Your credit report after a divorce may look like it got slaughtered and a divorce can also bring money, debt and property issues.

Divorce not only has an impact on credit, but also on debt, property and of course your stress. If you have gone through or are going through a divorce, I understand how tough it can be. My parents divorced when I was a teenager and I also got divorced myself about 5 years ago. There were no children involved with my divorce which made it easier, but divorces are never fun. I’m now happily married and my wife and I have an amazing 11mo old daughter.

I understand how tough it can be and that is why these lessons are so important:

Lesson #1 Your Divorce Decree does not protect your credit after a divorce

When you are dealing with credit after divorce, you might be surprised that your divorce decree doesn’t protect you like you probably think. Here is a story directly from the FTC of an example that:

Here is the full FTC Credit And Divorce article 

So, there are two main types of credit accounts: individual and joint. If you have an account that is joint with your spouse or ex spouse, it reports on both your credit reports, regardless of what is on the divorce decree or what you 2 have arranged. That is why so many people get damaged credit after a divorce.

Lesson #2 Check your credit report during AND after your divorce

If you are considering, are in the process of or completed a divorce, you will want to access all three credit reports ASAP.

Accessing all three reports is important because some banks and loan companies only report to 1 or 2 of the credit bureaus. What does that mean???

Let me illustrate what this means and why it is so important.
If you access 1 of your credit reports and find that all your accounts on there are individual accounts, then it would seem you are in the clear, right?

But what is there is a loan that you don’t know about or forgot about that reports to one of the other 2 credit bureaus?

You would never know….

Until…

The payments have gone late because of your spouse/ex-spouse and now you have a collector calling your home AND work 20 times a day!

So you can see why it is crucial to access your 3 credit reports and look for any joint accounts.

There is only ONE website that truly offers your free credit report once a year. It is www.annualcreditreport.com There is no membership fee and you do not need to put a credit card in.

Once you have your 3 credit reports, you want to find any accounts that report you being a joint borrower. Once you find them, you want to call the bank and request to have one of you removed. (Who ever is taking the responsibility)

Just so you know, by law the bank or loan place does not have to take one of you off the loan. (taking it from a joint account to an individual account) Many will be happy to do this, but some loans are very particular. Almost all home mortgages will require the individual to refinance the loan and get qualified under only their income, credit score, etc.

Lesson #3 Remove your name from the mortgage loan after the divorce if you are not living there.

Your mortgage should be your first priority. It is vital to not walk away from a divorce with the mortgage in both of your names if possible.

There are 3 main options you have when you have a mortgage with your spouse or ex-spouse:

Option#1: Refinance the house before divorce is done. If one of you is going to live in the house and the other is moving out, refinance the house asap. Credit seems to drop from all the impacts of divorce, so refinance as soon as possible to improve your chances of getting a new mortgage approval. Unfortunately, you can’t just call your mortgage guy to say, “Hey, I’m going through a divorce, can you take me off the mortgage?” The mortgage company will need to get the individual who is staying in the home qualified by themselves and that can be tricky sometimes.

Option #2: Sell the home. Try to sell the house before the divorce, especially if your ex is living in the house during the divorce. Understand that even if you agree to sell the house, but it happens after the divorce is finished, if your spouse misses payments while the house is in the selling period, it could impact your credit very badly.

Option #3: This  is a last resort and it’s to keep the house in both your names. If you have to do this and there is equity in the home, don’t take your name off the title. If you do that, you are removing your ownership of the property so you wouldn’t get any equity if the house is sold. Not only would you remove your ownership and chances of equity, but you’re still on the mortgage for the house. That would mean you lose all equity possibilities but still have the financial and credit ibligation of the mortgage loan!

Whether you are in a divorce or not, I always advise people to get all their loans individually unless they are not qualified for the loan by themselves (like a mortgage). It helps your lendability in several ways.

Lesson #4 You never know what will show up on your credit during a divorce

I have seen something happen to divorced men and women that shocks them and makes them sick.

In some occasions, one spouse will get loans secretly without the other spouse knowing. It is one thing if they do it in their own name, but unfortunately they also get the loan in the other persons name too.

I’m not saying your spouse or ex-spouse has done this, but I have run into this far too many times.

The other person knows their spouse or ex-spouses social security number, birth date and address. Most loan places require a signature, but not all of them do. I’ve seen instances where a spouse has forged their signature to get a loan.

It’s scary and it’s something you have to look out for when you start the divorce process.

It’s another reason, checking all three of your credit reports is so important.

I hope this helps to all of those with credit and divorce issues!

For more great credit tips, fill out your info in the blue box below:

If you want a no frills, get to the point guide to credit repair then keep reading because I’m going to give you a sneak peak preview of my new guide called:

The Credit Repair Doctor’s 8 Simple Steps to Easy Credit Repair.

Weighing in at just over 40 pages, it’s short enough to be read in one sitting (or even the weekend if you want to take it easy) and it guides you step-by-step through the techniques and tools you need to repair your credit.

And it’s only available with the Credit Repair Doctor® kit.

So let’s raise the curtains and get this preview started with Step 1…

Step 1: Access Your Credit Reports and Credit Scores

Most people don’t realize they can get a free credit report from all 3 credit bureaus every year, without a credit card or signing up for a membership.

The website is www.annualcreditreport.com.

In the Credit Repair Doctor® you’ll see a video that shows me accessing my own credit report so you can follow along and access yours at the same time. These videos were created to provide you instructions as if I were personally there with you.

Step 2: Deciphering Your Credit Reports

If you have never seen or rarely review your credit reports, it can be intimidating when you first see them.

What does all this stuff mean? Where do I start?

Don’t worry, these are common questions. This is why I created a video of me reviewing my own credit report. This video lets you “look over my shoulder” while I show you how to easily decipher the different parts of a report and point out things to look for, things you can have deleted.

This video and the 7 others in the credit repair kit were created to make it easy to follow along.

Step 3: Know How Your Credit Scores Are Calculated

The first thing to understand is your credit scores are actually separate from your credit reports.

There are 5 main factors in your credit report and these are calculated together to make up your credit score.

In Step 3, we review these 5 credit scoring factors and show you how to optimized each one of them.

Improving each of these factors will improve your overall credit score.

Step 4: Use The 5 Credit Scoring Factors To Your Advantage

A friend of mine once told me about a high-school writing class he had. The main assignment was due the first class of every month but the teacher also told them they could turn it in up to a week “late” without fear of hurting their grade.

In this step, you’ll learn which bills you can pay late WITHOUT hurting your credit. Yes, it is best to pay everything on time but it can be quite a relief to know you can wait to pay certain bills if you absolutely had too.

You’ll also learn about a simple method that can boost your credit score 100+ points with less than 30 minutes of work.

Some people say this credit repair technique to boost your credit score by 100 points is too sneaky for their tastes.

Maybe it is. But it’s still legal and still works. And it is just one of the many credit fixing tips I give you in the Credit Repair Doctor®

Step 5: Find The Errors on Your Credit Reports

Most people are surprised to hear that 7 out of 10 people’s credit reports have mistakes on them. Mistakes that could prevent them from getting approved for a loan.

What also surprises people is how easy it can be to get an item removed from your credit report for being:

- Incomplete
- Inaccurate
- or simply unverifiable

Which means if the data furnisher or credit bureau can’t prove that you owe the debt (they often do not have the paperwork!), then they HAVE TO DELETE the item OFF your credit report!

Good for you, bad for them. And this step will show you how to find any errors that could be on your credit report.

Step 6: Prepare Yourself For Disputing

Professional athletes and coaches know that preparations before the game starts,  can have a huge impact on how well they perform when it’s gametime.

Same is true when you start disputing errors and items on your credit reports.
No, you won’t need to do drills or study film like the ballplayers do, but in this step, I’ll coach you through a couple simple preparations that can put your disputes ahead of the 90% of people who’s disputes will get flagged as frivolous.

One tip only takes 2 or 3 minutes and it can help ensure your dispute letters are in the top 10%

I also show you an easy way to keep your documentation.

Step 7: Dispute The Errors on Your Credit Reports

Now that you have found the errors in your credit reports and understand the basic process, it is time to dispute those items to get them fixed or deleted!

In this step, we take all the guesswork out of the process by showing you exactly what to say.

This allows you to get it done quickly so you can go on enjoying your life.

The Credit Repair Doctor® comes with dispute letter templates that are customizable and cover a wide range of credit situations.

These templates have been used successfully to:

Delete bankruptcy listings,
Erase late payment reports,
Delete credit inquires, and many more.

Step 8: Maintaining Your New, HARD-EARNED Credit Scores For Life

Now that you have repaired your credit, it’s time to enjoy and maintain it.

In this final step, I give you the do’s and don’ts of maintaining your credit so you can have ever-lasting good credit and the financial lifestyle you deserve.

It’s easier than people realize and it’s all mapped out for you.

This wraps up our preview of the “8 Simple Steps to Easy Credit Repair”

With this guide, you can get started repairing your credit in less than a weekend.

The 8 simple step guide is included with the Credit Repair Doctor®.
The Credit Repair Doctor® was created so you can quickly utilize the techniques revealed and get back to enjoying life. There are several very powerful techniques in the Credit Repair Doctor.

I’ve seen people’s credit scores jump 40, 60 or even 100 points from just one of the main techniques.
They are not difficult to implement and I explain the process for each one.

If you want to get in the drivers seat and take control of your credit, get the Credit Repair Doctor® today.

It comes with a 60 day guarantee, so the risk is off your shoulders.
And, for a limited-time we are offering 3 bonuses absolutely free.

We also offer 2 different payment options for our clients:
3 easy pays of $45, or you can save $7 with a one-time payment of $127.

Take control of your credit, get the Credit Repair Doctor® today!

 Click Here to Purchase The Credit Repair Doctor®

Not ready to purchase?  Want to learn more?
Click here to learn more about the Credit Repair Doctor®

It happens more often than people realize…  Either a merchant charges you more than they were supposed to or you become a victim of Identity Theft

The FBI named Identity Theft the FASTEST growing crime in America. 

Because this has become such a terrible and devastating crime, I wanted to give some tips for how to dispute a credit card charge.

Credit Card Disputes

• Always photo copy both sides of your credit cards and other important items in your wallet/purse.  This way if someone where to steal that info, you would have the phone numbers and account numbers to quickly cancel everything.  This way, you also know exactly which accounts are in your wallet/purse.

• To improve the speed of removing or disputing a charge on your credit card, use their online banking system that all major credit card companies have. 

• This tip may seem simple, but by checking your statement and contacting your credit card company before your statement period closes, can allow you to have the item removed quicker.  If it is a large charge amount, the minimum payment can increase if it is not caught until after the statement period closes.

• When an item you do not recognize or did not authorize shows on your credit card statement, always call the number that is normally provided with the charge details for your credit card dispute.  Do this quickly because it could be the first sign of Identity Theft. You will verify if it was done by you and if it was not, you can ask them to remove it. The Fair Credit Billing Act is one of the credit laws that gives consumers some protection with merchant and credit card disputes.

• If the company will not remove the charge, your next step is to contact your credit card company so they can walk you through how to dispute your credit card charge.  Most times they can walk you through it in 5 minutes.

• Many Americans don’t realize that if a consumer disputes the charge and the merchant says it is an authorized transaction, the credit card company can utilize their arbitration process to make the final decision…

• The faster you find the error, and report it, the better chance you have to get it removed.

• Another reason for finding the error quickly: If a merchant has a 30 day return policy and you realize the merchant charged you more than they had said (additional add on products, misleading pricing, etc.) by the time you get your paper bill in the mail, (then open, read it and scan all purchases) it might be past the 30 day point.

• A great way to be notified of a late charge, regardless of what type of the credit card or bank account you have is with mint.com.  Mint.com allows consumers to sign up for free and receive alerts directly to their email any time they have a credit card fee or bank fee.  This allows for immediate notification and faster credit card disputes.

As you can see, there are many credit laws that protect consumers, especially when identity theft is involved. Credit Card Disputes do not have to be a difficult process.

You always want to review your credit card bill online as soon as it is available so that you have a jump on any credit card disputes.  Now a days, most credit card companies will email you as soon as your bill is generated and ready to view!

I hope this helps understand how to dispute a credit card charge!

It looks like the big banks are in hot water again…

And this will destroy the little bit of integrity the big banks had…

Apparently Chase Bank has stopped filing lawsuits to collect outstanding debts from consumers because they used credit card robo-signing

What is Credit Card Robo-Signing?

It is where an employee will sign hundreds and even thousands of documents and affidavits without verifying any of the information.

This is the issue the big banks had over the foreclosures.
Essentially the banks kicked out thousands of hard working Americans from their homes without the right paperwork.
This robo signing of mortgages drew serious criticism and lawsuits fast and the banks halted their foreclosure actions in many states.

Since J.P. Morgan Chase has halted all of their collection efforts through lawsuits right now, you know they did something pretty bad.
By stopping their collection practices right now, they are loosing a lot of revenue.

So how can you benefit from the credit card robo-signing?

One benefit of this fiasco is the potential chance of not getting sued right now from Chase if you are past due.

Times are tough right now and many are behind on payments.
When you owe a bank money and they sue you, there is the chance they can get a garnishment to withdraw money from your paycheck.
Now that Chase has stopped their lawsuits for now, this could save Americans their home, vehicle or simply keep them afloat.

If this credit card robo signing fiasco gets worse, it may mean more banks will stop their lawsuits.

This may also mean it will be easier to find errors on your credit report.
If the banks are not following proper protocol and not verifying the account is yours, you may have an error on your report that gives you the opportunity, to request the negative inaccuracy be removed. This specific technique is explained with a step-by-step guide within the Credit Repair Doctor®

It is sad that the banks use techniques like this(it was recently found that several banks have been doing this since 1998).

Hopefully this credit card robo-signing will aggravate enough people and our government will help out.

Recommended reading:
Becky Blanton reviews Suze Orman’s new credit card

Happy New Year everyone!

2011 was a wild year in America and also around the world.

Let’s hope this year will bring the start of a recovered economy and better lifestyle for all of us.  Let’s hope the average credit score in America for 2012 goes up and helps Americans get the things they need.

More Americans will be hoping to buy a home in 2012 now that the prices have dropped and there are great deals on good homes.

Which leads me to our topic of 5 credit repair tips and techniques you can use in 2012 to improve your lifestyle, save yourself thousands of dollars and make your life easier.

 5 Credit Repair Tips & Techniques For 2012

Credit Repair Tip #1

Buckle Down
Now that the holidays are over, it’s time to buckle down and save as much of your hard earned paycheck as possible.  The holidays can take a lot out of your pocket, but luckily the first quarter of the year helps make up for it.  Before summer hits, use this time to put away a portion of your paycheck each month.  That money might go towards a new car or your dream home!  If you need help with your budget, there is a specialized Budget Guide that comes with the Credit Repair Doctor™.  The budget guide is easy and quick to use and it takes the lameness out of budgeting. It also helps people keep their payments on time.

Credit Repair Tip #2

Get Access to Your Credit Reports
Now that all the excitement is over with the holidays, it’s time to get your credit reports.  Be very careful where you access your credit reports:

1. Some credit reports come with credit scores, many do not
2. Some credit reports will come with a credit score called VantageScore® which IS NOT used by 90% of lenders out there. You want your FICO® credit score, which is what 90% of lenders DO USE.
3. Some companies will offer you a free credit report but you are actually charged a monthly fee for it.

To get your credit report for free without a membership fee or credit card needed, visit HERE to get instructions on how to access your credit report in less than 5 minutes.

Credit Repair Tip #3

Review Your Credit Report For Errors and Negatives 
Many consumers don’t realize they can get a negative item deleted off of their credit report if it is

• Inaccurate
• Incomplete
• or Unverifiable

So once you get your credit report you want to look for inaccuracies and incomplete information on your credit report.  Also remember if they can’t verify that particular item or detail on the credit report, you can request they delete/fix it.  These can include anything from:

• An account showing a late payment that was not late (or they can’t verify it was late)
• A bankruptcy reporting that is not yours (Your father’s, son’s, person with similar name)
• A reporting date that is incorrect
• A balance amount that is incorrect
• A loan limit that is missing or wrong

And the list goes on…  The point is anything you can find on your credit report that is wrong, even something as simple as the wrong amount or date, can be disputed.

Credit Repair Tip #4

Dispute the inaccurate, incomplete or unverifiable information
When you are ready to dispute items on your credit reports, make sure you do it in writing and mail the letter to the credit bureaus.  Using their electronic system eliminates the paper trail you need and also removes some of the responsibility the “credit bureau” normally has with written documentation.

Keep your dispute letter short and to the point. There is no need to bad-mouth or bring emotions into the letter, no matter how frustrating it may be.  Stick with the facts and ask to have the item deleted or fixed.

Handwrite the letter so that it is not as easily scannable by their OCR technology.  This technology scans your letter and tries to match it up with the millions of letters they receive yearly.  It then gives your letter a simple 2 or 3 digit dispute code and sends out a response to you.  If you handwrite it, you increase the chance that a human employee (unfortunately overworked and outsourced worker) will then give it a quick review (They are required to do each review in 4 minutes or less) and send a response letter to you.

There are 43 dispute letter templates included with the Credit Repair Doctor™  which make it easy and fast to craft up a dispute letter.  If you want to watch the video about  credit surprises and information on the Credit Repair Doctor, visit The Credit Repair Doctor™ 

Credit Repair Tip #5

Protect Your New Credit Rating
Now that you did the work to improve your credit rating, you want to protect it so that nothing bad ever happens to it.  Here are some tips to protect your credit rating and your financial well-being:

• Prevent Identity Theft Fraud with Credit Monitoring.  The FBI named Identity Theft the Fastest Growing Crime in America.  Last year over 9 Million people were victims of identity theft.  Visit the Credit Resources page to find the best credit monitoring companies in America.
• Photocopy the front and back of everything important in your wallet.  If your wallet were to get stolen right now, do you have the contact info for your credit cards, bank ATM card, license, and other financial documents?  Photocopy the front and back of your credit cards, license, insurance card and any other important items and keep them in a safe place… like a safe
• Don’t let other people have access to your private accounts.  This means that when you’re online, you need to only access your accounts when you’re on your private computer.
• Have a strong anti-virus, anti-spyware and firewall installed.  Also, if you’re using any kind of router, you need to make sure that it’s password protected and change that password regularly to keep potential hackers out.  One of the current bonus items of the Credit Repair Doctor™ is a book on preventing spyware and adware.
• Make sure you shred anything that has your personal information on it.  This can include something that has the last 4 digits of your card number to something as simple as your date of birth.  It doesn’t take much information these days for ID thefts to accomplish their evil tricks.  If you do not have a shredder, you can always rip it into smaller pieces and flush down the toilet or put down the disposal. There is no way they can get it then!

So there are 5 credit repair tips to help your credit score in 2012.

Follow those steps for a great 2012!

Share this with friends, family and co-workers to help increase the average credit score in America for 2012!

The post is to wish you and your family happy holidays.  My family and I hope you have a peaceful and happy holiday.  

Being the Holidays I wanted to give away some shopping and credit repair tips on what to look out for during the holiday season.

There are so many options these days for gifts and presents. The options are practically endless and there is always something you can find for everyone.

That said, you can still get great gifts without spending a truckload of money or hurting your credit:

Create Your Game Plan

The first thing you want to do is create your holiday spending budget.  Too often, people go to the mall without determining their limit on the amount they want to spend.  This can easily turn into overspending.  It is fun to get gifts for those you care about, but we don’t want to hurt our bank accounts because of it.

Become a Shopping Ninja
You can be a shopping ninja with the technology that is out there now.  There are many daily deal sites that give discounts of 40% – 80% the regular price.  If you know where to look, you can find 3-4 gifts for the price of one!

I like to use an iPhone application (also available on Android phones) called Deal Drop that pulls the deals from hundreds of sites and gives it all to you in one spot.  It includes all the big ones like Groupon and LivingSocial along with the smaller sites.  Deal Drop is great because it has deals for everything from power tools to baby clothes.

Be a New-Credit Grinch
Be very careful before you say yes to getting that new department store credit card. It may sound nice to get another card that gives you a small discount or allows you a month or two to pay, but there are many drawbacks:

• The store will have to pull up your credit report and credit Inquiries are 10% of your credit score.

• When approved for the card, there is a good chance they will set your limit close to how much you are spending.  That means your balance will be close to your limit which affects your credit utilization ratio, which is 30% of your credit score!

• Unless you pay off the account in full the next month (when consumers are the most cash strapped from holiday spending), you will have high interest charges.  Those high interest charges that could continue for months or even years will heavily outweigh any discount they initially gave.  (The banks know this and do it on purpose to make more money off of us)

I hope these holiday & credit repair tips help you enjoy the holiday with your family and save you money at the same time!

This credit repair blog talks a lot about how important credit scores are in this economy and how to boost credit scores to get the lifestyle you deserve.

That being said, the one thing I want to emphasize is…

You ARE NOT your credit score!

Sometimes it can feel like your credit score is an extension of yourself…

But that is not the case.

Who you are as a person has NOTHING to do with your credit score.

In America, we are judged by our credit score more than ever before. (Getting a job, car insurance, renting an apartment, getting utilities, buying a car, etc)

Due to this heightened amount of credit checks in America, it can constantly remind people of their credit issues.

Regardless of how many places access your credit and judge by it, does not mean that you are a bad person!

I have worked with good people who have gone through a bankruptcy, foreclosure or other financial issues.  Many say they feel like a second-class citizen or a “lessor person” because of the bankruptcy, foreclosure or financial issue.

If you are one of those people that feel this way, please reconsider your mindset.

I am not going to explain how bad this economy is because we all know how it is impacting us.  In this economy, there are millions of people going through tough financial times, so if you are one of them, understand; you are not alone.

Regardless of how damaged your credit may be, just remember…

You are NOT your credit score!
Your credit score does not say anything about you as a human being.

I recently became “Internet” friends with Becky Blanton, who is a wonderful person.  As Becky mentions in her TED talk:
“People are not where they live, where they sleep or what their life situation is at any given time.”

This principal is also true for your credit scores and your financial “status”.

You can watch Becky’s video below and also learn more about her HERE.

This quote by Joseph Campbell hits home on this:
“It is by going down into the abyss that we recover the treasures of life. Where you stumble, there lies your treasure.”

If you are feeling down about your credit, there are many things you can do.  Here are a few ideas:

• If you are feeling down about your credit, you can spend 15 minutes a day working on repairing your credit.
• Working on your credit even a little at a time can help you look at what you have accomplished, NOT what is left to be done.
• Keep a gratitude journal and write down all the good things you are grateful for.
• You can even repeat to your self “I am NOT my credit score!   I am NOT my credit score!”
• Consider going for a walk outside.  This may seem simple, but walking releases endorphins (which is great for your mind and body) and being outside can be very calming (depending on where you live).

Make it a great day!

Sincerely,
Jeremy Maher

P.S. If you have any questions or comments on how damaged credit makes you feel or how you deal with it, feel free to use the comments below or contact me HERE.

The Credit Repair Doctor™ is the credit repair course I have been working on for 14 months.

And I am proud to announce…

The credit repair system is finally ready!!
(I haven’t officially announced it yet, but it is launching this Wednesday, October 12th)

Even though it hasn’t been announced or launched yet, all my blog readers can get early access to the Credit Repair Doctor™ by clicking HERE.

There is a free credit repair video presentation you can watch on that web page.

The Credit Repair Doctor™ was formulated with my 8,300+ hours of research and firsthand experience as a CEO of Formidable Credit Repair Group.

This system reveals all my insider credit techniques and “backdoor” ways to legally clean your credit quickly.

It makes credit repair as easy as it gets!

The  Credit Repair Doctor™ is an exclusive credit repair system that includes all of these items: 

I also received 3rd party rights to several amazing products that I am giving away for free with the Credit Repair Doctor™

To get all the details on each of these special items, watch the video:
www.Credit-Repair-Doctor.com

I received an email yesterday from a reader asking how important credit scores are in this recession we are going through.

Hopefully this Credit Repair Tips Blog has done a good job of giving you credit repair techniques that increase your credit scores but I realized showing you how a low credit score can cost you thousands of dollars is also important.

Many people don’t realize how many items are controlled and dictated by their credit score.  Here’s a few:

Your Home

• Getting your dream home with all of the extras you want.
• The paperwork process for a mortgage can be much easier with good credit scores. You’ll have less paperwork with a higher credit score and  your drastically increase your lendability!
• That increased lendability allows you to also shop around to different lenders and they will COMPETE for your loan! – It’s the total opposite of how it is with bad credit.
• With good credit scores, you don’t have to put as much money down.  Many mortgage programs will allow you to only put 3% down compared to 20% for other programs.  The 17% difference on a $200,000 home is $34,000 you would have to come up with to put down on the home!

Rentals

• Renting houses have become much more popular in the last few years – you get the whole home just as if you owned, but you only have to pay a monthly rent.
• These are a great “in-between”, but you have to have good credit to normally rent one.
• Another thing I’ve seen happen numerous times is a different applicant may get the rental home instead of you because of their credit standing. That’s one of the worst ways to get rejected.
• Renting an apartment/house/condo – Your deposit and monthly amount can get “jacked up” if your credit is lower than par.

Automobile

• Getting a car.  Auto dealerships are notorious for denying people for loans or charging them an obnoxious rate.
• With good credit, you get the car you WANT, NOT the one the dealership says you are approved for.
• Going into the car dealership is intimidating and aggravating with damaged credit.  With good credit, you have the chip on your shoulder and the control is in your hands.   It feels much better to visit the car dealership with good credit.

Employment

• Getting a J.O.B.! Most places these days can be super selective because of the supply of workers due to our high unemployment rates and they use background checks and credit reports to evaluate applicants.
• Getting a job is tough enough in this economy.  The last thing you want is to get rejected from the job because someone who is less qualified then you has cleaner credit.

Student loans

• Unlike other types of lending, if you don’t have good credit you may simply not be able get the student loans you need.
• If you have average credit, you’ll pay much more for your student loans. 
• Schooling is expensive enough as it is.  The last thing you want to do is get charged twice as much as the classmate sitting next to you.  Good credit gets you the lower interest rates on student loans saving you thousands of dollars off the total loan!

Credit Cards

• With good scores, you get the lower interest rates.
• Good credit can also get you 0% credit cards – INTEREST FREE MONEY!!
• You can have larger limits on your credit cards to for the big purchases.

Utilities (electricity, water, cable, etc)

• You may have to pay a large deposit with poor to average credit and those with high credit scores don’t have to pay deposits.

Several other items that have an impact with bad credit:

• You want to have the same resources that others with good credit have. You obviously don’t want to get denied for the things you need.

• Get financed on the “big ticket items” – so you don’t have to use all your capital.

• Automobile insurance premiums -  Most auto insurance places are checking your credit score and raising your premiums for credit “dings”.

• Cell phone service: If you have bad credit, you are unlikely to be able to get a contract with a cell phone provider without a huge deposit, or worse, you simply will not get one at all.

• Getting married: When you get married and your spouse has bad credit or if you do, you’ll find that their bad credit isn’t wiped out.  Instead, one spouse’s bad credit can make it difficult for the two of you to get financing to purchase a home or can cause your insurance rates to go up when you add your partner.

• Getting the credit to start a business! You need good personal credit to finance your business.

• Health insurance or life insurance – Many insurance companies are basing part of your policy off of your credit scores.  I don’t think that is fair, but it’s par for the course right now.

Credit repair tips that improve your credit score can make the difference in getting employment, obtaining your dream home, driving the car you want and saving you thousands of dollars!

There are so many credit repair tips to give these days, especially with the recession that we are experiencing in 2011.

This article will focus on the 4 top credit repair tips for 2011 that will have the biggest impact in raising your credit scores.

#1) Check your credit reports and credit scores (THE REAL ONES)

This may seem obvious, but unfortunately statistics show more than 60% of Americans check their credit less than once a year. To learn what shows on your reports go to How To Read Credit Reports

What makes it worse, is the credit scores you get from certain companies ARE NOT the same credit scores that lenders like mortgage companies and auto dealerships use. This is the difference between FICO® credit scores and VantageScores®.

VantageScores® were created by the 3 credit bureas to attempt to overtake the FICO® score that most lenders used. It has been many years since the VantageScore® came out, and most lenders still do not use them.

FICO® uses a different score range than VantageScores®. FICO® Scores range from 350-850 while VantageScores® range from 501-990. There is a a 140point difference between a 850 top score and a 990 top score! This is where the confusion comes from.

Many people may think they have a good credit score because they have a 700 credit score, but if they find out it’s the VantageScore, they may be in for an unpleasant surprise.

So the first credit repair tip is to make sure you get your credit report and correct credit score to determine where you need to start.

#2) What accounts you can pay late

This credit repair tip probably sounds crazy and counterintuitive, eh?

Here’s the scoop: With the recession we are going through and the unemployment rate in the double digits, having enough money to pay all the bills one month, might be difficult.

Of course I always advocate making all of your payments on time, but unforseen circumstances can make that difficult. That being said, you always want the accounts that report to the credit bureaus to be on time.

If you absolutely cannot pay all the bills one month, here is a list of the bills you can be late on without it having an impact on your credit (as long as you catch up on the payment):

• Cable Television bill
• Electricity
• Water bill
• Cell Phone
• Medical Bills
• Lawn service/pool service
• 401k loan
• Real estate taxes
• Payday loans

These items will have a penalty for being late, but its usually better than the interest credit cards charge for recurring balances and late fees. As long as you catch up your payment with these places, it will have no impact on your credit. (If someone were to stop paying them all together, it can go to a collection company, who then reports that collection to the credit bureaus)

Of course this credit repair tip is a last resort. I have seen consumers pay for things that don’t show in their credit report before paying on ones that do report to the credit bureau. If you can’t make all the payments, make sure you pay the ones reporting to the credit bureaus.

#3) Find the negative and misreporting items on your credit report.

Many people are shocked when they find out how often credit bureaus make credit report errors.

Statistics show that 70% of reports contain a serious error that could cause a consumer to be denied for a home mortgage, car loan or credit card. These are mistakes that are on the credit reports that the consumer doesn’t even know about.

This is why that first credit repair tip about checking your credit reports and scores is so important.

#4) If creditors or collectors are harassing you, learn your rights FAST

Many people don’t know this, but collection agency laws can be your best friend.

Unfortunately creditors and collectors get away with breaking the law everyday. Many of these companies get sued, but continue to break the law because it is profitable for them.

The main law you want to learn about is the Fair Debt Collection Practices Act. American consumers have many protections under this act, yet very few know about it. Here is the link to the FDCPA government website.

Make sure you learn your rights before picking up that telephone again!

#5) Okay, so I have more than 4 credit repair tips for you! Tips #5 is keep those balances under 30% of what your credit limit!

Many consumers don’t know that 30% of their credit score is calculated on the difference between what you owe on a loan compared to what your total limit is. That is why people are confused when they have always made all of their payments on time, but have a mediocre credit score – It can be due to their Credit Utilization.

With the recession, banks have clamped down on their lending to consumers, it has become very difficult to get loans in 2011. One of the best things you can do is increase your credit scores, by keeping your balances under 30% of what the total limit is.

Paying down the account is of course the best way to accomplish this. That is not always realistic for everyone so here is another technique: Request an increased limit from your credit card company. It has become a little more difficult to get large credit limit increases in the last year, but if you have good payment history they should bump up your credit limit.

Another way to reduce your credit utilization ratio is transferring part of the balance onto another card. This will improve your per account credit utilization.

Since this one item (credit utilization) is worth 30% of your credit score, it’s important to take it seriously and also take advantage of the credit repair techniques available to all of us.

Okay, so there is actually 5 credit repair tips for you to use this year- hope you enjoyed!