Tuesday, September 26, 2006
Credit Report & Repair Scams
Newspapers, radio, TV and the Internet are filled with advertisements that offer for a fee to erase accurate negative information in your credit file. The credit repair scam artists who run these ads can't deliver. Only time, a deliberate effort, and a plan to repay your bills will improve your credit history record. This section is designed to help you understand credit reports and credit repair scams.
Credit Reports
Does your credit report accurately represent you? A recent study conducted by the Public Interest Research Group (PIRG) found over 70% of credit reports contain errors. Among the principal findings of the report were the following:
*
Twenty-nine percent (29%) of the credit reports contained serious errors that could result in the denial of credit."
*
"Serious" errors included false delinquencies, public records or judgments that belonged to a stranger, or credit accounts that did not belong to the consumer;
Seventy percent (70%) of the credit reports contained mistakes or errors of some kind, also including the following:
*
Forty-one percent (41%) of the credit reports contained incorrect personal demographic identifying information;
*
Twenty percent (20%) of the credit reports were missing major credit cards, loans, mortgages, or other accounts that are critical to demonstrating consumer credit worthiness.
Click here for your free debt consolidation quote now!
One of the first steps to credit repair, is understanding credit reports. When applying for mortgages, home loans and refinances, one of the most important factors in determining whether or not you will be approved is your credit. This is true for other important factors as well, such as obtaining lower interest rate auto loans and credit cards. Good credit can open many doors.
If you have had credit issues in the past, or are currently in a situation that will affect your credit, be prepared to address these issues upfront.
The mortgage industry has its own language when it comes to your credit report. Mortgage lenders get their name from the grading system they use. Items that determine your credit rating (A+ to D-) are payment history, amount of debt payments, bankruptcies, equity positions, and credit scores. Credit scores are also known as "FICO" scores, and are used by the mortgage industry to determine credit risk. The higher the credit score, the better the credit risks.
FICO stands for Fair Isaac Company, the company that created the original scoring system. Each credit bureau has its own unique system that allows them to offer a score based solely on the contents of the credit bureau's data about an individual. A numerical score at one bureau is the equivalent of the same numerical score of another. For example, a score of 700 from Experian indicates the same creditworthiness as a score of 700 from Trans Union or Equifax. However, the calculations used to determine these scores are different for each bureau.
FICO scores range from 375 to 900 points. A score of 650 or above indicates a very good credit history. However, lenders do not necessarily give the same value to a particular credit score, and they do not necessarily use credit scoring!
FICO scoring places a value on the types of accounts you hold, as well as your credit history. The formula that determines your scores, however, is not disclosed to the consumer.
The 5 most important factors to determining your credit score are:
*
Your payment history
*
The amount of outstanding debt you have compared to your credit limit
*
Your credit history
*
The types of credit you use
*
Negative information
Remember, FICO scores range from 375 to 900 points. A score of 650 or above indicates a very good credit history.
free debt consolidation quote!
Credit Repair Scams
You've seen it in newspapers, maybe even heard it on the radio or television -- Erase accurate negative information in your credit file! -- The credit repair scam artists who run these ads can't deliver. Only time, a deliberate effort, and a plan to repay your bills will improve your credit record. This section is designed to help you understand the two top credit repair scams that are circulating newspapers, television, magazines and radio.
Credit Repair Scam #1 - File Segregation
If you filed bankruptcy, you may be the target of a credit repair scam called "file segregation." In this scam, you are promised a chance to hide unfavorable credit information by establishing a new credit identity. That may sound like a good idea but, file segregation is illegal. If you use it, you could face fines or even a prison sentence.
Credit Repair Scam #2 - New Credit Identity
If you have filed for bankruptcy, you may receive a letter from a credit repair company warning you about the inability to obtain credit cards, personal loans, or any other types of credit for 10 years. For a fee, the company promises to help you hide your bankruptcy and establish a new credit identity to use when you apply for credit. These companies also make pitches in classified ads, radio, TV, and the Internet.
When signing up for the service you will be required to pay a fee and may be directed to apply for an Employer Identification Number, commonly referred to as an EIN, from the Internal Revenue Service (IRS). Typically, an EIN is quite similar to a social security number and is used by businesses to report financial information to the IRS and the Social Security Administration.
After you receive your EIN, the credit repair service will tell you to use it in place of your social security number when you apply for credit, inform you to use a new mailing address and obtain additional credit references.
That may sound like a good idea but, using false information is illegal and considered fraud. If you use it, you could face fines or even jail time.
Credit Repair Company's And False Claims
Credit Repair False Claim #1: You will not be able to get credit for 10 years.
Each creditor has its own criteria for granting credit. While one may reject your application because of bankruptcy, another may grant you credit. And, given a new reliable payment record, your chances of establishing additional credit could probably increase as time passes.
debt consolidation
Credit Repair False Claim #2: The company or "file segregation" program is affiliated with the federal government.
The federal government does not support or work with companies that offer such programs.
Credit Repair False Claim #3: The "file segregation" program is legal.
It is a federal crime to make any false statements on a loan or credit application. It is a federal crime to misrepresent your Social Security number. It also is a federal crime to obtain an EIN from the IRS under false pretenses. Further more, you could be charged with mail or wire fraud if you use the mail or the telephone to apply for credit and provide false information. Worse yet, file segregation likely would constitute civil fraud under many state laws.
Your Rights Under The Credit Repair Organizations Act
This law prohibits false claims about credit repair and makes it illegal for these companies to charge you until they have performed their services. It requires that companies tell you about your legal rights. Credit repair companies must provide this in a written contract that also spells out just what services are to be performed, how long it will take to achieve results, the total cost, and any guarantees that are offered. Under the law, these contracts also must explain that consumers have three days to cancel at no charge.
Finding Help for Credit Problems
It's a good idea to try to solve your debt problems with your creditors as soon as you foresee or realize that there is a financial problem. If you can't resolve your credit problems yourself or need additional help, contact debt-consolidation-Kimberly.com We are a full service debt consolidation organizations with clients nation wide that counsels and educates individuals and families on debt problems, budgeting and using credit wisely. We work directly with your creditors to help resolve your debt problems by negotiating a repayment schedule that is affordable for you and acceptable to the creditor.
Newspapers, radio, TV and the Internet are filled with advertisements that offer for a fee to erase accurate negative information in your credit file. The credit repair scam artists who run these ads can't deliver. Only time, a deliberate effort, and a plan to repay your bills will improve your credit history record. This section is designed to help you understand credit reports and credit repair scams.
Credit Reports
Does your credit report accurately represent you? A recent study conducted by the Public Interest Research Group (PIRG) found over 70% of credit reports contain errors. Among the principal findings of the report were the following:
*
Twenty-nine percent (29%) of the credit reports contained serious errors that could result in the denial of credit."
*
"Serious" errors included false delinquencies, public records or judgments that belonged to a stranger, or credit accounts that did not belong to the consumer;
Seventy percent (70%) of the credit reports contained mistakes or errors of some kind, also including the following:
*
Forty-one percent (41%) of the credit reports contained incorrect personal demographic identifying information;
*
Twenty percent (20%) of the credit reports were missing major credit cards, loans, mortgages, or other accounts that are critical to demonstrating consumer credit worthiness.
Click here for your free debt consolidation quote now!
One of the first steps to credit repair, is understanding credit reports. When applying for mortgages, home loans and refinances, one of the most important factors in determining whether or not you will be approved is your credit. This is true for other important factors as well, such as obtaining lower interest rate auto loans and credit cards. Good credit can open many doors.
If you have had credit issues in the past, or are currently in a situation that will affect your credit, be prepared to address these issues upfront.
The mortgage industry has its own language when it comes to your credit report. Mortgage lenders get their name from the grading system they use. Items that determine your credit rating (A+ to D-) are payment history, amount of debt payments, bankruptcies, equity positions, and credit scores. Credit scores are also known as "FICO" scores, and are used by the mortgage industry to determine credit risk. The higher the credit score, the better the credit risks.
FICO stands for Fair Isaac Company, the company that created the original scoring system. Each credit bureau has its own unique system that allows them to offer a score based solely on the contents of the credit bureau's data about an individual. A numerical score at one bureau is the equivalent of the same numerical score of another. For example, a score of 700 from Experian indicates the same creditworthiness as a score of 700 from Trans Union or Equifax. However, the calculations used to determine these scores are different for each bureau.
FICO scores range from 375 to 900 points. A score of 650 or above indicates a very good credit history. However, lenders do not necessarily give the same value to a particular credit score, and they do not necessarily use credit scoring!
FICO scoring places a value on the types of accounts you hold, as well as your credit history. The formula that determines your scores, however, is not disclosed to the consumer.
The 5 most important factors to determining your credit score are:
*
Your payment history
*
The amount of outstanding debt you have compared to your credit limit
*
Your credit history
*
The types of credit you use
*
Negative information
Remember, FICO scores range from 375 to 900 points. A score of 650 or above indicates a very good credit history.
free debt consolidation quote!
Credit Repair Scams
You've seen it in newspapers, maybe even heard it on the radio or television -- Erase accurate negative information in your credit file! -- The credit repair scam artists who run these ads can't deliver. Only time, a deliberate effort, and a plan to repay your bills will improve your credit record. This section is designed to help you understand the two top credit repair scams that are circulating newspapers, television, magazines and radio.
Credit Repair Scam #1 - File Segregation
If you filed bankruptcy, you may be the target of a credit repair scam called "file segregation." In this scam, you are promised a chance to hide unfavorable credit information by establishing a new credit identity. That may sound like a good idea but, file segregation is illegal. If you use it, you could face fines or even a prison sentence.
Credit Repair Scam #2 - New Credit Identity
If you have filed for bankruptcy, you may receive a letter from a credit repair company warning you about the inability to obtain credit cards, personal loans, or any other types of credit for 10 years. For a fee, the company promises to help you hide your bankruptcy and establish a new credit identity to use when you apply for credit. These companies also make pitches in classified ads, radio, TV, and the Internet.
When signing up for the service you will be required to pay a fee and may be directed to apply for an Employer Identification Number, commonly referred to as an EIN, from the Internal Revenue Service (IRS). Typically, an EIN is quite similar to a social security number and is used by businesses to report financial information to the IRS and the Social Security Administration.
After you receive your EIN, the credit repair service will tell you to use it in place of your social security number when you apply for credit, inform you to use a new mailing address and obtain additional credit references.
That may sound like a good idea but, using false information is illegal and considered fraud. If you use it, you could face fines or even jail time.
Credit Repair Company's And False Claims
Credit Repair False Claim #1: You will not be able to get credit for 10 years.
Each creditor has its own criteria for granting credit. While one may reject your application because of bankruptcy, another may grant you credit. And, given a new reliable payment record, your chances of establishing additional credit could probably increase as time passes.
debt consolidation
Credit Repair False Claim #2: The company or "file segregation" program is affiliated with the federal government.
The federal government does not support or work with companies that offer such programs.
Credit Repair False Claim #3: The "file segregation" program is legal.
It is a federal crime to make any false statements on a loan or credit application. It is a federal crime to misrepresent your Social Security number. It also is a federal crime to obtain an EIN from the IRS under false pretenses. Further more, you could be charged with mail or wire fraud if you use the mail or the telephone to apply for credit and provide false information. Worse yet, file segregation likely would constitute civil fraud under many state laws.
Your Rights Under The Credit Repair Organizations Act
This law prohibits false claims about credit repair and makes it illegal for these companies to charge you until they have performed their services. It requires that companies tell you about your legal rights. Credit repair companies must provide this in a written contract that also spells out just what services are to be performed, how long it will take to achieve results, the total cost, and any guarantees that are offered. Under the law, these contracts also must explain that consumers have three days to cancel at no charge.
Finding Help for Credit Problems
It's a good idea to try to solve your debt problems with your creditors as soon as you foresee or realize that there is a financial problem. If you can't resolve your credit problems yourself or need additional help, contact debt-consolidation-Kimberly.com We are a full service debt consolidation organizations with clients nation wide that counsels and educates individuals and families on debt problems, budgeting and using credit wisely. We work directly with your creditors to help resolve your debt problems by negotiating a repayment schedule that is affordable for you and acceptable to the creditor.
Tuesday, September 19, 2006
If you even know what that is then likely you are. If you are between 20-30 years old that pay for everything with a plastic card then you may be part of the Plastic Generation. You think the space in your wallet is for receipts not cash.
This behavior can be a way to financial ruin and fast. Some signs are, if you are broke? Do you have a credit card balance unpaid each month? Do you have more than 4 credit or debit cards that you use on a weekly basis? If you answered yes to these questions then you should step back and take a look at your financial sitiuation that you may be in. Debt Consolidation may be the answer to assist you with the debt problem you may have.
Advertising companies have done a great job at getting many people to forget how hard it is to earn money. They work on our need for gratification. It all starts like this, buy on credit, nothing down, don’t pay for 6 months, instant approval. Many of us think, what a great deal in a few months I will have saved up the money to pay for this and it will all be good.
The advertising people have thought of this also and trust me between now and the 6 months they will have another great deal for you to spend your credit money on. Once you get behind on payments you feel depressed. What better to cheer you up than the latest thing? The mill of debt grows more debt and you now really work for the credit card companies. When joining our debt consolidation we will assist you with your debt problem, our credit counseling program is here to assist you.
Some ideas to assist you. Pay for everything in cash. Simple as that, because if you don’t have the cash in your account I guess you won’t be paying for it will you. Too many young people today just do not have an appreciation for how much cash their credit card bills are.
Until you have zero credit card debts on a monthly basis I encourage you to pay for everything in cash. You will learn what the term cash flow really means and will be on your way to learning a critical skill in becoming wealthy. If you want something save up cash for it and pay in cash. That way every time you look at what you bought you will feel the pride of ownership. Or you can look at the stuff you bought on credit and see the anchors of debt dragging you down.
This behavior can be a way to financial ruin and fast. Some signs are, if you are broke? Do you have a credit card balance unpaid each month? Do you have more than 4 credit or debit cards that you use on a weekly basis? If you answered yes to these questions then you should step back and take a look at your financial sitiuation that you may be in. Debt Consolidation may be the answer to assist you with the debt problem you may have.
Advertising companies have done a great job at getting many people to forget how hard it is to earn money. They work on our need for gratification. It all starts like this, buy on credit, nothing down, don’t pay for 6 months, instant approval. Many of us think, what a great deal in a few months I will have saved up the money to pay for this and it will all be good.
The advertising people have thought of this also and trust me between now and the 6 months they will have another great deal for you to spend your credit money on. Once you get behind on payments you feel depressed. What better to cheer you up than the latest thing? The mill of debt grows more debt and you now really work for the credit card companies. When joining our debt consolidation we will assist you with your debt problem, our credit counseling program is here to assist you.
Some ideas to assist you. Pay for everything in cash. Simple as that, because if you don’t have the cash in your account I guess you won’t be paying for it will you. Too many young people today just do not have an appreciation for how much cash their credit card bills are.
Until you have zero credit card debts on a monthly basis I encourage you to pay for everything in cash. You will learn what the term cash flow really means and will be on your way to learning a critical skill in becoming wealthy. If you want something save up cash for it and pay in cash. That way every time you look at what you bought you will feel the pride of ownership. Or you can look at the stuff you bought on credit and see the anchors of debt dragging you down.
Tuesday, September 12, 2006
Credit Repair the Truth
Have you ever heard this before?“Credit Problems? No Problem!”
“Your Bad Credit Erased…100% Guaranteed”
If you have ever read this type of advertisement BEWARE! There are numerous companies throughout the United States that claim they can “fix” your credit reports for a fee. In most cases they do little or nothing to fix your credit reports. What ends up happening is these companies take your money and disappear with it and you’re left with bad credit and less money in your possession. Many companies also claim that they can create a new credit file for you by getting you a “New” Social Security number. This is illegal and never actually works.
Did You Know?
Your credit history is maintained by companies called credit bureaus. These are private companies that collect information reported to them by mortgage companies, banks, department stores and other creditors. These bureaus can legally report any accurate negative information for 7 years and bankruptcy information for 10 years. Any accurate negative items that are within the 7 (or 10) year reporting period cannot be erased from your report by anyone. Not even companies that advertise to “repair credit” can erase this information.
Time is the only thing that will heal your credit report. By making consecutive payments when they are due, you will be able to show a more positive rating on your report, but your negative marks will not be removed.
Steps to Check Your Credit
You are entitled to see any information that the credit bureaus have on file about you. This is required by law. To find out what is listed on your credit report, you can follow these simple steps:
# Contact the local credit bureaus.
# Obtain a copy of your credit report. There may be a small fee if you haven’t been denied credit within the last 30 days, during which time it is free.
# You can visit the credit bureau office to review your credit report in person.
# Review your credit report for any mistakes.
If you do not understand something, you can ask. By law, the credit bureaus are required to explain your report to you. If a mistake is found, notify the credit bureau of the mistake and provide them with as much information regarding that problem. A reinvestigation will be done to dispute the information (if legitimately incorrect) and make all necessary corrections needed. A corrected copy of your report should be sent to anyone who has received the incorrect version within the past 6 months.
Are You A Victim?
If you have ever encountered a serious problem with a credit repair company, you CAN report them. You can contact your local consumer affairs office or your state attorney general. Check with your local directory assistance to see if a toll-free number is available.
You can also contact the Federal Trade Commission (FTC) to report any situations. Although the Commission cannot rectify individual credit problems for the consumer, it can act against a company if they see a pattern of possible law violations. If you feel a company has engaged in credit fraud you can send complaints to:
Correspondence Branch
Federal Trade Commissions
Washington, DC 20580
Myth
Credit Clinics and/or Credit Repair Services can “clean up” your credit report.
Fact
No one can legally remove accurate information from a credit report. However, you can request a reinvestigation on any of the information in your file that you dispute as inaccurate or incomplete.
Get you FREE debt consolidation quote today. Have debt? Credit counseling can be your way out.
Have you ever heard this before?“Credit Problems? No Problem!”
“Your Bad Credit Erased…100% Guaranteed”
If you have ever read this type of advertisement BEWARE! There are numerous companies throughout the United States that claim they can “fix” your credit reports for a fee. In most cases they do little or nothing to fix your credit reports. What ends up happening is these companies take your money and disappear with it and you’re left with bad credit and less money in your possession. Many companies also claim that they can create a new credit file for you by getting you a “New” Social Security number. This is illegal and never actually works.
Did You Know?
Your credit history is maintained by companies called credit bureaus. These are private companies that collect information reported to them by mortgage companies, banks, department stores and other creditors. These bureaus can legally report any accurate negative information for 7 years and bankruptcy information for 10 years. Any accurate negative items that are within the 7 (or 10) year reporting period cannot be erased from your report by anyone. Not even companies that advertise to “repair credit” can erase this information.
Time is the only thing that will heal your credit report. By making consecutive payments when they are due, you will be able to show a more positive rating on your report, but your negative marks will not be removed.
Steps to Check Your Credit
You are entitled to see any information that the credit bureaus have on file about you. This is required by law. To find out what is listed on your credit report, you can follow these simple steps:
# Contact the local credit bureaus.
# Obtain a copy of your credit report. There may be a small fee if you haven’t been denied credit within the last 30 days, during which time it is free.
# You can visit the credit bureau office to review your credit report in person.
# Review your credit report for any mistakes.
If you do not understand something, you can ask. By law, the credit bureaus are required to explain your report to you. If a mistake is found, notify the credit bureau of the mistake and provide them with as much information regarding that problem. A reinvestigation will be done to dispute the information (if legitimately incorrect) and make all necessary corrections needed. A corrected copy of your report should be sent to anyone who has received the incorrect version within the past 6 months.
Are You A Victim?
If you have ever encountered a serious problem with a credit repair company, you CAN report them. You can contact your local consumer affairs office or your state attorney general. Check with your local directory assistance to see if a toll-free number is available.
You can also contact the Federal Trade Commission (FTC) to report any situations. Although the Commission cannot rectify individual credit problems for the consumer, it can act against a company if they see a pattern of possible law violations. If you feel a company has engaged in credit fraud you can send complaints to:
Correspondence Branch
Federal Trade Commissions
Washington, DC 20580
Myth
Credit Clinics and/or Credit Repair Services can “clean up” your credit report.
Fact
No one can legally remove accurate information from a credit report. However, you can request a reinvestigation on any of the information in your file that you dispute as inaccurate or incomplete.
Get you FREE debt consolidation quote today. Have debt? Credit counseling can be your way out.
Tuesday, September 05, 2006
What Debt consolidation mean to you
Credit card debt is one of America’s most threatening dispositions. Millions of individuals every day are getting themselves deeper and deeper into debt. Credit card companies and other debt collection business offer no remorse or help to those who have already spent their money. For many of those there are only a few options that you can choose. One of those options is just don’t pay, one which we dont advise at all. This is a problem because it means getting calls day after day from angry intimidating debt collectors and constant fear of repossession as well as showing up on your credit report. Another way is to file bankruptcy. It means more expenses and horrible credit for long periods of time. You have to go to court for this and then you can not even thing about getting a credit card for about 10 years. Some also may decide to pay debt in the standard old fashioned way. One bill at a time. But what if those bills add up to be higher than your paycheck? How is this problem resolved?
Debt consoladation may be the answer.What is Debt consolidation ? It is the process of taking ones debt and combining it into 1 low monthly payment. The monthly payment is also often times reduced because of arrangements made with the debt consoladation company if you make your payments.
Lower monthly payments and less interest rates make it much easier for one to pay their debt off completely and work to make them credit worthy once more. Being credit worthy is essential because that gives you the buying power of financing a house, financing a car, making larger purchases, getting a cell phone service and many other services that one cannot get without credit.
Debt consolidation gives them the opportunity to do such things. It can be a hard way, but often times the right way. And it is not the hardest way by far. It is much more damaging to completely not pay your bills, or to claim bankruptcy. If you need help this is a great option.
Debt Consolidation is the answer to your financial problems.
Credit card debt is one of America’s most threatening dispositions. Millions of individuals every day are getting themselves deeper and deeper into debt. Credit card companies and other debt collection business offer no remorse or help to those who have already spent their money. For many of those there are only a few options that you can choose. One of those options is just don’t pay, one which we dont advise at all. This is a problem because it means getting calls day after day from angry intimidating debt collectors and constant fear of repossession as well as showing up on your credit report. Another way is to file bankruptcy. It means more expenses and horrible credit for long periods of time. You have to go to court for this and then you can not even thing about getting a credit card for about 10 years. Some also may decide to pay debt in the standard old fashioned way. One bill at a time. But what if those bills add up to be higher than your paycheck? How is this problem resolved?
Debt consoladation may be the answer.What is Debt consolidation ? It is the process of taking ones debt and combining it into 1 low monthly payment. The monthly payment is also often times reduced because of arrangements made with the debt consoladation company if you make your payments.
Lower monthly payments and less interest rates make it much easier for one to pay their debt off completely and work to make them credit worthy once more. Being credit worthy is essential because that gives you the buying power of financing a house, financing a car, making larger purchases, getting a cell phone service and many other services that one cannot get without credit.
Debt consolidation gives them the opportunity to do such things. It can be a hard way, but often times the right way. And it is not the hardest way by far. It is much more damaging to completely not pay your bills, or to claim bankruptcy. If you need help this is a great option.
Debt Consolidation is the answer to your financial problems.
