Table of Contents

Congratulations! You’ve taken a great step in actively participating in repairing your own credit! Most people believe there’s nothing they can do and they’re just stuck with the credit they have – but (as you’re about to find out) that’s just not true! This may not be your first attempt at attaining a better credit score, but I guarantee you will find concrete steps in this book to help you achieve your goal…a better credit rating.

So let’s start with the basics of what this book is…and isn’t. I want you to be 100% satisfied with the information you’re about to receive. And if you have any difficulty with some of the financial terms we use, check the glossary at the end for definitions and examples.

What This Book Is

This book is a step-by-step, do-it-yourself manual on how to repair your current credit rating situation. If you are experiencing any of the following, this book will detail the exact steps you need to take to get a better credit score:

• getting a ton of collection calls or letters

• having trouble getting a loan

• having trouble getting a credit card

• having trouble getting a job

• you just want to have a higher credit score

What This Book Is Not

This book will not automatically raise your credit score. You will need to follow each of the outlined steps and take action on what you read. If a step tells you to ‘send a letter’, you need to send a letter. This kit will not send a letter for you. To 99% of those reading this, that sentence may seem a little silly; however, some people think that just by receiving information, they have completed a task. Don’t get me wrong…you have taken a huge step in fixing your credit, now you just need to apply some elbow grease. Repairing your credit situation is not instantaneous. There are a few tips and tricks you will learn here that will have an immediate effect on your credit score; however, all other steps will take time. In fact, anywhere from 3 months to one year. Unfortunately, every time you send a letter, create a dispute, or place a phone call, you are now at the mercy of the companies you’re working with. This typically means bureaucracy – forms, calls, etc. and sometimes those wheels turn slow. Perseverance will always win however, and you’ll see in the ‘Tricks’ chapter why that is.

The first step we’re going to take is to get you a copy of all three of your credit reports from the credit reporting agencies. This will not cost you anything. The second step we’re going to take is to get your actual, numbered credit score. This usually does cost money to attain, but I’m going to show you a little trick you can use to get this for free. Once you have these items, I’m going to have you write down your beginning credit score below. When you’ve finished every step in this book that applies to your specific situation, I’m going to have you get your new credit score. I can’t wait for you to see the difference!

Access to Free Credit Reports

You never have to pay to see your credit report. You are allowed by law to access all three of your credit reports from the major credit reporting agencies once a year. You can do this by writing the reporting agency and requesting them to send you your credit report, or you can go online and view your credit report for free one time.

How to get your free credit report:

Online: https://www.annualcreditreport.com/cra/order

Telephone: 1-877-322-8228

Mail: Complete the Annual Credit Report Request Form (Appendix A) and mail it to:
Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.

This is all well and good for you to see what’s actually on your credit report (any loans, collections, credit cards, inquiries, etc.), but the law does not say the reporting agencies have to give you your credit score for free. So in order for you to see your actual, numbered score (the one banks and financial companies see), the agencies make you pay either a one-time or monthly fee.

Unless you do it my way.

Many of the companies out there that offer your credit score also offer you a free trial. They know that once they get you signed up on their system with your credit or debit card in hand, most people will forget they signed up or forget when they need to cancel to save their money. Don’t be one of these people! I want you to sign up with one of these companies that are offering a free trial…and then I WANT YOU TO CANCEL immediately after printing your credit score.

How to get your credit score for free:

All three credit reporting agencies typically offer a free trial at any time. You can Google ‘equifax free trial’ or ‘credit score free trial’ and one will show up. You may also use the link below to access Equifax 3-in-1 Monitoring with Credit Score. You will receive your credit report and credit score. When signing up for any free trial, you will be required to enter your personal information, including your social security number, as well as a valid credit or debit card. You will not be charged at this time. You will have anywhere from 7-30 days to cancel the account. I strongly advise you to create the account, access your credit report and print it, access your credit score and print it as well. Then call the company you just signed up with and CANCEL the account. Be warned: they will offer you amazing savings and deals when you call to cancel. Be strong! Buying more stuff will not help your credit score and that’s the ultimate goal here.

Here are the direct numbers to each credit reporting agency to cancel your free trial account:

Equifax: 800-783-9421
TransUnion: 800-916-8800
Experian: 888-397-3742

Click Here To Get Your Credit Score

*Don’t forget to cancel! Otherwise, your credit card will be charged every month.

As a sidenote, and one we will get into detail later, all three of these companies will most likely have different credit scores for you. Each of the credit bureaus uses a different model to calculate your credit score. I know, annoying, isn’t it? If you get the Equifax credit offer as your free trial, you will get to see all three. Otherwise, you can signup for free trials from all three companies and cancel all three if you’re interested in knowing all three of your credit scores.

Ok, now you have your credit report and your credit score. Go back to the Introduction and write down your credit score in the ‘Beginning Credit Score’ box. At the end of this book, we’re going to write down your Ending Credit Score and bask in the difference!

Let’s learn how to read our credit report and find out exactly what our credit score means.

Interpreting Your Credit Report

If you’ve requested all three of your credit reports from www.AnnualCreditReport.com , you may notice that they each have a different format; however, they all contain the same categories of information:

Personal Information: Your name, address, Social Security Number, date of birth, and current and previous employers. Your name may display in different versions if you are a married or divorced female, or it may display your nicknames and/or abbreviations of your name. Your present address will be shown, as well as past addresses.

Accounts Summary: These are your credit accounts. Most lenders report on each account that is established with them. There are essentially three different types of account classifications (plus the all-encompassing "other" category) as follows:

Credit history: The bulk of your credit report consists of details about credit accounts that were opened in your name or that list you as an authorized user (such as a spouse's credit card).

Account details are supplied by creditors with which you have an account include:

The date the account was opened, the credit limit or amount of the loan, the payment terms, the balance, and a history that shows whether or not you've paid the account on time.

Depending on the manner in which they were paid, closed or inactive accounts stay on your report for 7 to 11 years from the date of their last activity.

Public records: Matters of public record obtained from government sources such as courts of law - including liens, bankruptcies, and overdue child support - may appear on your credit report. Most public record information stays on your credit report for 7 years.

Satisfactory Accounts, or Accounts in Good Standing: All three of the major credit reporting agencies (TransUnion, Equifax, Experian) appear to segregate "positive" accounts from "negative" ones, thereby making the interpretation of your report a little easier. The Equifax report gives a nice "Credit Summary" which provides a one-page, easy to review snapshot of all your open accounts, as well as some useful summary statistics (such as total debt by account type, debt to credit ratio by account type, and length of credit history).

Inquiries: When you apply for a loan, you authorize your lender to ask for a copy of your credit report. This is how inquiries appear on your credit report. The inquiries section contains a list of lenders who accessed your credit report within the last two years. Typically you will see a list of "voluntary" inquiries, spurred by your own requests for credit, followed by a list of "involuntary" inquiries. These result from creditors who order your report prior to sending you one of those "preapproved" offers for credit, and don't affect your credit rating.