Public filings for credit repair:
Here is a situation that is not uncommon these days:
An individual has a couple of max credit cards and some collection accounts. The accumulated debt is not large enough to file for bankruptcy. Bankruptcy should be the last option anyway. That is basically your personal credit history.
We all know that collection accounts can be negotiated if enough time has elapsed. Of course, you would still have to get the money, but it will be much less. In most cases, you can also work out a payment plan.
That leaves you with maximum credit. A good way to get a positive credit history on your credit (which will result in a higher credit score) is to get another credit card or loan. I think it’s fair to say that in this economy it is difficult to get a lot of credit growth, even with decent credit. Years ago, you could become an authorized user on someone’s credit card and add a positive credit history, which would certainly help you in this situation. The only problem is that becoming an authorized user doesn’t have the same effect on your credit as before. The other option is to borrow money from family or friends to pay off your debt. Mixing family with business is not always a good strategy.
There is another way. UCC presentations. Credit bureaus are connected to a public archival database. They automatically receive all bankruptcy information and links after it is filed at the county, state or federal level. In fact, you can present a certain document that indicates that you have incurred a debt. The credit bureau will pick it up and as a result, it will show up (in one form or another) on your credit report. This is another way to add a positive credit history. This results in your credit score skyrocketing as a positive credit history shows up on your report.
Please understand that this is a completely legal and very effective method. Of course, there is a certain amount of detail, but in the end it is as simple as I make it sound.
Some of the more knowledgeable credit gurus present two or more of these public presentations on their clients’ credit reports to increase credit scores.
The amazing thing is that even if you have filed for bankruptcy, you can use this method to quickly add lines of credit to your credit report. Having two such lines on your report plus a secured card (as an example) will quickly add to a positive credit history.
As a side note: Small amounts of credit are NOT that difficult to obtain after filing for bankruptcy. If you default on a debt, a collection agency can pursue you for many years (depending on your state). If you file for bankruptcy, they CANNOT go after you to try to collect the debt. Also, after one bankruptcy you cannot file for another bankruptcy for another 6 years or so. This gives lenders the satisfaction of knowing that if you defaulted on your loan and just filed for bankruptcy, they can haunt you for many years. As you know, a judgment is likely to be entered against you and there is a possibility that your paycheck or bank account may be deducted.
Going back to the public presentations: in a nutshell, this method that we are advocating eventually has the same effect (even if indirect) as getting a loan and paying it off gradually. We truly believe that this remains one of the best kept secrets of credit enhancement.
Public filings work for both personal and business credit and are very effective.
