Fix Credit Report – Improve Credit Score

On August 6, 2010, in Guest Fix Bad Credit Articles, by admin


Correcting credit errors such as charge offs and collections is not usually performed overnight. However, it is a quicker process if you dispute items in the proper order.

If your credit is a mess, chances are you have a variety of bad credit listings such as charge offs and collections. Some items are more damaging than others.

Ordered below is the list of negative items as they correspond to their severity.

Public Records/Bankruptcy are the most severe. Public records include tax liens and court judgments. These items are allowed to remain on your credit report for 10 years – as opposed to the seven years limitation rule that applies to other items.

When you file bankruptcy, you will have multiple negative credit items. You will have the bankruptcy itself as well as any items that were included in the bankruptcy case. All these notations are equally severe.

A single collection item can lower your score by as much as 100 points overnight. You should dispute any collection error as well as negotiate with the agency for a removal.

Foreclosure/Repossession are likewise very severe. These listings are severely damaging to your score and can keep you from getting the next mortgage or car loan.

A charge off is very severe. You may even have multiple listings on your report for a single charge off since it is bought and reported by third-party collection agencies.

A recent late payment surprisingly is equally bad as a charge off. The more recent a black mark is on your credit report, the more it lowers your credit score. Multiple late payments only make matters worse. The credit bureaus interpret multiple late payments as signs that you are having a financial meltdown.

Moderately severe items include a 30,60,90, or 120 day late payment. These items can either be disputed with the credit bureaus or negotiated with the creditor.

The credit scoring formula is biased more towards recent late payments. Older late payments should be given a low priority in your dispute process.

Incorrect Personal Information such as a wrong address or employer is not important. The credit scoring formula does not use this information to generate your score so it is less important compared to the items above.

In order to quickly clean up your credit report, you must challenge the most severe items first. It does no good to focus your time and effort on insignificant items like your employer or address.

To learn more about credit repair or a free credit repair letter to dispute negative listings visit us. To learn about lexington law a professional credit repair firm visit us.



By: Justin Hutto

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George

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Debt Reduction Planners – Fix Your Credit And Eliminate Debt

On July 15, 2010, in Guest Fix Bad Credit Articles, by admin


When you have bad credit, you don’t realize how much it affects you until you try to use it. For example, trying to buy a car, a house, lease an apartment, or obtain a cell phone all require good credit. If you don’t have good credit, you will have many doors slammed in your face. So, how do you fix your credit? Can it be done and how long does it take? These are all questions for a debt reduction planner, someone well versed in credit fixing techniques who can help you fix your credit so that you can reopen all those doors of opportunity that have been slammed in your face for so long.

First, you have to find a debt reduction planner. There are many companies out there who promise to get you out of debt. But you must be wary of scams. There are bad people out there who can’t wait to take advantage of other people’s dreams. You want to make sure that the debt reduction planners are there for you. A good idea is to go with one of the nonprofit debt reduction planners, but even paying a little bit to get good credit might be worth it. It all depends on how much debt you have.

Once you find a debt reduction planner willing to work with you, that person will pull your credit report from all three agencies and will then devise a plan. The three credit bureaus, Trans Union, Experian and Equifax, are responsible for monitoring the credit of each individual and reports should be obtained from each agency. These will be totaled together and, from those, the debt reduction planner will determine how much you are in debt. That person will then determine how long it will take for you to get out of debt.

The Process Of Fixing Your Credit

The debt reduction planner will tally up your net income, your monthly bills, and your debt, and will then make a monthly payment plan for you in order to fix your credit. This monthly payment plan should be affordable to you and should fix your credit in the allotted time. It’s important, however, to listen to your debt reduction planner. Pay the monthly bill on time and follow the planner’s instructions and you’ll be out of debt in no time at all.

Fixing debt is the debt reduction planner’s job so always pay attention to what they say. It took time to get into debt, so it’s going to take time to get out of debt. Anyone looking for an easy way out should look somewhere else, as there is no quick fix for debt reduction. All you can do is follow the debt reduction planner’s instructions and have plenty of patience in order to fix your credit and reopen all those doors of opportunity that have been continually slammed in your face.



By: archerfraizer

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Dusty

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Confessions of a Credit Repair Agency

On January 26, 2009, in Credit Repair, by admin
Marc Chase asked:


Credit Repair is a very debated topic on the net right now as to whether it’s legal, effective, ethical and an avenue worth pursuing for individuals with negative, inaccurate or unverifiable information on their credit reports. No matter where you search, you will find varying opinions in regard the legitimacy of the credit repair industry, from the FTC and Attorney General, to debt consolidation companies and law firms practicing credit repair companies.

First off to answer the question “is credit repair and its practitioners legal,” the answer is yes! There is a specific body of legislation, the Credit Repair Organizations Act (CROA) that outlines how credit repair companies may legally operate. This Federal regulation is proof that the industry as a whole is legal and not a scam. I think the negative overtones are more likely a case of a few hundred bad apples taking advantage of people.

The second most debated topic in many of the popular credit forums is whether or not one should even use a credit repair company, or give it a go themselves? The art of credit repair or credit restoration is not necessarily a difficult one to grasp and despite what a lot of the credit repair companies and lawyers would like you to believe, there is no “magical, proprietary dispute letter.” Remember, the Fair Credit Reporting Act (FCRA) was set up so that consumers could fix errors on their credit reports on their own. It was not set up so consumers could fix errors If they had the magic letter. It really is almost as simple as saying…

“Hey this is not my account, please verify the information and remove from my report”

So why would you consider hiring a company to improve your credit score if it is so easy? The art of credit repair is not perfectly written letter, but more of knowing the little tricks credit bureaus and collection agents use to avoid eliminating the debt.

As much bad press credit repair agencies have received, bureaus and collection agencies are no angels either. They try and trick you, they don’t always follow procedure and we’ve seen numerous cases of them breaking promises consumers have made with them when negotiating debt.

Credit report repair agencies should be well versed and know what to expect and exactly how to negotiate through all the little tricks that the average consumer wouldn’t. If you are lucky enough to be working with an ethical company that does its job and at a good price, it can work wonders for your credit score.

The people we spoke with that do favor using an agency to fix their credit, do so because typically it’s only 30.00 to 50.00 per month and they just don’t feel like dealing with the headaches, nor do they want to be their own guinea pigs.

If you do make the decision you would rather leave it to the pros, what steps should you take to make sure you’re hiring the right company? At the time of writing this there is very little governing the industry outside of CROA and it is a craps shoot for the most part.

However, there is hope on the horizon. Currently a non-profit organization is being formed called the National Credit Repair Association (NCRA) This industry organization brings overdue legitimacy and integrity to the credit repair field, and represents all certified credit repair organizations. The idea is that accredited credit repair firms are overseen to ensure they embody top standards and ethics, and adhere to all applicable state and federal laws in their practices. In other words, the “BBB” of the Credit Repair Industry.

We highly recommend that you utilize this service when fully launched as it will force legitimate companies to sign up much like they would the BBB and it will also weed out the unscrupulous credit repair companies who do not wish to adhere to standards. The credit repair industry is a legal and much needed industry, but much like any “new fad” it’s going to take time to get regulated, weed out the scum and let the professionals rise to the top.

In closing, credit repair is something that most Americans will probably have to deal with at some point in their lives. It can be done by you with a little homework, accurate record keeping and patience, or you can hire a firm just as long as you’ve done your homework, insist the company is a member of The NCRA and make sure they are not breaking laws when dealing with your personal credit scores.



Moises
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Seven Quick Credit Repair Solutions

On January 18, 2009, in Credit Repair, by admin
Jim Kemish asked:


Credit Repair Hyper Drive

Credit repair can take time, or not. There are many situations where you can get amazing results very quickly. Your credit scores can have a profound impact on your life, and every point counts. Here are seven potent power-packed credit repair solutions you can put to use right away. Are you ready? Let’s go!

Get Your Revolving Balances Down



Fair Isaac Corp, the mastermind behind the credit scores used by virtually all lenders, has been tinkering with the formula they use to calculate your scores. The recent additional emphasis they have put on revolving balances has taken many people by surprise. Are you listening? A maxed out card can now cost you as much as 150 points. Ouch!

Well, there is some good credit repair news here too; pay your darn balances down and watch your score rocket upward. Want to know how far to pay your cards down? Under forty percent is good, under twenty percent is the best. If money is tight you might even consider borrowing from friends and family to make this happen. If you need your scores for a mortgage or car loan you may be living with that interest rate for many years to come.

Challenge Iffy Collections

Do you have collections? Are you ready for a little credit repair magic? Collectors are very different from creditors. Collectors buy and sell collection accounts. When a collector purchases an account they can report it to the credit bureaus. When they sell an account they are supposed to remove the collection from your credit entirely. Unfortunately, there is no incentive for them to cease reporting, so you need to challenge these items. If the collector no longer owns the account you will see it vanish from your credit report. It’s credit repair magic.

Negotiate for Deletion

There is a silver lining to the recession that we are currently struggling through. Collectors are as hungry as everyone else. If a collector contacts you for payment on a legitimate debt you may discover they are willing to negotiate. Your balance is not the only thing that you can negotiate. Collectors have the ability to withdraw the entire account from your credit report. It might be a relief to get an old debt paid off, but when it comes to credit repair it is better to have no collection account on your report than a paid collection.

Boost Your Credit Limits

The credit crunch has caused credit card issuers to tighten their guidelines. Little credit blemishes may now trigger over-the-top responses from credit card companies. American Express has been on a campaign to reduce credit limits on card holders for almost any reason. So this tactic may not work, but it’s worth a try as there are still a few friendly creditors out there. Call your credit card company and ask them to increase your limit. The result will be the same as if you had paid your balance down. For the cost of a phone call you might increase your scores, and maybe a lot!

Call Mom and Become an Authorized User

Another little twist that Fair Isaac Corp added to their latest version of their credit score formula is to block the benefit of purchased authorized user accounts. Until recently you could purchase authorized user status from gray-market brokers and watch your score jump right up. Fair Isaac caught on and put an end to this iffy credit repair practice. However, their filters are still allowing the full benefit for legitimate authorized users. So call Mom and have her add you to one of her perfect credit cards for a nice credit repair boost.

Avoid Store Cards

Store cards, and more generally, consumer credit (such as furniture store accounts) are useless for building your credit, and are likely to put a big dent in your scores. So if you are shopping and are offered a new account in exchange for a discount, think twice. Saving money is a beautiful thing! But if you need your credit scores in the immediate future for any major purchase avoid these accounts like the plague. How bad is it? You are likely to lose one hundred points. It’s credit repair suicide.

Call Credit Repair Pro



If you really want to put some muscle behind your credit repair effort, call a credit repair professional. They will proof read your credit reports, identify everything that should be done and insure that you are not missing anything. When it comes to credit repair every little bit counts. Good luck!

Copyright © 2008 James W. Kemish. All Content. All Rights Reserved.



Patricia
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Everything you Wanted to Know About Credit Repair Software

On January 13, 2009, in Credit Repair, by admin
John Cena asked:


Some companies advertise that they have a credit report repair Software and also they will teach you credit repair secrets, for a fee of course. There is a lot of free information here, if you know where to look. Before you take a credit repair course or sign up for credit report repair, read the facts and the laws relating to credit repair. In this way you may avoid some disappointment and save some money.

What is credit report repair or software? The best kept “secret” is that creditors and credit reporting agencies (commonly referred to as the credit bureaus) make mistakes. What can you learn in a credit repair course? You can learn the basics of bad credit repair, without paying a penny. If you cannot achieve results on your own, then you may need to hire a credit repair lawyer to help you. If you feel that you have exhausted all of the free options, identify what information that you still need and make sure that the credit repair course or software program that you are considering includes that information.

A secret may be defined as “beyond simple understanding”. Using this definition, credit report program is credit report repair that is beyond ordinary understanding. The average person does not understand how credit scores are calculated. Most people do not know what information is on their credit reports. Many people do not know their rights under the law.

Credit repair is a popular subject. It seems that almost everyone wants learn about credit repair. Books and software programs that claim to contain everything you wanted to know about credit repair are being sold on the internet and in retail locations all over the country. There are some questionable credit repair schemes and some companies suggest action which is illegal. Consumers can learn to repair their own credit, but it takes time and patience. The safest bet when hiring someone to do the work for you is to hire a credit repair attorney. In this way, you can be sure that you will achieve results; they know everything there is to know about credit repair. You can also be sure that a credit repair attorney will not advise you to do anything that is illegal. Most of the popular credit repair lawyers do not charge more than the other credit repair companies and some offer money back guarantees.

The Federal Trade Commission regulates credit repair organizations and states that “certain advertising and business practices of some companies engaged in the business of credit repair services have worked a financial hardship upon consumers, particularly those of limited economic means and who are inexperienced in credit matters.” Under the laws regulating credit repair organizations, any company that advertises secret credit report repair or credit repair in general must provide the consumer with certain information. These regulations do not apply to companies that offer a credit repair course or seminar. Most of these are simply rehashing information that has been available for years. If you look in the public library, you will see that individuals have been writing books about credit report repair for years.

There was an individual who advertised his informational packages on TV. One of his reports was “how to get AAA credit” or something like that. This was not any spectacular secret credit report repair. It was not a credit repair course. He advised consumers to make a $500 deposit into a savings account at any bank. Then, using the deposit as security, apply for a loan. Repay the loan and according to him, you would have great credit. This may be information that the average person does not know. It is similar to the secured credit card programs that so many companies offer. The thing about credit is that, it is harder to get, if you really need it. If you have $500 to deposit into a savings account or a secured credit card program, if you have the money to pay off the debts that you owe, you can improve your credit score over time.

Companies that advertise quick free credit report repair are banking on the theory that you do not know how to review your credit reports for inaccurate information. If you have inaccurate, obsolete, misleading or unverifiable information on your credit reports, then the credit bureaus must delete the information. You must “dispute” the information. In other words, you must notify the credit bureaus about the negative information that needs to be deleted. This is the credit report repair that is often the subject of a credit repair course.



Tania
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In Search of the True Credit Repair Professional

On January 6, 2009, in Credit Repair, by admin
Jim Kemish asked:


Now is the Time for Credit Repair

The quality of your credit has never been as important as it is today. Lenders have tightened their guidelines and interest rates are now determined by new Risk-Based Pricing models; the lower your credit score, the higher your rate, and every single point can make a difference. People everywhere are turning to credit repair professionals to help them clean up their credit reports and optimize their credit scores.

The Importance of Professional Help

There is a good reason that so many people are reaching out for credit repair help. There was a time when it was enough if you paid your bills on schedule. Those days are over. The advent of the complicated FICO credit scoring model has made a science of credit score optimization, while the complexity of the credit reporting system has made it more difficult than ever to identify and correct errors.

How to Find the True Credit Repair Pro

Credit repair is no longer a simple matter of spotting an error on your credit report and disputing it with the offending credit bureau. A working knowledge of the Fair Credit Reporting Act is a bare minimum requirement, while your credit score is dependent on many subtle factors, most of which have nothing to do with your ability to make your payments on time. It’s a new world and the right help can make all the difference. Here are the essential qualifications to look for in a credit repair professional.

Knowledge of the Laws

A credit repair professional has an intimate knowledge of the laws that govern all of the participants in the credit reporting system. The credit bureaus are bound by the Fair Credit Reporting Act, collectors are governed by the Fair Debt Collection Practices Act, and state statutes of limitation will contribute significantly to the negotiability of collections.

Familiarity with Lender Remedies

Truly effective credit repair often must look beyond the credit bureaus and include lender cures and rehabilitation opportunities. Many lenders offer attractive programs that can get you back on track and even eliminate bad marks from your credit report. The credit repair professional will be able to guide you through the process of approaching creditors about these opportunities as appropriate. This multi-dimensional approach will insure that you get the best possible results.

An Understanding of the FICO Scoring Model

There are many variables involved in the process of credit score optimization, and everything matters; payment history, account balances and usage, age of accounts, account types and even the mix of accounts. A credit repair professional has in-depth knowledge of the FICO scoring model and will provide you with everything you need to know to manage the content of your credit report, strike the proper balance, and get the most out of your credit score.

Help With Rebuilding Credit

It is not unusual, after a period of financial stress, to have little or no open credit. Your credit scores are based on both the positive and the negative information on your credit reports. Effective credit repair must address both parts of the equation simultaneously. To focus only on removing erroneous derogatory information from your credit report will leave half of your credit repair potential untapped. A credit repair professional will help you rebuild your credit and manage your new debt for the best possible credit score results.

Putting it All Together

The genuine credit repair professional will address all aspects of your credit to insure that you get the best possible results. Everything necessary will be done to clean up your credit reports, improve your credit scores, rebuild your credit, and make you as lender-ready as you can be. In selecting a credit repair service make sure that their program covers every base. And trust yourself. Pick up the phone and interview your prospective choices before signing up. Write down a list of questions and ask away. Your credit is too important not to take the time to make the right choice. Good luck! Copyright © 2008 James W. Kemish. All Content. All Rights Reserved.



Larry
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Does anyone know how to repair credit without paying for a service?

On November 1, 2008, in Credit Repair, by admin
Ready Realtor asked:


I really would like to repair my own credit without having to pay someone.I recently enrolled into a service online that lets me see my credit scores from all three credit bureaus but what can I do from there.Do I need to remove all or just certain ones?Any advice would be very apreciated.

Edgar
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How can I pursue action against someone who stole money from me in exchange for “credit repair”?

On October 19, 2008, in Credit Repair, by admin
texastailfeathers asked:


Nearly a year ago I paid someone to repair my credit. She is licensed. I have a written contract. She has done nothing to help my credit and will not respond to email or telephone inquiries. How can I report her to state licensing agencies (Texas) and the credit bureaus?
This person is not a member of the Better Business Bureau. She works for a mortgage company, but does the “credit repair” independently.
By “independently”, I mean she does not represent any company. This is her “side business”.
She is not representing a COMPANY. She is not a member of BBB. She is a licensed loan officer who does credit repair INDEPENDENTLY as a SIDE BUSINESS. I do have a signed contract with a ONE YEAR GUARANTEE, signed on July 23, 2006.

Emil
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Should I Use a Credit Repair Service?

On September 14, 2008, in Credit Repair, by admin
Stephen Ashton asked:


There are some benefits to using a credit repair company and there are some real disadvantages too. The first thing to think about is why you want to use a credit repair service? Is it because you have bad credit that you want to fix but simply don’t know how? If this is true then try reading a bit of information about how to fix bad credit to see if you think this is something you can do.

If you don’t have time to sit down, write letters and go through the credit reports to see what you can dispute, then a credit repair company is probably for you. A credit repair company will take care of all the tedious tasks that are involved in disputing bad credit marks on your credit report. You should however make sure that you use a company that knows the law so that they can properly understand your needs.

To fix bad credit yourself, all you have to do is request your credit report, read what’s on it when it arrives, and write a letter to dispute the bad credit that you believe is unfair or untrue. At this point you can also write to your creditors to try and negotiate a reasonable pay off plan in return for removing the debt from your credit history. When you pay a credit repair service, this is practically all they do. Firstly they request your credit report or reports, if they are requesting more than one report from the three big credit bureaus.

When not to use a credit repair company

A good credit repair service will be upfront and honest about what they can and can’t do. They will be clear about how much they charge and clear about what you will get from the service.

A bad credit repair service will probably do some the following:

* Try to confuse you with financial jargon so you don’t understand what they are doing

* Don’t tell you what your legal rights are

* Tell you not to contact one of the credit bureaus directly yourself

* Suggest that you try to invent a new credit identity and then apply for a new credit report. This can be done by applying for an Employer Identification Number (EIN) to use instead of your Social Security number.

* Tell you to try and remove all your bad credit regardless of whether it is true or not. If you do this and are found to be committing fraud, you may be held responsible yourself.

So if you are thinking about using a credit repair company you should remember three things:

* Only inaccurate information on your credit report can be removed. So if a credit repair service says they can repair you credit ‘guaranteed’, this simply isn’t true. Credit repair companies have actually been successfully sued for claiming they can remove bad credit when in fact they can’t.

* Credit repair companies can charge high prices for doing something that is pretty routine, so don’t pay big prices because it probably isn’t worth it.

* When a credit repair organization requests your credit report, the credit companies won’t accept any disputes unless it is accompanied by a notarized power of attorney that authorizes a licensed attorney or if the power of attorney is unlimited and irrevocable. Alternatively you or a family member can do it on your behalf.

Using a credit repair service can greatly help you to start to repair your credit score quickly as they can quickly identify where the problems lie in your credit report and highlight any errors that may have been made.



Lucio
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