The Score Restore Education Course!

In our opinion, this topic can generate a lot of confusion. Let's start off with an example. We've been in this business for a while now, and most of our clients don't understand the credit repair process. Because of all of the companies that are on the Internet making false promises, it's hard to figure out who's real. This makes it difficult for our company to convince everyone that we are truly here to help you. With all this confusion it's easy for the average person to misunderstand how this works. The truth will finally be told:

A new client signs up with our service. They are excited, as they should be. The first couple of months go by (sometimes sooner), he/she sees some good results and then these one page letters show up in the mail. These are called "Stall Letters". The credit companies send these meaningless sheets of paper on purpose just to frustrate you. At first, this isn't a problem but if he/she starts receiving these letters frequently it starts to make them think twice about our service and if we can really do the job as promised.

What is really going on when this happens is, this:

We want to paint a visual picture as to how this works. When we submit the client disputes to the credit companies, they will be delivered to a customer service agent along with a huge stack of other disputes. They will be placed on top of their desk at the beginning of the day. By the end of the day, that stack of papers must be gone or their job is at risk. If, by the end of the day they still have some papers left, they are going to do one of two things:

1. - They might just decide to trash the rest of their reports and go home for the day. If they do this you will not receive anything from them in the mail.

Or…

2. - They will just mark each item on each report "Verified" and send it right back to you without even trying to check with the creditors you are disputing.

Keep in mind that both of these methods are highly illegal. So who's going to do anything about it? Well, the FTC is suppose to but lets face it, if you were to rob a bank tomorrow and the police didn't care then you probably get away with it, right? Well, that's the best example I can give about how the FTC operates. They let many things slide and there's nothing you can do about it but to try again.

Notice, we said try again! This is what everyone needs to understand about this process and why it can sometimes take a while. The credit bureaus have the control at the end of the process and if they don't do their job then it makes us look bad. In reality, we've done our job thoroughly, yet the credit bureaus still made us look bad. This is why we tell people time and time again, "Don't wait until the last minute to repair your credit!" You never know what's going to happen.

If this information were common knowledge before people started credit repair, they wouldn't get discouraged so easily and question the methods being used. With that said, we've never had a single item that we have not been able to successfully remove from a credit report to date.

So what is the solution? If you make an attempt and they pull these tricks, eventually, by making multiple attempts your paperwork will get to a customer service agent that's actually doing their job and your negative items will be deleted.

You may ask yourself, "Why wouldn't any other credit repair company tell me this so I would stop bothering them about my report not getting done?" Well, because they are usually charging you monthly and the last thing they want you to know is that you might be paying again next month. In fact, services that charge per month don't even dispute all the items on your credit reports in any given month. They stretch it out on purpose increase their revenue.

We're not saying everyone has to use our service, just be aware of what is out there. We have clients right now who have spent as much as $2,500.00 on programs that have very costly fee structures before they found us.

That is the honest truth about the credit repair process and what happens when a dispute is submitted. It is completely unique and "behind the scenes" knowledge and you heard it from us first at Score Restore Credit Repair. That is why we are the best!

Section 2 (The Credit Bureaus and Ratings)

At least 70% of the public has had derogatory information and/or mistakes placed on their credit report. In our society, it's very difficult to lead a normal life and provide the necessities for our families if our credit reports are not in great shape. With even a few derogatory accounts, most all businesses jump at the opportunity to charge you higher interest rates - if you can be approved at all.

For example, a car loan for $20,000 over five years at a 25% interest rate would require you to pay $578.00 per month. That same loan for the same duration of time at 6% would only be $368.00 per month. Going from bad credit to good credit in this example is a savings of $210.00 each and every month. As you can see, this is an annual savings of $2,520.00 and a total savings of $11,520.00 over the life of this loan.

Most people in this country believe in something called "forgiveness." Unfortunately, the credit bureaus do not. In fact, they will penalize you whether you are trying to do the right thing or not. These penalties can stay on your report for seven to ten years, whether you have paid these debts or not.

There are all sorts of reasons why a good person can end up with bad credit. It could have been the result of a bad marriage; laid off, uncontrollable medical problems or maybe we were never properly educated about credit and its importance in our lives.

With the knowledge that we'll provide you in this short "Credit Education Course", you'll be able to change the quality of your life-style. However, it's also our hope that you'll learn from past mistakes and keep your credit in "A-1" condition for yourself and for your family's sake.

It's important for you to know that there are many people getting into the "credit repair" business that don't know what they're doing. Most of them would be lucky to eliminate, reduce, or change 25% to 50% of your derogatory accounts. The one thing they are good at is charging you - usually $1,000 to $2,500 per client and additional fees for successfully removing and negative items from the report. On the other hand, the credit bureaus will try to discourage you from restoring your reports and may tell you that it's not possible in less than seven to ten years.

Ignore them!

The process for correcting and/or restoring your credit varies from time to time. It's a known fact that there are approximately 2,000 credit bureaus in the United States. Don't panic! There are only three that matter. The first is Equifax, which primarily covers the South. Trans Union covers the North, and Experian covers the West. Between these three credit bureaus, they cover the nation.

By rule of thumb, the larger the creditor, the more likely they are to use more than one credit bureau. For example, a company like Ford Motor Corporation will utilize all three credit bureaus, whereas a local company may only utilize one. When restoring your credit, it is a good idea to restore with all three credit bureaus. The names, phone numbers, mailing addresses, and websites are listed below.

Equifax 800-685-1111 P. O. Box 105873 Atlanta, GA 30348 www.equifax.com

Trans Union 800-888-4213 P. O. Box 1000 Chester, PA 19022 www.transunion.com

Experian 888-322-5583 P. O. Box 2104 Allen, TX 75013 www.experian.com

Are credit ratings important? Of course, the answer is yes! Their purpose is to inform the companies you want to do business with of your capability to repay a loan. Generally, the higher the credit score, the easier you will qualify for a loan.

There are two main things that affect your score in a negative way.

1. Bad (Adverse) Credit History

2. The Amount of Debt Currently Owed

As the debt goes down, the score rises. If your scores are generally in the 300 to 500 ranges, chances are you won't be approved for credit. For the few exceptions that are approved, you will be assessed as a high risk and will have to pay excessive interest and other related fees.

Different loaning institutions establish different criteria for approval and all vary somewhat. Most of them will approve loans that read a 620 credit rating or better as long as you meet their other criteria such as a stable job and adequate income. If your score reaches at least 720, most places will look at this rating as automatic approval. The goal for everyone is to obtain a high score and then take good care of it.

Section 3 (Why paying a charge-off can hurt you)

When it comes to doing the right thing for your credit score, being the good guy can definitely do you more harm than good in some cases. Pay attention to this article because this might be one of the most important pieces of information you learn in this business.

Before we begin, let's make one thing clear. For those of you who think we're about to tell you how much better it is to ignore your debts, you might want to get that out of your head right now. We would never advise anyone not to pay off debts. In fact, it's always recommended for everyone to either pay or at least settle all debts they have because it will always improve their situation over time.

Now, with that said, Score Restore Credit Repair can remove unpaid balances such as charge-off's, collections, judgments, student loans, tax liens, medical bills, etc., but that doesn't mean it's just better not to pay them or that you will be released from that debt permanently. It simply means that we can remove it from your credit reports. That's it! If the company chooses to file a civil suit to get the money, they are within their rights and we are not responsible.

When you acquire a charge-off on your credit reports, whether you choose to pay it or not, you are actually about to be hit twice. The reason for this is, once you have received a charge-off, that company will then sell the debt for about .10 cents on the dollar to a collection company. Once this happens, the collection company then places themselves happily on your credit reports just before they start calling you. The good news is most of the time collections companies only report the first month and that's it. The bad news is you now have a charge-off and a collection on your credit reports from the same debt. Now we hope you are starting to see how the (once very small) hole is starting to get deeper and deeper.

Let us first describe the scenario you are looking at if you choose not to pay the debt. Keep in mind, we can remove this but if you don't settle or pay the debt, the collection company will sell it off to other collection companies and the debt will get passed around for years. Let's say you don't pay it and 2 years goes by. You may have used our services and everything is off and you are feeling happy. One day you pull your credit and you notice a collection company has your old debt and they are trying to collect once again. Now you have an old problem that has turn into a new problem. Our advice is: Pay it or settle it!

Here's why…

That debt is going to haunt you until you do one of those two things. Now, you are going to have to hire a company like ours in order to have the same debt removed that you already paid someone to remove already. You have to ask yourself how much money you are willing to spend to keep removing this unpaid debt. Eventually, the amount of money you are spending to have that debt removed will be greater than the debt itself.

Here is how paying or settling your debts can help you… Fact: Anytime you choose to pay or settle your debts it will increase your credit score, even if the debt you are choosing to pay or settle is a charge-off, collection, etc. A big percentage of your credit score has to do with the amount of debt you owe, even if that debt is "bad debt" so the more you pay off, the better off your score will be. Now, if it's "bad debt" such as a charge-off or collection, then your score may not go up very much. The good news is that you can now hire a credit repair service like Score Restore Credit Repair and we will delete it forever.

Let's say your debt is 5 years old. What do you do then? Well, this is where it might just hurt you to pay it off. Remember what this entire article is about? It is about, "Why paying a charge-off can hurt you!"

Fact: A charge-off stays on your credit report for 7 years (unless you hire our company). Let's try and get a visual on this shall we? Imagine you and your friend both have a charge-off on your credit reports and they are both 5 years old. You decide to be the good guy and say, "Hey, I'm tired of this darn thing on my report. I'm just going to pay it and get it over with." Your friend says, "Ha! Not me. They have messed me up for this long, I'm never going to pay them now." Well, this is one of those times where your friend is going to come out on top. The secret about this that they don't want you to know is: Accounts are calculated based on the "date of last activity." This means that if you, being the good person you are, decides to pay that charge-off, then it's now going to stay on your report for another 7 years on top of the 5 years it has already been there. On the other hand, your friend doesn't pay and it comes off of their report in another 2 years. How fair is that? It isn't fair at all, but that's what happens. So now, your good faith has caused one charge-off to be on your credit report for a total of 12 years because it's from the "date of last activity." When you pay the debt, it becomes the date of last activity and the year starts over. You can thank our great credit system for that genius calculation. So if your debt is really old, and you can't afford to hire a company like us, then you are better off by not paying that debt.

There is something else that you need to know about paying a charge-off. When you pay a charge-off, the companies will usually trash these records after about 2 years. This helps you because at that point it becomes much easier for that charge-off to be removed as opposed to not paying it. This is another advantage to paying or settling your debts if you can because you are looking at (worse case scenario) 2 years, just a few disputes and goodbye charge-off. We believe by now you have a better understanding of this subject but would like to say a little more about collection companies.

Never ever admit to having money to pay or settle a debt. If you admit to having money, they could choose to come after you legally if they want to. Most of them never go this route, but some do. Most of these companies will settle for .50 cents on the dollar but never admit you have that much. Some collection companies will even settle for .30 cents on the dollar but not likely.

Here is a tip…

Calculate what .50 cents on the dollar of your debt would be. Act like you are going to have to beg, borrow and plea with others just to get .30 cents on the dollar even if you could pay them. Most of the time they will come back and say they will accept .50 on the dollar. They'll typically do this because they are still making money (they bought the debt for only .10 cents on the dollar), so settle it and get it over with and have our company remove it for you.

Ok, so that's it for now. Here are a few key points to remember:

1. - A charge-off stays on your credit for 7 years (unless you hire a company like ours).

2. - Anytime you choose to pay or settle your debts, it will increase your credit score, even if the debt you are choosing to pay or settle is a charge-off, collection, etc.

3. - Accounts are calculated based on the "date of last activity."

4. - When you pay a charge-off, the companies will usually trash these records after about two years, making it easier to remove at a later date.

5. - Never ever admit to having money to pay or settle a debt.

Section 4 (Active accounts versus inactive accounts)

An active account is an account that you are currently paying on and is being updated by the company with which you have the debt. Therefore, an inactive account is one that you have stopped paying on and may still owe the debt, such as a collection or charge-off. In most cases, it's very possible to repair either the active or inactive accounts. Since you're still paying on the active account, the problem is usually with late payments. The solution is to make the account current and erase only the late payments. The restoration of that account will change to an "R-1" or "I-1" status. Inactive accounts such as collections, repossessions, and charge-offs, etc. should be erased entirely with no evidence that they ever existed.

Some people say that credit repair doesn't work.

Please remember that first of all, you do not ask a postal worker for their opinion when you are about to have surgery. Stick with professionals who are qualified in their respective fields. Unfortunately, most people in the credit repair business know very little about what they are doing. Of course, they are happy to charge you from $1,000 to $2,500 for their limited knowledge. For instance, by working with limited knowledge, there will be problems with some accounts reappearing after they've been removed. This can happen, but mainly with the active accounts. If the accounts are still active, it's best to erase the late payments and bring it back to a current status. Then it will remain excellent credit. Inactive accounts (once removed) generally, do not return.

There is some additional information you also need to know. We're sure by now you have heard everyone tell you how important it is to pay off all accounts to a zero balance so you can have a great credit score, right? Well, the reality of this is that most people can't and the people telling you this information are only half correct. Sure, if you have no debt then your score will go up, for now that is. Here is what they don't tell you…Creditors and the credit bureaus like to see some sort of activity. If you pay an account off to a zero balance and don't spend another dime on the account within 6 months, it'll go dormant, meaning your score will drop from lack of activity. On the other hand, if you spend just $10.00 on it and pay it off every month, then your score will increase over time because it shows that you're not only still active with the account, but you are paying it off every time.

Never close a revolving account because it will drop your score. Let it go dormant if you plan to close it so you won't decrease your total credit limit. We will cover this more in detail later so don't worry about that right now.

Section 5 (What causes sudden changes in your credit score?)

What causes sudden changes in your credit score? This is a very common question and the answers are pretty much what you think they are. Let's talk about the obvious reasons first. The main reason for a sudden credit score change is going to be a late payment of any kind. Now, any negative item is going to change your score but a late payment is going to have an immediate negative effect on your credit score. A late payment, especially on a revolving credit account, is going to hit you the hardest. Just one late payment can cost you up to 100 points even if it's on something as simple as a power bill. This hardly seems fair, but this is the world we live in and the system we have to put up with.

The most beneficial item you could place on your credit report is a revolving account in good standing. Having two or three of these types of accounts will increase your score in a timely manner. However, keep in mind that they will destroy your credit in record time if you choose to be late on these types of accounts. If you pay your bills on time, these accounts will only help you. If you don't pay your bills on time, we wouldn't suggest having any revolving accounts until you are capable of the financial responsibility.

Another reason your score may suddenly drop is "Debt". We have a lot of people calling and emailing with this question: "I don't understand what is going on. My score has dropped 20 points in the last 2 weeks and I have done nothing different. I am paying all my bills on time. What is going on?" The answer to this question is simple. You are spending your available credit. You might be using your credit card to buy groceries or pay a bill. If you spend your available credit, your score will drop. The closer you get to your high credit limit, the lower your score is going to go regardless of how many negative items are on your file. Let us give you an example…

Most credit repair companies (not us) will lead you to believe that they can increase your score under any circumstance. If you have spoken to any of our staff, you will never hear them tell you that. We had a gentleman sent over to us recently. He had no negative items on his credit report and everything else looked fine but his score was still below 600. There were two major problems with his credit reports:

1. - Too much debt 2. - Not enough credit history

Too much debt is what gets most people…

When they hire a credit repair company to work on their credit files, they are told (mostly by the false information on the Internet) that their score is going to go up if they just remove all the negative items. So what do they do? While they're getting their file worked on they are still spending more money and accumulating more debt. This is hurting their situation when they should be paying off as much debt as possible to get the maximum credit score increase.

Not enough credit history is crucial…

Once you pay an account off to a zero balance and don't plan on using it again, that account is going to fall off your report in 7 years and will not help you after that point. This is the rest of the reason why this gentleman couldn't get over a 600 on his credit reports. All he had left on his file were accounts that were only 2 years old. While 2 years is still pretty good, most creditors like to see 3, 5 or even 7 years of history on some accounts.

If you aren't building more credit from the time you paid off your other accounts, this will actually hurt you in the long run. Our advice to you is to spend about $10.00 a month on accounts with along credit history just to keep them active so your score will build over time. The bureaus simply want to see consistency in financial responsibility and it's not based on the amount you are paying off.

When your long credit history drops off, you and your credit score will no longer have established credit and your score will drop. The older the credit is on your reports, the better your score is going to be. Anything past 7 years that's paid off will drop off your credit file. Keep this in mind if most of your credit is older credit and you have not established any new credit.

Some people also believe that having no debts to pay is good for your score. This is not true either. Creditors like to see if you can handle some responsibility but if you have no credit at all, this is actually worse then paying off your debts every month as you spend money.

Hint: Don't ever assume that paying off any one thing is going to increase your score any specific number of points. How much any one action will affect your credit score is impossible to tell because it's based on too many other factors.

One of the most important lessons you will learn is this:

Give it time!

People think that if they pay off their debts their score is going to improve immediately. This is only the case if you use a credit repair company that can actually do the job like ours. If you pay off debts but still have negative items left, your score may go up some but not substantially.

Credit repair is not a miracle cure and as a general rule, prepare to be involved in this process for several months. This can be a good thing for you though. Most people who are given something for free often abuse it many times over. If you have to work for it you will appreciate it that much more.

Section 6 (How to get out of Chexsystems)

For a lot of you this is the article that you've have been waiting for. We just want to say this first: This could take some time and patience in some cases but the result will be what you want if you stick with it. This article is going to be fairly short because we know everyone wants to get to the point about how to do this. A lot of our customers are asking us on a regular basis if we can remove information from ChexSystems. If your name has been put into ChexSystems you may find it difficult to get a checking account or write a check for that matter. ChexSystems is governed by the Fair Credit Reporting Act, which allows you to dispute claims against you. You have rights!

The first place you will want to visit is www.chexhelp.com to order a copy of your ChexSystems report. This will allow you to find out what caused you to be placed in their system and will also give you a Consumer ID number. The next step on your journey to checking freedom is to send ChexSystems a letter disputing the negative listing. You need to make a copy of the letter for your files and send the original letter Certified Mail. This will become a legal document. You'll want proof when it was sent out because ChexSystems is required to contact you within 30 days or delete the listing.

The address is:

ChexSystems Customer Relations 12005 Ford Road Suite 600 Dallas, TX 75234.

You will need to include on every letter:

" Your name (printed not signed)

" Your complete address

" Your social security number

" Your Consumer ID number (listed on the ChexSystems report)

" Your bank's name

" The negative listing you are being accused of and the date it occurred

Next, you need to create your letter.

MAKE COPIES OF ALL LETTERS AND SEND THEM CERTIFIED MAIL.

Letter 1: (This is the beginning)

Inform ChexSystems that you have reviewed your report and the items they have listed are inaccurate. Ask them to validate the information from the bank and to send copies of any documentation they have regarding this listing that bear your signature. At the end of the letter, you need to "demand" not ask, "demand" them to remove this inaccurate information. Ask to have the information deleted from the file under your social security number. This could be your only letter. This maybe enough to have them remove your name from the system. Just in case they become difficult and decide not to cooperate, here is what you would do in letter two, 30 days later. Note: Only send this letter once you have received the initial dispute back from them. You need to know the outcome before you send the second letter.

Letter 2: (If your dispute was verified)

Inform ChexSystems that you wish to have a description of the procedure used to determine that the information they sent you was valid. (Looking at a computer screen does not make it valid). Also request a listing of the names, addresses and telephone numbers of the people they contacted at your bank. You will want to request that they respond to your letter in 14 days. If you are not contacted in 14 days you will contact the FTC and your state's Attorney General's office. You can also file a petition in small claims court for items such as Defamation, Violation of the Fair Credit Reporting Act and Negligent Enablement of Identity Fraud.

Note: At this point, if you don't want to go through the headache and you're willing to be patient, you could just go back to letter 1 and re-send, starting that process over again. Basically, you would keep doing letter 1 and letter 2 until it's removed. If you want to go above and beyond then you can also use the strategy of letter 3.

Letter 3: (If your letter did not get a response within 30 days)

Inform ChexSystems that you will file a petition in small claims court for Defamation, Violation of the Fair Credit Reporting Act and Negligent Enablement of Identity Fraud. You can file a petition for $20.00 at your local courthouse. It's very easy to do and maybe the only thing you can do at this stage of the game.

If ChexSystems has removed the negative listing:

Save all documentation that your account has been cleared and keep this information safe. It's possible that ChexSystems has not informed the banks and financial institutions. The documentation will not help you with a sales transaction but it will with a bank when opening an account. As soon as you receive a notice from ChexSystems that your account has been cleared, open a checking account. It's possible that ChexSystems will allow the disputed claim to creep back on to your report, so you'll want to have an account opened by then.

Section 7 (How your credit score is actually calculated)

There are a lot of people who "claim" to know everything about credit. If this is true, why is there conflicting information about credit all over the Internet? If you type in the words, "Credit Repair" on Google, you will get tons of websites with endless amounts of information about credit repair. The problem is that the information is coming from a lot of different places and is not consistent. Credit companies will often put information out on the Internet to sway people from even doing credit repair in the first place. You have to understand that the credit companies don't want to do any work. If you are disputing your credit file you are causing more work for these companies and they don't like this at all. Their logic is if they can put false information in your mind about credit repair in the attempt to scare you out of doing credit repair all together, then that leaves little paperwork for them. Problem solved, right? Wrong! Fortunately, for you there are a select group of individuals out there that can make this system work for you.

Here is an example…

The Internet and the credit companies will tell you that accurate information cannot be removed, only updated. If this is true then how can we remove accurate information every day for people? Everything we do is 100% legal. So how can we do this? We do this by using their system the way it was designed. That is why we succeed every time.

So how is your credit score really calculated? The truth to this question is, no one really knows. The credit companies themselves don't fully understand how their systems calculate some credit files. You could have two exact credit files and the scores will be different. You will find all kinds of charts on the Internet about what percentage of your score is for payment history and what percentage of your score is for debts. This is how your score is really broken up:

1. Payment History (35%) - Do you have any late payments? If so, you are killing your credit score. Just one single late payment can cost you up to 100 points in some cases. - Presence of 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). - Time since past due items (delinquency), adverse public records (if any), or collection items (if any). The longer the record has been there, the less it affects your score but it still has negative affects until they're completely deleted. - Number of past due items on file.

2. Amount Owed or Debt (30%) - Amount owed on accounts. Obviously, the more debt you owe the lower your score will drop. - Amount owed on specific types of accounts. - Number of accounts with balances.

3. Length of Credit History (15%) - Time since accounts opened. Creditors generally like to see a minimum of 2 years on all accounts. 3 years is even better. - Time since account activity. If you pay off an account and leave it dormant with no activity for 6 months your score will drop a little. - In order to get a high 700+ credit score, you must have at least 7 years of credit history on your credit file.

4. New Credit (10%) - Number of recently opened accounts, proportion of accounts that are recently opened, by type of account. - Number of recent credit inquiries. - Time since credit inquiry(s).

5. Types of Credit Used (10%) - Number of (presence, prevalence, and recent information) on various types of accounts (credit cards, retail accounts, installment loans, mortgage, consumer finance accounts, etc.).

That should give you a good idea of what makes up your credit score. There other factors in combination with these so you can see how someone may get confused easily. For example, in order to increase your score quickly, you must have more than one revolving account. You must also be spending on those accounts on regular basis. We're talking about any unsecured credit such as credit cards. You can spend $20.00 a month on a credit card that has a $5,000.00 limit and will increase your score over time. Most people think that because they have a high credit limit that they must spend a lot in order to get significant increase in their score. You can have a credit card with a $500.00 limit and spend only $10.00 a month and you will help your credit score. You will even be able to ask for a limit increase after about 6 months. Installment accounts are also good for your credit but they don't increase your score as much as revolving accounts will. Just remember there is a risk/reward factor here as with everything. If there is a higher risk, there will be a higher reward. Even though your credit score will increase very quickly with revolving accounts, it will also decrease at an even faster rate if you make just one late payment.

Now, we want to set the record straight about credit percentages. A very popular question that we get almost daily is, "how much debt do I need to have in order to maximize my credit score? I heard it was 30%. Is this true?" Yes and no. Your credit score is also determined by your "total credit limit". For example, if you have 10 credit cards and each card has a $1,000 credit limit, most of the information you will find will tell you that as long as you have 30% paid down on each card then you are fine. This is not true. It is 30% of the total credit limit. So, 10 credit cards with a limit of $1,000 = $10,000.00. To maximize your credit score, you should have no more than 30% of $10,000 charged, not 30% of each account. Now, in this case the number comes out to be the same for example purposes but other cases that won't happen. Your score will not fall if you have $500 charged on one card, $200 on another, and $700 on another, as long as the total doesn't add up to exceed more than 30% of your "total credit limit." To maximize your credit score, add up all your credit limits including your house (if you have one). Now, multiply that number by .30. If your debts are higher than that number your score is lower than it could be.

Clients call all the time asking about our program and they think that if all the negative items are removed from their credit files then their score will go up. This is far from the truth simply because all of the above factors are taken into account. Let's say we have a client with 10 accounts on their credit file and 9 of those are bad. Once we remove all 9 accounts, the credit is not going to increase because there isn't enough good credit left. It works the same with people who have just a few negative items but a ton of debt. In order for their score to go up, they must pay down some of the debt or find a way to increase their total credit limit.

Section 8 (Are the credit bureaus really trying to help you?)

Are the credit bureaus really trying to help you? Unfortunately, there is not a "yes" or "no" answer to this question. Let's put it this way…they want you to believe that they are on your side. To understand the answer to this question you must first understand the truth about companies and commerce in this country. Businesses care about one thing and one thing only…. money! They don't care about you. If they don't think they can make money from you they will never deal with you. For example, do you really think that when a mortgage company gives you a 30-year loan (of any type) that they are actually waiting the entire 30 years to collect? They would never make money if they did. I'm not going to get into the details but basically they take your promissory note that you signed at closing, convert it over and 30 days later they have sold the value of that note at least twice.

What does that mean?

That means if you bought a house that costs $500,000.00 on January 1st, by February 1st they have already doubled their money for your note. Most companies can sell it up to six times the value. Technically, they don't even own the house you are in. The best part about this corrupt system is now they have made tons of money on you and as a friendly bonus, they still get to receive your monthly mortgage payments. The credit bureaus work the same way. You have to understand they are in business to make money as well. They are not in your best interest. They look out for themselves. Don't believe what we're telling you? Well, read this entire article and let's see if you feel the same way afterwards.

First lets talk about who pays the credit bureaus. Have you ever wondered why bigger companies report to all 3 major credit companies and smaller companies only report to one? Well, that's because every company has to pay the credit companies in order to report to them. The cost of that service is so high that only the bigger companies can afford to report to all 3.

How does this affect you?

Since the businesses are paying the credit companies to report, they have to get that money back somehow. That is where we come in. The indirect agreement that these companies have with the credit bureaus is this: If the credit bureaus constantly place random errors on your credit report, that means you will maintain a lower than average credit score, which also means the company your trying to get a loan from can charge you higher interest rates on your loan. Therefore, the companies recoup their costs through you, the consumer. If everyone had great credit, the lending institutions couldn't loan you money at a high interest rate and they wouldn't make as much money.

Are you starting to see what we're saying?

This is why it's so difficult for any single individual to have items removed without conflict. This is why you can't simply call your creditor and ask them to send a letter to the bureaus to remove that late payment that you aren't even responsible for. It's a big scam and the joke is on us. Score Restore is working hard everyday to give everyone a fresh start. Our company has the capabilities and the "know how" to fight this. We can't promise time frames, but at least we can get the work done which is more than anyone else can say. Now let's talk about some other issues that are not common knowledge about the credit bureaus.

You know those one page stall letters you get in the mail telling you they are not doing any more research on your file? That is just a scare tactic. We will give you one more example before we end this article. When you sign up for our service, one of the first stall letters you will receive from the credit companies will state this: "Are you using a credit repair company? If so, are they charging you too much? Fill out our brief form and let us know who they are and we will help you." First of all, DON'T EVER FILL OUT ANYTHING FROM THEM, EVER! The law states that you can do credit repair and the catch 22 is this…If you fill out that letter and return it to them you are admitting that you're having credit repair done on your file. At that point, they can lock your file for 10 years preventing you from establishing credit and the best lawyer in the world can't unlock it. What kind of system is that? It only works in their favor. So here you are thinking you are helping them out, they have made it look like they are helping you out when in reality they are trying to lock your file so they can cut down on their paperwork. The most important thing you need to remember is that the credit bureaus are not on your side.

We hope this education course has helped you. It has been our pleasure teaching you this valuable knowledge. Please save this information, pass it around, but don't forget about it. Trust us when we say, you are going to need it now more than ever.