Do's and Don't of Credit Repair

Some Do's and Don'ts

1.   Always write your letters to the credit bureaus instead of typing, using your own words.
Remember what we discussed about them thinking that you may have hired a repair company and
place your account under a red flag.
2.   Use your own paper or the dispute forms that come with your credit reports in the mail. Do not use
letterheads.
3.   Do not use legal language.
4.   Do not call the credit bureaus for any reason. Always correspond through mail or online and
document every correspondence.
5.   Don't apply for any type of credit while disputing with the credit bureaus.
6.   Never threaten the credit bureaus, just be patient and don't give up.

Important note before getting started:

Now that we covered the basics of what is involved in credit, it's important to realize that obtaining a
good credit score is not only a process but also a lifestyle.

Everyone, sooner or later, learns the importance of a good credit score. And regardless of what happens in
life, you should try to protect your credit score at all costs. Your credit score is important to maintain a
certain level of comfort in today's society and not be devoured by excessive interest rates, fees, penalties
and down payments.

Every day we see people with nice homes, cars and wonder how they manage it. Do they all make a
ridiculous amount of money? Not in most cases. They just don't have the burden of unnecessary expenses
that are associated with bad credit.
For example, if a person with bad credit purchases an average used car for $10,000 they can end up with a
large down payment and monthly payments of over $300. A person with great credit can own a brand new
BMW for $300 a month with no money down. The same goes for property and everything else.

You must use discipline when it comes to your credit. And that means:

•     Don't use up all your credit just because you have it. Especially with credit cards, keep your
balances low.
•     Only secured debts are good debts (like property). So if you have to purchase consumer goods on
credit, it means you can't afford them. And if you think you can afford them, think if you can
afford to pay over 10 times the purchase amount over time.
•     Don't apply for loans just because you can. Remember that these are the same bills that you spend
your life trying to get out from under.

Average folks understand this concept of available credit and maintain their credit scores in the mid to
high 700's. On the other hand, people that are broke with bad credit stay broke with bad credit, even if
they have a substantial income. And the only difference between the two is knowledge and discipline.