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October 29, 2007
Can Bad Credit be Deleted?
Yes, it can. Despite the fervent proclamations of bureaucrats and credit bureaus everywhere, a simple fact remains: negative credit listings are deleted from peoples' credit reports by the thousands each and every day.
A few years ago, an attorney from Lexington Law. visited with a regulatory agency for a casual conversation with two agents. The Agency's office, as a matter of course, believed the credit bureaus' claim that bad credit couldn't be deleted. The visiting Lexington attorney asked, "How many negative listings would you have to see deleted from consumer credit reports before you would believe that bad credit can be deleted: ten? fifty? a hundred? one thousand?" The agents responded with only blank stares.
"How about 50,000 deleted listings, would that convince you?" continued the Lexington attorney. From his briefcase he pulled a stack of papers six inches high.
"In these pages, we have listed the permanent deletion of over 50,000. listings from our clients' files in the last two years alone," he explained. The agents pulled the stack across the conference table and began to pick through the pages, taking in the massive list.
"But have you deleted any bankruptcies?" shot back one of the agents, "we know that bankruptcies can't be deleted." The Lexington attorney leaned across the table and ran his finger down the first page.
"There's one deleted bankruptcy... and, there's another,... and another,... and another. Should I go on?" asked the Lexington attorney.
The agents sat back in their chairs. "You know," began the junior agent, "I have this one listing on my credit report that simply must belong to somebody else..."
How is credit repair possible?
The Fair Credit Reporting Act (FCRA) allows a consumer to challenge the information on his credit report on the basis of "completeness and accuracy." When a consumer files a dispute, the credit bureaus must contact the source of the credit information (the creditor) and confirm that the information is accurate, verifiable, and not obsolete. In some circumstances, the credit bureau is required to go beyond a simple verification of the creditor's own computer record. If, within 30 days, the credit bureau has not received verification from the creditor, then the credit bureau must promptly delete the credit listing. Learn More.
Posted by creditreportsolution at 04:03 PM | Comments (0)
October 26, 2007
Get the Right Credit Score
You go into a lender's office prepared to apply for and receive a loan. After all, you've done your homework, you've pulled your credit reports and you know what your credit scores are--you even got one score from each of the three major credit bureaus: Equifax. Experian, and TransUnion. You are shocked when your loan is denied, or maybe you were approved, but the interest rate is much higher than you anticipated. How can that be you say? My credit score is good, I know I checked. Maybe it's not as good as you think. It all depends on there you got it and what kind of credit score it is.
FICO credit scoring is a numeric method of scoring your credit worthiness developed by Fair Isaac and Company. Your credit score is a number between 300 and 850 that tells creditors how likely you are to pay your bills. The higher the number, the better it looks to potential lenders and creditors.
The three major credit bureaus each have their own version of the FICO score: Equifax uses the Beacon system, TransUnion uses the Empirica system, and Experian uses the Experian/Fair Isaac system. Despite each credit bureaus' use of their own versions, all systems are based the original Fair Isaac FICO scoring method, so each credit score calculated with these systems are generally called FICO scores. However, although most lenders do use FICO scoring, some lenders may have their own scoring methods.
There is only one place where you can get your FICO score from all three bureaus and that is at www.myfico.com. If you order your credit score from anywhere else, again be aware that these scores are "FAKOs" (or "fake") and can differ considerably from your FICO credit scores.
Adding to the confusion is the credit bureaus themselves. Recently, Experian revealed that the national average credit score of its consumers is 678. This is very misleading to the average consumer. When you buy your credit report and score directly from Experians website, you are getting what they call the "PLUS Score," which is NOT a FICO score, and is NOT used by lenders anywhere. (Equifax is the exception--you can buy your FICO score directly from them at their website; however, the only place to get all three scores together is at www.myfico.com.) The 678 PLUS Score reported by Experian is actually the average of consumers' PLUS Scores, not their FICO Scores.
Clearly, the PLUS Score (and all Non-FICO scores) are useless. Not only that, but such hype misleads consumers into purchasing their PLUS Score thinking that they are getting the same credit score that their lender will use. Non-FICO scores are worthless not matter what the credit bureaus or any website selling non-FICO scores claim. Even a few points difference in your credit score can mean confronting the reality of the loss of thousands of dollars out of your pocket--a loss that you probably didn't plan for. The next time you want the most accurate credit score available, do yourself a favor and get the industry standard: the FICO credit score.
Posted by creditreportsolution at 07:15 PM | Comments (0)
October 06, 2007
How to Deal with Bad Credit Reports
In today's world our credit score is everything. Creditors and bankers approve or disapprove loans based on your credit worthiness. It is also something that will determine your credibility to certain employers or landlords. If you have a good credit rating you will be able to apply for loans and/or credit cards easily. And, ultimately, isn't that the goal? It will also mean that you will have more chances of getting certain jobs. You will be able to pay your bills on time.
These are just some of the many reasons as to why having a good credit score is very important in today's world. However, what do you do if you happen to have a bad credit score? If you have bad credit it is important to fix the problem as soon as you can. Here are several ways to do just that.
First, you must stop your bad credit before it gets worse. So how do you do this? You pay your previous overdue debts as soon as possible. This cuts off the bad credit reports from creditors. It will not improve the actual credit score but it will put you on the right track to repairing your credit history.
Secondly, you must raise your credit score by opening a new savings or checking account. You should also apply for a secured credit card. This will mean that you will have a higher interest rate but it is also a good way to control your credit card spending and it will also raise or repair you bad credit score. By paying the monthly credit card bills on time you will be able to see a significant rise in your credit history report.
If you continue to follow these steps you will eventually start to see a good credit rating. However, your past credit history will contain bad credit scores and ratings. This does not expire for 5 to 7 years. You must remember that it does take time to raise your credit rating. You must be patient and diligent to see a change.
That is why it is very important to make positive reports for your creditors. They then will pass those on to credit reporting agencies. Remember to pay your loans and credit cards on time in order to get a good credit rating. By doing so you will eventually end up with a good credit score and history. Never miss out on a future financial opportunity when they come your way.
Posted by creditreportsolution at 09:12 AM | Comments (0)
October 01, 2007
Debt Collection - Facts vs Force
The title 'debt collector' is self explanatory and clearly states what such a person does. If you owe money to a lender and there has been a delay in payments over the past few months the lender may choose to either use their in-house service or employ a specialized debt collection service provider.
If it is a third party i.e. a specialized collection agency, they usually purchase your debts for less than you owe from your lender and then the debt becomes theirs. Therefore, they then have vested interests in settling the same.
Debt collectors while doing their job may tilt towards being forceful and intimidating. As a defaulting borrower, you are already on a back foot. However, you can still stand firm and not give in to their demands. Here is how:
The job of a debt collector is to advise you that you owe some monies. He cannot threaten, abuse or intimidate you by threats of harm or police action.
A debt collector may establish contact with the borrower in person, via sealed mail, telephone, fax or a telegram. He cannot use a postcard as it can be read by anyone. He cannot also call before 8 a.m. and after 9 p.m., unless you agree on a time.
The first call from the debt collection agency has to be followed up by a written statement clearly stating your creditor's name, the actual amount owed and what action he can take if you do not acknowledge the money owed. This written letter must be accurate and have no false information.
Also note, the debt collector cannot contact your relatives, friends, neighbor etc unless to obtain your contact information. In such circumstances he cannot inform them that you are in debt. You are entitled to your privacy even if you are in default.
Remember you cannot and should not force the debt collectors to coerce you into making payments as per their demands. A number of collection agencies work on the premise that the best way to get the payment is to make sure that it becomes number one on your priority list. While you know you owe the monies, you have to ensure that you clearly prioritize your finances. If there is a greater and pressing need for your money, like for medicines or food then you must allocate the funds accordingly.
You can choose to directly negotiate with the debt collector or appoint an attorney instead. If you deal directly, do not feel compelled to offer private information that can be misused to force payments from you. Example, details of where you work, your personal account information and the like.
Always seek written communication from the debt collector instead of phone conversations. This will put pressure on the collector to be polite and accurate in his dealings with you. All agreed terms and conditions will also be clearly outlined. The original amount owed, along with any interests and fees should also be clearly mentioned. It is also a good idea to tape your phone conversations after having explicitly informed the collector when he calls that the same is being recorded.
If your debt collector continues with his forceful methods you have a right to redress. You can complain to the concerned authorities within your jurisdiction and obtain relief.
The best way to counter force is through knowing the facts and standing firm on them.
Posted by creditreportsolution at 10:04 AM | Comments (0)
