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Credit Repair – How To Deal With A Credit Bureau

Credit Repair – How To Deal With A Credit Bureau

Having good credit is an essential tool in today’s economy – it allows you to have a credit card, to obtain car and house loans, and many other conveniences. While you can live without good credit, a bad credit rating will certainly affect you negatively throughout your life. The key to your credit rating lies with a credit bureau. There are a handful of credit bureaus in North America that handle all reports – positive and negative – from creditors to create a credit report specific to you. If you have a poor credit history, you must take steps to engage in credit repair, and one of the first and most essential tools is to learn how to effectively deal with your credit bureau.

Credit repair begins with determining which credit bureau holds your file. To do this simply look at any rejection letter from a credit application – the letter, in refusing your credit, will indicate which bureau proved the rating. The next step is to obtain your credit history. Keep in mind that legally it is always free to obtain your credit history if you have recently been denied credit, although many organizations will imply that it is not. The only time you should pay money for a credit report is if you want to receive it instantly, in which case credit bureaus will provide an instant online report for a fee.

When dealing with a credit bureau, understand that they are in the business of collecting and selling information. For this reason, it is in your interest to never provide them with any information that is not legally necessary. Legally, you only need to provide a credit bureau with your name, social security number, and legal address in order to obtain your credit report. The bureaus may request a copy of your social security card, and – if the address they have on file is different from your current one – a copy of something proving your address. Although they may ask for a driver’s license to prove your address, send them a copy of a bill showing your address. The reason you want to be cautious when dealing with credit bureaus is that they own many collection agencies and if you have a credit problem you want to give them as little information as possible with which to harass you.

Once you have received the report, examine it closely for any errors. If anything is in question, send a written request for an investigation to the credit bureau. Legally, the onus is on the credit bureau to document anything on your credit report – if they cannot document it within 30 days, it must be removed. This is the basic strategy of many credit repair companies that charge exorbitant fees: challenge everything negative. In many cases, if the negative item is more than a few years old it will be difficult to verify and the item will be removed.

By learning to properly deal with a credit bureau you can engage in effective credit repair that other companies charge high fees for. By educating yourself as to the legal obligations of the credit bureau, you can, in many cases, repair your own credit quickly and effectively.

Additional information to help you build good credit:

Making a Debt Management Plan for Credit Repair

Top 10 Ways to Repair Your Credit Score

Credit Repair: Good Credit References

Credit Repair: Good Credit References

Unfortunately, there is no magic repair available today. You will need to dedicate a good deal of discipline, patience, and effort to the task. Make sure you also have these good credit references to help you improve your credit history and rating.

It will be a better idea to start with requesting copies of credit reports from each of the credit reference agencies. It is well known that Credit reference agencies do not make credit decisions. They only collect and give credit history and identifying information to potential lenders. If needed this information is also provided to potential credit employers.

The three credit reference agencies are Experian, Equifax, and TransUnion. Most provinces provide at least one free credit report per year. You can often get your report by making a request through the automated telephone service, by regular mail and by email (in my view, a telephone request is the easiest to get a credit report). When you get a report, you must review it carefully for outdated information and errors. If you feel any problem with your credit report, you must report about it to credit companies in writing. Include all supporting documentation you require to substantiate your claim.

If you are like a modern American you should have at least one negative credit reference on your report. These negative credit references include such credit remarks as:

  • Defaults (The lender has doubts that you will repay his owed funds.)
  • Late Payments (It is better to pay early.)
  • Liens or Judgments (Legal process by a lender to recover payment.)
  • Repossessions.
  • Bankruptcies.
  • Excessive Credit Inquires.

As lenders don’t know you personally, they just believe in a system that allows them to make better credit decisions. If you have been denied credit, it is not a personal matter it is just a business decision. After all, would you lend money to someone who has a history of paying it back late or absolutely not paying it back? Your answer will be no, you will not like to give money to a person having negative credit references. Make a plan to develop some good credit references. As you will pay off your credits, your credit report will improve that will change the lender’s attitude for you.

Let’s start with the basics:

  • Pay your bills early.
  • Stabilize.
  • Maintain accounts.
  • Keep your head out of the sand.
  • Consider online banking.

Need more tips? Read the Top 10 Ways to Repair Your Credit Score.

Each of these steps will help you to build good credit references with time.

Evaluating a Credit Repair and Things To Do

Evaluating a Credit Repair and Things To Do

Are you wondering about what you have to do with credit repair? Or maybe you’re just curious whether your credit needs fixing or not? Last time you checked, you didn’t but who knows what could happen in five years? Maybe, you already know the importance of evaluating a credit repair but you’re unsure whether to do it yourself or pay for the services of a credit repair company. Or perhaps, you’re about to undergo a credit check to qualify for career promotion and you’re hoping to make it absolutely sure that you’ll pass?

If so, here’s everything you have to know about evaluating a credit repair.

Each step that you take in credit repair must be evaluated carefully. If you’re going to do it yourself, prepare beforehand by reading credit repair books, searching the Internet for advice from experts, purchasing a do-it-yourself credit repair kit, and so on.

As you read, you’ll see that the first thing everyone shall advise you to do is to procure a copy of your credit report. If you were under the impression that only finance companies, banks, and merchants can ask for a credit report, you’re wrong. As long as you’re asking for a credit report done on you, then certainly you can ask for a copy. This would cost you a bit so better prepare to spend. We advise you to take at least copies of your credit reports from the following credit bureaus: TransUnion, Experian, and Equifax because most financial institutions usually base their decisions on either of the credit reports provided by the aforementioned credit bureaus.

Got your copy now? Okay, roll it out and study each and every item on the list. Don’t overlook anything, even your personal records because you’re certainly not the only Lisa Smith in Washington, D.C. and who knows if the other Ms. Smith have unimaginable debts that were somehow mistakenly listed under your record? It pays to be cautious, okay. Now, with a do-it-yourself credit repair kit, they’re sure to advise you about the common things to watch out for. You’ll be surprised to know that approximately thirty percent of credit reports contain items. So who knows if you’re one of that thirty percent?

Lastly, if you find out anything to dispute, it’s time to fill-up the form for disputes and then approaching the credit bureau responsible for the erroneous credit report. Take our advice and use the time to your disadvantage. File for disputes during the busiest times of the year like the ones following Thanksgiving and Christmas.
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More information are available at http://www.debt-credit-00.info

A Chance For Much Needed Credit Repair Redemption

A Chance For Much Needed Credit Repair Redemption

There are many actions that you can defend by saying “oh, I was just young and foolish then,” but when talking about credit repair redemption this will only get you sympathy from friends. You can pay dearly for foolish financial decisions and laziness for years after you were “young and foolish,” keeping many people from realizing their full potential financially for so long that by the normal age of retirement rolls around they are forced to work 5 or 10 years longer. The answer that smart business and lawyer types have come up with is called credit repair.

This invention of credit repair has literally been a life-saving thing for thousands (maybe even millions) of folks who were bitten in the butt by the false flash of credit and the increased power to buy. The redemption is well worth the time, money, and effort that it takes to get your report clean—just as if you had never had a problem with debt—and allows you to get on with your life and enjoy the financial freedom that you never dreamed was possible.

The best part of this answer, and the part that makes it work so well, is that it is a good deal for everyone involved. You see credit cards and other sources of credit make money when people owe them a balance but only when the person is able to make regular minimum payments on this debt. The sad thing is that there are so many people that became overextended to the point of crippling them so that they couldn’t even make the minimum payment. The loan companies are more than happy in these situations to cut their losses and the original balance back (forgiving some of the finance charges they are owed and allowing the credit repair) because money in the bank makes more money.

So the system allows people to make the credit report look as if they were regular and on time with their payments and allows them to pay back the outstanding balance at rates that will not sink them into oblivion. Credit repair is done through the legal system with lawyers making deals on an individual basis so that both parties win and are able to walk away from the situation in better shape and with a better future. The process also requires that the debtor goes through some financial training so that the situation won’t repeat itself. Sound like credit repair redemption to me, and I like that sound!

Credit Repair Terms – From C to A Paper

Credit Repair Terms – From C to A Paper

If you’ve ever applied for a home loan with less than stellar credit, you know how much extra you have to pay. Even though it can take some time, knowing some of the most important credit repair terms is definitely worth pursuing.

Credit Scores

When considering your application for a home loan, a financial institution looks at your credit and assigns it a score. In the industry, these scores are loosely referred to as a type of paper. The best scores equate to “A” paper, while lower scores are graded just like in school, to wit, “B”, “C”, “D” and “Oh, my god” paper. If you have an “A” paper, you can expect to get the best deal, while lower grades are known as sub-prime borrowers.

Credit Repair

Credit repair is important because even small movements in your credit score can move you from one score to the next. If you move from B paper to A paper, you will save thousands of dollars in lower interest rates. A credit score of roughly 680 is considered to be A paper. If you have a score of 670, credit repair can bump you to 685 and save tens of thousands of dollars. In short, you want to make the effort to repair your credit whenever possible. Don’t just sit and suffer from sub-prime loans.

To repair credit, there are simple credit repair terms to learn and steps that can be taken. Let’s take a look at some.

Credit Card Debt Ratios

Believe it or not, you can improve your credit scores by simply moving credit card balances around. A credit card with no balance actually doesn’t help you much if you have another card that is maxed out. If you shift the debt evenly among all credit cards, your credit score should increase. This has to do with something called your ratio of debt to available credit. It is a loophole of sorts, so take advantage of it. If debts are bogging you down, a repair service can surely help!

Closing Accounts

Don’t! Many people will close a credit card or other borrowing accounts when they are done with them. This is a huge mistake. First, it hurts you because you’ve reduced the available credit portion of your debt to available credit ratio. Second, you lose a record of your long-term credit payment history for the account. Lenders like to see these, so suck it up and keep the account open.

Inquiries

As strange as it sounds, inquiries on your credit report hurt you. Try to eliminate these by challenging them through the Fair Credit Reporting Act and limiting the credit applications you pursue. You can challenge inquiries by ordering copies of your credit reports and following the instructions on the report. Make sure to do this for all three credit reporting agencies – Equifax, Experian, and Transunion.

Check Your Report

The big three credit agencies must report to Congress each year. Each year they report an astonishing number of problems with their systems. This can affect you since accounts will appear that are not yours. If these accounts have problems, your credit score goes down. Make sure you check your report before applying for a loan. You want to deal with these issues before you are in escrow.

Borrowing large sums of money for a home loan can be intimidating. Avoid acting like a dear in the headlights. Deal with your credit issues and save yourself thousands in payments.

Credit Card Report Questions And Answers

Credit Card Report Questions And Answers

The Fair Credit Reporting Act (FCRA) promotes the accuracy, fairness, and privacy of information in the files of the nation’s consumer reporting companies. The Federal Trade Commission (FTC) enforces the FCRA with respect to consumer reporting companies. Recent amendments to the FCRA expand consumer rights and place additional requirements on consumer reporting companies. Businesses that provide information about consumers to consumer reporting companies and businesses that use credit card report also have new responsibilities under the law.

Here are some questions consumers have asked the FTC about consumer reports and consumer reporting companies, and the answers. If you have more questions about your credit card report, feel free to contact us for more information.

Q. Do I have a right to know what’s in my report?

A. You have the right to know what’s in your credit card report, but you have to ask for the information. The consumer reporting company must tell you everything in your report and give you a list of everyone who has requested your report within the past year – or the past two years if the requests were related to employment.

Q. What type of information do consumer reporting companies collect and sell?

A. Consumer reporting companies collect and sell four basic types of information:

  • Identification and employment information: Your name, birth date, Social Security number, employer, and spouse’s name are noted routinely. The consumer reporting company also may provide information about your employment history, homeownership, income, and previous address, if a creditor asks.
  • Payment history: Your accounts with different creditors are listed, showing how much credit has been extended and whether you’ve paid on time. Related events, such as the referral of an overdue account to a collection agency, also may be noted.
  • Inquiries: Consumer reporting companies must maintain a record of all creditors who have asked for your credit history within the past year, and a record of individuals or businesses that have asked for your credit history for employment purposes for the past two years.
  • Public record information: Events that are a matter of public record, such as bankruptcies, foreclosures, or tax liens, may appear in your report.

Q. Is there a charge for my report?

A. Under the Free File Disclosure Rule of the Fair and Accurate Credit Transactions Act (FACT Act), each of the nationwide consumer reporting companies — Equifax, Experian, and TransUnion — is required to provide you with a free copy of your credit report once every 12 months, if you ask for it.

Q: How do I order my free report?

A: The three nationwide consumer reporting companies are using one website, one toll-free telephone number, and one mailing address for consumers to order their free annual report. To order, call 1-877-322-8228, or complete the Annual Credit Report Request Form and mail it to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. Do not contact the three nationwide consumer reporting companies individually. You may order your free annual reports from each of the consumer reporting companies at the same time, or you can order from only one or two. The law allows you to order one free copy from each of the nationwide consumer reporting companies every 12 months.

Q: What information do I have to provide to get my free report?

A: You need to provide your name, address, Social Security number, and date of birth. If you have moved in the last two years, you may have to provide your previous address. To maintain the security of your file, each nationwide consumer reporting company may ask you for some information that only you would know, like the amount of your monthly mortgage payment. Each company may ask you for different information because the information each has in your file may come from different sources.

Q: Are there other situations where I might be eligible for a free report?

A: Under federal law, you’re entitled to a free report if a company takes adverse action against you, such as denying your application for credit, insurance, or employment, and you ask for your report within 60 days of receiving notice of the action. The notice will give you the name, address, and phone number of the consumer reporting company. You’re also entitled to one free report a year if you’re unemployed and plan to look for a job within 60 days; if you’re on welfare; or if your credit card report is inaccurate because of fraud, including identity theft. Otherwise, any of the three consumer reporting companies may charge you up to $9.50 for another copy of your report within a 12-month period.

Credit Bureau Reporting, a Bonus of Easy Approval Cards

Credit Bureau Reporting, a Bonus of Easy Approval Cards

Easy approval cards represent a step in the right direction for the many of us who have pretty bad credit. These cards have a significantly lower set of standards for an applicant in order to be accepted and are available from several issuing companies. They also have several features that, if utilized properly, can help move your credit score in the right direction.

As one would expect, though, these cards come at a cost to the applicant in comparison to other cards that are a little more challenging to acquire. Many have an ‘account setup’ fee, and nearly all of them have an annual fee as well. Easy approval cards typically have a low credit limit, usually in the mid to low hundreds, as well as varying interest rates. Some advertise rates as low as 9.9%, though to qualify for such an APR your credit would probably have to be pretty good, likely good enough not to need an easy approval card. Others advertise APRs as high as 19.75%.

Very few, if any, have a low introductory period with their interest rates, so you’ll dive immediately into whatever APR you get assigned. There are a few easy approval cards that allow balance transfers, though most do not, and you can expect a notable balance transfer fee on the cards that do. Although you could consider the fees as a sub-prime debt consolidation cost, they can put a dent in a tight budget.

Not deterred or scared off by all that? Good. There are some upsides to easy approval cards if your credit has fallen as far and as fast as a meteor. If you can keep up with the payments and the various fees, most cards report to several credit bureaus, which means that if you can play ball, they will tell the people that can make your credit better. Go for an easy approval card if you can be a conservative spender for a while.

One thing to remember: do not, under any circumstances, get an easy approval card if you can not make payments on time. Say you’re rolling down the hypothetical financial hillside, taking out credit card after credit card to pay off bills and your old cards. Your credit is already ridiculously bad, so you figure ‘hey, I can get one of these cards to stay afloat a little while longer!’ This is a mistake. With the higher interest rates and fees, if you default on one of these, you’ll be blown back into the Stone Age by your bill. And don’t forget they report to credit bureaus monthly. You see how ugly this could get.

The point I’d like to make is that easy approval cards are risky, but can be beneficial if you pay close attention and don’t do anything crazy. Keep in mind if you need one, your habits with money are probably not the best, so you need to reform a little before you take one of these on. If you can stay on track for a period of time, the financial rewards of an improved credit rating will greatly offset any expenses you incur while digging yourself out of the bad credit pit. Contact us today if you need help with getting easy approval cards!

College Credit Cards – Building A Good Credit History At An Early Age

College Credit Cards – Building A Good Credit History At An Early Age

College credit cards are intended specifically for students who normally would not qualify for regular credit cards, as they do not have a steady income or a credit history. As a student, it is a good idea to establish a first-rate sound credit history at an early age, which would help you get a regular credit card in the future, regardless of your employment status.

College Credit Cards Versus Generic Credit Cards

In theory, college student credit cards are identical to regular credit cards. However, these types of credit cards are meant for college students who do not have a previous credit history. Hence, these cards have more restrictions or conditions than the generic cards. The top three restrictions include:

– Co-signature from the parent or guardian at the time of application
– Lower credit limit (Example: $500 to $1000)
– Higher interest rates than traditional credit cards: Normal interest rates on these cards are 16-18%

Advantages of a College Credit Cards

A college credit card has become a necessity for most students. The advantages are many provided you understand how the credit card works and use it with caution. Students, especially in the United States, are prolific users of this type of credit cards. This is primarily because it gives them great flexibility to manage their credit.

Students can use these cards to pay their tuition fees, to rent a car, or to fill gas. In fact, there are certain credit cards that offer low-interest rates to students who maintain good grades. These cards are also packed with rewards and benefits. They can help students to learn and manage their finance at a young age.

A college credit card can also be a prepaid one, with a ceiling on the credit limit. This ensures that the student does not overspend and it also helps parents keep an eye on their children’s spending behavior.

Characteristic and Features of College Student Credit Cards:

There are many college student credit card options from Citi, Discover, and Chase. Apart from these, there are many pre-paid card options. Most of these student cards have many similar features including:

– 0% APR for the initial period of usually 6 months on both purchases and balance transfers (typically)
– No annual fee, at least for the first year
– Online account management at no extra cost

While many of the above characteristics are also applicable to many traditional more generic credit cards, there are certain distinctive features that make the credit card stand apart including:

– 0% liability for any unauthorized charges on the account
– A good GPA helps earns points for the cards
– Theft and fraud alerts

It is a good thought for students to have their own college student credit cards. However, it is important to understand that, at an early age, bad credit could have horrible consequences. Parents can assist their kids in choosing the best credit cards based on their child’s spending behavior and repaying capability. College student credit cards promise financial freedom at a young age if they are used judiciously.

Avoid Payday Loans to Repair your Credit

Avoid Payday Loans to Repair your Credit

If you are trying to make ends meet and are having past due bills pile up, the last resort you would want is to take out payday loans to pay your dues. There are many sources available today that offer payday advances.

To get a quick payday advance loan, you can connect online with many payday advance loan companies. Most payday loan companies do not check credit so even if you have bad credit or no credit, you can still apply for a payday loan. The loans are issued after you show proof of banking account, Social Security, Driver License, and Pay stub proofs. This information is used against you, often the lenders will deduct money from your accounts including interest, and principals that apply to each loan you take out.

If you are applying for a payday loan online…Beware…Some of the sources are not even institutes that specialize in payday loans. When you are trying to repair your credit, the last thing you need to do is spend money that is not necessary. When you borrow money from payday loaners, your personal information may not be private. Since many of the lenders are outside of the United States and are out of government regulations, your information just might fall into anyone’s hands. This puts your credit at great risk. You would be wise to perform some extensive research to ensure the payday loan institute is valid and trustworthy.

Payday loans offer you a loan against your paycheck, but the downside is you will be paying higher fees to get the loan. You could be wasting money and taking a chance on your identity. Some payday loan companies offer a “free” loan to their new customers i.e. no fees as long as the loan amount is paid in full on its due date. If you are searching for help to repair your credit, it might be wise to search the market for legitimate resources that will help you restore your credit at little or no cost to you. There are Debt Counselors and Debt Management Companies available that assist people with credit repair but the best source is you. You might be wise to check out government options that are available to people with bad credit.

Many services are available to help you repair your life. The best solution is keeping up to date on your bills if possible or minimizing your monthly installments by opting for credit cards that have no fees attached and low-interest rates. If you have a credit card, or else applying for a credit card avoid charging items to your cards unless it is absolutely necessary. You might want to apply for a different credit card if your card has high-interest rates and discontinue your old card once you receive your new card. In some cases, depending on your credit card history, you could call your credit card company and ask them to reduce your interest rate. If you have had a good history with the company, they will most likely oblige.

If you suspect that someone has access to your card be sure to contact your provider immediately to report the card lost or stolen. Always keep this information in close vicinity to ensure a quick response. Be sure to only provide your personal information to those you trust i.e. Social Security Number and Bank Account Number. Never give information pertaining to you freely especially over the phone. If you are considering a loan to pay off your debts, check the market first before applying. The more applications you complete, the more it applies to your credit report. You might want to cut back on your utilities, i.e. reduce your heat or air conditioning, to save funds that can be applied to your bills.

What Gets Reported in Your Credit History And What Does Not

What Gets Reported in Your Credit History And What Does Not

A credit report is a document that outlines your financial status, specifically your credit history. The three national reporting agencies, Experian, Trans Union, and Equifax, work independently so it is advisable to know what gets reported in your credit history for an accurate picture.

What Gets Reported in Your Credit History

The credit report contains personal, financial, and public information along with recent requests.

The credit report will provide personal information like your full name, frequently used nicknames and aliases, date of birth, and social security number. It will also reveal your current and past addresses, present and past jobs and if applicable, information about your spouse as well.

Financial information of all your accounts with their opening date and the credit limit is noted in it. These could be accounts with banks, credit card companies, power and telephone companies, and such like. It will also detail your loans like mortgages, student loans, and installment loans with relevant information, such as, payment patterns, a default in payment, debts that are less than seven years old, and so on. Some records will appear permanently. These are salaries above $75,000, any credit transaction, or application for a credit card or insurance beyond $150,000 and unpaid tax liens.

Information from public records particularly those with a financial angle will always appear. These are usually obtained from state and county courts. It will include convictions, arrests, charges, and monetary judgments. They can appear only for seven years. However, under federal law, convictions will appear indefinitely. If you have declared bankruptcy, the same will appear on your credit report for not more than ten years.

Certain records do not appear. Debt records more than seven years old and bankruptcy records more than ten years old cannot be given in a credit report. Your age, marital status, and race cannot appear if a current or prospective employer asks for it. Medical records can appear only with your express permission. Any information that has been erased from the records cannot be put back again.

Thus a credit report will help a person or organization make an informed judgment before entering into any transaction or deal with you. Talk to us today for a seamless process in credit reporting.