What is the best way to quickly delete negative credit?
by: Ben M. of www.creditforcouples.com
If you’re using the Internet to find ways to repair credit, you could be feeling overwhelmed! Blogs, podcasts, forums, ebooks, makes for a cluttered mess of information.
You need credit repair results - not promises. That’s exactly what I was feeling six months ago before I enrolled in Lexington Law - who deleted 98% of my bad credit and improved my credit score 170+ points. (They did all of this inside of six months).
Managing Your Credit Repair Expectations:
If you have a low credit score or even a mediocre credit score you are right to take action to improve it. It is possible to have negative items deleted from your credit report. Be prepared for a long road of frustration, waiting and sometimes disappointment.
Facing the truth about your financial habits can be painful. Having patience and humility are must have qualities to take on this endeavor.
How to Dispute - and DELETE - negative credit items
The first thing you want to do is dispute the negative item with the three major credit bureaus – Experian, Equifax and Trans Union. You should do this by MAIL - NOT online.
They must receive a response from the creditor who is reporting a delinquency on your credit report. It is your right to ask them to investigate the delinquency and they only have 30 days to do so. Their delay combined with creditor ambivalence is usually why negative credit is deleted for you.
More often than you might think, the credit bureaus do not respond to your request in a timely manner and they are forced by law to remove the derogatory item from your credit report.
Negotiate to delete negative credit
I know, negotiations can be intimidating. However, it is a must if the dispute letter doesn’t get you the results you’re seeking.
If the creditor has proven this is your debt it is time to negotiate. All of your correspondence from this moment on must be in writing. You should also mail the letters via certified mail through the postal service.
Ask the creditor if you repay the debt if they will remove the negative mark on your credit report. If the creditor thinks there is a chance for you to repay the debt they are more likely to work with you on the terms of the repayment.
Debt Negotiation - Advanced
No one is going to delete a validated debt for you unless it’s paid. You can possibly negotiate a lesser sum and you can negotiate a payment plan instead of paying the debt in full. Again, all of these terms should be in writing.
If they won’t play ball, then it’s time to bring out the big guns. You’ll need to use Debt Validation. This is more advanced if done properly. It is like putting the full court press on the collection agency.
Again, it is more advanced than what the guys posting on forums tell you. There are time limits and the letter must be drafted properly. Again, I used the folks over at Lexington Law who forced the collection agency into deleting all my negative credit. Here’s the direct debt validation hotline at Lexington Law: 1-866-246-7311.
Seek help
There is absolutely nothing wrong with asking for help regarding negative credit. In fact, it’s often the most responsible thing to do. – Especially if you have more than one derogatory item affecting your credit score.
By all means, try disputing a few negative items if you like…just watch out that the bureaus don’t “Red Flag” your file. If you get stuck like I did, consider Lexington Law. They helped me get the much needed help I deserved.
February 8th, 2011
Deep in debt? Are you sinking fast with no way out? Have you accepted that there is NO WAY on Earth you’ll ever pay down the debts you have?
If so, you’re thinking: “Should I file bankruptcy or consider debt settlement?” Here’s the low-down on debt settlement versus bankruptcy.
Bankruptcy
Any professional will tell you to make every effort to avoid bankruptcy. A bankruptcy is perhaps the single most damaging item one could have on a credit report and it’s one of the most stressful, emotional experiences a person could go through. – Particularly if you are forced by the court to lose your home.
When you file for Chapter 7 bankruptcy you are asking the court to discharge the debts you owe. In exchange for having your debts discharged, a judge will appoint a bankruptcy trustee to sell your property and distribute proceeds from the sales to your creditors.
Don’t worry - you won’t lose everything - certain personal property items might not be sold or taken. - Including furnishings and retirement accounts…Phew!
Chapter 13 is similar to Chapter 7 bankruptcy in that a judge will discharge your debts but the process by which those debts are discharged is quite different. See differences between Chapter 7 and Chapter 13 Bankruptcy.
In a sense, bankruptcy under Chapter 13 is a debt consolidation. With the help of a court appointed trustee you will work with your creditors to negotiate new terms. This could include negotiating a lower pay off amount or a lower interest rate and sometimes the forgiveness of late fees.
The court determines the disposable income amount you are to pay the trustee each month. Next, the trustee distributes your payment to the creditors. Although this option sounds much better than filing for Chapter 7, keep in mind BANKRUPTCY will still appear on your credit report.
Debt Settlement
Debt Settlement is much like a Chapter 13 bankruptcy. You will negotiate with your creditors for a lower balance and forgiveness of fees. You could pay as little as $0.10 on the dollar for your debt.
You will need a little bit of cash if you go this route. Creditors might deeply slash your debt but only for payment in full. You won’t be offered a payment plan but you will probably be able to negotiate how the creditor reports your account to the credit bureaus.
The biggest reason you should try debt settlement instead of bankruptcy is because it won’t damage your credit nearly as severely as a bankruptcy will.
Whatever you decide, keep in mind that life after bankruptcy or debt settlement could be rough because you’ll have a low credit score. However, credit repair is possible within a few years. With patience and active steps to improve your score, you could be in good shape within 2-3 years.
January 30th, 2011
Chapter 7 and Chapter 13 of the Bankruptcy code are very complicated and each has varying requirements and standards from the other. It’s wise to consult a bankruptcy attorney or credit repair attorney to help you understand the differences but we’ll provide a summary for you here.
Chapter 7 Bankruptcy
When you file for Chapter 7 bankruptcy you are asking the court to discharge the debts you owe.
Discharge means the debts disappear. You don’t have to pay them back.
In exchange for having your debts discharged, a judge will appoint a bankruptcy trustee to sell your property and distribute proceeds from the sales to your creditors. Certain personal property items might not be sold or taken. - Including furnishings and retirement accounts. Chapter 7 bankruptcy should be avoided if possible…duh.
A Chapter 7 bankruptcy will ruin your credit history for at least the next three years or so. Forget about getting a mortgage…even a bad credit home loan will be hard to come by.
Chapter 13 Bankruptcy
Chapter 13 is similar to Chapter 7 bankruptcy in that a judge will discharge your debts but the process by which those debts are discharged is quite different. In a sense, bankruptcy under Chapter 13 is a debt consolidation.
With the help of a court appointed trustee you will work with your creditors to negotiate new terms. This could include negotiating a lower pay off amount or a lower interest rate and sometimes the forgiveness of late fees.
The court determines the disposable income amount you are to pay the trustee each month. Next, the trustee distributes your payment to the creditors.
In other words, the main difference between Chapter 7 and Chapter 13 is whether you pay back certain debts. Under Chapter 13, you pay them back. Chapter 7, you don’t.
Both bankruptcies - whether it is Chapter 7 or 13, leave your credit history a mess. A Chapter 13 bankruptcy just means you’re severely strapped for cash until you exit the bankruptcy program.
A bankruptcy is perhaps the single most damaging item one could have on a credit report and it’s one of the most stressful, emotional experiences a person could go through. – Particularly if you are forced by the court to lose your home. If you must file for bankruptcy be sure to exhaust every possible debt repair and credit repair option available to you first.
January 27th, 2011
First, the good news. Yes. You can get a car loan with a judgment on your credit report…but not from the type of lenders you’re used to dealing with. Here’s how to get a get a car loan with a judgment on your credit history:
Step One: Take a day trip down to the shady part of town…the shadier the better;
Step Two: Ask for the local loan shark;
Step Three: Negotiate your rates with said loan shark, e.g. if you don’t pay, he only breaks one arm.
In all seriousness, having a judgment on your credit report is almost a guarantee that you will struggle to get an automobile loan. Perhaps you missed some student loan payments five or so years ago before you settled in to your career. Maybe you had a medical crisis some time ago? Lenders want to see how you’ve managed your money recently. Nearly everyone has missed a credit card payment at some time in their life. That said, a judgment is one of the worst things to have since creditors can attach that judgment to property - such as a car.
Banks are less willing to get “in bed” with another lender who could attach the judgment to the car.
Here’s an idea: Remove the Judgment and THEN Get the Car
You will need to do some very time consuming and tedious work to possibly get the judgment removed from your credit report but you owe to yourself to try. Removing a credit report judgment is no small task but it can be done.
(Check out this story of a guy who had Lexington Law remove his judgment: www.creditreportjudgement.com.)
To remove the judgment yourself with no help from a pro, start by writing the original creditor and if applicable, the collection agency to validate the debt. It is your right to ask and it is their burden to provide proof of the debt.
Of course, dispute the item with bureaus. Make sure you include the right wording in your credit dispute letter though!
These two avenues are a great start for anybody looking to buy a car but hung up because of a credit report judgment. Best of luck…and remember stay out of the shady parts of town 
January 26th, 2011
Van Ru Credit Corporation Mailing Address:
PO Box1027
Skokie, IL 60076-8027
Van Ru Credit Corporation Phone Number: (888)337-8331
Van Ru Credit Corporation Website: www.vanru.com
January 25th, 2011
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