negative marks removed but Wells Fargo still
    Refuses to remove them! They are the only negative marks on my credit but have kept me from getting any loans or any credit! She is a criminal ! How can this happen???

  • Some women of spousal abuse who had good credit or no credit were used by there spouse under abuse. These persons suffer twice. Once by the hand of abuse who made their credit bad and then by the system who allowed that method to stick!

  • Well, it’s sure refreshing to see an egalitrairian take an important stand on an issue that affects millions. It’s just too darn bad that she was opposed by the financial services industry, from people who have never felt the touch of financial pain. I support her thinking. Nobody in debt needs to be punished too long.

  • I believe it is a pretty good idea. Usually, the debt that is “settled” is because of a dispute from the borrower who feels and sometimes is taken. For one thing, I would bet you there will be a lot LESS use of Bankruptcy because they have another option and I think 45 days to take it off the credit report is plenty. This may help get them some room to re-grip their financial situation and save the companies having the loss. Just take a look at BOTH sides..I think it is a smart move.

  • For too long the middle class has been unfairly “sanctioned” for long ago settled financial strains! The 7 year blotch on credit keeps the poor, poor as it limits job opportunities, jacks up the cost of totally unrelated services such as health and car insurance premiums, and I treat rates on loans from home to car loans. These things increase expenses so much that it makes it more likely that a family would have to default on a loan. It’s as if institutions are judging a persons moral character by a late payment on a credit card!!! It is understandable that for a time, caution should be taken but not to the point that it becomes class warfare. I hope the bill requires public education in the school system to teach kids how the system works!

  • What gives FICO, a privately held entity, the right to access anyone’s personal information and plug it into their profit-making model? If they use potentially incorrect information generated by the credit bureaus, why then can’t they be held liable when consumer privacy is invaded and they don’t have to reach out to consumers to ask permission to use this information or make attempts to correct it? The whole thing is outrageous. FICO makes money selling consumers private information and the consumer gets nothing but abused in the process. The whole thing is a racket.

  • One major change to the system now would be to stop predatory collection companies from billing people that have gone to the hospital. The doctors are in cahoots with collection companies and double-billing patients claiming these doctors are independent contractors (which they are not by federal guidelines of independent contractors) holding a persons credit score hostage for payment.

  • Maxine Waters? Isn’t she under investigation fir fraud in her non profit organization she runs? It is supposed to get needy children pay tuition, but she used it for herself …

  • Hello Abbey, I have a $200 dental bill collecton on my credit. I contacted the dentist directly and they agreed to settle for $180 in 2 weeks. Since making that agreement I’ve learned that I should now be sure to get everything in writing and try to request a “pay for delete “. I’m now curious though…should I be contacting the collection agency directly to have them do this or can the dentist actually do this if I pay ot to them directly? Which would be sure to affect my credit with the most positive outcome?
    Thank you in advance for your advice!! 🙂

  • I do agree with you on the collection piece but disagree on the BK reporting. 10yrs is too long. 7 yrs is fair and will treat all BK the same. CFPB oversight will be difficult at best as you say correctly on two companies have had success.

  • Can another billing company take over an old medical bill that was never paid and does this start the seven years all over again?

  • Does your services
    Include review of
    Credit file .
    Can and wI’ll you
    Help with clean up
    Of file. I have not
    Been able to obtain
    Copy of my report

    • Hi Donald,
      We provide advice. If you would like someone to personally help you clean up your credit file, you will have to speak to a credit repair company, like Credit Pros. Give them a call at 855-980-4898. Hope that helps!

  • Why is the credit bureaus extending dates on an item that is due to drop off just because you make an inquiry on your own report to dispute the balance.

  • Filed a Ch 13 in 2012 to avoid foreclosure after divorce. Found another solution and voluntarily withdrew the filing BEFORE it ever went before the court. Credit bureaus REFUSE to remove it, saying, “Well, we’re allowed to report it AND keep it simply because it WAS filed!” How is that possibly fair in any sense of the word?!!

    • Medical bills may not be as bad as other bills on your credit report , but it still lowers your credit rating & thats what is looked at when you try to get credit , say to buy a car or house. The lower rate the harder it is to get credit or even if you do.

  • Hi my name is Gregory Boyd I file bankruptcy in 2013 but never went through with it. Never met with any creditors, I did it because they would not give me a modification.. my mortgage company. But then when I file they gave it to me, that was exactly one day after i file. My question is If I never went through with it, or gave no one any money except for the filing fees.. How is it still on my credit report?? And how can I get it off

    • You can file a Chapter 13 4 years after a Chapter 7 (if you are looking for another discharge that is, you can file a Chapter 13 immediately following a Chapter 7 in order to catch up with Priority Debts that were not discharged), but if you already have a Chapter 7 in which your debts were discharged, you can’t file another Chapter 7 until after after 8 years.

  • Can you explain how monthly payments to trustee are calculated please.
    What is the amount based on.
    Shouldn’t the monthly payments be lesser to in order to give a person a break and catch up with everyday bills? Thank you.

  • while this is good for informational purposes, it really doesn’t address a benefitial alternative solution to this 10 year reporting.

  • Thx! Was wondering why my bankruptcy was still lingering around after “7” years gone by. Oh well… Still have good credit, even with it. I’m quite sure establiments kinda understand it was soooooo long ago, and don’t really frown upon it any longer. ?

  • How can I make sure bankruptcies removed in 7 years and how can I remove since I am 6months from the 7th year?

    • Hey Douglas,
      That depends on what steps you take to fix or build your credit! Please feel free to read the blog and learn more about how to do that.

    • Douglas, usually right after they remove that item, your score will bump up 30-60 points. It’s different for each credit agency.

  • So if I filed for bankruptcy in the past is there any way to remove it from your credit report or lower the time it’s on your report? Or am I stuck with it for the next ten years?

    • Yes, 99% of the time, your Chapter 7 will remain on your credit report for the full 10 years. They do it because they can. Like obummer does in the white house. You can have it taken off but it will cost you a credit repair firm. Good luck.

  • You have done a great job on explaining in this video even though I have acknowledged this as one of my problems, it does not relate to why my score is low. I am definitely looking forward to the next video.

  • Hi, I filed for bankruptcy a year ago but never went thru with it after coming to a conclusion that it wasn’t the best thing. My attorney filed the paperwork and now it shows dismissed on my credit report. How can I get this removed?

  • What are legit ways and companies that can help reduce student loan payments, and consolidation and help with private student loans?

    • The 3 credit agencies prepare your credit report by automatically collecting any kind of ticks on your report, like bankruptcies, dismissals, late payments, etc.

      You need a lawyer to contact that lawyer who filed any kind of negative item, to write a letter to the credit agencies who are showing that item, to give the credit agencies something to work with, when they write the source of the negative item, to give them 30 days to reply back to the credit agencies, or not. If that source does not answer within 30 days, the credit agencies usually take that negative item off your record. That is how it usually works. Good luck.

  • I was hospitalized Jan – June 2016.
    While hospitalized some few hospital bills went into collection from secondary sources
    I am in a position now to deal with these
    Issues; however, unsure what process to
    Follow in properly getting removal from my
    Credit report. Any ideas or suggestions?

  • I think you and I both know that disputing a hard inquiry with the credit bureaus is a waste of time. You have to dispute directly with the original creditors.

  • Richard, I reallydont know where to start. After a chaper 11, I believe it was where as I did repay my debt. Now have no credit card and can’t seem to get one. Im retired on disability and get by ok. Have no car payment. I would like to have better credit. When I worked for the government made good money and had good credit could buy anything I felt i needed. Should I just stay the way I am with no cards or what? Please help me out. My grown kids have scores over 800. Really don’t know my next move. Thanks if you can help. Craig

    • Have your kids add you as an authorized user on their cards, you will get their good history, they keep the cards, and that will drive up the score, once score is up apply for cards at Best Buy, Marvell, and Chase

  • I once used Debtors Anonymous and successfully got my spending under control. Then a year ago I somehow became overdrawn. I spent 6 months clearing that up. Then it seemed the bank didn’t want my account. Took another 6 months to convince me to change banks. I’m doing well there and like this bank a lot.

  • I am excited to get some actual usable info on my score. Thanks.
    I look forward to hearing more from you in the future
    James

  • I would like to obtain any information i can use to reestablish my credit.Any Information will be greatly appreciated.

  • I am a healthcare provider and recently retired. I would like to earn extra income by providing my professional services.

  • I would like to earn extra money to pay off debts by doing private duty healthcare. I have been in the industry for over 40 yrs and am recently retired.

  • So how can I fix it The bankruptcy I’ll be happy if I could get a credit score of 650 or more without spending crazy lawyer money

  • I have several mistakes on my credit report and need help to rectify.

    Can you have a rep call me next week to discuss.

    Thanks,

    James Goldberg

    • Hi James,
      We do not do one-on-one credit advice. You will need to contact a credit repair company, like Credit Pros (855-980-4898) to help with that. Sorry!

  • feeling more confident about my credit score, had no idea how to go about building it up, Thanks i’m looking forward to the next video.

  • Please I need your advice, I did a loan modification back in January of 2009 with my bank and up until now the bank is still reporting it to the credit bureau and is still showing up on my credit reports. When I contacted the bank about the issue over two months ago I was told that they will look into it and get back to me in ten business days, and after fifteen business days I contacted them again and I was told to give them another ten business days and after the ten days have elapsed I called again only to be told that research dept is working on the issue and they will get back to me after completing their investigation. It’s over a month since I last spoke with the bank and I’m yet to hear from the bank. Please what do you think is my options on this issue.
    Thanks

  • Thank-you for your extremely informative article entitled:”10 Most Costly Homeowner’s Insurance Myths”. May I ask you for your advice regarding Homeowner’s Insurance? I am having a new home built by D R Horton, one of the major National Builders. They have an insurance company by the name of D R Horton Insurance Agency. I recently received a quote from them for Homeowner’s Insurance thru Praetorian Insurance Company. What advice would you give consumers in purchasing Homeowner’s Insurance thru an affiliated agency of their builder? Thank-you for taking the time to consider this question.

  • Hi getting ready to lease and apartment how much renter’s insurance should I apply for. Thanks

  • Hello Michael,
    I purchased your course back in October of 2013. I believed then and still to this day that you are a Godsend
    and it is for His intent that you do what you do.
    I was out on extended leave from work and suffering from depression back when I, originally, received your course. It helped me tremendously, in more than one way! I, now too, have improved my score better than 150 pts. There was much incorrect on my credit report, and with your help, much corrected!!!
    your establishment did take recognition to my last comments and asked me to contact them back, as I recall. However, do to the state I was undergoing, my memory and focus failed. But I have kept a focus on your teachings.
    Thank you, ever so much, for caring about people! May God, continually, keep you.

  • Very interesting, and helpful. Made me realize that I don’t have to be rich, to start a small savings account, for emergency s only. ?

  • I was operated on for cancer. I was one month missed payment doto the fact I was in the hospital for 3 weeks. It took 7 months for me to catch up with my payment to the B.O.A. They tried an accelerated foreclosure I now have 7 late payments on my credit score. I wrote to the B.O.A. explaining everything complete with pictures doctor bills etc. and they said tough. what can I do

  • like make some money to get a car was layoff like work from home cause have no car need work to hopely get a car to be employed again if you can help me email me

  • I was incarcerated for a very long time. Upon my release I not only had no credit, I had no file. It was almost like I didn’t exist. I quickly obtained a secured card. Only a year later I have a wallet of cards with good limits, all unsecured and offers thrown at me regularly. I knew I was on the right track when I went to Best Buy and instantly qualified for a Visa with a $2,000 limit.

    I will say that paying your balance off in full each month like the article suggests is not the correct way to go. You are trying to establish a payment history and paying the balance in full every month won’t do that. Many card companies won’t even report if there is no balance.

  • I’m A Handyman a I would like to make some extra money to pay off some Debt Honest and I am a very good worker so can you Texts Me A Message if you are interested Thank-you.

  • Would like to clean cars..will drive to your location to clean car..this I would be doing in my spare time…

  • having had a long history of topline credit score life took a serious turn, 5-7 years later I find those scores harm job potentials in gauging integrity, age etc. Creditors disregard the laws and continue slamming derogatory reports, Ive not used credit since 2010 and have been unable to gain enough traction income to slay the debts left upon me while I had filed a CH13 in hopes to measurably resolve debt and keep a home, I ultimately had the CH13 dismissed which added further credit integrity defamation to my history. I am now a senior in the over 55 bracket and begin denied many job opportunities due to this background. What do the collection laws allow me in collections duration’s. For how long are the defamatory remarks able to be posted to the big 3 ? I need a comparable job in order to align to live affordably and pay the debts that matter that I may be responsible for while having been only co-signer on ch7 ex-wife.

  • Is it proper protocol of this website for me to ask for counseling on how to repair credit after suffering a major setback due to a disabling automobile accident

  • After hiring a lawyer to help with my credit problems. I did not qualify for bankruptsy so he instructed me to hold off in paying my creditors. Then we negotiated with some for a lesser amount and some he said would just fall off. But now after 6 years there is one that is still on my report that is a large amount. Should I try and settle to get off my credit report? How much longer will it stay? The collection agency stopped reporting to one credit reporting agency? Is there a chance it will fall off? Any advice? I’m trying to rebuild my credit score.

  • Your 401K/IRA comparison don’t make sense. You said at a 7% return you could have 250K by saving in your 401K and it could be 360K if your get a $.50 match. Then you said your IRA would be 121K.

    There’s no difference in saving in an IRA or 401K if there’s no employer match so those numbers of putting $100 a month for 30 years should be the exact same number. The only difference would occur if a person does indeed get a match on the 401K. Just wanted to clarify that a 401K has no advantage over an IRA if it has no employer match, assuming the same contribution and same rate of return. You can contribute more to a 401K but in this example your just using the $100 dollar a month example which of course you could put in either place.

  • because my credit is bad already i was doing surveys i found out surveys credit cards i was being denied applying all the times it was going aginst me my credit now is more under averege more because i was doing surveys it was not because i was apply ing it was my info i was giving out to the surveys

  • Very informative…I was doing well improving my score until I had a dental emergency.I needed to get a loan for four thousand dollars which dropped my score one hundred and seventeen points in on day..

  • HOW IS IT PORTIFINO & MIDLAND GARDIAN CAN DEMAND PAYMENT ON OLD BILLS THAT ARE 10 -20 YEARS OLD & LONG PAID IN FULL & EVEN PUTTING IT BACK ON THE CREDIT REPORT AS DELIQUENT.

    • Hi Sandi,
      You will have to contact those companies and see why they are requesting payment, and possibly contact a lawyer if the mistake isn’t cleared up. Thanks for reading!

    • I receive collection notices for old debt that has since been charged off every now and then. At the bottom of the page in small writing it says that it cannot reported to the credit agency nor can they sue me for this debt because of the length of time or the age of the debt. So for those of you who are getting these collection notices for older debts, over 7 years, read them very carefully at the bottom. They’re not reporting this to the credit agency. If they are, I’m sure you can write a letter of dispute or contact lawyer.

  • I am months behind on every credit card I have, which is too many. I was doing fine until necessary expenses came up. Between late payment charges and the high interest rates, I can’t catch up. I’ve considered bankruptcy, both chapters, and going with one of those companies that work with your creditors. I’ve Googled which company would be the best, but have heard horror stories of people ending up worse due to charges from the company or payments not actually made as promised. I need to replace my roof sine it leaks and the ceiling is turning black from mold. I can’t afford it or get credit. I’ll be 65 soon and I’m still paying on student loans. This is such a mess and I’m really not seeing light at the end of the tunnel. Could you give me some advice, please.

    • Hi DJ,
      Our program shows the steps you will need to take to repair your credit on your own. The process is not very intuitive and many companies will do whatever they can to keep you down. We simply offer advice on how to get yourself back on the right track. Hope that helps!

  • I have been on your site multiple time reading all the does and don’t. Lot’s of good information. It also lists from time to time the best Credit Cards to apply for to help a stablish good Credit. Can’t remember the last time I had or used a Credit Card.
    Anyway, I have been turned down for any of the Cards I had applied for on the site you listed. How can I get a Credit Card to help improve my score?

  • Hi my name is Leslie and I was interested in seeing about your program and was wondering if you had any home with rent to own or owner will carry I do have credit issues and I trying to get them trying to pay them .

  • Thanks for helping me with my credit score because I don’t have any other way to get help with my credit score so if you can help me please help me because I never had credit before. Just never had any.

  • I have lots of student loans which they want me to pay almost $600 monthly something I can no way afford, truthfully, at this time I really can’t afford to pay anything but will decide what to do. Anyway, they suggested I consolidate my loans which may make they payments very low. I currently have approximately $60,000 in loans with no degrees.I want to do something as I’m getting ready to retire.

  • I started re-building my credit by getting a loan at a credit union i initially didn’t belong to. I haven’t seen you post this option.
    I joined the CU for $25. They loaned me $500. I pay them +- $82/month for 6 months. THEN they give me the $500 or I can roll it over to a $1000 loan with the same payment & it will show I’ve paid $500 on a $1000 loan.THEY REPORT TO ALL 3 BUREAU’s. Think of it as an $82/month savings plan. My score slowly increased +70 after the first 6 months. (total interest paid, +-$13)

  • We have to file bankruptcy and the only money we have is $125,000 in eguity in our home which we built 11 years ago,they have taken everything else.
    Thank you

  • Great information. Very concise and informative information that leads you on the path that’s success and credit Revival.

  • I file chapter 13 and it was discharge in Mar.28,2013 and now I would like to get a mortgage and the banks are saying that I have to wait until it is 4 years before I can get another mortgage. Is there any chance I could get another mortgage now because my lease will be up in Sept. and we would like to get a mortgage now to move by the time are lease is up. Or do I have to wait until it is up?

  • John I am the founder and CEO of a 501 c3 non-profit organization. I am looking to hold a financial literacy workshop during our job fair. More importantly, I wanted to hold a workshop for job seekers relative to Credit scoring etc. Would you consider coming to our job fair to hold such a workshop in Woodridge, IL on October 15, 2016?

  • Mike Roberts thank you for all the great info you are the best very simple videos of how to care for your credit score and very useful thank you again Joe

  • Thank you I did check my score and it was better than what I thought it was. It will improve in the next even more because of an
    account I have been disputing will go over the statute of limitations where I live it will have to be removed from my file.

  • I filed Bankruptcy and was told I have to wait 3yrs. To obtain a credit card. Is that true? For I am in total agreement with article and ready to rebuild my credit score.

  • I am having some troubles with something on my credit and would love to talk to you is that possible? I just have one question to ask!

  • How do You get financial help or some sorts , after I’m done watching tv, lol sounds like you almost asleep.

    while a judgment/garnishment is on your record ?

  • I have never heard of a tax lien being erased after paid in full, does this apply to everyone,even if the lien has been in place for decades. if your 70 like me you just do the math there dos,nt seem much point.

  • Children today are not exposed to daily activities that enhance their money management skills, because their parents do not have the ability to manage their money.

    Most Americans do not understand how money works. They do not have check books to balance. They also do not save for things they want. They pay the minimum amount listed on the online statement and do not know what the interest rate being charged on their credit cards. They should find out how much they are being paid on their ” savings” or retirement plans.
    They are willing to pay for overdraft protection so they don’t have to wait until their own money is in their account to pay creditors who are charging them interest, because they do not balance their checkbook.

    Earning a degree in college does not guarantee you will have common sense. But if you want a good job then you will need a college degree and a lifetime of debt. Most college graduates move back home because they don’t have enough jobs that pay the expected amount to be able to live within their means and pay the loans for the titles the they have.

  • The worst credit decision I ever made was going into a construction business with my brother. Although I had 25-years prior business experience in the construction field, I failed to get a contract agreement with my brother concerning the basics of the project to construct condominiums on our inherited property. He agreed to put up the down payment capital and maintain the loan until sales could begin to be made on our 600,000 USD property value but he wanted to make the important decisions himself. The property required excessive grading expense initially. Then he wanted to construct contemporary units which did not sell satisfactorily in our area. The initial start of condo units was in 2002, about six years before the Great Recession of 2008. However, the grading expense was over 300,000 USD which provided 15 units of lot space. Two story units could have yielded about 28-units to drastically reduce lot costs. My proposal was to buy lots initially in other subdivisions to become more familiar with what products sell best in our area and obtain good work construction crews. In case of a beginning recession, the purchased lots would reduce capital outlay and reduce construction loan payments. But sales became problematical by 2006 as I explained early on that this would become our most major headache. In a new subdivision it may take 10-years before sales take off to be greater than one or two units per year. By 2007, the bank wanted us to start looking for a buyer for the property. In early 2008 before the Recession began, we actually sold the total property for sufficient funds to repay the bank and receive about 20% return on the value of the property. The loss was better than bank foreclosure; however, after 4-years the new owners who spent money on 34 new units were foreclosed on while selling only eight units. Our project encouraged another local builder to start a new subdivision on 40-acres just across the street. We incurred flooding on our property as the new project was on a hillside with excessive limestone rock requiring about 1.5-million grading expense to initiate building. These people also filed bankruptcy as the bank foreclosed in 2013 due to extremely poor management and judgment. Because of the Recession, I could not restart my specialty building materials and contracting business as most home contractors in the area were also in dire financial straits. All these losses were due primarily to the Federal government’s lack of expertise in controlling mortgage loans which began to restrict mortgages just before and during the Great Recession. Never start a new business with an inexperienced partner!!

  • Thanks for the insightful tips. I was able to get a credit card with capital one, with a limit of $300.00 and have been happy with that and so it’s been a very good experience on getting it. I really appreciate the advice from the program that offers tips, on how to raise yr score. And just to mention, my score was up in the 700’s but for some reason it dropped anywhere from 630 to 640’s and I as puzzled by that and I never got a straight answer from capital one, what gives? I don’t know what happen. Do you have any suggestions that may unravel this puzzling delimma. Sorry got he bad spelling ….

    • This comment is old but anyone in this predicament MUST CHECK THEIR CREDIT REPORTS FROM ALL 3 CREDIT BUREAUS.

      A drop of that much instantly could indicate a non-payment note inserted in your credit reports. Identity theft is also something to look for when you see unknown drops in credit scores. What ever the cause, when it is unknown check all 3 Credit Reports from all 3 Credit Bureaus.

    • Your credit limit is 300.if you use 150 and only pay minimum 25 on due date your balance is 125. A high balance drops score by 30 to ,50 points. Pay in full by due date your score will go back up.maybe ,5 points higher. I have same card and same limit.it happened to mr

  • I purchased an auto engine using a business cc from a dealer over 10 years ago. Upon receiving the engine and having it installed 3-days later the engine blew. I called the dealer and they blamed the certified mechanic of not installing it correctly and refused to replace the engine. I called my cc company and had them return my funds and filed a compliant with the BBB. Three months later after I purchased another motor I noticed my cc once again had been charged for the motor. My cc gave me no reason other than the vendor had proved it to be a legitimate sale and gave me no opportunity for recourse. I was told to file suit against them. I refused to pay the cc. A $3,200 purchase skyrocket to $8,500 debt. They have since charged it off but have damaged my credit. I don’t have cc because of this reason. How many other poor souls have been victims of this possible illegal act?

  • I have a ch13 that I paid off early so I could get out of that hell. I am living in my rental property and want to purchase another house. My credit score is 688 now and going up. The ch13 was a huge mistake that I never should have filed! Now I am trying to find a lender for a new mortgage with zero results. Do you have any advice for me or ways in which I can find a lender? ……. To all of your readers and fans….whatever you do, try your hardest to avoid bankruptcy! It has ruined me ability to get a good interest rate on everything, if I get approved at all.

  • Terms on Commercial mortgage One Million Two Hundred thousand dollars. I am interested in seeing the math on a thirty year fixed mortgage are interest rates for commercial property around 2 1/2 percent somewhere under three percent. I also would like to see the math on 15 year fixed mortgage Commercial rates on $ 1,200,000 dollars.

  • I see a few things on my credit report that are older than seven years. I have a bankruptcy that is well over ten tears. How do I get these removed. Your advice is greatly appreciated. Thank you.

    • You can write a SOL letter Statue of Limitations and they have to remove it. Write to the credit bureaus and the creditor and send it certified receipt

  • Mike,
    ‘Your original questionnaire didn’t have an answer that related to why I have a credit crisis.
    I was disappointed because I had hoped I may finally find a way to bring my credit rating
    back up. What was the response you left out that is the nearest to my situation?
    Defaulting on a loan.

    • Kenneth,
      Thanks for reading/watching! Now that you have your credit scores, feel free to check out our program or browse our blog for tips on how to improve your score or keep it on track.

    • Somehow I think this turns into an advertisement for people to invest a $1,000,000 in Canadian stock and make $43,000 by risking lousing it ? !

  • How can a person wipe off the credit inquiries. Ones you never authorized to do in the first place. I’ve checked my credit score and I have seen some that I have no idea who or what they are.

  • I applied for a store CC. I used it the 1st day. One day I got a call my bill was delinquent. I pd 2 month over phone. I explained I hadn’t gotten the bill nor the card (they had my address wrong). The gal took my pymt but never corrected my address. I need to return items that wld have cleared bill but instead I was billed late fees each month. No one wld/cld help at store w/o card. They finally closed my acct. I finally got card after acct closed. Billed late fees was total bill. Wrote BBB, at same time capital one was taking over billing for this company. They said to bad I have to pay. Mind you their error. That was 3 yrs ago. It is the only neg on my credit report. Any tips on actions I can take to get them to remove this? If they wld just adjust late fees it wld be zero bal. They keep sending to different coll agency’s. It’s not a large bill last time I looked it was $229. But it’s the principle of it. My credit score dropped 100 pts

  • Many times there are no choices NOT to utilize the worst ways out of debt e.g. An older spouse who worked way past retirement (80) had’t built up a l-t retirement nest egg due to employment mostly caused by companies consolidation + divorce becomes severely ill requiring home care 2 yrs > death leaving other disabled spouse with medical costs
    + punishing tax change to single (25 %) + loss of 1 Social Security check & a mortgage What to do — all your worst scenarios unless family member leaves money to help. Really appalling simplistic advice here as one doesn’t plan @ 25 to be a widow (or) a widower (usually men get remarried faster, older women have more difficulty especially when encumbered w/debt)

    • Hey Nancy,
      Thanks for reading! We realize that not every piece of advice we give is going to work for every reader’s situation. Our only goal is to provide options some people may not think of. We want to wish you the best of luck to you and your situation, and we hope that you may have been able to find more suitable advice on some of our other articles, including this one about planning for retirement.

  • Haven’t filed or paid Federal and State Taxes since 2002. My credit report doesn’t have tax liens yet and I’m very worried about this.

  • My student loans lapsed by more than a 120 days. I have since paid them off. My question is how long does it take until lenders no longet hold it against me and when can I expect my credit score to start back in the upward trajectory?

  • Any answers in paying off 3 credit cards maxed out, because a business built me a website, but never taught me how to use it, just took the money and ran, credit card companies said it was a legal transaction, now I must pay, around $3000. plus $8100. they say I owe. I’m at my do not know what to do point, but the bad part is I only have a very low income, per month, just enough to live on (Barely) need some help.
    Thanks

    • Hey Ralph,
      Thanks for being a reader. In this case, you may want to talk to a lawyer or the Better Business Bureau if you think this company committed fraud against you. Make sure to have important documents on hand, like your initial contract with the business and your credit card bills on hand to prove your case. I hope that helps!

  • If I could only believe in people or companies that would stop scamming people, I could keep my credit cards in good shape, but when a company like FirstUSA Business Development in fl. build you a web site and never teach you how to run it for marketing, than you get scammed and have to pay the total of three maxed out credit cards off, because of these type of companies. If I had of know they we’re not going to live up to what they told me, I could of had one built for nothing, with someone else, but if you’re a dumb old poor boy you get ripped-off. These big companies have all the right answers to send your card people, so you loose.

  • I need extra help i know the home i would like tobe in. The probelm come in is my credit score. Iswithin hundred points for me to qualify for a loan. The type of home i am intrested in is a hud home foreclosure. I honestly need to speak with someone and not all this email so i can finally understand the steps i need to make on a home.

  • May still be interested in your services. Mulling it over. However, have a question.
    1. If I order a SECURED (with my own $/deposit) as the limit to TRY to start working on my credit,. WHAT IS THE BEST COMPANY to get a visa/ MasterCard from? I Do NOT want a card specifically used at ONLY a certain store, catalog or website. Thank you.

  • I was getting credit help from a LAW OFFICE!!!! MAN they help me with a few things and I was paying them to do NOTHING!!!! IF YOU CAN HELP ME I WILL GIVE IT A TRY AGAIN!!!! THANKS BK.

  • Mike purchasing your program was the smartest move I made to reboot my credit and increase my purchasing power. In the first three months, paid down my high interest debt, erased 35% off my credit history due to mistakes made on credit bureaus behalf, then opened up two new credit cards paid off in 6 months, increased buying power 55% and have been building credit to purchase a home this fall. No regrets on your program. When I purchased your program, I had no credit, terrible score, and no light in my tunnel seemed possible. But after one year of your program, I now have 23 credit cards at the lowest rate possible and American Express boosted my credit immediately. I have utilized your program now for over three years and I now teach my children how to take care of credit, respect your credit score and respect your creditors. I only have three credit cards I use daily to continue to build credit. American Express has definitely heighten my score emensely. Thank you for a great program. Best money I have ever spent.

  • It would be a lot easier to read this site if there wasn’t an ad every third line. The info is great, but the ad load is about to send me away.

    • Thanks Mike, this video helped me to understand where I needed to start. An it took a very small amount to get going on fixing something that could have been a big problem in the future without it. Thanks again, I’m looking forward to rest of the videos.

  • Hi and thank you for the information! At first I’m one that’s always skeptical about the different sites. And rarely go to any, however I am glad that I stumbled on this one!

  • I have applied for many credit cards for people with bad credit,almost 95% approval rate,got denied all the time for these supposedly credit cards to help re-build your credit score.I have been reading the emails from the ” credit solution program”,and getting some good common sense information,learned a lot about credit scores,I never knew there were 3 credit bureaus, I do now.Going back to the getting a credit card and being denied repeatedly,am skeptic to do it anymore.I had a poor credit score at 577,not good,but by applying for these credit cards lowered my credit score to a little over 400,that’s really bad,this happened by applying for these credit cards,any inquiry goes against your credit score.It currently is going back up,I found 1 credit card place that does help you build your credit score,that is “finger hut”,through Web bank,they specifically give people a chance to show there credit worthiness,thanks to them that is probably the reason my credit score is raising,I made my first ( on time payment),may 1st when it was actually due on the 3rd of this month paying them earlier plus $5 more then the required payment,I got a $300 credit limit, bought a needed vacuum cleaner on sale for $168 and will purchase nothing else till its paid for.After 6 months of on time payments they raise your credit limit.More people should be made aware of “finger hut”that works with people to re-build there credit scores

  • I apply for one of the cards and I was denied.I want to credit karma to do the application,so that is not true.you will not get approve.I even have a small business and still was denied.

  • These loans are not to be messed with. They are modern day loan sharks and sell your information to third parties who are seedy.

  • I am retired, 79 yo, with limited regular income. My fico score is @720 (has been 760 within the last 12 months). I have been denied new promotional credit card applications (to benefit from initial 0%, or “points”. My revolving (credit card) debt balance to limit is reasonable, (32%) ($30,000/$93,000)
    I have assets easily converted to pay down $15,000 of revolving debt which I would drastically improve the ratio.
    Credit scores do not know/involve income amounts.
    What would you suppose my decline problem is?
    Age, or credit score, or income/debt service (which I report on the application at $30,000 using only more or less regular (sustainable) sources).

    Can’t do much about my age. but I can alter the credit score (though I prefer to hold the assets I would have to liquidate) . Reported income could legitimately be reported higher, as I annually liquidate assets which causes a higher AGI than my more regular social security, farm rental income which I report on applications. Capital asset sales are not sustainable over the long run.

    I guess you would describe me as asset rich, income poor. Advice please.

  • I no whot I mean now ,I co -signed for two people to get a car one kept thear end up but the other defalted on the loan an left me hanging ,they new I spent a lot time an money to straightening up my credit they wear making good money at the time an thear roomate was working to .insted of calling the bank an see whot could be done they take the car to an car dealer leave there in the lot an bye a older car an don’t bother to call the bank that they defalted on to tell them wear it is insted I had to call them an tell them wear it is an now I get the phone calls an threatening letters .I told them that it mess up thears as well as mine but they dont care .both her an her roomate r out of a job because of her big mouth an my credit that I worked so hard to fix is gone .I know they have money in the bank still.can I fight this in any way .please tell me . T U

  • Thank you so so much I’ve been trying to fix my credit for years. You helped with a lot of information I never new. I’m going to have all my kids sign up, plus friends. Your a very special person to help people without asking for any money. I will watch all your videos. Thanks again!!!

  • There are people using my SS# to open account and to purchase stuff that they need, And that what bring my credit score down??.

  • Thanks Mike the last time I looked at my report was things on there I have never did ,I don’t know.how to get those off the video really helpful .I hope.we can fix my score and get it where I can have better credit.I have never even had a credit card before or a loan someone enjoyed ruining it though.look forward to this!!!

  • I was never able to get my credit reports from any of the 3
    companies as you said in your first e-mail for $1 each
    altho I tried several
    several times. They are want at least $19.95 and it;s a hazzle
    What am I doing wrong.

    • A secured card card from your bank is the best way to go after making 4 or
      5 monthly you will get a unsecured credit increase.ITS a lot better then bad
      credit card.You have to pay maintenance fee hight int yearly fee and charge you for making your payment on time say you get a credit limit of
      $300.00 they out $50.00 in fee before you rec your card in the mail.your
      monthly payment is about $37.00 after all the fee they out it will take you
      3 years to pay off that card and do not be one day late your payment will double.I KNOW because i got one .dealmaker43@gmail.com

  • That is great and intuitive advice… Thank you very much. I have a question . I have two judgments against me that I didn’t know about the past couple years I moved and wasn’t sent any information what is the chances of me getting them off my credit reports. They equal $4800 not a lot , but also not a little…and very manageable….. I know I can’t go to a debt solution organization because they’re already judgment so that’s kind of a mute point I believe …Any advice.

  • Thanks so much for all of the usefull information in this published article as it should be transferred into a book because it’s very good advice. Since I have been reading these published articles I have been able to raise my score more than 100 points and was able to get new credit on my file.
    Thanks so very much for such great advice and ad you don’t charge for this information it’s worth Millions of dollars to consumers like myself. It’s very easy to think that you can’t get out of a Rollercoaster of bad credit. One just has to be sure not to take on more than he can bare financially. It’s OK to enter into a higher interest loan but have it in mind to make some on time payments then refinance with a loaner that offers a lower interest rate because your score will be better. The the advice that you gave a our patience is very true. Once again thanks so very much for this sound advice. The only thing to remember is that getting a prepaid debit card does not help ones credit but a secured credit card does.

  • I am a 54 yr. Old woman and have been homeless now for about 8 yrs. I’ve been trying to get out of it and there are no avenues for me to go. So I think this would be a good place to start. Also need to find an income. Thank you, I’m glad I found you for your help.

  • I have had A JCP account for decades, never late on a monthly payment until 2 years ago un expected medical expenses , laid off from work ,I just ran out of funds to make payments. so I get notice that the debt has been sold to another collections party.
    How can I obtain valid information of what was paid for my debt?

  • I have been with you guys for the past 5 months. It has been one of the Easiest courses I have taken. Easy step by step How To instructions. I have brought my credit score way-way up. I’m glad I found you. THANK YOU SO VERY MUCH. Looking forward to your next Email. ( Don’t have to stay at the Holiday Inn – I just have to read your Emails ) Hope you understand the little funny there LOL

  • Thanks Mike. I was reluctant to even check ’cause I owed $350.00 for services I never used! Thanks, will start working on it!

  • I have a credit card from Household Bank of Nevada
    that was bought by Capital One Bank its in collections
    the balance is about 1200.00 I have a number to reach them which I have been trying to do for about 2 years. I’m almost sure they are re-aging my account. I have disputed this with the credit Bureau’s and have gotten no help. It seems to me that they want to hold this over my head for seven years instead of getting it settled. I don’t know what else to do?

  • I have been reading all of your emails for the past two years I appreciate all that you are doing for us as thank you!!!!!

  • Question I pay all my bills that I had on my credit report I have a car loan and one open store card in good standing but my credit is not going up how do I get more point fast cause I want to buy a house

  • I should have excellent credit as I owe nothing and don’t have any debt except a tax lean of less than 10,000.00 and it kills me that because I have no interest debt or debt I can’t pay back, nobody will give me a credit card with a low rate. Before the Banks tried to shut down and keep everyone’s money, I had a bankruptcy on my record and a foreclosure because of the lack of work nationwide. That was the first year “W” started to ruin the economy by sending jobs over seas. So many companies moved offshore to get tax breaks for each employee they sent across the Pacific or Atlantic, that we had 100’s of thousands of tech employees unemployed and very few jobs for them to obtain. That put a lot of people in debt they couldn’t pay and started a landslide of bankruptcies. I had great credit after my bankruptcy and many companies were sending me low interest card applications which I did not take. After the 2008 thing, my high credit score changed to a low score and most of my history is gone. That is the reason I don’t have and can’t seem to get any credit cards. Is the money of the future going to be in plastic anyway?

  • I have learned so much both things I THOUGHT I ALRESDY KNEW AND WAS DOING THINGS RIGHT AND THINGS I DIDNT KNOW AND I COULDVE BEEN DOING ALL ALONG EVEN WITH MY POOR CREDIT SCORE. Thank you so much for all the great honest information and ITS FREE!!! It’s really HARD TO FIND ANYTHING TODAY THATS GOOD FOR THE CONSUMER THATS ACTUALLY FREE!!! For the FIRST TIME IN MY LIFE I ACTUALLY HAVE A GREAT OUTLOOK ON MY FUTURE KNOWING I WILL HAVE THE CREDIT TO LIVE AND SUPPORT MY FAMILY SOON AND TEACH MY CHILDREN THE RIGHT WAY TO HANDLE THEIR CREDIT!

    Best,
    Ryan Pierangeli

  • Great advice, I’m so glad I am taking these steps. I just hope my results are positive at the end of this! I just need to remain on course and if you can do it, I will too! All right people let’s do this!!

  • Students have been duped and conned into the dream of making money through further education. It’s unfortunate that our legislatures bailed out the banks, but have left the students in the dust. Thousands of well-meaning students will go to their graves in debt because of an unforgiving government.

  • Awesome info. I too wish I would have heard this earlier. I managed to get on track now after the majority of grief has hopefully passed. Thanks

  • What is the best company to start investing with. Is it possible and smart to possibly split an investment? I receive a windfall. Out of that windfall I set aside 30,000 to invest. Would it be wise to open say 3 investment account of compounding interest of 10,000 each or place all of in one account? By the way, I’m just getting started in investing and I’m 45 years old. I plan on leaving that money in there for at least the next 20 -25 years. (I know, I’m starting way late).

  • Hi I have a tax lien that is killing my credit..And I never owed the money and
    it a big one. I have call the IRS still there how do I get it off. Also have proof from them
    that I never owed the money.

  • It was a big eye opener I’m 26 an no one never taught me about credit an now I’m trying to fix what I destroyed

    • I didn’t know or care after divorce I gave up.now after being in prison at 62 and have lymphoma of the blood it’s terminal. I want a place to die

  • I graduated with a MBA in 1997. I havent been able to get a good finance job since I graduated. I was informed that banks and other finance companies wont hire someone unless their student loans are not current.

  • I’m so amazed at all the knowledge I am taking in, My credit is gone way up and now this investing. I have put a lot of thought behind investing, and now that I have read this article. I need to get off my butt and get it done. After all, I’m not getting younger. Now that I have quit smoking after 50 years, I’ll be able to invest $35 a week. Things are really looking up Thanks again Credit Solution

  • Thank you mike for this first video, I don’t know my credit score but I will get right to it and find out what it is. Can’t wait for the next video step, thanks again!

  • Great motivation. Have tried to do snowball but couldn’t see results I wanted to see. Will try this method and see how it works for me.

  • Thank you Mike. I’m just not starting to read through your videos but I can tell already that you’re going to be a big help to me.

  • Thanks so much for this information. I believe this will help me with my procrastination on fixing and staying on top of my score …

  • Thank you for the helpful video. I had a great credit score at one time but life happened. I’m actually on the road to improving my score now. So glad I clicked on the ad to gain helpful knowledge!

  • Tanks very much for this info Michael. I have always owed , which I do not like but I think my management has been bad.

  • I have a question regarding purchasing a used car from a private person.
    In two months I will have completed a 24 month loan from a person who I used to work for.
    Can this be submitted to the credit reporting agencies?

    Thank you in advance. I joined your program a few years back and learn things daily
    from you emails. You are a wonderful bright light to many of us.. Thank you.

  • I started with you on November 8th. I am proud to say I am completely out of debt and only have one more collection on my credit report. I have read every Email that I have received from you. I have gone back and reread them to make sure I’m doing the right things. But as far as saving money while your disabled on a fixed income is really tough. But I’m trying. I am so proud of Credit Solution, I tell all my friends in need to look you up

  • Man I really wish I new all this information a least ten years a go. all well,I will tell everyone I know, about this. But what’s killing my credit report is that I have two judgement (paid in full by garnishment). If I could take them out of my credit report.

  • Mike, I got my report and there was things on it that were not mine, not even in my name. I went from 654 to 700 immediately. Thanks . Love the videos. Keep up the good work

  • I purchased the online and hard copy of CSP. I have never been so impressed by a program. I love the daily emails. So much information! !

  • I had a close friend that was going to co-sign for me but instead he helped me pay off everything i had in collections on my credit report so I could try to get a higher credit score and get a loan on my own and I am glad he didn’t now after reading this lol !

  • My question is the biggest thing I have on my credit score is past student loans but I never finished the 2year program only one semester but they are still charging me for the entire tuition is that something they can do?

  • Just want to thank you for your emails. When I take the time to read them, I learn so much and it helps me keep within my budget rather than yield to impulse buying.

    Thank you and merry Christmas!

  • Howdy, I just want to thank you all once again for the Credit Solution Program. Since I got this program I was able to overcome obstacles and now I am a very satisfied home owner. I took me less than a year about 9 months to purchase a home. I recommend this program only if you are serious about restoring your credit and seriously in the market for purchasing a home.

  • Thank you for all you advice. I have learned so much by reading your articles. I’ve also improved my credit by utilizing the tools you have provided! The best part about all of this is your advice is completely free and I can’t thank you enough for that. I sincerely appreciate you taking time out of your life to help people like me who was in desperate need of credit repair. I went from low 500 scores to high 600 or low 700 which is absolutely great in my opinion. I will continue to read/utilize your articles as well as informing anyone I possibly can about all your knowledge and help with repairing ones credit.

  • Hi Ms. Lake – I am
    seriously thinking of selling and moving to another location due some stalking matter. How should I go about it? I need to sell the house as is, that means lost. Please advise.

  • The things I have learned from The Credit Solution Program are truly amazing. It’s simplified and easy to follow directions. It’s the best & smartest dollar I have ever spent. My credit score is on the rise in just a couple of few weeks. I couldn’t be happier. Thank You Credit Solution

  • All of those Great Offers I would Love to except but No money,plus already trying to work on it!!! What to do? I have Never seen anything or got for Free.

  • In doing a short sale, our existing home was under MY name only. My wife was able to purchase a replacement home immediately ( less than two weeks) under HER name only without too much adverse action to her credit.

    We did have to give some documentation to prove that the short sale got attributed to me only but it did work. We also were separated (not legally though) and lived in different residences upon (and due to) losing the first home. I did not move into the new home but it was very helpful in keeping our children in the same school district and keeping my wife and children from being homeless.

    Thought this might be something helpful for your clients and blog readers to be aware of as another option if their circumstances are similar.

  • Most balance free transfer cards require a high credit score. I have excellent credit with my bank, having paid off an installment loan over a year and not missing a payment. After paying the loan off, I applied for their card and was denied.
    I only use 3 credit cards and pay them off monthly and on time. So, what could be the problem?

  • I’m divorced , I had the good credit my ex couldn’t even open a bank account. I put her on my bank accounts and credit cards. Opened up a couple cards in both names. I found out at the end she wasn’t paying any of our bills and all the cards were maxed out along with cards I never knew about that she had opened up in my name. She closed all of my bank accounts that I put her on. I believe she claimed bankruptcy on all of those items and had her name removed and my name was not included in that bankruptcy and now all of those bills are coming to me in my name only! My credit is terrible now and she seems to fixed her credit as she has bought cars remarried and has bought a house in Lake Havasu! I guess my question is if we shared in these debts is it possible that I would have somehow shared in the bankruptcy if that is what she did I’m 99% sure that’s the case. And unfortunately there’s no talking to her to get any kind of information. Can you please help?
    Ken B

  • I love your advice. I’m in so much debt right now , but I don’t know who to trust to help me. But also I don’t want to file bankruptcy. Thank you for always sending your help and advice.

  • This whole preoccupation with interest charges wouldn’t occur at all if the consumers were properly focused on paying off their balances in the first place.

  • Hey mike I got my credit up to 717 thanks to u but I applied for a new credit card and it went down to a 647 can u please help me with this explain why it went down so far

  • Is it a negative impact on my credit score if I close some currently open credit cards so that I can get a reduced interest rate I am NOT behind on any of these but to get the lower interest rates through a third party I have to close the accounts if you can’t tell me please point me in the right direction thank you

  • This is so much B.S. I don’t even know where to begin! We’ve carried high credit card balanced for years. The get used mostly for travel where I work and there is, by nature of how reimbursement program works (or doesn’t) a balance that can get quite substantial. We were NEVER penalized for years but in the last couple of months found ourselves with a low credit scores. It’s like we’re playing a fricking game where the rules constantly change! I don’t appreciate or understand it. We recently paid our house off and THAT still isn’t even acknowledged. We make our payments on time to all creditors! I donakt have enough bad things to say about credit bureaus!

    • I agree. Credit should be based on how you pays your bills period!! All of these other variables are impossible to keep up with and most people don’t even know about them. Scoring credit needs to be simplified because the current system isn’t fair. I pay all of my bills on time but my friend who filed bankruptcy has a higher credit score than me because of credit card balances. Go figure!!

  • Great help to those who did not know any better, Like ME! Thanks and I hope with all your Info I will be able to approach these creditors with some ammunition.

  • I too wonder about the part time throwing me into a higher tax situation since as of now claiming 0 still leaves me paying back the federal government…

  • I like reading your articles please keep them coming. Please send me information that could help fix my credit report

    • The only way to fix your credit. 1) Pay bills on time, every month. 2) Get a copy of your credit report at least once a year, and make sure there are no misreported negatives on it. If there are contact the vendor, or the reporting agencies to get them removed. 3) Don’t carry large amounts of revolving credit. If you use a credit card pay it off every month, if you can. If you can’t, don’t use your credit card, unless its a dire emergency. In other words Live Within Your Means. If you want to buy something expensive, save up for it first. Don’t charge things just because you have plastic. There’s nothing worse than buying something and by the time its paid for, its already sitting in a landfill. 4) Read Mike Roberts’ e-mails and follow his advice. Good luck.

  • how do you get out from a high rate auto loan,that you still have two years to make payments .and the auto is falling apart.my credit score is about 687,with your help,but i dont think my auto will make another two years.Idont want two auto payments,and not be able to drive one.

  • Hello, I am a subscriber. Recently I tried to re-fi my primary mortgage, I was turned down. I was informed that I needed to remove a foreclosure off of my credit report. How do I do that?. Thank you, Byron

  • I would like to say thanks for your remarkable knowledge that you have been sending me.
    I say to you a sincere thanks and keep up the good works.

  • I just started working again.I am in a real mess.I have been living in my parents house,it is in their names. It is going into forcloser/ sale this Friday! I am working full time, also,my son lives with me,he also works full time. I have poor credit, due to my mother & my ex. I want a small loan, to be able to make a deposit to get a house to rent,or an apartment. I am working on paying past debts,then,this came up.Can you help? Or direct me in the right direction?
    Thanks, Diana Lowe

  • Filed bankruptcy was left with 1 active card ,have a fico score of 606 I need 660 to lease a car.how do I raise it 54 points

  • I have never owned anything, I never paid attention. I was married for 39 years, he took care of everything , we are divorced now and I don’t have bad credit, I just have no credit! I never worked, never even thought about a bill, now look at where I am! I really need these videos, I need help. Thank You for this information. Cheryl

  • Very detailed info really needed that to get my credit going in the right direction thank you soo very much please keep me up to date with info.

  • Hi,
    I read everything you send me and I had very low credit scores when I started, a couple years ago. I’ve done everything, I am able to do that you have suggested. I applied to remove my IRS Tax Liens. I obtained 4 Credit cards with $300 and $500 limits. I set up a payment plan on my collection accounts. I hooked up with Lexington Law, reluctantly. In less than a year, those credit card limits have gone up to $750, $1,000 and $2,300. The IRS Tax Liens are gone. My Credit Scores have shot up and over 700. This week I had a big shock when, I got approved for a new car loan. And the Car Salesperson didn’t know what to do when they said I was approved, at the first place they tried as I sit there speechless, with tears running done my face. I am now driving my most favorite car. A New Mercedes Benz and Mercedes Benz financed me at 2.99%. All I can say is Thank you so much.

  • Thank you for caring enough to take the time to create this video, Mike.
    I look forward to receiving the next one. So far, what you said in the video, I’ve done and look forward to more info on why I seem to stay ‘stuck’ at the score I have. Thanks, again!

  • Thank you, I am trying hard to turn this around. I truly get frustrated because I had good credit but I have faith at the least I will again.Thank you

  • I closed a target store card once and the reason I gave was that I had suddenly become unemployed had no way to pay back any debt accrued on the card should I make future purchases. They accepted that reason and my credit score was not dented. Today, I would like to have a couple of cards but each time I apply I take a hard hit and it lowers my score. I do have a lien and can’t pay it yet. That shall happen soon.

  • I appreciate you being so honest, educated and candid about telling me where I messed up with my credit and offering free as well as paid options on how to fix it. Thank you!

  • They can charge us whatever they want. There isn’t anything we can do about it. The cost of an accident without insurance is detrimental.

    • I agree. The above 8 excuses that’s commonly used for jacking up our insurance rates, are the most popular except for number 8. Since I have not heard of any insurance agency checking your credit score to sell you insurance. Therefore, I agree that it may come as a surprise to all of us, as someone had stated. I just hope they don’t start.

      Insurance is now the 3rd most profitable industry in the world today. Due to the complexity of these types of businesses, we have a hard time nailing down any facts of how our money is ripped out of our bank accounts. We just know that we’re required to pay higher rates to live in the states every year. I would not blame it all on insurance, of course. Marketing strategies dictates that the more you need or want something, then it will cost you more. As the successful sales representatives must push your wants to be a need in life. Yup, we will buy anything a good sales person sells to us because we’re Americans, damnit. LOL

      • Humm ALL!!! insurance companies use your CREDIT SCORE as a MAJOR Factor on COST !! OH YES THEY DO ! You can have a clean record for over 15 years , have filed no claims what so ever , yet have a score below 650 and see how they will not if sock it to you … Oh the flip yes they do … all of them and haven forbid you live in a bad zip code per them…an area were people dont pay bills on time (what the heck is that my fault !! Hey mr. neighbor please pay your bills on time so I can have good insurance rates !!!

  • Yes Mike, I would call that a great anamatoin video. Very informative, I will be giving it a try.
    It doesn’t hurt to try it.

  • You’re not helping, John.

    A few states prohibit insurers from using consumer credit information – California, Massachusetts and Hawaii for auto insurance and Maryland and Hawaii for homeowners insurance.

  • Thanks Mike! My credit score literally jumped 30 points after getting my credit ratios to 30% and less. I’m now at a 757 score and amazed at how quickly the score increased. God bless you.

  • This article should mention making payment arrangements with the medical provider. Many are understanding and will accept small monthly payments. Only one of the providers I have dealt with charged interest. I would generally agree to a $25-50 payment and always pay more when I could. Several accounts took two years to pay off but that was fine with the creditor as long as I made payments on time.

  • I think this is great!! I’ve never had credit. I’ve always been a cash person or debit prepaid person. Very eager to learn this system.
    Nora Roscoe

  • YOU just told my story , I bought a car and found out my score droped so I’m paying xtra 100.00 month, Ive been following your suggestions and wrote letters. So far so good. Thank you so so so much
    Sincerely Rose

  • Awesome helpful information. Well worth the time viewing and taking notes. However, the info “listed below” with links was not on my computer.

  • I used to be suggested this website through my cousin. I am now not certain whether this publish is written by him as nobody else realize such specified about my difficulty. You’re incredible! Thank you!

  • Thank you ,,so much,,i really think what u are doing,,educating others to learn now,,that its never to late,,,if u can do it we can so i for one thank you i am a 603,,,retired but have no late payments,,and no missed payments so i thought i had good credit,,,wrong,,so many different things they look at,,Good Luck all,,,and Thank u all,,for sharing this great advice,,,Linda Bolin,,

  • Yes ,your right about the savings account amount . I was trying to hard. I need to find a online savings account. Thank you.

  • This is great info thank you for sharing. Knowing is the start to a better life and credit score. My sis always said to have an emergency fund but your info has encouraged me that I can do it.

  • Thank you so much i felt i would be forever in trouble with my score and to be honest i gave my credit cards to a close member of family thats where i went wrong because they ran them up but never paid so it was my doing that put me here now i need to get my credit back if at all possible thank you forever thank

  • You would think that at my age (62), I would have done this a long time ago. For some reason, I ignored the obvious and didn’t start. I will now. You gave me the incentive to get my score over the 650 it stands at now. Thank you.

  • Excellent solutions taught to us all consumers to get the best Fico score possible to attain in your credit report . Means LOWER RATES AND SPEND LESS MONEY ON INTEREST,. AWESOME MIKE! YOU’RE THE GREATEST.! THANK YOU !

  • You bring to the forefront information I’d already been made privy to. But sometimes you need a bit of a kick to do what you know you ought to be doing. Thanks. You remind me of an account I have already set up and just need to utilize it. Will start saving today.

  • Information was clear and concise. The information was exactly what we had been told from a Quicken Loan association and it was good to hear from another source that their information matched. Thank you!

  • I read your lessons pratically everyday, you are always absolutely right. It comes from ignorance on the regular public on how to try to pull it together and make it right again. Granted, it is mostly our fault, amongest other things unprepared for that we over-use our credit cards. No one wants to get in this position but sometimes when your back is against a wall you believe you just can’t make it any worse. But, lessons like you have presented show the picture of correction of self faults and you give us hope. I don’t know what your position is, whether you just teach or whether you actually are someone that can stand in for the wrongful doer and straighten the debt out. I would totally trust you if you work for folks on their behalf. Thank you again for your knowledge on credit and credit cards, Sincerely, Barbara

  • Well I do have a separate saving account with a different bank, I started that about a month ago they take out $25.00 a week from my check! So I’m on the right start!

  • Your video gave me vital information that I never gave to much thought. I am finding out now when I apply or move to a new place that because of my score I had to pay a higher fee to move into my new place.

  • I feel very Embarrassed to have a Credit Score less than 600, at age 62!

    Hopefully Others won’t wait as long as I have! Really Great Advice and not Complicated!

  • Very helpful information. Just as you said I thought there was no end to me drowning in debt. I am not ready to change my numbers.

  • I was like….how’d he know that was my problem?! Great video and I was just telling hubby we should do this;) can’t wait for tomorrow!!!!

  • This is my first time getting information regarding my credit status and how I can get it repaired.
    Thank you

  • I just have to say I loved this article as I honestly did not know the repercussions of using a debit card. Now I will probably never use it except for certain circumstances, but thank you so much for such incredibly useful information.

    I subscribed to Credit Solution as I thought I knew enough to get by with what I already knew about credit, but boy was I wrong. I absolutely love Mike’s tips …… so many that I’ve saved all of them so I have a Library of Credit Questions to go to when I have a question.

    Not to mention I learn something new almost every time I get an email from him and for you, Jason, I truly thank you for explaining why using your debit card is not a wise idea. I admire people like you and Mike that help those of us that are just too busy to learn about all this stuff but my biggest problem is I usually learn too late; I’ve already committed the dreadful mistake!!

  • If i was building a house you have hit all the nails on the head so far and I am looking forward to listening to the next video.

  • My wife and I are In the process of getting ready to buy our first family home. This website is filled with lots of great information to work with. So you know what needs to be done before buying your first home.
    I would highly recommend this to all my family and friends.
    I have learned alot from this website . I now feel more comfortable in the home buying process. Now my wife and I are on the road to getting prequalified so we can purchase our first family home.

  • This was very helpful. All this credit stuff is very over powering. Your videos are helping feel I can fix my credit. Thanks!

  • thank you so much for helping people like me out there to establish incorrect our credit score because as you know there are no people out there willing to help people like us improve our scores sometimes when were young and stupid we do things without thinking towards the future and with your help now we can correct it thank you so much

  • Excellent tips on how to raise credit score fairly fast, while the first action was fairly basic the second strategy was completely new, and I have not seen before. Extremely helpful.

  • Yes. I usually pay on my card twice a month if I use it for a large purchase so when my bill due time comes the interest is lower.

  • You were right on the money with my #1 credit killer. I knew this to be a personal goal/issue for years but what I didn’t realize that it was affecting my credit score. Thanks for the info and tips. Usually when I seek credit score adive I get a whole bunch of info I already knew and then get asked for a ridiculous price for someone to do what I can do for myself. You are the real informative deal. Thanks again.

  • Information I knew but have chosen to ignore. You’re spot on and down to earth approach has given me the push I needed to take my credit score and financial security more seriously. Thank you!!

  • Your info is very helpfull, thank you, I am most concerned about collections, mine are past 7 yrs and my credit is rising, I am reading your E BOOK on how to remove them and raise my svore even more, thank you again

  • Most people beleive that the whole purpose of an emergency fund is for just that and will need to have a large amount

  • You are such a huge help! Your posts and book are easy to read. Cancer blew my credit to hell. Just shattered it! With your shared knowledge I am well on my way to being a homeowner! THANKS Mr. Roberts

  • Good article. The only thing I suggest be added is: If you have a negative net worth at the time you settle your debt, you will NOT have to pay taxes on the settlement. You will have to file IRS form 982 to let them know you were “insolvent” at the time of the settlement.

  • You know it’s really not about the amount of money. It’s about successfully handling the amount that I have been blessed with, and learning ways that are not necessarily public knowledge, to make the best of what I have, or expect to have.

  • My income right now is $15,050. I told Edservices that I wanted to start paying them $100.00 per month. They keep telling me that my income is too low to qualify for any of their repayment programs. So I keep requesting deferments so they don’t mess up my credit. Is it possible for me to get my bank, Wells Fargo to buy these loans so I can have them take money out of my account every month. Please guide me in the right direction. I am in the process of increasing my credit score by following The Credit Solution Program website. Also, I requested by mail a free copy of my credit reports. Transunion wrote me back and wants to charge me $11.00 because they have not had any activity on me for 2 years. Shouldn’t I receive a free annual copy. Increasing my credit score is quite a task. Thanks for your help!!!

  • This was very helpful. I really need to get started on this right away. Saving is always good especially to help pay on debt and to increase your credit score.

  • I’m not sure if I can ask a question here but thought I would try.

    When you transfer a balance should you close the old account or leave it open? I have heard that closing it will hurt your credit but I would think having too many open accounts would hurt your credit because it shows you have too much availability. No one ever seems to know the correct answer. Thanks.

  • I just started with the company and felt just like my world had came down on me. Everyone was so nice to me when I knew I was driving them crazy. In life we all do dumb things ok let’s move on and I did. My credit score is way off the chart but I really felt good by taking the first step. I know it will take a while to get my credit score to that 750 or higher but I can wait. Thanks

  • This video was very helpful and I have been following these step on my own and you are so right. I have watched my score increase continue to grow.

  • I’m a personal Banker and this information was very informative. I use your advice on a regular basis and now that I know more I will adjust and use it even better. Thanks Chris

  • I really enjoy reading the news letters that you send. The information is very helpful. You make it very easy to understand .There are so many things I didn’t know about credit and how it works. Thanks to you I’m learning what to do and what not to do.

  • Why do I have a score of 580 with freecreditreport.com and a score of 649 with my capital one credit score tracker? That’s quite a difference!

  • I have been using your tips and advice for the past 24 months and have been able to not only raise my credit score to the mid 800’s but have zero credit card debt and have managed to save a 5 figure amount in savings. The tips and advice you give are solid workable options that has helped me and my family save for the future. Thank you for sharing.

  • I am a retired businessman.I am pretty good with finance but it never cease’s to surprise me that I learn from you most of the time. Keep up the good work that you do. Thank you very much. D.R.

  • I Love receiving your emails with your ideas & tips! Ive been implementing them for over a year & I just bought my brand new car last week! Thank You!! Never give up! Bad credit is not a life sentence!

  • It was very helpful when you pointed out some key points on actually what I am doing and what I do feel that I need hopefully this works for me

  • Going to get started right away with paying down my high balances and calling to raise our limits. We want to buy a new house soon and want our scores to be higher. 710 right now so not too bad.

  • My credit score was a 690 before I purchased my car last year I have never been late only use 25% of my credit and my score will not go higher then a 640 now. What can I do to increase this faster or am I doing something wrong all credit is on auto pay and paid before the due date.

  • Thanks for the video & trying to help ppl like me. Saving is so hard for me now & when I was young it was so much easier.

  • Im with lexington, getting the removals, but my score is low and i havnt had a credit card. I want to get one and make payments to boost my score, but cant get accepted, and when they turn me down, it just makes my score even lower ……..wow

  • I am very appreciative of You guys!! I have a long way to go, but with hardwork & sacrifice, i know in my heart, i will get there. I have to significantly lower the balances on my credit cards & start saving… I get so overwhelmed with this truth because of the status of my current income; However, after reading this and yesterdays message (or the day before) I am truly encouraged that I can make this happen for me & my daughter. You & Your staff are appreciated.

  • Well, against this advice, I went in to the hospital business office and had a no interest credit card, (which would give me no interest for 12 months), and offered 40 percent to cancel my debt with them, instead of making several payments and then negotiating. It worked wonderfully. The bill was forty-cents on the dollar and I could live with that. (Keep in mind that you only do this once all the bills are in and you are left with the private share to pay. If you have no insurance then this rule does not apply and you can make your offer only after you have clearly checked the entire billing for errors.)

  • Great information I am working with a credit repair company to get the negative off my credit report thanks!

  • Your articles are very interesting. They teach me many solutions and or resources to improve my credit. I truly appreciate this site. Thank you.

  • Your presentation is very inspiring.I’m totally motivated to get my credit score up! Thank you so much!

  • Took the advice I learned from credit solutions and filed a “motion to set aside a default judgment”. I was not properly notified, nor was I even in the state when the trial or document service was reported. I took a chance and I won my case after filing the appropriate paperwork. Not a slam dunk their lawyer was there representing their interest. I represented my self with proper documentation proving I was not served correctly thus not able to defend myself properly. My motion WAS granted so I promptly sent letters to the 3 credit agencies. Thank you Michael! Hope my score rises quickly.

  • How can I remove a lien for a civil judgment that was discharged recently through bankruptcy? The law firm will not sign a release of judgment lien full release.

    • You can write the credit bureaus directly. They will discharge the lien as long as you provide proof of payment in full.

  • Nice article if you in your early 20’s. I’m 56 and due to unfortunate events have not been able to save much at all. I’m one of those who will be working until he’s dead.

  • In 2010 I received a Premier Mastercard. I kept all payments current and in the last few years have received Capital One cards. One Quicksilver and one Platinum. My question is, I want to PAYOFF and CANCEL the Premier card as it was used to re-build my credit AND they charge a yearly fee of $145.00 payable in monthly installments; if I pay it off and cancel will it make my credit look better OR NO?…….THANK YOU FOR CONSIDERATION.
    Respectfully,
    Heather

    • I have tried to get a new credit card that was recommended by TransUnion and was denied dropping my score from 688 to 685.I have a stellar payment history for the last 4yrs, I paid off all my depts and only had 1late payments!

    • They say to never close a card, it will ding your credit. However, if you don’t want to pay the yearly fee, close it out, but expect your score to drop a little as a result. Just pay extra and on time with your Capital One cards, and it will bounce back.

  • I love the information that I get from this website. I am positive that I have reported debt that has been “re-aged” by selling it to a third party. Now, to do something about it.

  • I tried this snowball affect after doing hours of research.I played off lower debt first now I’m down to just two credit cards with a low balance my score increased 60 points in just 5 to 6 weeks I feel so much better about my debt now that iv deleted over 6 accounts.I now just started a part time job and plan to use those first few pay checks to pay that credit card debt.I feel great after reading this although iv already taken these steps before reading this article.Lowering your debt is very possible I’m one who thought it was impossible.

  • Hi. You information and advice has giving me hope in reference to my finances and the possibility of a better credit score. Thank u. Keep the info coming. It really helps. M.Millan

  • Thank you! You’ve outdone yourself with this mailing.
    So much material to just relax in and think about.
    Thank you — Thank you — Thank you / D

  • that is absolutely correct I feel that I need to make a lot more money in order to pay out my debts but I am disabled veteran and it is hard

  • How about best credit cards that will help the low score person under 600 to raise their credit score ?!? After all, people with good to great credit don’t read your blogs.

    • Try opensky, they report to the bureaus 3 times a month. Great way to rebuild. Use the card for gas or Netflix and nothing else. Keep a $5 running balance. I’ve seen it work.

  • I fell into default on my student loan because of two reasons. First, the amount they assigned me to pay was too great for my income, so naturally, I fell behind and second, I lost my job and was denied forbearance and fell into default. How do I get back on track? I’m still not working, but now for medical reasons, nor can I afford the amount they say I have to pay.

    • There are Student Loan Forgiveness Programs out there and while you have to join and pay a premium up front after a few months the payment drops to around $40.00 per month on a Pay as you earn program.

  • secured cards are GREAT! I opted to go with Capital one. I had to pay a fee for the card in addition to the secured amount however, with on time payments I was able to apply for a capital one non secured card. It started with $500 and 1.5% cash back. They sent a letter saying 6 on time payments will get me 250 increase to 750. It’s been a great card. I use it to pay bills, and buy groceries etc. Once a week I send a payment in for all that I used the previous week which I would have used cash to pay. The balance goes to zero and there is constant activity on the card.

  • I filed for bankruptcy over twenty ( 20 ) years ago… is it seen anywhere on my records? thank you.

  • Real good. Bush and Obama bail out the automakers and insurance companies for billions, but the 37 million students who were duped into believing they would be able to repay their loans get it up the !@#$$%. The message to our great President is do the right thing and forgive these debts, then toughen up on who should get theses loans in the fierst place. Don’t make this younger generation turn into an older one that has to die in debt.

  • Thank you for your easy to follow step by step method. It’s very well thought out and you have made sure that it is not overwhelming for someone who has never dealt with this kind of information before. May our Lord compensate you for helping out others with your acquired knowledge through your personal life experiences. Especially because it is attainable to the masses who are in dire need as myself. To top it off, the fact that it is without cost only testifies to your true desire to help others. God bless you!!!!

  • Debt to limit. Does that mean I should get my credit card debt to 50% of its limit? That alone will help my credit score?

  • excellent and powerful motivation I look forward saving money and invest for my baby college education thank you .

  • Thanks! It’s almost been a year since we bought our first home. Hopefully this will help us with raising our score back up and managing the debt!

  • If you choose almost any option to consolidate multiple cards, either through a balance transfer, personal loan or home equity line of credit, etc. you will almost always come out way ahead. As oppose to keeping those separate individual cards with their existing interest rates and fees.

  • Thank you for helping be aware of what I should do to have an emergency fund, and how it can keep me out of debt.

  • Good advice but I need more info once a day is not enough I prefer it all at one time. I guess I’m anxious

    • Hi Chris,
      Your debt to income ratio is not a factor for your credit score. It’s the percentage of your gross monthly income that goes toward paying debt obligations. Debt to Income ratio is often used when qualifying for a mortgage loan, but it’s something entirely different than the Credit Killer presented here (Debt to LIMIT ratio).

  • The system works. I was able to raise my credit score up to 713 it was at 516. But, am stuck their at 713. Not sure if to delete old open account that are in good standing with the creditors. Or what else to do.

  • Thanks for the info but I don’t understand why we cannot buy something & pay it off in 6 months or even a year? I mean 12 months same as cash should not lower our score. We built a new home & it’s difficult to decorate if, add upgrades, etc. without incurring a bill. I usually charge what I can pay for but household items are expensive and unfortunately, I’m not rich.lol And I don’t want to take any funds out of our savings for this. I can’t see how your fico can go from 742 down to 701 so fast! My total CL”s are 52,000.00 and I have 9k on my Restoration Hardware card right now. I am trying to do everything right. Have all set up on auto pay just in case. Do you think it was the combination of new real cc’s, hard pulls & the 9k charge that made my score dropped so drastically? And do you know how long it takes to bounce back?

    • Hi Rose, it depends on the limit for your Restoration Hardware card. Most likely that is what caused your score to drop.

  • Hi, I’m a little confused, The article caught my eye. with investing with just $25.00, however I continued to read more of the article and it had different options with more than one company. I have no clue where to start with investing my $25.00, I mean do I start with vanguard, open an account there, and go from there, is a step by step guide for this

    • article caught my eye. with investing with just $25.00, however I continued to read more of the article and it had different options with more than one company. I have no clue where to start with investing my $25.00, I mean do I start with vanguard, l will open an account there, and send me information go from there, is a step by step guide

  • I have learned so much from Mike in regards to cleaning up my credit. My score has gone up 41 points in the last 13 months by reading his terrific steps on how to increase your credit score. I purchased the Credit Solution Program and followed his steps to the letter and my score continued to rise.

    Thanks Mike for everything.

    Larry Marshall

  • wow that is crazy! great information and thanks for the help I am gonna do this…I want my score great/excellent! and u are right about this I do not have an emergency fund…and I desperately need to have one…but it is gonna be really hard…and I never knew that u can actually look at ur credit score…cuz when I wanted to look at it a bank said no and I was like what? it is my credit score.! so thanks so much for helping me this is great I want to get great score by this summer for lots of reasons that u have said in the video too but defiantly for my business…

  • I have 0 credit after the fall in 2008 but before that, I had a bankruptcy and credit at many different institutions. Now after that fall I have 0 credit and because I did as I was told and got rid of my cards I only have accounts open in Idaho and I live in Minnesota. Can’t charge stuff and have it shipped to Minnesota for installation. I lost my house to foreclosure after losing my job and filing Chapter 7 in 2002 discharged in July of 03, in Boise. Had I found a job, I would still be living there maybe or I may have been able to sell my house. Now, because I did as I was told, since the crash I can’t get a card to save my life and I am looking for work but because I have applied twice and been turned down both times, my rating went from 696 to 636. How do I pay off my Tax Lien if I can’t earn enough to do so? Catch 22 that has not been addressed.

  • This was helpful. The CA that shows on my report should never have been there in the first place. It was a medical bill that was covered by charity care 100%. The original debtor never filed the claim. They were given the info numerous times, over the phone & by mail. In my mind (crazy as it may be) this isn’t my debt. Any advice is appreciated.

  • The presentation was great! I noticed my credit card companies seem to just raise my limits once a year. My credit usage is 41% so I have to pay down some of the balances to get to 30% or less.

  • I have high credit card balances – my wife thinks we should close the accounts – I disagree, shouldn’t we keep these acounts active as we try to pay them down? The segment regarding the impact of credit ratings on insurance was especially interesting.

  • Hi Mike iam very glad that you let me know more about credit score. I will be keep a check on it just every day so I thank you. this is the first time that I have read your material thank you for those word.

  • I have had my credit scores and reports used against me for employment purposes at a high end employment agency, the position was for IT Administration / Support for a popular Armored Truck company.

    After deep discussion with my recruiter/ headhunter we couldn’t figure out what the hold up was, so we called them on it .. they said point blank I was a credit risk and with access to “armed individuals who were protecting the money ” I may become a liability given that i have a bankruptcy in my past.

    None of the recruiters I have worked with since then have denied , It can be a major factor .

    • I love accuracy and I may have made an error in my prior comment to you. Only certain agencies have to meet the yearly requirement of a free report,

      Not all of the Consumer Specialty Reporting Agencies are required by law to send you a free report every year. The link to the Government site will give you the information on this subject for each agency.

  • Amen to your report on the worst credit mistake to make. Been there, did that! Hurt my credit for years. Finally got out by selling the house (and losing 25K).

  • Thank you Michael,
    I did not know how to improve my credit scores after watching video. Great tools to learn to educate myself from it.
    Thanks again for this info.

  • Excellent. …. best help I have had from anyone to fix my credit score, no one seems to know what to do when you ask this question. Thanks again.

  • Great information. My credit is not as bad as I thought but I also Didn’t know how easy it was to fix my minor problems with my credit. Thank you! 🙂

    • So far the info to me is the basics & as of now …I’ve spent 15-20 min on obtaining knowledge to the subject matter @ hand..Although it is good iinfo the described 2 min fix is well beyond

  • Your videos have been very informative and detailed. Awesome Value! However, I do not see the links for the letters you spoke of in your video.

      • I loved the video. I have to tell you, I am so excited! I have needed this help for a long time and have known it, but I was just too embarrassed to go to someone for help! Doing this online is such a great idea! I can work on my credit, with help, without having to look someone in the eye and hang my head. Thank you soooo much for the help!
        Renee

  • This is a lot of good information to digest. It would be good if there was a way to replay the information on my screen.

    Thank you.

  • Hi Abbey,

    Re-aging has me confused and I am trying to get an answer that I understand. Here is the situation: My son’s girlfriend was I an auto accident in Florida in August 2009. She was the only one involved. She had limited car insurance. Her medical bills totaled over $9000 and her insurance covered up to $5000. She was unemployed at the time and had no other medical insurance. She was young and unaware of the consequences the unpaid medical bills would have on her credit score in later years. She did not pay the outstanding balance to the hospital. She also moved from Florida to Pennsylvania. The notices from the hospital stopped. In January 2014, she began receiving collection notices from a medical collection company. She was advised they were trying to collect the $2929 remaining balance from her 2009 accident. Since she is residing in Pennsylvania the SOL is 4 years which would have been August 2013. She is aware she still owes the debt, however, her credit report lists the “date opened” as 1/2014 with the last activity 6/2014 and a pat due balance of $2929. She does not have enough money to pay off the debt in full at this time but is willing to make payment arrangements however is concerned that the date opened lists the debt as recent and will remain on her record until December 2021 instead of falling off in July 2016. Also, it appears the past due balance will stay until the debt is paid in full instead of listing it under the current balance with a payment each month and only listing a past due if she fails to pay the agreed amount on time. She has not contacted the collection company yet as she is waiting to hear from you. I would like to help her as she and my son are planning a wedding and would like to purchase a home in the near future. Thank you.

    • Hi Diana,

      Thanks to our author and personal credit expert John Ulzheimer, I have some insight to help you with your question.

      First, the statute of limitations only pertains to the amount of time the debt collector is legally allowed to sue you over the debt. Even if the SOL is expired, you are still obligated to pay the debt (you just can’t be taken to court over it). Re-Aging refers to the reporting of the debt.

      According to John, “the collection can only remain on her credit report 7 years from the date of the default of the original bill. The collection cannot remain until 2021 because that would suggest the doctor’s bill went into default in 2014, and clearly that’s incorrect. The “date opened” on a collection is a little confusing and doesn’t actually mean the account was opened on that date. Date opened on a collection is simply the date the account was purchased by the debt buyer OR assigned to the 3rd party collection agency. It is NOT the date used by the credit bureaus to purge the item. There’s a date
      called the “FCRA Compliance/Date of First Delinquency” associated with collections. That’s the date of the first delinquency that lead to the default. That’s the date used as the “purge from” date. She may not be able to see it on her credit report but it’s there. You cannot report a collection to the credit bureaus without that date.”

      Hope this helps clear things up!

      Abbey

  • I have not had a credit card for almost 10 years my credit score is 580 I applied for one at Barclays they would not give me one because of no credit cards and late payments and not enough credit histiory do how can you help me to get a credit card I don’t have a lot of credit just parent school loans

  • Is it wise to use two credit repair companies at one time. I have been using Lexington Law and they were able to remove a few items in the first 3 months but now it seems like things went to a hault. I was considering using another company in conjunction with Lexington Law so I can get a few more items removed so I can buy the house that I want before I relocate again. Im military.

  • Mike
    If a creditor lowered your available credit amount due to many other open credit with high amount but not over or half the amount on the cards; will this bring your credit score down?

  • Hi,

    Thanks so much for the valuable information you provide. I want to ask your advice about re establishing credit after a ch.7 bankruptcy. It took me three years to finish grad school and pass my teacher exams, meanwhile I was earning very little while struggling to earn my degree and teaching credentials. I really need excellent credit now and i am afraid to make mistakes, so any advice you can offer would be greatly appreciated.

    Best,

    Sayyah

  • Makes you wonder why every time you fill out a credit app they always require you to put your income range in from a drop down box of choices, or put it in manually.

  • I have used Lexington Law for 9 months now. My score has gone up a little but I still have trouble getting loans. Should it take this long? I’m tempted to discontinue with them and go another direction. What do you think??

  • My husband has a judgement on his credit report for a old credit card debt. The company Arrow Financial who is no longer in business placed the judgement against him. The judgement states in the court docket that the case is closed the attorney for Arrow Financial also stated the case is closed and is no longer being pursued. But when we spoke to both the court and the attorney they said neither one of them could remove it from the credit report. I have wrote a letter to the court asking them politely to please have them remove it, I also contacted the BBB and filed a complaint, Neither one of these have been very much help. HELP what can I do next to have this judgement removed? As a consumer I’m at my wit’s end on this one it seems very unethical how they can get away with this.
    Any assistance you can give me on this would be very appreciated.

    • Hi,

      Unfortunately there isn’t much else you an do if the court system and creditor will not agree to remove the judgement from your report, even if it is paid. The amount of time a judgement stays on your report varies from state to state, however they generally remain fro 10 years.

      Abbey

  • Is there such a thing as a creditor breaching a contract. In the event that they do not follow the agreement. What happens then? Who to contact when this happens?

    • Hi Jessica,

      You can check to see if the creditor has a dispute process in place for issues like this. This information can usually be found on their website. If you feel that a creditor is violating the law, you can file a complaint with the Consumer Financial Protection Bureau or the Better Business Bureau.

      Abbey

  • I am using Lexington Law Credit Resolution.
    They are fantastic. It had been 10yrs since I had looked at my credit. I received a book from a catalog company,and it said I was pre-approved for$400. However: that proved not the case. So I was totally throwed back. I took a look at my credit report and wow stuff from 14 yrs was still there, things that had been paid off etc. Oh the big one was a car repossession, that I am still driving and making payments on. Yeah really! Within the first month four items removed and three items challenged. And they gave the option to stop there services at any time. I always speak to a live person, and my questions are alwsys answered,and I am satisfied with the answer.

    • Hi Linda,

      Thanks for reaching out–how much has your credit improved since you started working with Lexington Law?

      Abbey

  • Hi Abbey, I desperately want to improve my credit score. I understand that the fastest way to do that is by using secured credit cards. It seems like there are millions of them out there. Can you suggest a few good ones that will do the trick? Thanks in advance.

  • I use rent to own places to get furniture. I’ve paid on time and even took a few contracts to completion. Is there a way to get those accounts reported to my credit report? If so that should help raise my credit score

    • Hi Fred,

      The only way for those accounts to show up on your credit report is if the rental company reports it themselves. There are strict guidelines governing what can be reported and how it must be reported, but there is no requirement that lenders have to actually report in the first place.

      You can ask this company to report your account, however to do that they would need to have accounts set up with the bureaus, which takes time and money on their part. If they will not report for you, look into opening a credit account or installment loan with a lender who does report to all three bureaus. Make sure that they do this before opening the account and make sure to make all of your payments on time, and you should see a boost in your score.

      Abbey

  • My husband and i hired step 1 credit repair. With in 45 days which the credit bureaus have to respond, we have been getting letters and see where the bureaus have been removing items off even pd collections. Our score has been slowly going up which we now can qualify for a home loan that was not reachable 5 months ago.

  • I’m really kind of skeptical bout credit cleaners because I tried it once and it didn’t work.so what guarantee will I have from u all the other folks said the same thing they clear ed them off but they came back bout 3 months later

  • One other thing about collection agencies…they are not your friend, they are your adversary, no matter what they say or do. The only way they get paid is to get money from you. Period. Lying and trickery is part of the game. If you want to deal with these individuals, and you agree to send money…DO NOT send a personal check, or even worse, authorize an electronic transfer. Once they have your account info, you have lost all control of your money. Ideally, a money order, or even better, a certified or cashier’s check is the only way to give them money. It is a headache to get, and it may cost you a buck or two, but you still control your own money!

    • Hi Pat,

      You make an excellent point about being in control of how your funds are transferred to a debt collector. Have you had experience with this in the past that you can share?

      Abbey

  • Here’s the problem I ran into: I tried to settle a debt and the collection agency refused to give me a “deletion for payment” letter. I decided not to pay the debt as there was no advantage for me to do so. The date of last activity was over 3 years ago. However, the collection company is now listing my debt as having delinquent payments using the current month… in essence “re-aging” the debt. Is this legal?

    • Hi Diana,

      “Re-Aging” occurs when a debt collector extends the “purge from” date of your debt (the date it is automatically removed from your report, generally 7 years from the date it was first sent to collections). If you haven’t paid this debt and it is still within the 7-year timeline, they are within their rights to continue to report it to the credit bureaus. If they have changed the purge from date, then they are violating the law and you should dispute this error.

      You can learn more about re-aging debts here: https://thecreditsolutionprogram.com/staging/re-aging-sounds-fun-but-not-for-your-credit-report

      Abbey

  • Look forward to your e-mails. I have been unemployed the past four years, my credit is shot. I wanted to sell my house and move south and applied for a pre-approved G.I. mortage and was denied. I turned sixty two recently and jokingly consider myself “gainfully unemployed”. I will get my credit back. Your information is the tool to achieve this goal.
    Best regards,
    Ted

    • A basic Google search should give you some samples and templates to get you started. Whatever example you follow, make sure you tailor it to your particular situation.

  • With the statute of limitations, is it from the original borrowed date, last payment date, or sold date to a collector?

    • Hi Jake,

      Generally, the statute of limitations “clock” starts ticking from the date that the first payment was due. However, these restrictions vary form state to state and depending on the type of account, so it is best to check with your state attorney general’s office to determine what the rules are for where you live.

      Abbey

  • Hi.
    What about if I completed a settlement almost 5 years ago but didn’t know about the deletion letter?. I completed the settlement with a collection agency and have all the papers (there was a second mortgage). Can I have the opportunity to make an arrangement with them for a deletion?.

    • Hi Blanca,

      You can certainly try to ask for a deletion, however since this is not their standard practice and this account was paid so long ago, I wouldn’t count on them granting your request.

      This item will fall off of your report after the 7-year mark, but in the meantime you can try disputing the item with the credit bureaus themselves. If you request verification of the debt in writing, they will request this information from the original creditor. If the creditor does not provide this information within 30 days, then they are required by law to delete the item from your report.

      You can learn more about this and get some sample letters here: https://thecreditsolutionprogram.com/staging/collection-accounts/

      Abbey

  • I had a credit card over 10 years ago. I got sick and fell behind. The same credit card company send me another card in which I always paid on time. To make it short, I paid my bills over the phone or online, the person credit the wrong account with the payment and next thing you know it . My bank account was frozen. I travel alot working so I never received any letter from Household bank that I was being sued and had a court date, you know why because I wasn’t home. They said someone signed the notice who didn’t live there. To make it short, my bank froze my accounts and they took the balance which they said was 1800 for a 300.00 limit credit card. The account was over 15 years old

  • The article should mention that, when negotiating for a settlement, you should ALWAYS ALWAYS insist on a letter from the collector, that specifies the details of the settlement prior to you actually giving them money. They are notorious about not sending those letters once they get a payment !! And another thing…if possible and really try to get this, is a “deletion for payment” letter. The collector can send you a letter that says they will will delete the debt from your credit report if they receive your payment, which is better than a “settled for less” on your acct. They don’t like to give those deletion letters but they can ! If you pay them a little “extra” they might do it. I always try extra hard to get them to accept a little more money and in exchange I get my deletion letter.

  • Is it possible to go directly to the original company and settle the debt and not go to the 2nd party collection agency?

    • Hello,

      It may be possible to negotiate directly with the original creditor, if they still own your debt. When a creditor has not received payment for 6 months, they typically assign the debt to a third party company to collect it, or they sell the debt to them entirely.

      If your creditor has sold your debt, then you will likely have to deal only with the agency that they sold it to. It makes sense–they bought your debt and will only get a return on their investment if any payments you make go to them, not to your original creditor.

      If your creditor still owns your debt, you have a better chance of being able to negotiate with them directly. Contact your creditor directly and ask about negotiating a payment with them, either in a lump sum or a payment plan that you can realistically follow. Make sure you don’t send any funds until you have the terms in writing.

      Good luck!

      Abbey

  • Please don’t forget, that when you settle your account for a reduced amount, you will have to report the difference on your tax return. The company will send you a 1099C for the amount that was not paid. Depending on you fincinancial situation you may have to pay tax on the balance. However there is a insolvency worksheet that you can fill out to see if you really have to pay the additional tax.

  • I had a collector call me 911 on my phone, since I had never seen a 911 call , I immediately answered it thinking that my husband or child was seriously hurt. So when I answered the call , the guy on the other end of the line identified himself as a sheriff and told me that he was coming to my job and home to have me arrested. I was so furious with him that I called him every name but the child of GOD and told him NEVER to call me again. Low and behold he calls again from a 911 number again and again. He called my phone that day about 30 times. But when he called the next day the caller ID showed all zeros i.e 000-000-0000 is this even legal?

    • Hi Shirley,

      According to the FTC, debt collectors are prohibited by law from harassing you with repeated phone calls or by misrepresenting themselves as law enforcement. If this debt collector continues to harass you, you file a complaint with the Consumer Financial Protection Bureau here: http://www.consumerfinance.gov/complaint/

      Abbey

  • Understand you may need to pay income tax on the settled amount. The IRS considers the unpaid amount INCOME and you should receive a 1099-C from the settlement company. Unless you are insolvent or declare bankruptcy or the settlement was for a mortgage – you owe more than you are worth. Settlement companies have a habit of saying don’t worry most people qualify for insolvency — NOT TRUE if you have a 401K or own a car or anything — home electronics, computers, furniture, lawn mower, furnishings etc….

    It is still worth it in the end but don’t underestimate the IRS tax implications could be HUGE

  • Please keep in mind all debt settled for eg: you owe $9000 you settle for $5500
    On your taxes you now have an additional income of $3500 to claim and pay tax on.
    I learned this the hard way
    Good luck to All !!!

  • When you settle a debt, for instance pay 5000 on a 10000 debt, does the 5k difference get reported as income to the IRS and you have to pay tax on it ?

  • The only time I make a settlement with the collection agencys I tell them I will only pay them after they send me a letter stating they will remove it from my credit report if when IRS paid. Other than that its not worth it.

  • I have received a settlement collection notice. My question is this, this item no longer shows up on my credit report. What should I do???The offer is half of $135.00 the 67.50 can be made in 2 payments of $33.75. Would it be wise to ignore it or to go ahead and settle it??? Like I said Sprint no longer on my credit report??? What do you advise?
    Thank you,
    Debi

    • Hi Debi,

      Whether or not you pay this debt is up to you. There are a few things to consider:

      (1) You still owe this debt, and Sprint (or the collection agency they are using) is still within their rights to try to collect it. They can keep contacting you to try to solicit payment.
      (2) Since the item is no longer on your credit report, it no longer affects your credit score.
      (3) Depending on your state, this may still be within the statute of limitations. If it is, then they can legally take legal action against you. You can find out more about your state’s statute of limitations by checking with your state’s attorney general office.

      Abbey

  • I offered to pay for any merchandise, shipping and taxes and they would not negotiate on any of their fees period.

  • I recently had a bad experience with Commenity Bank about a store credit card. Unauthorized they switched me over to electronic statements. I never asked for this. My woman within card which I had paid in full in February became two months overdue due to my husband ordering from King Size on it in march. I never received a paper statement. If I had it would have been paid. When they contacted me I asked about why I had not gotten my usual paper statement. And explained that I had not authorized a switch to electronic stayements. They would not drop any of the interest or overdue fees despite the error being on their end. I am considering chopping up my woman within and catherin’s cards and cancelling both accounts. Both of which had been kept paid entirely up to this.

    • Hi Ginger,

      If you no longer want to use a store account, feel free to cut up the card or put it away in a drawer, but it is not the best idea to cancel the account. The reason is that the age of your credit account and the number of accounts you have both factor into your credit score. If you have these accounts open and in good standing, they are helping your score–if you close them, they will negatively affect your score.

      If you have been a good customer up to this point with Commenity Bank, you may want to try again to have the late fees dropped. Like any other business, they likely do not want to lose a loyal customer. Try talking to a supervisor and letting them know that this issue is causing you to consider canceling your account altogether. With this information, they may be more willing to work with you on the fees.

      Abbey

  • I had two experiences with debt collectors. The first one was nice and when I asked her to tell me who was the original debtor, I recognized it and yes I did make arrangements to pay it off. Generally they are nice enough to work with you and make a deal to reduce your debt.

    The second call I received, the person on the other end was very snappy and rude. I asked her who is the original debtor. All she gave me was a go around with initials and never told me who it was. She then said if I am refusing the debt. I did not say yes and before I continue, I must know who I owe the money too. Now, I am certain that this may be reported as a negative on my credit report. It is low anyway.

    Thanks for reading.

    MT

  • a credit card company wrote me a letter that said they were going to sell my home.can they really do that

    • Hi Stan,

      If your debt is still within your state’s statute of limitations, your creditors can sue you in court for the amount that you owe. If you lose the case, they will be granted a judgment against you, which they can use to put a lien against your property. This can potentially lead to them forcing the sale of your property to recoup the amount that you owe.

      Luckily, there is something called the Homestead Exemption which protects a portion of the equity of your home in the case of a judgement. The amount of protection varies from state to state.

      In many cases, it’s not worth the creditors’ effort to complete this process, as they can only collect money if there is enough equity in the home to cover the mortgages against it, the amount protected in the homestead exemption. foreclosure costs, and other fees and liens associated with the property. Still, if you think that this letter is legitimate you should consult an attorney to figure out your next steps.

      Abbey

  • You failed to mention though, that settling a debt for less than the balance whose forgiven amount is $600 or more will require the company to send a report of such to the IRS and to send you a copy of that statement. You will have to report that forgiven amount on your income tax return and have that amount also subject to a tax amount. Those companies do tell you that, since they are required to.

  • I wanted to ask a question, I personally don’t have any debt collectors calling me. I do however have a scam person calling me at home and work stating that I owe a loan and that legal action has been taken against me. This has been going on for over 3 months now and I have never taken out a loan period. Some how they got a hold of my information so how. What can be done?, they will not give me any information or their company information, pretty sure it’s some sweet shop or at someone’s home. This is frustrating and I don’t have time for this, trying to repair my credit.

    • Hi William,

      If you are being harassed or don’t want to talk to this company over the phone, you don’t have you. You can tell them that you want to communicate only in writing–if they don’t comply, you can hang up. If you don’t engage, they can’t get any money from you, and they are more likely to move on to someone else. Second, you can ask them to verify this debt. You can insist that they send you evidence in writing proving that you owe this debt. Legitimate companies will comply with this, as they are required by law to do so.

      You can also call their bluff: If they tell you that legal action is being taken against you, ask them for the specific case number or court that the claim is being filed in. Let them know that you are prepared to contact the law enforcement agency directly to confirm this information. If the calls still come in and you are sure that they are not collecting a legitimate debt, you submit a claim to the Consumer Financial Protection Bureau here: http://www.consumerfinance.gov/complaint/

      Abbey

  • If after 7 years the debt is taken off my credit report and sold to a collection agency, what is my obligation to the collection agency?

    • Hi Richard,

      That collection agency owns your debt and is within its rights to attempt to collect it for as long as they can. They cannot put the account back on your credit report, and if the statute of limitations has expired they cannot take you to court over it. You do still owe the money and have an obligation to pay it to the collection agency.
      Abbey

  • When settling a debt, do they ever agree to report the debt is paid as agreed or paid in full? Would that not be a positive on the report.

  • What if the debt is over 7years old ? I know the statues of limitations in my state of Nevada is 4 years. So legally they can’t sue me for the debt right ? So what should I do?

    • Hi Sharlene,

      If the statute of limitations has expired on this debt, then the debt collector cannot take legal action against you for it. That’s good news–you won’t ever be dragged into court over this debt. However, you still owe the debt and the debt collector can still try to collect it for as long as they want to put forth the effort. The account can still show up as a negative item on your credit report for 7 years from the date it went into collections, but after that time period has lapsed it should fall off your report for good.

      Keeping these facts in mind, you may or may not want to negotiate a settlement with the debt collection company. Yes, you will never be sued over this debt, but are you OK receiving calls about it years from now? How you handle the situation is really up to you.

      Abbey

  • How do you handle pay day defaulted loans is it good to hire pay day loan consolidation if you have 5 or start paying slowly one at a time on your own

    • Hi Kay,

      One of the worst things you can do when trying to get out of debt is create more debt. There are reputable debt consolidation companies, but many are as predatory as the payday loan lenders themselves. If you are able to cut your expenses short-term to pay off these loans, the sooner you can get rid of them the better. It may also be worthwhile to try to negotiate a payment plan or settlement with the payday loan provider if they are willing to work with you. You can also read more about alternatives to payday loans so that you can avoid them in the future: https://thecreditsolutionprogram.com/staging/smarter-alternatives-to-payday-loans

      Abbey

  • Hi,

    Can most debt collectors delete the debt after you pay them??

    We are buying a house and two debts for a cell phone came out of no where ended up on my husbands credit. Our lender stated to pay it and ask them to delete it.

    • Hi B’onca,

      It sounds like you are talking about something called “pay for delete”–this is when, as part of the debt settlement, a debt collector agrees to have the account removed from your credit report in exchange for your payment. There is no official “pay for delete” program, and in fact the credit bureaus frown upon this practice. That being said, many people have reported that this tactic works, however I wouldn’t count on it as a definite possibility. If a debt collector agrees to do this for you, make sure that it is included in the settlement letter before you send in any payment so that you have a written record of their obligations.

      Abbey

  • If you account has been written off by the original debtor and another collection agency picks up the account and wants to settle will making an arrangement change want the debtor has on your credit “written off”? I know both are negative on your report

    • Hi Anna,

      If I understand you correctly, you are asking if settling a debt with a collection agency will remove the “charge-off” on your credit report from the original creditor.

      Although collection agencies have been known to agree to remove a collection item from your credit report in exchange for payment (sometimes this is referred to as “pay for delete”), this is not the norm and you should not count on them doing this for you. The same goes for the original creditor. Whatever you agree to in a debt settlement negotiation, make sure that you receive all of the terms in writing before you make any payments.

      Abbey

    • Hi Patty,

      When a debt is settled for less than the total amount, the unpaid amount is considered “cancelled debt.” The money that would have been used to pay this debt is now free to be used for anything the taxpayer wants. The law defines “income” as accession to wealth that the taxpayer has complete control over (basically getting access to money that you can do whatever you want with). Since cancelled debt falls into this category, it is considered income and is taxable.

      Abbey

  • I have received a collection notice on an unpaid Sprint bill that no longer shows up on my credit report. Since it’s a collection notice requesting settlement at half the amount owed to be made in two payments would it be wise to settle this account??? How will it effect my credit report???
    Thank you,
    Debi

    • Hi Debi,

      Since the account is no longer showing up on your credit report, paying it will have no affect on your credit score. As far as whether or not you should pay the settlement amount with the company, that is completely up to you and how you feel about having outstanding debt.

      First, you should consider the statute of limitations–if it has not expired on this debt, then you are still at risk for being sued and possible having a judgment against you. You can check with your state’s attorney general’s office to find out what the statute of limitation is where you live.

      Second, consider that even if the statute of limitations has expired and the item has dropped off your credit report, you still owe the debt and the debt collectors can still try to collect it.This means that you could receive calls from collection agencies indefinitely. Depending on the amount you owe, paying it may be worth the peace of mind you would receive in return.

      Abbey

  • JuSt be careful, because they then issue you s 1099 and cause you to pay interest on the amount that you didn’t pay. They consider it income!

  • @Beautiful Rose Can you explain in simple terms how that works? I’m just not undetstanding how it’s not on your credit report.

  • I have a debit collector calling me about a debit I alredy paid 2yrs ago, I faxed the information to them but then a new collection office calls for the same debit this has happen at least 5 times.

    Then another debit I paid is on my credit, paid to original creditor but its still beeing passed aroung to different collection agencies. The original company I owed sent me a letter saying its paid but when I fax it to the collection agency they pass my account to yet another collection agency and its on my credit.

    Please tell me how to get rid of these two problems.

    • Hi April,

      The burden is not on you to prove that you have paid a debt–it is on the creditor to prove that you owe them what they claim you do.

      Request that they verify this debt and provide you with sufficient information proving that you owe the amount the claim, and that they have the right to collect it.

      For the second debt, you can inform the credit bureaus that it has been paid in full by providing the letter showing paid in full status. They may take 30 days to investigate your claim, but they are required to remove it if there is not sufficient evidence that the debt still exists.

      Abbey

  • Extremely helpful. I have been threatened with arrest by a collection agency at my job. It scared me so badly that I borrowed money to pay it.

    • Hi RJ,

      If you are unsure that you actually owe a debt, you should absolutely contact the company trying to collect the debt and ask them to provide evidence that you do in fact owe the amount they are claiming and that they have a right to collect it. You can request this information in writing if you don’t want to deal with them on the phone.

      As far as paying off older debts, there are a lot of factors to consider. Depending on the statute of limitations in your state, you could be at risk for being sued and having a judgement against you if you fail to pay. If the debt has not gone to collections, it is a good idea to pay it in full or set up a payment plan–a collections account on your credit report can be very damaging to your credit score. You also may want the peace of mind of not having to deal with calls from collection agencies. The decision is up to you, but whatever you do, don’t ignore the problem entirely.

      Abbey

  • I had a couple years ago a lady that called my phone claiming she is from a law firm and that they were going to sue me for a debt that I tried to explain to her that I did not owe. She claimed she had a copy of my Drivers License and has me on video coming into the store. I knew it was not me because at that time I was unemployed and on workers comp, also that was a time when I did not leave my husbands side unless going to the courthouse for my Step son. I ask them how they knew if it was me considering they have no idea what I look like. I also told her that the company that she is collecting for I had never got a loan from. Also told her that I did not have a bank account at that time where I had checks. I stayed away from checks back then. She threatened me in ways that I could not have imagined. She threatened to have me arrested and was going to sue me for thousands of dollars for a couple of hundred dollars. After a while of her rants, I pretty much told her to go F*$% herself and that was when she told me that a judge will hear how I am talking to her. After about 15 minutes of fighting with this woman, I was crying and that was when my husband took the phone from me.

    • Hi Darlene,

      Even though these harassment practices are illegal, some unscrupulous companies still use them. You should know that you are not required to speak to debt collectors on the phone; in fact you can request that they communicate with you only in writing to avoid the problem altogether. Remember that they are trained to trip you up and distress to the point that you are willing to make a payment just to get off the phone with them.

      I’m sorry to hear that you went through this, and hopefully you can be spared from threats like these in the future.

      Abbey

  • Hello, for a couple of years and then we purchased our home. Our landlord owns several properties and owns a small real estate company and they carry our mortgage. Is there a way for them to report our payment history? We are recovering from a Chapter 7 Bankruptcy and this would impact our credit rating.

    Any advice you can offer would greatly appreciated. Thank you in advance for any help that you can offer.

    Melissa Ambrose

    • Hi Melissa,

      It is common for smaller credit unions and individual lenders to not report their loans to the credit bureaus. The process of reporting is governed by strict legal guidelines and meeting all of the standards required by the credit bureaus can be unrealistically expensive for smaller lenders.

      If you want your loan to be reported, you would need to transfer it to a different lending organization that does regularly report to the credit bureaus.

      If this isn’t possible for you, you may want to try building your credit history with accounts at other banks that do report to the bureaus. Opening a secured credit card account or being added as an authorized user on someone else’s account are two great ways to start building credit bankruptcy.

      You can learn more about how to build your credit from scratch here: https://thecreditsolutionprogram.com/staging/edu/building-credit-from-scratch/

      Abbey

  • I really enjoyed reading this article. As a debt collector, now owner of my own agency I must say that all people should be made aware of their legal rights and No One I mean no one has the right to treat them unfair. I have been in this field for over 25 years and have seen it all. The profession is well let’s just say HATED, but a good representative “debt collector” can help a person in trouble figure out how to resolve the issue within their ability and that is the ones that do well. I have always considered my job no matter what I was collecting as a chance to help the person get out of that situation and the included educating them on options available to them. Good job on this article.

    • Hi Cindy,

      Thanks so much for reaching out! What options do you offer some of the people whom you try to collect debts from? Have any of them helped so far?

      Abbey

      • Careful about advice you take from a debt collector on sites like this. Make sure you understand the law and the course of action you take.

        Rule 1. Never, ever talk to a debt collector on the phone. Send a letter (return receipt) to the collector stating the only acceptable form of communication is in writing. This is known as a Limited Cease n Desist letter

        Rule 2. Demand the debt collector validate the debt. The debt collector has 30 days to do so or must remove the debt from the credit reporting bureaus or remove it from your credit report.

        Rule 3. Know the time period for your state on the statue of limitations. In Colorado the Statue of Limitations is 4 years. If a debt collector should try to collect a debt beyond statue all you have to do is send a letter demanding they validate the debt. They have 30 days. If they send copies of paper work showing the debt is older than 4 years for Colorado, all you have to do is send a (return receipt) letter state the debt is out of statue and do not contact you again.

        Rule 4. If the debt collector violates the law, take them to small claims court 1500.00 or 2500.00 depending on the type of violation(s)

  • Hi! If you forgo a “settlement” (in collections) and pay the entire amount owed, what notation will be made on the account and how will it affect my credit?

    Thanks in advance for your response.

    • Hi Sheri,

      If you pay off this account in full, your report will reflect that. The problem with collections accounts is that they are damaging to your credit report just by their being there, whether they are paid or not. You see, once a collections account starts showing up on your credit report, the brunt of the damage as already been done. Potential lenders care more about the fact that the account became delinquent in the first place than they do about whether or not you eventually paid it off. This is why debt settlement is a good option for many people. The simple answer is, paying off your debt alone will not greatly affect your credit score.

      Keep in mind that this does not mean that you should simply not pay down your delinquent accounts. By not paying, you are at risk for being sued, getting a judgment against you, or even wage garnishment. Settling or paying this debt in full will prevent these things from happening.

      Abbey

    • Hi James,

      Great to hear that you found the information so helpful.

      What information are looking for in regards to secure loans?

      Abbey

    • Hi James
      I opened a checking account and a savings account with my credit union two years ago. My husband had died several years ago and havoc ensued with my credit. After I had saved quite a bit in the savings account, nothing major, just a few hundred dollars, I went to the credit union and asked if I could get a small secure loan to try to rebuild my credit.

      I was told that securing that loan was not necessary and was able to get that loan that day. I had them set it up where the payments were taken directly out of the savings account every month and as easy as pie it did raise my credit rating..

      However it also opens you up for every old creditor under a rock to crawl out and call you on a daily basis.. I now have collection agencies calling me from debts that were charged off over twenty years ago OY

  • Also true, if you send a “Cease n Desist” letter certified mail before your 30 days to dispute the validity of the debt, a debt collector cannot contact you, unless they are sending u proof that you owe the debt and telling you the original creditor. It has worked for me twice. I only do business with the original creditor and not with a collector. Owing a debt collector has never shown up on my credit report because I disputed the debt within 30 days. I have worked hard for my 723 score and sometimes that score is not high enough. Just saying!

    • Hi Beautiful Rose,
      Can you please help me out. I learned a lot from this article and I really like your comment. Please email me a copy of your Cease n Desist letter. How do you only do business with the original debtor if it has gone to collection? I would really appreciate all your help.

  • I just settled one in May and was told I would receive a letter of paid in full and here it is almost July and still have not received the letter. I do not have the information anymore as I set it up 6 months ago. What can I do?

    • Hi Linda,

      If you have not received a settlement letter or any agreement that lays out the terms of your debt settlement, you should refrain from sending in any payment until you do. You want to make sure that you have all of your ducks in a row with this company before you send in the final check.

      Follow up with the company, in writing if you can’t get anywhere on the phone. Keep records of all communication, and don’t assume anything that isn’t clearly spelled out in writing.

      Abbey

  • My husband bought something in my name byt I returned it. I was not told there was a contract and a fee for early termination when I returned the items purchased. They had collections call me and I agreed to pay in payments. They put a dorrigatory on my credit report two days later. Is that fair? I have paid off the amount owing 6 months ago. How long will the dorrogatory stay on my credit report?

    • Hi Julie,

      If the account was sent to collections and they have accurately reported the information, then the debt collector is not violating any law or regulation. Most negative items stay on your credit report for 7 years from the first date of delinquency, but there are a few tactics you can try to use to have it removed earlier.

      You can learn more about removing negative items from your credit report here: https://thecreditsolutionprogram.com/staging/education/collection-accounts/

      Abbey

  • My husband is 72 years old and retired. I am 56 so we live on my income and his social security approx.($568.00)a month. We have been married 6 years. He has debt collectors calling for a medical debt that is over 10 years old. He won’t
    talk to the debt collectors.
    They have started calling me to or
    three times a day. They wont tell me any information because of privacy.I asked them not to call me but they continue to call.
    How did they get my number? My cell is only in my name. Can they harass me for a debt that is not mine?

    • Hi Julie,

      Debt collection services have the time and resources to aggressively collect debts–after all, that’s their whole business. However, you are protected by the Fair Debt Collection Practices Act (FDCPA) against harassment, whether it is yours or your husbands.

      Some examples of harassment include:
      -repeated phone calls designed to annoy or harass you or whoever answers the phone
      -obscene or profane language
      -threats of violence

      They also can’t misrepresent themselves or tell you false information such as
      -the amount owed
      -claim they are an attorney or member of law enforcement
      -falsely threaten to have you arrested
      -threaten you with action they have no intention of doing

      If you request in writing or on the phone to have no further communication with them, they must respect your wishes and stop contacting you, with a few exceptions. If you feel that you are being illegally harassed by a debt collector, you can submit a complaint to the Consumer Financial Protection Bureau here: http://www.consumerfinance.gov/complaint/

      Abbey

  • I had a debt from ATT back from 1999. It became a charge -off on my Credit Report and was removed after 7 years. I got a letter from some credit collectors claiming that ATT still want their money.
    Is this legal ??? Mr.Glorius Jr.

    • Hi Thomas,

      Debt collection and debt reporting are two totally different things, and they are governed by totally different rules. The Fair Credit Reporting Act (FCRA) states that (most) negative items must be removed from your credit report within 7 years. This means that even if you haven’t paid the debt, it has to be removed from your record for good. That’s the good news. The bad news is that since you have still not paid this debt, the collection agency can still try to collect it for as long as they wish.

      Luckily there is a statute of limitations on how long your creditors and debt collectors can take you to court over this debt–check with your state’s attorney general’s office to make sure that the statute on your debt has expired. If it has, then you are protected from any legal action being taken against you.

      The only real way to get rid of this debt permanently is to pay it, either in full or through an agreed-upon settlement amount with the collection agency. Otherwise, it may continue to haunt you in the future.

      Abbey

      • Thomas
        Seven years after this debt went into collection you should not now be hounded for the money. When a debt collector calls, ask them to only contact you in writing. Then send them a letter, make sure you keep a copy of that letter, and ask for a copy of the original signed agreement of the contract. If they can not provide you with a copy, you can then send them a letter of cease and desist.

        Keep copies of everything you send to them and they send to you.. But after seven years you should not be obligated to pay anyone anything. I can almost guarantee you that this collection company cannot provide a copy of your original signed agreement..

  • My husband and I really maxed out ALL of our credit cards to take a big vacation. I noticed our credit scores immediately decreased by 50-75 points. Will this permanently affect our credit scores?

    • Hi JoLynn,

      The good thing about your credit history and score is that it can always change (for better or for worse). Make sure you make at least the minimum payments on time to avoid your score dropping even lower or having the accounts sent to collections. Paying down those high balances will definitely give your score a boost–plus the faster you pay it off, the less money you will pay on the interest.

      If you can avoid creating more debt while you recover from this latest spending bump, you should see your finances and credit score start to go back to normal over the next few months.

      Abbey

  • I just want to thank you, I have raised my credit score 66 point in 2 months. I have also raised my husbands credit score 131 points, yes mine is less because I had a lot of damage. My information was being used since I was 14. Everything came back to me when I went to apply for a credit card at 35. I didn’t bother just thinking I didn’t have credit, so one day I saw the credit solution video and chose to get my free credit score and what a shock! Well to make long story short I was able to remove $10,000 dollars of debt.. A foreclosure that belong to a house I never owned, and my score boosted. Now I have a credit card that I use wisely and only as a tool to improve my score. Thank you!

    • Hi Jade,

      Thanks for reaching out, and congrats on raising your score! Keep checking back in to let us know how it goes

      Abbey

  • How can moving a balance from one card to another lower my percentage of available credit used? No matter which card the balance is on, the percentage of credit used is still the same, is it not?

    • Hi Theresa,

      If you keep the original account open, your overall utilization ratio will drop. Think about it: if you have one credit card with a $10,000 limit and an $8,000 balance, then your utilization is 80%. If you open a new card with a $10,000 balance and transfer your balance to that card, you now have $20,000 in total credit and a total balance of $8,000, you your utilization is now only 40%.

      Since many cards do not charge interest for a period of time after the transfer, your payments will go directly toward paying down the principal during that time. If done correctly, balance transfers have the potential to help you improve your credit score and pay down your outstanding balance.

      Abbey

      • My inquiry wasn’t about opening a new card. I understand that concept. Your blog post reads: First, you can transfer the balance of one of your credit cards to a new or “existing” credit card

        • Hi Theresa,

          If you have one card that is near its limit and another card with a low balance, you spread out the amount over the two cards to lower your utilization ratio. Yes, you will be raising the utilization on the card that you are transferring the balance to, but as long as you can keep it under 30% then it shouldn’t negatively affect your credit. The card that transfer the balance from will have a lower utilization ratio, thus helping boost your score.

          Abbey

          • Larry.
            Am understanding that the transfer is not considered as a an expediture as far as utilization ratio is concerned.!!??

  • Great infomation…I need to get back to repairing my credit. I still need to get rid of my negitive mortgage, but I have no comtrol on that one.

    • Hi Cynthia,

      Yes, collection accounts are governed by statutes of limitations. Since they vary from state to state, you should check with your state’s attorney general’s office to see what the laws are for your specific state. This is information should be available right on their website, but you can also call them to verify.

      Abbey

    • I’ve written a few times about a predator situation from 2008! A well known bank CHOSE. The vehicle is now 12 year’s old. They did ALL of the above! Includes stealing money from my brother and forcing him awake at 4 a.m. and threatened to arrest him! Again it was way ling ago. I was never behind pants.
      I wish to get it registered but can’t get a duplicate title. They were forced to drop a charge off from my credit 9 years after! I can’t afford another attorney! They were punished by Consumer Credit Protection? Also FTC. Any suggestions? The Finance manager with the dealer is a buddy with the manager of Chase Auto. I always refused to pay at the local office for my protection I wired all payments Direct. What is left now? I’m on Retirement it’s not a lot.
      C. ROSE

      • Another concern is that I have 2 accounts showing collection for 8 years! I’ve disputed them so many times and lost count now! Finally the credit files were cleared. My score began to climb. Then come the 2 collections AGAIN! Says opened 2016. The notes were sold. They are not mine! Now waiting for time to run out backfired! Now my score dropped again! What now?

  • When you settle a debt with a collection agency for less than the full amount, you say “they must also agree to stop pursuing you for the remaining, unpaid amount of the debt.” Do they retain the right to SELL the balance you did not pay to another collection agency? Or does this end the debt?

    • Hi Mary,

      When you agree to settle a debt for less than the full amount, they should give you a written settlement agreement that lays out the terms. This is a contract between you and the debt collector that says that you will pay them X amount and the debt will be considered paid. As the article mentions, this will negatively affect your credit in the short term, but you will no longer have to worry about your debt being sold off to third party collection agencies.

      Abbey

  • I suggest that you always review the amount of your student loans. I was forced to leave a school I was attending early due to a family situation and thought everything was fine I them found out years later that the school had collected loans on my name four months after I had left. Because of the amount of tome that had past no one was held a accountable and I was forced to repay loans I had never received to get them ought my credit

  • If a collection agency has had your acct for 8 yrs but just recently put it on your credit…does this classify as the 7 year rule? Or does that start from the date it shows on your credit? This is a hospital bill from 2008 but just now posted on my credit. Thanks

    • Hi Tracy,

      The “7 year rule” applies to the date the account went into default, not the date it was opened. Unpaid accounts are usually turned over to collection agencies when they are unpaid for 180 days, after which they show up on your report as collection accounts. So, if you had an account that was opened in 2008 but only went into collections this year, you can plan on it remaining on your report as a collections account for another 7 years.

      There are some tactics you can try to have the item removed before the 7 year mark–you can learn more about them here: https://thecreditsolutionprogram.com/staging/collection-accounts/

      Abbey

  • If I have alot of debt w medical bills and I start paying them off, will it show that im paying it? Will it make my score higher if im making payments or that my balance is lower?

    • Hi Griselda,

      If the organization you owe the debt to reports to the credit bureaus, then your credit report will show that you are making payments toward it. Medical debt almost never affects your credit score if you are making your payments on time–the real problems start if you leave the bills unpaid and they are sent to collections. Collection accounts show up as negative items on your credit report, and they will definitely hurt your score.

      You can find out more details about how unpaid medical bills affect your credit here: https://thecreditsolutionprogram.com/staging/will-unpaid-medical-bills-hurt-my-credit

      Abbey

  • Student Loans also from the Dept of Education are put on your credit score as well even if they are paid off. I have a student loan that has been paid off for over 2 years and they also took money, a large sum of money 2611.00 to be exact out of my federal taxes and the loan was paid off. When I called them they looked into it and stated to me “oh yes it is paid off and someone neglected to close out the account”. Long story short, I’m sure it’s still on my credit report and I am still waiting for my refund from the U.S. Dept of Education and it has been over 3 months. I have called them several times and even got our Congressman or someone from their office involved and I still don’t have it. A single Mother of two that needs that money so badly that is mine and can’t get it. Tell me how they are not held accountable for their neglect and can get away with it for this long and collect interest on my money and I’m still waiting for the check. Very upset and no where to turn!
    Kimberly Meyer

    • Hi Kimberly,

      If you haven’t viewed your credit report recently, now may be a good time. You can request a free copy at http://www.annualcreditreport.com. You should check for any other inaccuracies–this is a prime example of how human error can lead to serious financial headaches.

      I sincerely hope that you are able to get those funds returned to you ASAP, and move on from this whole ordeal. What is the status right now? Have they agreed to send you the refund, or are you still in the dispute process?

      Thanks,
      Abbey

    • Kimberly
      Send Notice of Intent of Lawsuit (I send a copy of the completed copy of the court documents) and mail with return receipt requested. Give them 10 days to correct the error. If they fail to correct the error file suit in small claim court. Check to make sure small claims court is with in the dollar amount of your damages. You may be able to collect damages of $1500 to $2500 per violation of FDCPA or FRCA. They have full knowledge of the their violation, they are banking that you have no knowledge of the law and will drag this out as long as you allow them too.

  • In order to keep up to date with my credit score, I enrolled in two separate credit reporting companies. However, I am experiencing problems logging in to their websites and am paying a total of $50 a month for this service! Is there a free website that I can use that will allow me access to my credit score from all three credit reporting agencies?

    • Hi Gace,

      If you are paying for a service, you should absolutely be able to take use it. If you can’t login, you should contact their Support team to fix the issues (they should have a contact phone number or email address listed on their site).

      There are many credit monitoring services out there, so there is no reason to stick with one that you are unhappy with. You can check out http://www.gofreecredit.com and see if they offer what you are looking for.

      Abbey

  • Would I just send the letter contesting the re-aged debt to Transunion? Or, do I have to send one to each of the three major reporting agencies? Also, is it best to go straight to the credit reporting agency(s) or the collector who has re-aged the debt. I really don’t trust the collector as they have already broken the law by re-aging the debt.

    Thank you,
    Bill

  • I had a settlement with a collection agency from $1400 to about $800 and we had the money taken directly out of my account evey month. There were a couple of times where I didn’t have any money so the transactions weren’t approved and other times they were approved and I got a couple of overdraft fees, and the date for the whole settlement came up and it turns that they went back from the settlement and it’s back to the original amount they just sent me a letter that I still owe the whole amount, but what happened with those $500-$600 I did pay since it got taken out of my bank account ? What do I do?

    • Hi Abram,

      Hopefully you still have a copy of the settlement letter that the collection agency sent you when you made this agreement. Use that along with copies of your bank statement showing the payments that you made to them as proof that you do not owe the full amount.

      You can send copies of these documents in writing to the collection agency along with a letter requesting that they update the balance that you owe to the correct amount. If you have paid what you agreed to, then they have no right to try to collect more than your settlement letter states you owe.

      Abbey

  • I have 1-2 calls every other day for a friend who used me as a reference when he purchased his vehicle .Can I sue these people for harassment they have been calling for some MONTHS now ,even though I have told them that I haven’t seen him, and when they find him tell him to call me that he owes me too !

    • Hi Donald,

      How annoying, to be harassed about a debt that isn’t even yours!

      You can tell them on the phone or in writing that you want no further communication with them. That should at least stop the harassing phone calls.

      Abbey

  • I have a lien on my house and I was wondering how I can get it off? it has been there since 2008 and it is almost 7 yrs. it has been there…Thanks

  • Can the franchise tax board Calif. reage a tax debt from 2000,I last talked to them in 2005,so thats 8 1/2 yrs ago, thanks Mike

    • Hi Mike,

      The “purge from” date should not be past 7 years from the first date of default (so roughly 7 1/2 years from the first missed payment).

      Abbey

  • I have an account that should be purged but the collectors keep selling it off. Every new collector puts it back on my report. This account is now over 10 years old. Do I really have to keep disputing every time it is sold? It is such a hassle to keep cleaning this up between the three agencies, especially when it is sold at least twice a year.

    • Hi Erin,

      Here is the response from the author and our personal credit expert, John Ulzheimer:

      “If that’s actually happening then not only is it a violation of
      the Fair Credit Reporting Act and the Fair Debt Collection Practices Act
      but it also flies in the face of the credit reporting guidelines the
      credit bureaus impose on the companies that send them information.
      Collectors can sell their debts to other collectors but that cannot
      cause ANY of the collections (past or present) to remain on the credit
      file longer than 7 years from the date of default of the original
      account. That’s re-aging.”

      Hope that helps!

      Abbey

  • What if a collection agency reported an account to Experian in 2009, but just in the last couple of months reported it to TransUnion?

    • Hi Sheila,

      Did they change the “purge from” date? If so, then they have illegally re-aged the account. Otherwise, they have just started reporting to TansUnion, which is within their legal rights. Because different creditors sometimes report to different credit bureaus, this is why your score will vary between the three.

      Abbey

  • What if a debt is no longer on your report cause of the statue of limitations has passed. My case it’s been 12 years. Can the collection agency still pursue you? I did pay on the debt 2 years ago but have stopped paying once I realized it was no longer on my credit. Now it has switched to several different agency’s in the last two years, so I am still being pursued. Please advise

    • Hi David,

      The statute of limitations only applies to possible legal action. Once the statute of limitations expires, the lender can no longer take you to court, however you do still owe the debt and they still have a right to try to collect it.

      Abbey

  • I had a car repossessed a few years ago, the company sent me notice of payments due that was not covered once the vehicle was sold. I did not have a problem paying it, however they required payment in full and I could not do that at that time, so it was turned over to a collection agency, and I started making payments to them for $100 a month for about a year, and I would call periodically to get a balance on the account. The balance was going down steadily, the another person started calling me about the account supposedly for the same agency but the balance had somehow gone up rather than down. Actually it was back up to the original amount owed, and when I asked about it he told me that interest has been added to the amount. I was never told at the beginning from the other man that I dealt with previously about any added interest payments. The balance was getting higher rather than receding. I don’t know what to make of this. Can you give me some insight into this.

    • Hi Cynthia,

      If you are uncertain of exactly how much you owe, and to whom you owe it, you can request that the collector sends you this proof in writing. If they are collecting this debt legitimately, they should be able to produce this. Request this validation in writing and send it Certified Mail, Return Receipt so that you have a record that they received your request.

      Abbey

  • Earlier this year I got a notice that a collection agency “wrote off” a debt. One that was a HUGE amt, one I had no idea about. The institution that the debt originated from is one I have not dealth with in 14years. I wrote a letter, per instructions on back of notice, requesting information on what the debt was and when and since I was married, who. So far I have not heard back. What else can I do.

    • Hi Michelle,

      The creditor is required to send the information you requested within 30 days or remove the item from your report entirely. If you have not reached the 30 day mark, be patient. If you have passed the 30 day mark and not heard anything and the item is still showing up on your credit report, you can send them a copy of the “Cass FTC Opinion Letter” along with a strongly-written letter reminding them they are legally required to send you proof of the legitimacy of this debt, and if they cannot provide it then they must remove it immediately.

      You can find a sample letter and a video explaining this process in more detail here: https://thecreditsolutionprogram.com/staging/educational-videos/collection-accounts-2/

      Abbey

    • Hi Emma,

      Our author and personal credit expert, John Ulzheimer, had to this to say:

      “It depends on whether or not the student loan is government guaranteed.
      Student loans that are not guaranteed by the government must be removed
      after 7 years, just like any other consumer debt like a credit card.
      Government guaranteed student loans don’t follow the same rules,
      however. They can remain on your credit reports as long as they’re not
      paid. So, the amount of time the can be reported by the credit bureaus
      varies by loan type. Now, the credit bureaus may choose to remove them
      all after 7 years, but that would be a choice and not a requirement for
      government guaranteed loans that are not yet paid off. In either case,
      however, the date from which the item must be removed (the so-called
      “purge from” date) cannot be re-aged to make the item stay on a credit
      file longer than allowed by Federal law.

      In most cases re-aging isn’t a problem except for in the world of 3rd
      party debt collectors. While re-aging is rare, it does happen. When it
      does happen it’s almost always a collection agency that does it.”

      Hope that helps!

      Abbey

  • The banks are destroying peoples lives-this credit reporting system needs to be revamped in America-
    Mike-get on this-lol!
    Thanks!

  • Just had a call from an obviously third party collection agent on a debt that was put in my name by my ex thirteen years ago. He immediately started conversation with”I have an affidavit in such & such county” I told him debt was uncollectable and not to call me again & I hung up.

  • Does a collection agency have to tell you that a bad mark is going to be put on your credit file or can they just do it without informing you about anything, even that you have a dept?
    The original medical biller didn’t even send me any bills?
    And they are several years old according to the date of service.
    Is it just bad billing practice, can they do that…

  • Hello: I sent out validation letters for medical bills and one came back with proof and one asked for my authorization to get the info from my creditor. There are three others that has not responded at all. What would be the next step if they do not respond or remove the file from the credit report?

    Thanks!

    • Hi Monica,

      If the lender has provided you with sufficient validation of the debt and refuses to remove the item, there isn’t much else that you can do. You should consider ways of settling or paying the debt if you can, otherwise it will likely stay on your report until it hits the 7-year mark.

      If they ignore you completely and don’t remove the negative items, you can send them a copy of what is called the Cass FTC Opinion Letter (you can find a PDF version here: https://thecreditsolutionprogram.com/staging/educational-videos/collection-accounts-2/). Along with this, you should also include a letter stating that because they have failed to validate this debt and have not removed it from your reports, they are in violation of the Fair Debt Collection Practices Act and they are absolutely required to remove it from your report immediately.

      Hopefully this helps–check back in and let us know how it goes!

      Abbey

  • Is it also illegal to transfer the same charge from collection agent to collection agent, causing that same charge to remain on your credit report for far longer?

    • Hi Monica,

      It isn’t illegal for creditors to sell or outsource your account to different collection agencies–in fact, it’s a very common practice. Collection agencies are able to buy your debt for pennies on the dollar, so they can potentially make a large profit by collecting even part of your unpaid balance.

      It is illegal for them to change the “purge from” date, or the date that the item MUST fall off your report. If you think that a collection agency has changed this date, you have the right to dispute this.

      Abbey

  • How about some “nuts and bolts” info on how to challenge info on credit reports? I settled an account 18 years ago, and it not only shows as delinquent, but it should have fallen off.

    • Hi Patrick,

      Here is a helpful video that explains the process of disputing errors on your credit report: https://thecreditsolutionprogram.com/staging/education/disputing-errors/.

      You can also check out The Credit Solution Program, which details how to remove all kinds of errors and negative items from your credit report to help you raise your credit score and qualify for the best possible rates on loans: https://thecreditsolutionprogram.com/staging/

      Abbey

      • A couple months ago I checked my Transunion report and saw something on there completely unfamiliar to me. I followed the directions on the website and filed a dispute. Within a week I had a reply by email from Transunion that it had been removed from my report. After reading this article I have decided to keep all my reports (I print them out so I can go over them slowly and completely). If something shows up re-aged this will help me contest it.

        • Hi Nora,

          It’s great when the dispute process works so well like that — congrats on successfully cleaning up an item on your report. It just goes to show that it never hurts to regularly check your credit report for errors that may be hurting your score.

          Abbey

  • I have a judgment that shows paid. I don’t recall having paid it. What should I do. I of course would like it removed

    • Hi Joe,

      Since you don’t remember paying this debt, make sure that the information on your credit report is accurate. You can contact the creditor in writing and ask them to produce evidence of this debt, and show that it is actually your account and is in fact paid. If they send you evidence that it is paid in full, you can file a motion to vacate with your local court. Since procedures vary, you may want to call the office of the clerk of the court first to find out what the process is, what fees are associated with it, and what documents you need to produce.

      Good luck!

      Abbey

  • By the way, in reference to the above comment, our credit scores dropped 100 points entirely because of the medical impacts. All our other accounts stayed current.

  • This is why the Affordable Care Act is so important for U.S. citizens. Within months after joining the National Association of Self Employed and buying its insurance plan from Mega Life & Health (a division of HealthMarkets), my wife and I experienced two medical catastrophes that led to multiple surgeries. Mega had promised 80-100 percent coverage and actually paid only about 20 percent, leaving us with $180,000 in unpaid medical bills from 47 different accounts. And we were both disabled from outside work activities for nearly a year. When we couldn’t write checks for $180,000, two hospitals and one clinic filed sent the accounts to collections and also filed liens on our home. Four lawyers advised us to file bankruptcy — but we refused. We spent six years in legal battles, sold a car and family belongings, and worked 7 days a week to satisfy the debts. None of that would have happened if Obamacare had existed.

    • Hi Dave,

      Sorry to hear that you have struggled with health issues and the resulting medical debt, but it’s good to hear that you are back on track. Did you know that there was a possibility of your previous healthcare only covering a small percentage of your medical bills, or were you blind sighted?

      Abbey

  • A few months ago I received a call out of the blue from a supposed “process server” stating she was going to come to my job and house to serve papers as I am being sued. She left a number to call. I called the number who posed as a lawyers office and stated they were filing charges against me for a loan that was supposedly unpaid. I asked for the name of the loan company which they gave me. I called the loan company that I had a loan with many years ago who stated they had no balance for me and they had no idea what this was about. I called the company back and advised what I was told. The caller began to scream and yell at me and refused to talk with me any further. She kept saying she would see me in court over and over. I kept trying to get her to call the loan company but she would not. She hung up on me multiple times. I called back and she said I WAS HARRASSING HER!!! I told them I needed their address and fax number as I had all the receipts to prove I had paid off my loan years ago. She would not give it to me and stated “It is too late we will see you in court”. I was a wreck. I waited a few hours and called back getting the same person who said she was calling the company and she would get back to me. I have never heard another word from her. It has been months. About 2 months went by and I received the exact same type of call from a different place with all the threats. I reached out to the loan originator who stated this was a scam and to ignore these people. When they called back I told them what she said. They hung up on me and told me to stop harassing them! They kept me upset for weeks. There has to be a law against such horrible, abusive treatment.

    • Hi Amy,

      It’s bad enough to get harassing phone calls, but it’s even worse to get calls about a debt you don’t even owe! I’m glad you weren’t scammed into paying money to someone who didn’t have a right to it.

      Do you have any advice for others who think they may be being scammed?

      Abbey

  • if every one would record these illegal attempts to collect old debts and file a suite in federal court (each time they break the law ) is a 2500 dollar fine that you get from them. This would stop all of these collection agencies from buying these accounts for pennies on the dollar and adding collection charges on top of that.
    The problem would be solved and the companies that a person owed would have collect the debt or let it die, which is what our laws were designed to do.

    • Hi John,

      Thanks for the advice. Have you ever filed a suit against a debt collection agency? What was the outcome?

      Abbey

  • Hi Mike thank you for this info, it has helped me a lot. I am a widow whose husband died in 2004. I had a credit card but could not pay at the time because I wasn’t working and my husband did not prepare us for this tragedy. I contacted the company about this hardship but they turned a deaf ear and charged off the debt. It fell off my credit report a few years ago but now I’m being harassed by a company they sold the debt to. I owed about $4300 at the time of my husband’s death but now I’ve gotten a $25000 dollar debt because of interest added to a charged off account what can I do to deal with this?

    • Hi Eva,

      My condolences for your loss and all of the financial strife that came along with it. Since the debt has become quite large, you will want to check to see if the statute of limitations has expired on it. Once the statute of limitations has expired, the lender can no longer take you to court and sue you for the unpaid amount. You still owe the debt, but you can’t be taken to court over it. The amount of your debt is enough that it may be worthwhile for them to try to sue you so this is an important fact to be aware of.

      To get rid of the debt, you can try to settle it with the collector. You can sometimes settle for much less than you actually owe, because the older the debt is, debt collectors tend to me wore willing to get whatever they can in repayment. You can also consider filing for bankruptcy, which would likely eliminate the debt as well. Both of these actions have serious effects on your credit report, so you should do your research to decide if either option is a good one for you.

      In the meantime, if you just want to stop receiving harassing calls you can tell the debt collectors that you want no further communication with them. Under the Fair Debt Collections Practices Act, they must cease communications other than to 1) tell you there will be no further communication, or 2) inform you that they are taking further action on the debt, like filing a lawsuit.

      Abbey

  • I cosigned for a second mortgage and a personal loan for my husband, my husband passed away last year and I ask them to put these debts in my name since he is deceased they said it wouldn’t be possible.when my husband was living I had his social security plus mine and the bills got paid now they call me 5 & 6 times a day starting in early am I think that if they can’t put these things in my name why should I have to pay them?

    • Hi Delores,

      Since you cosigned on the debt, you are responsible to pay it even though your husband is deceased. In a sense, they are in your name because you jointly agreed to pay the money back.

      Abbey

  • This just happened to me! I have an installment loan with a payday loan company. Due to my bank account being compromised I missed a payment. A couple of days after the payment was due this guy with a foreign accent called me at my job and said the police were coming to get me because I committed fraud and check bouncing. I was shocked, nervous, and didn’t know what to do so I made payments to them on some card they told me to buy and put it on. Well they were still calling me so I called the company I took the loan out with and they told me it was fraud and that they never received any payment on the one I missed. Right then, I paid it. Which meant I made two payments in one day. So I called the guy who was supposedly a lawyer and told hi I didn’t owe anything anymore because I paid it to the company. He was furious and proceeded to tell me how the police were coming to get me and all kind of stuff. All I know is I don’t owe anyone anything and I lost over $300 that I sent to whoever thinking it was for my account. I only have one more payment left on the loan and plan to never get one again from this company.

  • O wow. This is exactly what is happening to me. They are calling my work dating they are law enforcement. They are calling my family members. They say I owe 3000.00. They say they have a law suit against me. The one time I spike to a rep on the phone he was rude and obnoxious and just kept talking without end. He wanted me to pay over the phone and of course I didn’t but now after that I have something on my credit from them saying located consumer. So FYI NEVER answer these calls and verify Any info.

  • I have a bill collector that calls me even after we have agreed on a date to come in. Two to three different people call me 3 to to 5 times each. my voicemail is full of messages. Once we agree on a date, I just ignore them, so then they call my job and call the main number at my job and sometimes leave messages. I am having some unexpected expenses and my husband is a heart patient who is trying to get qualified for the heart transplant list, so I have am spending a lot of money traveling right now. I love for them to just ease up on the phone calls. I didn’t know it was not legal to call me so many times. I eventually pay them but they are very annoying.

    • Hi Annie,

      The one way to guarantee that a debt collector will not leave you alone is to ignore them. They have numerous resources to call you day and night indefinitely, whereas you only have yourself.

      If you plan on paying the debt, you may want to see if you can work out a payment schedule, or settle with them for what you can afford. Make sure you are fully aware of what this involves before you agree to anything. You can also contact them in writing and let them know that you want no further communication, but this will only stop the phone calls–you will still owe the debt and they could potentially take you to court to compel you to pay it.

      Abbey

  • I filed bankruptcy and included the payday loan in it. I still get threatening phone calls from the pay day loan company. This was over 8 years ago when I filed the Chapter 7. I just received an email from the lender asking me to verify my address so they could serve me papers.

    • If the debt was included in your bankruptcy, they cannot still try to collect it. You should inform them in writing that this debt was included, and include any evidence that you have of this. If you are represented by an attorney, advise them to contact your attorney instead of you.

  • How do u stop a collector from these illegal acts. I have been told by three different collection agencies that they were going to federally charge me and I know this is an old debt I have told them to go ahead a serve me yet they never have. I know this debt has been removed from my credit report but how do I get them to stop.

    • Hi Bertha,

      If you have decided that you don’t want to resolve the debt but you just want them to stop calling you, you can contact them in writing and tell them to stop contacting you. Print two copies of your letter and send one to the debt collector, Certified Mail, Return Receipt. This will give you a record that they have received it. Keep the other copy for your records. This does not get rid of the debt, but it does require them to stop contacting you, with two exceptions: 1) they can contact you to let you know that there will be no further communication, and 2) they can contact you to inform you that they are taking action on your account, like filing a lawsuit against you.

      Good luck!

  • These debt collector’s are a joke,when times were bad I settled every debt from 10-35 cents on the dollar.The only one I could not settle was American express,and I put them and their attorneys thru hell.Long story short I offered their attorney 65 cents on the dollar,told them if they didn’t take it I would claim bankruptcy,and that’s exactly what I did when they sued me.

    • If you could do it over, would you still choose to declare bankruptcy, or would you try to further negotiate with the lenders?

  • I have a student loan with Sallie Mae, I lost my home to foreclosure and while in the midst lost my job. I explained this to the reps time after time and they continued to call my cell phone multiple times everyday…I had to stop answering the phone. As well as one rep asked when I could make a payment, and that when I signed the contract it was a promise to pay no matter what happened in my life (cold hearted) told them I could start as soon as I was working again. Now 5 months have gone by I still haven’t been able to find a job.

    • Hi Tamara,

      Unfortunately these are for-profit companies whose only goal is to collect the money that you owe. They have this one goal in mind, and most of them don’t care why you owe the money, just that you owe it.

      If you are being harassed by collection calls, you can tell them on the phone or in writing that you want no further communication with them. That will at least give you some breathing room to get your affairs in order and start figuring out how to attack this debt and resolve it once and for all.

      Abbey

  • I dealt with a credit collector calling me at work, just started a new job after a serious divorce and custody battle. This collector didn’t seem to care when I said,please don’t contact me at work. I even gave her my personal phone number and offered to make small payment arrangements, it was for a computer I bought with Bestbuy card (HSBC) five years ago, I didn’t even have it anymore. I owed $200 on it and this third party debt collector from Montana was calling me everyday at work saying unless I made 3 $100 a month they’d sue me and make me pay for the court costs. I’ve heard a rumor that lobbyists are trying to push law makers to allow debt collectors to deduct money from the paychecks of those who may owe debt. So basically these debt collectors will have less steps and moat likely less proof to show in order to do this. The question I think we all should be asking is if we can’t trust these debt collectors to be honest themselves, why would this work ? I’ve even had things I don’t owe put on my credit. I have disputed false credit discrepancies and it seems that the huge companies always win over us “little guys”.

    • Hi Nicole,

      If a lender sues you in court for the unpaid balance and wins, they can legally garnish your wages. This process is usually not particularly quick or easy, but it is definitely possible. It is unfortunate that some debt collectors use dishonest tactics to try to intimidate people into paying, however the easiest way to get the calls to stop is take action on the amount you owe.

      If you can cut your budget somewhere else and use that money to finally get rid of this debt, it may be worth it to stop receiving harassing calls at work.

      You can also contact the lender or collection agency in writing to notify them that you don’t want to receive any further communication from them. This will not get rid of the debt, but it can at least help you get through the day without having to fear frequent phone calls from debt collectors.

      Abbey

  • I still have a debt that I have been carrying since the nationwide financial breakdown several years ago. I had a home there that I was unable to keep up the payments on due to a job loss. It finally went to a short sale at a total loss and the loan, which was made for repairs/upgrades to help in the sale of the home, was not settled. I currently live in a home that was built as a vacation home and mostly paid for before the recession, but my only source of income is social security. At my age of 77, I am sure I will never be able to pay the loan off even at a reduced amount and have been paying the sum of $25.00 monthly when I could. The account has passed from one collection agency to another and the current one is not giving up – I get monthly calls for my $25.00 payment, but they have not to date threatened legal action. Since I have no assets other than my home, can they do anything against me if I am unable to pay the loan off?

    • Hi Ed,

      If the statute of limitations on the debt has not yet expired, the lender may can sue you for the unpaid debt and file a lien against your home. It is unlikely that they would be able to garnish your social security income, especially if you keep it in a separate account. These are all serious consequences, and you should try to avoid them if at all possible. You may want to consider selling your home to pay off the debt and end the battle with the debt collectors once and for all. You may even be able to settle it for less than the full amount, and finally be able to be done with it.

      If you are able to downsize to a smaller home or apartment, it may be worth it for you peace of mind. The debt collection practice can start off gentle, but it is unlikely that they will give up anytime soon.

      Abbey

  • I’ve had a credit card company use an agency to call me for a credit card that I paid off in 1999.
    I explained that I paid off that balance and since then have two accounts with that credit card company. It turned into an argument when the agent was accusatory and I promptly stated that they needed to check their records with the credit card company.

  • Hi, me and my husband have been renting for 33 years. First few years we had low income and bad credit, last few years husband had health problems disabled now, but stable.credit score better. We still have dreams owning but I feel we are too old now I’m almost 52 , my husband 58. I don’t want to be paying 2000 dollars mortgage at retirement age. Getting a 15 yr morgage would be ideal but it would cost more each month. New Jersey is high you can’t buy a decent home in a decent neighborhood under 200, 000. I don’t have 20% to put down. Please advise Thankyou and

    • Hi Jannifer,

      You are certainly not too old to purchase a home, but you will need to put 20% unless you want to pay a higher rate. To protect themselves in the event of default, mortgage lenders often charge an additional amount for Private Mortgage Insurance (PMI). You have a smaller down payment, but pay more each month.

      If you are having trouble finding an affordable home, you may want to consider a condo or town home–they tend to be less expensive and many include amenities like a community pool or gym. Come up with a budgeted plan to save the amount of your down payment over the next few years, and clean up your credit in the meantime.

      You may also want to look into government programs like an FHA loan, which is intended to help lower-income individuals and families buy homes that they otherwise wouldn’t be able to afford.

      With some hard work, planning, and research, you and your husband can finally own a home.

      Abbey

      • Me and my fiancé are looking in the area of condo and townhomes only because in the next five years I want to build her the home of dreams. So definitely starting there is a great idea and plan of action.

  • Can you sue these collectors for these phone calls? Some of them are violating the law. It seems like you should be able to.

    • If a debt collector is violating the Fair Debt Collection Practices Act (FDCPA), you do have the right to sue. If you win, the collector generally has to pay your attorney’s fees along with damages.

      The FDCPA specifies harassment as:
      -Repetitious or harassing phone calls that are intended to annoy or abuse you or any person who answers the phone
      -Use of obscene or profane language
      -Threats of violence or harm
      -Publishing lists of people who refuse to pay their debts
      -Calling you without telling you who they are
      -Calling you early in the morning (before 8 am) or late at night (after 9 pm)

  • Back in 2005-2006 I was a victim of identity theft, and here now years later I am being contacted by a collection agency (Midland Credit Management to be exact) trying to collect on a student loan that was incurred apparently in 2005 according to them. I’m 52 years old now, and I have not even attended any type of school since the early 90’s, and that was while in the military… I haven’t attended a “civilian” school since 1987! This Midland Credit Management company is relentless! I have tried to discuss with them that I was a victim of identity theft during the time this debt was incurred, and even got into a heated conversation with a VERY rude person from MCM about it – yet they continue to call, repeatedly! I have even had to block them from calling me on my cell phone… is there anything I can do about these people? I have noticed that Midland Credit Management has been sued MANY times and even fined by the federal government for illegal collection practices.

    • Hi Scott,

      If you have not already done so, you should check your credit report to make sure that this debt is not appearing on there. Getting calls from debt collectors is one thing, but having this mark negatively affect your credit is even more serious.

      You can notify the agency in writing that you do not want to receive any further communication from them. Send it Certified Mail, Return Receipt so that you have a record that they received it, and keep a copy for yourself as well. If you have any evidence that this debt does not belong to you, you should send that along with the letter.

      After they receive this, the debt collector cannot contact you again except 1) to tell you that there will be no further contact, 2) let you know that it may take further action against you as permitted by law, such as sue you for the unpaid debt.

      If they continue to contact you after receiving the letter, then they are in violation of the law. You can file a complaint against them with the Consumer Financial Protection Bureau here: http://www.consumerfinance.gov/complaint/

      Abbey

  • Ive had people call me saying they are an attorney and they are going to call my employer. Accusing me of bank fraud in 200I. I asked them to send documentation, ive not received it. I relayed to them that they were a fraud and their response was I will see you in court and I was looking forward to it. Have not received any documentation but still get the calls I dont respond to them anymore.

    • Hi Flora,

      Beware–if the statute of limitations on the date has not expired, the lender can indeed sue you in court for the amount you owe and, if they win, you can be required to hand over a portion of your wages to them every payday. This will also result in a judgement that will show up on your credit report and completely trash your score.

      Now, the collection agency may be bluffing, but I doubt that’s a risk that anyone really wants to take. Do what you can to settle this debt out of court, or you may end up paying a much higher price later.

      Abbey

  • I have been called by a debt collector who bought my social security number from the company. They read it to me over the phone. They have called me numerous times during the day and well into the evening. Sometimes after 8:00 p.m.

  • I recently had a collection agency call me concerning some medical bills. I asked for proof of what they were trying to collect. She said they did not have this info and again asked for my payment information. I told her I refused to pay for something that I had no proof that I owed. She told me I would need to contact the medical provider and ask them which accounts had been placed with a collection agency. I told her that was not my job and if she wanted me to pay her I needed proof of what I was paying. I have not heard back from her. I refuse to pay a bill that I can not verify that I owe.

    • Hi Cynthia,

      Does this item show up on your credit report? It’s great that you were able to get the debt collector to stop contacting you, but you should also make sure the unpaid item isn’t lurking on your report and hurting your score.

      If they cannot validate this debt in writing within 30 days of your request, they are required to remove it from your report entirely.

      Abbey

  • I am a retired nurse that suffered a physical disability due to an on the job work injury. At the time the state I resided in required Employers to carry Workers Comp Ins. There are also Laws that are still current that prohibit the collection of an unpaid medical bills related to a work injury. These laws prohibit medical providers & collection agencies from collecting balances on these accounts. It also prohibits these unpaid accts from being reported to The Credit Bureau. These laws have NOT STOPPED these accts from being placed on my credit report. Due to the fraudulent reporting of these accts I was unable to obtain a small personal loan from my Credit Union. Now I must fight to have these items removed from my Credit Report. THIS IS JUST POSITIVELY UNJUST !!!!?

    • Hi Lisa,

      Were the costs of this injury not covered by the Workers’Compensation benefits? Typically Workers’ Compensation statutes are designed so that an employee will not be held responsible for medical costs resulting from an on-the-job injury. Have you investigated why these medical bills were not paid by your employer?

      Abbey

  • I think the article is great, however you should not just warm about how collectors illegally harass consumers and break certain federal laws you should also provide information/ links to consumer rights! Where, which department of authority or agency we can go to file a complaint or obtain rights. Resources really help when you are posting articles! Your article is part informative and part useless without a solution. If this is how you publish all your articles,I would not waste time reading any others. Point is, readers, consumers, people in general like being informed but they also need/want to know what they can do. How will it ever stop, if these agencies harassing and breaking laws are never reported? I understand this program you have is to help people with their credit, but remember credibility goes so much further when consumers/ readers/ potential clients are provided what actions they can take legally to file complaints through federal and states while they pursue services to get out of debt, such as utilizing a program as yours.

    • Hi Shelly,

      Thanks for bringing this to our attention–we want to give our readers as much help as possible.

      If you feel that you are being illegally harassed by a debt collector, you can file a complaint with the Consumer Financial Protection Bureau here: http://www.consumerfinance.gov/complaint/.

      Once the complaint is filed, the CFPB sends it to the collection agency and they have 15 days to respond. According to the CFPB website, most claims are settled within 60 days.

      I hope this helps!

      Abbey

  • 11 years ago I filed Bankruptcy, I was having a very hard time financially being laid off, I took a Payday loan out for two hundred dollor’s and sadly I had to file it in Court. The Third Party’s still call me with all above mentioned in Letter. They called my Landlird a few months back and I was amazed at how they got her number as I get no mail there. I was amazed !

    • Hi Anita,

      The problem with payday loans is that the fees and interest rates that they come with can quickly add up to such a crazy amount that there is no way you could possibly keep current with the payments.

      How much did you end up owing for the original $200 loan?

      Abbey

  • For over a year now, I have received phone calls from a man claiming to be representing the Attoney Generals office and threatens to press charges and notify my employer of what ive done. I saved the voicemails and emails from these. The debt they claim ive got isnt anything ive done. The calls started shortly after applying for online payday loans. They obtained all my identifying info sounding as though they were legitimate, but I was never approved for any payday loan so I know for a fact that its a scam. The man gets angry and rude. I just laugh and hang up now. Im getting ready to file a claim with IC3 (Federal Bureau of Investigation and National White Collar Crime Center).

  • A collection agency has been calling my phone 5-1- ten times daily from morning to late hours in the evening. I don’t answer the call most of the time. What Can I do a out it. I am paying my debt thrrough a benefit garnishment from my Social Security benefits already every month.

    • Hi Alfredo,

      You can tell the debt collectors that you want no further communication with them. If this doesn’t work by phone, tell them in writing. They are required by law to stop contacting you, besides 1) telling you that there will be no further communication, and 2) letting you know that they will be taking further action on collecting the debt, like filing a lawsuit.

      Abbey

  • I was threatened with a warrant for my arrest.
    They call my elderly parents and other family members with threats

  • I am currently getting harassment calls they willl call on my personal line my cell phone and my mother home phone all at the same time it shows up as out of area or of a town that no that I know lives at and it is always a prerecorded message . I do not answer out of area or private or toll free calls and if it is a prerecorded message I do not return calls

  • I Received notification that a law firm was trying to subpoena me.and serve me at work. When I called them, they stated that I owed Discover card $1360 including interest and they were about to file to garnish my wages for $4300 including legal fees unless I agreed to pay the balance. Is this legal? Can they garnish my wages like this?

    • Hi Rochelle,

      Yes, credit card companies can garnish your wages if they receive a judgement against you in court. When you receive a credit card, you physically or electronically sign an agreement in which you promise to make monthly payments for whatever you owe. If you breach this contract by failing to make payments, the credit card company has a right to sure you in court to get their money, and taking your wages is one of the ways that they can do this.

      You can avoid wage garnishment by settling your debts out of court or declaring bankruptcy–although both of these have some pretty big drawbacks, they may be good options for your current situation. Do your research to see what the best choice is for you, but whatever you do make sure you take some action and don’t deny the inevitable.

      Abbey

  • I was harassed over a period of two years regarding the only payday loan I have ever had. I repaid the loan completely at 50% interest in 3 months, PLUS a loan origination fee I was never told about. I started to get emails and phone calls telling me that the money I had paid were only service fees, and not payment on the principal and interest. I told them to look at the agreement and the money I paid.
    They automatically withdrew some additional funds that I did not authorize, so I reported it to the bank, the bank credited the withdrawal and I closed the account, reopening a new one at the same bank.
    But phone calls continued by a variety of people, some sounding professional, some threatening, and some folksy. They always alerted me to their intended actions to file suit and collect in court. I repeatedly told them to check their records on my account which was paid in full and if anyone was going to be taken to court it was I who would take them. To a 70 year old woman, this situation was extremely stressful, and I daresay may have killed someone not so physically and mentally hardy as I.
    I reported them to our local police twice in the nearly two years of harassment to have official documentation of what was happening. The advice from the Police Dept was to tell them I had reported them, then end the conversation. It worked.

    • Wow, it’s amazing to hear all of the hard and soft tactics debt collectors have used. Have you heard from them since you filed the police reports?

  • Several years ago, my wife and I consolidated all credit card debt just before the credit “crash”. (All are now paid off) A collection agency actually used Google maps, found us, and contacted our neighbor via phone to give us a note that in essence said, “Please settle your debt.” I told the neighbor that she had better not do this again unless she wanted in on the legal action that was to ensue. Don’t know if this is a new tactic. But, goes to show they will go to any length to get you. Also, the collector was very obnoxious.

  • Debt collectors are in the game for one thing – profit! Fresh debts paid to creditors are around 25 or 30 cents on the dollar if that. Fortunately for us, they have no power to collect anything. If you happen to owe back taxes, then the IRS has a lien filed against you. It’s not a good situation to be in, but it works to your advantage if you owe other monies. If you tell a debt collector you owe back taxes, they’ll leave you alone. The IRS is always first in line, and they’ll cut to the head of the line, too. Everyone else has to wait.

    • Hi Gary,

      Tax liens are very serious, and eventually allow the IRS to seize your property, and even take the money owed from your deposit accounts. The IRS is the toughest, most powerful creditor that you can possibly have, and you should avoid owing them back taxes if at all possible.

      Abbey

  • There seems to me in dealing with collection companies, that they list the date of the debt from the
    date the list it on the credit agency report. This provides them with a longer time to keep it on your
    report. There were three of these on my credit report that were way out dated!!!!!!An these were the companies that were harassing my phone!!!!!Any thing that is seven years old from time of service is
    out dated must be removed, and must be removed from your report, and is uncollectable by law!!!!!!!!!!!!!
    often times this listing can be a year or two after the service!!!!!!

    • Hi John,

      Actually, just because a debt has exceeded the statute of limitations or has dropped off of your report, that does not mean that it’s uncollectible. You still owe that money and they are still entitled to try to collect it. When a debt exceeds the statute of limitations, it only means that the lenders can no longer sue you for it in court. When a debt reaches 7 years from the date it went into collections, it should no longer show on your credit report, but it does still exist. They can still try to collect it from you.

      If you think that you have items on your report that are outdated and should be removed, inform the credit reporting agencies in writing. They are required to remove all inaccurate information on your report.

      Abbey

    • The date is not from the time of service. It is from when the original creditor closed the account (which is usually 3 months after date of service), or the date of last payment, which always resets the date. That’s why creditors always hound you to make a small “good faith” payment, because it resets the clock for them.

  • You can also report any harassment to your local states attorney’s office, and file a complaint. Most people run like hell when the state gets involved, because it can mean that the state can restrict the company’s operations in your home state. So let them know what is happening.

  • Anybody know of a good lawyer? They have followed me to wk for over a year !! And everywhere I go!! Plus other illegal tactics….even though I asked them to allow me to make smaller payments when this bill was still current

    • Hi Dee,

      What other illegal tactics have you experienced from debt collectors on the past? Are these issues still ongoing?

      Abbey

  • Hi Abbey,

    I’ve had a few problems similar to some of these. My worst being, home equity loan lines of credit. I’ve had one that I’d been instructed would be paid off, completely, by a last payment of $2100 (but now am seeing new correspondence about debt after five years); and another, that had a fifteen year pay-off that’s past that time limit, still having a debt after seventeen + years (as if I’d paid very little!) Both, continually, being reported to the credit bureaus in more than duplicates.

    Thanks for listening. I await your response.

    • Hi Pekay,

      Are these debts that are delinquent and gone to collections? Or are they current, just taking forever to disappear?

      Abbey

  • I was contacted by a collection agency for an account that I do NOT remember having, so I asked for the running account and charges so I could try and verify if mine, they told me they could not supply anything but the balance due or a statement, I wanted the individual charges, they told me to contact the original creditor, I did that and they said to get the info from the collection agency, that’s why they hired them, The calls keep coming but never ever proof of purchase(s) . Also another company, runs my credit report once or twice a MONTH and it’s really smacking the heck out of my report. I feel they are doing this to make sure I can’t get ahead or make any progress….please advise what do I do??? Thank you

    • Hi Shona,

      Do you communicate with the collection agency in writing? Doing this instead telephone communication can sometimes give them more accountability, allow you to organize your thoughts on paper, and give you a record of everything you and the agency have said to each other. You can write them asking them to provide sufficient information proving that they are legally collecting this debt from you. You can tell them that if they are unable to send you this proof, they must remove the debt from your credit report (this is within your rights under the Fair Debt Collection Practices Act).

      As far as the inquiries are concerned, check to see if they are “hard” or “soft.” A hard inquiry is one that is authorized by you, usually when you apply for a new credit card or open a new bank account. Although they don’t affect your credit score as much as other factors, they can cause a temporary ding. Soft inquiries are not authorized by you, and are usually run by companies who want to send you “pre-approved” offers for new lines of credit. The good thing is that these do not affect your credit. Look at the inquiries on your report–if there are hard inquiries that you did not recognize, use the same validation request to prove that you authorized them or have them removed.

      Abbey

  • I made contact with an agency assigned to collect on a debt I was unaware of, due to a move. I had offered to pay in 3 $78.00 installments. 2nd pymt was not able to do because my checking acct had been illegally charged to. I called my credit agency guy, said understood & ask I cont. pymts as soon as can. 2 weeks later he filed a “seriously delinquent” on my credit report. Is this legal, Atersll, I am making every effort.

  • Last year a man came to my house, asked me if “I” lived in the residence, and served me legal documents. Apparently, I was being sued in local court by a debt-collector and law office. The letter stated that if I did not call them to address the debt then I judgement would be filed against me. I panicked and called them to make payment arrangements, even though the reason I had to stop paying this debt was because the company that I worked for laid me off, and I was left jobless for a few months, and have not yet recovered. A few months later I receive a similar letter from another debt-collecting law office threatening the same thing, but this one I just could not afford, so I let it pass, fearing that they could take the debt out of any profit if I ever sold my house, or something to that effect. I’ve never seen this level of cohersion from debt-collectors. My girlfriend tells me that I should just file for bankruptcy, but even that costs more than what I can afford at the moment. It’s quite nerve racking.

    • Hi Martin,

      Many of our readers have shared with us how stressful it is to deal with debt collectors, so you are not alone in this. Bankruptcy can be the best option for some people, but you should not be pressured into filing if you don’t feel like it’s the right thing for you to do.

      The problem is, debt collectors usually don’t give up very easily, so until you take some action they will probably not leave you alone. You may be able to settle your debt for less than the full amount–although this will trash your credit in the short term, you will no longer have to deal with harassment from collection agencies.

      Evaluate what the best option is for you, and start to work on it. Once you have a plan in action, you can start to relieve yourself of some of the stress that you have right now.

      Good luck!

      Abbey

  • I always check my credit report for errors, dispute them and they are removed. After getting my report recently, I saw that there are two new debts reported that were not on my reports before (all three bureaus) however I am not sure how to dispute them, The debt was reported as being opened in 2012, this is not right, I do acknowledge that the debt is mine it originated in 2008 not 2012, they were bills in my name that my ex husband was to pay but did not. I tryed to negotiate a payment plan with the original debt collector but they refused my efforts. I am assuming the debt has been sold again since it has shown up with a new date? Should I dispute it again because the original debt date they have is wrong? Will it be removed from my report, since they are not the original debtor can they be made to correct the date at least? There has been a lesson learned by me as well… NEVER EVER let anyone purchase anything in your name, trusting that they will repay you. I should add that I was living in South Carolina where the limit on debt collection is 3 yrs versus the six yrs in CT where I now live. I do know that the items will remain on my reports or 7 years. Any input will be appreciated

    • Hi Roseann,

      These are all great questions, and many of our other readers find these issues confusing as well. I deferred to the expertise of our staff writer John Ulzheimer to get the nest answers, which I can share:

      “The ‘open’ date on a collection doesn’t actually mean that the original account was opened on that date. On a collection the Open date is the date the debt was assigned to the collection agency or purchased by a debt buyer.

      If anything is wrong with the collection they have an obligation
      under Federal law to correct it. But, if you dispute an item that isn’t actually incorrect, like perhaps that Open date, then it will likely come back as verified as accurate and remain on the file.

      The 3 and 6 years you’re referring to [as the statutes of limitations on debt collections in the two different states] are actually limitations on how long the debt collector can sue you to collect the debt, not how long they can attempt to collect the debt otherwise. After that time has expired the debt becomes ‘time barred’ unless you make a payment or promise to make a payment and then that can cause the time to start over. But yes, in no condition and under no circumstance can the collection be reported to the credit reporting agencies longer than 7 years from the date the original account went into default.”

      I hope that helps clear up some of the confusion–thanks for reaching out and let us know how your credit repair efforts work out!

      Abbey

      • Well, this credit card debit they said I owed was back in 1990 or somewhere around there. This car , Van I had, I had a buyer for it and the day before the buyer was to come by and pay me the full amount I owed, Wells Fargo called and said they did not want me to sell it. Picked it up, and sold it for over $3000. Then they are wanting me to pay the full $6000 on it. I tried to get them to add it into my Van I got through them also. They said No! They keep sending me letters over and over and over. I tried to do it cause they even told the Dealership to tell me to sell it. So, I tried, and they don’t like it. I don’t feel I should pay on it since they refused the full amount.
        Shirley

    • I would wait until the 7 year mark and then dispute it, because then they cannot put it back on your credit. I would suggest you include in the disput the two facts. This debt was not yours (it was your exes), and that it was more than 7 years old and should not be showing on your credit report. Make sure to dispute on all THREE credit reports, because they may send it to the one that you did not dispute with. The date goes from the most recent of either when the last payment was made or when the original debtor closed the account (not likely 4 years later). That’s why creditors try to get you to make at least a small “good faith” payment. It resets the clock for them to collect the debt.

  • How long am I charged a BALANCE TRANSFER fee ? A few yeas ago I made a balance transfer from one card to another even though I was aware of this fee, I had no idea 3 years later a balance transfer fee would still be
    showing up on my monthly statement .

    thank you

    • Hi Mary,

      Typically a balance transfer fee is charged at the time of transfer, and is usually anywhere from 1% to 5% of the total balance on the card. Could this be an annual fee, rather than a balance transfer fee? Many credit card charge an annual fee for having the account.

      Check with your bank to see what the terms and conditions are for the card. If you think you are being charged in error, contact them to make them aware and have the fees reversed.

      Abbey

  • Just wanted you to know I thought this was a great piece !
    Caught myself before getting in these with exception of student loans.

    • Thanks Diann, it’s great to know that you liked the article so much. What would you say has been your “worst debt decision” in the past?

      • I remember back in 2005 we were loosing our home because of a few things that happened to my husband. The worse dept deal I did. Was refinancing my home. Not just once but 3 times. That hurt me a great deal. We ended up loosing everything.
        If I knew then what I know now. It would have been very different. And don’t over extend your credit worth. I hope some day I will be able to buy a house again thank you

  • I do have 1 credit card debt but I have other more serious debts (they are all serious). I have 2 payday loans ($250 ea) they a year old, an old (2008) $10,000 charge off on my credit for a vehicle that was totaled in a car accident, which they repossessed and picked up for the collision garage the following day but I’m still being charged the full amount, I have a large student loan ($30,000+), bank debt of $500 and Capital One Secured of $500). I have been harassed by the payday loan people on a daily basis and at work. I was thinking about filing for bankruptcy for all the eligible debt. I have previously filed bankruptcy in 2002 which that wasn’t necessary but I feel this time it is. I do regret getting the payday loans and do not recommend them to anyone. They have been harassing me 24 hours a day, I closed all bank accounts associated with the payday loans as they have contacted the bank trying to get money and more than they were supposed to originally get. Payday loans will try scare tactics by threatening to have you locked up, taken to court and even try to garnish your wages. DO NOT use these people at all.

    I am looking for some advice on the bankruptcy. Most debt solutions and counseling pertains to credit card debt which I really don’t have.

    • Hi Bonnie,

      Yes, payday loans almost always end up costing borrowers much more than the loan is worth, due to the crazy interest rates. Once you fall behind on payday loan payments, the interest charges and fees can be almost impossible to catch up with.

      What advice are you looking for in regards to declaring bankruptcy? It can be the right decision, depending on your financial situation.

      Abbey

    • Typically bankruptcy attorneys don’t charge for a consultation. You can sit down and discuss your situation at length with them and they can advise you on the best option for you. If you choose to do this I would highly recommend you take a copy of your credit report for the attorney to view with you

  • I recently received a letter from a debt collector about something that happened 9 years ago. I called them and explained that I never had a loan with the company they represented but they insisted I did and that they were willing to negotiate the balance down to less than half if I gave them my banking info right away or the price of the negotiations would go up. They never produced any proof that I even owed them the debt. After researching the issue online I found a letter asking for proof that I owed them the money and the phone calls stopped.

    • Unfortunately, not all lenders are as honest as others, and rely on intimidation to collect funds that may not even be owed to them. It’s important to remember that you always have a right to ask debt collectors to show you proof that you actually owe them what they claim you do.

      What type of debt was this that they were trying to collect from you?

      • I know that all too well. This one ARA or something like that called me and said they were a law office and was starting a law suit and I was being sued. They even said it was about my other Van that I let go back to Well Fargo, because the car place wouldn’t take it as a trade in. They said one thousand dollars and I would be free of it, and nothing more to be paid. I did get over 50 calls a day on this. So I paid it. Then SRA called and said I have not paid anything on this Van. I told them that I did, and the lady said all I had to pay was the $1000. I sent fax on the bank statement and ARA called and said it was on a Credit card that I never had, but saying things about the Van, lady called me a liar and hung up on me.She never said it was for a credit card, she kept say Then I got a letter saying now I owe $14,000 on this credit card. I never had one.

    • There is also a statute of limitations on debts that are charged off. Check your state. I got sucked in by a debt collector 11 years after the charge off. Unfortunately I didn’t check my statute of limitation and agreed to pay it back. I was told that it was reopened when I agree to pay it. Otherwise, I could have said no. Michigan has a 6 year statute of limitations on collections for credit cards. 🙁

      • There are some ways around the statute of limitations, including getting to admit you owe the debt. If you are unsure of how to avoid this, or worry about being intimidated into admitting the debt, you can notify the debt collector in writing that you want no further communication, or that you want them to only communicate with you in writing. This is one way you can avoid accidentally admitting to something you otherwise wouldn’t.

  • My husband and I are wishing, dreaming of buying our first house in about a year. We are both 43 yrs. old and have poor credit. For the last 6 months I have made payments on the one auto loan we have on time and my husband got a cc with a 500 limit and make payments regularly and on time. But his score hasn’t climbed not even a point what are we doing wrong. We are desperate we have lived in the same rental property for 11 years and have always paid on time, the landlord has offered to write a letter when we try for a home loan, not sure that will help or not.

    • Hi Laurie,

      Do you know if the lender who gave your husband the credit card reports to all three credit bureaus? If they don’t, then your husband’s on time payments will not affect his credit score. Make sure that any account that you have reports to the credit bureaus, and that you keep the balances below 30% and pay them in full every month. You also may want to pull copies of your credit reports and make sure there are no negative items that are holding you back–there may be errors or items that you were completely unaware of.

      You can also see if you can have your credit limits raised, which will reduce your debt credit card utilization and positively affect your score. The name of the game is a variety of accounts, all with low balances and excellent payment history.

    • Dont pay off the bal on your card in full each month. Leave about a $20 bal on the card. I had the same problem and found that because I was paying it off each month it was not helping my score so as soon as I left a bal one month it went up 24pts and still going up.

  • I have 2 retail cards paid off and one credit card paid off. I would like to close the accounts. What will closing the accounts do to my credit? Or is it better to just keep them at a zero balance? I read so many conflicting stories.

    • Hi Tori,

      As far as your credit score is concerned, in general it is best to keep your accounts open, even if you do not plan on using them. This is because the age of your credit accounts makes up 15% of your overall credit score. By closing your older accounts, you eliminate them from being included in the calculation. If you cannot (or don’t want to) pay the high annual fees associated with your cards, that is one thing to consider. But if it isn’t costing you anything to keep these accounts open, it is probably best to keep them as they are, and not take the hit to your credit score.

      Abbey

  • I have been in a chapter 13 a little over 1 year ago. I have a home still that I am paying for. My credit score went down to the 450 range. I went to a credit repair company to help me get my score up to buy another home. It seem that they was doing what I was paying them for, until I went to a auto dealer and they pull my credit score and it was less then what I started with before paying for help with trying to get it up. Do I have a case of legal robbery?

    • Hi Robert,

      Although credit repair companies seem like they can wave a magic want and fix your credit report, many fail to deliver results even close to this. Most of these companies charge for services that you could perform yourself for free, like identifying negative items on your credit report and disputing them with the credit reporting agencies to have them removed. You don’t need a professional to accomplish this, you can get started on it right now for free by watching this video that Mike made to help explain the process: https://thecreditsolutionprogram.com/staging/education/full-video-series/

      Some credit repair companies even offer to give you a completely new “credit identity,” and most of these methods are just flat-out illegal. Your personal credit is very important, and no one will care about it as much as you do. If you are paying good money and not receiving what you were promised, it may be time to look into other options.

      Abbey

  • Thank u …. I was just cleaning out my email subscriptions…. Thank God I read yours 1st! I will keep it.. Makes perfect sense. Thank U again…

  • Thank you for all the wonderful advice and tips!! I am learning so much about credit that I wish I did a long time ago!!

  • Can you tell me how to improve all three credit bureaus scores? Equifax is the highest. I essentially would like to have 800 across the board.
    Thanks
    Karen P.

    • Hi Karen,

      Each of the 3 credit bureaus uses a slightly different formula to calculate your credit score, and unfortunately they keep that information to themselves. What we do know is what factors affect our credit scores the most–this means that you can improve each area to see your score rise overall. You can find out more about the basics of a credit score to help you get started here: https://thecreditsolutionprogram.com/staging/what-are-credit-scores/

      Abbey

  • A very clear, informative and useful article! All the previous things I’ve seen written about this never were this clear about the details of “how it works”. Very useful, I’ll get right on it!

  • I have 2 good line of credits use n pay off to keep the cr open. I pay all my notes (mortgage) on time and months ahead my credit cards I do as you say use them but pay them off every month and I still can’t get my credit score over 645!!! What am I doing wrong?

    • Hi Elaine,

      I wish that credit scores were a simple thing to master, but unfortunately they aren’t. There are 5 factors that are used to calculate your credit score, and a change in any of them can raise or lower your score. You can find out more about how your credit score is calculated here: https://thecreditsolutionprogram.com/staging/what-are-credit-scores/.

      Although paying on time is responsible for 35% of your credit score, you probably need to work on the other 4 factors that make up the rest of your score.

      As the article describes, decreasing your credit utilization ratio is a great way to raise your score quickly. You can ask your bank to raise your credit limits, while keeping your balances below 30%. You may also want to add another type of credit, like an installment loan, in addition to the revolving credit accounts you already have.

      Don’t be discouraged because your score is stagnant, and congratulate yourself on taking the time and energy to put towards improving your credit score. By making gradual changes, you should start to see an increase over the following months.

      Abbey

  • I have learned so much from you, thank you for sharing so much of you knowledge. I was always a cash person and never worried about credit. Today credit is everything.

    • Hi Diana,

      So true–unfortunately just paying your bills on time is not enough to build a strong credit history. Luckily you can make credit cards work for you if you keep your balances low and pay them off in full every month.

      Abbey

  • Still a bit confused…if I transfer x amount of debt from card A to card B, how exactly does that improve my debt ratio?

    • Hi Tony,

      Your credit utilization ratio compares your total balances to the total amount of credit available to you. So, by transferring a high balance to a new or low balance card, you are increasing your total available credit. With more available credit, your utilization ratio decreases.

      Abbey

  • this is great but what if your almost maxed out on all your credit cards and none of them will reduce your interest rate or increase your limit???

    • Hi Jay,

      If you have no more wiggle room on your cards, these tactics may not work for you right now. Another approach that may work better for you would be to try to pay off your lowest balance card. Eliminating that debt will raise your total amount of available credit, as well as free up some more cash for you to put towards paying down your other balances.

      You can also try opening another credit card and transfer a balance to that one. If the new card has a better interest rate, that will give you more available money to pay down your balances. If you want to try this tactic, be very careful that you use this new card only as a tool to help you pay down your total debt. Maxing out another card will only set you further back.

      Abbey

  • Thanks! This is the best information I have received that can help me with my own personal credit cards/Debt Ratio.

  • I recently had a two month set back in finances. After those two months I caught things up, but last week I got a letter that the credit limit on one of my credit cards had been reduced to a $1.00 above my balance because of a periodic check they do on credit. I was no where near my credit limit, and this wasn’t even one of the cards that was affected by the previous issue.
    I don’t think they should be allowed to do this if in doing so it further hurts your credit.

    • Hi Bev,

      Credit card companies have been known to unexpectedly lower customers’ limits to decrease their risk of losing money if their customers default. It may not be fair, but it happens. You should first call your lender and see if you can convince them to return your limit to where it was before. Calmly explain that you have gotten your payments back on track, and point to anything like a salary increase that makes you less of a risk for default.

      Whatever you do, don’t close your account in frustration; this will only further hurt your credit score. If you cannot get your limit increased, it may be time to shop around for another card that offers you what you are looking for.

      Good luck!

      Abbey

  • The secured first progress card recommended on this page is not available in Iowa where I live. Do you have any other suggestions?

    • Hi Trish,

      You may want to see if your bank offers any secure credit cards since you already have a relationship with them. You can also do some online research to find other credit card providers that offer secure credit cards, and see which benefits work best for your situation.

      Abbey

  • Very good information about “life after foreclosure”! I did not know about former owners being entitled to money if the foreclosed home is sold for more than they owed on it. I forwarded this information to some friends that were in this situation.

    I have been looking every where and asked loan officers and no one has been able to give me a good answer to the following question: With the goal of improving your credit score what is the best approach to paying off a vehicle loan? 1. Make the minimum payment, on time, for the entire length of the loan; 2. Pay off the loan early (does it matter how many months to make payments)?; 3. Pay off the loan after 1 month.

    If someone knows the correct answer to this question, please let me know. Or, if there is some other option that is better.

    Thank you

    Jim Sullivan

    • Hi Jim,

      Glad to hear that the foreclosure information was helpful! In regards to your auto loan, you should of course always make at least the minimum payment on time every month. To figure out how soon you should pay it off, keep in mind the factors used to calculate your score. One factor is the age of your credit accounts–the longer you have open accounts in good standing, the higher your score will be. Another factor is the different types of credit you have. You should have a mix of different types, such as both loans and credit cards.

      Based on these factors, paying off the entire loan early may not be the best option for your credit score right now. It really depends on your credit profile.

      Abbey

  • Mike is there a video that addresses how to handle a settlement offer? I’ve got a $12k old credit card charged off. Of course the original amount owed is much less but w/ the interest, etc… it’s now at $12k. I recently got an offer from the CA for a 90% off settlement. How can I pay the settlement and get the item removed from the credit reports?

    Thanks,

    Shea

    • Hi Shea,

      Sometimes debt settlement is the best option for getting out of debt, especially if your balance is way more than you can realistically pay off. You can negotiate, and you should NEVER agree to a payment amount or timescale that you can’t actually handle.

      You should also keep in mind that when you go through debt settlement, your score will take a huge hit initially. The plus side is that you will actually be able to pay off the debt and no longer receive harassing calls from collection agencies or scary-looking statements in the mail. You can rebuild your credit in the long run, and possibly get the settlement removed from your report by using some of Mike’s tried and tested tactics.

      You can find out more about successful debt settlement strategies here: https://thecreditsolutionprogram.com/staging/education/cspsettledebts-1.

      Abbey

  • The snowball effect didn’t work for me. So I am going to try the high interest rates and see if it is better.
    Thanks for all the input on out of debt……

    • Hi Suzie,

      Why do you think you were unsuccessful using the debt snowball method? Did you find the plan hard to stick to, or was it taking too long to see results?

      Abbey

  • My median score was a 659. I was told to get a secured card to improve my score to purchase a house. I got a secured card and now my median score is a 623. I am closing on my house in a month. Will it go back up in time for closing? I’m afraid that I won’t have an acceptable score when they rerun my credit at closing.

    • Hi Lindsey,

      It’s not uncommon for your score to fluctuate like this from month to month. Your score may have dropped temporarily due to the hard inquiry from the bank when you applied for the secured card, or due to another factor such as increasing your credit utilization. If you continue to make payments on time and keep your card balance low, you should see your score increase again.

      Abbey

    • No it will not improve in a months time as your hoping. Whenever you get a new card you’ll have a hard pull on your credit score. It will take about three months for the points lost due to the hard pull to return. You may of also had points taken if your average age of credit dropped too much due to adding a new credit card, it may take much longer for those points to return.

    • Hi Ana,

      It’s not unusual for your credit score to fluctuate by 40 points throughout the year. Things like opening a new account, carrying a larger balance on your cards, or missing a payment can all affect your score temporarily.

      If you are trying to increase your score to 800 or higher, you should start by checking out this helpful article : https://thecreditsolutionprogram.com/staging/5-habits-to-get-800-credit-score.

      Check back in and keep us posted on how your score improves!

      Abbey

  • How do you know what score are real. I have a website that gives me all of the Bureaus and my score is 708-711&713 but I got a letter to refuse me credit and said my scores were in the 400 range what’s up with that?

    • Hi Kimberly,

      You can check all 3 of your credit reports here: http://www.gofreecredit.com.

      I’m not sure which service you used previously, but perhaps your score has changed since you last checked it. It is a good idea to get a copy of your actual credit report, not just the score, so that you can verify all of the information is correct.

      Abbey

    • I recently had this experience. I have pulled my credit and corrected everything on it. My Transunion score is 636, so, although I had a ch.7 BK last July, I have not had any lates. I thought that Barclay Bank Visa went down to 590, so I applied. They are not secured and offer rewards. I received a rejection letter, stating that my score from TU was 495. They are using Chexsystems and get different scores than the FICO. Same with the credit union. I was looking to do a secured loan to build credit and the score came back 495. I did another http://www.creditkarma.com and my FICO is still 636, even after the 2 inquiries.
      What score model are they using now?
      – See more at: https://thecreditsolutionprogram.com/staging/most-common-credit-card-mistakes-and-how-to-avoid-them/#comment-49663

      • Hi Deb,

        The thing to remember when checking your credit score is that these are private, for-profit companies and they each use a different formula to calculate your scores. This means that your score at one company can be higher or lower than it is at the other ones. The only way to know exactly what factors are being used to calculate your score is to pull copies of the actual credit reports.

        Chexsystems is slightly different in that they report information regarding deposit accounts, rather than credit accounts. This means that they monitor and report things like overdrafts and fraudulent check deposits, whereas the other bureaus report information regarding credit accounts and monitor things like collection accounts and unpaid student loans.

        Because Chexsytems reports different information, their scoring will be different as well. Before you apply for a new card, find out what the qualifications are and what systems they use to decide to review your credit and banking history so that you can have an idea of whether or not you will qualify before you apply.

        Abbey

  • I talked to a Credit Counselor about 3 months ago about a charged off credit card in my husbands name, but was also recorded on my credit report, even though Chase said I was not responsible for the bill. It caused my score to go down over 100 points, and caused me to be denied a refi on my mortgage.

    I would like help to have it removed from my credit report, and would like to know the cost.

    • Hi Vicki,

      You can request to have the item removed on your own, and avoid having to pay someone else! Gather any documentation that you have showing that Chase does not hold you responsible. Send a copy of that to all three credit reporting agencies, along with a letter identifying the mistake and asking them to remove it. Be sure to send it Certified Mail, Return Receipt so that you will have a record that they have received it.

      After they receive your letter, they have 30 days to investigate your claim. They will respond to you in writing, along with free, updated credit report. You can find all 3 credit bureau addresses here: https://thecreditsolutionprogram.com/staging/credit-bureau-addresses/

      Good luck, and let us know how it goes!

      Abbey

      • That happened when my marriage went down in flames. I asked my husband to have a lawyer draw something up absolving me of his debts. And he did, so I was clear.

        • Hi Cassie,

          That’s great that you were able to avoid being held responsible for your husband’s debts. Did your divorce affect your credit in other ways?

          Abbey

  • Great info ,keep it coming. Stress will ruin you if you let it. Learn to control it and you will lead a much more satisfying life.

    • Using debit cards won’t help if you’re trying to build your credit. Nor do they have protections as robust as a credit card in the event of fraud/ unauthorized charges.

      What worked for me was getting a secured credit card with a low credit limit from a credit union (which tend to have better rates than banks), that way even if I DID max it out (I didn’t), I always knew I could pay it from my checking account since the limit was so low. And only using it for essential, recurring expenses (gas, groceries, etc)—

      • Thanks for sharing! How long have you been using the secured card? Do you plan on trying to convert it to an unsecured card or raising the limit?

  • Hello everyone. I would just like to share my credit solution journey. About four months ago I decided to try Mikes credit solution program, and it works. I did everything he said to do in his videos and my fico score went from a 520 to a 655 in three months. It is not that high, but it is high enough to buy a home which was my goal all along. It is also improving every month by me reducing my credit card ratio and so many items that have been deleted because of inaccuracies or I paid them off.
    I am still working on my husbands, he to has student loans that were “late”(but he has not started to pay on them yet). We contacted Mohela and they do not want to delete the “late” payments. Any advice?

    • Hi Keisha,

      Thanks for sharing your story, it’s great to hear that you have had so much success using the program! If you feel like the creditor is reporting inaccurate information, you can contact them in writing and request that they verify its accuracy or remove the negative items entirely. Investigating your request takes time, money, and resources, so it is easier for them to just remove the item. You are also presenting yourself as the type of person who may seek legal action against them, although you want to avoid threatening them with it if you don’t intend to pursue it.

      This can be a very powerful tactic when done correctly, and could make a huge difference in your credit score. Good luck!

      Abbey

  • I had a huge mark on my credit in the beginning, not quite under my control. I decided to apply for a secured card in March, 2013 with CapitalOne. I deposited 500 into the secured card account, they gave me a limit of $651. I’ve been using it for gas and paying faithfully. I recently called my bank to replace my debit card, and got a Rewards credit card offer with no fees and without a high interest rate. I took the offer and have a $3000 credit limit. Right now I’m looking for information on the secured card, whether or not to close the account. There seems to be many varying opinions, I would like yours with some detail if possible. Thank you for your time.

    Tim

    P.S. I really don’t need the deposit back from the secured card, if that makes a difference. The main goal is just to build credit, if it helps keeping the card.. I will.

  • My father added me as a authorized user on 2 credit cards.How long does that take to show on all 3 credit reports?

    • Hi Laura,

      Credit card companies generally report to the credit bureaus once a month. It then takes the credit bureaus a few days or even a week to update your information and recalculate your score. It may take a couple of months for you to see a difference, so just be patient and keep building good credit habits.

      Abbey

    • Hi Kathyn, I feel your concern and worry about your credit as I did myself not too long ago, but as Abbey B, I watched the credit solutions program videos and read their articles, I did as they suggest and I see my credit improving so much. I feel so great right now without the stress that I have before. Just give it a try.

  • My daughter is wanting to either buy or build her first home. She has good credit. How does she go about getting a loan? She doesn’t know what lenders/ bank to go to.

    • Hi Barb,

      Is this her first time applying for a home loan? There are several programs that she may qualify for, which you can learn more about here: https://thecreditsolutionprogram.com/staging/how-to-determine-if-a-va-or-fha-loan-is-right-for-your-home-mortgage/.

      If she hasn’t already done so, she should order copies of all 3 credit reports and make sure that there are no negative items that could potentially cause problems with her application. I also recommend shopping around to several lenders before deciding on a loan, as you may see a difference in rates. Make sure she does her research and takes the time needed to get the loan that is right for her, as every loan situation is unique. Remember, banks often give loans to people who can’t afford to pay them, so understanding and sticking to your budget is key.

      Check back in and let us know how the application process goes!

      Abbey

      Abbey

    • Hi Shelby,

      Most credit card companies report on the statement date, then it several days or even a week for the credit bureaus to update your credit report. Keep up the good spending habits and you should notice a change in your credit score.

      Abbey

  • Hi i am a young female trying to build credit but when i was 16 my debit card was stolen i was very irresponsable didnt report it on time but i paid the bank back all the withdrawl that happened in my account every since 2010. Now i am unable to apply for major credit cards or departmen store cards my credit score is low i recently got a secure credit card through td bank but any other major banks turns me down to open accounts about a month ago td bank approved me for 300 dollars secure credit card how can i get rid of that negative on my credit report all i have is a letter from that bank stating is being settled but that still affecting my credit score any advice helps thanks.
    Karen

    • Hi Karen,

      We all make mistakes when we are younger that unfortunately follow us for years afterward. Building your credit can be a slow process at first, but you will build momentum and see your score improve if you keep up the hard work. Pay the full balance due on your secured card every month, and make sure every payment is on time (you may want to set up automated bill pay to make sure you don’t miss a payment).

      Secured cards are a stepping stone to qualifying for an unsecured credit line, so be patient while you are building a positive credit history. As far as removing the negative item from your report, you can use ask the credit reporting agency in writing to investigate the item’s accuracy. If they cannot provide the information you requested within 30 days, they are required to remove it from your report. Learn more here: https://thecreditsolutionprogram.com/staging/education/disputing-errors/

      Abbey

  • I am 67 years old with a credit score around 660. I have had a checking account w/ debit card from B. O. A. for 6 + years, no fees because S. S. is direct deposited. In Jan. they 0ffered me a pre- paid platinum cash back credit card, $39.00 a year and $95.00 deposit for $500.00 credit, $200.00 cash advance. I use it for most purchases, esp. gas, and have already enough cash back to pay the annual fee. Also they occasionally offer special cash back deals at retailers I deal with which has saved me even more money. I keep track of my balances and transfer funds from checking right away. I think this is a great way to go that is helping rebuild my credit and will eventually lead to a fee free credit card.

    • Hi Ed,

      That’s great that you have been able to build your credit by maintaining good spending habits. It just goes to show you that credit can work in your favor if you use it responsibly. How many points has your score gone up since you have been using this card?

      Abbey

  • Hey there! I just would like to give you a big thumbs up for your excellent info you’ve got right here on this post.
    I will be coming back to your web site for more soon.

  • Hello. I have several hospital bills that are on my credit report otherwise its squeaky clean but I was wondering the best way to go about getting these off my credit reports. I have the money to pay them but am scared if I shell out several hundreds of dollars to pay them off that they will not remove them from the report. Should I contact the hospitals to resolve this matter or deal with the collection agents? Some of these are very old so I don’t know who to contact. Thanks for your time

    • Hi Heather,

      You should be able to tell which company you owe the money to by looking at your credit report. If you are still unsure, contact the company that you originally owed the debt to and ask them whom they sold the debt to, They should be able to provide you this information and point you in the right direction.

      Paying the remaining balance on the debt will not necessarily remove it from your credit report. Collection accounts typically remain on your report for 7 years, but there are several different tactics you can use to try and have them removed earlier. One of these tactics is disputing the item due to an error. You can learn more about this by watching these videos that Mike put together for our readers: https://thecreditsolutionprogram.com/staging/educational-videos/disputing-errors/.

      Abbey

    • Hi Francis,

      Tax liens, even when paid, typically remain on your credit report for 7 years. If it is a Federal tax lien, you can request to have it withdrawn through the Fresh Start Program. You can apply for this through the IRS website.

      Good luck!

      Abbey

  • that very last piece of advice was not the best. Closing credit cards does two things. First it takes away the length of credit history almost like you didn’t have that card for 15 years. Second it shows that you cannot manage having revolving debt. Both of these will impact credit significantly and should be considered when selecting cards to close. I definitely recommend taking then out of your daily wallet and stashing them away in a safe place not used or opened everyday.

    • Hi Jessica,

      Thanks for sharing. Yes, closing an account can hurt your credit score, especially if it is an older account. If you believe that you can trust yourself not to accumulate any more debt on those cards once you transfer the balances to another account, then it may be in your best interest to keep the accounts open. The most important thing to do when trying to get out of debt is to not create any more debt, so it is important for each individual to choose an option that works best for them.

      Abbey

  • My experience in paying off credit cards and closing the accounts i a negative one, because reducing your available credit causes a steep drop in your credit score, and that can raise interest rates everywhere.

    • Hi Dave,

      Did you close your accounts so that you wouldn’t be tempted to use them, or because you just weren’t aware of the negative affect that closing the accounts could have on your credit score?

      Abbey

  • Im in a pickle now. I got my credit up to par better than its ever been. About 3yrs. Ago i put a infinity truck in my name for my cousin. She pays on it reg. & payments have never been late. It was &18,000+ & payments are down to about $11,000+ and I was glad 2 do it. My cousin is now bout 33yrs. Old and has had a lot of surgeries in her life so her credit is not the best. But surely not the worse. Now i am trying to buy a house, & even though i have nothing negative on my report, I know if i at least get that vehicle off my report, that would be even better on my behalf. But recently I tried 2 get the credit union i have the truck by 2 put the truck in her name, and she was turned down, so it has to stay in my name. I don’t know what to do? Also I co-signed a sallie mae student loan with my husband years ago, and i want that loan to be strictly under his name. What can I do 2 chang this? Thanks

    • Hi Shantel,

      It’s great that you are using your great credit to help out your family by co-signing their loans, however this can be a sticky situation for everyone involved. Do your cousin and husband have better credit than when you first co-signed for them? It is important that they work towards being able to qualify for their own loans to relieve you of the burden.

      As to your husband’s student loan, I would recommend contacting Sallie Mae directly to see what their policy is for removing co-signers. They may already have a policy in place that you can review on their website.

      Abbey

  • The worst financial decision my husband and I made was buying a time-share. Our time share is paid off but the maintenance fees have become a struggle for us and they keep increasing. Its extremely hard to get rid of a time share and its become costly to do so. I checked into it. Our time share is in Florida where there are thousands of them and a lot of people trying to rent or get out of them. So renting it is extremely competitive- you end up losing money on the rent because people are looking to rent at the best deal. We’ve found that its cheaper to just rent a timeshare when you want to go on vacation. Renting one is cheaper than paying maintenance fees on an owned one. Also our time share is willable to our children. The time share salesmen pitch this as a benefit, however its a major disadvantage. Why would I want to pass this headache on to my children to ruin their finances? So we have stopped paying on the maintenance fee’s. I told the time-share company to just take it .. we don’t want it anymore (its paid off) I want no money for it, I just want out of the agreement. Its not that easy though. I can’t even donate it because it’ll cost me thousands. So I now I’m wondering what will be in store for me with the non-payment. I have excellent credit so this is will now become a ding in my score. I just feel like the continual payment of the fees to be a huge waste of money especially if like in our case we weren’t even using the time-share.

    • Hi Cynthia,

      It’s amazing how something can sound like such a great idea when you buy it and then turn out to be a huge money pit. I’m sorry to hear this timeshare has become such a financial burden for you, especially since you purchased it with the intention of enjoying it with your family.

      Have you reviewed the agreement with the timeshare company? There may be a clause that details what you need to do in order to dissolve the agreement and relinquish the timeshare. There also may be options for selling it, however you will most likely need to reduce the price to much less than you paid for it. The problem with simply stopping your payments for the maintenance fees is that you agreed to pay them when you bought the property, so by not paying you may be putting yourself at risk for additional fees or even legal action. This can cost you even more money and have a serious affect on your credit score. You may find it helpful to search online for stories of others who have had this same problem, as they may have specific suggestions to help you get rid of this burdensome vacation property.

      What are some other tactics that the salesman used to convince you to purchase?

      Abbey

  • Any drawbacks to consolidating credit card debt into a home equity loan? I currently don’t have a mortgage but too much credit card debt. It’s bringing my credit score down.

    • Hi,

      Without knowing all of the details of your situation, I can’t advise you as to whether a home equity loan is a good idea. Just keep in mind that when you borrow money against your house, you take the risk of losing it if you are unable to pay. Make sure that you do extensive research to find the best option for your situation before you make any decisions.

      Abbey

  • I’ve found that going into a business without checking out all the costs of operating it or the actual demand for the services or products can cause a pile of debt. What was, hopefully, a way of making money can turn into a losing proposition. If the income is not sufficient to cover the expenses, you end up borrowing to pay for them. Eventually, you cannot borrow anymore.

    A business that that has a steady flow of repeat customers can do well but you better make sure those customers will go to you rather than your to competition. You also need to balance your spending between paying for necessary expenses and marketing. If you spend too much on expenses, you are wasting money. If you spend too little on marketing, your business will not have enough customers.

    You need to get all this information and get lots of advice from professionals or successful business people before you invest into a business or you could go into debt without a way out.

    • Thanks for reaching out with this great advice. Do you recommend any specific places people can go to get sound advice before starting their own business?

    • I got laid off July 24, 2009, and things were so bad in my area that my temp agency could not even find me PT assignments. Every morning was spent checking job search engines I’d set up. Every chance I got I modified my resume, cover letters and apps to fit jobs for which I was often over qualified but desperate to find work. That desperation left me open to ‘business startup’ companies who must get their ideas attached to these sites for people desperate like myself. After one disastrous start, the ‘perfect’ opportunity presented itself as a ‘fool proof’ method of starting up an internet business guaranteed to succeed. Key word here is FOOL which I was. Followed their blueprint and would love to plaster their name in this comment so others don’t get suckered in as I was. As is mentioned above, you have to be diligent to face up to the expenses you incur before you risk your severance pay on something that’s never gonna work. My son pleaded with me to ‘get out’ of this marketing plan since not one person ever signed up with me while all around me the people above me got richer and richer. Even spent money to attend a couple of seminars thinking it would show me how to fix whatever I was doing wrong. While there, during the awards ceremonies the same people won the big prizes, big money, big everything with a ‘token’ new person thrown in to make the rest of us believe we were not wasting our time and money. To succeed all you had to do was follow their marketing plan step by step. Expenses piled up with monthly ‘dues’, obtaining several domain names to ‘protect’ your business, webinar costs, advertising, etc. Upon finding out I was an article writer, they were elated saying it was THE BEST way to garner customers. They taught me how to change up my writing style in order to funnel business to the ‘website’ they’d set up for me. Even my writing skills failed to bring in even one customer. And ‘failed’ is how this turned out. Not only did I lose thousands of dollars doing every thing they said to do but combined with my failure to find gainful employment a feeling of being a complete failure permeated my life. To make things worse, my ‘sponsor’ never wanted to hear anything negative. She would chastise me if I tried to talk to her about my inability to sign anyone at all up for this perfect business plan. Abbey asks above for specific places to go for advice before starting your own business. Trust your instincts, talk to trusted friends and family–if you cannot sign them up, how can you expect to get complete strangers to hand over ‘lots’ of money–contact the BBB and get the SBA to look at your business plan. But the most important advice I would give is to set a firm deadline–a date to which you will stick–at which point you will bail out even if it means saying good-bye to money (and a lot of time) you’ve ‘invested’. Otherwise you’ll continue to ‘throw good money after bad’. Yes. I learned a lot while following all their instructions for setting myself up in an internet marketing business. But I’d rather turn back time and have some of the thousands of dollars I lost on this ‘education’.

      • Hi Sarah,

        Thanks so much for sharing all of this advice. It just goes to show that even companies that seem legitimate at first can potentially be scams. It’s unfortunate that you had to learn these lessons the hard way, but hopefully our readers will follow your advice and thoroughly investigate any new business adventure before investing time and money.

        How long did you work with this company before you threw in the towel? Have you since been able to find better employment?

        Abbey

  • Got a Home Equity Line of Credit on my horse ranch. Told a family member. She asked to “borrow” $10,000 to “put in the bank” to look solvent when refinancing her home. She was supposed to return the money in a month. She spent all the money, I had nothing when I needed it, had to borrow again at a high interest rate, and 8 years later, we’ve been to court, she tried to file BK, and thanks to a good attorney (I also have to pay), got a court order for monthly repayments. Meanwhile, family broken up, she hates me, etc etc etc. DO NOT LOAN MONEY, especially to family!!!!

    • Hi Nance,

      Sorry to hear that you had such a bad experience loaning money. Unfortunately, money can sometimes change even the closest relationships for the worse. If you could go back in time, what would you have done differently? Do you think that there is a way to say no to money requests from friends and family without causing a rift?

      Abbey

  • is there anything that can get a report off my record from a bank after the bank has sold the debt to another company? On the other company they called and said they were taking me to court over the bill or I could settle for a lesser amount, but the account still shows up from the bank. Also how long does a charge off remain on your report? I am pretty sure that some of the charge offs have been sold to other collectors and I was given the option by the other company to pay a lesser amount which I did. I have paid on time since 2010 on my other debts but I still have a score or 659, which has gone up 7 points in the last month. I know I can pay my cards down and it will jump up another 20 points but I want it fixed so it does not go down below an acceptable level just because I use my credit cards. My goals is to have my number at 700 before July. Also do you have to ask for the credit bureau to take reports older than 7 years off your record or do they do that automatically, because I have one from 2005. Thanks

    • Hi Chris,

      That’s great that you have a solid goal to raise your credit score to 700. Making the decision to tackle the problem is usually the hardest step for people to take, so give yourself a pat on the back for getting this far.

      With regards to your charge-offs, you are still obligated to pay them even though they have been sold to collection agencies. Charge-offs remain on your report for 7 years plus 180 days from the first date of nonpayment. If you are unsure of which company you need to pay, contact the original creditor and ask them who your account was sold to.

      Most debts should only stay on your report for 7 years, and although they should be automatically removed, many times they remain due to some error on the credit bureaus’ part. They are constantly compiling information for millions of people, and mistakes happen. You can request the removal in writing and provide any documentation that supports your claim. You can find the credit bureau addresses here: https://thecreditsolutionprogram.com/staging/credit-bureau-addresses/

      Abbey

  • Mike,

    Someone used my name in enrolling in a school program w/c cost $1,500 from an out of state. I don’t know how they got my info. When i check my credit score. It was already in a collection company it was almost 8 yrs still its in my credit history. What shall i do.

    • Hi Lyn,

      If this account was opened fraudulently, you may want to inform the company that the account was opened with. Identity theft is illegal and you should not be held accountable for the charges. Gather any documentation that can help prove your case and get in touch with the creditor.

      Abbey

  • I have a 725 score with the same 4 credit accounts ive had for 2 yr newest 8 yr oldest. Only one has a 35% credit cap. balance, the rest are 0 balance. Total credit cap. with all 8500. How can i get my score to jump. I seem to only budge it no matter what i do. Should i take on a new credit line.

    • Hi Ben,

      Your credit score is calculated by 5 different factors, each weighted differently (read more here: https://thecreditsolutionprogram.com/staging/what-are-credit-scores/). Some ways to help raise a stagnant score are to keep your balances low (below 20% of your limit), and may want to ask your credit card providers to raise the limits on your accounts, if possible. If you only have one type of revolving credit, it may also be a good idea to add another one, such as an installment loan.

      The most important thing, as always, is to pay your full balance every month, on time. Look at your accounts and try to identify areas for improvement.

      Abbey

  • I have been following your blog for a while now. I opened my first credit card 2 yrs ago. I have seen my score go up ,but not enough to get a home loan. I have a car loan now through my credit union and my bills are always paid on time. So my question is should I get another card to help raise my score?

    • Hi Katie,

      Using credit cards can help raise your score if you pay the full balance every month and always pay on time. You really only want to charge items that you could pay for in cash, to avoid carrying a balance and paying the interest on it. There are numerous factors that contribute to your credit score, so you will want to figure out the best strategy for you. You can find out more about how your credit score is calculated here: https://thecreditsolutionprogram.com/staging/what-are-credit-scores/.

      Abbey

  • Someone told me that there is a program that gives consumers about 50 points if they sign up and agree not to be contacted by creditors that are offering new credit for the next 2 years. Have you heard of that? ??

    • Hi Stephanie,

      I have not heard of that particular program, but I would be wary of any offer like that that sound too good to be true. The truth is that the best way to raise your credit score is to get your debt under control, correct any errors and remove negative items, and make all of your future payments on time. There are some reputable programs, but many will end up costing you money and hurting your score even more.

      You can read more about some common “debt settlement” scams here to protect yourself: https://thecreditsolutionprogram.com/staging/debt-settlement-programs-seen-as-top-threat-to-consumers/

      Abey

  • Does this mean if you haven’t applied for new credit in the last five years, and you apply and receive a new credit card that your score will increase?

    New credit is 10% of score which equates to 10% x (850-300) = 550 x 10% = 50

    So will credit score increase by up to 50 points?

  • I can’t believe I’m even in this situation! I worked for years building my credit after my divorce a little over 10 years ago. Scratched & saved & done without until I was able to buy my own home, my lifelong dream! At the end of the home loan process, my lending representative cautioned me against going into any more debt for a year and to be careful. A month after closing I received offers from the two top home improvement stores, took them as I did need (& want) to do some repairs & remodeling. A couple more great rate offers for credit cards that I accepted intending NOT to use and reserve for emergency vehicle repairs if they arose. It didn’t take long for insanity to take over, perhaps from so many years of not having or being able to buy that all of them was maxed out. My credit score has dropped over 100 points due to high balances & debt to income ratio. Now I need to trade in my truck which is in need of repairs I can’t afford due to all my “new” bills & is now over 15000 miles, still owe more than its worth & lenders won’t touch me. I was old enough to know better & now in the position that just making payments, a little food & necessities are all I can afford. I still have a 100% on time payment record but it is just minimum payments I can make. Absolutely NO money to do things like take my kids to the movies or bowling and never an unnecessary trip anywhere to conserve gasoline. This is no way to actually live and has caused me intense stress every single day. I am seriously considering bankruptcy at this time and only keep my home and upside down vehicle so I can keep it maintained & on the road.

    • Hi Michelle,

      It’s amazing how even people with a history of financial responsibility like yourself can suddenly find themselves deep in debt. I’m sorry to hear that you have found yourself in this situation, but remember that you can get yourself out. Options like debt settlement and bankruptcy are there to help people start over with a clean slate and build a stable financial future. Not knowing all the details of your situation, I can’t advise you as to which options are best for you, but I can tell you that there is a light at the end of a tunnel.

      It may be time to sell your home and move into something smaller and more affordable, or possibly take up a second job so that you can put the extra income toward paying more than the minimum amount due on your credit cards. Many of our readers have paid off their debt without having to declare bankruptcy through a lot of hard work and dedication, so remember that all is not lost.

      Abbey

  • The first time I heard the snowball method was when I listened to John Commuta’s “Transforming Debt into Wealth” program. It’s a great idea and it works!

    Good luck everyone, I have been steadily paying off my debt for three years now. I’m so close to being debt free it’s unbelievable.

  • I would like to mention one thing that the woman forgot to mention with her previous plan. When paying off the small debts, it eliminates the worry of the creditor calling her for the payment. Peace of mind has a price to it. I would pay off my smaller debts, but I would be careful not to charge them again. Next I would pay off the account with the smallest balance and go up the chain until I was out of debt. Having that peace of mind can create new energy that helps one tackle larger problems. Just my opinion.

    Yours kindly,
    Carol

    • Hi Carol,

      You make a good point – peace of mind may be more valuable than saving a little bit more on your monthly payments. How far along are you on your journey to being debt-free?

      Abbey

  • IMHO:
    actually paying off the highest interest account first only works if by “highest interest” you mean the actual monthly interest.

    one should pay down the highest actual monthly payment account until another monthly interest payment is the greater and then pay new account down trying to balance the payments so all accounts have the same actual monthly interest payment.

    often accounts have a minimum payment due so keep that in mind regarding total monthly payments.

    using a program such as Quicken will allow one to easily recalculate the actual desired monthly payments.

    • Hi Dennis,

      Thanks for sharing. It sounds like you use a combination of the snowball and avalanche methods. Did you have to go through some trial and error to find the plan that worked for you, or did you find that it made sense from the get go? Have you used other software or online banking services to track your payments?

      Abbey

  • I just read Ms. Burns story which I would like more clarity. I am on the snowball plan now and its working out great. One thing is you have to cut up the credit cards, you can’t continue to create debt whild trying to get outof debt. I am now paying off a $90k mortgage making almost double payments and I am not creating new debts and have a fully funded savings, maybe Ms. Burns need to invest in the “Dave Ramsey” program.

    • Hi Tuwana,

      That’s great that you are having so much success getting out of debt. I know it’s incredibly hard to commit to making the change, and I applaud your efforts.

      Yes, the “debt snowball” method is also very popular and has helped a lot of people get out of debt as well. It really depends on what type of debt you have, and how high the interest rates are. In some cases, like the one in this article, the smartest choice is to knock out the highest interest debts first in order to really make a dent.

      Has anyone else found success using the “debt avalanche” method, or is “debt snowball” the way to go?

      Abbey

  • Great News! I used your ‘advise’ on validation letters and got a 4699.00 debt removed from my credit. They did say that the OC may still report but I will deal with them later. My ques. is this: I had a CC, fell behind on pmts, lost it, they sent settlement of 457, i counter offered and paid 100.00 w/ PIF on the check. They still call. Recently I sent a letter stating that this is paid according to the “Accord & Satisfaction” rule and i am guessing they are still saying no because they still call. I have not spoken with them so how should I handle them?

    • Hi Kendra,

      Did you both (you and the collection agency) agree in writing that the $100 would settle the account? If not, they may still be calling because they do not consider the matter finished. If you have any documentation that you agreed to settle the debt for that amount, send them a copy via certified mail return receipt.

      Abbbey

  • Hi. I fell on hard times and got 2 loan modifications on 2 of my 3 properties already and am applying for a 3rd . I also have several large credit cards I am unable to pay down. What can I do?

    • Hi Pam,

      If you know in advance that you will be unable to pay your creditors, you should notify them immediately. Taking a good hard look at your expenses and figuring exactly what you can and cannot pay will give you a better idea of what steps you should take next. You may need to eliminate any expenses that aren’t necessary and put all of your available funds toward paying your most important debts (for example, cutting out cable so that you can put that money towards keeping your mortgage payments current).

      Sometimes you have to make the tough decision to sell properties that you can no longer afford. A short-term drastic reduction in your expenses can free up more of your money to pay down your debts and get back in the black.

      Abbey

  • I’m in the process of filing bk really needed a fresh start I was foolish with my credit allowing others to make purchases with my name but they never paid me back . Boy did I learn my lesson! My questions are : how many secured cards should I get? Should I do a secured loan through my credit union along with getting the secured card for credit mix? How much of the secured card should I use %10 %20 or %25? I know to make payments on time, but should I leave a small balance ?

    • Hi K,

      With secured credit cards, you should always pay off the full balance every month. You are trying to show creditors that you are able to use credit responsibly, so you want to avoid racking up more debt. As with any credit card, you want to keep your balance below 30% to maintain a good credit utilization ratio.

      You may want to start with just one card and make it your goal to have it switched to an unsecured credit card after a few months by paying in full and on time. Rebuilding your credit may take some time, but it is well worth the hard work.

      Abbey

  • I need help…The only thing that is hurting my credit score right now is late payment posted for a school loan….I was late three times….So I am wondering if there is anything…..

    Thanks Carla

  • Abbey B.

    Hi. i have two late payments of 30 days in June of 2011 ( the only flaws ever on my credit report ) and i am taking your advice and writing Goodwill letters to hopefully have them both removed from my Credit Report. I have a 750 Credit Score now, but i want to be at my best possible position when i apply for a loan to build my new home. Just to be sure though, do i send the Goodwill Letters addressed to the Credit Card Banks, or do i send them individually to each Experian, Equifax, and Trans Union.

    Thanks ,
    Rob

    • Hi Rob,

      You want to send the letters to whomever you are asking to remove the late charges. It seems like in your case you will asking your bank to remove the late charges.

      Let us know how it goes, and good luck!

      Abbey

  • Hello,
    My husband and I are trying to buy a house. Our credit score is a 500 but we are trying to figure out ways we can bring it up. What would you suggest. Im a bit confused because we talked to lexington law and the man said that even if we pay off items it might not bring our score up. Most of our debt is $200 and below and we were just going to pay it off but now I dont know if that is the right thing to do. We are so lost but we really want to buy a house. We really need suggestions.

    • Hi Shay,

      Every case is different, so I can’t guarantee that the advice you received is good or not without having access to all of your credit reports and financial information. However, in general, if you are able to pay off your debts, it is usually a good idea to do so. You can use some tactics to raise your score once your debts are paid, because then you have a history of being in good standing to prove to potential lenders that you will use credit wisely in the future.

      Let us know what you decide to do!

      Abbey

  • Hi there,

    I am wondering how to quickly improve my score. I have copies of all three and see some things I would like to dispute. But I also have two credit cards very near their credit limits. Do you recommend a secured card in this situation to help score? I’d like to get a balance transfer to lower the limits, but don’t think I can find a decent card til my score improves.

    • Hi Lorena,

      Secured cards are a good option once you have your other debt under control and are able to focus on rebuilding your credit. You can dispute items on your report if you feel they are in error, but you likely won’t see a huge improvement in your credit score until you are able to pay down the balances. If you are able to cut your spending and put more money towards paying down your current credit card debt, I recommend doing so as soon as possible.

      Abbey

  • I am getting divorced and going back to my maiden name. what or how is the easiest way to change my name on my credit with all 3 credit repositories?? Thanks for help in advance

    • Hi Susan,

      As far as legally changing your name, the requirements vary for each state, so you should check your state’s government website to find out the exact process.

      Once you have completed the name change process, you should notify the three credit bureaus in writing, letting them know that you have changed your name and list all of your current information (social security number, address, etc.) as well as a copy of documentation showing your legal name change. Make sure to send this letter as signature required, so that you have a record that they have received it.

      You can find the credit bureau addresses here: https://thecreditsolutionprogram.com/staging/credit-bureau-addresses/

      Abbey

  • I made tons of ridiculous purchases when I was younger with no understanding of how credit cards worked. I was not taught how to deal with my finances responsibly therefore I am suffering now decades later due to those mistakes. I have never had a high paying job which would enable me to pay off those old debts. I firmly believe children and young adults need to be properly taught how to handle their finances so they can understand how their choices will affect their future. Being nagged at by parents to “save your money” does not help and neither does having siblings constantly steal your money. I have learned a tough lesson and am trying to climb out of the hole I’m in. I look forward to the day when I can purchase the program so I can help myself and maybe even be able to guide others out of their financial nightmare.
    I have a question about getting my credit score: is it really safe to get it online?

    • Hi C,

      It’s very unfortunate that teaching personal finance is not a priority for schools, or many families. As far as getting your credit scores online, it is safe as long as you are using a reputable company like gofreecredit.com. You can also get a free copy of your credit report once every 12 months from http://www.annualcreditreport.com.

      What is the first step that you are planning to take to get your finances back on track?

      Abbey

  • I had a $500 secured credit card from Bank of America and about 1 year and 8 months later, no request, no expectation, I received a letter stating that my new card is unsecured at $2500.00 and that they would return my $500.00; they did.
    I also have a $1000.00 secured Cap one, 2 years, no increase, no hope, but I don’t want to close it because I feel it will lower my score.
    I did get a $500, unsecured from cap one and a $1800 Discover in the interim., so I am definitely thankful for the secure cards establishing my credit.

    • Hi There,

      Thanks so much for sharing your story. How much improvement have you seen in your credit score since using the secured credit cards to build your credit?

      Abbey

  • Love the information but why didn’t you talk about FHA loans ? Which are loans for bad credit and as little as 4% down and you still get a low interest rate. Or a first buyers program does the same thing.

    • Hi Jeffrey,

      You’re right, there are many options for first-time home buyers who may not have the best credit. The right option may be different for each person, but with some research and patience many people find the option that is right for them.

      We actually wrote about buying a home with bad credit, if you’re interested you can read about it here. https://thecreditsolutionprogram.com/staging/can-you-get-a-home-loan-with-bad-credit/

      Are you a home owner? Can you tell us a little about your experience?

      Abbey

    • There’s a first time buyers program at most banks
      Keep calling banks til you find one that has it
      Very little money is needed

      FHA has a fee I can’t live
      With. The government never does you any favors

    • Hi Deborah,

      You’re welcome, and thank you for reaching out!

      Are you planning on buying a home soon? Can you tell us a little bit about your experience?

      Abbey

  • I have a question not a comment. I want to know how I go about getting things off my credit report tat are 7 years old or older like 12 to 15 years old?

  • After 30 years saving, lost almost all, and my credit score has fallen from 820 to 690s. The good: Sam’s Club had a special (3 days only) where I could get an iPad over 2 years with 0% interest. It’s taking time but worth it because monthly payments are low and NO interest. Because I can no longer afford to buy any extras, this has been a wonderful help to me–am writing you using my iPad. The bad: I have not done the homework to try to raise my credit score–except slowly and surely pay off debt. Have just felt I could not tackle dealing with it.
    Thank you for your regular e-mail ideas–because I’m in my early 70s, a high percentage of your suggestions I already use. But it’s helpful to keep adding new concepts to eventually pay off my debt. If this keeps up, I may even be able to purchase your Credit Solution Program someday! Thank you for what seems to be a company with a sense of responsibility and helpfulness, not just in business because of greed.

    • Hi Lyndell,

      Glad to hear that you find the information so helpful. The hardest part of raising your credit score is usually taking the first step. It can be overwhelming, but a good place to start is getting a copy of your credit report and going through it with a fine tooth comb to see exactly where you need improvement. You can get a copy of your report from wwww.gofreecredit.com.

      This article has some great information and ideas about raising your credit score: https://thecreditsolutionprogram.com/staging/5-surprising-ways-to-help-your-credit-score/.

      Good luck, and please check back in to let us know how you continue to tackle your credit score issues.

      Abbey

  • Hi Mike
    okay so I’ve recieved your emails and all, and I would love to get started improving my credit score, but I’m a little afraid and don’t really know where to begin or how to even take the first step.

    • Hi Paula,

      Starting the process of improving your credit can be overwhelming, but if you take it one step at a time you will be able to accomplish your goal. The first step I would recommend is getting a copy of your credit report (from a site like http://www.gofreecredit.com) so that you can understand exactly what you’re dealing with.

      If you need some structure and guidance, you may be interested in The Credit Solution Program that Mike created to help others after dealing with his own personal finance issues. You can find out more about that here: https://thecreditsolutionprogram.com/staging/.

      Give yourself a pat on the back for taking the hardest step, which is deciding to take action to improve your credit score. Please check back in to let us know how it goes!

      Abbey

    • Paula, I have just started the same thing and trust me be careful applying for even the secured cards some will turn you down as well and don’t report to all 3 bureaus or even one not to mention the fees. I found Open Sky credit card sent 200 and my score went up 70 points first month. Fee is only 29 yr. Couldn’t believe it but this is the way to go. I just made first payment but don’t go over 30% of your credit limit. This is a good secured card and can even pay pymt online some wont let you as they hope you will be late. Good Luck the website for them is openskycc.com

  • Hi Mike,

    Thanks so much for the good advice. I was wondering how to properly use a secured card to improve my score. I found a local bank that gives a secured card for $300 minimum deposit and the only fee is $25 yearly. I know you said to pay your balance to less than 30% but I don’t know really how to get started .

    • Hi Dawn,

      You will want to use secured credit cards as a way to start building a good credit history. Basically, you want to start showing that creditors that you can use credit responsibly and make payments on time. Yes, as a general rule with any credit you want to keep your balance below 30% of total amount of credit you are allowed (so in your case, if the credit limit on the card is $200, you want to keep your balance below $66).

      For secured credit cards, it is especially important to pay off the full balance every month. Remember, you are building an historical record of good payments to show creditors that you can pay your bills on time and in full. This way they will be more likely to give you unsecured credit in the future. You can find more about the pros and cons of secured credit cards here: https://thecreditsolutionprogram.com/staging/advantages-and-drawbacks-of-secured-credit-card/

      Abbey

  • I had a repo from 2011, recently the debt was sold to a third party collector. Now it shows twice on my credit reports. Is that legal? What if any sort of recourse do I have?

    Thanks in advance

    • Hi Rachelle,

      When an account goes into collections, it can show up twice on your credit report. The first item is the original debt, and the second item is the new collection account. However, this is not viewed as two separate debts but as a continuation of the original debt. The original debt should reflect that it has been sold to a collection agency (indicated as charged off, transferred, or sold) to show that the original account is closed and the new account is with collections.

      You can find out more about collections accounts and how to deal with them here: https://thecreditsolutionprogram.com/staging/collection-accounts/

      Abbey

  • The statement made by Abbey B to Diane states “whereas for other people it is important to keep a balance on their credit cards to build a credit history and raise their scores.” Other places on the credit solution program pages say that paying off your balances each month is best. Is it better, for credit score improvement, to pay off balances compeltely at the end of each month or to carry a balance each month?

    • Hi Callum,

      To clarify, you will want to have activity on your credit card to build a credit history (show creditors that you can use credit responsively by having a record of timely payments), but you will want to keep the balance no larger than 30% of the total credit limit.

      Paying off the total amount every month will ensure that you do not incur interest or get behind in payments.

      Abbey

  • I also heard that even after 7 years a creditor will sell your debt to another collector this starting time clock all over again.

    • Hi Analia,

      Collections items generally remain on your report 7 years from the date that they reported delinquent to the credit bureaus (7 years + 180 days after the payment was due). This should not be “restarted” just because your creditors sold your debt to a different company.

      Abbey

  • Now, I read somewhere you explained how to pay on your credit card to improve your score. Example, I just received a secured credit card. How much should I charge of the 200 limit and should I pay it off in full at end of month or not. Also it already has a 29 fee charged on it does that count as a charge? Any help would be appreciated. I though it said never charge over 30 percent and pay off in full at end of month. Is that true or not. Then I read only 9%

    Thanks
    mhp.lisa@gmail.com

  • We live in Minnesota and SOL on card debt is 6 years, so will it come off the report in 6 years? Also, what IS the determining factor that determines WHAT day an account should come off?
    Thank you for clarification.
    Cindie

    • Hi Cindie,

      Unfortunately, SOLs only limit the amount of time that the creditor is allowed to take you to court to reclaim the debt. Even if an SOL has run out on your debt, you are still on the hook to pay it.

      In general, negative items will remain on your credit report for 7 years after they became delinquent or were sent to collections.

      Here is some more information about handling accounts that have been sent to collections: https://thecreditsolutionprogram.com/staging/collection-accounts/.

      Abbey

  • Can you improve your score after you have delinquent payments but have paid them or are you stuck for 7 years?

    • Hi Shelby,

      You can definitely do things to improve your credit score after being dinged for late payments. Depending on how many late payments you have (and how many days late they were), you may want to try sending what is known as a Goodwill Letter, basically politely asking your creditor to remove the item: https://thecreditsolutionprogram.com/staging/educational-videos/goodwill-sample-letters/.

      You can also start building good credit by opening new credit accounts and paying the full balances on time every month, or using secured credit cards to get you started (https://thecreditsolutionprogram.com/staging/using-credit-cards-to-boost-your-credit-score). The goal is to demonstrate that even though you made mistakes in the past, you are now using credit responsibly and be expected to continue doing do in the future.

      It may take some time, but will be well worth the effort.

      Abbey

    • Again the question is old but this can help others.

      Not only can you do thing to improve your credit score but OTHERS CAN ALSO HELP YOU IMPROVE IT.

      If you have a close relative or friend with credit that is very good or better let me ask you is they would add you as an authorized user on one of their credit card accounts? If they will, even if they keep your credit card, just being on their account will increase your credit score within a months time. The KEY TO THIS WORKING IS the person putting you on their account as authorized to use their credit MUST be and remain in very good or better credit standing.

  • Thanks for great content . I read your blogs as soon as they come out. I am recovering from bankrupcy and find your advice on this subject very helpful. Keep up the great work.

    • Hi Teresa,

      Thanks for letting us know! Can you share some of your experiences with your bankruptcy that may be helpful to our other readers?

      Abbey

  • I am continually amazed at the lack of knowledge that “experts” have regarding inquires. It is really misunderstood. True, an inquiry will not lower your score that much, even several. However, lenders look at it differently. They count the number and will decline you for a loan for “too many inquiries”. I have been rejected for one inquiry in the previous 6 months, even though my score, as they reported to me, was 748. You can’t control this, and it it difficult to control inquiries, since the credit bureaus do such a terrible job. The fact is, I do not believe, under the FCRA, that inquiries can even be reported, except to the consumer. I presently have 2 lawsuits in Fed. Court to address this issue. May not win, but so far the credit bureaus don’t have an answer.

    • Hi Larry,

      Sounds like you have a lot of experience with dealing with credit bureaus. Thanks for sharing your story, and please let us know how your efforts with this issue turn out.

      Abbey

  • I am a little confused. I know negative things stay on your report 8 years. How do the statue of limitation come on to get things off of your credit? I live in Texas and the statue of limitation is 4 years for collection accounts and repos. How do I make both of them work for me?

    • Hi Renay,

      Statutes of Limitation (SOLs) limit the amount of time a creditor or collection agency has to file a lawsuit against you for an unpaid debt. So, if the SOL has lapsed, it just means that they can’t drag you into court. You are still on the hook for the debt if you have not paid it, and the creditors are still allowed to pursue getting you to pay it.

      You can learn more about dealing with accounts that have gone to collections in Mike’s video here: https://thecreditsolutionprogram.com/staging/collection-accounts/.

      Good luck!

      Abbey

  • I just read in Mikes Lesson 11 credit card myths that could hurt your credit score,that when you check your credit score,you should do it at least once a year. It also said that when you do check it you should be doing so for errors and if there is anything on there older than (7) seven years you should have those removed.
    My question is. How do you go about having those items removed? I have things on my credit report that are ten years old or older. I wanted to get financed for some kitchen appliances and was turned down.A year ago I did get my car financed tho they just wanted a little higher down payment because my credit isn’t perfect but it was fairly good with a score of 735.
    So if you could please explain to me how I get the 10 year plus items removed from my report it would be much appreciated.

    • Hi Marie,

      First of all, congratulations on your great credit score, it sounds like it took some time and hard work for you to get it an impressive 735.

      There are a few legitimate reasons that this item may still be appearing on your credit report. Keep in mind that some things, like tax liens, can stay on your report indefinitely. In general, most negative items remain on your report for 7 years, however that 7 years is can be calculated from the date that the first late payment took place or the date that the account went into collections, not the date that the account was opened.

      If you feel that this item is still appearing on your report in error, you can try using a tactic that Mike explains here: https://thecreditsolutionprogram.com/staging/educational-videos/disputing-errors/.

      Good luck, and please let us know how it goes with getting this item removed!

      Abbey

    • Just call the credit bureaus and explain the situation and ask to have the erroneous items removed. I went through this a few years back to get a closed credit account removed from my report. I had formerly been an authorized user of this relative’s account but their credit tanked and pulled me down with them by association. Even after I had my name removed, it was still showing on my report. So I called them to request this account be removed from my credit reports as I was no longer associated with it, and within about a month I received confirmation letters and an updated credit report showing that the item was removed (and subsequently, my credit score improved). Make sure to get a written confirmation of your request and make note of everyone you speak to to process the request. Good luck!

      • Hi Lotus,

        Thanks so much for sharing your story. It just goes to show that you can make mistakes that lower your score, but the damage does not have to be permanent.

        Did you do anything else to help raise your score that you can share with us?

        Abbey

  • Hello, I am wondering if a debt consolidation loan is a good or bad decision to make? My family has come into some hard times and started using our credit cards more and more to get by. So we were going to start looking into a debt consolidation loan so that we can pay everything off and just put that money into paying 1 loan instead of multiple. Will this be a good idea or not? Thank you.

    • Hi Christa,

      Getting a debt consolidation loan is a good choice for some people, and a bad choice for others. If you are a good candidate and you understand the process, you can save money and have the convenience of only making one payment every month. You will need to do your homework before you make a decision–you can start with this helpful article: https://thecreditsolutionprogram.com/staging/some-ways-to-consolidate-debt/

      Make sure you check back in to let us know what you decide to do!

      Abbey

  • This story I know all too well. Purchased my motorcycle on a credit card, at a time where I couldn’t even afford the deposit. Yeah- let’s talk about interests. Lesson learned. Never again.

    • Hi There,

      Thanks for sharing–I think we all can relate to learning financial lessons the hard way. Credit cards can be very useful but only if they’re used in the right ways. Are there any other lessons that you have learned that you would like to share?

      Abbey

  • I read where it’s best to keep a balance of 30% on credit cards. How can you keep a balance of 30% if you pay them off every month. Am I misunderstanding something?

    • Hi Diane,

      I believe you are talking about your credit utilization ratio. This is one of the factors that is used to calculate your overall credit score, and is determined by the balance on your card in relation to the total amount of credit available to you. You ideally want to keep your credit card balance at no more than 30% of the total amount of credit available on the card. So, for example, if you have a credit card with a limit of $3000, you would want your credit card balance to be no higher than $1000. You can learn more here: https://thecreditsolutionprogram.com/staging/how-to-improve-your-credit-score-utilization-ratio/.

      If you are trying to pay off your debt, then maintaining a balance on your credit card may not be the best option for you. It really depends on what your priority is based on your financial health–for some people it is important to bring their balances down to eliminate debt, whereas for other people it is important to keep a balance on their credit cards to build a credit history and raise their scores. You will need to decide which strategy is best for you based on your situation.

      Abbey

  • Sorry, but, just to add to my post

    The two Credit card Companies that reported the thirty day late payments to the Credit Bureau’s, those two cards are paid in full and i have checked all three Credit Scores ( ranging from 750 to 785 ). People tell me not to worry about the two negative reports, but i’m a perfectionist and those two late payments are the only thing that i have ever paid late. Love your website.

    Sincerely, Rob

    • Hi Rob,

      Thanks for reaching out, I’m glad that you have found help on our site.

      When it comes to your credit score, there’s is no such thing as being too much of a perfectionist–in fact, the more detail oriented you are, the better.

      Since you only have the two late payments on your report, you may want to try sending a Goodwill Letter to each creditor asking them to remove the items. Mike explains this process in detail here: https://thecreditsolutionprogram.com/staging/educational-videos/goodwill-sample-letters/.

      Hope that helps!

      Abbey

  • Hi. In 2009 i lost my job ( company closed their doors and moved out of the country ), i was unemployed and trying to find the right job for almost two years. Long story short, my unemployment was coming to an end and i had to choose between filing Bankruptcy or continue to use my savings to pay the Creditors and after about forty five days, i decided to stay in good faith with my creditors and pay my credit debts. But, after speaking with my creditors to establish making timely payments again, two of the six Creditors reported to the Bureau that i did indeed have two, thirty day late payments. That was June of 2011.

    Question. Is there anything that i can do with these two Creditors to have the late payments deleted from my Credit Report. I called them , but they were not interested in removing the the two late payments. I have researched, and i have read that the Credit card Companies can indeed remove them, but they tell me that it’s out of their hands at this point, being that a twenty four month grace period has come and gone.

    Sincerely appreciate your time and advice.
    Thx, Rod

    • Hi Rod,

      I’m sorry that you have been struggling with unemployment. Paying bills on time can be hard enough when you are working, so I can imagine it was very stressful trying to keep up with payments while you were in between jobs.

      Since it sounds like you have been in good standing with your accounts aside from the two 30 day late payments, you may be successful in having them removed from your credit report by writing them Goodwill Letters. Mike explains that process in more detail here: https://thecreditsolutionprogram.com/staging/educational-videos/goodwill-sample-letters/.

      You may have to make more than one attempt at this, but if you are successful it is well worth all of the work. Check back in and let us know how it goes, and good luck!

      Abbey

  • I’m told that if you pay themn off its worse than if you have a balance with on time payments…is this true?

    • Hi Scott,

      The answer to this question can be pretty tricky–there is no way to know exactly how your credit score is calculated, because the credit bureaus keep that proprietary information to themselves. What we do know is that they use 5 general factors to calculate your score, and each factor has a different impact on your overall score. Find out more about how your score is calculated here: https://thecreditsolutionprogram.com/staging/what-are-credit-scores/.

      If your account is in good standing, it may make sense to keep the account open to build your credit history and have a record that you are a responsible spender. Since everyone’s personal finances are different, you will have to decide which option is the best for you.

      Abbey

  • I just received my income tax check back,and was wondering, if out of two credit cards I have, if I paid off, and canceled one~would that help my credit score?

    • Hi Ruth,

      Believe it or not, it may be more beneficial for you to leave both credit accounts open, even if you pay one off in full. One of the factors that is used to calculate your credit score is the age of your accounts–the older the account, the better. So, even if you pay off the entire balance on your credit card, you should still leave the account open to continue to build your credit.

      The good news is that paying down or paying off your credit cards will positively affect your credit score, so by all means pay off what you can. If you continue to do this great of a job handling your finances, your score will continue to go up.

      Abbey

  • I’ve been successful over the past few yrs. getting my credit score up. But over the past two months, due to varied reasons, one been loss of husband’s job, 3 credit card payments were late. I have caught up and this next cycle bills will be paid on time. How or can I repair the damage?

    Thanks!

    • Hi Gail,

      Sorry to hear that you have had some difficulty in the last few months. It’s great that you are already back on track, and thinking about how to keep your credit score going up.

      First, you will want to verify that these late payments are actually showing up your credit report. If they are not showing up, then they are not hurting your score. If they are showing up, you may benefit from contacting your creditor with what is called a Goodwill Letter, basically asking them to cut you a break for making a one-time mistake.

      You can find out more about how to use Goodwill Letters by watching this video: https://thecreditsolutionprogram.com/staging/educational-videos/goodwill-sample-letters/.

      Good luck, and please check back to let us know how it goes!

      Abbey

  • I do not have what is called “Revolving credit. I pay my bills with cash. The bank told me I needed to get a secured credit card. I did get one with four hundred dollars. This was a year ago and my credit is still the same..

    What ideas would you suggest for improving my credit score???

    Thank you for your time
    Mary

  • I use my credit union DEBIT card to pay almost everything–more convenient than writing checks, carrying cash, etc. I also have a credit union CREDIT card, plus a number of other credit cards. Question is–I hope it’s okay to use debit card–helps keep me out of debt–but does it affect my credit score? Should I be using my credit card(s) instead? I hope not.

    • Hi Lyndell,

      Using your debit card is a great way to stay out of debt because the money is immediately taken out of your bank account. You aren’t racking up charges that you have to pay at the end of the month, or being charged interest on balances that you haven’t paid in full. The downside is that when you use your debit card, you are not building up a credit history or raising your credit score.

      If you have a good handle on your monthly budget and don’t feel that you are at risk to overspend, you may want to start using your credit card for some purchases. Just make sure you are carefully keeping track of your credit card spending so you don’t get into trouble with racking up charges that you can’t afford.

      Abbey

  • I am paying off ALL of my debt. … After pulling my credit report and seeing how little I actually owe I’m ashamed for waiting years to become free of this burden. I’ve since been making ALL payments before time or on time in hopes of getting a credit score high enough to purchase my first home! Thank you for the tips -I’m putting them to good use!!!! #sofocused

  • I don’t understand why home mortgages and auto loans don’t show on credit reports. I paid my mortgage 5 years early and never late. The same with auto loans.
    Is there a reason for this?

    • Hi Shirley,

      It is strange that you are not seeing these items listed on your credit report, but lenders are not actually required by law to report mortgages or auto loans. You also may want to check that you have reports from all three credit bureaus, because your lender may have reported to one and not the other two.

      Unfortunately there is not much you can do to add these items to your report, but if you compile all of your annual credit reports and statements that show your that you are current with your mortgage payment, you can present these to a lender and have a better chance of getting the best rate.

      Hope this helps!

      Abbey

  • We pay our regular bills, mortgage’s, and credit cards ontime, but what if you have Medical bills in collections. When your able to now start paying on them, I was told by a mortgage lender that I should ask the collection office to send me a letter saying if I pay the bill off in full(without any discounts) that they will not send a bad report to the credit bureau. Is this true? What can we do about something like this?

    Shari

  • Last fall I paid off and closed 2 credit cards. I had an excellent record with them but just wanted to downsize the amount of credit cards I had. I have heard conflicting reports about closing crdit cards. Some people say you should close them others say you should pay them off but keep them open. I am confused. Did I do the right thing or not?

  • Haven’t filed taxes yet, but working on them. I have combo of 1099, W2 and LLC $800 tax bill. I’m looking to getting a refund since my W2 helps to off set 1099 tax with write offs. Refund will go to ER MD bill of $397 and toward LLC tax.

    So far have saved $6750 with Projected $550 from one source and $300 from another source. Goal is $21000 for emergency money.

    Have Payment arrangement of $100 ea for a Ambulance and ER bill. Ambulance will be paid off in Aug, and what I paid to this bill will be added to ER bill, plus what I pay to a personal loan; for a total of $400; scheduled to pay off in October

    My personal loan principal of $2520 since June 2013. I’ve paid well over min. And bal down to $787; scheduled to pay off this June.

    My Cap 1 credit card increased $2000 more in credit for keeping bal. between 10-30 percent for 6 months My Goal is $10,000 in credit within the next 24 months.

    I am always looking at ways to make money to pay bills and had to Savings.

    FYI: Taking Trip to UK and Paris in September. Tickets and B&B paid already.

    • Hi There,

      Sounds like you really have all of your ducks in a row! It’s great that you have the extra funds to travel this year, I hope you enjoy every second–you earned it!

      Abbey

  • I paid off 6 cards with mine so far, small amounts, $600 and less, but less debt is less debt! The remainder is going into home improvements and a camping trip for the kids.

    • Hi April,

      I can’t agree with you more when you say “less debt is less debt.” No matter how small, every step you take towards the ultimate goal of being debt-free is important!

      All of your hard work will pay off–please check back in with us to share your successes!

      Abbey

  • I’m a little confused on the car loan repayment. I understand paying on time and more than the minimum, but recently I learned that there’s no big benefit to paying off a car loan early. I was told that once you do pay off the car loan, you don’t have an open account in good standing. And that lowers a credit score. Thoughts?

    • Hi C.P.,

      It helps your credit score to have older, open accounts in good standing. That being said, there are other factors that help your credit score as well. Since everyone’s finances are different, you will have to decide if the best option for you is having your car completely paid off or keeping the loan open for longer to build up your credit history.

      Here is another article that explains the different factors that contribute to your credit score in more detail: https://thecreditsolutionprogram.com/staging/what-are-credit-scores/.

      Abbey

  • I understand the value and importance of paying your bills on time, and that significantly past due items can wind up in collections, affecting your credit. And I understand that late payments on credit cards go on your credit report. But I have never seen an entry on my credit report saying I paid my electric bill a week late in March. I don’t see how paying your bills on time affects your credit score at all, since they do not appear on your credit report, except if you are so behind they go into collections.

    • Hi Tejan,

      Thanks for reaching out. You are right, paying a small electricity bill one week late will probably not have a negative affect on your credit report. However, paying bills on time saves you from paying additional late fees, and of course helps you avoid having your account sent to collections, which WILL end up on your credit report.

      I think the focus here is that it’s important to pay all of your bills on time to develop good financial management skills, and avoid getting further into debt or being overwhelmed by past-due bills. I think one of the keys to improving your credit developing good habits that will ensure you don’t get into trouble.

      Abbey

  • I have had a debit card account with Bank of America since 08. My credit score is under 600, and since my wife passed 5/13 I have been working to repair it. In January I was in B. O. A. branch I don’t normally deal with and they asked me if I wanted to apply for a credit card so I bit even though I had been rejected before. The manager said I qualified for a secured Platinum card, $39.00 annual fee and a $95.00 dollar deposit for a credit line of $500.00. What sold me though was the cash back rewords program. I was already using the debit card for most of my purchases, esp. gas so as I told the manager by using the card I could easily save enough in a year to cover the maintenance fee, something he hadn’t thought of. I have already earned over $15.00 including $3.00 + on a $60.00 dollar Auto Zone purchase through a special promotion they offered. I think the B. O. A. Platinum secured card is a great way to go for any one in my situation.

  • I remember I used to get a 1000/3000 loan and make monthly payments like 30 to 60 per month…is anyone out there that can provide loans payable per month? an a lower interest?

    • Hi Dan,

      I am not familiar with the particular loan that you had before, but I would not recommend using payday loans to help you through a tough financial time. As you read in the article, the interest you accrue on them can quickly get you in trouble. A better strategy would be to try to cut your expenses and build up a small emergency fund for unexpected expenses.

      Abbey

  • Mike

    This more a question than a comment. We would appreciate information form anyone out there with this knowledge.

    We file chapter 13 BK 4 yrs ago. To be completed in 5 years. We make monthly payments to the courts. Never been late. 1. How soon after our 5 year court commit can we rebuild our credit. Also, are our good payment history increase our credit score coming out of BK in one year from now?

    • Hi Ed,

      Good question! A bankruptcy remains on your credit report for 10 years. The credit reporting agencies should remove it from your report then. If they do not remove it, you can request that they do in writing. You can find their addresses here: https://thecreditsolutionprogram.com/staging/credit-bureau-addresses/.

      It’s great that you have never missed a payment, this is an excellent first step on the road to rebuilding your credit. I wish you the best of luck, and hope that you post again to let us know how you progress.

      Abbey

  • I’ve learned a lot from the free credit report videos too, has helped me avoid some serious mistakes. I now have 13 gas, technology, and dept store cards, 1 unsecured Visa, and 1 secured Mastercard that started the whole journey. I keep it open because it’s my oldest account. I plan to keep it open (but not use it) for at least another couple years, until my newer accounts have aged a bit. I did take it out of my wallet to avoid being tempted. It’s in my jewelry box.

    I pay off my cards every month, faithfully. I recently got a chase freedom with no interest for 15 months, plus cash back. I purchased a new laptop and a new bed on it. Since I’m paid yearly in April, I intend to make the min payment (no interest) until April then will pay off the balance in April to avoid any interest. I would never make such a purchase unless I knew for sure I had the money coming in to pay it off before the interest kicked in and starting adding up. I’m lucky, I have friends who have gotten in over their head and I see them struggling to get out … I learned from their mistakes. I am still considering buying the full program, as I would like to continue to improve my score so that I can buy a house someday and get the best possible interest rates.

    • Hi,

      It’s great to hear that you have been able to maintain a great credit score and avoid common problems with debt. It’s unfortunate that many people like your friends have not been as lucky, but the good news is that there are many ways they can improve their credit scores and build a better financial future for themselves one step at a time.

      I recommend sharing these videos with them to get them started: https://thecreditsolutionprogram.com/staging/education/full-video-series/

      Thanks for reaching out, I hope that success stories like yours inspire others to take control of their credit.

      Abbey

  • I currently have student loan debt I have been reading all of your email on how to improve my credit score and it has improved by 50 points, however What is the best way to rremove old student loan debt off your credit report Its been 9 years.

  • I am in this payday loan situation also. What would you suggest for getting out of this debt. What other loans can I apply for to pay these off. (not the best credit) But I need out of these. HELP

    • Hi Lisa,

      I understand how stressful being in debt can be, and I wish there was a magic wand I could wave to make it all go away for you. Because you are having trouble paying off these high interest loans, I would not recommend trying to take out even more loans–this will only increase the amount of people you owe money to, and the additional interest that these new loans will charge you will get you in even more trouble.

      My best advice is to do everything that you can to pay off these payday loans as fast as possible, and not take them out again. You may want to take on a part-time job for a short time to earn extra money, and put that money directly towards paying your payday loans. If you have not already done so, you should cut any extra expenses that you have (like eating out at restaurants or buying new clothes). The sooner you can pay off your payday loans the better. Believe me, the hard work will be more than worth it.

      Abbey

    • The payday loans are indeed a burden, but there is a way out. You will still have to pay tons of interest, but once you are in this situation you have to resolve it. I happened to take one and what I did was paying a fifth of the amount owed every 2 weeks. I did it in 10 weeks. Your finances will be a little tied up but you will feel much better. Next time just shop around for loans that require less perfect credit.

  • I won’t be getting a refund! I owe 2000 dollars but no penalty because I use safe harbor rules! I invested that extra in payment of of old debt and now I’m without any bills.

  • After disputing several erroneous items on my credit report, I raised my score from the low to mid 600s to the mid to high 700s. I increased my credit limit on the only credit card I have and am now working the balance down towards 50% and below. This year, my refund is going towards that credit card to take me closer to my goal of becoming completely debt free. Thank you.

  • I appreciate the information you shared about saving. I unfortunately lost my job last year of 13 years and was making about 36-48 thousand a year. I tried to file my taxes, unfortunately I was told that I now have to pay money back to both Federal and State. The Preparer wanted me to add my youngest daughter back on taxes, she no longer lives with me and is 21 years of age. I ended up depleting my 401K as well as my savings. Currently looking for employment with no luck. Student loans are in default, I lost my house but yet I have my vehicle’s. Credit card debit is past due because I have no income coming in at all, Thankful that the companies are working with me.
    I really appreciate the vital information you and others share. Once again Thank you.

  • I used half to pay off old collections accounts and the other half I put into savings. I plan to save in regular increments in 2014 to be able to buy a house in 2015!

  • my husband and I are tithing, paying down debt, saving for an emergency fund, getting a secured card and investing into staring a business online. We’ve paid off 9,845.07 in 10 months and getting ready to be credit card debt free. Always have a plan for money. Those who fail to plan plan to fail

  • I opened a savings account for my 3 children. I am also working to rebuild my credit so I also paid down my student loan to $300 and set up a payment plan to pay the remaining in increments of $50 each month for the next 6 months. I am also working on paying off some medical collections once my credit dispute process is complete. I also got 2 secured credit cards and put the rest in my savings account.

    • Hi Ty,

      That’s great! Thanks so much for sharing your successes, and I wish you the best of luck in the rest of your journey to improve your credit. Keep sharing your wins!

      Mike

    • Hi Marcos,

      It’s great to hear about you and the many others who are smartly investing their tax refund and making the most of it. Keep checking in to let us know how your investment pays off.

      Mike

  • Even landlords are interested in this – as they want to make sure you can pay your rent without any problems.
    With the trial period, you can assess whether the
    program is working for you or not. But repaying the
    loans availed is quite a different entity.

  • Thanks for all you advice. I have been doing TONS of reaearch, and so far, you are one of the best sources. i had a terrible jaw enjury about five years ago and tje mdical bills are all over my credit. What i have fpund, is even though they effect my score, the fact that i have no credit, other than a vehicle loan. That effecgs me much more. I got three secured cards, paid them off at the end of every month. My score went up one hundred points in a year. I was amazed. The medical bill will fall off, and i have been desputing and working the magic you showed with you videos. The medical bills just are not efeecting me all that much anymore. If i want a good credot card, i can get one. If i want a loan, i can get it. I still have a lot of work to do, but im well on my way. Thank you! And please keep up with the great advice.
    -Nathan

    • Hi Nathan,

      Congratulations! I’m so happy to hear that you have taken control of your finances and successfully raised your credit score. I know from personal experience that doing this takes a lot of commitment, and I salute your focus and hard work. Please keep checking in to let us know of your future successes, and help inspire others who are working toward the same goal.

      Mike

    • Hi Rich,

      Give yourself a pat on the back for starting to take control of your credit. Most people find that the hardest part of this process is getting started, so you have already made a big accomplishment! Keep in touch and let us know how it goes.

      Mike

    • Hi Jennifer,

      I would recommend The Credit Solution Program, which you can learn more about here: https://thecreditsolutionprogram.com/staging/

      I spent months researching and writing about realistic steps you can take to start improving your credit score now, to secure a better financial future for yourself. I have personally dealt with having bad credit, and can tell you that this program works.

      I wish you the best of luck on your journey to having excellent credit, and hope that you check back in and let us know how you are progressing.

      Mike

  • Mike, the card you prefer is asking for a deposit equal to the credit limit ie., $300 + $300 more.., am i understanding that correctly?

    • Yes, you give them the initial deposit of $300 for instance. That gives you a $300 “credit” limit. Then you can use the card just like any other credit card with a limit. Each month you can charge what you need and then pay the balance off at the end of the month. They always hold your $300 for the duration of your time with the card. The deposit will be returned if you cancel the card or if the card is upgraded to an unsecured card.

    • This is really just personal preference. Your credit score will improve no matter what deposit you choose. It’s a matter of convenience – for instance, if you want to be able to purchase an airline ticket that is $600, then you would need a limit of more than $500.

  • With my Kohls charge EVERY time I use it I pay with card go out of the store and write a check to Kohls right that minute. So far one year now and I had never had a balance on that card. I am credit card debt free and owe nothing.

  • Getting a secured credit card through one’s credit union is a GREAT option! Often times the card will roll over to a full credit card after your have proven a good payment history. Also, there are little no fees and the amount secured is actually in your savings account earning interest!

  • Wondering if there is anyway to check somehow. Lets say someone gets a hold of enough of your informmation to apply for credit card to be sent to their house and they usr it but a whole month goes by before a bill comes is there anyway to look up or see somewhere that I have this credit card out there before negative things start happening to my credit?

  • I just filed chapter 7 bankruptcy. How can I re establish my credit card history? What are the best credit card things I should apply to to reestablish my credit history?

    Thank you desiring to start over the right way.

      • Hi Mike I have paid in full my credit card and had it closed at my request, however , i had been late in payment one time only. There fore the creditor continues to report it as negative on my credit report. Finally, I requested from creditor in writing that credit card was paid in full and closed at my request and should state as positive at this time. the creditor send me than a statement stating” paid in full and satisfied” so I could send it to the three CB. I did so, but CB have just updated it and place it as ” costumer” disputed this item”. What else should I do? I really appreciate your effort at this time. Thank you very much!

        • Hi Chris,

          Great job using this tactic to remove negative items from your credit report and increase your score. If successful, this tactic is well worth the time you invest in it.

          Unfortunately, disputing items is not an instantaneous process that immediately removes items from your report. Chances are that the credit bureaus are investigating your dispute and deciding if it is valid before they remove the item from your report or reject your request. If the request is under investigation, there should be an “XB” code next to the disputed item. The good news is that “XB” items are not calculated into your credit score while they are being actively disputed.

          Be patient and keep checking to see if the item is removed. Congratulations on paying this debt in full–keep up the good work!

          Abbey

  • My personal banker advised me to do this when we were looking to get approved for a new home loan and it really works. My score has gone from 550 to 641 in only 4 short months. This along with paying my car payment on time has done well for me. However, I do have a question, in your blog you advise to pay the account down to zero every month.

    I did this the first two months and noticed that my credit report had comments that stated “less than 50% of credit limit being used on more than 1 account”. My banker then told me this was because it looked better if I were to use more than 50% but, no more than 75% of the limit. I have done so since. I add more to it if necessary to keep it at 75% while making the minimum on time. When I did that is when my score jumped the most. I’m not knocking your advice by any means, but I’d like to understand it better. Am I doing right thing or should I follow your advice? I only ask because it’s working for me this way. BTW, your teachings have been very beneficial. I’m learning a lot between your tips and a course on budgeting from my place of employment. Thank you very much for your service.

    • Hi Mario, it’s great to hear that your score is improving. Most bankers know very little about credit scores – your score should improve further if you pay your credit card balance down to less than 30%. High credit utilization makes it appear like you are barely getting by – this is a high risk situation for a lender and credit scores measure risk, higher risk = lower score.

  • The worst thing one could do, I personally have not, is using one credit card to pay off another. It does not matter what the interest rate is on the card, unless you cut up the first one to resist temptation. If it is a lower interest rate, great….cut up the first one and put the second one in a block of ice in your freezer…hands off!!

    If the interest rates are comparable, why use one for the other? Is it because a new card arrived, providing the opportunity for more spending with two credit cards? If so, there is nothing more to say here. That is an addiction; that requires counseling.

    If anyone has such an addiction as extreme shopping habits, spending money on items that are not necessary- causing one financial hardship, and/or spending excessive money causing one’s personal living space to become dangerous to live in…please seek help from family, friends, or even a member of one’s church or a counselor.

    • Thanks for your comment. I think a 0% balance transfer card can be a good idea if you cut up the old card after you transfer your balance – if you don’t get rid of the old card you risk getting into more debt.

  • I have had five items removed from my credit report and my credit score increased by 148 points over the last four months just from the free info. I gleaned from Credit Solution and their free info. reports. boy what do they have for the paying customer!

  • I’ve got some of the best and worst lists.. Worst is the $4000 computer, that was to be used as a work asset and turned out being a gaming system eventually. It took me 3 years to pay it off and cost me over 1500 in interest. The Best was when i got some 0% balance transfer checks that i used to pay off my car loan (at the time it was 19.9% interest as it was my first loan ever), I paid off the car in 1/2 the time with no interest accrued.

  • My dad has continually talked to me about the debt he incurred to build his business and the farm, which was a very large sum of money. today he is about 70 yrs of age and still working at paying off the farm. his advice was to not fall into the trap of borrowing to finance your dreams or I would end up being a slave to the lender for the rest of my life. My parents have excellent credit but very little money. so I pay for the things I need in very short terms, as not to have the compound interest swallow everything I have. however, I believe that I should find some healthy ventures to have my money working for me. That’s what I have taken from my Dad. Thanks for sharing your stories…

  • After losing my business and having a 4.3 million dollar BK, I took 1500 cash went to a credit union and got my first secured Visa Card. It was the only way for me, I knew. To begin the process of rebuilding. That card has turned into several cards two new car loans and the process of buying a new home. That was well over 135 credit points ago, lol and the score continues to climb

  • My Comment is never bite off more than you can chew. It was ten children in our family ,my father mainly worked with the daughters. He explain to us even though we were married never depend on your husbands salary. Get what your check can pay for. Once your home is paid for leave them paid for. As of today I see so many struggling trying to pay for their homes @ the age of 50’s 60’s and so on. Some are even losing their homes by borrowing money and getting the equity out of them. To each is own, But me personally I like my dad’s remedy ” Once you Pay for them leave them paid for.”

  • I love the personal story you shared about your dad. I will allow my son to learn the value of a dollar in the same way. He wants to travel out of state for a youth conference. He needs $450.00. I will draw him up a contract and make him earn his way. Wow dad charged interest too. I guess that`s a good idea so he won’t procrastinate in paying back his debt. Thanks a lot for sharing.

  • I too…learned from my deceased father …much abt how earning & paying for impressive things pay off! Dad had already shopped for my first car for me & had me sitting in front of a “bank manager!” at the age of 15 yrs old! But I paid every red penny on my own…(to that bank manager)…for my hot,fire engine red ’67 Mustang! a few yrs later …i wanted a “new”car…after running the credit check…the auto lot manager…got up and walked over to me & said, Wow… I just want to shake your hand….my daughter works at a bank & don’t even begin to have credit as good as yours!” As my dad sat …listening & watching…was that big ole smile on my dads face because I learned a very valuable lesson so well from him at such an early age??? You betcha it was!!! Thank you for sharing your personal experience…& for the invite to share something personal as well.

  • Well I will tell you about my Dad, My Dad owner of a big Company. When I got out of Hi school I went to work for the company. Well pay day came around and Dad came into the office for me to cash his check. This was back in the fifties. Lets say the check was for 78.85. Well I gave him an even $80.00 . He said the check was for 78.85 , . My answer was (oh don’t worry Dad, the company is yours any way. ( That’s not stealing.) His answer was the check said 78.85 and that is how much YOU have to give me. I have never forgotten that lesson.

  • You may fill you had a hard time. but I never had a father at all I had to do it all by myself. Plus I had three younger siblings?, I may not have always made the right choices and heaven knows they weren’t but I did the best we could

    • What a great story about your dad. My father and mother lived through the depression. So they saved everything. They paid their bills together. My mother wrote out the checks and my father signed them. I can seen them both sitting at the kitchen table drink coffee in white mugs. Talking about their financial situation. They work together as husband and wife.

  • i applied for the first progress mastercard on line at the site you referred but was denied. in an email from them they said it was because my monthly income was insufficient to cover my monthly expenses and card payments. I earn $4800 a month with my monthly expenses being $1500. what is up with that?

  • After my husband was killed i found it impossible to pay the credit card debit. I finally sold a piece of property and was able to paid the agreed amount between the credit card lawyers and a closing attorney. They sent me a tax statement that they forgave an additional $10,000.00 in debt. now it is on my credit. how do i get rid of this? My credit is in the low 500’s. i did a secured credit card, bought a house and a car from the credit union because they new i had the money to pay the debt. My debt ratio is low. Any suggestions?

  • I have a coment about the credit company to pull your credit, it offered the 3 scores, but when I did it they only gave me one score and wanted to charge me 29.95 for each of the other scores. Do you know of another company I could use who would give me all three scores for free. Also my husband used another company for his scores before we found your site, and his score was 645. But when we went to try to get a car they pulled his score and it was a 495, why is that happening, I don’t know why when you check your score with some of these companies and you go into some place like a car dealer your score is drastically different. I wish consumers had some type of recourse for this misinformation.

  • i wanted to use my Va Loan to purchase a home but my husbands credit score was at 520 in October 2012. so i told him to go open up three secured credit cards and we placed $500 on each card. I used them to buy gas($65) ,or to pay our electric bill($100) or pay our cable/internet bill($90). when it was time to make a payment:example i would pay $90 from the $100 that i put on my card. anyhow by january 2012 but husbands credit score is now 655. yeah after the fist month of doing this i pulled his credit score and i was like “ok this really does work”. now the Va can help us purchase out first home. i didnt need to spend any money on a financial adviser i just googled and here we are 2 weeks from closing on our home. it works people just don’t spend too much of the money on the cards. god luck

  • Hello Well Im trying to rebuild my credit I had 2 collections I paid them off Ive never had no credits cards I always paid everything in cas which is a totally mistake.Im trying to buy a home but I have to get my score a little bit more can you please tell me where do I start at nobody will give me a credit card not even a secure one.

    • anyone can get a secured card, just give them the amount of money that, that particular bank requires for a secured card and the proper identtification. ist your own miiney your putting towards the card, so why wold they not give you a secured card, the bank is not at a loss.

      • No, you are wrong not everyone can get a secured card. Trust me many of them will run your report and deny you as well. As stupid as it sounds this is correct. You would think you are putting up the money so why would they deny you. Well they do. And most of the ones that will easily approve anyone they dont report to credit bureaus so be careful. Well, there are a few good ones that report to all 3 bureaus that don’t robe you for all kind do fees and one of them is the opens sky credit card only 29yr fee. I went thru same thing my score was only 518 and after getting card it went up 70 points in first month. I am very satisfied with this one and they do report to all 3.

        • Hi Richard,

          Thanks for sharing–have you done anything else to raise your credit score that you would recommend to others?

          Abbey

    • Marie, try getting a credit in store plan from a jewelry store that advertises credit, they usually report. I used Milestonz Jewelry store. You can also try a furniture store that offers credit. There are usually commercials on t.v. for these companies – jewelers and furniture. You should see progress in 6 months.

  • I have horrible credit right now. I have been using the premier bank credit cards to help get it to a higher score. They were the only ones that would approve me for wo cards with such a low score. They have high interest but until I can get a higher score to where I am getting a card with a lower score. I have also used credit one bank as well. THey both are pretty decent so anyone looking for a card can go to these websites adn apply for one even with a very low score. premierbank.com and creditonebank.com. I hope everyone out there is successful at getting one of these cards so they can start rebuilding their credit.

  • Two years ago I was scammed via an internet advertising under which I invested from my Sears Master Card account, and on my Visa account ( banks: Citi and One in Iowa) when I realized this might be a scam I started to implement a dispute action. The scame provider promissed to award me10,000 dollars within several months, foolishly, I bought it. Now both accounts are in default. I don’t feel a need to correct my credit score which was 789. I’d like your suggestion about reinstituting the disput action. Frankly, I ‘m less than disfatified with the “help” either of these two creditors offered. I have acquired a debit card from my credit union and have been making reguar payments toward a visa card from the cu. I’m now a widdowder living in the same house for over forty years. I was able to have my mortagage adjusted to 2% and have a tax free monthly income of $1,800. I really don’t have a need for credit any longer, but I’d be interested in you comment regarding the feasability of reinstituting the dispute action. The scamer has flown the coop. If I could get it off my record I am in the process of a legimate home bas business, and could make negotiated recompanse to creditirs within eighteen months

  • MINE AND MY WIFE CREDIT SCORE IS SIGNIFICANTLY LOW AND THE MONEY WE GET EVERY MONTH ARE USED ON BILLS. WHAT I WAS THINKING WAS TO PUT SOME MONEY ASIDE FOR A BILL AND THEN APPLY FOR A SECURED CREDIT CARD AND START USING THAT CARD TO PAY THAT BILL EVERY MONTH TO START BUILDING SOME CREDIT. TELL ME IF YOU ALL THINK THAT WILL BE A POSITIVE WAY ON GETTING STARTED?

  • My bank ( Wells Fargo) has been been trying to get me to take a secured card like this. How do I find out if they report to all three bureaus?? Will they tell me or do YOU know?

    • I’m not familiar with secured cards from Wells Fargo. You can ask them, but sometimes it’s hard to find someone that actually knows. I recommend the card that I linked to on this page because I’ve done the work for you.

      • I got a secured wells fargo ($500) and it worked, I used it and I also put an minimum auto pay on it so I would never be late on a payment. It worked great! A year later they refunded my deposit and raised my limit, I believe it is at $2800 now, really cool!
        I also have a monitoring account with Experian.
        The problem I now have is that my score is stagnant. I call and ask why and it will go up 20 -30 points and then go back down for no apparent reason. I have spent hours on the phone with their account advisors and customer service, so on and so forth with no results. I am doing all the right things but to no avail for score improvement. What can I do to make them give me the score I deserve? I look at my report and its green check marks all the way, why isn’t the score going up?

        • Hi Michael,

          That’s awesome! You clearly have been working hard to increase your credit score, and it’s paying off!

          You may want to check your scores with the other two credit reporting bureaus (TransUnion and Equifax), because your score will very likely be different with each one. The other thing to remember is that building credit and increasing your credit score takes time, like building a wall one brick at a time. You are laying the right foundation for an excellent credit score, but it can take several months to start to see the results.

          A good way to continue to raise your score is to understand the factors that the credit reporting companies use to calculate it. You can find out more by reading this post: https://thecreditsolutionprogram.com/staging/what-are-credit-scores/.

          Again, congratulations for all of the excellent work you have done, and please check back in to let us know about your future successes.

          Abbey

      • The card that you recommend is not avaliable in new york,, what other card reports to all three.

        Thanks
        Frank

        • Hi Frank,

          In general, most major credit card companies report to all 3 bureaus. Sometimes smaller, local credit unions do not report to all 3, so your best bet is to check with the individual lenders to find out how they report.

          Abbey

    • We have a Wells Fargo secured card and it works great, they do report to all three agencies and the higher your card value the better, BUT when you use it, like we do to pay bills, be sure to make the payment BEFORE the end of the card’s billing cycle. That’s when they report the card’s balance. If you keep reporting to the agency a 0 balance then that shows great on your score. We actually keep a $5 dollar balance each month as someone who used to help us fix our credit said if the card has a continual 0 balance that the score assumes the card is not used and that brings the score down some. We got the card so we can pay bills when the bills come due then pay the card when we get paid.

      Works Great and Wells Fargo has been a great bank to us so far too, we had three others to compare to.

  • I have a secured card with Capital One. I have had it since November of 2010. I built the deposit up to $1500. I pay it off FAITHFULLY as I use it. Example…If I use it from the 1st-16th, I pay it off on my 16th payday. If I use it from the 16th-1st, I pay it off on my 1st paycheck. I have never been late, I have never gone over the limit. Capital One has NEVER raised my limit on their own. They have told me I COULD raise my limit by making additional deposits, which I refuse to do. I would think after almost 2 years of being an excellent paying customer, they should raise it for me AND return my security deposit. They have also NEVER turned the credit card into an UNSECURED card as promised if I paid on time for a year. NOW I have to say I have been approved for 2 other UNSECURED credit cards, one with Orchard (March 2011 – which has never had a credit limit increase) that I have had since and Credit One Bank (May 2012) but the credit limits are low. $320 and $400 respectfully. Those are paid in full IF I use them as well. So essentially it has helped my credit as well as improved my credit score enough to purchase a new vehicle back in March of 2012. Although on my credit monitoring it says having a low credit limit is a factor that is hurting my score. I am still hopeful that all my good work will eventually pay off. I know as of right now (today) my Vantage Score is a 613. (although I am still not quite sure what VantageScore really means). I am just plucking along with all your great ideas and being patient. It will work itself out in time. I have removed 8 credit inquiries and about 4 paid collection accounts as of date when I first started getting your emails with advice on how to improve your credit so I am very very pleased. Thank you!

    • Hi, I also have both of credit cards you have. With capital one you will have to apply for there UNSECURED. which has rewards program with using it. You get money back everytime you use it.. My credit limit has gone from $500 to $750 with in a year.

    • Also I’ve learned going with a credit union over a regular bank is all around better. You can get a loan where you borrow against your own money. For example I had $500 so I borrowed against it. On your credit report it shows up as just a loan. which builds your credit.

  • This is great information. I’m definetly trying to raise my score back to very good. I will do this for not ony myself but my wife has well. Please keep giving us this invaluable information.

  • I will try and start with a traditional mortgage frist. I think I will have a problem getting a small loan.
    No mortgage wants to make small loan, just as much paper work and less mortgage interest and a higher rate of interest.