The process of restoring your credit is one that is a must in today's society.
You will need it to get the best deal on everything from car loans to car insurance.
In this article I will give you a proven formula you can use to increase your credit rating regardless of your current credit situation.
The first thing you would need to do is know your credit standing.
You need to find the answers to questions like How many collection accounts do I have on my credit? How many of those collection accounts are mine? How many of them are over seven years old? Collection accounts are one of the common negative entries on your credit report and you want to have them removed.
If you have collection accounts that are older than a few years the strategy would be to "challenge" the accounts with the credit bureaus and this can be done with a simple letter.
On the other had if you have collection accounts that are more recent your approach is a little different.
A "challenge" with the bureaus may not work so you want to deal directly with the collection agency.
See if you can settle the account with them in exchange for a DELETION from your report.
Afterall, they are after money and you want a good credit rating.
It is important to note that you can negotiate an amount lower than the total original balance, mainly because it has been written off by the company as bad debt.
And lastly, collection accounts that are older than seven years old need to be delete from your account according to the credit laws.