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Credit Report Repair – Consumer Alert!

November 13, 2011 By Leave a Comment

There is a widespread problem in America at the moment, thousands of people are being ripped off by credit report repair scammers, they will take your money and you will be left to pick up the pieces.
You need to know the warning signs so you are not another victim, act now before it’s too late. I’ll share with you the top tips to fight the scammers. I’ve combined information and advice from the top consumer advocacy sites on the web.

My information comes from trusted sources including the FTC’s Bureau of Consumer Protection.

So how bad is the problems, well it’s bad enough for the FTC to launch a huge operation to net the fraudsters. It was called “Project Credit Despair” to try and bring about an end to these scammers. They netted over 20 operators and shut them done, but they say many more are out there and they need more resources to keep them off the market.
Be vary wary if Credit Report Repair companies tell you the following:

• Make sure you do not tell you your legal rights and what you can do all totally for free, by law they have to tell you this.

• Run a mile if they recommend that you not contact a credit bureau directly

• Get up and leave if they want you to pay for credit repair services before any services are provided; or

• Look for the exit door if they advise you to dispute all information in your credit report or take any action that seems illegal. Especially things such as creating a new credit identity by obtaining a federal employer identification number to use instead of a social security number. If you follow illegal advice and commit fraud, you may be subject to prosecution.

Here are some other top tips to look out for

• Know that No one can erase negative information if it’s accurate.

• Act Now, If you have credit problems, get counseling

• Know that credit repair services can’t ask for payment until they’ve kept their promises.

• Be cautious about emails for credit services.

• You can’t create a second credit file

• file segregation is what this is know as, it’s illegal and dose not work, or it may work for a while but it will catch up with you, it’s therefore not worth it.

• Correct mistakes on your credit report yourself

• Add an explanation to your report.

• You can actually make contact with your creditors and offer an explanation, they will put this on your report and it’s very much worth it. maybe you lost your job, or got ill.

• The very first step always is to learn what information is in your credit report.

Ge tour Report from one of the bureaus, best get a 3 in 1 package, that way you will get all your reports together, you need to have all 3 copies as you will no doubt have information that is not consistent, then you need to make sure your reports are all the same, you can contact the bureaus directly for this.

1. Equifax – Get 3-in-1 Credit Report with Score Power $39.95
2. Experian – 3 Bureau Credit Report and PLUS Score for $34.95
3. TransUnion – A 3-in-1 Credit Report with FREE for $29.95

I hope this information gets your mind ticking over and gets you into action. I also hope it provides you with a few tips and some good Credit Report Repair advice to think about when obtaining your credit report.

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Young Folk With Debt Issues

November 13, 2011 By Leave a Comment

These days nobody is free from the conveniences offered by loans. The boom in the personal finance markets have brought about a major attitude change. The advice that our grandparents gave us about never lending or borrowing seems out of date in the context of today. With instant satisfaction becoming the buzz word, can people really wait till they collect the dough to afford something? If possible we want things yesterday. And there is always the fear that we might not get it at the same price tomorrow. “There’s no time like the present” seems to have become the motto for the people of today, especially the youth.

Is this a good thing or a bad thing? Well, there are both advantages and disadvantages to this new mode of thinking. When it comes to the youth of the world, loans help them acquire some basic necessities that would not be available to them otherwise. However, a lot of young people are unaware of the concept of financial responsibility. It is not that they are spendthrifts; it is just that they lack adequate knowledge of financial matters. Thus, a lot of young people end up squandering their money. Studies have shown that many young people are deep in credit card debt.

This problem generally begins during one’s college days. With credit card companies becoming even more eager to provide deals for younger people, credit card debt begins early. Moreover, students generally secure education loans to fund their higher education. These problems get exacerbated once the student enters the workforce. Now, the person concerned has to deal not just with the monthly installments on the education loan, but also with various household expenses. The financial strain can be immense on people who have little experience in dealing with issues of personal finance.

As a result, many young people choose to approach a bank for debt help. Switching loans is often a smart choice if one wishes to get rid of a heavy debt burden. Before going in for a loan switch, however, the borrower should look out for the best bargains in the market and calculate additional expenses like arrangement fees and early repayment penalties. Many young people also choose to make use of a business cash advance to help pay up their monthly credit bills. One may feel iffy about taking a loan to repay another, but this is always better than defaulting on one’s loan.

Defaulters generally have a tough time in repairing their bad credit scores. Getting loans becomes a problem if one is a defaulter. Lenders are less likely to trust you with a loan if you have proved to be unreliable in the past. However, these days, there is a vast assortment of adverse credit loans which cater to the needs of people who have adverse credit scores. All this is thanks to the immense boom that the personal finance markets have been experiencing. Life has certainly become easier for young people who are reeling under a burden of debt. Securing debt help is a cinch and young borrowers have reason to rejoice.

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4 Ways To Protect Your Credit Card Information

November 13, 2011 By Leave a Comment

The credit card bill comes in the mail. You know what the charges are and what you plan to pay. Then, you open it and a nauseating feeling comes over you.
$2,120?

A 46-inch plasma television?
Scanning your living room, you can’t spot any high-dollar, big-screen TV and you don’t understand why it is listed on your credit card statement. This sick feeling is shared by many victims of identity theft.

Credit cards are a major source of identity theft. It is common for a thief to steal somebody’s wallet or purse and begin charging up the pilfered debt cards. However, with the advent of the Internet marketplace, all a thief needs are those 16 numbers on the front of your plastic card to put you in deep credit card debt.
Safeguarding your credit card information is crucial to your financial stability. Here are ways to keep those important digits on your credit cards out of an identity thief’s grubby hands.

Shred Credit Card Receipts and Statements

Don’t leave any paper documentation with your credit card number around for long. After you have inspected receipts and statements, shred them. Whatever you do, don’t put them in the trash unshredded or leave them in your car. Thieves glean credit information easily during car thefts and by rummaging through people’s garbage.

Avoid Online Scams

Be very wary about giving your credit card number or Social Security number for online purchases. Shopping over the Internet offers convenience and peril. Some retailers pretend to be legitimate but just set up a Web site to get your financial information. Some of these unscrupulous operators use a mechanism known as phishing by sending out an e-mail asking you to update personal information. They then use the information to steal from you. Research any unfamiliar online outlets that request your information. You can also get virus protection software to weed out unwanted e-mails that may lead you to identity theft.

Look Over Your Shoulder

When giving out financial information or swiping your credit card at a retailer or ATM, make sure no one is eavesdropping. Sometimes you have to input your credit card number and personal identification number on a purchase at an offline retailer. Someone nearby can easily jot down the information without you knowing.

Watch Out For Missing Credit Card Statement

If you don’t receive your credit card bill when it usually shows up, contact your credit card issuer immediately. Someone may have changed the billing address to divert your mail to get your information. A thief may have even swiped it from your mailbox. It is safer to receive and send your credit card bills through a U.S. Post Office box.

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What’s My Score?

November 13, 2011 By Leave a Comment

How often do any of us ever check our credit score? Probably not often enough, we all wait until we go to apply for a loan, then we check, only to realize that there are few problems. By the time we realize there is a problem, it is too late to get the loan we want. To avoid this from happening you need to stay current on our score; this takes very little time, but will definitely pay off.

There are only three credit agencies you need to worry about and they are Equifax, TransUnion, and Experian. These are the agencies that all creditors and lenders use, however not all lenders and creditors report to all three of them. That is why checking all three agencies is so important. They collect all of your credit history and a score is assigned to give future lenders an idea what type of borrower you are. Five factors that make up your score are length of credit, types of credit, amounts owed, payment history, and any new credit. Each one creates your total credit score and what lenders will be looking for.

• Length of your credit history is important because it shows how long you have had good credit and how responsibly you pay your debt back. Cancelling cards you have had for a long time can actually lower your score.

• The type of credit you have available at your disposal. Have a wide range of credit history shows diversity and the ability to pay back all types of loans.

• How much you owe is a delicate balance. Having available credit is always good, not going over 50% of your limit. However, showing that you use your credit regularly is important also.

• Paying back your loans and credit cards in a timely manner is important. Late payments can be worse than an old bankruptcy.

• Signing up for new credit often can bring down your score. Every time you apply, your credit is pulled and there is now a hit on your credit. Be selective of who you apply with.

One thing you do not have to worry about is your credit worthiness being based on race, sex, religion, national origin, or marital status. It is against US law to deny credit on these personal characteristics. Your age and salary may still be considered.

The higher your credit score the better. Scores that are in the 760-850 range typically will receive the lower interest rates because they are in a lower risk group. The lowest score you could have and still possibly be considered for loans or any other credit is in the 500-520 range. The interest rate will definitely be higher and you will not have as many options available to you. Anything below a 500 score will have little chance of approval without doing a secured loan.

Improving your credit score will take time, but is definitely worth it. Do improve the score you will need to check it at least every six months and stay on top of any activity found within it. However, having a score that is 760 or higher will get you best rates and options on loans. Your credit score has become an essential way to do business. It provides confidence to lenders that you will repay your debt and in return you receive the better offers and rates for your hard work.

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Where do I start with this debt consolidation?

November 13, 2011 By Leave a Comment

Looking to consolidate some debt and not sure where to start? Debt consolidation does not have to be complicated and calling the available agencies will get you some free advice on what to do and how to proceed.

Eliminating your debt overnight won’t happen when you decide to go to a debt consolidation form. They can help you in lowering your payments and interests rates when meeting your monthly financial obligations is no longer possible. These firms will also teach you better money management skills so that hopefully you never end up that situation again. These firms are important in helping you learn new money management skills, but also facilitating payments and arrangements with creditors. There are few different options available when it comes to debt consolidation.

First, there are consolidation loans. Basically this is taking out one loan to cover all of the debt and then having one bill or loan payment to make. You may receive help from the loan provider on how to handle the credit agencies or they may be able to negotiate with creditors for you.

Second, if you own a home there is always the option of a consolidation mortgage. This is essentially taking out a second mortgage to pay off your debt. Because it is a mortgage you typically will receive a better interest rate and sometimes the interest is deductible at tax time.

Third, you could also look at the option of remortgages your home. You then have the loan provider add in any debt into the new mortgage payment to pay off your debt.

Fourth, there is the home equity loan, which is similar to a second mortgage except you get the difference between what the home is worth and how much you owe. These have better interest rates also and sometimes work like revolving credit, meaning as you pay it back you can always draw on it again.

Fifth, are using a credit card to pay off other debt so you have one bill again. However, this only works as long as you can get or already have a card with a high enough limit and not too much debt to consolidate. The other drawback is that the interest rate will be higher because it is a credit card.

Lastly, as a last resort if all else has failed then going to a debt settlement company to have them help you negotiate with creditors to clear your debt. You will make a payment to the debt settlement company and they will disperse this money to your creditors evenly.
Taking preventive steps is always the best idea. So that the methods above never need be applied. Seeking debt counseling for yourself or your business will improve your money management skills and teach you techniques to get out of debt and stay out of debt.

Contacting a debt negotiator to speak on your behalf to the creditors to work out new repayment terms. If all you pay are the minimums or credit cards, loans, or other bills, then using the services of debt counselors will help you get out of debt faster with less damage to your credit.

Improving your credit score and finding financial freedom are the two most important steps to take after contacting a debt counselor. Making minimum payments will keep you in debt and possibly put you further into debt as unexpected expenses or emergencies arise. Seeking the advice and tips of debt counselors will relieve you of the financial stress and strain you have been going through. Also, teaching tips for staying out of debt in the future.

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Stop the debt cycle.

November 13, 2011 By Leave a Comment

We all manage to run up our credit cards, but really never have a plan in mind on how we are going to reduce and eliminate the debt. By the time we realize what we have, we are already in over our heads. But, this does not have to happen if you use a few calculations you can know when your debt is getting out of control. Take into consideration these bills and the percentage that they absorb or your income, they are:

• Housing takes up a vast majority at 35%; this is mainly the mortgage or rent

• Next is your transportation at 20% and is usually composed of the car payment, insurance, and gas

• Miscellaneous debt should fall around 15% and these are your credit cards and any and all loans

• Miscellaneous expenses like food, other insurance, medical needs, clothing and so forth is around 20%

• Investments and savings is there is even anything left comes to maybe 10%

What many creditors will be looking at is your debt to income ration. When your debt is more than 50% of your income creditors become nervous, mainly because an unexpected emergency or problem could easily push that number up to 60 or 70% or higher. Leaving you with very little money for essentially needs like food and clothing. Which means you will be more likely to default on your loans or debts to meet those basic needs first. Also, many times your debt to income ratio is based off of your gross yearly pay and not your take home pay. Keeping that in mind will help you determine just how much you should be spending.

Always checking on your credit to debt ratio is important because for example, if you paid off a card, do not close it. Closing the card will bring down your credit score, because the score is comprised of your total debt, along with the length of credit history. Closing a card could actually increase your credit to debt ration and/or shorten the length of your credit history. To figure out the ratio is by totaling all your credit limits and loans and divide by the actual amount spent in total. After paying off a card the debt has been decreased, but closing it will also substantially decrease your available credit.

Learning on to handle your credit and debt before it gets out of control will do a lot more good, then trying to take care of things after they have gone too far. A few ways to do this are:

1. Teaching personal finance as early as Jr. High and High school… Teaching kids then will stop many from making financial blunders later on.

2. Learn to save instead borrowing every time there is something you want. Cutting back on other expenses and saving will get you the item you want and keep you out of debt.

3. Realizing you don’t need everything that is advertised to you. Buying the latest and greatest is fun, but can become a waste of money. Stopping yourself from buying unnecessary items just to have the newest will save you money.

4. Consider buying some items from thrift stores or outlet malls. Items that depreciate in value like electronics can be purchased for half the price they are at retail stores.

Once you have implemented some of these techniques and you will on your way to be debt free. Instead of following the crowd and living with mounds of debt, break the cycle, get out of debt and stay out permanently. Anyone can do this; you don’t have to have a degree in finances to figure it out. Some extra effort and thought and you’ll have the financial freedom you’ve always wanted.

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I need to fix my credit!

November 13, 2011 By Leave a Comment

Once you have found yourself in debt it can be very difficult to figure any way out. The frustration and confusion over what to do can become too much and cause tons of stress and heartache. However, there are a few different ways to get out of debt and start to repair your credit. Some methods may not sound like something that you will want to do, however checking them out completely before making a decision is best.

One method is using a debt consolidation agency to help you negotiate lower interest rates, lower monthly payments, and work out a repayment method that works best for you. The counselors will help you to come up with a plan after they have assessed your situation. Again, they will cover these areas with you and your creditors, they are:

• Help to decrease fees and interest, lowering your monthly payment.

• They will go over your current commitments and help you to simplify them.

• Some agencies will give you reminders of when payments and help keep you on track.

• They will go over how long you have had bad credit and help you to figure out ways to improve it.

Staying on top of your credit report will help you in repairing your credit. So, if you do not want to go through a credit counseling agency and would rather do it yourself, remember to check your report frequently and make sure that any inaccuracies or discrepancies are corrected and resolved. It will take a lot of phone calls and negotiating on your part, however you will be part of the whole process and who better to work in your best interest than yourself.

Improving your score can be difficult and may take awhile. The best way is to keep working at it and disputing anything and all misinformation that appears on your report. Even incorrect address and phone numbers do not look good and should be changed to match correctly. If the accounts on your report are incorrect in any way, even if you do own money but the amount is wrong, get it changed. These changes can mean many points between the score you want and the score you have.

Furthermore, if for some reason you cannot get your credit report online, you can always call their toll free numbers or use their mailing address to receive your free credit report. All three agencies prefer that you if you have a dispute, it is handled through their online system, however they do have forms that can be filled out and sent in the mail to their office for them to review and correct.

There is no quick way to credit repair, it takes a lot of work and time for your score to increase and for negative items to fall off your report. Remembering that agencies that claim that they can erase all bad credit from your report or increase your score overnight to a more desirable number are fraudulent companies. There is no way unfortunately to do this legally. Only using licensed professionals to help you consolidate your debt is recommended. The fix quick schemes are just that schemes and will get you nowhere and will be a complete waste of time. Realizing that it will take time to get out of debt and repair your credit will make the whole process simpler and less painful.

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Raising Your Credit Score.

November 13, 2011 By Leave a Comment

Every time you need to get a loan, apply for credit; get a mortgage, or anything else that deals with money borrowing, companies want to pull a credit report. Even applying for jobs occasionally takes having your credit pulled to even be considered. Insurance companies use credit reports occasionally to decide to cover you or not and what type of rate to give you. Right or wrong, companies want to use our credit scores for everything.

Many consumers do not even know or realize just how often their credit report is pulled and that each time that happens it is a hit on their file, which also brings down their credit score. Because of this it has been advertised more and more to check your credit report periodically to make sure all information is correct and accurate. Staying on top of your credit file will be the first step in achieving a higher credit score. Especially check prior to a major purchase or loan application, as you do not want to get there and be caught off guard by something you had no idea about.

There are a few ways to raise your credit score; one was already mentioned above to periodically check your report accuracy. Make sure your name, address, previous addresses, phone number, years at address, and employment history is correct. This information is wrong about 50% of the time. Correcting these items to make sure they match on all three reports will add confidence to lenders. Also, making sure that accounts that are closed, show as closed. Or that the bank names and the accounts that are showing are actually yours. Information does get misplaced and put onto incorrect files. Correcting these issues will definitely raise your score also.

Another step is not to apply for tons of credit all over the place. Be selective when applying. Each time a credit report is pulled in your name that is a hit and lowers your credit score. Also, each time it is pulled and you are denied that does not look and can lower the score. Picking carefully who you allow to pull your credit, will ensure your name, number, address, and social are not floating all around either.

Lastly, do not close cards that are paid off. This will lower your score because of the debt to income ratio that they calculate. Only using 50% or less of your available balance on a card looks best or 50% of the total available credit. Trying to keep these numbers correct is difficult, but it is part of how your score is calculated.

Remember, you cash instead of credit whenever possible, try to never max out your credit accounts, make payments on time, and try to make more than the minimum payment to pay off the debt faster. Consistently doing these tasks will save you money and time. Your credit score will look better and you will get better rates and loan offers.

Furthermore, as mentioned above make the credit bureaus correct inaccurate or wrong information. This is their job and they are required by law to investigate and fix incorrect information. Stay on top of it with them and do not allow them to get out off doing what they are required to do. Mistakes, misinformation, and wrong accounts all lower your credit score, making your life harder. Writing to the agencies and/or filling out their online forms must be done to have the changes made. It will take some and a lot of effort, but it is well worth it. Your score will improve and your financial life will improve also.

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Teach me some credit techniques!

November 13, 2011 By Leave a Comment

For many of us, having bad credit and poor credit ratings has become routine. Due to the lack of information at times and the time consuming nature of trying to repair damaged credit, it may seem like at times just living with it is a better solution. However, this is not the case, especially when you need a loan or a mortgage. Having bad credit is costly because of the higher interest rates and below average loan offers.

Some people try to find the short cut to credit repair and there just is not one. It takes time and effort on your part to fix and change your credit score. Companies that offer to eliminate and erase negative credit from your report are a scam or may be using illegal method that could get you in trouble later on down the road. Again, employing better credit habits will be the best way to improve your score and repair your damaged report.

Negative items will remain on your credit report for up to seven years. Unless you have proof that there is incorrect information on your report and you can prove it, the negative items will be there for a maximum of seven years. Below are some different ways to repair and fix your credit the legal way.

First, get a copy of your credit report from all three credit agencies and make sure all information is correct with all creditors. The amounts owed, to who, when the account was opened and/or closed. Also, check your name, address, previous addresses listed, phone numbers, and employment history to make sure that all the information is the same on all three reports.

Second, force the agencies to make the necessary changes. They do not want to help you but are required by law to, make them do their jobs. Have the documents ready so that they cannot try to get out of helping you. It can up to six months for a resolution, but keep checking and stay on top of it. Fill out the dispute forms online and send written copies with any proof that is needed. Be clear and concise with your explanations and what needs to be corrected. Keep copies of everything you have sent them, print copies of the online forms, and keep track of when you have spoken with them by phone. You do not want all your hard work to go to waste if you cannot prove something if need be. Always send any correspondence as certified or registered mail so you know they got it and they cannot claim to have received nothing. Keep monitoring your report to make sure that the necessary changes have taken place and that the information is correct. When a credit bureau does not do what they are supposed to and correct your information, especially after you have provided all necessary proof, you can report them to your states Attorney General’s office. They are in violation of the Fair Credit Reporting Act and will be held accountable. Hopefully it will not come to this, however if need be take this final step to resolve the situation.

Creditors only have thirty days to prove the item is yours. After that it must be removed from your credit report. They also have to show as much proof that it is yours as you did to show it is not. You can request proof by requesting that it be sent to you as a paper document. By law all creditors must be able to provide paperwork to support their claim.

Employing some or all of these techniques should help in repairing and changing your credit report. Always staying in touch with the bureaus and the creditor’s will ensure that your case is handled properly and fairly for all parties involved.

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