Are you using re-aging credit accounts as a credit repair tool? This is a little unknown method to having the clock go for clients who are delinquent on their accounts to bounced back to current and restore negative credit marks.

Remember some techniques do not require just sending dispute letters. To be an effective credit consultant knowing things like re-aging a credit account is very valuable and not frequently or known widespread. Here is the procedure.

Have the client contact his creditor and request a re-age program.

• The borrower should demonstrate a renewed willingness and ability to pay.
• The credit card account should be at least nine months old.
• The borrower should have made at least three consecutive minimum monthly payments or the equivalent sum.

And there’s more. Federal regulators also placed limits on the number of times an account could be re-aged.

A creditor may re-age an account only once in a 12-month period and twice in a five-year period for open-ended accounts such as credit cards.

More Complete details:

Reaging a past-due account means your creditor sets the account due date back to current. Let’s say you are 5 months behind on your credit card bill and your creditor agrees to reage your account thus wiping out those 5 months! Sounds great and it is possible to have your accounts re-aged but not all creditors are willing to do so, and they must follow federal guidelines when deciding whether or not to reage your accounts. Creditors may only re-age your account once in a 12-month period and twice in a five-year period for open-ended accounts (credit cards, charge cards, store cards etc.).

To be considered for re-aging:

• You must demonstrate a renewed willingness and ability to pay;
• Your credit card account should be at least 9 months old;
• You need to make at least three consecutive minimum monthly payments;

Creditors DO NOT have to reage past due accounts. Some creditors never re-age accounts, some will only reage an account one time and other creditors follow the federal guidelines that allow once in a 12-month period or twice every five years. It simply depends on the creditor’s reaging policy.

Some creditors will re-age past due accounts if you agree to enter a debt-workout program or debt-management plan. Once enrolled in a debt-management program, creditors typically charge lower interest rates, stop charging late fees and re-age the account, bring it current. Be careful! Only sign up with a debt management company that you can trust. There are thousands of credit-counseling and debt-consolidation companies looking to make a quick buck by preying on stressed-out, financially vulnerable consumers. Some companies are guilty of shoddy service and sky-high fees and others are huge scams.

If you’ve fallen behind on your bills, especially credit cards, don’t panic. You may have several good options available to you. Your success starts by assessing your current situation and finding a trusted service provider that is licensed in your state.

Don’t ask for re-aging if you will not be able to keep up with the payments. In other words, don’t waste your reaging opportunity! It’s better to wait until you can truly keep up the payments before approaching your creditors and asking them to re-age your account. When asking creditors to reage your accounts, be sure to get it in writing! If your creditor won’t put the details of your re-aging program in writing, do it yourself. Keep a record of the conversation and send a copy of it to your creditor (keep a copy for yourself).