Jul
30
Credit Repair has become a very hot topic since the US Bankruptcy laws have changed.
Hundreds of credit repair agencies have popped up all over the country and on the Internet. Is this because so many people want to help you?? Can there really be that many who are interested in helping you with credit repair?? What’s a good credit score anyway?? If you had a credit report in front of you, would you know what you’re looking at?
Sadly, financial responsibility is not taught to our children in school. By the time our children reach their late teens they already have offered dozens credit cards. Many take the bait and end up with credit problems before they get married.
This article is designed to help you see that if you’re in need of credit repair, you can do it yourself and save thousands.
A FREE CREDIT REPORT, REALLY??
The very fact that you see lots of commercials on cable TV offering FREE CREDIT REPORTS should tell you something. It’s all about big business folks!! Profits are to be made helping people with their credit repair. Hold the phone!! You can do this yourself and save thousands of dollars.
When you respond to the ads on TV or even online for a FREE CREDIT REPORT you’ll find a few surprises when you get going. Many of them are offer a FREE CREDIT REPORT but you do not get the credit scores. You get a credit history which shows any blemishes etc. on your report. However, they charge you extra for the scores or they want you to sign up for a monthly credit watch service.
You see, it’s a FREE CREDIT REPORT alright, but to get the information you really need, like the scores, you have to pay for them. Then once you get the credit scores what does that mean??
WHAT’S A GOOD CREDIT SCORE ANYWAY?
Your credit score can range from 200 to 850. Lenders will usually give you home loans or car loans with a credit score of 500 and up.
However, the “golden” score is considered to be 720. 720 is the “magic” score for getting any type of credit including nothing-down home loans, loans with no income verification, home loans with an equity line included, etc. Want one of those car loans that have zero percent interest? Have a 720 credit rating.
If you don’t have a 720, try for a 660. 660 means you can get a “no income verification” loan, which is really helpful for self-employed people. You can also get a 5% down loan when purchasing a home with a 660.
If you don’t have a 660, try for a 621. If your “middle score” is 621 or better, you can still get a no-income verification loan, a 10% down home loan, as well as other options.
WHAT ARE CREDIT GRADES?
Credit grades are the way mortgage/lender companies often grade your loan based on certain credit items. These items include payment history, amount of debt payments, bankruptcies, equity position, and your credit score. Here is a guide to help you estimate your credit grade. Remember this is only a guide. Many mortgage/lender companies have exceptions that may affect the outcome. These results may be stricter or more lenient depending on their guidelines.
A General Guide to A, B, C & D Credit Grades
A+ to A- Credit Grade:
Debt Ratio: 28/38
Maximum LTV Ratio: 95%-100%
Additional Requirements: Good/excellent credit grades during last 2 to 5 years. No bankruptcy within the last 2 to 10 years.
Mortgage: Credit Score 670+, 0 times delinquent within the last 24 months.
Installment Loan: Credit Score 660, 0-1 times 30 days delinquent within the last 12 to 24 months.
Revolving Credit: Credit Score 660, 0-1 times 60 days delinquent within the last 12 to 24 months
B+ to B- Credit Grades:
Credit Score: 620
Debt Ratio: 55
Maximum LTV Ratio: 75% to 95%
Additional Requirements: No 60-day mortgage lates. 24 - 48 months since bankruptcy discharge. Higher number of rolling lates may be allowed.
Mortgage: 2-3 times 30 days delinquent within the last 12 months.
Installment Loan: 2-4 times 30 days delinquent within the last 12 months.
Revolving Credit: 0-2 times 30 days delinquent within the last 12 months.
C+ to C- Credit Grades:
Credit Score: 580
Debt Ratio: 55
Maximum LTV Ratio: 75%-90%
Additional Requirements: 12 - 24 months since bankruptcy discharge. High “rolling” lates allowable.
Mortgage: 3-4 times 30 days delinquent within the last 12 months and 0-2 times 60 days delinquent within the last 12 months.
Installment Loan: 4-6 times 30 days delinquent within the last 12 months and 2-4 times 60 days delinquent within the last 12 months.
Revolving Credit: 4-6 times 30 days delinquent within the last 12 months and 2-4 times 60 days delinquent within the last 12 months.
D+ to D- Credit Grades:
Credit Score: 550
Debt Ratio: 50
Maximum LTV Ratio: 65% to 70%
Additional Requirements: Bankruptcy discharge within last 12 months. Judgments to be paid w/loan proceeds. Not in foreclosure.
Mortgage: 2-6 times 60 days delinquent within the last 12 months. Poor payment record with limited 90 day, isolated 120 day.
Installment Loan: 1-2 times 60 days delinquent within the last 12 months. Poor payment record with limited 90 day, isolated 120 day.
Revolving Credit: 1-2 times 60 days delinquent within the last 12 months. Poor payment record with limited 90 day, isolated 120 day.
E Credit Grades:
Credit Score: 520
Debt Ratio: 50
Maximum LTV Ratio: 50% to 65%
Additional Requirements: Possible current bankruptcy, foreclosure, stable current employment.
Mortgage: Poor payment record with a pattern of 30, 60, and 90+ lates.
Installment Loan: Poor payment record with a pattern of 30, 60, and 90+ lates.
Revolving Credit: Poor payment record with a pattern of 30, 60, and 90+ lates.
The figures shown here are estimates. When trying to figure your credit grades, keep in mind the following principles:
Other Things Being Equal
When you have bad credit, all of the other aspects of the loan need to be in order. Equity, stability, income, documentation and assets play a larger role in the approval decision.
Worst Case Scenario
When determining your credit grades, various combinations are allowed, but the worst case will push your grade to a lower credit guide. Late mortgage payments and bankruptcies are the most important.
Going Once, Going Twice
Credit patterns are very important. A high number of recent inquiries and more than a few outstanding loans may signal a problem. A “willingness to pay” is important, thus late payments in the same time period is better than random late payments as they signal an effort to pay even after falling behind.
WHERE DO WE GO FROM HERE??
If your credit scores are 660 and above, you’re in great shape. You should be able to buy a car or house and get the best interest rate. That’s great!!
If you fall into the category where your score is below the 660 mark, well you can buy an auto and a home but you’ll pay a higher interest rate. In the long run this can cost you thousands of dollars. Why should you pay that when you can do your own credit repair and save this money?
One time each year you’re entitled to request a free copy of your credit report, with scores, according to the Fair Credit Reporting Act. Go to http://www.annualcreditreport.com to get this FREE report.
It’s important that people learn how to get this FREE CREDIT REPORT with the scores, then learn to read them. We’re on a mission to help the public with this.
If credit repair is what you need to do, then you need a plan to follow. This article would be 20-30 pages if I outlined it here.
If you need a plan, feel free to click on the credit repair link below for additional information.
By: Jeffrey Ragan
About the Author:
Mr. Ragan has been helping people become
first time home buyers for several years. Using
credit repair has become an important part of this.
Together with his wife, they are working to help more people realize their dreams of home ownership.
Cancer Mesothelioma
Jul
29
This is almost as easy as getting the business up and running. 90% of all credit reports have errors, out dated items, and incorrect information. Most people you know have bad credit, so this creates a big need for your services. Thousands of people need you help. Credit repair professionals are very important. You have the know how and skills to make a difference in someone’s life. There are many ways to market your credit repair business, but here are a couple that have worked for me:
Friends and Family
Like I said before, 90% of all Americans have bad credit, so chances are, you may have some people with credit issues in your family or circle of friends. This is the best place to get your first clients. I actually started out by practicing on my friends and family at deeply discounted rates. This gave me the knowledge and confidence I needed to be very successful. It also gave me the opportunity to change some lives I really care about for the better.
Real Estate Professionals
Real estate agents and mortgage brokers are always looking for a credit repair professional that can get results quickly. They run into many potential homeowners who can’t qualify for a mortgage because of their credit history. Here’s where you expertise comes in. There are special ways to approach real estate professionals when looking for business, but the process is easier than you think. They are a steady source of business if you provide results. These guys are looking for someone who can get scores up quick. The clients they refer to you are going to be highly motivated because they desperately want to own a home. This is probably your best source of referrals when you consider the quality.
Car Dealerships
This is also a very good source of referrals. These sharks will kill for a results oriented credit repair professional. Many people get turned down for auto loans on a daily basis because of bad credit. Car salesmen will provide you with clients, but there must be something in it for them if you know what I mean, so be creative and careful what you promise, as you should always be.
Starting a credit repair business is always a great idea because you will never run out of clients. You are a credit repair professional, but you are also a high powered marketing guru, because the competition is out there coming up with creative ways to get more business. Always try to go out of the way to go against the norm when creating your marketing campaign. If you have an idea that sound crazy or weird, don’t be afraid to try it out. You never know.
By: Carlos Hernandez About the Author:
The credit
repair business is booming. Learning how to start a credit
repair business has been a hot topic in many online blogs and message boards. Starting a credit
repair business is a great way to go if you are looking to start a successful business with a limited budget. Visit
http://www.creditbiztoday.com to learn more
Potty Training
Jul
28
With personal debt at an all-time high, a number of individuals have found that they have overextended themselves and have become immersed in debt. As their debt grows, they can’t help but get more and more behind and their credit score pays the price. If you are one of the many who have had problems with your credit in the past (or still have problems with it), you may be considering credit repair as a way to get back on track.
Before you sign up for a credit repair plan, you should make sure that you understand exactly what is involved in repairing your credit score… while there are a lot of repair agencies that are legitimate, there are also some that seek to prey on those who need help and perform services that are both immoral and illegal.
What Is It?
Obviously, the goal of credit repair is to improve your credit score and get you back on track financially after past credit problems. A variety of services exist, providing everything from credit counselling and debt negotiation to debt consolidation loans and budgeting advice. When used properly, they can not only help you to get caught up with your bills and on the path to a better credit score but they can help you to avoid bankruptcy and set you up to avoid credit problems in the future.
Credit repair takes time, however, and should never be viewed as a “quick fix” for your credit. If an offer claims that they can instantly grant you new credit, then it’s likely not only bogus but can also get you into legal trouble if you accept it.
Common Types
As mentioned above, credit repair can take several different forms. Credit counselling services provide assistance with the budgeting and repayment of your debts, and offer advice on simple ways to improve your credit without additional loans. They also often provide debt negotiation, which is the working out of a settlement with your creditors so that you only have to repay a portion of your original debt within a certain timeframe.
Debt consolidation loans are also used for the purposes of credit repair, allowing you to take out a loan in order to pay off outstanding debts and leaving you with a single monthly loan payment instead of several different payments. Budgeting assistance services are also available to help you get control of your spending and personal finances.
Avoiding Scams
Unfortunately, there will always be unsavory individuals who seek to make money off of those who are in need of assistance.
Any credit repair service that promises instant results or that offers to simply create a new credit report for you should be avoided… what they’re really creating is a business tax identification number, and any individual who uses one is in danger of being charged with fraud and possibly other charges. If an offer sounds too good to be true, then it likely is.
Repairing Your Own Credit
Of course, by paying off old debts and establishing and maintaining new lines of credit you can begin the process of credit repair yourself. Request a copy of your credit report and check it for errors, and then focus on clearing the debts that appear as negative reports.
It may take years for all of the negative reports to expire, but by preventing new ones while increasing your positive reports your credit score will slowly rise on its own.
By: Paul Rogers About the Author:
Get a Mortgage
Jul
28
Undoubtedly, if you have somehow ended up with a less than great credit rating or credit score you have felt the possible effects that this may have on your life. A negative rating will affect your ability to apply for and be approved for loans, credit cards and accounts, which will affect the way in which you shop for and buy items that may well be seen as necessities. Unfortunately though many people only realize this when it is too late, and hence the need to improve credit ratings arises.
Once the realization has been made with regards to having to improve credit ratings and scores or profiles, the next step is asking where should one begin. General consensus indicates that obtaining a full credit report is the most logical place to begin, but this should also be done in conjunction with actually determining what your credit situation really is like. This is easily accomplished by sitting down and listing all accounts and outstanding debts, regardless of size or nature thereof.
This will serve as a great basis for you to get back on to the so called straight and narrow when it comes to your financial affairs and is absolutely necessary for you to improve credit and the overall situation within which you find yourself. And although there may be companies that are out there to help improve credit, there are also those that may possibly be what is often referred to as scam artists, and like any industry these unsavoury characters exist within this sector too. There are also those companies that are indeed valid and can help you improve credit ratings.
To get back to doing things by yourself, once you have established the exact position that you find yourself in, the next best step is to approach your creditors and discuss the payment terms and the current situation you find yourself in. This may be somewhat of a humbling experience and will require definite and focussed persistence. However by entering into negotiations with your creditors you will be taking a valuable step to improve credit ratings and standing, as these people are the ones who may or may not provide negative comments and ratings within your credit report.
If you make any arrangements or agreements with any of your creditors make sure that you stick to these agreements, especially considering the fact that they might be slightly more lenient on repayments, assuming you did negotiate a better payment structure. If you renege from these agreements you may find that your creditors will certainly not be as accommodating as they were the first time around.
Before looking to improve credit ratings and your report consider the various options that are available, this in turn can help you do this yourself. In the event that you may be too busy then considering a legitimate company that can assist you may well be the best option for you.
By: Chris Kennelly About the Author:
When you decide to
improve credit ratings and scores, you should consider all available options. Visit
Credit Repair Me for some great resources, ideas and tips.
Dog Pet Supplies
Jul
25
Credit is one of your most valuable assets. Unfortunately far too many people do not realize this until their credit has been brought into question and once it has been tarnished it is hard to regain. In some cases good credit is lost because of abuse of credit and in other cases it is lost as of a result of an error on the credit bureaus part or because of identity theft. No matter what the cause when a person wants go straighten their credit out, a credit repair letter is in order and should be one of the first steps taken. A good start is looking at credit repair sample letters to see how others have done it.
When your credit has been listed as in arrears or bad, everyone assumes that the report is right unless you take some action to correct the situation. It is up to you to contact the credit company and initiate the first step in this procedure. For this reason it is important that you request and review your free credit report each year to be sure that there are no errors in it. When an error is found you will want to immediately prepare and send a letter asking for an explanation of the bad rating. If you do not know how to do this follow the example of one or more credit repair letters to get started.
Free credit repair letters are available online and can be found at such places as CreditInfoCenter.com, debt-n-credit-letters.com, or ftc.gov. Remember that the credit repair letters found there are samples and should be used as such. Do not cut and paste a credit repair letter because they are probably not personalized for you. For one thing you will want to be sure that the information that you use in it all refers to you and your account. In most cases you will want to personalize the wording so that, while the idea is there, the words come from you and deal with your issues with the charge(s).
Some of the credit repair sample letters you may find when searching on your own will be very confrontational. While you may be tempted to go in fighting, it is best to start with a simple letter of inquiry. Let them know that you dispute the charges and that you know your rights concerning your credit. Ask them for the information they have to support their claim and let them know that you are willing to work with them to straighten out the problem.
By: Louis Z. About the Author:
Hosting for SEO
Jul
24
If you are concerned about your credit reports then it is a good idea to check them regularly. One source has reported that up to seventy percent of all credit reports have errors on them. These errors could mean that you do not get the credit cards or loans that you apply for. A bad credit report can even affect your employment prospects as many employers check them now. And even if your credit report is not affected enough for you to be turned down for a loan, it can mean that you are offered a loan for a much higher interest rate than you would otherwise have been.
You do have the right to see your credit reports and the company must send them to you if you ask for them. It is essential to check them regularly so you can make sure that the information on it is correct. If there are errors on your report and you do not check it then you will not know. Many in the industry recommend that you check your credit report at least every six months. It is not always the fault of the credit report companies. The financial companies sometimes give them incorrect information.
It is also possible that the errors were caused by payments that you have made being shown as coming from someone else’s account, mistakes in spelling or numbers, reading information incorrectly even bills that are posted to an old address. There are any number of reasons that you can have bad credit report, but you need to know that it has happened and how to fix it. One way is to employ a credit repair consultant. They know the system really well and will help you to sort out what has gone wrong if you do not have the time to. A credit repair consultant will also know the best way to get the company to act quickly so that your credit is not affected for too long.
If you do not have the time to do the work yourself, then employing a credit repair consultant can be a very good way to make sure that everything is ok. Although it will cost you extra to employ a credit repair consultant if it is important that your credit history is good then it might be worth the extra cost so that you know that it is all right.
By: Tim Gorman About the Author:
Forex Trading
Jul
21
The burden of financial debt and bad credit can make life really stressful at times. Creditors are getting more and more strict about credit score requirements. More than 30 % of employers are running pre-employment credit checks as a part of the hiring process. Certain landlords also want a copy of your credit report before signing a lease with you. Now more than ever bad credit can act as an obstacle to getting a house, a loan, even a job. If you are in that type of dire situation, don’t despair. More than 30 million Americans have credit that is far from perfect. However only a few of them know that fixing your credit is not that hard. If you need help fix credit, you should keep three things in mind:
1 Steer clear of late payments and always pay on time. That golden rule does not refer only to credit cards and mortgages. Even utility bills, parking tickets and stuff that seems unrelated to credit. Your three digit FICO score is a function of different factors including payment history, credit car balances and the types of loans you obtained. Among these factors paying on time ranks first. A single 90 day late payment can drop your credit score by almost 100 points. If you want to fix credit fast, you have to take care of all late payments.
2 Keep a reasonable balance/limit ratio on your credit cards. Racking up big balances (regardless of whether you pay them in full at the end of the month )works against your credit score. Ideally you balance should be kept below 30% of your card limit. If you balance gets too high, you can try increasing your credit limit. This will bring the balance/limit ratio to less dangerous zones
3 Negotiate your way out of debt. Try to contact all collection agencies. Most of the time you’ll be able to negotiate settlement for less that you actually owe. Contact creditor and negotiate a better payment plan. Also request that paid collections and late payment are deleted from your credit report. If you have been a good customer, most creditors will do the favor and delete your late payments. The key to success here is persistence and diplomacy. If customer service members don’t want to cooperate, call the next day and try again.
There are a lot of proven methods that can help you rack up credit points . If you need help fix credit fast, then don’t hesitate. Take advantage of credit tricks that have proven to work.
By: Irena Bocheva About the Author:
Teen Children
Jul
20
Establishing a good FICO credit score isn’t all that difficult; all you have to do is pay your bills on time. But if you have a bad credit score from a history of not paying your bills promptly, repairing your score and building it up to a level where you can get competitive loan rates can take time. It can take several years of paying your bills on time to build up your score and it can take seven years to wipe out a judgment or a bankruptcy from your credit report. Most consumers, understandably, would rather not wait that long and there is not shortage of companies that promise to repair credit quickly.
Several companies are offering dramatic increases in credit scores of up to 200 points in as little as 60 days using something known as “seasoned credit.” The concept is simple - if you are added to the credit account of someone with good credit as a cosigner, that good credit will add to your own credit score. What these companies do, for fees ranging up to $5000, is arrange to add your name as a cosigner to the accounts of willing participants who have good credit of their own.
Adding a cosigner to an account isn’t illegal; husbands and wives add each other to their own accounts all the time. What is illegal about this scheme is that it is a deliberate effort to manipulate credit reports and credit scores. If it is done for purposes of qualifying for a loan for which the borrower otherwise wouldn’t qualify, such as for a mortgage, it constitutes fraud.
In addition to the questionable legality of the practice, there are some other reasons why this sort of credit “repair” should not be attempted. The idea of having someone else’s credit rub off on you works both ways. Customers of these companies have no idea whose accounts their names are being attached to, and if those customers stop paying their bills, then their credit score will go down along with yours. None of this is under your control; you are stuck with whomever they stick you with. Since these companies advertise that once your score increases, you can become part of their “good credit network”, it only stands to reason that you may have your name attached to that of a person who only recently had a bad payment history, too.
Increasing your credit score by 200 or more points in 60 days’ time sounds like a great idea. But the risks of paying someone thousands of dollars to do it for you are great. It is better to build your credit the old fashioned way. Take your time.
By: Charles Essmeier About the Author:
©Copyright 2006 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, personal bankruptcy, establishing credit and credit counseling and HomeEquityHelp.net, a site devoted to information regarding
mortgages and home equity loans.
Malpractice Lawyers
Jul
19
If you own or work for a credit repair business, or you are considering starting a credit repair business, you may have at one time or another considered purchasing exclusive credit repair leads.
For starters, the purchase of credit repair leads is a wise choice for your company because the people that fill out these on line forms for credit repair are serious about getting their credit fixed.
They are not simply surfing the net, looking for information or a free ride. The minute they filled out the form and hit submit, they committed themselves to seeking the help of credit repair professionals and are waiting on a phone call.
Exclusive credit repair leads can be purchased relatively cheap, so it may be in your best interest to buy them that way and eliminate any competition.
Of course before you go and commit yourself to purchasing exclusive credit repair leads, you will want to make sure that they are exactly that.
You certainly don’t want to be purchasing leads that are old or have been recycled.
So before you commit to a credit repair company, call and speak with someone in customer service. Find out how they obtain their leads and how they will be delivered to you.
If you cannot get a hold of anyone in customer service, or you are not satisfied with their answers, than move onto the next credit repair company.
Remember, you work hard for your money, so if you are not happy with the customer service or the answers that they give you, than you can count on not being happy with leads they send you.
By: Jay Conners About the Author:
Jay Conners is the owner of two mortgage related lead sites where he obtains leads from people looking for credit
repair. Please visit his sites at [http://www.callprospect.com/credit_
repair_leads.html] And
http://www.callprospect.com
Your Family
Jul
19
Lexington Law Firm is one of the most popular credit repair companies on the Internet. They have been in business for over 15 years and have helped over 300,000 clients repair their credit reports. Lexington Law works with clients to improve their credit reports legally and affordably.
Lexington Law is the trusted leader in credit report repair for a reason: they make the process easy and effective for their clients. Their services have proven so effective that their participating Concord level clients have seen an average of 8.7 deletions from their combined credit reports by month 3, and 28.6 deletions by month 12. (Your results may vary.)
Credit repair companies leverage your consumer rights to engage the credit bureaus and assist with your credit rating. They work on your behalf to remove questionable negative items from your credit reports.
Lexington begins the dispute process by drawing upon its vast arsenal of credit report repair strategies and experience to challenge questionable negative items directly with the credit bureaus. The credit bureaus have 30 days to investigate your dispute. After that, they must inform you of their results, and send you a free copy of your updated report. It usually takes 60 days from the day they send a dispute to the day you receive an updated report. When you receive a response from a credit bureau you simple make a copy of the updated report for your records then send the original to Lexington Law. Lexington Law then repeats the cycle, this time hopefully with fewer questionable items on your credit report.
The nice thing about Lexington Law is that their service is backed by a refund policy which entitles you to some or all of your money back if enough disputed items are not removed. If you read the testimonials on their website you will certainly see how happy and impressed their customers are with their service.
By: Chane Steiner About the Author:
Immigration Lawyers
Jul
14
If you are trying to fix credit fast there are several ways you can get it done. Most of these methods will help you quickly repair your credit. While these changes will not happen overnight they can happen in as little as 30 days if you use the tips below to clean up your bad credit history.
Start Paying on TimeWhile very basic advice it is also the most critical because if you are not paying your current bills on time then any effort to repair your FICO score will fail. To give you an example of how critical timely payments are the average score drop from a single thirty day late payment is 75 points!
Pay Down Your Current BalancesDo whatever it takes to bring the current balances of your credit cards and other accounts down to below 50% of the accounts limit. This is the point where your risk level starts to drop and your FICO scores will start to increase. And keep in mind that how much of your available credit you have used can make up 30% of your scores.
Do Not Close Your AccountsRoughly 15% of your FICO score will be determined by how long your accounts have been open. Many people mistakenly close older accounts when they do balance transfers. By closing older accounts and replacing them with brand new ones you will be reducing your scores quickly.
Do Self Help Credit RepairBy disputing the negative information as well as the information that maybe false on your credit report you can dramatically increase your credit scores in a short period of time. You can either pay a professional service to do this for you or you can do it yourself. I recommend that you save a lot of money and do credit repair yourself and if you are unfamiliar with how its done you can always down load a credit repair guide online.
By: Darin Sewell About the Author:
Find Your Niche
Jul
13
Maybe your application for a credit car has been declined. Or maybe when you went to get a cell phone they told you that you’d need a $500 deposit. You’re not exactly sure how or why you have bad credit; all you know is that you have bad credit. Hopefully at this point you have decided to find out what’s on your credit report and what your credit scores are
It’s at this time where most people find erroneous, inaccurate or unfamiliar accounts on their credit reports. In fact, a study by the U.S. Public Interest Research Group found that 79% of all credit reports contained errors. These accounts could be the reason you’re not getting approved for that loan.
The first thing you should know is this: Under the Fair Credit Reporting Act, the only information that can remain on your credit report is not what is accurate, but what can be proven accurate. The information contained on your credit report was not reported by you and therefore you are not the one that has to prove the accuracy of the accounts. It was reported by your creditors or by collection agencies who think that you owe them something.
You have the right to dispute any information on your credit report. By disputing an account that you know is yours, you are not being dishonest. You are simply are asking the creditor and the credit bureaus to prove that it belongs on your credit report and to prove that the information they are providing is 100% accurate. If it’s not, they are violating your federal rights and the information must be removed or corrected immediately. If this is the case, you may seek damages against both the creditors and the credit bureaus. For this you will want to consult with an attorney specializing in bad credit report repair.
Please note that the credit bureaus do not like such disputes. Due to the amount of erroneous information they report, they must hire lots of workers to handles these disputes. And since it’s free for consumers to send in as many disputes as they want, the credit bureaus don’t make any money from this part of their business. In fact, they are losing money because of it!
The credit bureaus make their money from selling your private information not from making sure it’s correct. They would prefer that you never contact them about the accuracy of it. And that’s why it’s no surprise that they make it as difficult as they can for you to contact them and dispute accounts with them. They want to be able to sell information on you whether it’s correct or not. They don’t care about the damage it causes to your personal financial lives - they’re not paid to.
By: Chane Steiner About the Author:
Internet Phone
Jul
10
Fixing your credit without the help of any 3rd party is not only a possibility but has been a reality for thousands of people with blemished credit. You can repair and rebuild your own credit rating and score.
For those people that go the route of hiring a credit repair company, they need to understand that they should be in it for the long haul and not expect results after the first week. It will take a week just to request and receive a copy of your 3 main credit reports from the bureaus.
Most credit repair companies charge on a monthly basis and you can expect to be a member to receive their services for at least 3 months.
It is important to know that you can achieve the same results that the credit repair companies do by repairing your own credit, the big secret of these companies is the fact that they understand the laws governing credit bureaus, collection agencies and any other facts that have to do with your credit information.
These laws make it possible to have certain types of information deleted from your credit report. It is a must that you have a good knowledge of these laws so that you are able to perform the same actions that credit repair companies do regularly to see results on their clients credit files.
Its not as hard as you make think, most of the information is pretty straight forward and most of the communicating you will be doing with the bureaus will be done via a simple letter worded to get results of a better credit file.
There are self-help credit repair kits that teach you everything you need to know to be able to fix your credit on your own.
By: Tony Banks About the Author:
Skin Care
Jul
10
Everyone has thought of starting a business at some point.
Jul
7
It’s so easy to fall into the trap of thinking that after a foreclosure, your debts have been wiped clean and you can start over again. But, it just isn’t that easy. Any time you have been forced to file for bankruptcy because of your financial difficulties, your credit rating has been damaged. Credit repair after foreclosure is possible, but the smart consumer will also take steps to monitor his spending so as not to fall into the same trap again a few years down the line.
The steps to begin to rebuild your credit after a foreclosure are quite simple, but it isn’t always easy to get into the habit of doing them. Still, it is imperative that you attempt to put the following into practice -
Create a family budget, and then stick to it - no exceptions! Don’t let anything stand in the way of you paying your bills on time. Get some professional help in managing your finances.
The last item is the one that many people seem to have a problem with. The common consensus among family members is usually that it’s easy to handle this new plan of living within a budget themselves. You will need to stand firm and ignore all protests, for if it were that simple, you would not be in the situation you are in right now.
Taking Your Time Pays Off
You are not going to be able to do all of this overnight. This is where the plan of receiving counseling can pay off in a big way. Counselors will allow you to talk it all out, and perhaps you can better understand how you and your family managed to get into the habit of throwing caution to the winds and overspending. Credit counselors will also impress upon you the importance of repairing your credit, and how vital it can be to your future.
Poor credit can keep you from getting a good mortgage rate should you ever want to buy a home, which is the dream of every American family. It can affect your chances of getting a better-paying job, or stop short any prospect of getting a promotion in the career you already have established. Yes, your employer can and will check your credit record! Many people are surprised to hear this, but poor credit has kept many an enterprising soul from being offered a promotion that could make a world of difference to families’ finances.
And, how about that new car you have your eye on? Unless you can get your budget established and your credit straightened out, you can kiss goodbye the chances of getting it financed at an agreeable rate. You got into debt for reasons that seemed right to you at the time. Now, with the aid of credit repair after foreclosure, you can smooth out your mistake and plan for the future with a smile of confidence.
By: Ann Richter About the Author:
Mesothelioma Lawyers
Jul
6
“Do you think I should use a credit repair service?” is a question that is often asked in forums and newsgroups that deal with credit and finance matters. “Are credit repair specialists the only people who can help me to repair my credit rating?” To answer these questions we first need to distinguish between genuine credit specialists and those that merely claim to be so, and then to consider whether you have to employ someone or whether you can deal with the problem yourself.
Anyone considering using a credit repair service should first read the advice of the Federal Trade Commission on this subject. Under the heading of “The Scam” it warns of companies that promise to clean up your credit report so that you will be able to take on new loans to buy a car or to move house. In many cases these companies charge you a large fee upfront and then fail to deliver. Warning signs to look out for are companies that want you to pay in advance before they provide the credit repair service and those that do not explain your legal rights. Other indications are suggestions that you should create a new “credit” identity, or even a new personal identity, both of which could amount to fraud.
Despite these dire warnings and talk of scams there are, of course, many genuine credit repair specialists who can help people to improve their credit score. There are limits as to what can legally be achieved. Provided you realise that accurate information on outstanding debts cannot be removed, it is possible to challenge inaccurate records. A specialist who is dealing with these problems on a regular basis will have the knowledge and experience to be able to investigate your credit report and advise you which of the negative entries can be removed. The application for removal of any incorrect entries can then be handled on your behalf.
On the other hand there is nothing to stop you dealing with the matter yourself. Everyone is entitled to receive a free copy of their credit report once a year, and it is recommended that you should do so. If you find any inaccurate or out of date information on the credit report, you should write to Experian, or whichever of the other companies that produced the report, and request the entry be removed or corrected.
So, should you use a credit repair service? Well that is up to you. There is no legal reason why you should not deal with the matter yourself. On the other hand some people may feel happier to pay a credit repair specialist to deal with it on their behalf.
By: Hugh Harris-Evans About the Author:
To receive an intensive 5-day e-mail course on Restoring Your Credit, Click Here:
Credit Repair Strategies.
Hugh Harris-Evans writes on financial matters and is the webmaster of Credit Card Cleanup.com where you will find further articles on credit repair and tips on how to make the most of your credit cards.
Beauty Care
Jul
5
When at a wine tasting event last week, I was speaking with an underwriter from a large insurance personal lines company and was surprised to hear that lenders and their role in credit repair schemes is a popular topic around the water cooler. Being featured more and more in the news, these large banks and private lenders are stepping up to the plate to help the average American and stop these credit repair schemes. Even though they seem to stem from the mortgage industry itself.
Take a hypothetical situation as I will outline below about somebody with a low credit score and it does not seem as “hypothetical” anymore but “average” in today’s market. With the savings rate at a level that it has not seen since the great depression, it is no wonder.
Brian Paltery was living in Florida and trying to buy a home for $420,000. He was happy where he was and wanted to settle down. Living only a short distance from Fort Lauderdale, he wasn’t complaining much. When he approached a lender to get the home loan that he needed. He discovered that it was not as easy as he thought. Even with his long standing employment record and great income, many things came up when his credit report was pulled.
And Brian was shocked. He had thought he had paid all his bills on time and was happy with all of his answers on his credit applications. When they pulled his credit, he found himself to be the victim of not only identity theft in several different ways, but also that his wife had not always paid his television and phone bills on time.
Brian had options of course, as anyone finding themselves with a low credit report will find. He could spend the time to educate himself and spend the time necessary to fix his credit score or pay someone to do it for him. Brian had two kids and a full time job and just didn’t know where to go. Unfortunately for him, he chose to take the easy route and pay someone because he felt it would take too long for him to do it.
After paying upwards of $1,300 of fees, he did receive a higher score and was able to obtain that loan perhaps a couple of months sooner. This kind of practice however is finding a definite opponent and is seriously worrying most people currently in the mortgage industry.
Enough to make the industry shake in its boots, lenders have found that these practices will do nothing more than create another high impact home loan loophole. Federal regulators are saying currently that they are on top of things and looking into it with a very quick reaction.
Even the Fair Isaac Corp. FICO, the creator and producer of the algorithims that run the credit scoring system, have announced plans to do something about this new and growing credit scheme practice. It has been said that they will change the current scoring system for credit in a way that will prevent this problem.
It’s really unfortunate that Brian didn’t understand that with the proper credit repair education, books, programs, etc., he could easily raise his credit score in only a matter of months and obtain that interest rate that he needed for his new home loan. And the lenders were definitely more interested in him once his credit score was raised to a higher rate.
Credit Repair Schemes will hopefully find a reputable enemy in the mortgage and credit scoring industry and be put to a halt. Although this is wishful thinking, hopefully at least something can be done about this practice or we will end up with more people buying homes that they certainly cannot afford.
Although things worked out for Brian in the end, with a little education and the right book, it is easy to fix your own credit score and raise it to the score you have in mind. Saving you a ton of money yearly once it is at a high level of 700 or above, your credit score plays a huge role in your finances and financial freedom. You can do the same thing that these credit repair companies do but for yourself. Using a very small budget of less than $100, and that includes the book, and all of the postage for letters to the credit bureaus, one can raise their credit score in only 90-120 days.
It simply takes a little education and the right person showing you the way to raise your credit score now before the game changes and Fair Isaac Corp., FICO changes the way they calculate credit scoring once again. Its time to save yourself money and get those interest rates you deserve and say you did it by yourself.
By: Amy Pedersen About the Author:
© 2008 Amy Pedersen, Your Credit Score Secrets LLC.
Author Amy Pedersen is penned as a featured Credit Insider, whose articles provide insider tips and insightful knowledge of the credit industry. Her article topics range from the nature of credit reports to the underlying problems facing credit scoring and the laws which support credit report repair done by the average person. To learn more about Self Credit Repair:
Easy Credit Repair [http://www.yourcreditscoresecrets.com/freeguide.html]
Or visit our Daily Blog for up to the Date and BRAND NEW information regarding Credit Repair and Raising your Credit Score now:
Credit Score Secrets Blog.
Online Shopping
Jul
4
It is very important to strategize your disputes in order to have a successful outcome. Not many borrowers are aware that deleting negative items on your credit report can hurt your score. One of the main factors in a credit score is the ‘credit history’. Whether it’s positive/negative it will impact your score in a positive/negative way.
Derogatory accounts can be on your credit report for up to 7yrs from last activity. The activity is being reported for ‘credit history’ and accounts for 15% of your score. If the derog is much older than most of your credit accounts it is actually the account that is giving the positive affect on the score. If you delete this derogatory it WILL lower your score.
Bankruptcies have been deleted from credit reports, and the scores have dropped with many individuals! Generally, a person who files bankruptcy starts rebuilding their credit after 2yrs. All credit items listed under a bankruptcy is UNRATED towards your credit score. The actual bankruptcy (listed under the Public Records section of your credit report) is the item that is RATED. Many disputers are baffled when items listed under a bankruptcy doesn’t raise the credit score after being deleted. Make sure to compare the credit items on your credit report before disputing any items.
These helpful factors can help you dispute effectively:
1. When the account was open
2. When the account was first/last reported
3. Last account activity date
4. Original Creditor or Collection Company
5. Duplicates with different companies for same account.
6. Hard credit inquiries
7. Transfer/Sold/Paid dates
8. 1st Delinquency date.
One of the foolish mistakes a Credit Repair agency may make is attempting to delete an item (from the original creditor), because of late payments. What they’re not realizing is that if the account is ‘closed’ or has been inactive for a while, the original creditor is less likely to respond back to the Credit Bureau. This will result in a ‘deletion’ of a credit item in your ‘credit history’. They should be requesting ‘payment history validation’ to result in ‘NEVER LATE’ on your credit report. Collection, bankruptcy, and lien items cannot be used for this tactic.
By: Robert Enriquez About the Author:
Multi IP SEO Web Hosting
Jul
4
Individuals who have made bad financial choices may find that they are in need of the services of credit repair lawyers. Sometimes credit problems occur through no fault of the debtor. If you have been under siege by debt collectors or are simply trying to clear negative items on your credit reports, the assistance of an attorney may help to resolve the bad press. Even if the negative items are legitimate, the assistance of professional legal counsel can be of assistance to you.
A major benefit of hiring a reputable credit repair law firm to represent you in the process of clearing your credit report is that a legal professional knows the details of the law. Legal counsel will take every possible action regarding deletion or correction of negative credit items. An attorney that is a specialist in credit law is the best choice to deal with credit report items.
When you are being haunted by a negative credit report, you are probably anxious to get the problem areas cleared quickly, especially if your negative credit report is causing problems in getting a home loan, a new vehicle or a job. When you hire a reputable credit repair law firm, they can work to get your problems and debts taken care of quickly.
A credit repair attorney is in the best position to know whether or not debt collectors are harassing you illegally. Many activities conducted by collectors may be illegal or just barely legal and they may also be unethical. By using the services of a law firm you are more likely to see both legal and ethical practices in clearing your credit report.
When it is time to deal with creditors or with the credit bureaus, few individuals can do so as successfully as an attorney who is an experienced negotiator. Put a trained negotiator to work for you, especially if you need to get some debts settled to clear your report. Negotiating is an art, so get a professional artist on your team.
Another reason for using a credit repair legal professional is that the lawyer is not emotionally involved in the outcome. The lawyer is more likely to view things from a business standpoint, as a series of problems to be solved. Because the emotions are not included in the actions, the approach tends to be more logical and systematic.
A credit repair law firm who is working for you to get negative credit items removed from your credit report can generally obtain better settlement offers if required. The attorney will not let you be harmed by unethical or overly harsh arrangements. The attorney is committed to working for your best interest in any settlement arrangements.
Choose a credit repair lawyer to correct problems with your credit report. It is likely to be a better end result for you. Regardless of why you have been besieged by credit report errors, the attorney working for you will not be focused on the reasons why the item occurred, but upon the removal part.
By: Kevin Lynch About the Author:
To learn about
credit repair plus discover more about
Lexington Law visit 724Credit.com and don’t forget to download a free credit
repair ebook.
Free Lawyers
Jul
4
The culture of “buy now, pay later” long associated with Americans, has gripped Canada as well. Lured by attractive offers, many Canadians have flocked to the stores and picked up stuff almost with abandon. While shopping is thrilling, when bills become overdue, credit card finance charges start to kick in, and in the worst cases, banks recall their loans and those on mortgage lose their homes, things are no longer fun.
When many people are in dire straits, a quick credit fixing solution has never sounded more appealing. And there is no shortage of solutions. There is a plethora of companies that claim to repair your credit within hours, at a fee, of course. The Consumer Reporting Act has stipulated how information on your credit history should appear, how long can that information stay in the file and how it may be removed.
The information on individuals is also protected under the Personal Information Protection and Electronic Document Act (PIPEDA) and Personal Information Protection Act (PIPA). So the “credit report fixers” have no wherewithal, legal or otherwise to alter your report. If you pay these companies to repair your credit report, they are not agreeing to remove anything on their own from your credit report, but are offering to show you how to attempt to remove negative things from your credit as well as to work with you to build stronger habits that will repair your credit rating over time.
The primary way to repair your credit report is the long, hard way; pay your bills in time, live within your means and exercise prudence in your spending.
One thing to remember is that you are responsible to verify the information on your credit report so that it reflects the true status of your credit. There are many entities that could submit negative information without the courtesy of informing you. Thus you should request for your credit reports and see if there are any errors.
The two major credit bureaus operating in Canada are Equifax and TransUnion. The Credit reference bureaus will let you access your report at no charge (if done through ordinary mail). Should you spot any inaccuracies, you can dispute the information. The credit bureau will then contact the creditor to verify your claims. If a claim cannot be verified by the supplier of the negative information, or otherwise fails to respond within the given timeline, then the claim must be purged from the report. Credit repair companies also work in this same process to help you repair previous damage.
Suppose you have a bad credit, and you sometimes are in need of credit? Do you just sit down and lament? No. You need to take the first steps to build a good credit history. Going out of your way to deal with your debt problems may appease your creditors, especially banks that you are a good credit risk worth giving a second look. Also, take the initiative to call your lender and explain your situation, and who knows, they just might be convinced to help you with your debt needs.
By: Monty Loree About the Author:
Children’s Furniture
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