Irena Bocheva asked:




Is it possible to raise credit fast? The mainstream credit advisers will tell you that fixing credit takes time, dedication and careful budget planning. Contrary to that popular myth, there are faster and easier ways to raise credit score. The only requirement for fast credit success-knowledge about the inner workings of the system and the various loopholes in it.

Here are 3 simple tips that will help you understand how fast credit repair works:

1 Don’t let collection agencies intimidate you-they are more bark than bite.

Collection agencies sound threatening-they will flood you with unwanted phone calls and mail, they will warn your that your wage will be garnished, your property seized and you will be sent to court. In reality, when resorting to such harassing measures, collection agencies are actually in violation of the law. Under The Fair Credit Protection Act debt collectors are not allowed to make harassing phone calls and use threatening and abusive language, to give false information about themselves, the amount of the debt, the possible consequences of non payment. And the collection agencies know that. However, they pray on the huge crowd of misinformed people with bad credit. Another thing you should know is that collection agencies pay literally pennies for every dollar that you owe(usually 5 cents per dollar if the account is recent, 1-2 cents if the account is more than 2 years old, less than a penny if it is old or out-of -state account). In other words-they still make a considerable profit even if you settle for 25 % or less of the amount that you owe. Knowing these facts will help you choose the right strategy when dealing with collection agencies- never pay the debt in full, aim for the lowest settlement amount possible and promise to pay only if they remove the item from your credit record. If they try to harass or threaten, remind them that you know your legal rights.

2 Credit Bureaus-learn how to make them play by your rules.

Under the Fair Credit Reporting Act you have the right to dispute any inaccurate, incomplete, outdated, ambiguous or unverifiable item in your credit report. Credit bureaus have 30 days (45 if you used the service of annualreport.com) to conduct investigation and come up with a decision on your case. Statistics shows that 25 % of all disputes filed with credit bureaus end up with success. If the credit bureau doesn’t finish the investigation in a timely manner (a month), they are in violation of FCRA, sec 611. You can also use the debt validation strategy-ask the three major credit bureaus to provide proper documentation that the debt is your. If they fail to find the documentation( which happen in many cases), they are required to remove the item from your record.

3 Open you eyes for the loopholes in the system.

The case with the collection agencies and the credit bureaus are just examples of the various option you have if you want to pursue fast credit repair. There are many little known credit secrets that will take you to the desired destination faster than you think. The key is to look at your credit situation and find out which are the strategies that work for your specific case.

There are many ways to raise credit fast. Once you start thinking outside the credit box, you’ll be surprised to find how easy credit repair actually is.

Sally

James H. Dimmitt asked:




“Erase Bad Debt !”

“Remove Negative Items From Your Credit Report”

You’ve probably seen these headlines and others just like it promising to clean up or “fix” bad credit. For someone who suffers from a bad or poor credit rating, these headlines are certainly an appealing offer.

Imagine finally being able to buy that new car, get debt collectors off your back, and enjoy a new found freedom from your past debts.

Sound to good to be true ? It probably is. Once you fall prey to the credit repair offer and pay the hefty fees involved to clean up your record, here’s what happens:

1) The credit repair scam artist contacts the credit bureaus and reports that the negative information in your file is false.

2) The credit bureau removes this negative information from your report while they investigate the claim.

3) The scam artist will then show you the cleaned up version of your credit report and “ta-da” your credit history has been fixed !

But here’s what the scammer doesn’t tell or show you. After the credit bureau completes their investigation the negative information is placed back on your credit report.

Negative but accurate information cannot be removed from your credit profile. Only incorrect information can be removed.

Accurate information remains on your credit file for a period of 7 years from the time it is reported to the credit agencies; a bankruptcy appears for a 10 year period.

Many legitimate companies exist that can help you with your debt problems. But how do you spot a scam offer ? Easy, they’ll ask you for their fees up front. By law, credit repair agencies cannot ask for payment until they’ve provided the service they promised.

Additionally many states require that a credit repair service, whether they are for-profit or not-for-profit, must provide you with a detailed written contract, an explanation of your legal rights, and the opportunity to cancel any signed contract within 3 days.

Also, be aware that a “credit repair offer” could be an attempt to steal your identity by getting you to provide personal information such as a Social Security number, bank account and credit card account numbers.

Always make sure you know who you are dealing with before accepting any offer to help you repair your credit. Those who don’t can have their credit ruined further and create more debt problems.

Mathew

Art Turner asked:




Never been harassed by a credit agency? Lucky you! It could mean that you have never had any financial problems. That’s quite a feat considering all that could get out of whack. But sometimes issues of our life make it impossible to keep up with our monthly payments. After you get about 90 days past due, your creditor is likely to hire a debt collector. Collectors may be real people, firms or even lawyers.

Recent legislation has specified some basic rules for the ways that you can be contacted. Collection agencies can contact you by mail, in person, by phone, via fax or even by telegram. But when and where they get in touch is limited. They may not contact you before 8 A.M. or after 9 P.M. local time. They are also not allowed to contact you at your place of employment.

Certain unfair practices have now been removed from debt collectors’ tool chests. Collection agencies can’t take more than you owe. If you send them a post-dated check, they are prohibited from depositing the check early. Contacting you by postcard, which could be really embarrassing, is no longer allowed. It’s not open season on your property either, so don’t give in to their threats.

Behavior that could be categorized as harassment, oppression or abuse is just not allowed. For example, persistent phone calls specifically planned to bother a debtor are prohibited by law. Any type of violent threats are clearly out of bounds. Even the use of profane or obscene language is off limits for collectors. If they threaten to publish your name on a list, don’t worry. They aren’t allowed to do anything like that. The only people they can tell is the credit reporting agency.

Has a debt collector ever stated something that sounded untrue? They are not allowed to collect a debt by using misleading or false statements. If they aren’t attorneys, they cannot claim to be. Nor can they claim to be from the government. The credit bureau will not call you directly, so don’t believe anyone who says they are. Collectors are also not permitted to confuse you about papers they send–for example calling them legal documents when they really are not. They must be completely truthful about how much debt you actually owe.

Threats of arrest or imprisonment are strictly prohibited. Seizures of property or garnishment of your wages will not happen without the due process of a lawsuit (student loans have special rules, though, so watch out with those). Threatening you with legal proceedings is against the rules if they don’t really intend to take you to court. Sending out false information or official-looking documents (when they are not) could also get the collectors into trouble.

Work with the collection agency as much as possible, even if it is difficult or distasteful. You may not be able to send the total amount you owe, but try to send something to indicate good faith. If you think the collector has done something in opposition to the law, then take you complaint up through the company’s management structure. If you don’t get an acceptable response from the company, your state Attorney General and the U.S. Federal Trade Commission are the next steps. In most cases, however, the fact that collectors broke the law will not alter the fact that you owe a debt. You are still responsible for paying what you owe. The laws are in place to make sure that you are treated with fairness and respect.

Andrea

David Kamau asked:




Your credit history is a record you’ve established with the 3 major credit bureaus by either paying or not paying your bills on time, or not paying at all. This history is recorded by all of your creditors on your three credit reports.

The 3 major credit bureaus are Equifax, TransUnion and Experian. They keep this information on file for you, your creditors, new lenders and other interested parties.

Parties that may require your credit history that are not lenders or creditors per se are employers and, more recently (and frightening), doctors and hospitals.

Your credit reports will reflect your payment history on all of your credit accounts you’ve had for the past.

This includes your student loans, mortgages, retail store credit cards, auto loans, telephone, and utilities (cable, gas and electric); although typically utility companies do not report until you fall into delinquency.

Federal law requires that child support delinquencies get reported.

This information can be reported for up to 7 years, or 10 years for bankruptcies. However, there is no time limit if applying for a loan of more than $150,000 or a job with an annual income of more than $75,000.

But aside from your credit history, the 3 major credit bureaus also store personal information about you, such as past and present addresses, social security number, and employment history.

The 3 major credit bureaus are for-profit businesses. They make money by selling your information.

You may be asking; how do the Credit Bureaus know if I pay my bills on time or not?

Well, the credit bureaus do not know if and how you pay your creditors. It’s your creditors that supply your information to them: it is your creditors that report your payment history to the credit bureaus; good or bad, they run and tell.

Have you wondered how debt collectors are able to find you when you move? One of the ways that debt collectors are able to track you down to your new address is through the credit bureaus.

When you apply for new credit, your information including your address is entered into your credit file. This process is called “lender reporting” where your creditors will send, typically, all three credit reporting bureaus the current status of your accounts utilizing an electronic tape.

Since lenders do pay to make reports they often do not report to all 3 major credit bureaus. This is one reason why your credit report will often differ from bureau to bureau.

Once the credit reporting agencies receive this tape, it’s loaded into their system and then unloads into their databases, hence, creating an updated record of all your accounts, address, and payment history.

In the perfect world, all your accounts should be paid on time; however, many of us fall behind. Doesn’t matter whether you were hospitalized or near-dead, all your timely payments, late payments, or missed payments are reported.

Accounts in good standing are noted as “paid as agreed.” This means that the creditor is reporting your account as being paid according to the terms of agreement you signed.

If your account is past due then your status rating changes and causes your credit ratings drop.

All the 3 major credit bureaus also indicate on your report the name of the creditor, type of account, account number and delinquency status (whether 60, 90 or 120 days late).

The worst notation on your credit bureau report is one that shows that an account is “in collection”. But even more devastating are judgments against you, bankruptcies and tax liens.

Christian

f asked:


if i put a freeze on my account with the credit bureau, will employers and or any debt collectors verify where i am or whatever ?

serious people only !!!

Michele