Archive for April, 2010

Tips On How To Write A Free Credit Repair Letter

Posted in Finance on 04/30/2010 10:32 pm by
Ann Richter asked:




You’ve decided that you want to try to repair your credit rating, but the cost of having a professional help you has made you stop and reconsider. Good credit is of vital importance, and you should definitely do whatever you can to fix it. Why pay a credit repair service for something you can so easily do with very little trouble? You can write your own free credit repair letter that will probably do more good than one written by a professional, because you’ll be putting a lot of yourself into the letter.

What to Write?

Before you can write a letter, you must first know what to write about. You can accomplish this by getting a copy of your credit report. It’s free for the asking, and you can choose from any of the three major credit bureaus who handle claims in the U.S., although for more through credit repair, you need to get a copy from each. Sometimes the different credit bureaus will each have different information on you, and you want to make sure to review it all before proceeding.

Once you have a copy of your report, sit down and analyze it. What do you see that is bringing down your credit score? Do you see any negative listings that you can definitely dispute? Mark these in such as way so that you can come back to them easily as you write your letter. Another thing you might want to study before writing your letter is a copy of the Fair Credit Reporting Act. You would be surprised as to how many violations you can spot in a typical credit report once you know what to look for.

In your letter, you should list the negative items from your credit report one by one. Beneath each, clearly state that you are disputing the accuracy of this debt. Be accurate and through as you compose your letter – don’t give the credit bureau any form of reasonable doubt. If it’s written there in black and white, dispute it! You must look out for your own interests in this case.

Be sure to include all pertinent information about yourself in your letter. Of course, you will send the usual name, address, zip code and phone number, but since your information is stored in a computer, other information is needed as well. Your Social Security number is most likely used as an identifier, so make sure you include it. Make a copy of your driver’s license so that your identity will not be questioned.

Make photocopies of the information you are going to send out, and take the time to think how you are going to keep track of the replies that will come in from the credit bureaus if everything is not cleared from your records on the first letter writing campaign you set out on.

Your free credit repair letter will make you sincerely glad that you did this all yourself, for you will have a feeling of satisfaction of a job well done once your credit record is clear and clean.

Bertha
 

Understanding Credit Report Score

Posted in Finance on 04/30/2010 05:43 pm by
Gary Gresham asked:




Understanding credit report scores is important when you see your credit report because you need to be able to make some sense of it.

Your credit score is used by anyone loaning you money such as credit card companies, home loan lenders, auto loan lenders and finance companies. They all use your credit score to determine your credit risk. The interest the lender charges you is based on your credit risk. So you can see how understanding credit report scores is information that can save or cost you money.

You need to find out what your credit score is before you talk to any lender in case there is something on your report that you may question. You don’t want the lender to find a mistake that you aren’t aware of. If you find a mistake, it takes at least 30-60 days before you see corrections in your credit reports and scores.

You have probably heard that checking your credit will bring down your score. But checking your own credit report and score is counted as a “soft inquiry” and doesn’t harm your credit score at all. Only “hard inquiries” from a lender or creditor, made when you apply for credit, will bring your credit score down a few points.

Your credit report should have the three main credit services Experian, Trans Union and Equifax and each service will give you a different credit score.

The credit scores will range between 300 and 870 with each credit service giving a different score. The higher your score is the better, because as your credit score increases, your credit risk decreases.

The average high approval score where the best interest rates are offered is 680 or above. The credit score the lender uses comes from the middle score or an average of all three scores is sometimes used.

Don’t be surprised if you find an error once you get your credit report. Statistics show that 70 percent of credit reports contain serious errors. Those errors are what you want to clear up because they will affect your credit score.

If you find a mistake, you have the right to dispute the information free of charge. Contact the credit bureau that provided the information and dispute the inaccurate information.

Below are the names, addresses, phone numbers and web sites of the three credit bureaus TransUnion, Experian and Equifax.

Equifax Credit

P.O. Box 740241

Atlanta, GA 30374

Equifax 800-685-1111

http://www.equifax.com

TransUnion

P.O. Box 1000

Chester, PA 19022

Trans Union 800-888-4213

http://www.transunion.com

Experian

P.O. Box 2002

Allen, TX 75013

Experian 800-682-7654

http://www.experian.com

You can also contact the creditor direct and ask that the corrected information be provided to the credit bureaus.

If you suspect any fraud, contact all three credit bureaus immediately and place a fraud alert on your report. Then, contact your credit card companies and bank to protect your accounts.

Understanding credit report scores and checking your credit report at least once a year will keep fraud in check and keep your credit score safer.

Copyright

 

Credit Repair Tips – How to Review and Clean Your Credit Report

Posted in Finance on 04/29/2010 09:04 pm by
Chris Rutherford asked:




Your credit score has a big impact on everyday financial situations such as: What interest rate you pay on a credit card, whether you can rent an apartment, whether you have to pay a deposit with your utility company, whether you can qualify for a home loan, and maybe even a potential employer’s decision to hire you. Going through life with bad credit can be very challenging.

Getting a Copy of Your Credit Report

You can’t fix bad credit without knowing what’s in your credit report first. You need to get a copy of your credit report from all 3 credit bureaus: Experian, Trans Union, and Equifax. You can request a copy of your own credit report for free once a year.

Reviewing Your Credit Report

It may not be fun, but reviewing your credit report line by line at least once a year is very important to identify any errors or issues that you may not be aware of. Pay special attention to “derogatory” (or negative) items such as late payments, collections, and charge-offs – they lower your credit score, sometimes significantly.

First, make sure your name, birth date, and current address are showing correctly on the report (in the “Personal Information” section). If not, make a note to correct them with the credit bureau(s). Make sure you check every account listed on your credit report:

Verify the account status is correct – you may discover old accounts you thought were closed that still show up as “open”. If you have accounts left open that you’re not aware of, they may be hurting your ability to apply for new credit or raise the credit limit on accounts you are using. Look at each account in detail (account number, credit limit, date opened etc.) and make sure it is really YOUR account. Someone else could have a similar name and their account might be mixed up with yours. Or worse, someone may be stealing your identity to open accounts in your name, leaving you with the unpaid bills. If you recently refinanced and/or paid off a mortgage or credit card account, check to make sure the account status (“paid, closed”) and current balance ($0) are reflected in the credit report. Note that there will be some delay (30-60 days) in updating your report.

Too many inquiries (requests for your credit history made by other people) can hurt your credit score. Review the “Inquiries” section in your credit report and make sure you know who asked for your credit file and why. You should either already have an account with the inquiring entity, or have authorized their credit check in some way (e.g. by applying for a new bank / credit card account or loan).

Understanding Your Rights

Remember, you have the legal right to know what’s in your credit file, and you have the right to dispute incomplete or inaccurate information. By law, the credit reporting agencies must correct or delete inaccurate, outdated, incomplete, or unverifiable information from your credit history, usually within 30 days.

Therefore, reviewing your credit report at least annually is critical to maintain the accuracy of your credit information. You can raise your credit score by disputing any errors or outdated negative information (more than 7 years old, or bankruptcies more than 10 years old).

Anthony
 

Understanding Your Credit Report Explained

Posted in Finance on 04/28/2010 02:22 pm by
Regis Sauger asked:




What’s In Your Credit File? As explained earlier, the credit bureaus use the information provided them by subscribers with whom you trade by credit to compile a credit profile under your name and social security number. This file is then made available to the bureaus’ other subscribers should they request it. Your credit file typically includes five types of information: Identifying information such as your full name, current and previous addresses, marital status, social security number and your date of birth.

Employment Information Includes your present position, length of employment and previous job. This information is usually reported by a creditor who obtained the information from a completed credit application.

Credit Information

This includes all types of credit and is reported by the lender, or in some cases by a collection agency: the date the account was opened, credit limit or loan amount, balance, highest balance, monthly payment and payment pattern during the past several years. The report also states whether anyone else besides you (spouse or cosigner) is responsible for paying the account.

Public Record Information This includes federal bankruptcies, state and county court records, tax liens, monetary judgments and, now, overdue child support. Bureaus have arrangements with various private entities to cull the public records for new filings and final dispositions, such as satisfactions and releases.

Inquiries

This is a listing of businesses that have accessed your file in the process of deciding whether to grant you credit; that is, you applied to them for a loan, or they had another permissible purpose such as other credit granting considerations, review of collection of an account, employment considerations, insurance underwriting, or your written permission.

A copy of your file printed on paper is your “Credit Report” and can be obtained by a couple of different methods…

Method 1

You can purchase a copy. The current legal limit is $8.00 and adjusted annually by the FTC, but you will need to call each agency for verification and specific instructions. Some states charge less. If you’re in a hurry, you can often receive your reports faster by paying with certified funds such as a money order or cashier’s check. Some agencies will hold shipping a report paid by check until the check clears the bank. If needed, use the sample letter in “Sample Letters” of a future article. Recently, Equifax began offering on-line ordering via the web. Experian says they will soon. ***State law only allows for a cost of $2.00 for residents of Maine or South Dakota.

Method 2

If you have been denied credit within the last 60 days because of information in your file, the law entitles you to obtain a free copy of your report from the bureau used by the credit granter. Your letter of credit denial will cite the bureau used. This request can be made over the phone. If you need to write a letter requesting a copy of your file using this method, you will find a sample in “Sample Letters

Analyzing Your Reports

The information in your credit file is a compilation of information, most of which is automatically entered and updated from banks, department stores, mortgage companies and collection agencies with whom you have dealt. Also, your job and job title may be included, as well as, apartment rental and utility payment history.

The way the bureaus present this information can be quite different. At first glance, it may appear complicated to decipher, but don’t be discouraged. Either on the back or on a separate piece of paper, included with your report, will be a glossary of terms that will help you make sense of it all. (In an effort to help consumers better comprehend what is in their report, Experian now provides the information in an easy-to- read format that is quite different from the format a credit granter would receive.)

NOTE: Do not make a mark on your original report. Important uses for it are coming up.

Red Flags: There are a couple of dozen phrases that you may find describing a particular entry on your file. Each bureau has its own way of wording things, but for the most part, they are very similar. They can be divided into three types: positive, neutral, or negative.

Positive phrases include:

 

Tips On Obtaining A Free Copy of My Credit Report

Posted in Finance on 04/27/2010 05:30 pm by
Tim Gorman asked:




The Fair Credit Reporting Act (FCRA) and Fair and Accurate Credit Transaction Act (FACT) give all individuals the opportunity to receive a free credit report. Generally, you can request a free credit report once per year. These reports are requested from the three major credit bureaus who report on all activity regarding credit. The intentions of the Acts are to allow the consumer to check the accuracy as well as the privacy of his or her credit report. This is underlined by the fact that FCRA and FACT are enforced with regard to consumer reporting companies by the Federal Trade Commission which is the main consumer protection agency in United States.

A credit report contains data regarding the consumer’s personal contact information, bankruptcy, as well as his or her very detailed credit history details. It is regularly used to evaluate his or her credit worthiness by not only financial institutions offering credit but by employers and others. As such it is important to make sure that the consumer has a right to check the credit report in order to correct any errors or unfair information contained there. This also prevents anyone else from using your identity to commit fraud since such activity will become apparent when you check the report.

You can request the free annual copy of your credit report from the website set up by the three main credit bureaus, namely Experian, Equifax, and TransUnion. All three have set up a toll free telephone number and a mailing address to meet the requests from consumers. Contacting the credit bureaus directly will not be fruitful since they will direct you to the website referred above. However you can request the free annual copy from each of the three bureaus separately at different times as long as you request only one copy for 12 months from each bureau.

Once you have filled the form on the website you will be able to see the credit report almost immediately. Using the toll free number or mailing address will get you the report within 15 days of request. However you should have the information needed to verify your identity if the credit bureau requests.

Other methods to get a free credit report

In addition to the entitlement mentioned above .You are entitled to obtain a free credit report if you are denied credit, insurance, or employment due to the contents of the credit report. However you should request the report within 60 days of notice of such denial. Unemployed individuals looking for work, those who are on welfare, and those who have been victims of frauds or identity theft, can also request a free copy of the credit report. It must also be remembered that residents of States of Colorado, Georgia, Maine, Maryland, Massachusetts, New Jersey, and Vermont, have access to annual credit reports free of charge for some time through State laws.

Colleen
 
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