Today's headlines can be depressing, particularly if you're having money problems. From the decline in the value of your home to the tightening of the credit market, the bad news can seem to be to much to deal with. It's at times like these that the slick operators and "scam-sites" crawl out from their hiding places like cockroaches.
There is any number of credit repair and debt consolidation scam artist that would like you to believe that you can't improve your bad credit without their help. Don't believe them. Particularly be wary of companies that want you to pay for credit repair before they provide any services, or if they suggest that you create a "new" credit identity. Some of these approaches can get you into deeper financial (and maybe even legal) trouble.
There are many, common sense steps you take yourself to repair most of your credit problems. Many will require discipline on your part, and some might be downright painful, but you can get your financial affairs back in order.
Credit card debt is one of the easiest debts to fall into because it's the easiest way to get credit. You'd be surprised how many people think of paying off their credit cards in terms of making the minimum payment each month. Are you one of them? That approach just keeps digging the debt hole deeper. You have to make progress in paying off the balance of your credit card debt before you can gain control again. This will mean developing a payment plan you can live with, and calling your bank or lender to get their buy-in.
How do you keep your credit card balance from creeping up again? How about putting away the plastic, and paying with cash. I know, easier said than done. If just cutting down on restaurant meals doesn't free up enough cash, that's when it starts getting painful. You might have to make drastic changes to your life in order to reach the goal of repairing your bad credit. Could you drive a used car instead of a new one? Sure. Could you take public transportation instead of owning a car? Let the pain begin.
Once you are able to make meaningful (and on-time) payments on all your monthly debt, you can turn your attention to your credit report with the goal of fixing your credit score. Request copies of your credit reports from the three major credit bureaus (Experian, Equifax, and TransUnion). Look for the negative information in your report. Some may be valid, but focus on inaccurate data. Maybe one of your creditors is reporting you have an outstanding, overdue balance, but you can prove that you have paid off that loan. Contact the credit bureau in writing, specifying the information you think is inaccurate. Include copies of documents that will prove your point, and request that the negative information be removed or corrected. Also contact the lender that originally provided the inaccurate, negative information. Request, in writing, that their records be corrected, and include the written proof of your point.
These are just a few of the steps you can take yourself to fix your bad credit. At the end of the process, you'll have your finances under control. And you didn't have to pay a credit repair scam artist to help.
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Showing posts with label credit repair. Show all posts
Showing posts with label credit repair. Show all posts
Wednesday, February 18, 2009
Sunday, December 21, 2008
How To Handle Rejected Credit Disputes
Your goal is to raise your credit score so you can enjoy lower interest loans, lower insurance premiums, a more affordable mortgage, and all the other benefits of good credit. You have already gotten copies of your credit report, and identified the negative items that are bringing down your credit rating. You have submitted forms to the credit reporting bureaus, disputing the negative information that they have been distributing in your credit report. And now, you have just gotten back rejections of your credit disputes. What should you do next? That is the focus of this article.
Don't be surprised that it isn't easy to erase the bad news from your credit report. It seems that they make it hard, on purpose. But with a little perseverance, you can be successful.
First, check the dispute letters that you had originally submitted. Were you concise and accurate in stating your case? The credit bureaus and lenders get a ton of dispute letters every week. In order to make sure your letter is actually read and understood, keep it short and to the point. Do not include details that will only confuse the situation.
Don't try to impress or scare them by quoting the law. You may be tempted to include legal wording in your dispute letters, particularly if you feel that they have violated the law. But a personal letter will be much more effective. Maybe an exceptional circumstance, like an illness or divorce, forced you to default on your debt - tell them that.
Did you include documentation with your letter? Always include anything that backs up your case. Do you have cancelled checks or bank statements that prove you made a disputed payment? Of course, never send the originals - make copies of all your documentation.
If your dispute letter was rejected by the credit bureau, be sure to correspond with the lender or organization that reported the negative item to the bureau. If you've ever contested a charge on your charge card, you know how they play this game. You ask the credit card company to delete a charge you think is wrong. The credit card company says they will suspend the charge while they investigate. They check with the merchant who recorded the charge, and - surprise! - the merchant says the charge was valid, and the credit card company re-instates it on your bill. Thanks for nothing. Well, you'll probably get a similar run-around when you contest items on your credit report. Try a different angles in your follow-up letter. You should try dealing with a different department in the lender organization to see if they are more sympathetic to your cause.
Persistence will pay off. If you deal with the credit bureaus and financial institutions in a professional, but firm way, you are more likely to be successful in your dispute. Remember, that although your dispute is with an organization, a person will be reading your letters. If you connect with them in a personal way, they are more likely to understand your position.
get your credit secrets bible now
Don't be surprised that it isn't easy to erase the bad news from your credit report. It seems that they make it hard, on purpose. But with a little perseverance, you can be successful.
First, check the dispute letters that you had originally submitted. Were you concise and accurate in stating your case? The credit bureaus and lenders get a ton of dispute letters every week. In order to make sure your letter is actually read and understood, keep it short and to the point. Do not include details that will only confuse the situation.
Don't try to impress or scare them by quoting the law. You may be tempted to include legal wording in your dispute letters, particularly if you feel that they have violated the law. But a personal letter will be much more effective. Maybe an exceptional circumstance, like an illness or divorce, forced you to default on your debt - tell them that.
Did you include documentation with your letter? Always include anything that backs up your case. Do you have cancelled checks or bank statements that prove you made a disputed payment? Of course, never send the originals - make copies of all your documentation.
If your dispute letter was rejected by the credit bureau, be sure to correspond with the lender or organization that reported the negative item to the bureau. If you've ever contested a charge on your charge card, you know how they play this game. You ask the credit card company to delete a charge you think is wrong. The credit card company says they will suspend the charge while they investigate. They check with the merchant who recorded the charge, and - surprise! - the merchant says the charge was valid, and the credit card company re-instates it on your bill. Thanks for nothing. Well, you'll probably get a similar run-around when you contest items on your credit report. Try a different angles in your follow-up letter. You should try dealing with a different department in the lender organization to see if they are more sympathetic to your cause.
Persistence will pay off. If you deal with the credit bureaus and financial institutions in a professional, but firm way, you are more likely to be successful in your dispute. Remember, that although your dispute is with an organization, a person will be reading your letters. If you connect with them in a personal way, they are more likely to understand your position.
get your credit secrets bible now
Tuesday, December 9, 2008
Three Ways A Simple Credit Repair Letter Can Help You
Having a credit problem is serious business, and fixing that problem should be done in a business-like manner. Picking up the phone and yelling at the lender's customer support representative is not going to help repair your credit; in fact, it may make it worse. However, writing a concise, professional letter may well do the job. A simple credit repair letter can help you in a variety of ways.
Reduce your debt by negotiating repayment plans with your lenders, in writing. Debt negotiation letters can settle your debts, and erase bad credit, for a fraction of what you currently owe. Your lenders will always want to recoup some of their losses, as opposed to having to write all of off your bad debt. A simple letter can be very powerful in reducing the amount of money you owe, and perhaps avoid bankruptcy for you.
A well-crafted letter can also stop collection agencies and attorney debt collectors from harassing you. It is your right to not be called in the middle of the night or while you are at work. These companies sometimes "buy" your debt from the original lender, for a percent of the value. Get these annoying parasites out of your life by putting it in writing.
Stop identity theft with a fraud alert letter. If you suspect that an ID thief is using your personal identifying information to open a new credit account for their personal gain, place an "initial fraud alert" on all three of your credit reports (TransUnion, EquiFax, and Experian). This can only be done if you feel your personal information has been compromised. The initial fraud alert letter requires that lending institutions call you at the phone number listed on your credit report to confirm any new transactions, effectively stopping any new ID theft, at least for the next 90 days.
Raise your credit score by removing inaccurate or negative information from your credit report. Write to the credit bureau that is distributing the bad information, and spell out exactly why the data should be deleted from your report. Perhaps you have paid off a loan that your report shows as outstanding. Always include any copies of proof you may have, such as cancelled checks showing timely payments. It never hurts to include the consequences that have resulted from the credit bureau including the inaccurate information as well.
Be sure to make a copy of all credit repair letters and any attachments for your own files. It is all good evidence that you are working to establish a good line of communication with your creditors.
The impact of your credit repair letters will not be instantaneous. But in a month or so you will likely find that your credit report will reflect the requested changes, that the identification theft has stopped, or that your lenders are negotiating in good faith with you in good faith to reduce your debt. Keep in mind that you are repairing not only your credit, but also your good name and reputation. The pen is mightier than the sword.
get your credit secrets bible now
Reduce your debt by negotiating repayment plans with your lenders, in writing. Debt negotiation letters can settle your debts, and erase bad credit, for a fraction of what you currently owe. Your lenders will always want to recoup some of their losses, as opposed to having to write all of off your bad debt. A simple letter can be very powerful in reducing the amount of money you owe, and perhaps avoid bankruptcy for you.
A well-crafted letter can also stop collection agencies and attorney debt collectors from harassing you. It is your right to not be called in the middle of the night or while you are at work. These companies sometimes "buy" your debt from the original lender, for a percent of the value. Get these annoying parasites out of your life by putting it in writing.
Stop identity theft with a fraud alert letter. If you suspect that an ID thief is using your personal identifying information to open a new credit account for their personal gain, place an "initial fraud alert" on all three of your credit reports (TransUnion, EquiFax, and Experian). This can only be done if you feel your personal information has been compromised. The initial fraud alert letter requires that lending institutions call you at the phone number listed on your credit report to confirm any new transactions, effectively stopping any new ID theft, at least for the next 90 days.
Raise your credit score by removing inaccurate or negative information from your credit report. Write to the credit bureau that is distributing the bad information, and spell out exactly why the data should be deleted from your report. Perhaps you have paid off a loan that your report shows as outstanding. Always include any copies of proof you may have, such as cancelled checks showing timely payments. It never hurts to include the consequences that have resulted from the credit bureau including the inaccurate information as well.
Be sure to make a copy of all credit repair letters and any attachments for your own files. It is all good evidence that you are working to establish a good line of communication with your creditors.
The impact of your credit repair letters will not be instantaneous. But in a month or so you will likely find that your credit report will reflect the requested changes, that the identification theft has stopped, or that your lenders are negotiating in good faith with you in good faith to reduce your debt. Keep in mind that you are repairing not only your credit, but also your good name and reputation. The pen is mightier than the sword.
get your credit secrets bible now
Monday, August 11, 2008
Three Signs That You Are In Need of Credit Repair
It is happening all around you. Your next-door-neighbor may have to file for bankruptcy protection. The family across the street is in danger of losing their home to foreclosure by the bank. Your brother-in-law can't get a decent interest rate on a car loan. But you certainly don't have any credit problems. Or do you In this article we will spell out three signs that you are in need of credit repair, and provide some solutions that work.
Sign #1 Your credit score. You've heard about the importance of credit scores. You knew that everything from the interest rates you pay to your insurance premiums are based on them. But you thought that your credit score was just fine. After all, it is a nice round number, 600.
That is not a good credit score, and is a sure sign that your credit is in need of repair. In fact, any score under 720 could use some improvement. Credit scores range from 300 to a perfect 850. The three major credit bureaus (Experian, Equifax, and TransUnion) collect information about you from the companies that gave you credit in the past, and then write up a report. Your credit score is derived from those reports. The higher your score, the less risk you pose to lenders and the more likely it is that you'll get their best available interest rates.
Sign #2 Negative items on your credit report. It's been over a year since you were late with a credit card payment. Certainly, your credit report has improved since then. Just to make sure, you get a copy of your credit report, and those old, late payments are still shown as negative items. Why
If you don't take action to clean up your credit report, those old negative items will linger for up to 18 months on your credit report. And each negative item will drag down your credit score.
Sign #3 Trouble getting a decent car loan. You've just gotten a new job that pays more than you've ever made before, but it will require a longer commute than your old car can handle. You're at the car dealership, ready to close on the new car you deserve (and think you can afford). You're sitting in that little room with the dealership finance guy, and he's handing you the pen to sign the new car loan. But wait, those payments are higher than they should be. The reason you are getting socked with a much higher interest rate because of your credit report. Now you're stuck. You need the new car to make it to your new job, so you sign the loan papers. Ouch!
These are all signs that you are in need of credit repair. A little time and effort spent on cleaning up your credit report will pay off big time. Depending on your abilities and the severity of your credit problems, you should be able to tackle the repair effort yourself. If not, there are reputable credit restoration companies who will work with you (for a fee).
Be alert for the signs that your credit is in need of repair, take action immediately, and enjoy the financial rewards of a higher credit rating.
click here to get your bible
Sign #1 Your credit score. You've heard about the importance of credit scores. You knew that everything from the interest rates you pay to your insurance premiums are based on them. But you thought that your credit score was just fine. After all, it is a nice round number, 600.
That is not a good credit score, and is a sure sign that your credit is in need of repair. In fact, any score under 720 could use some improvement. Credit scores range from 300 to a perfect 850. The three major credit bureaus (Experian, Equifax, and TransUnion) collect information about you from the companies that gave you credit in the past, and then write up a report. Your credit score is derived from those reports. The higher your score, the less risk you pose to lenders and the more likely it is that you'll get their best available interest rates.
Sign #2 Negative items on your credit report. It's been over a year since you were late with a credit card payment. Certainly, your credit report has improved since then. Just to make sure, you get a copy of your credit report, and those old, late payments are still shown as negative items. Why
If you don't take action to clean up your credit report, those old negative items will linger for up to 18 months on your credit report. And each negative item will drag down your credit score.
Sign #3 Trouble getting a decent car loan. You've just gotten a new job that pays more than you've ever made before, but it will require a longer commute than your old car can handle. You're at the car dealership, ready to close on the new car you deserve (and think you can afford). You're sitting in that little room with the dealership finance guy, and he's handing you the pen to sign the new car loan. But wait, those payments are higher than they should be. The reason you are getting socked with a much higher interest rate because of your credit report. Now you're stuck. You need the new car to make it to your new job, so you sign the loan papers. Ouch!
These are all signs that you are in need of credit repair. A little time and effort spent on cleaning up your credit report will pay off big time. Depending on your abilities and the severity of your credit problems, you should be able to tackle the repair effort yourself. If not, there are reputable credit restoration companies who will work with you (for a fee).
Be alert for the signs that your credit is in need of repair, take action immediately, and enjoy the financial rewards of a higher credit rating.
click here to get your bible
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