How to triage a credit report
When you make the decision to repair your credit on your own, the first question will most likely be “Where do I start?” This is an excellent question, and if you set a good strategy from the start, you will see results much faster. Results will keep you motivated, and feed your hunger for more credit knowledge, which will contribute to more results. Below I am going to share how I evaluate a credit report so that I can get results quick.
The first thing I look for when I look at a credit report is 3rd party collections. A 3rd party collection agency is an organization that buys bad debt from the original creditor for pennies on the dollar. After they purchase the debt they will then come after you to collect on the full amount. For example, you have a $500 dollar outstanding debt with Wal-mart on a credit card, for various reasons Wal-mart does not want to waste the time to collect, and would rather write-off the debt. They then sell it to a 3rd party collection agency for $50 dollars, and come after you to collect the full $500.
I consider these to be the easiest to get deleted, because most of the time they have not taken the time to obtain the proper documentation to validate the debt. In my experience a simple Debt Validation Letter will accomplish getting the account deleted.
Go after 3rd party collections first.
After I have taken care of 3rd party collections, I then look for the next easiest item to work on. These are original creditors that may have charged off accounts, but the balance may have been too small for them to justify the expense of collection, and too small for a collection agency to be interested in. They will show up on the credit report with a status of “Late” and will have a balance showing. The fastest way to take care of these type of accounts is to pay them, then have the original creditor update the status to “Paid”
Finally, all the more difficult stuff has been saved for last, Original Creditors with high balances, judgments, and late payments. I save these for last because of the time required to get deletions. By this time you will have had some success, and will not get discouraged easily.
Save difficult accounts for last.
To wrap it up, in a effort to keep my motivation high. I rank the account in the order I believe will get delete fastest. Deletions make me happy, and will motivate me to invest more time in knowledge. The more knowledge I have the easier accounts get deleted.
Let me know in the comments which accounts are easiest to get deleted in your experience
Thanks for taking the time to read this post, and I hope it helps you in some way. If you want to read more about credit repair advice, and other articles that will improve your Health, Wealth, Love, and Happiness, SUBSCRIBE to The Round Life Blog on the right hand side of the screen.
If you have a credit repair question please leave it in the comments below. I will use questions as topics for future articles.
"Set a good strategy from the start, you will see results much faster."