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Boost My Credit Now!
The Credit Repair Kit




Contents:

Credit: What is it?





Page 2
What Is My Credit Rating And What Does It Mean?
Page 4
What's In My Score?





Page 4
Your Credit Report





Page 8
Obtaining Your Credit Report



Page 9
Reading Your Credit Report Page 11
The Credit Repair Process




Page 13
Boosting Your Credit Now!




Page 20
Other Techniques for Boosting Your Credit

Page 21
Appendix







Page 23

Credit - What Is It?

In today's modern society, credit is a major part of
the financial landscape. Almost all of us utilize
credit in one form or another in order to live a full
life. Whether it is a car loan or mortgage, a credit
card purchase or utility bill payment, we all use
credit. We all need credit.

Using credit responsibly is important as it helps you
build your `credit score.' This in turn allows you
access to more credit, which is important when trying
to buy a house, car or plasma screen TV with favorable
interest rates!

Without good credit, trying to run your life would be
hard. That's why building and maintaining good credit
is so important. But sometimes life has a knack of
getting in the way of good credit. Whether you have
lost your job, been a victim of fraud or have just been
caught in the credit trap, sometimes we need a little
help rebuilding credit, as good credit score can save
you thousands of dollars in the long run.

But what is credit? Basically, credit is the confidence
a lender has in you and your ability to repay them
their money. This means credit is your ability to get
a loan from a lender, and then your ability to repay
that loan.

Having `Bad Credit' may stop you from gaining access to
reasonable car insurance rates, getting a cell phone or
even opening a utilities account.

Some companies even run credit checks on you before
they hire you. They like to see what kind of person
they are about to hire. If you can't manage your own
money, how can you be expected to manage someone
else's?

With credit being so easily attainable, it is sometimes
easy to abuse it. When it comes time to pay money back

and you can't afford it, you have now fallen into the
`credit trap.'

This is known as a `fiscal misstep' and is the most
common cause of bad credit. When you can't make that
payment or even forget to pay a bill on time, this will
be reported to a credit reporting agency. Then, when
you apply for a loan, these credit `mishaps' will show
up on your record and affect your loan process.

Whether it means rejection or just higher interest
rates, having bad credit is bad news. Effective
management of income and spending is the best way to
ensure you don't fall into the credit trap.

Over the course of this credit repair e-book, we will
show you how to repair your bad credit once and for
all. Once you know all the details of your own credit,
you will be able to make all the necessary arrangements
to clear up your bad credit and help you find financial
freedom.

So read on, and boost your credit now!


What Is My Credit Rating And What
Does It Mean?


Your credit rating or FICO score is a method of determining
the likelihood that credit users will pay their bills on
time. It's a risk assessment tool that is summed up by one
number.

Your score is based on information the credit bureau
keeps on file about you. As this information changes,
your credit score changes. Your score will affect both
loan amount and terms (interest rate, application fees
etc.) that lenders will offer you.


What's In My Score?

FICO scores are calculated from various credit data in
your credit report. This data is generally grouped
into five categories. The percentages reflect how
important each category is in determining your score.

Payment History: 35%

The credit companies look at account payment
information on specific types of accounts (credit
cards, retail accounts, installment loans, finance
company accounts, mortgage, etc.).

They also look at:

* Adverse public records (bankruptcy, judgments,
suits, liens, wage attachments, etc.), collection
items, and/or delinquency (past due items)
* Severity of delinquency (How long past due are
they?)
* Amount past due
* Time since past due items, plus adverse public
records or collection items
* Number of items on file that are past due




Amounts Owed: 30%

* Amount owing on accounts and the number of
accounts with balances
* How much of your credit balance is used
* How much of your loan is still owed


Length Of Credit History: 15%

* Time since accounts opened and the length of
account activity


New Credit: 10%

* The number of recently opened accounts, the time
since they were opened and, the number of recent
credit inquiries.
* Re-establishment of positive credit history
following past payment problems.


Types Of Credit Used: 10%

Types of Credit Used include: credit cards, retail
accounts, installment loans, mortgage, consumer finance
accounts, etc.

FICO scores range between 300 and 850. Over 750 is
considered an `excellent' score and shows a good credit
history. Obtaining credit should be quick and easy and
you should get it on favorable terms. Over 720 is
considered `very good.' Between 660 and 720 is
considered `acceptable.'

Between 620-660 is an `uncertain' score for a lender.
Although it shows good credit, lenders may take a
closer look at the borrower to closer assess the risk
to them.


A score less than 620 is considered a `risk' for a
lender. For the borrower, it means that they may not
get the best rates or the best terms or even any credit
at all.


Why Might Your Fico Score Be Low?


Here are some of the reasons why:

* Too many accounts open with balances
* Too few accounts
* Delinquency on those accounts
* Too many opened in the last 12 months
* The amount owed on them is too high
* The account payment history is too new
* Length of credit history is too short
* Too many credit enquiries in the last 12 months
* Portion of balance to credit limit is too high
* Lack of information on your accounts and/or
mortgage account
* Money owed is past due on your accounts



What is not considered when
assessing your Fico score:

* Race
* Color
* Religion
* National origin
* Sex
* Marital status
* Age
* Salary
* Occupation
* Employer

* Employment history
* Location



Your Credit Report:


In order to fix or boost your credit, you really need
to understand where YOU STAND in the eyes of lenders.
How do they see you? Are you considered a risk to them?
What's your credit score?

How do you do that? You need to use the same tools that
they use to judge you. You need your credit report. Or
more to the point, your credit reports!

There are 3 main credit reporting agencies that exist
in the US. They hold all your credit information in
your credit file and sell that information to lenders
on their request.

The agencies gather this information in the blind faith
that it is correct, as reported by companies like Visa
and your bank. As humans at banks and credit companies
enter the data manually, there is room for error. This
is why it is important to always check your own credit
reports for errors.

When you submit an application for a car loan, credit
card, house etc, the lender will access your credit
report and make a decision about whether they should
give you the loan - all based on your credit report.








Obtaining Your Credit Report

The first step to boosting your credit is to clean up
your credit report. To do this, you need to obtain your
credit report.

There are a number of ways you can do this. You can do
it by mail, phone or the internet. You are entitled to
one free copy of your credit report annually from each
of the three credit bureaus (Equifax, Experian, and
Trans Union).

Call 877-322-8228 or log on to
www.annualcreditreport.com

If you want to see your FICO score, you can purchase it
at the site listed above or from one of the three
credit bureaus.

Or you can write or call the 3 main agencies. Their
contact details are:

1) Experian (formerly TRW)
http://www.experian.com

National Consumer Assistance Center
PO BOX 2002
Allen, TX 75013

To Order a Report: 1.888.397.3742
To Report Fraud: 1.888.397.3742

2) Equifax
http://www.equifax.com

Equifax Credit Information Services
PO Box 704241
Atlanta, GA 30374

To Order a Report: 1.800.685.1111
To Report Fraud: 1.800.525.6285


3) TransUnion
http://www.transunion.com

Consumer Disclosure center
PO Box 1000
Chester, PA 19022

To Order a Report: 1.800.888.4213
To Report Fraud: 1.800.916.8800