FIRE International has the most effective Credit Correction Program available
to you today. FIRE International uses the Fair Credit Reporting Act (FCRA),
which was established by the federal government to protect an individual’s
rights about the information reported on their credit reports. When
reporting information on your credit reports the creditors’
and the credit bureaus’ have to comply with over 300 points
of law for the information on your credit report to be valid and remain.
With F.I.R.E’s extensive knowledge of the laws, we challenge
the creditors and the credit bureaus to all these points of the law.
When creditors or credit reporting agencies fail to abide by these
300 plus points of law, the result is the negative information has
to be removed, forever. We are so confident in our process, if you
do not see an improvement in your credit scores, that FIRE International offers
a money back guarantee. FIRE International is one of the only Debt Settlement
companies, which will not only get you debt free, but also follows
though to clean up your credit reports. With both of F.I.R.E’s
programs, you will become debt free, plus have your credit reports
THINGS YOU SHOULD KNOW ABOUT CREDIT
Credit is a powerful tool. Credit cards, loans, and other types
of credit are convenient to use, make managing your money easier,
and can be especially useful during emergencies. Credit makes it
easier to pay for large expenses such as cars and home improvements,
and a mortgage can put you in a home without needing cash for the
entire purchase price.
But credit is also a big responsibility. When you use credit improperly,
it can lead to unmanageable debt and financial crisis. The more
you know about credit, how to manage it, and the warning signs when
you may need help with managing credit, the easier it is to use
the powerful tool wisely.
We cannot stress enough the importance of staying out of trouble
as a credit-rebuilding tool. Even doing nothing can help a bad credit
report, but repeating poor credit habits can make things much worse.
Creditors can be somewhat understanding of a bad credit incident,
if corrected. This can be particularly true when the bad credit
originated with problems outside of the debtors control such as
emergency medical bills. Repeated bad credit behavior indicates
a problem with deeper roots and looks to be a stronger indication
that future credit worthiness looks shaky. If you want your credit
to improve, be perfect with your new credit, as well as old credit
where accounts remain open.
To accelerate the rebuilding process try to have at least three
active credit lines open, and be perfect with them. Car loans or
mortgages count if you still make payments, as well as old credit
cards if they can still be used. If you need to obtain new credit
store cards or gas cards can be easier to obtain than major credit
cards. If even those fall beyond reach any one can be accepted for
secured credit cards, make sure when taking a new credit for rebuilding
purposes that the creditor reports to the major credit agencies.
Not all creditors submit information to the credit bureaus, and
almost no debit card or check card issuers do, even ones with a
MasterCard or Visa logo. Use the credit you have obtained and make
your payments on time (did we mention that we can't stress this
enough). On time means never being 30 days late. At fifteen days
you may pay a late fee, but late items must hit 30 days overdue
before they will be reported. Using credit does not mean abusing
it, you need not run the card up to its limit. On the other hand,
leaving the card in your wallet will not help rebuild your credit
as much as positive usage.
RESOLVE PAST PROBLEMS
Before beginning a full-scale attack on one's bad credit and repair
of a negative credit report the person must first address each of
the negative items and resolve them. Resolution may take many forms,
which we will explore here. From a credit repair standpoint the
significant starting point is "closing the book" on each
of the bad credit items on the credit report. A horrible but old
and closed bad credit item most often gets viewed better than an
open current bad credit item. Believe it or not, a viable resolution
method turns out to be a Chapter 7 bankruptcy. In this context the
bankruptcy paves the way to the first step of credit repair by putting
an end to the old bad credit items. While bankruptcy adds it's own
significantly terrible credit reporting item, bankruptcy by definition
will be "resolved" when the case ends. In the early stages
of bad a credit incident the easiest and best solution can be catching
up on a payment. As with many of the circumstances we will discuss
the prior late payment will still appear on the credit report. The
important point being discussed in this section is resolving the
initial issue. Catching up on a past due payment constitutes resolution.
When payments continue delinquent for a long enough time catching
up may become out of reach. Negotiating a payment plan with the
creditor either directly or with the aid of a credit counselor constitutes
resolution of the item for credit repair purposes. Settlement of
a debt, even at a fraction of the original amount due, means resolution.
Eventually banks charges off unpaid debt balances. A charge off
does not mean that a forgiveness of debt occurs, it only indicates
the creditor has made an accounting notation that they do not believe
that the debt will ever be repaid. A charge off represents a significant
black mark on one's credit report. Charge offs can be noted in several
ways. A charge off which is unresolved appears as such on a credit
report. Charge offs can be resolved the same as any other debt by
either paying them in full, paying them at a discount, making a
payment over time or filing a bankruptcy. Aside from the obvious
downside of a charge off in that it paints the debtor in a very
poor light, an open unpaid charge off indicates to a potential creditor
reading your report, not only was there financial trouble at one
time but further more that the debtor has not made any effort to
deal with the problems. A bankruptcy is certainly not a favorite
resolution by the creditors but it shows that the debtors have recognized
there is a problem and has taken some action. In terms of a credit
report a bankruptcy is not a clean slate. A bankruptcy remains a
nasty item on one's credit report as long as ten years. On the positive
side, however, the bankruptcy is a clear time or "line in the
sand", from which the debtor can begin to rebuild. With open
unresolved charge offs there is no such point in time where rebuilding
can start. Open unresolved charge offs remaining glaring poor credit
cavities on ones credit report.
To convert this concept into terminology in the medical or financial
industry, the first step is to "stop the bleeding". Many
people look at their financial picture and think they must cure
the entire situation in one huge step. Most times this is neither
something an individual with limited resources has the ability to
do nor something anyone with unlimited resources could achieve.
The debt and credit resolution process takes several steps. One
does not go to a hospital with a gaping wound and expect to walk
out perfectly cured the same evening. In the first step the doctor
stops the bleeding then, as we will see, there must be time for
healing of the wound itself followed by an inevitable scar and perhaps
in time fading of the scar itself or cosmetic surgery.
The Answer is clearly no. If your loan broker tells you otherwise,
replace him or her. Closing accounts can never help your credit
score, and may hurt it. While it is true that having too many open
accounts can hurt your score, do not compound the problem by closing
them. Once you have opened the accounts, you've already done the
damage and you cannot repair this damage by closing them. In fact
closing them might actually make things worse.
The credit score looks at the difference between your available
credit and what you're using. Shut down accounts, and your total
available credit shrinks, making your balances appear larger. This
typically hurts your score. The score also tracks the length of
your credit history. Closing older accounts can also make your credit
history look younger than it actually is, which can hurt your score.
Rather than closing accounts, pay down your credit card debt. That's
something that actually can and almost always will improve your
WILL CHECKING ONE’S SCORE HURT
Applying for new credit is generally what hurts your score. Ordering
a copy of your own credit report or credit score doesn't count.
Those mass inquiries made by credit card lenders, who are trying
to decide whether to send you an offer for a pre-approved card,
also aren't going to hurt you, either unless you actually take them
up on their offers.
If you want to minimize the damage from credit inquiries, make sure
that when you shop for a mortgage you do so in a fairly short period
of time. The FICO score treats multiple inquiries in a 14-day period
as just one inquiry and ignores all inquiries made within 30 days
prior to the day the score is computed. For most people, one inquiry
will generally knock no more than 5 points off a score (and scores
typically run from 300 to 850, so that's not a big percentage).