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.

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.

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.

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.

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.

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?

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.

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.

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.