Mar
9
Personal Credit Report
March 9, 2010 | Leave a Comment
Your personal credit report is an electronic record of your credit activities. These activities include borrowing money to buy a car, applying for a loan or credit card and your payment history of the loans you have taken. Every time you apply for credit or a loan, potential lenders use this report to see how you use credit and how much of it you have available.
According to TransUnion, one of the three major credit bureaus, there are four main areas of content in your personal credit report: Identifying information, credit history, public records, and credit inquiries. Your credit report also shows any current credit that you have. This includes amounts owed, amounts available, like on a credit card or other form of revolving credit and payment amounts on installment loans.
When lenders evaluate your loan request they use the information on this report to generate your credit rating. The higher this rating, the more likely you will receive the loan and at more favorable terms. If you are planning on applying for credit anytime soon, it’s a good idea to take a look at your credit report before the people reviewing your application do. This will ensure that you aren’t caught off guard by any unpleasant surprises that may be on your credit report. Many people have found errors on their credit report that were bringing down their credit score.
Luckily, getting a copy of your credit report is easy and if you request it from the right place it can also be free! A quick Internet search will direct you to many reputable companies that will provide you with a copy of your credit report free of charge. We recommend visiting www.credit-report-credit-score.com to learn more about credit and to obtain a free copy of your credit report.
If you find errors or false information on your credit report, they can be disputed and corrected. However, correcting these mistakes can sometimes be a lengthy process. That is why it is the best idea to keep a watchful eye on your credit report activity at all times in addition to checking it before you plan to apply for credit or a loan. That way, if any errors ever do make their way on to your credit report you can save valuable time by correcting them before you are ready to apply for your next loan.
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Note: This article may be freely reproduced as long as the authors bio paragraph at the bottom of this article is included, the article is published “as is” (unedited) and all URL’s are made active hyperlinks with no syntax changes.
This article was written by Beth Pardue who has over 10 years of experience in the financial industry assisting clients with assorted financial needs. To get your free credit report and to learn more about credit reports please visit: http://www.credit-report-credit-score.com
Popularity: 1%
Mar
6
Credit Report Inaccuracies
March 6, 2010 | Leave a Comment
Inaccuracies on credit reports cost consumers thousands of dollars every year. Approximately 80% of Americans have inaccuracies on their credit reports. What causes these inaccuracies? How do they affect your ability to purchase with credit or obtain a job? What can you do about these inaccurate items?
A recent study by the U.S. Public Interest Research Group, for example, found that four out of every five credit reports contained errors, and one in four “contained errors serious enough to result in the denial of credit or denial of an employment application.”
Among the major credit report accuracy findings of the survey:
Twenty-nine percent (29%) of the credit reports contained serious errors - false delinquencies or accounts that did not belong to the consumer - that could result in the denial of credit;
Forty-one percent (41%) of the credit reports contained personal demographic identifying information that was misspelled, long-outdated, belonged to a stranger, or was otherwise incorrect;
Twenty percent (20%) of the credit reports were missing major credit, loan, mortgage, or other consumer accounts that demonstrate the creditworthiness of the consumer;
Twenty-six percent (26%) of the credit reports contained credit accounts that had been closed by the consumer but incorrectly remained listed as open;
Altogether, 70% of the credit reports contained either serious errors or other mistakes of some kind. Among the survey’s major access to credit report findings:
Of the consumers that did obtain their credit reports, at least 14% of them were forced to call back 3 or more times after receiving busy signals or had to write a letter in order to receive their report; and 12% of the consumers waited two weeks or longer to receive their report once they finished requesting it. It took more than a month for one California man to receive his report.
Overall, 15% of consumers who attempted to participate in the survey either made at least 3 phone calls and never got through or requested their reports but never received them.
According to a study by the Consumer Federation of America and the National Credit Reporting Association four percent of the cases showed that consumers had a margin of at least 100 points between the three credit bureau scores. The causes of these errors are many: typographical, merging of consumer information by creditors, similar names or residences of consumers, or incomplete information provided by lenders.
Doug Parker, CEO
RMCN Credit Services, Inc.
888.469.7372
http://RepairMyCreditNow.com
Popularity: 2%
Mar
3
Credit Report Repair - Boost Your Credit Score
March 3, 2010 | Leave a Comment
1. Deleting Errors in 48 Hours
This is the absolute fastest way to correct errors on your credit
report and raise your credit score. However, it can only be done
through a mortgage company or a bank. If you apply for a home
loan and find errors on your credit report, request the loan
officer to conduct a Rapid Rescore. But don’t mistake it for the
credit clinic tactic of multiple dispute letters.
The Rapid Rescore strategy requires proper paperwork. You need
proof that the item is incorrect. It must come from the creditor
directly. For example, a letter stating the account is not your
account, a letter stating the account was paid satisfactorily,
a release of lien, a satisfaction of judgment, a bankruptcy
discharge, a letter for deletion of collection account or any
relevant evidence.
This is the same documentation a bank or mortgage company would
require for the credit accounts anyways. The difference is, now
you can improve your credit score and receive a lower interest
rate. The results are not guaranteed and will run you about $50
per account.
2. Deleting Negative Credit
This is the infamous area where you’ve heard of all the scams.
credit repair clinics charge “an arm and a leg” and promise a
clean credit report. Sometimes even a new credit profile! People
spending hundreds, or even thousands, of dollars for something
they can do themselves.
Removing errors is simple. Deleting negative credit that is
accurate requires advanced methods. But that is not the scope
of this report. So I’ll focus on the deleting the negative
errors.
Credit report errors easily disappear by using a simple dispute
letter. If you have the paperwork proving the error as mentioned
above in Rapid Rescore, send copies of that along with the
dispute letter. This will make the credit bureau’s job easier and
you will get faster results.
If you don’t have the documentation to prove the error(s), send
the dispute letter anyway. According to federal law, the credit
bureau’s have a “reasonable time” to validate your claim. They
will contact the creditor for verification of your dispute. Then
the account will be reported accurately - or deleted. It has been
generally accepted the “reasonable time” to complete this task is
30 days.
If you’re not the do-it-yourself kind of person. Or don’t have
the time. You could hire someone who is very economical.
3. PiggyBack Someone’s Credit
This is a fast and great little credit score booster. But it
requires a very trusting relationship. Simply put, someone else
adds you to their credit account. For example, when applying for
a credit card, you may have seen the section to add a card holder.
If your trusting person adds you, their payment history is now
reported on your credit report too. If they have perfect credit,
now you have a perfect account.
To make this more effective, use an aged account. Imagine if your
trusted person has a 10 year old credit card account with a
perfect payment history and a balance of only 50% of the credit
limit. Wouldn’t you love to have this on your credit report? The
easy part is your trusted person just calls the credit card
company and requests a form to add a cardholder. Once completed
and activated, their entire account history and future is now
firmly planted on your account. Imagine if you secured 3-5 of
these accounts - especially installment accounts. Your credit
score could sky-rocket!
The challenging part? Finding the trusted person. Since you already
have a low credit score and bad credit, how eager will someone be
to make you a cardholder? Even your parents don’t want you to
damage their credit. But, no one says you need to possess the card!
In other words, your trusted person could add you as a card holder
and never give you the card or PIN or any information. Since the
bills and all account information is still mailed to the trusted
person’s address, you won’t know anything about the account. This
scenario could land you many trusted persons. And you still benefit
with a higher credit score.
4. Playing Round Robin
This strategy is one of the oldest credit building techniques
around. It used to be accomplished with secured savings accounts.
But now, it’s much easier with secured credit cards. In fact,
I’ve used this method myself.
Here’s how it works: Take ,000 (or what you can afford) and get
a secured credit card. Once received, get a cash advance of 70%
of your credit limit. Get a second secured credit card. Once
received, get a cash advance of 70% of your credit limit. Get a
third secured credit card. Once received, get a cash advance of
70% of your credit limit.
Open a new checking account with the final cash advance. Use this
account only for making payments on your three new credit cards.
If you make your payments on time every month, your credit score
will increase because you now have three new perfect payment
credit cards. (Initially, your credit score might drop a few
points due to the rapid, multiple accounts being opened. However,
be patient because within 4 months of no new accounts or any
delinquencies of any account, you will see your credit score
increase. Mine increased 60 points in 60 days!!)
5. Pay on Time
This one is quite obvious. But after 12.5 years in the mortgage
business, I discovered it still needs repeating. Your creditors
were gracious enough to loan you money. Now pay your damn bills!
If you don’t, your credit score decreases. EVEN IF ONLY 30 DAYS
LATE!
That’s right folks. For some reason people think, “I’m only a
few weeks late. What’s the big deal?” Well, for the loan company,
if you pay late but consistent, they make a lot more money with
late fees and more interest (if a simple interest loan). For you,
your credit score is damaged. If you think long-term and credit
score, I’m certain you would not have a cavalier attitude.
6. Pay Down Debts
This seems like an obvious method, doesn’t it? But it is not as
transparent as you might think. Remember, we’re playing with
high-level statistics and probabilities which evaluates and
forecasts trends in your behavior. Here’s what you do…
Never pay off your revolving debt in it’s entirety! Isn’t that a
surprise? Think about it. Your credit score is a reflection of
your ability to manage your credit. Paying off your debt is not
managing your debt. If you have a zero balance, how can you manage
it? You don’t. It no longer exists. And you cannot manage what
does not exist, right? Therefore, in terms of credit score, you
have demonstrated your ability to swiftly pay off accounts to
avoid managing them. Thus, slightly decreasing your credit score.
One exception, of course, is if you’re over extended to begin
with. Pay off what’s necessary to make your credit profile look
great. Then manage the remaining credit.
7. Don’t Close Accounts
Even if you pay off revolving debts, do not close the account.
The longer an account is open with no negative reports, the
better it reflects in your overall credit score. This is due to
the weighted-average in the credit score formula. Many credit
experts suggest a balance of 30% of your credit limit. That’s
ideal. But you can go as high as 70% and still maintain a
healthy credit score.
8. No New Credit
You must be vigilant in your credit behavior if you want the best
credit score. Therefore, do not get any new credit unless it is
absolutely necessary. Each time you apply for credit, an inquiry
is added to your report. This usually drops your credit score
slightly. When you have fresh credit, there is no track record
how you will manage (or pay) this account. Therefore, it’s a
higher risk which results in a minor drop in your credit score.
Remember, your credit score is about risk assessment.
Here’s what you do: obtain credit for your housing, transportation,
college or continued education and 3-5 credit cards. That’s really
all you need for personal credit. If you want more credit, request
a credit limit increase on your current cards rather than apply
for new ones.
9. Maintain A Mix of Credit Types
If you show you can handle different types of credit at the same
time, you are rewarded with a great credit score. In other words,
get installment loans like vehicle, personal loan or mortgage.
Get revolving credit like credit cards: Visa, Mastercard, Sears,
Sunoco Gas, Costco. By mixing it up, you demonstrate you can
manage your credit because you will have short term and long term
credit with a fixed payment. As well as a “variable” monthly
payment on your credit cards.
Keep these accounts open with a balance of 70% or less and paid
on time and you will witness your credit score climb to great
heights.
10. Don’t File Bankruptcy or Foreclosure
Here’s the most obvious advice: Don’t file for bankruptcy or
foreclosure. These stay on your credit report for 10 years and
always decrease your credit score. The older the bankruptcy or
foreclosure account becomes, coupled with re-built credit
history, the less of an impact they play on your credit score.
Contrary to popular beliefs, you can legally delete a bankruptcy
and foreclosure. It’s not easy. But it’s possible. See the
advanced methods for that solution.
To quickly rebuild your credit history after a bankruptcy or
foreclosure, use the Round Robin strategy above and get secured
credit cards. Now you can even get a car loan or mortgage right
after bankruptcy.
Jeffrey Cash
http://www.mrquickcash.com/
Popularity: 3%
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