If you don’t want to read it, you can watch this video.
The first thing you have to do to stop getting into credit trouble is to live below your means. What people do is live above their means and use credit to help them do this. Stop doing that.
The second way you can have good credit forever and ever is to stop using your credit cards. I know people are saying, “No. No. No Glendon. I want to use credit cards because I want to get stuff. I want to get the new TV. I want to get the new washer and dryer.”
The problem is you don’t have the money to buy that stuff, which brings me to point three. You need to make more money. I feel for you deep in my heart. You’ve got to make more money. This is the blueprint for having perfect credit.
In the USA, if you have 10K in cash saved, you are ahead of most people. The average person in this country makes $2500 to $4500 bring home. Let’s not deal with gross income because that is misleading. If you doubled your $2500K to $5K or your $4500 to $9K, you double your purchasing power. That’s what you need to focus on.
You need to start a business. Once you understand how to start a business, it is not that difficult. It’s more about knowing what to do and when to do it. Double or triple your expected time to get there.
Let’s say you’re coming out strong and you think it’s going to take you three months. Let’s use Cameron’s law and triple that and say it’s really going to take you a year. This is what gets most people. Many people think, hey I’m doing something and I need results in 60 days.
Your business does not really give a damn if you need results in 60 days. Your business is going to give you the results once you do the right things. That’s how it is. You’ve got to learn how to stroke your business right.
The fourth step is very important. Once you get the derogatory credit data cleaned up, you have to make a promise to yourself to stay ahead of the curve, which means you have to have an emergency fund of $10K. That way you won’t need credit, because you have the money. You need to live your life in such a way where credit is not a big part of it.
Most people are overleveraged. That way if one thing goes wrong, then you’re in trouble. Some people are better leveraged. They can withstand hard punches. If you are in that position, you aren’t overleveraged.
That’s how you go ahead and develop bulletproof credit. This is how you set yourself apart from everyone else.
Here’s the thing. You’re going out here and fixing your credit and you’re fixing your credit before you fix your life. You got into this situation because you were overspending, trying to flex on an income you can’t flex on.
You don’t have the new BMW or Audi because your budget dictates that you can have a Honda or Toyota. If you buy a new BMW on a Honda budget, as long as everything is perfect, you’re good. Now how often does everything stay perfect.
About fixing your credit, it is probably going to take three of four times longer to fix it than you think. Here are your tradelines you should apply for: Visa, Master Card, Sears and Macy’s. Those are your tradelines. Anything other than that is probably not going to work the same.
Let’s get into the real nitty gritty of the credit repair. You must be diligent.
Do not dispute credit online. You’ve got to use paper. When you send that letter out, send it certified mail. You can’t send it by regular mail because you can’t prove you sent it.
Here’s a secret. One of the ways you can make the credit bureau take something negative off your credit report is to use policy and procedure. If you need details, you’ve got to take the course. I will point you in the right direction for free in these blogs/videos. If you’re smart enough to figure it out, cool!
Back to challenging those credit entries. You send it certified mail. We get the certified mail back. Then you have to forcefully go to the credit bureau and say, “Look, you didn’t investigate this.” Now, they know most people are not going to sue even though they are threatened constantly that they will be sued. At the end of the month, a very small number of people follow though and actually sue. That’s when they fold.
When you catch them slipping, you have to have the ability and desire to sue. What I mean is you have to familiarize yourself with the Fair Credit Act. You need to have your lawsuit paperwork filled out and send a copy with your letter to the Credit Bureau. You can go online or to the courthouse to fill that stuff out. They will pay attention to that because 99% of people will not do that.
Those infractions add up. I had them on five infractions. Each one was $1000. They have the choice to delete or pay up. Guess what? They deleted the credit challenges I made instead of paying up.
Here’s something else you may not know. There’s what is called suppression and then there’s deletion. Suppression is when the challenged credit issues don’t show up on your credit report. But if a background check or manual credit report is pulled for a large life insurance policy or a mortgage loan, it is still on there. Comparatively, if it is deleted, it is gone from everything.
There is no resurfacing if it is deleted. That’s something else. When they suppress stuff, sometimes it will show up again. So, you want full deletion. I got a tax lien off. I got repossession of a car deleted. This stuff was true. The reason it worked is because I caught them slipping. This is the reason you must follow all the procedures and tips.
Jurisdiction can also be a big issue. I challenged one debt I had based on jurisdiction. The suit against me was dismissed because the collector did not have jurisdiction to sue me.
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