Reducing your debt-to-income ratio: An individual's debt-to-income ratio is a significantly large portion of his credit score model (30%). This ratio figure clearly indicates out how much debt you should bear (i.e. measures your true affordability), compared to how much credit you have. Great credit situation is getting your loans paid down to under 30%. Of course, the most healthy credit status is to keep them at 0% . A very important factor is having your open accounts. Never close an account just because you spend it too much, because closing a balance carrying account destroys the debt-income ratio.
What is the utility of this? You have the cash now, you are going to repay your debts...& get rid of your tension. And that, of course leaves improvements in your credit history. No more need to get into that lengthy, time consuming official procedures with credit bureaus.
Disputing Negative Items: If & when you find any inaccurate or unverifiable items or costs mounted up on your credit, never hesitate to check with Credit bureaus. You got the right to ask credit bureaus to inquire & investigate with the creditors who report the "bad items". If those are not verified, bureau guys will get them removed.
However, such a system, obviously, got some negative sides.
Negative: Almost all the disputes regarding "bad item reporting" complaints take long time to be resolved....sometimes, even around 90 days to complete. Then, the spider net of official formalities, process hurdles, lengthy investigation etc. etc. add more to the inconvenience of the debtors who filed it, leading to their discouragement.
Working with the creditors: Now a days several credit restoration companies are going for tie-ups directly with creditors available in market. They do it by writing a "goodwill" letter which asks the creditors to get into a profitable & peaceful commercial relationship at the cost of just "ignoring" the transgression. In order to enhance their intervention with creditor's activities into more legal action, some firms even go ahead to emerge & entitle themselves in market as a law firm.