Introduction

The credit crisis has been replaced by the credit "chronic." Now more than ever, your ability to weather and recover from the next crisis depends on your credit. You've already lived through a series of financial explosions that caused a "credit winter" and that gave way to a fragile and uneven credit spring thaw. You've heard of the meteor that killed off the dinosaurs by causing a prolonged winter environment around the globe, and of the consequences of an atomic war called a nuclear winter? Well, the same thing can happen to your credit regardless of what causes it. For many people, credit loosens and tightens cyclically. For others, it has been a challenge through good times and bad. Equal access to credit and the benefits it brings have never been fully assured for those new to credit, including immigrants, minorities, and the working poor.

Credit access may have thawed over the last few years, but only for those people who have a solid credit report and credit score. Loan interest rates may be low, but criteria for obtaining the best credit terms are not. Jobs may be readily available or scarce depending on the economy, but regardless, failing a credit review can keep you unemployed in the best of times. Your need for great credit never ends. This book is meant to help you successfully rebuild and manage your credit. Rather than taking an academic approach to the subject of credit, it helps you succeed at integrating credit into your real life. It enables you to make great credit an outcome of the decisions you make every day as you pursue life and happiness. I call it your credit-life connection.

Given today's increasing reliance on credit reporting and credit scores for lending and non-lending decisions making, you need better credit and a higher credit score to access today's credit products, which are an essential part of leading a rewarding life in today's society. Not only are the criteria for the best access to credit very selective, but the penalties for ignorance and failure have multiplied.

And if all this isn't enough, the non-lending use of credit reports is growing seemingly by the day. Updates to this book tell you about new consumer databases that collect information about your medical history, prescription drug use, rental history, banking data, and more. Employers, insurance companies, landlords, and lenders use this information to decide whether to hire or promote you, what insurance rates to give you, whether to rent you an apartment, and whether to offer you new banking products. You need to know what's in these files, and that's one of many things we tell you how to do in this book.

Credit Repair Kit For Dummies comes at a critical time. Credit plays an ever-changing and increasingly important role in your life, regardless of whether you use a credit card. Insurance, employment, home buying or renting, and getting an education with student loans are more dependent than ever on you having good credit. Plus, although the rewards for good credit have never been higher, the penalties for failure - foreclosure, eviction, job problems, mounting debts, collections - have never been greater. For these reasons and more, millions of people are looking for up-to-date, useful, and proven answers from a trusted and knowledgeable resource. If you know the rules of the credit game, you'll get a winning score. That's why we wanted to bring you the best, non-biased information in the industry based on our decades of experience and research.

About This Book

The approach we outline in this book is different because it's low-cost and simple and drives right to the heart of the matter. With this book, you can manage your credit by applying just a few key concepts. Unlike the talk-show approach of making one philosophy fit all after a 15-second question-and-answer period, this book takes the time to give you the concepts and tools you need so that you can apply them to your specific situation and come up with an answer that's custom-tailored to you.

So why this book?

• Because although credit problems can seem incredibly complex and unfair, you can have good credit with a few simple actions that anyone can master. We give you all the tools and insight you need to rebuild your credit (or build it up for the first time).
• Because you may need the advice of an experienced advisor to guide you through a mortgage problem. This book tells you how to find a good resource for credit or bankruptcy counseling.
• Because your credit may be in detention due to crushing student loans. This book can help you find the right solution and then rebuild your credit score as quickly as possible.
• Because you want to get a job or promotion; buy a reliable car to get to your job; start a business; insure your home, apartment, or car; or further your education. If any of these situations applies, you need a good credit record.
• Because you may be one of the millions of people who become victims of personal data theft each year. This book provides valuable information to salvage and protect your identity.
• Because you may be on the brink or even over the cliff of credit trouble. This book gives you budgeting and spending advice that can pull you back from the edge.
• Because the time is right for you to regain control of your credit and your financial peace of mind. This book helps you do just that.

Foolish Assumptions

We assume that you're reading this book because you know that repairing your credit is important, but you may not know all the ins and outs of making credit work for you. Whether your credit is not so great and you want to know how to improve it or your credit is just plain nonexistent and you want to establish it on your own terms, you'll benefit from this book. An understanding of your credit and how the credit system works may be especially important during life's transitions. We assume that this book can be of value to you if you're

• Concerned about your credit report and who may be looking at it
• Concerned about the credit status of a loved one
• Considering what to do about overwhelming debt
• Wondering how to deal with medical bills
• Unsure about the credit impact of remaining in your home or walking away
• Starting over again after filing for bankruptcy
• Taking on or paying back a student loan
• Concerned that your personal information may have been compromised or stolen
• Already in or soon to be in a marriage or partnership
• Recently divorced or in the process of divorcing
• Reestablishing credit after the loss of a spouse or partner
• Hunting for a job or hoping for a promotion
• Establishing credit for the first time
• Wanting to know how to maintain good credit after you get back on track

We assume that you don't have a formal education in credit or personal finance. Even if you do, however, we believe that you can still find practical insights in this book based on our experience and that of others we've helped.

Icons Used in This Book

Icons are those little pictures you see sprinkled in the margins throughout this book. Here's what they mean:

This icon denotes critical information. Considering the state of our own overcrowded memories, we wouldn't ask you to remember anything unless it was really important.

This image of a credit professional - okay, fine, of the Dummies Man - shows up whenever we go into more detail on a concept or rule. If you don't care about the details of how something works or where it came from, feel free to skip these gems.

This lightbulb lets you know that you're reading on-target advice - often little-known insights or recommendations that we've picked up over the years.

This icon serves as a warning, telling you to avoid something that's potentially harmful. Take heed!

Beyond the Book

In addition to the material in the print or e-book you're reading right now, this product also comes with some access-anywhere goodies on the web.

Even though these pages are packed with helpful tips and advice for repairing your credit, we've provided even more tools and resources beyond what's in the book. Go to www.dummies.com/go/creditrepairkitfd5e to find useful forms, worksheets, sample letters, and credit-related legislation and laws. The online material also includes a glossary of commonly used credit-industry terms.

Also, be sure to check out the Cheat Sheet for this book. There you can find contact information for the three major credit bureaus, credit score breakdowns, tips for improving your credit score, and advice on handling an overdue mortgage. Just go to www.dummies.com and type Credit Repair Kit For Dummies Cheat Sheet in the Search box.

Where to Go from Here

You get to choose what happens next. This book is packed with information to help you repair your credit. You can use the table of contents and index to jump directly to the topics of most interest to you, or you can start at the beginning of the book and take it from there. With the information in Credit Repair Kit For Dummies, you can get great credit and keep it great for the long haul. We wish you all the best in achieving your...