Archive for October, 2010

How to Clean Up a Bad Credit Report

Posted in Finance on 10/30/2010 01:06 pm by admin
Mishaun Taylor asked:




Cleaning up your credit report can seem like a daunting task, but a few simple steps could prevent your Credit Score from being hurt any further. Until recently passed legislation, consumers were unable to check their credit report without paying a fee. However, everyone can now monitor their credit report annually at no cost. This is important for several reasons, first it insures that there are no errors that might have otherwise dropped their score drastically. And secondly it shows you all accounts that are not in good standing, in case you may have forgotten due to a change in address or other reason. In this article, I will provide you with tips on how to clean up a bad credit report. Let’s begin.

First, go to a website like freecreditreport.com to perform your free annual check. There are a couple primary credit reporting companies like Experian that house all your information. After logging into the website and choosing which credit reporting company to view, check any potentially negative Items. You should see the name of the company that and the reason for the negative status.

Second, if you do not agree with the negative item, you must dispute it. It is up the reporting company to prove that the information is correct. Also, make sure you review the section on Knowing Your Rights. There is often helpful information on structuring your dispute.

Third, if you have currently open accounts that are in bad standing it is important that you take immediate action. Print out a copy of the report so you have all the pertinent phone numbers. Then, start calling all the companies for which you are past due. When speaking with your creditors, tell them your situation and that you would like to stop the delinquent status. Explain that you really want to pay your bill but are having difficulties. In some instances, you may be allowed to restructure your repayment so that payments are manageable. This will take you out of default and prevent the late payments from further hurting your score. There is also the option to settle the account which may be one way to proceed. However, this usually requires you to pay at least half of the total balance and it also will show on your credit history for 10 years! This will prevent you from obtaining any new credit, and will increase your rates when you finally are able. However, this should be used as a last resort.

Fourth, consider these final tips. It is also important to note that closing your accounts is not a good idea. When you do this, it lowers your credit score. Opening a lot of new accounts does the same thing, so be careful to only open accounts that have the best rates, and are needed. To improve a bad score, remember to always pay your bill in full each month and not to carry a balance. Also, use only up to seventy percent of your available credit, and never max out the card.

In conclusion, stop wondering “How to Clean your Credit Report” and take action. By getting a free credit report, disputing erroneous information, negotiating with creditors and taking preventive action, you’ll be well on your way. Good luck!

Clyde
 

Does anyone know which banks offers Deposit loan Programs?

Posted in Credit on 10/24/2010 10:18 am by admin
positivecurry asked:


DEPOSIT LOAN PROGRAMS: This is a technique so unbelievable that I myself proclaimed it had to be a scam before researching the facts. It allows the consumer (or business) to have a $25,000 to $250,000 loan appear on their credit report as “Paid as Agreed” by way of very creative financing. This method is extremely effective and not within the budget of most ($750 to $7,500 upfront).

Lillian
 

How to Remove Negative Items on Your Credit Report

Posted in Finance on 10/23/2010 12:21 pm by admin
Regis Sauger asked:




Negative Paid Accounts

Unfortunately, you have no leverage in this case as the creditor has already been paid their money. The best strategy for accounts which were paid off a great while back and now just show up as a “Paid Charge-Off’ or “Paid Collection Account” is to find something wrong in the reporting of the information so that you can initiate a reinvestigation for verification. The hope is that the accounts (now being an inactive paid account) may be stored on electronic files not in the main system of the creditor.

This might create more work as far as research than the creditor wants to pursue just for
verification purposes. If so, the account must be deleted from your file for lack of a response from that creditor. The effectiveness of this method is hard to determine. It is as varied as the number of data storage systems in use today and the variety of people overseeing the process.

I have heard about using the term: ESTOPPEL in some cases. What I have read is this: The creditor has already been paid and the consumer makes the claim that, when the debt was paid, the consumer was under the impression that the creditor would make a favorable entry on the consumer’s credit report. BUT, when the credit report showed a PAID COLLECTION, this damaged the consumer’s credit rating. So, the consumer files a lawsuit claiming damages.

The logic to this is that because the creditor already has the funds, what more can they gain by defending this lawsuit. Especially, if they are in another town. So, the creditor either loses by default or succumbs to the consumers demands. Personally, I think that this type of action requires guidance from your trusted attorney.

Old Delinquent Accounts:

(EXTREMELY IMPORTANT) MAKE SURE YOU DON’T MISS THIS)

This has long been probably the most unfair provision in the FCRA. The original 1970 law allows for a seven-year waiting period before negative collection accounts were automatically removed. This is referred to in Section 605(a)(4) “Accounts placed for collection or charged to profit and loss which antedate the report by more than seven years.”

That seven-year clock begins ticking from the time reported as the last activity. If you have an account that never was fully paid, that you have not made a payment on in five or six years, beware!

If you go make a payment on it now, you will restart that clock and have to wait another seven years for it to be removed. There is a distinct wording in Section 623(a)(5) of the Fair Credit Reporting Act that reads “the seven year period of reporting derogatory entries begins when an account is FIRST late and never get caught up. That is fact and there have been numerous court cases where Collection Agencies have been fined millions of dollars for violating this statute.

Confused, guess what? So is the system. BUT, you can rest assure that when a collector or mortgage broker tells you that by paying on an account you restart the seven year clock, that is hogwash. It begins when the account was first late and NEVER gets caught up. It is directly identified in Section 623(a)(5) of the Fair Credit Reporting Act.

Is it fair to be sentenced to seven years in a credit prison only to have your sentence increased for good behavior? I don’t think so!
As you can see, in some cases, you may have to make a decision whether to live with a charge-off for another year, or, a paid charge-off for seven more years. A paid charge-off will trigger a credit denial almost as easily as one that hasn’t been paid. It’s a shame that our system provides no more incentive to pay these old debts.

Credit Fraud

How do you know if you are a victim of credit fraud? The signs can vary, but typical indicators of fraud include: Unusual purchases appearing on credit card bills

 

Childhood mistake ruining my life?

Posted in Other - Society & Culture on 10/20/2010 09:37 am by admin
Wise N Weary asked:


I am 20 but when I was 16 I stole 30 dollars worth of red bull from a rite aid. My problem is even though I’m all grown up with a great credit and work history, this CONSUMER REPORT is holding me back from good jobs. So..how long does an item stay on a consumer report also is there a way to remove items??

William
 

A Sample Credit Report – Don’t Bother

Posted in Finance on 10/18/2010 09:19 am by admin
Justin Fox asked:




Searching for a sample credit report is something that a lot of people seem to do online. While a sample credit report might give you an idea of what to expect, getting one is largely a waste of time. Here’s why.

The credit reporting industry is largely regulated and the Fair Credit Reporting Act really protects the consumer.

So much so, that it is actually law that each of the consumer reporting companies, Equifax, Experian, and TransUnion, are required to provide you with a genuine, full and free credit report once per year, if you ask for it.

Instead of getting a sample credit report, you can get the real thing!

Of course, the trick then is knowing what to do with it. But that’s not so hard either.

Your genuine credit report simply lists all items collected by the consumer reporting company that affect your credit rating.

Once you get your credit report, you simply have to pick out the items on it that are either wrong or not totally right. Each of these items offers an opportunity to improve your overall credit score.

Write a letter to the relevant consumer reporting company listing each of the items from your report that you think are either inaccurate or misleading. If you have any, then it is a good idea to attack documentary proof of why you think each item needs to be revised.

After that, the company will look into your claims and if the report is changed they will send you a new one with the changes.

So why bother going with a sample credit report when you can get the real thing and make some real changes?

Of course if you are not really sure what to do with your report, which items to dispute or how to go about disputing those items, then you might like to consider the services of a credit reporting company to do it on your behalf. Often they will have a better rate of success as they know exactly what can be disputed and they will know the best process to ensure a positive outcome. Many of them work with a results guarantee too.

Such companies will monitor your credit report on your behalf and provide you with itemized lists of the improvements that they attain on your credit report.

The investment in a reputable and respected credit reporting company is often well worth getting cheaper and more credit based services in the long run.

Marvin
 

Americans are borrowing less and paying down their debts, what do you think of this?

Posted in Economics on 10/17/2010 09:23 am by admin
. asked:


“The outstanding balances on Americans’ credit cards shrank by almost 10 percent in February, the largest decline since 1978.

The Federal Reserve Tuesday, in its monthly report on consumer credit – also called the G.19 – said that $7.8 billion in revolving credit balances disappeared in February, an annual rate of 9.7 percent. Revolving credit as defined by the Fed is comprised principally of credit cards.

Young Kim, an analyst for Stone & McCarthy Research, wrote in an investment note that the contraction represents “less available credit, less consumer demand for credit, and consumers’ new found propensity to pay down debt.”"

http://www.insidearm.com/go/arm-news/credit-card-debt-shrinks-at-fastest-rate-in-30-years-in-february

http://www.nasdaq.com/newscontent/20090408/Americans-paying-down-more-of-their-debts.aspx?storyid=19115263

Micheal

 

If the Banks & Lenders are being given nearly $1 Trillion,shouldn’t our Credit-Scores be given amnesty as well?

Posted in Economics on 10/16/2010 04:31 am by admin
zulubravo asked:


…After all, most of the credit-scores in America, are horribly incorrect, and the reporting system is Flawed.

If they are getting a break, why shouldn’t we?
A clean slate, means everyone starts at Zero…
Both consumers & lenders!

Linda

 

Using Consumer Credit Reports in Hiring

Posted in Education on 10/12/2010 08:37 am by admin
lawinfo asked:


www.lawinfo.com An employer must obtain a potential employees consent before accessing their consumer credit report. An employer can not discriminate against a potential employee for the results.

Glenn

 

Free Triple Credit Reports

Posted in Finance on 10/10/2010 05:25 pm by admin
Bill Pratt asked:




Freecreditreport offers online credit reporting resources to consumers worldwide and belongs to the ConsumerInfo family. The company is a leading provider of online consumer credit reports, credit information and monitoring services as well as credit scores.

The company has served 3.1 members thus far and delivered more than 20 million credit reports. The indispensable services and befits offered by Freecreditreport has taken the company to newer heights as the membership count continues to rise.

Consumers can now wield control over their credit by taking advantages of the services offered by this company. The first step involves getting access to their free credit report and credit score. Customers can try these services completely free of cost with the 7 day free trial offer.

The features and benefits also include:
Daily monitoring of Experian, Equifax and TransUnion credit reports
Email reports of any kind of changes and risks of identity thefts to any of the three credit reports
$50,000 Triple Advantage Guarantee feature offered the company

The paid membership comes with access to unlimited Experian credit reports and credit scores.

Monitoring and analyzing the customer’s credit score can result in substantial savings as these credit scores are taken into consideration by lenders for the “credit worthiness” of customers in order to facilitate processing of loan application, credit card application and other lines of credit. This credit score in turn helps in determining whether the applicant qualifies for a credit or not as well as the interest rate applicable on the given credit.

These credit scores are extracted from the credit reports which have a propensity to change on a daily basis. It therefore becomes imperative to monitor your credit reports as this could directly affect the credit scores.

Freecreditreport takes care of all these intricacies for its customers/members while obviating the any associated risks in terms of unauthorized activity or potential discrepancies. Customers also get to guard their identity, as Freecreditreport monitors the customer’s Experian, Equifax and TransUnion credit report on a daily basis.

It is important for the customer to note here that higher credit scores equate to lower interest rates on new loans, thereby resulting in substantial savings.

Dora
 

Consumer Credit Protection Act Explained in Detail

Posted in Finance on 10/06/2010 01:06 am by admin
Kris Lee asked:




The foundational provisions of the Consumer Credit Protection Act are contained within the Truth in Lending Act (TILA), which requires the lending institution to state fully the terms of the loan it is offering. The lender must provide a written disclosure in plain, easy-to-understand language, specifying the following details:

* The amount of the loan or line of credit

* The interest rate, or APR (annual percentage rate), as an expression of the full cost of borrowing the money (meaning that there must not be hidden costs compensating for an artificially low interest rate)

* The method used to compute the monthly finance charge (the interest payment)

* The total cost of all payments (this applies to loans of a specific amount, not to credit)

* Any other conditions or terms of the loan, including the payment due date, any late fees, and early repayment penalties

In addition to requiring transparency from lenders about the terms of their loans, the CCPA also places important restrictions on wage garnishment. Wage garnishment is a legal procedure whereby a portion of a person’s earnings is withheld from his or her paycheck in order to pay off a debt. Wage garnishment can be ordered by a court when a person has defaulted on (failed to repay) a loan. The CCPA stipulates that an employer cannot fire an employee because his or her wages are being garnished for a single debt (the employer can fire the employee if his or her wages are garnished for more than one debt). It also sets a legal limit on how much (what portion) of a person’s wages can be withheld from any one paycheck. Usually, no more than 25 percent of a person’s wages can be garnished.

The Fair Credit Reporting Act (FCRA) was added to the CCPA in 1971. It was the first federal regulation to address the credit-reporting industry. (Credit-reporting agencies, also called consumer-reporting agencies or credit bureaus, are companies that collect and compile consumers’ credit-history information. The three major nationwide credit bureaus are Equifax, Experian, and TransUnion). The FCRA is intended to insure the accuracy, privacy, and fairness of consumer credit files. Protections contained in the FCRA also apply to consumer-reporting agencies that sell information about people’s medical histories (often used by insurance companies to decide whether or not to extend medical insurance coverage to individuals) and rental histories (used by prospective landlords). According to its provisions:

* The consumer has a right to see the information contained in his or her credit report. Traditionally there was a charge for accessing the report, but recent changes allow people to request a free credit report once a year from each of the major nationwide credit bureaus.

* The consumer must be notified if information in his or her credit report has been used to deny him or her credit.

* The consumer has a right to dispute any inaccurate information contained in his or her report, and the reporting agency is required to investigate any such claims unless they are deemed frivolous or baseless.

* Credit-reporting agencies are required to correct or delete any information about a consumer that is inaccurate, incomplete, or unverifiable.

* Credit-reporting agencies are not allowed to report negative information that is outdated (more than seven years old).

* Credit-reporting agencies may only give out an individual’s credit report to people with a valid need for seeing it, such as a prospective lender, landlord, insurer, or employer. Additionally, an individual must give the reporting agency written consent to disclose his or her credit report to an employer or prospective employer.

Another amendment to the CCPA, the Equal Credit Opportunity Act, which was added in 1976, prohibits credit lenders from discriminating against applicants on the basis of sex, race, age, marital status, religion, or national origin. Implemented in 1978, the Fair Debt Collection Practices Act (FDCPA) prohibits abusive, deceptive, and unfair debt-collection tactics, such as threats, persistent and intrusive phone calls, and other kinds of harassment.

The CCPA is designed to protect individual consumers. Its larger purpose, however, is to maintain consumer confidence in the financial system and thereby promote a robust economy. If consumers fear that they will be cheated by credit lenders, or that they have no access to, or control over, the information that is contained in their credit histories, their loss of confidence could cause them to avoid lending institutions altogether. A widespread loss of consumer confidence could lead to a major upset in the economy, something that the government, financial institutions, businesses, and consumers all have an interest in avoiding.

Lance