A dispute can be filed with Equifax by creating a dispute letter and mailing it to them. In your letter you will need to include a reason as to why the listing is inaccurate.
You can write a dispute letter yourself or you can hire a service to write it on your behalf. You should be aware that a dispute letter must be sent to each credit bureau.
This means that simply disputing an item with Equifax will not remove the item from your Transunion or Experian credit report. Instead you will have to send each of the bureaus a dispute letter.
Free sample dispute letter
Reasons to dispute a listing are; item is out of date, information is wrong, not my account, account paid in full, and more. The Fair Credit Reporting Act says that you have the right to dispute any mark on your credit report.
In addition this act says the bureaus must remove a listing from your report if it can not be verified. This act is what the dispute process is based upon.
Upon receipt of your dispute letter the bureaus will investigate. During the investigation they will ask the creator of the listing to verify the account, the dates on the account, and the account balance.
If this item is not verified by the creator then the bureaus must remove it from your credit report. Often investigations will result in the removal of an item from your report. This is because many businesses are not willing to spend the resources to verify disputed debts.
However before the credit bureau will conduct an investigation your dispute must be a valid dispute. There is no way to tell if the bureaus will deem your letter valid or invalid.
It is common for bureaus to respond to a dispute letter with another letter that requests more information about the dispute. This is said to be a stall tactic the bureaus use to avoid conducing and investigation.
It only costs the bureaus money to conduct an investigation. There is no revenue in it for the bureaus, their customers are businesses.
I suggest a credit repair service if you have multiple listings you wish to dispute. However you can repair your credit yourself if you have minor damage, be patient and persistent.
Review of popular credit repair service Lexington Law
In sum you can remove bad credit items without waiting 7 years. To do this you must dispute the credit bureaus.
For more tips to remove bad credit items such as a charge off
Monday, November 17, 2008
Friday, November 14, 2008
Experian Dispute - Remove Bad Credit
To dispute Experian you must compose a dispute letter and mail it to them. Upon receipt of your letter they will investigate the disputed item.
However the first step is to request a copy of your credit report. This can be done for free from annual credit report. It is your right to have a free copy of your credit report from each credit bureau once a year.
Once you have received your credit report you need to identify what marks are incorrect. These are going to be the marks that you will dispute.
You can dispute these listings by writing a dispute letter and then mailing it to Experian credit bureau. When they receive your dispute letter they will decide if it is valid or invalid.
Free Sample Dispute Letter
If they find your letter invalid you will receive a letter from them asking for more details about the dispute. You should respond accordingly and provide them with the information.
However if they find your dispute valid they will investigate the mark. During an investigation they will contact the originator of the item and ask them to verify the account, the balance, and the dates on the account.
Frequently an investigation will result in the removal of a bad credit item. This happens because many businesses are not going to spend the time or money verifying a disputed debt.
A credit repair service can also be hired to remove negative credit from your report. With this option you only need to identify the marks you wish to dispute and the service will do the rest.
Review of Lexington Law popular credit repair service
The benefit of a service is they can use advanced dispute techniques such as; debt validation, escalated dispute information requests, and creditor direct intervention.
I suggest do it yourself credit repair if you have only minor damage on your report, however if you have multiple marks I suggest a credit repair service. I also suggest a service if you are having trouble submitting a valid dispute or you have had a mark verified that should be removed.
You are going to need to dispute a bad credit item with each credit bureau. This means you will have to send a separate letter disputing the same item with each bureau.
In sum negative items can be removed from your credit report. You do not have to live with the high cost of low credit.
However the first step is to request a copy of your credit report. This can be done for free from annual credit report. It is your right to have a free copy of your credit report from each credit bureau once a year.
Once you have received your credit report you need to identify what marks are incorrect. These are going to be the marks that you will dispute.
You can dispute these listings by writing a dispute letter and then mailing it to Experian credit bureau. When they receive your dispute letter they will decide if it is valid or invalid.
Free Sample Dispute Letter
If they find your letter invalid you will receive a letter from them asking for more details about the dispute. You should respond accordingly and provide them with the information.
However if they find your dispute valid they will investigate the mark. During an investigation they will contact the originator of the item and ask them to verify the account, the balance, and the dates on the account.
Frequently an investigation will result in the removal of a bad credit item. This happens because many businesses are not going to spend the time or money verifying a disputed debt.
A credit repair service can also be hired to remove negative credit from your report. With this option you only need to identify the marks you wish to dispute and the service will do the rest.
Review of Lexington Law popular credit repair service
The benefit of a service is they can use advanced dispute techniques such as; debt validation, escalated dispute information requests, and creditor direct intervention.
I suggest do it yourself credit repair if you have only minor damage on your report, however if you have multiple marks I suggest a credit repair service. I also suggest a service if you are having trouble submitting a valid dispute or you have had a mark verified that should be removed.
You are going to need to dispute a bad credit item with each credit bureau. This means you will have to send a separate letter disputing the same item with each bureau.
In sum negative items can be removed from your credit report. You do not have to live with the high cost of low credit.
Wednesday, November 12, 2008
Credit Dispute Letter - Remove Bad Credit
A dispute letter is an individuals' method of challenging a negative mark on their credit report. In this letter a reason for the dispute and what item you are disputing is required.
Common reasons for a dispute are; account is not mine, account paid in full, item is out of date and more. When the credit bureaus receive your dispute and deem it valid they will investigate the dispute.
During this investigation the collection agency or lender is contacted and the account is verified and the dates and amounts. If the account can not be verified then it will be removed from your credit report.
Frequently investigations result in bad credit marks being removed from your credit. This is often because businesses do not want to spend the extra money and time validating disputed debts.
For a free sample dispute letter
It is rumored that during an investigation public records are not checked. This means that there is a high rate of success in disputing judgments and foreclosures.
A credit repair service can also be hired to dispute bad credit marks on your behalf. This can be a tremendous benefit if you are disputing multiple marks.
It is common for a dispute letter to result in the bureaus sending you a letter requesting more information about the dispute. In addition each credit bureau needs to be disputed separately.
This means organizing your disputes can become a challenge on its own. Many services can also use advanced dispute techniques in case a bad credit item is verified. These techniques include; creditor direct intervention, escalated dispute information requests, and debt validation.
Frequently these services will have lawyers on their staff which will enable you to go to court if it is required. Also with a service you may be eligible to file a lawsuit against a collection agency for illegal debt collection practices.
Credit repair is your responsibility. Unfortunately it is very common for inaccurate information to be reported on your credit report. It is estimated that 1 in every 4 Americans have inaccurate items on their report.
In sum if you have unverifiable or inaccurate information on your credit report you should use a dispute letter to challenge it. You can remove bad credit without waiting 7 years.
To learn more about nco financial a common collection agency
Common reasons for a dispute are; account is not mine, account paid in full, item is out of date and more. When the credit bureaus receive your dispute and deem it valid they will investigate the dispute.
During this investigation the collection agency or lender is contacted and the account is verified and the dates and amounts. If the account can not be verified then it will be removed from your credit report.
Frequently investigations result in bad credit marks being removed from your credit. This is often because businesses do not want to spend the extra money and time validating disputed debts.
For a free sample dispute letter
It is rumored that during an investigation public records are not checked. This means that there is a high rate of success in disputing judgments and foreclosures.
A credit repair service can also be hired to dispute bad credit marks on your behalf. This can be a tremendous benefit if you are disputing multiple marks.
It is common for a dispute letter to result in the bureaus sending you a letter requesting more information about the dispute. In addition each credit bureau needs to be disputed separately.
This means organizing your disputes can become a challenge on its own. Many services can also use advanced dispute techniques in case a bad credit item is verified. These techniques include; creditor direct intervention, escalated dispute information requests, and debt validation.
Frequently these services will have lawyers on their staff which will enable you to go to court if it is required. Also with a service you may be eligible to file a lawsuit against a collection agency for illegal debt collection practices.
Credit repair is your responsibility. Unfortunately it is very common for inaccurate information to be reported on your credit report. It is estimated that 1 in every 4 Americans have inaccurate items on their report.
In sum if you have unverifiable or inaccurate information on your credit report you should use a dispute letter to challenge it. You can remove bad credit without waiting 7 years.
To learn more about nco financial a common collection agency
Thursday, October 23, 2008
How to Remove Judgements from Your Credit History
A judgment on your credit report means you have been sued for payment of a debt. It is a legal proceeding that will give the creditor extra time to try and collect on the debt.
A judgment gives the debt collector up to 20 years to collect on a debt. This is beyond the 7 year statue of limitations that applies to most debts. Often judgments are granted on unsecured debts.
It is also becoming common for debt collectors to renew judgments. This means after 20 years if they have still been unable to collect the debt, they can renew the judgment and have the authority to collect on the debt for another 20 years.
A judgment will drastically reduce your credit score. Be aware that paying a judgment will not remove it from your credit report.
If you pay a judgment it only changes the mark to a satisfied judgment. It is still a negative mark and will not help improve your credit score.
The most effective way or removing judgments is done by disputing the judgment. This means you are challenging the accuracy or validity of the judgment.
This is done directly with the credit bureaus. It is done by writing a credit repair letter to dispute the judgment.
If a judgment is not verified as accurate it must be deleted by the credit bureaus. Often when listings are disputed they are removed regardless of their accuracy.
The listing will be removed because it costs the debt collectors money to verify the accuracy of a listing. Frequently debt collectors don't want to spend the money to verify a listing.
However you will have trouble getting the credit bureaus to investigate the listing. This is because it costs the credit bureaus potential profits to investigate listings.
This is why some people have hired professional credit repair service to dispute negative listings on their behalf.
For more online credit repair tips or for a free credit repair letter visit us.
A judgment gives the debt collector up to 20 years to collect on a debt. This is beyond the 7 year statue of limitations that applies to most debts. Often judgments are granted on unsecured debts.
It is also becoming common for debt collectors to renew judgments. This means after 20 years if they have still been unable to collect the debt, they can renew the judgment and have the authority to collect on the debt for another 20 years.
A judgment will drastically reduce your credit score. Be aware that paying a judgment will not remove it from your credit report.
If you pay a judgment it only changes the mark to a satisfied judgment. It is still a negative mark and will not help improve your credit score.
The most effective way or removing judgments is done by disputing the judgment. This means you are challenging the accuracy or validity of the judgment.
This is done directly with the credit bureaus. It is done by writing a credit repair letter to dispute the judgment.
If a judgment is not verified as accurate it must be deleted by the credit bureaus. Often when listings are disputed they are removed regardless of their accuracy.
The listing will be removed because it costs the debt collectors money to verify the accuracy of a listing. Frequently debt collectors don't want to spend the money to verify a listing.
However you will have trouble getting the credit bureaus to investigate the listing. This is because it costs the credit bureaus potential profits to investigate listings.
This is why some people have hired professional credit repair service to dispute negative listings on their behalf.
For more online credit repair tips or for a free credit repair letter visit us.
Wednesday, October 22, 2008
How You Can Remove Midland Credit Management from Your Credit
Midland Credit Management is a collection agency and a subsidiary of Encore Capital Group. They collect on credit cards, automobiles, unsecured consumer debt, and telecom accounts.
Encore Capital Group is a huge company that is traded on NASDAQ. Midland Credit Management has locations in Phoenix, Minnesota, and San Diego.
They purchase debts from collection agencies and lenders. They say they try and work with the customer in order to set up a settlement plan.
However there are reports of them frequently trying to use arbitration. In other words they will try to get a judgment placed against you for the debt.
A judgment is a very severe mark that you should avoid if possible. If you have a mark from Midland Credit Management I suggest disputing this mark with the credit bureaus.
You can dispute this yourself or hire a professional credit repair service. A well written dispute letter must be made and mailed to the bureaus.
In this letter you simply give the specifics about the negative mark and the reason that it is incorrect. Then you place this letter in the mail.
If you only have one or two negative marks that you need to have removed then you should dispute these marks yourself. However if you have multiple marks then you should consider a professional firm to dispute them on your behalf.
A credit repair firm will draft the dispute letter for you. They will monitor and keep up with the stall tactics the credit bureaus often use.
Credit bureaus commonly respond to the dispute letter with one requesting more information. This is done in hopes of the individual getting frustrated and giving up on the dispute.
The bureaus must pay for an investigation. The money to pay for this comes straight out of their pocket.
The credit repair companies frequently get the bureaus to hold an investigation faster than an individual can. This is probably due to the companies having credit attorneys that are well versed in credit laws, and the bureaus being fearful of being sued. The bureaus must be compliant with the Fair Credit Reporting Act.
This act made it law that credit bureaus must investigate disputes and delete any listings that are unverifiable or inaccurate.
In sum, the law is on your side and you have every right to dispute the accuracy of any mark on your credit report. You do not have to keep paying the high cost of bad credit.
For a free credit repair letter or to learn about lexington law a professional credit repair service visit us.
Encore Capital Group is a huge company that is traded on NASDAQ. Midland Credit Management has locations in Phoenix, Minnesota, and San Diego.
They purchase debts from collection agencies and lenders. They say they try and work with the customer in order to set up a settlement plan.
However there are reports of them frequently trying to use arbitration. In other words they will try to get a judgment placed against you for the debt.
A judgment is a very severe mark that you should avoid if possible. If you have a mark from Midland Credit Management I suggest disputing this mark with the credit bureaus.
You can dispute this yourself or hire a professional credit repair service. A well written dispute letter must be made and mailed to the bureaus.
In this letter you simply give the specifics about the negative mark and the reason that it is incorrect. Then you place this letter in the mail.
If you only have one or two negative marks that you need to have removed then you should dispute these marks yourself. However if you have multiple marks then you should consider a professional firm to dispute them on your behalf.
A credit repair firm will draft the dispute letter for you. They will monitor and keep up with the stall tactics the credit bureaus often use.
Credit bureaus commonly respond to the dispute letter with one requesting more information. This is done in hopes of the individual getting frustrated and giving up on the dispute.
The bureaus must pay for an investigation. The money to pay for this comes straight out of their pocket.
The credit repair companies frequently get the bureaus to hold an investigation faster than an individual can. This is probably due to the companies having credit attorneys that are well versed in credit laws, and the bureaus being fearful of being sued. The bureaus must be compliant with the Fair Credit Reporting Act.
This act made it law that credit bureaus must investigate disputes and delete any listings that are unverifiable or inaccurate.
In sum, the law is on your side and you have every right to dispute the accuracy of any mark on your credit report. You do not have to keep paying the high cost of bad credit.
For a free credit repair letter or to learn about lexington law a professional credit repair service visit us.
Sunday, October 19, 2008
Charge Offs - Read Before You Pay
When you get a charge off on your credit report it will negatively impact your credit score. This comes about when an account becomes delinquent and no payment is made for 6 months.
An effective way of erasing a charge off from you credit history is to dispute the listing. This is accomplished by sending a credit repair letter to the credit bureaus.
In your dispute letter you should explain why the listing is incorrect. For example the account has never been paid late, it's not your account or information is wrong.
Our credit system is flawed and you are assumed guilty until you can prove otherwise. It is common for incorrect information to show on your credit history.
Congress passed the Fair Credit Reporting Act in response to complaints of inaccurate information being reported by the credit bureaus. This legislation simply says that if a listing can not be verified then the credit bureau must remove it from your credit report.
It is common for one charged off account to turn into numerous negative listings and a bad credit score. I will explain the process of what happens to an account once the lender reports it as a charge off.
The charged off debt will be sold to a collection agency by the lender. That collection agency will make efforts to recover payment. If they are unable to then the collection agency makes a new negative listing on your credit report.
The collection agency will then sell your account to another collection agency. The new agency will also try and collect and if unable they will report yet another new negative listing.
This process will continue through any number of collection agencies. It depends upon the size of the delinquent account. You can see how one account can ruin your credit score and turn into multiple negative listings.
If you get multiple negative listings your credit will be in bad shape. It will become extremely difficult to get approval for any new lines of credit.
This is good to know before you pay an outstanding bill because payment does not mean that the listings will be removed. Instead I would recommend disputing the charge off before you take any step to repay the debt.
To get a free sample dispute letter and more tips to credit repair visit us, or to read an e zine article about what is a charge off.
An effective way of erasing a charge off from you credit history is to dispute the listing. This is accomplished by sending a credit repair letter to the credit bureaus.
In your dispute letter you should explain why the listing is incorrect. For example the account has never been paid late, it's not your account or information is wrong.
Our credit system is flawed and you are assumed guilty until you can prove otherwise. It is common for incorrect information to show on your credit history.
Congress passed the Fair Credit Reporting Act in response to complaints of inaccurate information being reported by the credit bureaus. This legislation simply says that if a listing can not be verified then the credit bureau must remove it from your credit report.
It is common for one charged off account to turn into numerous negative listings and a bad credit score. I will explain the process of what happens to an account once the lender reports it as a charge off.
The charged off debt will be sold to a collection agency by the lender. That collection agency will make efforts to recover payment. If they are unable to then the collection agency makes a new negative listing on your credit report.
The collection agency will then sell your account to another collection agency. The new agency will also try and collect and if unable they will report yet another new negative listing.
This process will continue through any number of collection agencies. It depends upon the size of the delinquent account. You can see how one account can ruin your credit score and turn into multiple negative listings.
If you get multiple negative listings your credit will be in bad shape. It will become extremely difficult to get approval for any new lines of credit.
This is good to know before you pay an outstanding bill because payment does not mean that the listings will be removed. Instead I would recommend disputing the charge off before you take any step to repay the debt.
To get a free sample dispute letter and more tips to credit repair visit us, or to read an e zine article about what is a charge off.
Saturday, October 18, 2008
Remove a Charge Off
A charge off is a very detrimental mark for your credit score. Having this on your credit history will make getting approved for a new credit line very difficult.
When approval does happen you will be forced to pay exuberant interest rates or make a hefty down payment. This is how lenders penalize people when they are incapable of making their payments.
The system does not allow for unexpected events. Sometimes these events will force a good person to choose between repaying a debt and providing for their family.
Credit bureaus want you to think that when a charge off occurs you are stuck. That you will have to pay the penalties until the negative listing is naturally removed with time. This is false.
The FCRA or Fair Credit Reporting Act states that a credit bureau must remove a listing that is inaccurate of can not be verified. Lenders will rarely spend the time or money to verify an old debt.
Regardless of the veracity of the listing it is typically removed when an investigation occurs. However complications happen in the initial stage of requesting the investigation.
This happens because the credit bureaus only motive to conduct an investigation is to be compliant to the Fair Credit Reporting Act. The bureaus don't earn any extra money from conducting an investigation and instead spend money that would otherwise be profit.
Thus credit bureaus are very resistant to granting an investigation. They have a formula in place to discourage and frustrate an individual when they request an investigation. This is the common reason people will hire a professional credit repair firm.
For a free credit repair letter to dispute a negative mark on your credit report or to learn about lexington law a credit repair service or online credit repair visit us.
When approval does happen you will be forced to pay exuberant interest rates or make a hefty down payment. This is how lenders penalize people when they are incapable of making their payments.
The system does not allow for unexpected events. Sometimes these events will force a good person to choose between repaying a debt and providing for their family.
Credit bureaus want you to think that when a charge off occurs you are stuck. That you will have to pay the penalties until the negative listing is naturally removed with time. This is false.
The FCRA or Fair Credit Reporting Act states that a credit bureau must remove a listing that is inaccurate of can not be verified. Lenders will rarely spend the time or money to verify an old debt.
Regardless of the veracity of the listing it is typically removed when an investigation occurs. However complications happen in the initial stage of requesting the investigation.
This happens because the credit bureaus only motive to conduct an investigation is to be compliant to the Fair Credit Reporting Act. The bureaus don't earn any extra money from conducting an investigation and instead spend money that would otherwise be profit.
Thus credit bureaus are very resistant to granting an investigation. They have a formula in place to discourage and frustrate an individual when they request an investigation. This is the common reason people will hire a professional credit repair firm.
For a free credit repair letter to dispute a negative mark on your credit report or to learn about lexington law a credit repair service or online credit repair visit us.
Friday, October 17, 2008
Two Tips to Raise Your Credit Score
You can improve your credit score by having an open major credit card. On this credit card you should try and keep the monthly balance around 10% of your available credit line.
In other words if your limit is $1,000 then try to keep the balance around $100. This shows the credit bureaus two things:
1. Your credit is being used.
2. You have a good ratio of available credit to debt.
In other words you have available credit at your disposal. The credit bureaus weight this factor heavily when they calculate your score.
By showing you have credit that is not being used; your score will get a bump. This method is most effective with a revolving line of unsecured credit.
Another tip, if your credit is to low to be approved for an unsecured credit card. Then ask a friend or relative with good credit to add you as an authorized user to their credit card account.
This is commonly referred to as piggyback credit. There have been recent reports that the credit bureaus are no longer going to give any credit score benefits to an authorized user.
However the credit bureaus are such large bureaucracies that this new policy will not take effect immediately. It is estimated that authorized user's credit score will still get a bump for the next 6-8 years.
Make sure to use good judgment when choosing a friend or relative. The account will show both positive and any negative information that can be reported. So if the account became delinquent it could hurt your score.
For you to be added as an authorized user, the account holder needs to call the credit card issuer and request you to be added as an authorized user. This can all be accomplished over the phone.
You then will have a copy of the credit card with your name on it mailed to your house. I recommend returning the credit card to the account holder.
The accounts' details are then reported on the original account holders' credit and yours. This way you receive the benefits of on time payments and available credit.
This method of building credit is in the process of being discounted. However for the time being it is by far the easiest and cheapest method to building positive credit.
For more credit repair tips or for a free sample dispute letter to remove negative information on your credit report or to learn how to dispute equifax visit us.
In other words if your limit is $1,000 then try to keep the balance around $100. This shows the credit bureaus two things:
1. Your credit is being used.
2. You have a good ratio of available credit to debt.
In other words you have available credit at your disposal. The credit bureaus weight this factor heavily when they calculate your score.
By showing you have credit that is not being used; your score will get a bump. This method is most effective with a revolving line of unsecured credit.
Another tip, if your credit is to low to be approved for an unsecured credit card. Then ask a friend or relative with good credit to add you as an authorized user to their credit card account.
This is commonly referred to as piggyback credit. There have been recent reports that the credit bureaus are no longer going to give any credit score benefits to an authorized user.
However the credit bureaus are such large bureaucracies that this new policy will not take effect immediately. It is estimated that authorized user's credit score will still get a bump for the next 6-8 years.
Make sure to use good judgment when choosing a friend or relative. The account will show both positive and any negative information that can be reported. So if the account became delinquent it could hurt your score.
For you to be added as an authorized user, the account holder needs to call the credit card issuer and request you to be added as an authorized user. This can all be accomplished over the phone.
You then will have a copy of the credit card with your name on it mailed to your house. I recommend returning the credit card to the account holder.
The accounts' details are then reported on the original account holders' credit and yours. This way you receive the benefits of on time payments and available credit.
This method of building credit is in the process of being discounted. However for the time being it is by far the easiest and cheapest method to building positive credit.
For more credit repair tips or for a free sample dispute letter to remove negative information on your credit report or to learn how to dispute equifax visit us.
Saturday, October 4, 2008
You Can Remove NCO Financial From Your Credit History
NCO Financial is a collection agency. They work with financial services, healthcare, utilities, education and more.
They started doing business in 1926 and are both first and third party debt collectors.
They are headquartered in Horsham, Pennsylvania. They currently have over 140 operation facilities spread out over 9 countries.
There mission statement says they are customer oriented and committed to integrity, teamwork and quality.
NCO Financial participates in credit reporting. Another way of saying this is they can create a negative listing on your credit report and cause your score to be damaged.
There is hope; you can have this listing removed. There are two options to have a listing removed from your credit report.
1. Directly dispute the listing with the credit bureaus.
This is done yourself by sending a dispute letter to the credit bureaus or you can hire a credit repair firm to handle the dispute process on your behalf.
If you decide to dispute the listing yourself you must send a dispute letter to each credit bureau. The dispute letter says that you are disputing the listing because the information is wrong, you have never paid late, it is not your account, etcetera.
2. You can come to a settlement agreement with NCO Financial. However I would suggest disputing the listing first. If that does not work then consider making a settlement offer.
However before you pay you should negotiate a settlement offer. Often you do not have to pay the full amount. I would suggest offering 50% of the balance.
You should have NCO Financial agree in writing to remove the negative listing on your credit report as part of the settlement agreement. If you do not do this paying the debt will not help your credit score. The listing will remain it will just be changed to a paid collection.
You should know that NCO Financial may not be the only person that creates a negative listing on your credit report for this account. The original creditor probably has created a negative listing for this account also.
It is common for collection agencies to sell accounts that they are unsuccessful collecting on. Thus NCO may have sold your account to another collection agency that has created a negative listing on your credit report too.
If you have the same account reported more than once on your credit report then I would suggest consulting with a professional credit repair firm because making payment to one company will not remove all the negative listings from your credit report.
If the debt is legitimate and you decide to settle do not pay the full balance. Collection agencies buy delinquent accounts for pennies on the dollar. If you pay the full amount you will be giving the collection agency a big profit.
Be aware that NCO only has the authority to remove a negative listing that they have created. They will not be able to remove any other listings that have been created by other companies even if it is for the same debt.
Keep all communication with NCO in writing. Just in case there is a problem you have written proof of your settlement agreement.
In sum, dispute the listing first and if unsuccessful then make a settlement agreement. Put the agreement in writing and remember to have them remove the listing in exchange for your payment.
They started doing business in 1926 and are both first and third party debt collectors.
They are headquartered in Horsham, Pennsylvania. They currently have over 140 operation facilities spread out over 9 countries.
There mission statement says they are customer oriented and committed to integrity, teamwork and quality.
NCO Financial participates in credit reporting. Another way of saying this is they can create a negative listing on your credit report and cause your score to be damaged.
There is hope; you can have this listing removed. There are two options to have a listing removed from your credit report.
1. Directly dispute the listing with the credit bureaus.
This is done yourself by sending a dispute letter to the credit bureaus or you can hire a credit repair firm to handle the dispute process on your behalf.
If you decide to dispute the listing yourself you must send a dispute letter to each credit bureau. The dispute letter says that you are disputing the listing because the information is wrong, you have never paid late, it is not your account, etcetera.
2. You can come to a settlement agreement with NCO Financial. However I would suggest disputing the listing first. If that does not work then consider making a settlement offer.
However before you pay you should negotiate a settlement offer. Often you do not have to pay the full amount. I would suggest offering 50% of the balance.
You should have NCO Financial agree in writing to remove the negative listing on your credit report as part of the settlement agreement. If you do not do this paying the debt will not help your credit score. The listing will remain it will just be changed to a paid collection.
You should know that NCO Financial may not be the only person that creates a negative listing on your credit report for this account. The original creditor probably has created a negative listing for this account also.
It is common for collection agencies to sell accounts that they are unsuccessful collecting on. Thus NCO may have sold your account to another collection agency that has created a negative listing on your credit report too.
If you have the same account reported more than once on your credit report then I would suggest consulting with a professional credit repair firm because making payment to one company will not remove all the negative listings from your credit report.
If the debt is legitimate and you decide to settle do not pay the full balance. Collection agencies buy delinquent accounts for pennies on the dollar. If you pay the full amount you will be giving the collection agency a big profit.
Be aware that NCO only has the authority to remove a negative listing that they have created. They will not be able to remove any other listings that have been created by other companies even if it is for the same debt.
Keep all communication with NCO in writing. Just in case there is a problem you have written proof of your settlement agreement.
In sum, dispute the listing first and if unsuccessful then make a settlement agreement. Put the agreement in writing and remember to have them remove the listing in exchange for your payment.
Sunday, September 28, 2008
Easy Tips to Improve Your Credit Score
If you are in the process of repairing your credit report then you know how important your credit score is. This three digit number can determine your lifestyle more than by how much money you earn.
With a low credit score you may be getting turned away from jobs you are qualified for. You also are experiencing difficulty getting approval for car loans or credit cards. When you do receive approval it is with stomach churning interest rates.
If you know how the credit system works then you can use it to your advantage and increase your credit score. This will save you money that can be used for better purposes than paying high interest rates.
The credit bureaus use a mathematical equation to determine your credit score. The bureau puts your credit information into a computer and the computer spits out your credit score.
Your credit score is a way for lenders and employers to measure you. Lenders will often not look at any other factor other than your credit score when you apply for a credit line. You credit score determines how the credit world perceives you.
How do you use the credit system to your advantage? There are two factors that carry more weight than anything else in the credit system equation.
1. Remove negative accounts. Negative accounts on your credit report will do the most damage to your score and need to be removed.
2. Maintain an unsecured revolving line of credit. This is an easy technique that almost anyone can do.
The credit bureaus keep their equation confidential and do not release that information to the public. However upon review of thousands of credit files it has been discovered that having on open unsecured line of credit can be weighed as heavily as removing negative listings.
An unsecured credit line will increase your credit score because:
1. You are creating positive payment history with every month you pay your bill on time. Also credit bureaus like to see that this account has aged. Meaning it has been an open account for a while.
2. Helps your ratio of debt to available credit. This means the more credit you have that is not being used you score will be higher.
This credit line will carry more weight if it is unsecured such as a car loan or credit card. However if you are unable to get approval, then you should consider a secured credit card or a secured loan.
An open credit line will help you build credit but it is still very important to erase derogatory listings from your credit report. If you can not get an unsecured credit line and do not want a secured line of credit then remove the derogatory listings and reapply.
You can achieve a 700 credit score, no matter how bad your credit is today. Work on removing the negative listings and replacing those with positive listings.
To get a free credit repair letter to remove negative listings yourself or for more information about credit repair or to learn about lexington law a professional credit repair company visit us.
With a low credit score you may be getting turned away from jobs you are qualified for. You also are experiencing difficulty getting approval for car loans or credit cards. When you do receive approval it is with stomach churning interest rates.
If you know how the credit system works then you can use it to your advantage and increase your credit score. This will save you money that can be used for better purposes than paying high interest rates.
The credit bureaus use a mathematical equation to determine your credit score. The bureau puts your credit information into a computer and the computer spits out your credit score.
Your credit score is a way for lenders and employers to measure you. Lenders will often not look at any other factor other than your credit score when you apply for a credit line. You credit score determines how the credit world perceives you.
How do you use the credit system to your advantage? There are two factors that carry more weight than anything else in the credit system equation.
1. Remove negative accounts. Negative accounts on your credit report will do the most damage to your score and need to be removed.
2. Maintain an unsecured revolving line of credit. This is an easy technique that almost anyone can do.
The credit bureaus keep their equation confidential and do not release that information to the public. However upon review of thousands of credit files it has been discovered that having on open unsecured line of credit can be weighed as heavily as removing negative listings.
An unsecured credit line will increase your credit score because:
1. You are creating positive payment history with every month you pay your bill on time. Also credit bureaus like to see that this account has aged. Meaning it has been an open account for a while.
2. Helps your ratio of debt to available credit. This means the more credit you have that is not being used you score will be higher.
This credit line will carry more weight if it is unsecured such as a car loan or credit card. However if you are unable to get approval, then you should consider a secured credit card or a secured loan.
An open credit line will help you build credit but it is still very important to erase derogatory listings from your credit report. If you can not get an unsecured credit line and do not want a secured line of credit then remove the derogatory listings and reapply.
You can achieve a 700 credit score, no matter how bad your credit is today. Work on removing the negative listings and replacing those with positive listings.
To get a free credit repair letter to remove negative listings yourself or for more information about credit repair or to learn about lexington law a professional credit repair company visit us.
Thursday, September 18, 2008
Palisades Collection - Remove Them from Your Credit Report
Palisades Collections is a collection agency. They are a subsidiary of Asta Funding. They collect on unpaid phone bills from AT&T and other unsecured debt.
There are many reports from individuals that have been contacted regarding an AT&T account these individuals dispute the account ever existed. Palisades has also been accused of violating the Fair Debt Collection Practices Act a piece of legislation that was passed to protect the rights of individuals from debt collectors.
To get even a mailing address for Palisades you have to be very savvy. There is no official website for them and they outsource their incoming calls to a call center in India.
They reportedly have offices in New Jersey, Pennsylvania and are headquartered in Wisconsin. However even Asta Funding their parent company provides no link or address for contacting Palisades.
If any collection agency is contacting you the logical first step is to request validation of the debt. With Palisades Collection there are reports of people requesting validation of a debt and their request was just ignored.
Palisades seems to be able to work outside of the law without the threat of prosecution. This limits your options of dealing with them and getting an alleged debt resolved.
Instead of having communications with them, I recommend disputing the negative listing they have made. You dispute the listing with the credit bureaus by sending in a dispute letter. In this letter you must explain why the negative listing is inaccurate. Reasons include; the account is not yours, never paid late, account is paid in full, just to name a few.
There are allegations that Palisades has purchased individuals private information and then created fake accounts to try and collect on. There are multiple allegations of them engaging in this behavior.
You can also hire a professional credit repair firm that has attorneys working there to deal with Palisades Collection. This can be done relatively inexpensively and this will guarantee that your rights are protected from an unsavory collection agency.
I suggest using extreme caution if you communicate with them on your own behalf. The reason for this is that you do not want to admit guilt for a debt and any communication you have with them can be used in a court of law.
In sum, if you are being contacted by Palisades I suggest seeking professional help and not responding to Palisades. I also recommend saving any communications from them and if need be file a complaint with the FTC.
For contact information and more tips on how to remove Palisades Collection from your credit report or for information on lexington law a professional credit repair firm visit us. You can also get a free sample dispute letter by visiting us.
There are many reports from individuals that have been contacted regarding an AT&T account these individuals dispute the account ever existed. Palisades has also been accused of violating the Fair Debt Collection Practices Act a piece of legislation that was passed to protect the rights of individuals from debt collectors.
To get even a mailing address for Palisades you have to be very savvy. There is no official website for them and they outsource their incoming calls to a call center in India.
They reportedly have offices in New Jersey, Pennsylvania and are headquartered in Wisconsin. However even Asta Funding their parent company provides no link or address for contacting Palisades.
If any collection agency is contacting you the logical first step is to request validation of the debt. With Palisades Collection there are reports of people requesting validation of a debt and their request was just ignored.
Palisades seems to be able to work outside of the law without the threat of prosecution. This limits your options of dealing with them and getting an alleged debt resolved.
Instead of having communications with them, I recommend disputing the negative listing they have made. You dispute the listing with the credit bureaus by sending in a dispute letter. In this letter you must explain why the negative listing is inaccurate. Reasons include; the account is not yours, never paid late, account is paid in full, just to name a few.
There are allegations that Palisades has purchased individuals private information and then created fake accounts to try and collect on. There are multiple allegations of them engaging in this behavior.
You can also hire a professional credit repair firm that has attorneys working there to deal with Palisades Collection. This can be done relatively inexpensively and this will guarantee that your rights are protected from an unsavory collection agency.
I suggest using extreme caution if you communicate with them on your own behalf. The reason for this is that you do not want to admit guilt for a debt and any communication you have with them can be used in a court of law.
In sum, if you are being contacted by Palisades I suggest seeking professional help and not responding to Palisades. I also recommend saving any communications from them and if need be file a complaint with the FTC.
For contact information and more tips on how to remove Palisades Collection from your credit report or for information on lexington law a professional credit repair firm visit us. You can also get a free sample dispute letter by visiting us.
Wednesday, September 17, 2008
NCO Financial - Stop the Harassment
When someone is contacted by NCO it is about an outstanding debt. They are also referred to as NCO financial, NCO group or a variation of NCO. They have a past of breaking legislation with their collection methods.
NCO Financial is hired as a third party to collect unpaid debts for companies. They have a reputation for unethical practices and have been know to use harassment, threats and intimidation.
NCO was punished in 2004 for violating the Fair Credit Reporting Act. They were caught working the credit system in an attempt to keep a delinquent debt on the borrowers' credit report for longer than 7 years. They were forced to pay $1.5 million dollars to the FTC.
Collection agencies in general have a history of abusing debtors. They will call your home, place of work, friends and relatives all in an attempt to collect the debt. So in order to stop the calls, you must write the collection agency a letter. In this letter you simply tell the collection agency to stop contacting you regarding collection of the debt.
You should send this letter certified mail and save copies of all communication between you and the collection agency. These copies will be evidence if a lawsuit is necessary or to just file a complaint.
The collection agency will be able to notify you of how they plan on continuing the collection. Then according to the Fair Debt Collections Practices Act they agency can no longer contact you. This legislation was created in 1996 because congress needed to protect debtors from the collection agencies and their collection methods.
The Fair Debt Collections Practices Act says debt collectors can not misrepresent themselves or tell anyone else about your debt other than you and your attorney. Typically this piece of legislation is completely ignored and collection agencies frequently go unchecked.
The FDCPA was passed to protect people and unfortunately enforcement is lacking. Filling a law suit can be very frustrating and expensive. Many collection agencies are fly by night operations that have made it there business to hide assets from lawsuits.
To learn more about how to remove nco financial from your credit report or for a free sample dispute letter in order to dispute a negative listing on your credit report from nco financial click here.
NCO Financial is hired as a third party to collect unpaid debts for companies. They have a reputation for unethical practices and have been know to use harassment, threats and intimidation.
NCO was punished in 2004 for violating the Fair Credit Reporting Act. They were caught working the credit system in an attempt to keep a delinquent debt on the borrowers' credit report for longer than 7 years. They were forced to pay $1.5 million dollars to the FTC.
Collection agencies in general have a history of abusing debtors. They will call your home, place of work, friends and relatives all in an attempt to collect the debt. So in order to stop the calls, you must write the collection agency a letter. In this letter you simply tell the collection agency to stop contacting you regarding collection of the debt.
You should send this letter certified mail and save copies of all communication between you and the collection agency. These copies will be evidence if a lawsuit is necessary or to just file a complaint.
The collection agency will be able to notify you of how they plan on continuing the collection. Then according to the Fair Debt Collections Practices Act they agency can no longer contact you. This legislation was created in 1996 because congress needed to protect debtors from the collection agencies and their collection methods.
The Fair Debt Collections Practices Act says debt collectors can not misrepresent themselves or tell anyone else about your debt other than you and your attorney. Typically this piece of legislation is completely ignored and collection agencies frequently go unchecked.
The FDCPA was passed to protect people and unfortunately enforcement is lacking. Filling a law suit can be very frustrating and expensive. Many collection agencies are fly by night operations that have made it there business to hide assets from lawsuits.
To learn more about how to remove nco financial from your credit report or for a free sample dispute letter in order to dispute a negative listing on your credit report from nco financial click here.
Tuesday, September 16, 2008
Credit Score Information - 5 Factors The Bureaus Look At
Your credit score can force you to pay thousands of dollars or save you thousands of dollars a year. It is a three digit number that has a huge influence on your life.
The formula for calculating your credit score is a mathematical equation. This equation is not released to the public out of fear that people will use the information to make sure they have a good credit score.
You would assume the credit bureaus would want people to have a good credit score. However the credit bureaus customers are the lenders. It is in the lenders interest for the borrower to have damaged credit. This way they can charge higher interest rates and earn a bigger profit.
Here are the five factors that the credit bureaus look at when determining your score. Included is the approximate value each factor carries with the equation.
1. Payment History (40%)
This is very important. On your credit report it reflects your credit limit, credit balance, minimum payment and payments received.
If your credit card is constantly maxed out, then your score will be lower. However if you can make hefty payments on your balance this can help your score.
This is where negative marks are taken into account. You can remove negative marks by disputing the mark with the credit bureau or settling the debt.
I would recommend first disputing the negative item. Then if this is unsuccessful make a settlement agreement with the company that created the negative item. In this agreement you should have the company agree to remove the item from your report in exchange for payment. I recommend getting this agreement in writing.
2. Ratio of Credit to Debt (30%)
This means are all your credit cards at their credit limit? How much credit do you have that is not being used?
Your score can receive a bump if you can show the bureaus that you have available credit. The best method of doing this is by keeping your credit card balance around 10% of the limit. This will help because it shows the bureaus that you use your credit and that it is used responsibly.
3. Pursuit of New Credit Lines (10%)
How frequently is your credit checked? If it appears that your credit is being checked constantly then your score will be negatively impacted.
It is reflected in your credit report every time someone checks your report. So if you are buying a new car every six months or switching your phone plans it will not help.
Avoid having your credit run many times. There are people that are constantly trying to make purchases with their credit and for those there credit is lowered because of the credit constantly being checked.
4. Credit Experience (10%)
This is not really something you can control or should worry about. It reflects what type of purchases you have made.
This means what have you used your credit to buy. Do you have a mortgage, a car loan, credit cards, and etcetera? They say the more diverse it is the better, however it does not carry much weight in the equation.
5. Length of Credit (10%)
How long have you been using your credit? Did you just get your first credit card?
Do not worry about this factor. If you are new to the world of credit you can still have a great score.
In sum, only worry about the first two factors listed. However for your own knowledge the other three are looked at when your score is calculated.
If you take care of the first two factors then your score will be high. With a high score you can take advantage of rewards, automatic approval and save thousands with low interest rates.
To get a free sample dispute letter to remove negative marks or to learn about lexington law a professional credit repair service that we recommend visit us.
The formula for calculating your credit score is a mathematical equation. This equation is not released to the public out of fear that people will use the information to make sure they have a good credit score.
You would assume the credit bureaus would want people to have a good credit score. However the credit bureaus customers are the lenders. It is in the lenders interest for the borrower to have damaged credit. This way they can charge higher interest rates and earn a bigger profit.
Here are the five factors that the credit bureaus look at when determining your score. Included is the approximate value each factor carries with the equation.
1. Payment History (40%)
This is very important. On your credit report it reflects your credit limit, credit balance, minimum payment and payments received.
If your credit card is constantly maxed out, then your score will be lower. However if you can make hefty payments on your balance this can help your score.
This is where negative marks are taken into account. You can remove negative marks by disputing the mark with the credit bureau or settling the debt.
I would recommend first disputing the negative item. Then if this is unsuccessful make a settlement agreement with the company that created the negative item. In this agreement you should have the company agree to remove the item from your report in exchange for payment. I recommend getting this agreement in writing.
2. Ratio of Credit to Debt (30%)
This means are all your credit cards at their credit limit? How much credit do you have that is not being used?
Your score can receive a bump if you can show the bureaus that you have available credit. The best method of doing this is by keeping your credit card balance around 10% of the limit. This will help because it shows the bureaus that you use your credit and that it is used responsibly.
3. Pursuit of New Credit Lines (10%)
How frequently is your credit checked? If it appears that your credit is being checked constantly then your score will be negatively impacted.
It is reflected in your credit report every time someone checks your report. So if you are buying a new car every six months or switching your phone plans it will not help.
Avoid having your credit run many times. There are people that are constantly trying to make purchases with their credit and for those there credit is lowered because of the credit constantly being checked.
4. Credit Experience (10%)
This is not really something you can control or should worry about. It reflects what type of purchases you have made.
This means what have you used your credit to buy. Do you have a mortgage, a car loan, credit cards, and etcetera? They say the more diverse it is the better, however it does not carry much weight in the equation.
5. Length of Credit (10%)
How long have you been using your credit? Did you just get your first credit card?
Do not worry about this factor. If you are new to the world of credit you can still have a great score.
In sum, only worry about the first two factors listed. However for your own knowledge the other three are looked at when your score is calculated.
If you take care of the first two factors then your score will be high. With a high score you can take advantage of rewards, automatic approval and save thousands with low interest rates.
To get a free sample dispute letter to remove negative marks or to learn about lexington law a professional credit repair service that we recommend visit us.
Wednesday, September 10, 2008
Remove LVNV Funding From Your Credit Report
LVNV Funding is a purchaser of debt. They purchase debt both domestically and internationally.
They purchase debt from finance companies, banks and other collection agencies. Then outsource the actual collections of an account to a number of agencies primarily Resurgent Capital Services.
Resurgent will do the actual collection of an account for LVNV Funding. However Resurgent also will outsource some of their collection work to other agencies.
Accounts collected upon are often credit cards and other forms of unsecured debt. If LVNV is contacting you it is regarding a delinquent debt.
LVNV has the authority to create a negative mark on your credit report. They also have the authority to sell your debt to another collection agency if they are unable to recover payment.
So if you have had a credit card that was charged off, it could be multiple negative listings. You could have one negative mark from the credit card issuer, another negative mark from LVNV Funding and another negative mark if they sold your account to another collection agency.
This is why it is important to learn what is really shown on your credit report. You should know that just paying a bill from LVNV or any collection agency does not mean that they have to remove a negative mark from your credit report. So you can pay the bill and receive no benefit to your credit score.
LVNV will not be able to delete any other negative mark regarding the delinquent debt that they did not create. In other words they will not be able to remove a mark created by the lender. I suggest getting in writing that the negative mark will be removed in exchange for your payment.
If you have a negative listing from LVNV and want to remove it, the most effective method is to dispute the credit bureaus directly. This is done with a credit repair letter, in which you state why the listing is inaccurate.
Then the credit bureaus will conduct an investigation into the mark. However you should expect some resistance from the credit bureaus because it only costs them money to investigate disputes. So you may have to send your letter a few times.
The other option is to hire a credit repair service. They will perform the dispute process for you with the credit bureaus. If you only have one or two negative marks on your credit report then I suggest do it yourself credit repair. If you have many negative listing then consider a credit repair firm.
They purchase debt from finance companies, banks and other collection agencies. Then outsource the actual collections of an account to a number of agencies primarily Resurgent Capital Services.
Resurgent will do the actual collection of an account for LVNV Funding. However Resurgent also will outsource some of their collection work to other agencies.
Accounts collected upon are often credit cards and other forms of unsecured debt. If LVNV is contacting you it is regarding a delinquent debt.
LVNV has the authority to create a negative mark on your credit report. They also have the authority to sell your debt to another collection agency if they are unable to recover payment.
So if you have had a credit card that was charged off, it could be multiple negative listings. You could have one negative mark from the credit card issuer, another negative mark from LVNV Funding and another negative mark if they sold your account to another collection agency.
This is why it is important to learn what is really shown on your credit report. You should know that just paying a bill from LVNV or any collection agency does not mean that they have to remove a negative mark from your credit report. So you can pay the bill and receive no benefit to your credit score.
LVNV will not be able to delete any other negative mark regarding the delinquent debt that they did not create. In other words they will not be able to remove a mark created by the lender. I suggest getting in writing that the negative mark will be removed in exchange for your payment.
If you have a negative listing from LVNV and want to remove it, the most effective method is to dispute the credit bureaus directly. This is done with a credit repair letter, in which you state why the listing is inaccurate.
Then the credit bureaus will conduct an investigation into the mark. However you should expect some resistance from the credit bureaus because it only costs them money to investigate disputes. So you may have to send your letter a few times.
The other option is to hire a credit repair service. They will perform the dispute process for you with the credit bureaus. If you only have one or two negative marks on your credit report then I suggest do it yourself credit repair. If you have many negative listing then consider a credit repair firm.
Friday, September 5, 2008
Credit Bureau Reporting - Learn the Facts
A common concern for people is "how long will a negative mark stay on my credit report?" The answer is a maximum of seven years. A bankruptcy or judgment can remain for 10 years depending upon the statute of limitations in your state.
Most people feel like this is an undeserved prison sentence they have been given. During this time they can not move into a house or purchase a new car at a reasonable interest rate.
Why seven years?
Should a single slip-up deserve a seven year punishment? Should you have to live with a bad credit report for being out of work for a few months, even when we caught up on our bills soon after?
Is there something magical or statistically relevant about seven years that will make somebody all of a sudden credit worthy again? Did financial experts perform complicated tests and discover that a person needs seven years for credit rehabilitation?
Of course not, there is no good reason whatsoever for the seven year reporting law. It is a completely arbitrary time limit.
The Fair Credit Reporting Act was passed by congress in 1970. This piece of legislation established the reporting time limit. Before the Fair Credit Reporting Act a negative notation stayed on your credit report forever.
Congress placed this time limit on the credit bureaus. Do not be mistaken and believe that a negative notation must remain on your credit report for seven years. That is the maximum not the minimum.
Congress made it illegal for credit bureaus to report a bad credit mark for longer than seven years. Frequently people have successfully had a negative mark removed long before the seven year time limit.
Creditors and collection agencies are not required to report a listing. This is completely voluntary on behalf of the creditors and collection agencies. Furthermore creditors and collection agencies have often removed negative marks before the seven year limit.
Creditors and collection agencies usually just need a little encouragement from a compelling dispute letter or a good credit repair attorney. Plus, the credit bureaus perform credit repair on your report at the seven year mark.
In a utopian society there would be no time limits on credit reporting. Instead, marks would remain as long as they truly reflected the applicant. Information found on a credit report would only provide accurate marks about the applicants' credit worthiness. Instead of being an excuse for a creditor to give you unreasonable interest rate or down payment.
The point is since we don't live in that world, why should we wait to repair our credit? Why shouldn't we take steps today to erase questionable and misleading information from our credit report? This way we don't have to pay the high cost of bad credit longer than we have to?
Most people feel like this is an undeserved prison sentence they have been given. During this time they can not move into a house or purchase a new car at a reasonable interest rate.
Why seven years?
Should a single slip-up deserve a seven year punishment? Should you have to live with a bad credit report for being out of work for a few months, even when we caught up on our bills soon after?
Is there something magical or statistically relevant about seven years that will make somebody all of a sudden credit worthy again? Did financial experts perform complicated tests and discover that a person needs seven years for credit rehabilitation?
Of course not, there is no good reason whatsoever for the seven year reporting law. It is a completely arbitrary time limit.
The Fair Credit Reporting Act was passed by congress in 1970. This piece of legislation established the reporting time limit. Before the Fair Credit Reporting Act a negative notation stayed on your credit report forever.
Congress placed this time limit on the credit bureaus. Do not be mistaken and believe that a negative notation must remain on your credit report for seven years. That is the maximum not the minimum.
Congress made it illegal for credit bureaus to report a bad credit mark for longer than seven years. Frequently people have successfully had a negative mark removed long before the seven year time limit.
Creditors and collection agencies are not required to report a listing. This is completely voluntary on behalf of the creditors and collection agencies. Furthermore creditors and collection agencies have often removed negative marks before the seven year limit.
Creditors and collection agencies usually just need a little encouragement from a compelling dispute letter or a good credit repair attorney. Plus, the credit bureaus perform credit repair on your report at the seven year mark.
In a utopian society there would be no time limits on credit reporting. Instead, marks would remain as long as they truly reflected the applicant. Information found on a credit report would only provide accurate marks about the applicants' credit worthiness. Instead of being an excuse for a creditor to give you unreasonable interest rate or down payment.
The point is since we don't live in that world, why should we wait to repair our credit? Why shouldn't we take steps today to erase questionable and misleading information from our credit report? This way we don't have to pay the high cost of bad credit longer than we have to?
Thursday, September 4, 2008
Disputing Credit Report - Avoid this Common Mistake
If you have ever tried to dispute items on your credit report, you may have received a response from the credit bureaus stating they performed their "investigation." The bureaus may also tell you that they "verified" whatever item you disputed. This means that negative item will remain on your credit report.
The Fair Credit Reporting Act (FCRA) allows you to attach a 100-word essay to your credit report. This is the opportunity to explain the negative information and argue that you deserve new credit.
It may be difficult to resist the urge to proclaim your innocence by way of a consumer statement. You may feel the need to explain that the bad credit simply was not your fault or beyond your control.
Be cautious about adding a consumer statement to your credit file.
It may look like the credit bureaus are doing you a favor by adding your consumer statement. However, it is really just another technique the credit bureaus use against you.
People often send in statements like this: "I fell behind on my credit card bills, but I have since caught up. My boss laid me off from my job of 20 years. Even though I could not pay my bills, it was only a temporary situation and now I am current."
The unexpected loss of employment may sound like a reasonable explanation to be late once or twice on a credit card bill. Plus, I would give that person credit for catching up on her bills and staying current since the bad financial spell.
Credit bureaus really could care less that your inability to pay your bills was due to no fault of your own. They see things in black and white. You either paid your bills on time (according to the creditor) or you did not pay your bills on time.
Instead, the credit bureaus see somebody who isn't smart enough to have an emergency fund to cover basic minimum payments should something go wrong financially.
The 100-word statement also has additional hidden dangers. For instance, adding such a statement confirms your guilt. It is direct proof that you were late on those payments. Moreover, you put yourself on perilous footing should you decide to hire a credit correction law firm in the future.
The credit bureaus will ignore any future disputes on your behalf because you have already admitted guilt. There is no reason for them to conduct an investigation. Finally, you have put yourself into a category of consumers that potential creditors avoid. Any potential creditor may avoid giving you credit out of fear that you will likewise default on payment should you run into a rough financial patch in the future.
In today's digital world most applications are reviewed electronically. Thus, such a statement only serves as another way for the credit bureaus to ignore your credit report dispute.
In sum, ignore the temptation to tell your side of the story. Resist the urge to "justify" your being late on that credit card bill or car payment. Steer clear of adding the deadly 100-word consumer statement.
The Fair Credit Reporting Act (FCRA) allows you to attach a 100-word essay to your credit report. This is the opportunity to explain the negative information and argue that you deserve new credit.
It may be difficult to resist the urge to proclaim your innocence by way of a consumer statement. You may feel the need to explain that the bad credit simply was not your fault or beyond your control.
Be cautious about adding a consumer statement to your credit file.
It may look like the credit bureaus are doing you a favor by adding your consumer statement. However, it is really just another technique the credit bureaus use against you.
People often send in statements like this: "I fell behind on my credit card bills, but I have since caught up. My boss laid me off from my job of 20 years. Even though I could not pay my bills, it was only a temporary situation and now I am current."
The unexpected loss of employment may sound like a reasonable explanation to be late once or twice on a credit card bill. Plus, I would give that person credit for catching up on her bills and staying current since the bad financial spell.
Credit bureaus really could care less that your inability to pay your bills was due to no fault of your own. They see things in black and white. You either paid your bills on time (according to the creditor) or you did not pay your bills on time.
Instead, the credit bureaus see somebody who isn't smart enough to have an emergency fund to cover basic minimum payments should something go wrong financially.
The 100-word statement also has additional hidden dangers. For instance, adding such a statement confirms your guilt. It is direct proof that you were late on those payments. Moreover, you put yourself on perilous footing should you decide to hire a credit correction law firm in the future.
The credit bureaus will ignore any future disputes on your behalf because you have already admitted guilt. There is no reason for them to conduct an investigation. Finally, you have put yourself into a category of consumers that potential creditors avoid. Any potential creditor may avoid giving you credit out of fear that you will likewise default on payment should you run into a rough financial patch in the future.
In today's digital world most applications are reviewed electronically. Thus, such a statement only serves as another way for the credit bureaus to ignore your credit report dispute.
In sum, ignore the temptation to tell your side of the story. Resist the urge to "justify" your being late on that credit card bill or car payment. Steer clear of adding the deadly 100-word consumer statement.
Wednesday, September 3, 2008
Negative Listings and How You Can Remove Them
Credit correction is not accomplished overnight and so the order in which you dispute items is very important (especially if you are on a deadline to raise your credit score).
Negative credit listings are not created equal. Some items, such as late payments from a few years ago, usually have a minimal impact on your credit score. Other items like recent judgments or collections can be cold-blooded credit killers.
Ordered below is the list of negative items as they correspond to their severity.
A judgment or public record (including tax liens) are the worst item. This is because they can stay on your file for ten years.
Any credit cards or other debts that were discharged in bankruptcy are listed as "included in bankruptcy. These listings are just as severe as the bankruptcy listing itself.
Collection items are very severely damaging. Try to negotiate with the agency for a complete deletion. You do not want to have a paid collection, or settled collection on your credit file.
Banks may not extend you credit for a new home or car if you have a repossession or foreclosure on your report. Try to remove repossessions and foreclosures as they fall into the very severe credit listing category.
Charge Offs, especially recent charge offs are indications of a very severe credit risk. A charge off can often lead to multiple negative credit listings. The original creditor will list the "charge off" as well as the subsequent collection agencies that purchase the debt.
A recent late payment is especially bad for those people with previously good credit. It can instantly lower a credit score that you have spent years to establish. The scoring formula believes that a late payment may be a sign of impending financial meltdown.
A 30, 60, 90, or 120 late payment is considered moderately severe. The later the payment, the tougher it is to remove from your report. However, one or two late payments can often be negotiated away with the creditor.
The credit scoring formula is biased more towards recent late payments. Older late payments should be given a low priority in your dispute process.
Do not lose any sleep if the credit bureaus are listing old personal information. It has no impact on your credit score.
In order to quickly clean up your credit report, you must challenge the most severe items first. It does no good to focus your time and effort on insignificant items like your employer or address.
Negative credit listings are not created equal. Some items, such as late payments from a few years ago, usually have a minimal impact on your credit score. Other items like recent judgments or collections can be cold-blooded credit killers.
Ordered below is the list of negative items as they correspond to their severity.
A judgment or public record (including tax liens) are the worst item. This is because they can stay on your file for ten years.
Any credit cards or other debts that were discharged in bankruptcy are listed as "included in bankruptcy. These listings are just as severe as the bankruptcy listing itself.
Collection items are very severely damaging. Try to negotiate with the agency for a complete deletion. You do not want to have a paid collection, or settled collection on your credit file.
Banks may not extend you credit for a new home or car if you have a repossession or foreclosure on your report. Try to remove repossessions and foreclosures as they fall into the very severe credit listing category.
Charge Offs, especially recent charge offs are indications of a very severe credit risk. A charge off can often lead to multiple negative credit listings. The original creditor will list the "charge off" as well as the subsequent collection agencies that purchase the debt.
A recent late payment is especially bad for those people with previously good credit. It can instantly lower a credit score that you have spent years to establish. The scoring formula believes that a late payment may be a sign of impending financial meltdown.
A 30, 60, 90, or 120 late payment is considered moderately severe. The later the payment, the tougher it is to remove from your report. However, one or two late payments can often be negotiated away with the creditor.
The credit scoring formula is biased more towards recent late payments. Older late payments should be given a low priority in your dispute process.
Do not lose any sleep if the credit bureaus are listing old personal information. It has no impact on your credit score.
In order to quickly clean up your credit report, you must challenge the most severe items first. It does no good to focus your time and effort on insignificant items like your employer or address.
Tuesday, September 2, 2008
Credit Repair Companies - What Can They Really Do
A lot of credit repair companies say they can fix any credit report. All the person has to do is hire the company and their credit problems are fixed. Is this true?
Unfortunately no, it's not. There are fraudulent credit repair companies that prey on people with bad credit. It is said that fraudulent companies have taken over 50 million dollars from the consumers.
This is done because when your credit is bad you are in a vulnerable position. You can pay high fees and interest or you fix your credit history.
Can results be guaranteed? No and when a potential credit repair company makes a guarantee this is a big red flag indicating that company to be fraudulent. I would not recommend hiring any company that makes any guarantees.
However there are credit repair companies that can be trusted. They will fight to repair your credit and are typically more effective than an individual. This is because they are familiar with the credit bureaus and how the bureaus try to avoid conducting investigations into disputed listings.
When looking for a credit repair company, look for warranties or refunds if results don't occur instead of guarantees. Also do your homework and see what is being said about the potential company by other people.
The credit bureaus use stall tactics to avoid investigating disputes in hopes of the individual giving up on the process. They have found this to be more cost effective than to grant investigations. Furthermore the bureaus function is to give a value on the likelihood of repayment based on past behavior.
If your fed up paying high interest for a mistake you made in the past, then you should repair your credit. Good credit repair companies can make the credit bureaus investigate disputes on your behalf. Lexington Law firm is an established and trusted credit repair company with thousands of satisfied customers.
Unfortunately no, it's not. There are fraudulent credit repair companies that prey on people with bad credit. It is said that fraudulent companies have taken over 50 million dollars from the consumers.
This is done because when your credit is bad you are in a vulnerable position. You can pay high fees and interest or you fix your credit history.
Can results be guaranteed? No and when a potential credit repair company makes a guarantee this is a big red flag indicating that company to be fraudulent. I would not recommend hiring any company that makes any guarantees.
However there are credit repair companies that can be trusted. They will fight to repair your credit and are typically more effective than an individual. This is because they are familiar with the credit bureaus and how the bureaus try to avoid conducting investigations into disputed listings.
When looking for a credit repair company, look for warranties or refunds if results don't occur instead of guarantees. Also do your homework and see what is being said about the potential company by other people.
The credit bureaus use stall tactics to avoid investigating disputes in hopes of the individual giving up on the process. They have found this to be more cost effective than to grant investigations. Furthermore the bureaus function is to give a value on the likelihood of repayment based on past behavior.
If your fed up paying high interest for a mistake you made in the past, then you should repair your credit. Good credit repair companies can make the credit bureaus investigate disputes on your behalf. Lexington Law firm is an established and trusted credit repair company with thousands of satisfied customers.
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