Can any credit score be fixed?

Credit scores vary in range from 300-850. In the past, I have personally seen scores in the low 400’s which is pretty bad. Having said that, any credit score can be fixed. Even if your score is in the low 300’s, you can improve it over time, but let me be clear…It will take you at least a couple of years and that’s with extreme discipline unless you hire professional help. It’s already a slow process and there’s just too much work to do.

Here are the necessary steps to improve your credit score:

Hire a credit repair company - With a credit score between 300-500, there is no need to go at it alone by attempting self credit repair. You are long past that point. I recommend “The Credit People” and have blogged about them in the past due to how effective they were in repairing my own credit. Their complete service is $419 if you pay in advance, while the industry average is $1200 a year.

Pay off any remaining debts - “The Credit People” do excellent work, but no company will guarantee 100% removal, so just assume that you will need to do your part in cleaning up any residual debts. You should first initiate a “Pay for Delete” (PFD) agreement in which you offer to pay the creditor a lesser amount of what is actually owed, in exchange for the removal of the debt from your credit report. I offer a free sample PFD letter on my blog that is available upon request.

Make all future payments on time - Even though you’ve hired professional help, you must still do your part by keeping up with all future payments and make a commitment to never be late again. This is a very important step for obvious reasons, but the biggest being that creditors place a heavier weight on how you’ve paid your debts lately, rather than how you’ve paid them in the past. This strategy will put you in a better position to apply for new credit in the future.

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Are collection agents trained to be rude?

I don’t believe for one moment that collection agents are trained to be rude. What I do believe is that they get paid on commission. The more they collect, the more they get paid…so they are extremely motivated.

Having said that, I certainly wouldn’t group all debt collectors as one and the same. There are good and bad employees in every occupation and the debt collection industry is no exception.

I have certainly had my fair share of dealings with the rudest of rude and the meanest of mean but I never let them aggravate me to the point where they caused me to lose control.

When dealing with debt collectors, one should acknowledge the fact that they have a job to do and are just trying to make an honest living, but you should never allow yourself to be verbally abused or threatened by one.

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Why I could never become a bill collector

I could never take a job as a bill collector even if my life depended on it. One of the many reasons is because I think they are the scum of the earth and I think much more highly of myself than scum. It's a dirty job and somebody has to do it but that somebody will never be me.

Calling some random stranger up and asking them for money that they haven't bothered to pay back in years just seems counterproductive to me. I mean, in most cases whenever I've had a years-long unpaid bill its generally because I have absolutely no plans to pay them.

Add the fact that 80% of all debts in America are never collected and that is a formula for a lot of cold nights and wondering where your next meal is coming from. No thank you! I'd rather sell bean pies on the street rather than accept that job...not that there's anything wrong with selling bean pies on the street!

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What happens if you stop using your credit cards?

It is always a good idea to keep all your credit cards at least minimally active, even if you pay the entire balance off on your next due date. The reason for this is because a lot of credit card companies will either reduce your credit limit or close the account altogether.

I have a credit card from the "Express Men's" store that started with a credit limit of $500, was raised to $650, then due to a couple of years of next to no activity on the card, they lowered my credit limit to just $100. They have since raised it incrementally to $850 but in some cases, they will simply just close the account.

In an attempt to be proactive, I recently purchased a few items from their online clearance selection and a nice pair of black chelsea boots just to show a little activity. My hope is that my debt to income ratio will improve enough in the near future and lead to higher credit limits and a higher credit score.

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Fingerhut Credit

I have been raving about Fingerhut Credit since day one. What I've realized over the years is that some people don't consider Fingerhut to be "real credit" just because they do not issue a traditional credit card that you can see and feel.

Honestly, I used to feel the same way. Part of the reason is that we have been programmed to associate "real credit" with a plastic card because to some of us, possessing a credit card gives us a sense of power that makes us feel good inside.

With companies like Fingerhut and Gettington, which happen to be owned by the same parent company, a physical credit card is not issued. Since neither company has a physical retail shopping store, it serves no purpose to offer a traditional credit card.

Having said that...both companies report to the three major credit bureaus and that is what's most important. Because they both report and report often, this affords your credit score the opportunity to trend upwards at a much faster pace.

It is worth noting that Fingerhut items will cost a little more than you would pay at a traditional retail store but in my opinion, it's worth it because Fingerhut reports to all 3 of the major credit bureaus to help get your credit back on track. Apply for Fingerhut Credit today!

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