Effective credit repair should incorporate every tool capable of cleaning up your credit report and improving your credit scores. Credit card re-ageing is a perfect credit repair tool, and is capable of bringing a past due account current, while simultaneously removing all of the derogatory history. If you qualify, the creditor will roll the entire past due balance into your current balance and have the credit bureaus delete all of the late payments that were ever reported. It is credit repair magic, but you have to qualify. Here’s the story.
A Credit Repair Opportunity
In June of 2000 the Federal Financial Institutions Examination Council (FFIEC) established these re-ageing guidelines for the stated purpose of helping “borrowers overcome temporary financial difficulties, such as loss of job, medical emergency, or change in family circumstances like loss of a family member”. As a point of interest, the FFIEC is the interagency council set up by the Federal Reserve, The FDIC, and the Office of the Comptroller of the Currency to establish standards for financial institutions. These guidelines must be observed by all credit card issuers with the exception of credit unions. The language of the guidelines allows Credit card issuers the flexibility of making a conservative interpretation at their discretion; all the more reason to understand the process before utilizing this credit repair opportunity. Here’s how this credit repair opportunity works.
The account in question must have been open for a minimum of six months. It can be seriously past due, but cannot have been charged off or been assigned or sold to a collector. You must communicate clearly to the creditor that the event that caused you to fall behind is now in the past, and you are ready to make all of your payments on time from now on. The guidelines mention acceptable causes of past financial problems and include loss of job, medical emergency, or loss of a family member. Other events may be acceptable, but you should be ready to state your case and indicate that you will be a great customer in the future.
The Credit Repair Payoff
Once you are accepted into a re-aging program you must make three monthly payments on time before the process is finalized. After your three payments are made any past due balance will be rolled into your current balance and all derogatory history will be deleted from your credit record; credit repair perfection. You can re-age as many accounts as you wish, but you cannot re-age the same account more than once in a one year timeframe or more than two times in any five year period. If you are in our credit repair program we will help you determine your eligibility and coach you in advance of your application. And as always, please call us if you have any credit repair questions. We will be happy to help!