Friday, May 31, 2013
Credit Tips
Don't fall for the myth that you have to carry a balance to have good scores. You don't, and you shouldn't. But having and using a credit card or two can really build your scores. If you can't qualify for a regular credit card, consider a secured credit card, where the issuing bank gives you a credit line equal to the deposit you make. Look for a card that reports to all three credit bureaus.
You'll get the fastest improvement in your scores if you show you're responsible with both major kinds of credit: revolving (credit cards) and installment (personal loans, auto, mortgages and student loans). If you don't already have an installment loan on your credit reports, consider adding a small personal loan that you can pay back over time. Again, you'll want the loan to be reported to all three bureaus, and you'll probably get the best deal from a community bank or credit union.
Pay down your credit cards. Paying off your installment loans (mortgage, auto, student, etc.) can help your scores but typically not as dramatically as paying down - or paying off - revolving accounts such as credit cards. Lenders like to see a big gap between the amount of credit you're using and your available credit limits. Getting your balances below 30% of the credit limit on each card can really help; getting balances below 10% is even better.
Dispute old negatives .. Say that fight with your phone company over an unfair bill a few years ago resulted in a collections account. You can continue protesting that the charge was unjust, or you can try disputing the account with the credit bureaus as "not mine." The older and smaller a collection account, the more likely the collection agency won't bother to verify it when the credit bureau investigates your dispute. Some consumers also have had luck disputing old items with a lender that has merged with another company, which can leave lender records a real mess.
from MSN Money
Thursday, March 10, 2011
Top 5 Steps to Improve Credit
Order Credit Reports
Find out what the top three credit bureaus - Equifax
, TransUnion, and Experian - are saying about you. It's likely that your reports are slightly different. Creditors don't have to report to all three credit bureaus. They generally report to the credit bureau to which they also subscribe. When you apply for credit, the company you applied to must supply the credit bureau's name, address and telephone number. You have 60 days after receiving a denial notice to request your copy.
Examine Reports Carefully
Examine your reports carefully because almost every consumer has an error on at least one credit report from one of the major credit bureaus. Credit bureaus generate your report on information they receive from your creditors but they do not verify.
Carefully look for everything from typing errors, outdated and incomplete information, to inaccurate account histories. Make a thorough list of the items you will dispute and why.
Wednesday, March 9, 2011
Don't Pay to Fix Your Credit
Get all three of the major credit reports free of charge in order to know exactly what is in your report. You’re entitled to free credit reports from each of the three credit bureaus once annually.
Order all three because some of your creditors will only report to only one of the credit bureaus. Credit bureaus don’t share information, therefore you need to see all three to check for discrepancies. Study and compare all three as you begin to rebuild your credit.
Wednesday, January 6, 2010
Collection Account
If you become delinquent, that is, several months late on a payment for anything from a phone bill to a credit card or a medical bill, the original creditor can place your account in collection status. At that point, the original creditor will use a debt collector
as a means to collect any monies outstanding that they believe you owe.
Most accounts fall into collection status over a dispute between the consumer and the creditor. Often times consumers feel they already paid, or simply don’t owe the money the creditor is requesting. In other instances, consumers get behind in their monthly payments or get overwhelmed with debt to the point where a collection account is opened by the creditor. Either way, a collection is a major derogatory and one you should avoid at all costs if you want to maintain a solid credit score.
If a collection shows up on your credit report, your credit score will likely drop 20-50 points or more, depending on your overall credit history and depth, and other related factors. At this point you need to make an intelligent decision. Should you pay the collection or dispute it (how to dispute credit report)?
This really comes down to whether you owe the debt or not. If you feel you don’t owe the money, you can ask the creditor or debt collector to validate the debt. This is your legal right, and they must come up with original records which prove you owe the debt. If they can’t provide the proper documentation, you will be able to dispute the claim and the credit bureaus should remove the collection from your credit report. If they are indeed able to provide legitimate documentation, you may want to pay the debt before it becomes a charge-off, a more severe credit derogatory.
When a collection account is opened, the agency will likely contact you immediately. A debt collector may contact you in a variety of different ways, including in-person, phone, e-mail, fax, and mail. Some debt collectors may be from a collection agency working from home, while others work for an agency or a call center. Either way, they are restricted on when they can contact you, often only between the hours of 8am and 9pm. They can come to your home, but it’s illegal for them to visit your workplace.
If you wish to stop receiving contact from a debt collector, you can write a letter to the company asking them to stop. Once the debt collector receives your letter they aren’t allowed to contact you again unless to say that they are taking some form of action against you, or simply to tell you that they acknowledge your request and will cease contact.
Collection agencies cannot collect an amount greater than your actual debt unless your state law permits it. They also may not use profane language, threaten you violently, or state that you will be arrested if you don’t pay your debts. Many collection agencies use scare tactics like these and many other scrupulous methods to get consumers to pay up, but many of these companies and their employees break the law in doing so.
The best way to handle a collection dispute is to contact the original creditor and work out a deal immediately. If possible, try to set up an agreement whereby you’ll pay the amount due if they change the status of the account to “paid as agreed”. And make sure you get this agreement in writing. If they don’t agree to such an offer, and you know you owe the debt, you may want to pay it to avoid escalating the situation. If you know you don’t owe the debt, you can write a letter to the credit bureaus disputing the debt, at which point the original creditor has to respond within 30 days or the collection account will be completely removed from your credit history.
If you have an old collection that is still unpaid and showing up on your credit report, you may want to hold off on paying it if you are applying for a home loan or a car lease. While paying it off is likely the right thing to do, it may drop your credit score in the short-term because it will change the last-active date to the latest month, and the “freshness” of the collection can hurt your score. Over time though it will reduce its affect on your credit score, and will benefit your credit profile if paid, and help you avoid getting into a charge-off situation.
Do keep in mind that lenders and other financiers can still deny you credit if you have unpaid collections, even if your credit score is considered “good”, or higher than average. They may view unpaid debts in the past as an indication of future mishandling of credit.
Note that collections stay on your credit report for seven years from the date of the initial late payment that led to the collection. Learn more about how long negative items remain on a credit report, and how to remove negative items from credit history.
From "Truth About Credit Cards" Website
as a means to collect any monies outstanding that they believe you owe.
Most accounts fall into collection status over a dispute between the consumer and the creditor. Often times consumers feel they already paid, or simply don’t owe the money the creditor is requesting. In other instances, consumers get behind in their monthly payments or get overwhelmed with debt to the point where a collection account is opened by the creditor. Either way, a collection is a major derogatory and one you should avoid at all costs if you want to maintain a solid credit score.
If a collection shows up on your credit report, your credit score will likely drop 20-50 points or more, depending on your overall credit history and depth, and other related factors. At this point you need to make an intelligent decision. Should you pay the collection or dispute it (how to dispute credit report)?
This really comes down to whether you owe the debt or not. If you feel you don’t owe the money, you can ask the creditor or debt collector to validate the debt. This is your legal right, and they must come up with original records which prove you owe the debt. If they can’t provide the proper documentation, you will be able to dispute the claim and the credit bureaus should remove the collection from your credit report. If they are indeed able to provide legitimate documentation, you may want to pay the debt before it becomes a charge-off, a more severe credit derogatory.
When a collection account is opened, the agency will likely contact you immediately. A debt collector may contact you in a variety of different ways, including in-person, phone, e-mail, fax, and mail. Some debt collectors may be from a collection agency working from home, while others work for an agency or a call center. Either way, they are restricted on when they can contact you, often only between the hours of 8am and 9pm. They can come to your home, but it’s illegal for them to visit your workplace.
If you wish to stop receiving contact from a debt collector, you can write a letter to the company asking them to stop. Once the debt collector receives your letter they aren’t allowed to contact you again unless to say that they are taking some form of action against you, or simply to tell you that they acknowledge your request and will cease contact.
Collection agencies cannot collect an amount greater than your actual debt unless your state law permits it. They also may not use profane language, threaten you violently, or state that you will be arrested if you don’t pay your debts. Many collection agencies use scare tactics like these and many other scrupulous methods to get consumers to pay up, but many of these companies and their employees break the law in doing so.
The best way to handle a collection dispute is to contact the original creditor and work out a deal immediately. If possible, try to set up an agreement whereby you’ll pay the amount due if they change the status of the account to “paid as agreed”. And make sure you get this agreement in writing. If they don’t agree to such an offer, and you know you owe the debt, you may want to pay it to avoid escalating the situation. If you know you don’t owe the debt, you can write a letter to the credit bureaus disputing the debt, at which point the original creditor has to respond within 30 days or the collection account will be completely removed from your credit history.
If you have an old collection that is still unpaid and showing up on your credit report, you may want to hold off on paying it if you are applying for a home loan or a car lease. While paying it off is likely the right thing to do, it may drop your credit score in the short-term because it will change the last-active date to the latest month, and the “freshness” of the collection can hurt your score. Over time though it will reduce its affect on your credit score, and will benefit your credit profile if paid, and help you avoid getting into a charge-off situation.
Do keep in mind that lenders and other financiers can still deny you credit if you have unpaid collections, even if your credit score is considered “good”, or higher than average. They may view unpaid debts in the past as an indication of future mishandling of credit.
Note that collections stay on your credit report for seven years from the date of the initial late payment that led to the collection. Learn more about how long negative items remain on a credit report, and how to remove negative items from credit history.
From "Truth About Credit Cards" Website
Sunday, September 7, 2008
Valuable Grant Information
I invested $1000 with the National Grants Conference and honestly I would have come out better if I did the research myself. I never secured a grant, didn't even come close. When your time expires, after one year, they charge you thirty per month to continue to receive spurious information. Not to mention the frustration that comes from being on hold anywhere from 15-30 minutes every time you call.
The National Grants Conference pay motivational speakers tons of money to advertise their product in order to dupe people into buying into their hogwash.
My experience with NGC led me to go out on my own to find solid information pertaining to securing Government Grants. After two years of researching Government Grants, Loans, Subsidies, and Federal Assistance Programs I have put together a list of valuable contacts, addresses, and phone numbers, that will provide a legitimate road map to secure financial assistance for business, education, or personal.
I have streamlined the information in an easy-to-follow spreadsheet, links included, and your $3 investment will be well worth it in the long run.
The National Grants Conference pay motivational speakers tons of money to advertise their product in order to dupe people into buying into their hogwash.
My experience with NGC led me to go out on my own to find solid information pertaining to securing Government Grants. After two years of researching Government Grants, Loans, Subsidies, and Federal Assistance Programs I have put together a list of valuable contacts, addresses, and phone numbers, that will provide a legitimate road map to secure financial assistance for business, education, or personal.
I have streamlined the information in an easy-to-follow spreadsheet, links included, and your $3 investment will be well worth it in the long run.
Sunday, August 31, 2008
The Truth about the Credit Bureaus
For starters, let's put aside the idea that the credit bureaus exist to ensure the safe keeping of your private financial data. The credit bureaus are not official government agencies and they do not create your credit reports for your benefit. They are not in the business of making sure your credit reports are accurate and they do not willingly provide you with a yearly copy of your credit reports.
What the credit bureaus are is something much different from what most people believe. Put simply, the credit bureaus are massive, for profit corporations who make money by selling your information. They sell it to creditors, employers, insurance companies, marketers, and even back to you.
The big three credit bureaus, Equifax, Experian, and TransUnion, all trace their ancestry to small, local investigative companies. These early credit bureaus would collect every bit of seemingly relevant information they could about a person including employment history, marital status, age, race, religion, testimonials, and any other information they could get their hands on. They would then provide this information to creditors who used it to determine whether or not a person was worthy of a loan and how much interest they would be required to pay.
The FCRA was passed to protect you from the credit bureaus.
Over time, the credit bureaus grew and merged until the credit reporting system moved from one with many local credit bureaus to the current system of three major nationwide credit bureaus. As this happened, the large credit bureaus became so powerful that it became necessary for them to be regulated. This resulted in the Fair Credit Reporting Act (FCRA) being passed to protect you from the growing power of the credit bureaus.
Credit scores had become increasingly important and it was the credit bureaus that had full control over the information used to create these scores. The problem was that the credit bureaus, as is the case today, are primarily motivated to collect your information and then sell it off. This meant that even though the credit bureaus were the definitive source for your credit information, they had no motivation to ensure its completeness or accuracy. They merely took the information they were provided, added it to your credit reports, and sold it off. (That this information is assumed to be true by creditors and others is another discussion)
For starters, let's put aside the idea that the credit bureaus exist to ensure the safe keeping of your private financial data. The credit bureaus are not official government agencies and they do not create your credit reports for your benefit. They are not in the business of making sure your credit reports are accurate and they do not willingly provide you with a yearly copy of your credit reports.
What the credit bureaus are is something much different from what most people believe. Put simply, the credit bureaus are massive, for profit corporations who make money by selling your information. They sell it to creditors, employers, insurance companies, marketers, and even back to you.
The big three credit bureaus, Equifax, Experian, and TransUnion, all trace their ancestry to small, local investigative companies. These early credit bureaus would collect every bit of seemingly relevant information they could about a person including employment history, marital status, age, race, religion, testimonials, and any other information they could get their hands on. They would then provide this information to creditors who used it to determine whether or not a person was worthy of a loan and how much interest they would be required to pay.
The FCRA was passed to protect you from the credit bureaus.
Over time, the credit bureaus grew and merged until the credit reporting system moved from one with many local credit bureaus to the current system of three major nationwide credit bureaus. As this happened, the large credit bureaus became so powerful that it became necessary for them to be regulated. This resulted in the Fair Credit Reporting Act (FCRA) being passed to protect you from the growing power of the credit bureaus.
Credit scores had become increasingly important and it was the credit bureaus that had full control over the information used to create these scores. The problem was that the credit bureaus, as is the case today, are primarily motivated to collect your information and then sell it off. This meant that even though the credit bureaus were the definitive source for your credit information, they had no motivation to ensure its completeness or accuracy. They merely took the information they were provided, added it to your credit reports, and sold it off. (That this information is assumed to be true by creditors and others is another discussion)
The FCRA was passed to add accountability to the credit reporting process. The credit bureaus were no longer able to collect whatever they wanted and to not tell you what was on your credit reports. As a result of the FCRA, you have a right to a free yearly copy of your credit reports (see www.annualcreditreport.com) and you have the right to dispute the accuracy of the items in your credit reports. While this does not mean the credit bureaus now make sure your reports are accurate, it does give you recourse when the credit bureaus unfairly report your credit history.
Unfortunately, however, the FCRA did not eradicate all the problems of the credit reporting system. The credit bureaus are still enormous corporations with enormous power. They are also still primarily motivated by the money they make by selling your credit information. Providing you with credit reports and investigating credit disputes is something they are forced to do and not something they were willing to do on their own. As such, the credit bureaus do what they can to avoid these practices.
Specifically as it relates to credit repair, the credit bureaus have developed a full arsenal of tactics to keep from investigating disputes. These tactics range from general propaganda, to strong-arm tactics, to methods of questionable legality.
How many times have you heard that credit repair is impossible, the only way to improve your credit is to wait seven years, and any company who offers to repair you credit is a scam? It is surprising so many people believe some or all of these statements when not a single one is true. This misinformation is the best friend of the credit bureaus as it dissuades so many people from even attempting to dispute their credit. No wonder the credit bureaus are so quick to promote this flawed perception.
Knowing the history and the motivations behind the credit bureaus is your tool to understanding the nature of the credit reporting system. When you know the true persona of the credit bureaus, you can then see why you are granted access to your credit reports, why you have the right to repair your credit, and why it can be beneficial to have a credit repair expert working on your side.
From CreditRepair.com
What the credit bureaus are is something much different from what most people believe. Put simply, the credit bureaus are massive, for profit corporations who make money by selling your information. They sell it to creditors, employers, insurance companies, marketers, and even back to you.
The FCRA was passed to protect you from the credit bureaus.
Over time, the credit bureaus grew and merged until the credit reporting system moved from one with many local credit bureaus to the current system of three major nationwide credit bureaus. As this happened, the large credit bureaus became so powerful that it became necessary for them to be regulated. This resulted in the Fair Credit Reporting Act (FCRA) being passed to protect you from the growing power of the credit bureaus.
Credit scores had become increasingly important and it was the credit bureaus that had full control over the information used to create these scores. The problem was that the credit bureaus, as is the case today, are primarily motivated to collect your information and then sell it off. This meant that even though the credit bureaus were the definitive source for your credit information, they had no motivation to ensure its completeness or accuracy. They merely took the information they were provided, added it to your credit reports, and sold it off. (That this information is assumed to be true by creditors and others is another discussion)
For starters, let's put aside the idea that the credit bureaus exist to ensure the safe keeping of your private financial data. The credit bureaus are not official government agencies and they do not create your credit reports for your benefit. They are not in the business of making sure your credit reports are accurate and they do not willingly provide you with a yearly copy of your credit reports.
What the credit bureaus are is something much different from what most people believe. Put simply, the credit bureaus are massive, for profit corporations who make money by selling your information. They sell it to creditors, employers, insurance companies, marketers, and even back to you.
The big three credit bureaus, Equifax, Experian, and TransUnion, all trace their ancestry to small, local investigative companies. These early credit bureaus would collect every bit of seemingly relevant information they could about a person including employment history, marital status, age, race, religion, testimonials, and any other information they could get their hands on. They would then provide this information to creditors who used it to determine whether or not a person was worthy of a loan and how much interest they would be required to pay.
The FCRA was passed to protect you from the credit bureaus.
Over time, the credit bureaus grew and merged until the credit reporting system moved from one with many local credit bureaus to the current system of three major nationwide credit bureaus. As this happened, the large credit bureaus became so powerful that it became necessary for them to be regulated. This resulted in the Fair Credit Reporting Act (FCRA) being passed to protect you from the growing power of the credit bureaus.
Credit scores had become increasingly important and it was the credit bureaus that had full control over the information used to create these scores. The problem was that the credit bureaus, as is the case today, are primarily motivated to collect your information and then sell it off. This meant that even though the credit bureaus were the definitive source for your credit information, they had no motivation to ensure its completeness or accuracy. They merely took the information they were provided, added it to your credit reports, and sold it off. (That this information is assumed to be true by creditors and others is another discussion)
The FCRA was passed to add accountability to the credit reporting process. The credit bureaus were no longer able to collect whatever they wanted and to not tell you what was on your credit reports. As a result of the FCRA, you have a right to a free yearly copy of your credit reports (see www.annualcreditreport.com) and you have the right to dispute the accuracy of the items in your credit reports. While this does not mean the credit bureaus now make sure your reports are accurate, it does give you recourse when the credit bureaus unfairly report your credit history.
Unfortunately, however, the FCRA did not eradicate all the problems of the credit reporting system. The credit bureaus are still enormous corporations with enormous power. They are also still primarily motivated by the money they make by selling your credit information. Providing you with credit reports and investigating credit disputes is something they are forced to do and not something they were willing to do on their own. As such, the credit bureaus do what they can to avoid these practices.
Specifically as it relates to credit repair, the credit bureaus have developed a full arsenal of tactics to keep from investigating disputes. These tactics range from general propaganda, to strong-arm tactics, to methods of questionable legality.
How many times have you heard that credit repair is impossible, the only way to improve your credit is to wait seven years, and any company who offers to repair you credit is a scam? It is surprising so many people believe some or all of these statements when not a single one is true. This misinformation is the best friend of the credit bureaus as it dissuades so many people from even attempting to dispute their credit. No wonder the credit bureaus are so quick to promote this flawed perception.
Knowing the history and the motivations behind the credit bureaus is your tool to understanding the nature of the credit reporting system. When you know the true persona of the credit bureaus, you can then see why you are granted access to your credit reports, why you have the right to repair your credit, and why it can be beneficial to have a credit repair expert working on your side.
From CreditRepair.com
Request a Copy of Credit Report Letter
Reference: Social Security Number
Dear :
Could you please send me a copy of my current credit report?
On November 1, Woodgrove Bank denied my application for a credit card, and I understand that I am entitled to receive, without charge, a copy of my credit report within 30 days of this denial.
If you need further information from me to provide this report, please call my home at (214) 555-0198.
Thank you for your prompt attention to my request.
Sincerely,
Clean Credit Jones
Dear :
Could you please send me a copy of my current credit report?
On November 1, Woodgrove Bank denied my application for a credit card, and I understand that I am entitled to receive, without charge, a copy of my credit report within 30 days of this denial.
If you need further information from me to provide this report, please call my home at (214) 555-0198.
Thank you for your prompt attention to my request.
Sincerely,
Clean Credit Jones
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