Hector Milla asked:




Less than 1% of U.S. resident have a perfect rating. If this is your goal, you need a FICO score of 850.

Agencies assign scores based your financial history. In particular, they evaluate how many accounts you have, the type of debts you owe, the age of your accounts, frequency of late payments, and the ratio of total debt to credit used. They also use several more factors that are less concrete. For example, how often you move, job stability, and your estimated income could change your score. Even the frequency of creditor inquires is considered.

A perfect score is not important. A good score distinguishes you as a good risk for additional credit. For example, a person who earns $1,000,000 a year, but exhausted all available credit sources and carries maximum balances, will not receive a perfect score. Another person, earning $50,000 and using less than 10% of credit available, could have a near perfect score if making all payments on time, has almost paid off a mortgage, and paid installment loans early.

Employers use scores to evaluate employment applications. Landlords review them before leasing. Insurance companies adjust premium rates depending on the level of responsibility they perceive. Government agencies refuse to hire anyone with a low score for sensitive operations. If these uses concern you, review your file with each of the three large agencies at least monthly.

One of the best ways to protect your career and financial stability is to make sure no one spreads false information. This small chore becomes much easier with the help of an online reporting service. These companies provide updates from all three large agencies for a cost of $15 to $25 per month. You should request price quotes for all services and options you believe are important. Also, inquire with the Better Business Bureau about complaints and complements. The best companies offer a free trial, knowing that a quality product sells itself without sales pressure.

Bernard

Pammila Phillis asked:




Bankruptcy should always be a last resort (see our Debt Relief section for bankruptcy alternatives). However, if you are determined to file bankruptcy but have not done so yet, then please take your time and don’t rush the process – it is more important to ensure that all your bases are covered rather than to make a mistake that may cost you later.
Obtain Credit Reports. You absolutely need to obtain your credit reports from the three major credit-reporting agencies (Experian, Equifax, and TransUnion). Fortunately, you can conveniently obtain all three of your reports online in only minutes. 1. With the reports direct from each bureau you will have access to a file number and a phone number needed for accessing customer service. 2. You will see the addresses for each creditor on the credit report. If it is not there, then you can call customer service to ask them to provide you with the missing information. 3. When you call the bureau you can ask them to provide you with the phone numbers for each of the companies showing on the credit report. Get Updated Information. You need the most up to date information you can have when filing for bankruptcy. 1. Call each creditor and ask them how much is owed and for the address where payment should be sent. 2. If they don’t handle the account, then ask them for the name and address of the collection agency that will take payment. 3. Call the collection agency and ask them how much is owed and for the address where payment should be sent. 4. When dealing with creditors and collection agencies don’t let them bully you or upset you over outstanding balances. Just collect the information you need. All you have to say is, “Thanks. I will call your company back soon regarding this matter.” Don’t give them time for a rebuttal – just hang up. If they push the matter, then only as a last resort tell them you will be filing bankruptcy. Give them the name and number of your attorney and end the call. Some companies will take this as a reason to step in and offer a settlement to reduce the amount owed in order to get you to pay. And sometimes people do call creditors and suggest bankruptcy just for this edge in negotiating a settlement, even when they don’t intend to file. You absolutely don’t want to use this tactic if you are going to follow through with the bankruptcy. They will try to default your bankruptcy petition if they can. Identify All Accounts. It is important to identify all of your accounts. 1. If you don’t see a creditor or collection agency on the credit report you know for a fact you owe money to, then you need to find any billing statements or collection letters you may have received. These statements and letters will have necessary address information and phone numbers along with amounts still owed. 2. If you have no such information, then try to skip trace online to locate these companies. I personally like using this site for look up: http://www.bigbook.com/ You don’t have to know what city the company is located in, but definitely try to find the state. 3. If that is still not helping, then you can also try the Better Business Bureau site: http://search.bbb.org/search.html Make a list of accounts for your bankruptcy attorney. Your attorney will need the addresses, balances, and account numbers to complete the bankruptcy papers. If there are creditors that you want to continue paying, then it is very important at this time to tell your attorney that you want to offer reaffirming on the debt. The attorney will then send the offer to the creditors you have selected who must accept it. Then the judge must accept the offer too. The creditors will continue reporting the balance owed and show the status “reaffirmed” on your credit report. All other creditors depending on the bankruptcy: 1. Chapter 13. Once discharged then the balance will show as zero. The public record listing will remain 7 years from the file date. The accounts included in bankruptcy will remain on your credit report 7 years. 2. Chapter 7. Once discharged then the balance will show as zero. The public record listing will remain 10 years from the file date. The accounts included in bankruptcy will remain on your credit report 7 years. For further information on reporting periods please review the Fair Credit Reporting Act at the Federal Trade Commission web site, http://www.ftc.gov. Other recommended reading is the staff opinion letters regarding reporting periods. Usually prior to filing bankruptcy defaulted accounts go into collection or charge off status. The creditor stops reporting account information to the credit reporting agencies and turns the defaulted account over to a collection agency. The collection agency then picks up on the collection efforts and will from that point on report account information to the credit-reporting agency. The creditor is taken out of the loop. Because account information is now handled by collection agencies instead of creditors, by the time your attorney sends your creditors notice of the account being included in bankruptcy, it is typically no longer “in their system” to properly notify the Credit Reporting Agencies to update zero balance and include in bankruptcy status. Creditors have the means and responsibility to manually update account information with credit reporting agencies. But at this point no one is requiring creditors to change their policy and address this issue. If you have a complaint, you can do the following: File a complaint with the Federal Trade Commission. They regulate the Credit Reporting Agencies. File a complaint with your attorney generals office. File a complaint with the regulating company over each of the creditors. Your bankruptcy attorney can file complaints against creditors who do not report accurately.

When creditors don’t update account information with the credit reporting agencies, then you get an incorrect credit report that still shows you owe on the accounts in question, and that they are currently in collections or charge off status when in fact they are not.

The problem with this is that if you apply for new credit after your bankruptcy is discharged, then you are likely going to be declined because the new lender will assume that you still owe on the debt.

The clear, quick way to fix this problem is to:

1. Obtain a copy of your bankruptcy and discharge papers from your attorney or the courthouse. This may include a copy fee.

2. Make three copies of the section of papers that list all of the creditors and collection agencies that were included in the bankruptcy – usually this is called the Schedule F.

3. Forward these documents along with the discharge to all of the credit-reporting agencies (listed below) requesting that each creditor included in the bankruptcy be updated to properly reflect a zero balance with the status included in bankruptcy.

Experian

PO Box 2002

Allen, TX 95013

Equifax

P.O. Box 740256

Atlanta, GA 30374

TransUnion

P.O. Box 1000

Chester, PA 30374

4. Be sure when mailing correspondence to the credit reporting agencies to include a copy of your driver’s license and mail “certified return receipt requested”. This will ensure disputes are processed with little delay.


Finally, if you have a creditor or collection agency which is not honoring your bankruptcy and continuing collection efforts, then be sure to contact your bankruptcy lawyer. Give your lawyer the name and address of the company bothering you so that he or she can send them official notice. Follow up with the lawyer if the creditor persists in harassing you. It is a violation and they can be held accountable if they don’t cease after notification of the bankruptcy.

As with all consumer issues, knowing your consumer rights throughout the bankruptcy process is essential. Taking a proactive approach at the onset of the process will help you on your “road to credit recovery”.

Vincent

Sonny Collova asked:




You may need credit bureau phone numbers to request a free credit report if you have been turned down or would like to opt out of pre-approved credit card offers. Place security freezes, fraud alerts or get information about business credit services. You will need contact information for Equifax, Trans Union and Experian.

If you have children you’ll want to make sure no one is using their social numbers to fraudulently apply for credit. This has become very common over the past few years. Unfortunately many people don’t find out until the children turn 18 and apply for a credit card or car loan on their own. Finding out after the fact when there are pages of fraudulent defaulted credit makes it difficult to get corrected. In fact sometimes it takes months or even years to correct a credit report due to undetected identity theft. The sooner it is caught the easier it is to fix

Many credit monitoring and identity theft protection services offer free monitoring for your children’s social security numbers and whole family plans. Check with all three bureaus directly or make sure the monitoring company you choose checks all three.

If you are turned down for credit the creditor must provide you with a denial letter listing the reason why and the credit bureau phone number (toll-free). You can use this letter to request a free copy of you report even if you have already gotten a copy of your free annual report.

In order to avoid identity theft it is a good idea to opt-out of pre-approved offers and mailing lists. You can use credit bureau phone numbers to contact all three. If you don’t opt out make sure your mail box is secure and you don’t throw away mail with sensitive information, like social security numbers of you or your children.

Here are the main credit bureau phone numbers:

Equifax: 1-800-685-1111
Experian: 1-888-397-3742
TransUnion: 1-800-888-4213

Larry

Free Indeed asked:


If I am a creditor (providing financing to someone who buys my house), how do I report their timely (or untimely) mortgage payments each month to the three credit bureaus?

Benjamin

Aubrey Clark asked:




The epidemic of home foreclosures, higher gas and food prices have stretchered the average consumers budget to the max. According to Trans Union and Equifax, national credit scores are steadily dropping at a higher rate than they have seen in the last decade. As a result of the lower credit scores large ticket items, like homes and automobiles, have began to slow down fueling the current recession. At Direct Banc, we thought a few credit bureau repair tips might be in order, here are the steps we recommend consumers follow.

Become Familiar with your Credit Report – Having a credit bureau in hand is essential if you are serious about credit bureau repair. There are three major credit reporting repositories (Experian, Equifax, Trans Union), each reporting their own version of your credit. It almost certain that each of their reports will differ from the others. For this reason, you should get a 3 in 1 credit bureau report before you begin your credit bureau repair. Validate all Negative remarks – We suggest that you send a validation letter to every creditor or collection agency that is reporting negative information about you. Send these letters BEFORE sending a dispute letter to the credit repositories. Creditors/collection agencies are required to validate the legitimacy of your debt and their relationship to the debt. If they are unable or unwilling to answer your request for validation, the credit repositories will likely remove the remark. Dispute Invalidated Items to the Credit Repositories – Wait 30 business days from the time sent the creditors a letter of validation. Once this time frame has passed, you can send a dispute letter to EVERY credit repository showing proof (certified letter receipt) that the collection agency failed to respond to your request. This will usually result in the removal of the remark. Stop the Collection Agencies from harassing you -Once you are back on the collection agency’s radar, they will most likely begin to actively collect the debt. We all know how annoying that is; all you need to do is send them a “stop harassment” letter that basically tells them to leave you alone while you are working on the debt. Dispute Valid Debts with The Credit Repositories – As we mentioned earlier, collection agencies have to prove that you owe the debt to the repositories. Even though you may actually owe the debt, or deserve the negative remark, some agencies are unable to back it up. If you send a dispute letter to ALL of the repositories requesting an investigation the collection agencies are compelled to answer them. If they do not answer the repository in a timely manner, or they offer unsatisfactory proof, the remark must be removed.

This list is just a partial explanation of how to thoroughly repair your credit bureau. We have a tutorial underway at Direct Banc that will give you a detailed, step by step break-down of credit bureau repair. We also list a comprehensive assortment of pre-written sample credit repair letters that are free to download to help you with all of the validations and disputes.

Keep in mind when attempting credit bureau repair, the credit repositories are your friends, being rude or disrespectful to them will not help your situation. The collection agencies, not so much, it’s best to deal with them by mail. Remember to send ALL correspondence certified, return receipt mail; it’s worth the two bucks. Keep all receipts and letters, you WILL need them in the future when the collection agencies sell your debt to penny brokers.

Stephanie

Tiffany Dow asked:




As the economy continues to go through major upheaval, banks are becoming increasingly reluctant to loan money – even to each other! The lending boom in which banks and lending institutions loaned money indiscriminately has led to a huge rise in home foreclosures, financial upheaval, and near disaster.

The $700 billion bailout has been turned down, and the everyday person is left to wonder, “What’s next?” It’s true – there may very well be a new bailout proposal that might pass in the future and it keeps happening – first the car industry, then the credit and banking industry. Expect more bailout proposals in the coming years.

And as with everything, this financial crisis will pass. But what is bound to linger is the fact that right now, and most likely in the future, it will be very difficult to get a loan for anything unless you have a good credit bureau report.

The days of securing a loan even with bad credit are over. If you want to finance a car, a home, a boat, a pool for the back yard or much of anything else, you must have good credit! So what do you do if your credit is less than stellar?

How are you ever going to be able to finance anything ever again? Your first step has got to be to repair your credit and make sure your credit bureau reports are correct. This might take a while to do, but if you get started now, you’ll be in good shape for future purchases on credit. Here are the credit bureau report repair tips you will need to use:

1.) Get a copy of each of your credit bureau reports from the three major credit bureaus – Experian, Equifax and TransUnion. Without your credit reports, you can’t move forward with fixing your credit.

2.) Review each report thoroughly. If you see errors, make a note of them. If any reports are missing good credit information, make a note of those as well.

3.) At this point it will be handy to start a filing system, perhaps folders, for each creditor that you need to contact to either fix faulty information or to add favorable information to you credit reports. You can keep your notes, letters you write to creditors and reporting agencies and other important information organized this way.

4.) If there are errors or omissions in your credit bureau reports, write letters to both the reporting bureaus and the creditors involved and provide them with as much detailed information as possible. You will want to include copies of any supporting documents and you might even want to include a copy of the credit report with the item in question circled if you are requesting a correction in a reporting error.

5.) Once you’ve contacted your creditors and the bureaus in writing, get copies of your credit reports again (you should wait 30 to 60 days to give them time to correct their errors). If the corrections you’ve requested aren’t showing, write them again. It may be necessary to repeat this step a few times – the squeaky wheel will get greased most quickly.

6.) If you don’t get the changes you’ve requested, you can contact the Federal Trade Commission and make your case known to them. Under the Fair Credit Reporting Act, they can help you get results.

7.) Be sure that once you’ve fixed any errors or omissions, you keep monitoring your credit report on a regular basis and that you always manage your money wisely to keep your credit score top-notch.

Making certain that your credit report is accurately reporting your credit history is your first step to credit repair. By using these credit bureau report repair tips, you will be forming the foundation for rebuilding your credit.

Milton

K.M. Aguglia asked:




Contrary to popular belief, there are no shortcuts to raising your credit score. But there are ways to insure that you are raising it in the fastest manner possible. Read on!

1. Order your credit report from all three credit bureau’s (Experian, Equifax, and TransUnion). The reason for getting all three is that sometimes, the information provided from one report to the next, is not necessarily the same.

Once you have your credit reports, go through each one carefully. You want to be sure that there are no errors dragging your credit score down. If you do find mistakes, dispute them with the credit bureau that furnished you the report, and with the creditor making the claim.

Tip: Do not dispute correct information or the credit bureau’s may start to look at your claims as frivolous.

2. Pay your bills on time. This has to be the single biggest factor for improving your credit. Responsibility is the core of a good credit rating.

Along with paying your bills on time, start to pay down your credit accounts. Especially those that are near their limit. Getting your credit debt down to under 30% of your total available credit could raise your score.

Tip: When you pay off an old credit card, do not close the account. Even if you don’t use it any more. Older accounts establish length of credit history. The longer it is the more favorable.

3. Use your credit wisely. If you don’t have an available line of credit, obtain one. Apply for an unsecured credit card or personal loan advertised to people with poor credit.

If you get a loan, make your monthly payments on time. If you get a credit card, spend only what you can afford and pay off the balance in full at the end of each month.

Tip: If you are unable to obtain unsecured credit, opt for a secured credit card. This is a slower method for building up your credit score, but well worth the effort when nothing else is available.

Remember, improving your credit is more like a marathon than a quick sprint. But by following the advice outlined above, you will be well on your way to higher credit scores and lower interest rates.

Ella

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

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Michael H asked:


The debt collector called me many times a day. Then they started calling my mom’s house, and my brother’s house. They demanded a payment…if I didn’t give them the amount they came up with over the phone, they threatened to sue me. I asked them to cease and desist, but they kept calling. Finally, I gave them the amount they asked for over the phone. I was relieved.

A short time later, they sold the debt to ANOTHER debt collector. When I dispute this with the three bureaus, it goes off of my credit report, and then it reappears a few months later. The amount is getting out of hand! How do I get this item removed from my credit report? I have my canceled check of the exact amount they asked for over the phone, but now this debt is in the hands of another creditor. What do I do? Thank you!

Dustin

Chane Steiner asked:




In order to clear your record of a negative rating, you must first check the credit report for any inaccuracy or see if it has been verified by the credit company. You may be surprised how often information in your credit report has not passed through careful scrutiny and how much of it is erroneous. Only when proven inaccurate or unverifiable can you remove a negative credit rating from your report.

According to a study conducted by the U.S Public Interest Research Group in June 2004, 79% of the consumer credit reports that they have surveyed had some kind of error or mistake. Up to 25% were serious enough to warrant rejection of credit application or increased interest rates.

The credit bureaus that do the credit reports are companies that collect information about consumers, and provide the report to people who are willing to pay for the information. All consumers are entitled to 1 free report yearly, but must pay for any additional reports that they may require.

Fortunately, the Fair Credit Reporting Act gives consumers a chance to correct any information about their account that might be inaccurate. It is up to the creditor or the credit bureaus to prove otherwise. A dispute letter has to be sent to the credit bureau. Upon receipt of the dispute letter, the credit bureau is given 30 days to verify that their information is 100% correct. If not, they must correct or update their data. Otherwise, they must remove it from their file. In so doing, the consumer is cleared of the negative credit rating.

This is just one of the ways on how to remove a negative credit rating. You could also try sending debt validation letters to debt collectors or pay for delete letters to creditors. The best method though, is to send the dispute letter. Although most credit bureaus do not investigate credit accounts since they just check their e-Oscar system, if no action has been done after 30 days of receipt of your letter, just keep sending those dispute letters until they do take notice and you get your desired results.

Colleen