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Credit Repair, How To
by Mike Herman
Credit repair, is in a word, vital to reestablishing your credit. Unless you plan to never use your credit again, then you have to find a way to fix it.
In the world we live in, having credit available to you is important, even if you don’t use it regularly.
What do you do, then when something goes wrong and you end up with bad credit?
Most of us start out wanting to have good credit, but things just go wrong.
In order to fix them, you need to use credit repair.
However repairing credit is not easy.
There is no quick solution.
You will need time and patience not to mention good habits to make it happen.
Your first priority is to stop using your credit cards.
Stop putting more on them.
You will want to talk to your creditors and ask them to help you.
They may be able to help you pay off your credit in several ways.
They may be willing to give you more time between payments.
They may offer to allow you to pay it off without charging additional finance charges if you agree to pay a certain amount monthly.
Or, they may even allow you to pay off your credit for pennies on the dollar.
This means that if you owe a creditor $1000 they may allow you to pay it off by only paying $700 if you pay it off in a certain manner.
In the end, the only type of credit repair that will actually improve your credit rating is time and good habits.
By paying off any money that you owe, you can gradually reestablish your credit slowly.
Be smart though, and do not get yourself into the same situation you got into.
Talking to your creditors can be a good first step to take.
It may help to stop the negative ratings and actually get you a few good marks.
In the end, no matter why you got into the situation you are in, you will need to take better care to stop this from happening again.
About the Author
For continually updated information, tools and resources visit the CreditAndCreditReports.com blog.
Restore Your Credit Rating And Reduce Debts by Ken Austin
Your credit rating affects many areas of your life. Opening new credit accounts, buying a home or car, getting a new job, and receiving discounts on insurance rates are just a few of the things that are impacted by your credit score. Millions of people have inaccurate information, errors, and out dated information on their credit report. These errors can cause your credit score to drop dramatically, which adversely affects numerous aspects of your life. Credit repair services can help you raise your credit score and get rid of old accounts and inaccurate information.
Creditors often report information that is incorrect and you may even have accounts on your credit report that do not belong to you. Even credit accounts that are listed correctly can be removed form your credit report if the creditor cannot prove the information is accurate and up to date. You can legally rid yourself of many items on your credit report and raise your credit score. This will enable you to make important purchases and take advantages of discounts that would otherwise be unavailable to you. The major credit bureaus control a major portion of our lives. It is important to be diligent in monitoring your credit report and make certain any inaccurate information is removed.
Credit repair services can make a huge difference in your quality of life and enable you to do the things that are important to you. When you repair your credit you have a fresh start in building a positive credit history and keeping your credit score at a desirable level. Low credit scores can mean you will pay high interest rates and you could even be denied credit in many cases. You can find the path to freedom and security when you take advantage of the many credit repair services that are offered by reputable companies and organizations.
About the Author
Ken Austin is the webmaster at http://www.hazeydee.com
and http://creditrelief.kraustin.com
What is Credit Repair and How Can It Help You? by Scott Brown
There are millions of consumer credit reports on file from mainly three major reporting bureaus which include Trans Union, Experian, and Equifax. These credit gathering agencies store huge amounts of data about every person that takes out a loan, credit card, or any other line of credit. Information is reported to these credit bureaus when you apply for credit, apply for some jobs, or even apply for an insurance policy.
Because of the huge amounts of data being gathered and reported there is a lot of room for errors. Credit Repair is a way of disputing or correcting these errors made by credit bureaus and creditors. Credit Repair can also be a way of optimizing your credit report or credit score.
Disputing, correcting and deleting erroneous negative accounts on your credit report is very important to your financial well being. The better your credit report the better your credit score. The better your credit score the better the interest rates you will be offered. For example: A 30 year home mortgage of $100,000 will cost you almost $25,000 more from just 1% of interest! This 1% more of interest could be from only one late payment on your credit report!
It’s not just home mortgages lenders that raise your interest rates. It’s just about every other type of loan out there including: auto loans, credit cards, personal loans, and business loans. Even insurance companies are now using your credit scores to figure premiums.
Now with this in mind start thinking about all the extra money you are paying because your credit report is less than perfect. Credit Repair is starting to sound better and better isn’t it?
To repair items in your credit report you must get a copy of your reports from each of the credit reporting bureaus either by mail or internet. Make copies for your records. Then very carefully go over your reports and find any negative accounts. Highlight the negative items to be disputed. Send the highlighted copies with a letter describing each account and why you are disputing them (not my account, never late, outdated, etc.) to each of the credit bureaus. Be sure to tell the bureau what you want done with the account if it is not verified (delete it, correct it, update it etc.)
The credit bureaus must investigate these items and if they can’t verify them within 30 days they must be deleted or corrected. The credit bureaus themselves have to get verification from the creditor of the account in dispute. Often times the creditor does not have the records to show or verify that the account is indeed accurate or that it even exists.
You can now see how disputing negative items can get them deleted or corrected on your credit report. You can even change negative items to positive items by simply telling the credit bureau that the items in dispute are in fact yours but they were never late.
If you have errors or negative items on your credit report using credit repair to fix these accounts can save you thousands of dollars. Credit repair is a valuable tool of personal finance.
About the Author
Scott Brown is a fair credit reporting advocate and the author of his own website Credit Repair, a free information site dedicated to help consumers repair bad credit and optimize their credit reports and credit scores. For more indepth information on the above topic please visit Credit Repair.
Credit Repair Services vs. 'Do-It-Yourself' Credit Repairby Todd Disraeli
Millions of Americans suffer because of bad credit these days, and almost all of these people turn to the Internet for help. In the past 5 years hundreds of ‘internet-based’ credit repair services have sprung up , preying on consumers in need of real help. Most of these companies have built less than desirable reputations by over-promising and under-delivering; all the while taking millions of dollars from those in need.
For this week’s article I am going to compare ‘internet based’ credit repair services to repairing your credit yourself using a system like Loan Saver PRO: for Consumers; you can learn more about their system here - http://www.loansaverpro.com/index-1.html. Hopefully I will open your eyes to the fact that you can do everything they can do, for far less money, and achieve even better results in far less time.
Cost Comparison
Credit Repair Service – Almost every credit repair company found on the internet charges a set-up fee of at least $60 and an ongoing monthly fee of at least $49. They initially tell you that your credit repair work will probably take around 3 months to complete. In reality, your credit repair work ends up taking close to a year or more and now you’ve paid them at least $600. The goal of most credit repair services is to take their time repairing your credit so they can keep debiting your bank account.
Do-It Yourself Credit Repair – There are several ‘do-it-yourself’ credit repair systems found on the internet. Most of these systems cost no more than $40, which is less than the set-up fees for most credit repair services, plus there is no monthly fee. Some of these products are good and some are bad—whichever one you choose, don’t use a ‘do-it-yourself’ system that uses ’pre-made’ letters to launch disputes; I’ll explain this in more detail below.
Dispute Letters
Credit Repair Service – Almost every ‘internet based’ credit repair service, and some ‘do-it-yourself’ credit repair systems, use ‘pre-made’ attorney letters to dispute information on your credit report. Using these types of letters often raises major red flags at the credit bureau level and may result in your dispute request being denied. How do you know if your dispute has been denied? You’ll know when you receive a ‘Will Not Take Action’ letter from the credit bureaus.
Do-It Yourself Credit Repair – There are two primary ways you can dispute negative items on your credit report. One way is to write several original letters to the credit bureaus, which can take several hours to complete and adds weeks onto the credit repair process.
The second and easiest way to dispute negative items on your credit report, is to launch your disputes online. The credit repair system that I helped develop, Loan Saver PRO, shows you step-by-step how to order the right credit reports (yes, there are some wrong ones), launch effective online disputes, and manage the whole credit repair process.
Results
Credit Repair Service – If it sounds too good to be true, it probably is. To get your scores into the 800’s would take over 10 years of perfect credit, so don’t believe it. ‘Internet based’ credit repair services will also try to tell you where your score will be in 30-60 days and that’s impossible to predict. Also, any credit repair service that promotes pipe dreams of a new car and a new house is not to be trusted; unless of course they plan on loaning you the down payment.
Do-It Yourself Credit Repair – A reputable ‘do-it-yourself’ credit repair system should never promise a certain score. However, I will promise that if you decide to use a reputable ‘do-it-yourself’ credit repair system, and are patient, your scores will increase significantly. On average, I have seen the Loan Saver PRO credit repair system raise scores into the high 600’s and low 700’s. With those scores, you can likely get any loan or credit card you desire, and at the best rates possible.
Again, I hope the above information will help you make a better decision when deciding what to do regarding your credit situation. If you still decide to work with an ‘internet based’ credit repair service, make sure you do your research, and don’t say I didn’t warn you.
To help get you started with the ‘do-it-yourself’ credit repair process, my company Loan Savers LLC, offers a free guide that will help you order the right credit reports needed to repair your credit. Visit http://www.loansaverpro.com/index-1.htm and submit your email address to receive a free Insider’s Guide to Ordering Your Credit Reports.
About the Author
Todd Disraeli has been in the mortgage and credit repair business for over 10 years. Todd's primary expertise is consulting with mortgage companies and helping them turn declined loans into approved loans. Todd uses his extensive knowledge and experience to help mortgage companies, and their loan officer’s, work smarter and not harder.
Although he might seem controversial at times, he speaks the truth whether the credit bureaus like it or not.
How To Repair Your Credit Reportby Tom Coleman
A credit report is run on a buyer when he or she needs to buy something that will take a long-term loan, such as an automobile or a house. The credit report can come from one of three agencies – Equifax, Experian, and Trans Union. Each of these three agencies uses their own techniques of arriving at a credit score and receiving credit information, so attention should be paid to all three.A credit report score can go up to 800, and an increase of 50 points is a big one, enabling borrowers to get loans they previously were denied, and getting loans at much better interest rates. A 1% drop in an interest rate on a $150,000 house, for instance, may drop a payment by over $100 a month, saving the borrower over $35,000 over the life of the 30-year loan.Each of these credit agencies have taken all the financial information they can find about you and tabulated a credit score from those results.Information will include your current and previous home addresses and employers, the credit cards and loans you have, and any late payments made over the last ten years. These agencies’ credit reports will be very similar, but there will be differences, as they all make mistakes, and the banks and credit card companies giving them the information make mistakes, too.Here’s where you can improve your credit score. Any request for a change in information in a credit report must be answered and corrected within 30 days because federal law regulates the credit bureaus. If you write in to a credit bureau complaining that one of the late payments on your credit report is wrong, they must investigate and correct the information within the 30 days, or delete the information.Because this deadline is very difficult to make, often the late payment report is simply deleted off of the credit report. This procedure is very slow and time-consuming, and you can either do it yourself or hire an agency to do it for you. Each letter should only request one change, otherwise the credit bureau will usually declare the request to be frivolous and thus they are not required to do anything. Each letter should be written to all three credit reporting agencies. These agencies, Equifax, Experian, and Trans Union, all have PO boxes specifically set up for complaints, but they change the PO Boxes often to make it difficult for customers to find. Every month you, or the agency you have hired, should send out another letter referring to a different mistake in your credit report. After many months, your credit report will show many fewer late payments, perhaps even none, and your credit score will have improved dramatically.
The author runs the finance website http://www.pawninfo.com about short-term loans and payday loans, and any or all of this article may be reproduced in any form as long as there is a link to the website. The HTML is Pawn Shops and Short Term Loans
About the Author
The author runs the finance website http://www.pawninfo.com about short-term loans and payday loans, and any or all of this article may be reproduced in any form as long as there is a link to the website. The HTML is Pawn Shops and Short Term Loans Credit Reports
Why Your Credit Score is Important
by Charles Essmeier
If you have never heard of a FICO score before, you should become familiar with the term. Named for the firm that invented it, Fair Isaac Corp., the FICO score is the three-digit credit summary that, in essence, reduces your entire financial life to a simple set of numerals.
The score represents a distillation of information gleaned from the three main credit-reporting bureaus – Equifax, Trans Union, and Experian, regarding your loan and payment history, as well as any bankruptcy filings you may have made. Andy liens or payment defaults will be incorporated into the score as well. The score, which can vary from a low of 300 to a high of 850, represents an attempt to quantify a lifetime of financial dealings into a single number. It has been quite successful. In fact, most people would be surprised to see just how important that score has become and how many businesses use it for reasons that aren’t entirely obvious.
Most people would assume, correctly, that lenders would check the score of a potential borrower who was applying for a car loan or a home equity line of credit. Many would be surprised, however, to see that the score is often accessed by potential employers, landlords, or even insurance companies. While some states have strictly forbidden the use of FICO scores as a guideline for setting insurance prices, some insurance companies still access the scores in order to assess risk for potential customers. Employers access the scores to see if a possible employee might be a security or theft risk, and landlords may use the score to determine whether or not a tenant should post a high security deposit prior to moving into a rental property.
A substantial argument can be made that there is no way to accurately reduce someone’s financial status to a single three-digit number. That said, it is simply a whole lot easier for most companies that need a financial “snapshot” of a customer to look over their credit report, look at the score, and offer a “yes or no” response based on the score alone. Fair or not, this is the way things work today, and it is probably unreasonable to expect lenders, employers and landlords to start looking deeper into their customers’ and employees’ finances.
The best solution for anyone who is concerned about his or her credit score is to examine their own credit report, which can be obtained for free at annualcreditreport.com. Report any errors to the appropriate credit bureau, and try to check your report once or twice a year. Fair or not, we are our credit score. Making sure that the number is accurate is an important step towards a solid financial future.
About the Author
©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a site devoted to debt consolidation and credit counseling, and HomeEquityHelp.com, a site devoted to information regarding home equity lending. How to Repair a Bad Credit Rating by John Mussi
If you have a bad credit rating, then you might find that your ability to get financing, loans, and even some jobs is greatly diminished.
Once you have a bad credit rating, it might seem like there's nothing that you can do about it… but you don't have to believe that. It's not as difficult as you might think to get by with a bad credit rating; with a little work and time you can even repair it! Of course, before you do that it's important to realize exactly what a credit rating is.
What your credit rating says about you
Every time a lender or other creditor makes a report concerning your payment history to them, this report affects your credit score.
Your credit score is a numerical indication of the positive and negative reports that you've received from creditors and lenders; if the number is high then you have a good credit rating, and if it's low then you have a bad credit rating.
Since many creditors and lenders report either monthly or quarterly, the overall score is very fluid and can change over time… a fluidity that allows you to change and improve your bad credit rating as time goes by.
Basic credit repair
If you're looking to repair your bad credit rating, the first thing that you need to do is obtain a copy of your credit report.
Once you have your credit report, you'll be able to see the creditors and lenders that have made the negative reports for late payment and non-payment that caused you to have a bad credit rating.
Contact the lenders who have reported you for non-payment to arrange a repayment schedule, all the while making sure to keep current accounts up to date and not falling behind on your current payments.
As you gradually repay your old debts, they will be reported as being paid satisfactorily… and at the same time your current accounts will continue to report positively as long as you make on time payments.
Within six months to a year a definite change should begin to show in your credit score as the positive reports begin to outnumber and encompass the old negative reports.
It may still take a while longer for your bad credit rating to disappear entirely, but as long as you work to maintain your credit and make your payments on time you'll find that the day will come when having a bad credit rating is nothing more than a memory.
About the Author
John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the www.directonlineloans.co.uk website.
What Is A Good Credit Score? by L. K. Hughes
As a credit repair specialist, the question I hear most often is "what's a good credit score?".
It seems that everyone cares about their credit score these days, with
interest rates lower than ever and the easy money lending environment we have
now that comes with low rates.
The good news is, it is easier to get that loan for your house or car than
ever before.
"Oh No, I Have a 622 Credit Score!"
Recently, I went to purchase a triplex to live in and keep as an investment,
and when I got to the lender's office I found to my horror that I had a middle
credit score of 622. I will explain this in a moment, but even though this
score was considered "bad" a few years ago, it turned out to be ok.
Your Middle Score
What do I mean when I say I had a middle credit score of 622? There are three
main credit bureaus, and banks are now in the practice of looking at your credit
scores from all three bureaus, and then using the "middle credit
score" as an indicator of your credit performance. They order a
report that they call a "Tri Merge" or a 3-in-1 credit report. There
are actually six main companies that banks like to use to provide this type of
report, although there are many companies out there that will sell reports to
the public. If you order a 3-in-1 credit report on your own, the banks will
still insist on ordering theirs from one of their preferred companies. Once they
discover your middle credit score, they use this as a very important indicator
about your creditworthiness. Your credit scores can make or break your home loan
or credit application.
What Does My Credit Score Mean?
Generally speaking, having a 650 credit score or higher means that you can
find many home loans at a good rate, and having a 720 credit score or higher is
the "holy grail", the highest score category where you can qualify for
all the best loans like zero percent down or 125 percent financing. Credit
scores go all the way up to 850, and all the way down to 350.
However, things change with time. Where a few years ago only the people
with a 720 credit score got the best loans, today even people with a 620 credit
score or over have plenty of options for home loans at a decent rate. Even
people with a 580 or more can enjoy a new home loan today.
As I found out, my 622 credit score in 1/2005 Sunday can remember him
in her I get him out and get a fair and I think it can do is beginning: you a
lot yowasn't so bad after all.
How To Qualify For a Home or Car Loan
Who has the best credit? The answer is, people who have three lines of credit
open, no 30 day lates, and no more than 30 percent of their credit card balances
owing. these are the people who will have a 700 credit score or more. What if
your credit record is not so good? I had a friend who lost her job and that
divorce at the same time. She had 10 lines of credit open and four of them went
into a delinquent or "charge-off" status. The term charge-off means
that the credit card company "gave up" on collecting the debt.
My friend felt very ashamed about her past, and for six years avoided looking
at her credit. When she finally got her credit report she found that she had a
620 middle credit score, very close to mine. Even though I had 11 accounts where
only one was 30 day late. The credit score looks mainly at your last 18 months
of behavior, so even though she had four delinquencies in her past her credit
was still considered ok. She qualifies for a home or car loan.
A Good Credit Score
However, to summarize some of the points made here, for the best credit make
sure to 1) have 3 credit lines open 2) pay off 30% of your credit card
balances and 3) avoid 30 day lates at all costs.
If you need a good credit score in a hurry, check out my e-book Improve
Your Credit Score In 24 Hours.
About the Author
L. K. Hughes is author of the best-selling book "Improve Your Credit Score In 24 Hours"
A Summary of the Fair Credit Reporting Act
by Gary Gresham
This summary of the Fair Credit Reporting Act will explain what you can legally do if you want to repair your own credit report. No matter what you hear, you can dispute credit information on your credit report if you understand the legal rights you have under this law.
The Federal Fair Credit Reporting Act was enacted by the United States Congress in 1971. In summary, it says that the credit bureaus must investigate a consumer dispute if they want to challenge credit information on his or her credit report.
It also states that credit bureaus are required to complete the investigation within a 30 day period. If the credit bureau finds that the disputed information is inaccurate or cannot be verified, they must promptly delete that information.
But there are some cases when a consumer dispute can be ignored by the credit bureaus. If you challenge a negative credit listing on the basis of things like health problems, divorce or job loss, the credit bureaus are entitled to ignore those kinds of disputes. The information you dispute must be either old or incorrect.
You must file a valid dispute where the credit bureaus can contact the creditor and confirm that the new information you gave them is accurate and can be verified. If the credit bureau does not receive verification from the creditor within 30 days, the Fair Credit Reporting Act says the credit bureau must promptly delete that credit listing.
Even though the process sounds simple, the credit bureaus make it more difficult than you can imagine. The credit bureaus don't like the credit repair companies or anyone offering instruction on how to repair your own credit report. Why? Because it means more work for them.
The credit bureaus blast credit repair companies in the media and warn people against using credit repair services. The bureaus openly deny that any information can even be removed from your credit report.
It is reported that 79 percent of all credit reports contain some type of errors, and up to 25 percent of these errors could result in credit denials, hiked interest rates, and even lost employment opportunities.
If you have any amount of negative credit on your credit report it will cause the interest on all loans you apply for to be much higher. It will even become a barrier to your credit approval. That will cost you a fortune in unnecessary higher interest resulting in higher payments on anything you buy.
How you decide to address or dispute credit information is entirely up to you. But regardless of what you may hear in the news, thousands of people have restored their credit. You can choose to repair your own credit report or hire a professional service to do it for you.
The truth is you do not have to endure bad credit for seven to ten years if you want to challenge the accuracy of your credit report. This summary of the Fair Credit Reporting Act shows you it is possible for you to repair your own credit report and the sooner you start the better.
Copyright © 2005 Credit Repair Facts.com All Rights Reserved.
About the Author
This article is supplied by http://www.credit-repair-facts.com where you will find credit information, debt elimination programs and informative facts that give you the knowledge to correct your own credit and credit report. For more credit related articles like these go to: http://www.credit-repair-facts.com/articles_1.html
How To Report An Error On Your Credit Report by John Simpson
Have you been turned down for a loan recently? Have you
applied for store credit and been refused? Did you really
want that car and find out that because of your 'credit
score' that they would have to require an unreasonable down
payment?
Credit reports are designed to help businesses evaluate the
risk factor in giving you money or valuable products on a
line of credit.
The Fair Credit Reporting Act promotes the accuracy,
fairness and privacy of information in the files of the
nation's credit reporting agencies. The act is enforced
with regard to the consumer's rights and requiring new
responsibilities for the credit reporting agencies.
For example, a reporting agency must give you a copy of
your report and they must provide a list of every inquiry
about your credit report within the last year.
The agencies collect data on personal identification (name,
address, social security number, current employer, etc),
payment histories with all current and closed lines of
credit that details how much you owe, when you've paid on
time and what, if any have been reported to a collection
agency.
The final two items are all inquiries that have been made
on your credit report as well as anything that is
considered a matter of public record such as bankruptcies,
foreclosures and tax liens.
To repair or report errors on your credit report, you must
obtain a copy of your personal report and score. The
reports themselves are not uniform from company to company.
Experian may not list all the data of Equifax and vice
versa. So, be sure to obtain credit history reports from
the same company as the creditor who turned down your
application. In some states, that may require a small fee,
but after September 1, 2005 all states will have to be in
compliance with providing a free credit report.
Once you have the report, verify the information. Every
report is also scored. Scoring is the system that creditors
use to determine your credit experience. These scores are
valid for all three companies and are uniform in value.
Credit scores range from 375 to 900 points, but those
numbers mean little on their own. A score of 650 or better
usually indicates a very good credit history. Scores
between 620 and 650 are considered average, while scores
below 620 may prevent a person from getting a loan. If they
do receive one, it is likely one with prohibitive interest
attached.
If you look at all the information on your credit report
and it's correct, then you are faced with having to improve
either your payment history, lower the number of debts.
If the score is low because you possess very little credit
history, investing in a secured credit card can help
generate good feedback to your credit report or a co-signer
who can provide the creditor with a good credit history as
security for your lack of one.
Inaccurate information, however, such as reported late
payments that you disagree with or a listing for a debt
that is not yours is repairable. Some companies offer debt
consolidation or credit repair. Before getting involved
with either type, be sure you thoroughly check out the
company to avoid scams.
Doing the credit repair on your own is simple enough. Write
a letter, detailing the inaccuracy to the reporting
company. Send the letter and copies (copies only) of any
documents supporting your claim to the credit-reporting
agency. Some agencies allow you to do this online through
their websites; however, if you need to send them hard data
it's better to use regular postal mail.
The credit agencies are then required by law to investigate
the item in question, usually within 30 days. They must
forward all information to the reporting creditor and if
they cannot verify the veracity of their report or the
creditor does not respond, the report will then be changed
and updated to reflect the data provided.
The company must then notify you in writing of the change
as well as provide you with an updated credit report.
It's important to note, that if there is an inaccuracy on
Experian that there is likely a similar one on Trans Union
and Equifax. Each company must be notified, separately for
each item.
Also, if you have more than one item you are disputing on
your credit report, then you may have to send a separate
letter for each instance, to be certain that each item is
addressed.
While this can be a time-consuming task at first glance, it
is the best way to remove inaccuracies from your credit
history and repair misinformation damage to your credit
report. If you request it, the reporting agency must also
send notices of any corrections to anyone who received your
report in the previous six months.
If the negative information reported to your credit history
is accurate, then only time can repair the damage of the
negative score. Most information rolls off after 7 to 10
years, but felony convictions, information on jobs paying
you over $75,000 a year or credit of more than $150,000 has
no time limit.
If you had a car repossessed, you'll have to wait about 8
years to see the repossession removed from your credit
history. Open credit lines, whether the information is
negative or positive, will remain active on your credit
history whether you actively use the credit or not.
Applying for credit is never a fun, even for people who are
considered to have good credit. There is always an inherent
fear of rejection by the creditor you are applying for. If
you are concerned about your credit history, keep an eye on
it.
It's recommended that you check your credit history once a
year at least, because in an age of identity theft,
negative credit history can be part of the collateral
damage.
Find out how to repair your credit. Discover why a good
credit report is vital to your financial future, and how to
make it the best Click
http://www.credit-repair-101.com/
About the Author
John Simpson works in software development. A few years
ago, he got in trouble with credit card debts. Now he's
written a series of articles explaining how he recovered,
and repaired his credit.
New Concepts In Credit Scoring by John Simpson
Did you ever think that applying for a car loan would
require scoring well on a test that you've been taking for
years but never really studied for? Scores are how
creditors determine your creditworthiness and the
likelihood that they are going to give you a loan.
Credit scoring was first developed in the 1950s, but over
the last couple of decades, it has become more
sophisticated and a crucial part of seeing whether giving
you money is worth the risk.
All three major credit agencies (Experian, Equifax and
Trans Union) worked to develop a generic scoring system
based solely on the information reported to them about an
individual. Credit scoring is a scientific method that
uses statistical models to assess an individual's credit
worthiness based on their credit history and current credit
accounts.
When you apply for a mortgage, a car loan, a student loan,
and a credit card or in some cases even employment, the
offering company can order a copy of your credit report.
While each credit agency has a common value system for
their scores, how they tabulate the scores is individual to
each company based on the data in their system. It's also
worth noting that all three are not uniform in how much
information is reported to them or requested from them.
While all three are accessible, information for a
particular creditor may only be reported to one of the
agencies. So if Equifax has a positive report from Company
A, you might not find that same report at Experian or Trans
Union.
So when a score is requested, a computer compiles it by
using information from an individual's credit report, such
as how much money is owed and whether payments have been
made on time.
Then that score is compared to the credit performance of
others with similar profiles. The system awards points for
each factor that helps predict who is most likely to repay
a debt. A total number of points per credit score helps
predict how likely it is that you will repay a loan and
make payments on time.
Credit scores range from 375 to 900 points, but those
numbers mean little on their own. The numbers really don't
mean much without knowing what the specific sliding scale
You can assume that you are a better credit risk the higher
your score is. Under mortgage standards, a score of 650 or
higher indicates an excellent credit risk and good credit
history.
A score below 620 may prevent a borrower from getting the
best interest rates, as they may be considered a greater
credit risk-but it does not mean that they can't get
credit. The process will probably be lengthier and, as
noted, the terms may be less appealing, but often credit
can still be obtained.
While the credit scoring system is far from perfect, it is
under improvement all the time. With the Fair Credit
Reporting Act going into effect, people will actually have
more access to their own credit histories without having to
pay for it.
The act also requires agencies to respond to requests for
investigation of dubious items on the credit history. In
years past, it was not uncommon to write letter after
letter and never receive an answer. Come September that
will all change.
Find out how to repair your credit. Discover why a good
credit report is vital to your financial future, and how to
make it the best Click
http://www.credit-repair-101.com/
About the Author
John Simpson works in software development. A few years
ago, he got in trouble with credit card debts. Now he's
written a series of articles explaining how he recovered,
and repaired his credit.
Repair Your Credit Like A Financial Expert by John Simpson
How many times have you been scammed by commercials and
companies stating that bad credit, no credit, bankruptcy,
or divorce is okay?
The truth of the matter is that it's not okay. Having poor
credit can devastate your life style. In today's society,
your credit speaks for you. It is how you are viewed and
judged.
Whether you are trying to buy a home, refinance a home,
apply for a credit card, even a cell phone, it will be
necessary to have satisfactory credit. However, there are
some legitimate companies that specialize in working with
individuals with poor credit.
The down fall to this is that you suffer from extremely
high interest rates and low lending amounts. Most
individuals with poor credit opt to take advantage of these
opportunities, which usually result in more debt and
credit
beyond repair.
Managing your credit is the key to your financial success.
There are various programs available to help you
understand, manage and repair your credit. However, these
programs come at an expense.
You may opt to pursue this goal yourself, with out the help
of a professional. This option will save you money and
help
you gain ample knowledge about your credit and how to
manage it.
In all honesty, there is nothing that a credit repair
agency can do to repair your credit; that you can't do
yourself.
Here are a few basic steps to repairing your credit:
* 1. The first step to repairing your credit is to order a
copy of your credit report. You can obtain a copy of your
credit report, by contacting the three major credit
bureaus:
Equifax Credit Information Services, Inc
P.O. Box 740241
Atlanta, GA 30374
1-800-685-1111
www.equifax.com
Experian Credit Information
P.O. Box 9532
Allen, TX 75013
1-888 397 3742
www.experian.com
TransUnion
P.O. Box 2000
Chester, PA 19022
1-800-916-8800
www.transunion.com
* 2. The second step is to check your credit report for
inaccurate information; such as: Collections or debts which
have been paid and never updated.
You may also check for inaccurate charge amounts and
duplicate items. These are common mistakes made by the
credit agency and or the creditor. If you are aware of any
mistakes, dispute the information with the credit bureau
immediately. They will perform an investigation and have
the information updated.
* 3. The third step is to avoid more debt. It is important
not to over exceed your budget. Your total debt should not
over exceed 45% of your income. This will include, current
living expenses, credit cards, car loans and personal
expenses, such as: cell phones, pagers, etc.
This list contains just a few of the many steps you can
take to repair your credit. The wise scenario to take is to
manage your credit and not let it become damaged.
The fact is that repairing your credit will take time and
effort. However, getting back on track will make all of
your hard work and time spent worth it.
Find out how to repair your credit. Discover why a good
credit report is vital to your financial future, and how to
make it the best Click
http://www.credit-repair-101.com/credit-repair-kit-html
About the Author
John Simpson works in software development. A few years
ago, he got in trouble with credit card debts. Now he's
written a series of articles explaining how he recovered,
and repaired his credit.
Simple Steps To Improving Your Credit Reportby Www.creditandyou.com
Even if you think you have a wonderful credit report, be wary of the error factor. Just as you receive mail with your name and address misspelled, your credit report can have errors as well. Whether it’s human error, out of date information or even mistaken identity, errors occur more easily than we’d all like to think.
Under the law, both the credit reporting agency and the organization that provided the information to the credit reporting agency have responsibilities for correcting inaccurate or incomplete information in your credit report.
So, if you find an error on your credit report, be sure to notify the credit bureau in writing
immediately:
1. Tell the CRA what information you believe is inaccurate on your credit report. Include copies, never originals of documents that support your position.
2. In addition to providing your complete name and address, your letter should clearly identify each item in your credit report that you dispute. State the facts and why you are disputing the information. Enclosing a copy of your credit report with the items in question circled can be helpful.
3. Though you may think your reason for writing is obvious, be sure to request that the error be corrected.
4. Send your letter by certified mail, return receipt requested so you can document what the credit reporting agency received. Make sure your letter is dated, and don’t forget to keep copies of everything you send.
Credit reporting agency must reinvestigate the item(s) in question, usually within 30 days unless they consider your dispute frivolous. They also must forward all relevant data you send them to the information provider (bank, credit card agency, etc.).
After the information provider receives notification of a dispute from the credit reporting agency, it must review and investigate all relevant information provided and report the results back to the credit reporting agency.
If the information provider finds the disputed information to be inaccurate, it must notify all nationwide credit reporting agency so that they can correct this information in your file.
Disputed information that cannot be verified must be deleted from your file.
Inaccurate information must be corrected by the CRA.
Incomplete information must be corrected by the CRA.
Any account that belong only to another person must be deleted by the CRA.
NOTE: Credit repair can be long and tedious, the importance of knowing your rights cannot be emphasized enough so be sure you take time to digest this information.
About the Author
To find more easy steps anyone can take to repair there credit report and what to do after the investigation visit http://www.creditandyou.com/creditrepair.html it’s a free information website!
"Credit Repair Kit" Sound To Good To Be True? It Is.
by Tim Gorman
A lot of people have bad credit. It is unfortunate that good people with good intentions are sometimes lured into credit card offers with outrageous interest rates or convinced to buy a new, overpriced car that they cannot afford. Sometimes, it is a stroke of bad luck. You may have recently lost your job or been involved in an accident that made you unable to work which in turn also made you unable to pay your bills. Whatever the case bad credit can follow you for a very long time and repairing your credit is no easy task. You may have seen advertisements claiming to be able to repair your credit for only a small fee. Some advertise credit repair kits for anywhere from $10.00-$20.00. This may seem like a small price to pay to have your good credit reinstated. But beware, the price is often much higher. Jail time or high fines are the price you must be willing to pay since these scams are illegal.
Credit repair kits claim to be able to repair your credit through a process called "file segregation". This is a fancy term for obtaining an employment identification number or EIN. Employment identification numbers can be used to apply for credit instead of your social security number. The problem is that you must use false information to apply for this number. This is illegal and you can be charged with not only misrepresenting your social security number, but if you used the telephone or mail to apply for the credit you could be charged with telephone or mail fraud.
Keep in mind that you should never have to pay money for a service before it is received and you have the right to see all paperwork regarding the case. So ask for all agreements in writing and carefully examine the documents to be sure that you are not participating in something that is illegal. If you are still thinking of using a credit repair service, contact the state Attorney General and the Better Business Bureau to determine if the company is legitimate. If you have previously purchased a credit repair kit or been a victim of a credit repair scam, you should also contact the state Attorney General to report the crime. The best way to repair you credit is through time and effort. You can do it, but nothing is going to fix your credit instantly.
About the Author
Timothy Gorman is a successful webmaster and publisher of www.Debt-Relief-Solutions.com . He provides more debt relief, consolidation and free debt consolidation information that you can research in your pajamas on his website.
7 Reasons Why you should take advantage of a free online credit report by Khali S.
7 Reasons Why you should take advantage of a free online credit report
The internet is getting to be more and more useful, particularly when it comes to providing us with a free online credit report. This online opportunity of free credit report comes with a credit score so you can check online instantly and constantly.
So what's the benefit of using a free online credit report? This free credit report online opportunity enables you to verify the accuracy and veracity of your credit information. This is very timely as we have become more and more inclined to use our credit cards and credit accounts nowadays.
Free credit report online resources also enable you to receive your free credit score. These can save you thousands of dollars. As you know, erroneous credit report information and data will likely cost you higher interest rates and payments. Not only that, the error may also cause you to lose the opportunity to get the credit you deserve.
Here are seven reasons why you should take advantage of a free online credit report.
1.By using the free online credit report resources, you can get free access to your credit report. You can do this by checking your current credit report on the Web.
2.As mentioned above, free online credit reports have been cooked up to help you verify the accuracy of your credit report data. It can also be depended upon to be a source of reliable information.
3.Through the use of a free Web sources credit report, it can automatically dispute inaccurate and false credit items that appear on your credit report information.
4.Free credit report online resources are also designed so that you can repair your damaged credit, if it happens.
5.There are identity thieves and credit frauds that would take advantage of the vulnerability of manually operated credit report machines. By using a free online credit report, you will be able to safeguard your credit report information from such frauds and thefts.
6.It would also enable you to consolidate your high interest credit card debt. Eventually, you might get out of debt because of the free online opportunities of credit reports.
7.You can immediately get in touch with the services of a non-profit Debt Counseling service whenever your free online credit report turned out with problems.
Sometimes, there are credit reports from free online services that were generated with inaccuracies. These certain inaccuracies tend to lower your credit rating and score. Sad to say, this may also have a significant effect if you have loans, insurance and job applications pending.
If this happens to you, do not fret, there may be a common mistake committed for the inaccurate information and it can also be easily corrected, thanks to the free credit reports online. By always securing a copy of your online credit report and credit score, you can monitor very well your credit information and keep it up to date. You'll also be on top of your credit rating by continuously updating your credit report online.
Remember, your financial image to potential credit partners will be reflected and assessed through your personal credit rating. Often, lenders base their approval of credit or loan applications through information found in the credit reporting bureaus. Having up-to-date and very accurate information to present will be a very good advantage for you. Without it, though, it is likely that the lenders won't be able to make an informed decision of approval on your application. You may just have sealed your fate for a financially stable and secure future for you and your family. Therefore, credit reports information is that important so you need all the help you can get to set your record straight. Online services for credit reports might be a good way to start.
Keep in mind that lenders make their decision through the information provided from your free online credit report. Your credit report is sort of a financial resume that will assure you of financially secure times. Thus, take advantage of the opportunities provided you by a free online credit report.
About the Author
Khali S. is the founder of http://www.no-cost-credit-report.com - information site that shows you all about free credit reports, which companies to avoid and Free Tips & Tricks to boost your credit score legally
Common Credit Score Myths by Gary Gresham
A lot of credit score myths about fico score ratings get spread around and some of them are just outdated information. Sometimes even lenders can give you the wrong advice and it can get confusing. But the bottom line is bad information can cost you money no matter who you get it from.
Fico score ratings are used for most mortgage lending, which means, you need to know what will hurt or help your credit score points. To make it clear, here are some of the most common credit score myths.
* Checking your credit report will hurt your credit score
Checking your own credit report and credit score counts as a soft inquiry and does not go against your score. However, if anyone else like a lender or credit card company is checking your credit report, this is considered a hard inquiry and will generally knock off about 5 credit score points.
The credit score rating system treats multiple inquiries in a 14-day period as just one inquiry. The system ignores all inquiries made within 30 days prior to the day the credit score is computed. So if you want to minimize the damage from credit inquiries, shop for a loan in that short period of time.
* Closing old accounts will improve your credit report score
Sometimes even lenders will tell you to close your old and inactive accounts as a way for improving your credit report score. In most cases, closing old accounts will actually have the opposite effect with the current credit score rating system.
Canceling old credit accounts can actually lower your credit score because it makes your credit history appear shorter. If you want to reduce your levels of available credit, it's better to reduce or close new accounts instead. Applying for new credit is more likely to lower your score.
* You need to check more than just FICO score rating
If you ever hear this from anyone, consider it a red flag. All of the three major credit reporting bureaus offer FICO credit score ratings using the formula developed by Fair, Isaac. Even though each one gives the scores a different name you only need a fico score rating from the three major credit reporting bureaus.
At Equifax, the FICO score rating is called the Beacon credit score. At TransUnion, it’s called Empirica. At Experian, it's known as the Experian/Fair, Isaac Risk Model.
The reason each of the three major credit reporting bureaus will have three different scores is because they don’t all share the same data. So when checking your credit report, just make sure it comes from the three major credit reporting bureaus: Experian, Trans Union and Equifax.
Examine your credit reports from all three major credit reporting bureaus before you apply for a big loan like a mortgage. Fix any errors in all three reports before you shop for a loan because it takes time to correct your credit report.
* Credit counseling will hurt your score
The current FICO credit score rating system ignores any reference to credit counseling that may be in your file. The researchers at Fair, Isaac, the company that created the FICO credit scoring rating system, found that people getting credit counseling didn’t default on their debts any more often than anyone else.
However, any late payments you've had with creditors will hurt your credit score. Credit counseling can hurt your ability to get a loan because you probably have had trouble paying creditors.
Some lenders will back away if you are in credit counseling. Others may see it differently, but usually will charge you higher interest rates than if you had perfect credit.
The best way to improve your credit report score is paying your bills on time and paying down credit card debt. Check your credit report regularly for any errors and make sure you don't fall for these common credit score myths.
Copyright © 2005 Credit Repair Facts.com All Rights Reserved.
About the Author
This article is supplied by http://www.credit-repair-facts.com where you will find credit information, debt elimination programs and informative articles that give you the knowledge to correct your own credit and credit report. For more credit related articles like these go to: http://www.credit-repair-facts.com/articles_1.html
Trusted Ways To Repair Your Credit.
by www.creditandyou.com
Even if you think you have a perfect credit report, be vigilant of the error factor. Just as you receive mail with your name and address misspelled, your credit report can have errors just like anything else. Whether it’s human being error, outdated data or even id theft, mistakes occur more easily than we’d all like to think.
According to the law, both the CRA’s and the company that provided the information to the credit reporting agency have obligations for correcting mistaken or incomplete data in your credit report.
So, if you notice an error on your credit report, without hesitation notify the credit reporting agency in writing at once:
1. Tell the CRA what information you believe is wrong on your credit report. Include copies, never originals of documents that support your position.
2. In addition to providing your whole name and address, your correspondence should of course define each item in your credit report that you dispute. State the facts and why you are disputing the information. Enclosing a copy of your credit report with the things in dispute circled can be beneficial.
3. Though you may take for granted your reason for writing is obvious, be sure to request that the mistake be corrected.
4. Mail your letter by certified mail, return receipt requested so you can take note when the credit reporting agency received your correspondence. Make certain your correspondence is dated, and be sure to keep copies of everything you send.
Credit Bureau must look over the item(s) that you say are not correct, typically within 30 days unless they consider your dispute frivolous. They also must forward all relevant information you send them to the establishment (bank, credit card agency, etc.) that gave them the data for your credit report.
After the company obtains notice of a dispute from the credit reporting agency, it must review and inspect all crucial information furnished and report the resolutions back to the CRA’s.
If the information provider finds the challenged data to be incorrect, it must give notice to all nationwide credit reporting agency so that they can update this information in your credit report.
Challenged data that can’t be corroborated must be removed from your credit report.
Inaccurate information must be updated by the Credit bureau.
Incomplete information must be changed by the Credit reporting agency.
Any account that belong only to another individual must be deleted by the Credit reporting agency.
NOTE: Credit repair can be long and boring, the importance of understanding your rights cannot be stressed enough so be sure you take time to digest this information.
About the Author
To find more easy steps anyone can take to restore there credit report and what to do fallowing the investigation visit http://www.creditandyou.com it’s a absolutely Free information website!
Your Credit Report, A little Improvement Can Go A Long Way.
by www.creditandyou.com
You may think you have a marvelous credit report, be cautious of the mistake factor. Just as you receive mail with your name and address misspelled, your credit report can have errors just like anything else. Whether it is someone’s typing over site, out of date info or even mistaken identity, errors go on more regularly than we all can imagine.
According to the FTC, both the credit reporting agency and the establishment that provided the information to the credit reporting agency have duties for correcting wrong or incomplete information in your credit report.
While checking your credit report, if you locate incorrect information on your credit report, without hesitation notify the CRA in writing directly:
1. Tell the Credit reporting agency what information you believe is incorrect on your credit file. Send copies, never originals of documents that support your position.
2. Be sure to providing your entire name and address, your letter should clearly describe each entry in your credit report that you question. Tell the facts and why you are challenging the information. Sending a copy of your credit report with the items that are not correct highlighted can be help full.
3. Although you may imagine your grounds for writing is self explanatory, be certain to ask that the over site be fixed.
4. Send off your correspondence by certified mail, return receipt requested so you can document when the credit reporting agency received your letter. Be sure your letter is dated, and never forget to keep copies of everything you send.
Credit reporting agency must look into the item(s) in question, generally within 30 days unless they assume your dispute is trivial. They also must send on all relevant data you send them to the company that gave them the information for your credit report.
After the establishment receives notification of a dispute from the credit Bureau, it must review and go over all relevant information rendered and report the final result back to the credit reporting agency.
If the company finds the disputed information to be wrong, it must advise all nationwide credit reporting agency so that they can change this information in your credit file.
Disputed information that just can’t be affirmed must be erased from your credit file.
Inaccurate information must be fixed by the credit reporting agency.
Incomplete information must be corrected by the credit bureau.
Any item that belong only to another person must be erased by the CRA.
NOTE: Credit repair can be long and unexciting, the significance of being well-informed of your rights can’t be emphasized enough so be sure you take time to digest this information.
About the Author
To find more convenient steps everybody can take to fix there credit file and what to do after the investigation visit http://www.creditandyou.com it’s a free information website!
Your Credit Report After Bankruptcy-What To Look For by Karla Fiscus
Do you KNOW what is on your credit report? Even if you have just filed bankruptcy it is EXTREMELY important that you KNOW how it is reported on your credit report. It is NOT the credit reporting agencies responsibility to make sure that your credit report is accurate. It is YOURS, and only you can make sure that it is.
After receiving your bankruptcy discharge papers the first thing you will want to do is get a copy of your credit report and make sure that the information reported on it is correct. Did you know that over 90% of the time it is incorrect?
You wll want to make sure that your report is showing the date the bankruptcy was filed and when it was discharged. Make sure that ALL creditors that you included in the bankruptcy are showing that they were and that your balance is $0 and nothing else. Profit & Loss or Charge Offs will lower your credit score. Make sure they report as "included in bankruptcy" with a $0.00 balance.
If a creditor shows any balance other than $0.00 and it was included in the bankruptcy it will lower your credit score. It will by your responsibility to contact the creditor and have them update your credit report to show the correct information. Be prepared, you may need to contact them several times before they get it right. But don't stop until it is.
Did you also know your credit score will go up after a bankruptcy? Why? Because all past due, profit & loss and charge offs will now show a balance of $0 instead of a balance past due.
Did you know that if your credit score is over 500 you can purchase a home and get 100% financing? That's right!! However, you need to realize that you will be paying a premium price in the closing costs and interest rate. If you do some credit repair and wait until the bankruptcy is two years old you can qualify for a Fannie Mae low interest rate loan.
Remember, you are responsible for your own credit report. No one else is going to care about it as much as you. Start working on it now, it's never to late.
About the Author
Learn how to go from bankruptcy to living a life of financial freedom. At www.life-after-bankruptcy.com you will discover step by step how to change your life and finally live debt free and financially free.
Credit Repair Business Opportunities - Huge Profit Potential! by Randy Wilson
In the world today, many people are further in debt than they realize. When they finally come to understand they need help, they are on the brink of bankruptcy. However, President Bush’s signature on the new bankruptcy law has changed this option. He has created booming credit repair business opportunities.
This boom is the result of the new law requiring people to obtain consumer credit counseling before they are eligible to claim bankruptcy. Even when they can claim bankruptcy, it is now the Chapter 13 bankruptcy, which requires a payment plan be created by the bankruptcy judge and adhered to by the consumer.
This law opens the door for new Credit Repair Business Opportunities as your home based business. But before you start advertising, check with your local and State governments for any requirements you must consider, such as insurance for the company, licenses or certifications.
Check the local library or bookstore for books about the ins and outs of the credit repair business opportunities. These books will give you insight into the business, possible requirements you have to fulfill, and tips and business techniques to get your consumer credit counseling service started.
Some locations require you to attend training and become certified prior to opening your company. Check to books to look for internet and home study courses, or for professional credit consulting organizations that offer the certification. Become a member of at least one of the many organizations at the federal and State level, and possibly even the local level.
Being certified and a member of an industry association give you and your credit repair business creditability. Couple credibility with professionalism and your Credit Repair Business Opportunities business will have unlimited potential. This goal should be what you want to achieve with your business.
Now that you are certified and a member of an industry organization, you need to set feed, define services and market your credit consulting business. Call local credit repair businesses to get an idea of the services they offer and the fees associated with these services. Go through the information, decide on your fees and services, and get ready to advertise.
Create credit repair business flyers and business cards, either professionally or on your home computer. On the flyers, give a brief description about your services and contact information. Place these flyers everywhere possible. You may also want to place small ads for your services in local newspapers and periodicals.
Offer friends and family your credit card counseling services for free, and ask them for a letter of recommendation. This can help build your client base. Word of mouth is the best mode of advertising.
To get you credit repair business out into the community, you may want to consider giving credit card counseling seminars or classes to help people help themselves before they are too far in debt. Or you can give talks at high schools and colleges about ways to stay out of debt. The students will go home with the information you have given them, and a business card, and will tell their parents, who could be your next clients.
As a credit consultant, you want to build your business locally before growing it very bid or going to the internet. BY gaining credibility early, when you branch out, you will have experience and prior customer satisfaction to back you up.
Stay honest with your clients. You are providing them with a very important service. They need to trust you and your business. Give them the information they need and want. This will enhance your credibility and increase your credit repair business opportunities of the future.
© Copyright Randy Wilson, All Rights Reserved.
About the Author
Randy has dozens more home based business articles such as Easy Start Home Businesses and Earthworm Growing Business.
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The Credit Repair Business
by Marco Carbajo
Despite the massive efforts of the credit reporting agencies to convince you otherwise, there are many credit repair companies that are no different than most other services. Like all industries, less-than-honest companies do exist and are damaging to their clients and to the credit repair industry as a whole.
For example, you may have 20 car mechanics in your hometown. Most likely, 17-18 of these mechanics are honest, hardworking people who want to earn a living and give you the best service possible. The other 2 or 3 mechanics may not be so honest and will take your money while not giving you the quality or quantity of service you pay for… or,they may be out-and-out crooks who take your money and lie to you. This doesn't mean that your town is a bad place to get your car fixed; it just means that, like any industry anywhere, there are good companies, mediocre companies, and really bad companies.
As for credit repair-do your homework. Is the company you are selecting a non-profit organization? Are they claiming that they can delete accurate negative information? Do they provide you with consumer rights information? Do they charge outrageous fees? Consumers should take these things into consideration when hiring a credit repair company to help them with their credit issues.
To better understand the credit repair business some background on the industry is necessary. Beginning in the mid to late 1970s, many unscrupulous entrepreneurs realized that millions of Americans have damaged credit report ratings and that they could make money by convincing these people they could remove all negative information from their credit files. Because the industry was completely unregulated, hundreds of credit repair companies sprung up all over the place. Most of them were dishonest and were interested only in stealing money from gullible consumers. As a consequence, thousands of consumers were milked out of millions of dollars while receiving little, if any, of what was promised to them.
Federal and state authorities received numerous complaints about credit repair companies, and as a result, both federal and state governments began passing laws regulating the credit repair industry. In addition, credit repair companies must contract with all clients in writing before work begins and cannot collect any upfront fees unless they are a nonprofit organization, a licensed attorney who specializes in credit repair, or a person who works in one of several other areas who are exempt from this requirement. Many states require credit repair companies to register with the attorney general's office in their state and post a surety bond.
Despite such regulation, dishonest credit repair companies still operate. This bit of knowledge is used by dishonest credit repair services to perform credit repair for their clients. Their aim is to either overwhelm the Big Three with reverification requests ( letter writing ) with the goal of getting as much negative information removed as they possibly can, or hoping that a few requests slip through and result in the removal of negative information.
It is important to note that not all credit repair companies are dishonest. Some companies offer a valuable service to those who find the whole process of credit repair too boring or complex, or just don't have the time to learn about credit repair. Credit Repair Service is as legitimate and worthwhile as a tax preparation service -- the IRS claims that everyone can do their own taxes, but most people hire someone else to do them.
A number of credit repair companies have been offering to give consumers a "fresh start" with their credit histories. These companies seek to obtain a second Social Security number or federal ID number for their clients. This is commonly referred to as "file segregation". File segregation is a fraudulent practice and violates many Federal and State Laws. I strongly oppose the abuse of consumers by companies and individuals which direct you to commit fraud in order to obtain "clean" credit reports. In this scheme, you are promised a chance to hide unfavorable credit information by establishing a new credit identity. That may sound perfect, especially if you're afraid that you won't get any credit as long as bankruptcy appears on your credit record.The problem: "File segregation" is illegal. If you use it, you could face fines or even a prison sentence.
If you have filed for bankruptcy, you may receive a letter from a credit repair company that warns you about your inability to get credit cards, personal loans, or any other types of credit for 10 years. For a fee, the company promises to help you hide your bankruptcy and establish a new credit identity to use when you apply for credit. These companies also make pitches in classified ads, on radio and TV, and even over the Internet.If you pay the fee and sign up for the service, you may be directed to apply for an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). Typically, EINs -- which resemble Social Security numbers -- are used by businesses to report financial information to the IRS and the Social Security Administration. After you receive your EIN, the credit repair service will tell you to use it in place of your Social Security number when you apply for credit. They'll also tell you to use a new mailing address and some credit references.
To convince you to establish a new credit identity, the credit repair service is likely to make a variety of false claims. Listen carefully; these false claims, along with the pitch for getting a new credit identity, should alert you to the possibility of fraud. You'll probably hear:
Claim 1: You will not be able to get credit for 10 years (the period of time bankruptcy information may stay on your credit record).Each creditor has its own criteria for granting credit. While one may reject your application because of a bankruptcy, another may grant you credit shortly after you filed for bankruptcy. And, given a new reliable payment record, your chances of getting credit will probably increase as time passes.
Claim 2: The company or "file segregation" program is affiliated with the federal government.
The federal government does not support or work with companies that offer such programs.
Claim 3: The "file segregation" program is legal.
It is a federal crime to make any false statements on a loan or credit application. The credit repair company may advise you to do just that. It is a federal crime to misrepresent your Social Security number. It also is a federal crime to obtain an EIN from the IRS under false pretenses. Further, you could be charged with mail or wire fraud if you use the mail or the telephone to apply for credit and provide false information. Worse yet, file segregation likely would constitute civil fraud under many state laws.
All the information in this article is provided to help clear up those "questionable" items on your credit reports. "Credit repair" is a general term usually used to describe a systematic process of rehabilitating an individual's creditworthiness, or financial credit reputation. The process is generally started by obtaining copies of the individual's credit report, reviewing the credit report for errors, omissions, and misleading information, and requesting corrections to such information by means of a formal dispute letter. Many laws, regulations, and practices govern this process, and many organizations exist that will assist in guiding individuals through this sometimes complex process, though much, if not all, may be accomplished by individuals by their own efforts.
When you identify inaccurate, erroneous, and obsolete entries on your credit reports and bring it to the credit reporting agency's attention they must do one of two things by law. Correct it or delete it! The credit bureaus must investigate all disputes and respond to you within a reasonable time period which is around 30 days. If you are in the process of applying for a loan, immediately notify your lender of any incorrect information in your report. Your lender will need to reorder your credit report and score once any changes have been made to your information at the credit bureau. Small errors may have effect on your score. If there are significant errors, however, the lender may turn down you're application entirely or charge you a much higher interest rate. The three major credit-reporting agencies under the statutes of the Fair Credit Reporting Act (FCRA) must deliver an accurate credit report to every American consumer.
About the Author
Marco Carbajo is the author of many credit and debt related articles. If you are looking for help to repair your credit or eliminate debt please visit us at http://www.ucan2opty.com
Credit Counseling or Bankruptcy: Which is Best for You?
by Ethan Hunter
People often get to a place where they simply can't pay their bills, especially in today's economy which is not particularly sympathetic toward the poor or even the middle class. Inflation has impacted nearly every facet of daily life including food, gas, rent, clothes, utility bills and more. At the same time, salaries, especially in the lower ranges, have utterly failed to keep pace. When you get to the place where you cannot pay your bills and have money left over for food and other necessities, there are some hard decisions that have to be faced. The options are credit counseling and debt management services, or bankruptcy. Both have their pros and cons, so which road to take depends largely on the individual and how severe his or her financial problems have grown.
There are numerous credit counseling/debt management services available, both in most local communities and over the Internet. The services vary considerably, for example some charge fees and exist to make a profit, while others are strictly operated by volunteers and don't charge fees for their services. Some services are certified or accredited, and others are not. Some guarantee confidentiality, and unfortunately, others do not.
If your debt situation has not yet reached a point of no return, credit counseling and debt management may be the best option for you. This is the way it works: · Check out a variety of counseling services, both in your community and on the Internet to determine which best suits your needs. Avoid those that charge high fees, do not guarantee your privacy and that don't have any credentials or accreditations to offer. · Make an appointment with the agency of your choice. When you go to the appointment, take as much of your paperwork and documentation with you as possible, i.e. proof of your expenses and income, along with verification of the debts you owe. · The counselor will review your situation and develop a plan to help you pay off your bills. Legitimate counseling services can often persuade your creditors to take less than the total amount you owe and arrange for longer periods of time to pay the debt off. · Instead of paying your bills directly, in most cases, you make one monthly payment to the counseling service, which then distributes that amount among your creditors according to the agreements they have worked out. The arrangement leaves you enough money to live and halts collection procedures. Over a period of time, all your bills are paid in full and you essentially have a new start, provided you don't get yourself back into additional debt in the meantime.
On the other hand, if you have too much debt and your creditors are not inclined to work out payment arrangements with you, the best possibility may be declaring bankruptcy. There are numerous bankruptcy attorneys and, again, it behooves you to shop around to obtain the best possible services at the least possible price.
It is wisest to work with an attorney who does a lot of bankruptcy work because he or she will be most familiar with the rules and regulations as well as with the judges and bankruptcy trustees who work in the local system. A good attorney will know what the trustees and the courts will allow and what they won't, and will be able to advise you as to your best options.
There are two kinds of bankruptcies available to individual debtors. Those are Chapter 7 and Chapter 13. Chapter 7 is a complete discharge of all nonsecured debts, and some secured ones, generally including everything except taxes and school loans. The debtor generally has to give up anything of value that can be sold to pay his or her debts, although in most cases a person's home and their primary transportation are exempted. In a Chapter 13, nothing has to be given up, but the debts have to be paid in full. The court simply works out a repayment plan and instead of paying the money to your debtors, you pay it to the bankruptcy trustee who then distributes it to the creditors. There are advantages and disadvantages, as well as eligibility requirements, for both types of bankruptcy and the bankruptcy attorney can best advise you which option will work better in your particular situation.
Whether you choose credit counseling or bankruptcy, either one can help you eliminate debt and get back on your financial feet. Both can stop collections procedures and eliminate annoying and harassing phone calls from collectors. The bottom line is, you don't have to continue suffering; there are ways to get out of the debt situation and begin again. The most important thing is, once you are out of debt, carefully manage your money so you don't land back in the same situation again.
About the Author
Ethan Hunter is the author of many credit related articles. If you are looking for help with Payday loan or any type of faxless loans please visit us at http://www.PaydayLoanChoice.com
Credit Damage: Getting Compensated for Your Loss
by Georg Finder
Until recently lawyers for victims of credit damage had little possibility to collect for damages beyond medical treatment, lost wages and property loss. Insurance companies threw up their hands in sympathy, claiming victims can only be compensated for what can be measured -- tangible goods and services. But, what happens when the victim has lost considerable time from work, the family bank is broke and monthly payments on mortgages, car loans and credit cards payments are missed? Regardless of the haggling between lawyers and insurance companies, it's the credit victim who ends up having to live with a bad credit rating.
Today, there are legally accepted means for measuring loss of credit through the procedure of Credit Damage Measurement (CDM). CDM is fast becoming a potent tool for recoverable credit damage awards when the damage is not self-inflicted. Previously, both judge and jury, and especially the insurance companies, refused to acknowledge CDM claiming it was speculative because they could not define it as tangible damage. However, in case after case, victims of credit damage who use the CDM method are getting compensation for credit loss. Many factors are changing the old mindset including credit bureau technology improvements, the application of the Fair Credit Reporting Act (FCRA), risk scoring sophistication, and the development of CDM as an objective, repeatable method that measures out-of-pocket damage reliably.
Credit Ratings and Recovery
The impact of a bad credit rating is much more significant than most people think. Consider what poorly rated consumers face when they want to lease or buy vehicles, obtain credit cards, buy or lease or refinance their residence. In most cases, it's an easy decision for the creditor: the credit application is simply turned down or the borrower is charged a much higher down payment - maybe thousands of dollars more with monthly payments that are typically several hundred dollars more.
"A person with bad credit is viewed with suspicion and is charged significantly more for future extension of credit because the lender feels the need to protect against a greater risk or default," says Tom Key, a civil litigator practicing in Tustin, CA.
"Over the years I have heard reports of financial damages from clients who have been wrongfully terminated, defrauded, injured in an accident or suffered losses from breach of contract," Key says. "These victims were especially distraught over the fact that their prime credit reputation, carefully nurtured for years, is destroyed overnight. It seemed to me that there must be a way to compensate victims for that type of loss."
Key has witnessed the reactions of many jurors who failed to award a victim of credit damage their rightful compensation simply because they could not quantify the damages. "Jurors want a specific loss that they can count, hold and see," says Key. "Their reasoning is that they need to know that it is genuine. They have a tough time awarding damages based on sympathy. In order for them to confirm authenticity of a claim, they want to see its quantification."
Measuring Loss of Creditworthiness
Assuring authenticity has been a sticky situation when it concerns measuring out-of-pocket loss for victims of credit damage -- until now. Attorneys who represent victims of credit damage are now utilizing the Credit Damage Measurement method to recover out-of-pocket losses for their clients. "CDM measures the actual out-of-pocket dollars reasonably expected from loss of creditworthiness, which includes higher down payments, higher points and costs on loans, higher interest rates, higher monthly payments, or outright denial of credit," says Key. "In addition, the CDM method also calculates the rates, costs and other terms applicable to the resulting credit rating by lenders and projects the results over the relevant number of years for the types of loans the client is likely to seek."
Key continues, "For example, if a client's credit was near perfect before a triggering event, and is subsequently damaged by the event, the CDM procedure can illustrate before and after analyses, calculating the cost of the same loans with the two different credit reports, Pre- injury credit compared to Post-injury credit." In many cases, CDM clients have already realized significant compensation. In one such case CDM was instrumental in recovering $56,000 for damaged credit reputation. "That calculation is the difference between what refinancing a $140,000 loan would have cost my client with their prior rating, and what it will cost them out-of-pocket with their damaged credit rating --measured over a seven-year period."
Isolated Compensation vs. Repeatable Compensation
The CDM method of measuring intangible credit loss is increasingly becoming the basis of recovery for victims of credit damage. It's changing the way judges and juries measure recoverable out-of-pocket loss, and then can compensate for loss of credit expectancy. Certainly there are still some skeptics, mostly defendants. Technically, credit damage measurement is intangible. However, CDM has proven an objective and practical procedure to calculate out-of-pocket damage for companies or families to compensate for their credit damage.
"To have this kind of measurement is an exciting complexity in our society," says Key. "CDM is very understandable and a rather simple way to come to a conclusion of loss for the victim. If you understand the math and are an expert at reading credit reports, the calculations and recovery are undeniable. It's a method of turning isolated compensation into repeatable compensation. It's changing the way jurors rule on these damaging cases. Because of this method, victims of credit damage can be more fairly and more completely compensated for out-of-pocket damage."
About the Author
Georg Finder, president of CM Financial Services of Fullerton, California, wrote and presents the first State Bar accepted continuing legal education seminar on credit reports and credit damage. He can be reached at (714) 441-0900 or at www.creditdamage.com
