February 22, 2010
February 20, 2010
Credit Repair Scams
Thomas Morva asked:
Credit repair can be defined as the process in which a debtor repays the amount that is due and thus obtains a clean and repaired credit report. However, the process of repairing a credit report is lengthy and tedious. Companies that specialize in improving a bad credit report undertake this job. Many companies and attorneys offer to improve the bad credit history of a company or a person.
There are companies and con artists who specialize in defrauding unsuspecting and desperate people who want an instant solution for their credit report problems. This is a distinguishing factor when it comes to recognizing a swindler. The swindler will usually entice the victim by suggesting or promising a quick remedy for all the credit related problems that the victim faces. Walking away from any deal that seems too good to be true is the best option when searching for a company that specializes in credit repair.
The modus operandi of these criminals is to open a new tax id or account that is valid for businesses only. Then the number is used for forming a new credit line. This discrepancy usually does not come out in the open for some time but when it does then the victim is usually in so much debt that it becomes impossible for him to pay back the owed amount. Other typical offers that a cheat will use are creation of a new ID, taking or demanding an advance payment, suggestions about not contacting the appropriate agency, and does not inform about DIY credit repairing and asking credit card specifics.
A major disadvantage of being a credit repair scam victim is that the victim himself can be prosecuted if it cannot be proven that the concerned party is the victim of a scam. This will not only compound the credit problem but can wreak havoc in a person’s financial, personal, and professional life. What seems like a shortcut to all the credit related problems might become a major headache if proper care is not taken while selecting a method of credit repairing.
Lonnie
Credit repair can be defined as the process in which a debtor repays the amount that is due and thus obtains a clean and repaired credit report. However, the process of repairing a credit report is lengthy and tedious. Companies that specialize in improving a bad credit report undertake this job. Many companies and attorneys offer to improve the bad credit history of a company or a person.
There are companies and con artists who specialize in defrauding unsuspecting and desperate people who want an instant solution for their credit report problems. This is a distinguishing factor when it comes to recognizing a swindler. The swindler will usually entice the victim by suggesting or promising a quick remedy for all the credit related problems that the victim faces. Walking away from any deal that seems too good to be true is the best option when searching for a company that specializes in credit repair.
The modus operandi of these criminals is to open a new tax id or account that is valid for businesses only. Then the number is used for forming a new credit line. This discrepancy usually does not come out in the open for some time but when it does then the victim is usually in so much debt that it becomes impossible for him to pay back the owed amount. Other typical offers that a cheat will use are creation of a new ID, taking or demanding an advance payment, suggestions about not contacting the appropriate agency, and does not inform about DIY credit repairing and asking credit card specifics.
A major disadvantage of being a credit repair scam victim is that the victim himself can be prosecuted if it cannot be proven that the concerned party is the victim of a scam. This will not only compound the credit problem but can wreak havoc in a person’s financial, personal, and professional life. What seems like a shortcut to all the credit related problems might become a major headache if proper care is not taken while selecting a method of credit repairing.
Lonnie
Comments Off
Credit Repair Letters – Increase Your Credit Score Fast With Credit Report Dispute Letters
Paul Sarwana asked:
Many credit repair companies want you to believe you need to pay them huge fees before they will write a credit repair letter on your behalf to creditors or credit companies.
You are entitled to dispute any disputes you have with credit companies or collection agencies. Companies sometimes report incorrect information or they mix up similar names. Other cases include companies failing to report when a debt has been cleared and payments caught up.
These are all issues you can dispute and you should be able to write a credit dispute letter to your creditors on your own. By having any errors that have been listed on your report removed, you can begin to improve your credit score.
Disputing Credit Report Errors
Obviously, you’re going to need an accurate copy of your credit report so you know precisely what’s been listed and by which company. This will give you a clear idea of any credit enquiries that you didn’t make or any listings that shouldn’t be there.
When you send your credit report dispute letter to a lending company or collection agency to dispute a listing they are legally required to respond to your request within 30 days. If the information is wrong, it should be removed from your report.
Don’t mistake this action for removing real negative information. If the items on your credit report are genuine then they can’t be removed legally at all.
Just because they can’t be removed doesn’t mean you can’t request an investigation into every single item listed on your credit report. You’re not charged for writing a credit repair letter asking for an investigation. The fun part about inquiring into every item is that if the credit bureaus can’t verify an item it should be removed.
Writing Your Credit Repair Letter
Writing a credit report dispute letter can be quite daunting for many people, but it’s much easier than you think. Here are simple things you can do by yourself:
1. When it comes to writing your credit report dispute letter, be sure you find a great template on the internet to base your letter on. Always change the original template of sample letters so you’re using your own words and your own information.
2. Address your letter to the credit bureaus. They each have contact information listed clearly on their websites. If you can’t locate any contact details, try a Google search.
3. Send your letter by certified mail or by registered mail. Keep your mail receipt as a record of the date you sent your letter.
4. When the credit bureaus respond, keep copies of all correspondence and outcomes. Be patient and wait for them to investigate any enquiries that are listed on your dispute letter.
5. If your dispute doesn’t result in removing errors or problems, then the credit bureaus may have been able to verify that the information listed on your report was correct. If you still believe the listing is wrong, write to them again and tell them why you believe the item should be removed. You’re allowed to ask to have your file re-investigated, so they’ll look again if you write again.
It seems like a lot of effort but writing a credit repair letter is really a lot simpler than you think. Simply state what item you want to dispute and send it away.
Bruce
Many credit repair companies want you to believe you need to pay them huge fees before they will write a credit repair letter on your behalf to creditors or credit companies.
You are entitled to dispute any disputes you have with credit companies or collection agencies. Companies sometimes report incorrect information or they mix up similar names. Other cases include companies failing to report when a debt has been cleared and payments caught up.
These are all issues you can dispute and you should be able to write a credit dispute letter to your creditors on your own. By having any errors that have been listed on your report removed, you can begin to improve your credit score.
Disputing Credit Report Errors
Obviously, you’re going to need an accurate copy of your credit report so you know precisely what’s been listed and by which company. This will give you a clear idea of any credit enquiries that you didn’t make or any listings that shouldn’t be there.
When you send your credit report dispute letter to a lending company or collection agency to dispute a listing they are legally required to respond to your request within 30 days. If the information is wrong, it should be removed from your report.
Don’t mistake this action for removing real negative information. If the items on your credit report are genuine then they can’t be removed legally at all.
Just because they can’t be removed doesn’t mean you can’t request an investigation into every single item listed on your credit report. You’re not charged for writing a credit repair letter asking for an investigation. The fun part about inquiring into every item is that if the credit bureaus can’t verify an item it should be removed.
Writing Your Credit Repair Letter
Writing a credit report dispute letter can be quite daunting for many people, but it’s much easier than you think. Here are simple things you can do by yourself:
1. When it comes to writing your credit report dispute letter, be sure you find a great template on the internet to base your letter on. Always change the original template of sample letters so you’re using your own words and your own information.
2. Address your letter to the credit bureaus. They each have contact information listed clearly on their websites. If you can’t locate any contact details, try a Google search.
3. Send your letter by certified mail or by registered mail. Keep your mail receipt as a record of the date you sent your letter.
4. When the credit bureaus respond, keep copies of all correspondence and outcomes. Be patient and wait for them to investigate any enquiries that are listed on your dispute letter.
5. If your dispute doesn’t result in removing errors or problems, then the credit bureaus may have been able to verify that the information listed on your report was correct. If you still believe the listing is wrong, write to them again and tell them why you believe the item should be removed. You’re allowed to ask to have your file re-investigated, so they’ll look again if you write again.
It seems like a lot of effort but writing a credit repair letter is really a lot simpler than you think. Simply state what item you want to dispute and send it away.
Bruce
Comments Off
February 19, 2010
Credit Repair After Bankruptcy
Chane Steiner asked:
If you have fallen on some hard financial times, you may be looking into repairing your credit. Sometimes unfortunate circumstances follow that old clich
If you have fallen on some hard financial times, you may be looking into repairing your credit. Sometimes unfortunate circumstances follow that old clich
Comments Off
February 9, 2010
Self Credit Repair – Part II
Robert Enriquez asked:
It is very important to strategize your disputes in order to have a successful outcome. Not many borrowers are aware that deleting negative items on your credit report can hurt your score. One of the main factors in a credit score is the ‘credit history’. Whether it’s positive/negative it will impact your score in a positive/negative way.
Derogatory accounts can be on your credit report for up to 7yrs from last activity. The activity is being reported for ‘credit history’ and accounts for 15% of your score. If the derog is much older than most of your credit accounts it is actually the account that is giving the positive affect on the score. If you delete this derogatory it WILL lower your score.
Bankruptcies have been deleted from credit reports, and the scores have dropped with many individuals! Generally, a person who files bankruptcy starts rebuilding their credit after 2yrs. All credit items listed under a bankruptcy is UNRATED towards your credit score. The actual bankruptcy (listed under the Public Records section of your credit report) is the item that is RATED. Many disputers are baffled when items listed under a bankruptcy doesn’t raise the credit score after being deleted. Make sure to compare the credit items on your credit report before disputing any items.
These helpful factors can help you dispute effectively:
1. When the account was open
2. When the account was first/last reported
3. Last account activity date
4. Original Creditor or Collection Company
5. Duplicates with different companies for same account.
6. Hard credit inquiries
7. Transfer/Sold/Paid dates
8. 1st Delinquency date.
One of the foolish mistakes a Credit Repair agency may make is attempting to delete an item (from the original creditor), because of late payments. What they’re not realizing is that if the account is ‘closed’ or has been inactive for a while, the original creditor is less likely to respond back to the Credit Bureau. This will result in a ‘deletion’ of a credit item in your ‘credit history’. They should be requesting ‘payment history validation’ to result in ‘NEVER LATE’ on your credit report. Collection, bankruptcy, and lien items cannot be used for this tactic.
Ella
It is very important to strategize your disputes in order to have a successful outcome. Not many borrowers are aware that deleting negative items on your credit report can hurt your score. One of the main factors in a credit score is the ‘credit history’. Whether it’s positive/negative it will impact your score in a positive/negative way.
Derogatory accounts can be on your credit report for up to 7yrs from last activity. The activity is being reported for ‘credit history’ and accounts for 15% of your score. If the derog is much older than most of your credit accounts it is actually the account that is giving the positive affect on the score. If you delete this derogatory it WILL lower your score.
Bankruptcies have been deleted from credit reports, and the scores have dropped with many individuals! Generally, a person who files bankruptcy starts rebuilding their credit after 2yrs. All credit items listed under a bankruptcy is UNRATED towards your credit score. The actual bankruptcy (listed under the Public Records section of your credit report) is the item that is RATED. Many disputers are baffled when items listed under a bankruptcy doesn’t raise the credit score after being deleted. Make sure to compare the credit items on your credit report before disputing any items.
These helpful factors can help you dispute effectively:
1. When the account was open
2. When the account was first/last reported
3. Last account activity date
4. Original Creditor or Collection Company
5. Duplicates with different companies for same account.
6. Hard credit inquiries
7. Transfer/Sold/Paid dates
8. 1st Delinquency date.
One of the foolish mistakes a Credit Repair agency may make is attempting to delete an item (from the original creditor), because of late payments. What they’re not realizing is that if the account is ‘closed’ or has been inactive for a while, the original creditor is less likely to respond back to the Credit Bureau. This will result in a ‘deletion’ of a credit item in your ‘credit history’. They should be requesting ‘payment history validation’ to result in ‘NEVER LATE’ on your credit report. Collection, bankruptcy, and lien items cannot be used for this tactic.
Ella
Comments Off
February 2, 2010
Powered by WordPress
auto finance | credit reports | mortage loan | credit cards