Credit today is part of everything we do in our lives, you screw up and get a repossession you have to deal with the consequences. In fact even if you choose a credit free lifestyle which many people are opting for today, it can still impact you in a bad way and end up costing you thousands extra each year until it is fixed. Personally being self employed for most of my life, I now opt to pay cash for everything that I can instead of finance. For example since working in repossession and understanding how a bad time can get you into a jam with a new car, It is much better to take an imaginary car payment and put it away for a couple years and pay cash for a nice used car. However with the compulsive nature and credit ways of America, very few people will adhere to those guidelines.
Choosing to live a credit free lifestyle
Many people decide to live credit free lifestyles after an instance and basically being forced to life that lifestyle. However even if you decide to take that route, you will never be able to live a credit free lifestyle fully and here is why:
- If self employed, many industries require bonding bad credit = huge bond rates. Example car dealer normal rate $250.00/ bad credit $2,800 to $4,000.00
- If not self employed and seek employment with a degree. Bad credit = no job. Trade off is accepting an extremley low paying part time job
- Insurance rates will skyrocket
- Mortgage must be a 640 or higher to get a normal mortgage approval that most people usually cannot cough up the 300k for a new home.
- If you feel the need to put your money in the bank or, personal or corporate bad credit few banks accept.
As you can see even the closest to living a credit free lifestyle are affected. If you pay cash for your home the homeowners insurance will be credit checked as will driving insurance, even if you use a corporate policy. Tough to escape the grasp of modern day big business so the best thing to do is to check your credit reports once a year and to fight back by disputing any erroneous credit reporting as you will always find.
Steps to fight back and remove any bad credit information including repossessions
- Order all three credit reports from Annualcreditreports.com if you go to equifax.com and order a report it will transfer there on the free report.
- Examine all inquiries and negative credit history, check dates and verify if they are all correct, many times old bad credit will be sold and made new once close to coming off at the 7 year mark.
- Make a copy of the page where the problem is and circle it
- Make a letter like the one posted below
- Prepare all letters separately and send them certified mail, keeping track of the dates.
- Visit credit forums and read some other previous experiences in removing repossessions from credit, some priceless advice in those forums.
- Keep track and rinse and repeat
John Mccarthy 1234 American way St Miami, FL 33013 Experian PO Box 9701 Allen, TX 75013 08/10/2013 Dear Experian, This letter is a formal complaint that you are reporting inaccurate credit information. I am very distressed that you have included the below information in my credit profile due to its damaging effects on my good credit standing. As you are no doubt aware, creditreporting laws ensure that bureaus report only accurate credit information. The inclusion of this inaccurate information is a mistake on either your or the reporting creditor's part. Because of the mistakes on my credit report, I have been wrongfully denied credit recently for a mortgage loan which was highly embarrassing and has negatively impactedmy lifestyle. I have included the derogatory information listed on on the actual report, I'm sure you'll agree it needs to be removed ASAP. The following repossession is not mine therefore needs to be verified and deleted from the report as soon as possible: HSBC Bank XXXXXXXXXXXXX Enclosed copy date shown as opened Please delete the above information as quickly as possible. Sincerely, John Mccarthy SSN# XXX-555-4444 Drivers License copyCredit report documentation There are no guarantees this will work, but no doubt it is worth a try to begin to get back on track with a good credit score again and next time take more responsibility and think twice before financing things you don't need, especially in an economy as we are in now for the last several years. There are follow up letters to send after the games begin in 30 days from the date of your registered mail return receipt. These follow up letters you quote the fair credit reporting laws as well as fines and you should begin to get some kind of responses. After a repossession, it is important to get back on track and fight for your credit rating, it is worth it.