EasyBadCreditRepair.com

You may never know that you have a bad credit score, until you try to get a loan. Then, all of a sudden, that house you’ve been saving for is way out of reach, because you can’t get approved for a mortgage. Who knew that credit card you had in college could ruin your dreams, 6 years later?

If you are anticipating taking out a loan, say for a car or a house, it might be a good idea to check your credit score, first. You can get a free credit report at several sites. When you do this, you have the chance to clean up and update your credit report before potential lenders look at it. You can make sure that, as your debts have been sold, no one has entered a new DOLA, or Date of Last Activity. For one thing, this makes it look like the debt is newer than it actually is. You can also make sure that all of the debts on your credit report are actually yours. With a little pre-planning, you can have your credit report cleaned up and in good shape before a lender ever looks at it.

But, what if you didn’t do that? What if you have already applied for a loan and been turned down? You get your free credit report just like anybody else does – you ask for it. There are 3 credit bureaus in the U.S., and you can get a free report from all three. You can get 1 free credit report a year. This is guaranteed by the Fair and Accurate Credit Transactions Act, otherwise called the FACT Act. AnnualCreditReport.com is the agency set up to assure consumers that they get their free credit reports. Since you can get one free report a year from each of the 3 agencies, it’s a pretty good idea to get one from a different agency every 4 months, or so.

The free credit report will list all credits and debits. It won’t however, contain your actual credit score. They charge for that. However, with your credit report, you can keep track of claims collectors have made, and if you see something suspicious, you can challenge it in a timely manner. This can also be a valuable tool to prevent identity theft.

Often, people pay a small monthly fee to a credit repair agency. These agencies can scrutinize your credit report for questionable items. Even if it is a valid debt, the credit repair agency can contact the creditor or collection agency, often succeeding in having the item removed from your credit report. This dispute process can be intricate and frustrating, but the credit repair company is well familiar with tactics that credit card companies and collection agencies use to keep their names on your credit report.

So, if you’ve been turned down for credit, you can still get your free credit report. Just ask for one!

If your credit report has a debt collection on it, it lowers your score. The most damage will be done during the first two years that it is on your report, but it will linger there for 7 years total. And, due to some unscrupulous collectors, maybe longer. But, there are some steps you can take to remove debt collections from your credit report.

Is it Really Your Debt?

First of all, make sure it is really your debt. You can file a credit report dispute with the credit bureaus if it is not your debt. For instance, collectors are not allowed to list debt on your credit report if the debt is your spouse’s, unless your name is on the loan or credit card, too.

What if it Is Your Debt?

The debt collector who reported you to the credit bureau can’t legally collect from you, even if it is your debt. If the collector has made contact with you within the last 30 days, you can request a debt validation. This will be a notice, in writing, proving that the debt is really yours. You have 30 days from the first notice to send a written dispute. The collector cannot report his collection actions to the credit bureau until this is resolved. You can dispute all or part of the debt. You can also ask for the name of the original entity that you owed money to, because sometimes the collection agencies sell accounts to one another.  If the collector can’t prove that the debt is truly yours, or if he ignores your letter, he has to remove the claim from your credit report.

Dispute the Claim When Your Account is Sold

Collectors sell accounts back and forth, and some of them will try to keep the claim date current on your credit report. This is called “re-aging”. If you know a debt is over 7 years old, dispute it’s appearance on your report. These account sales take place about twice a year. So, if you’ve had a claim on your account for a while, it is probably far removed from the original creditor and collectors. You can often have these accounts removed from your credit report by disputing them with the credit bureau.

Negotiate

If you are trying to clean up your credit report and raise your credit score, it is possible to negotiate with creditors to have their claims removed from your credit report. Contact that creditor or collector and agree to pay the bill if they clear their claim from your report. If they agree, wait until you have the agreement in writing before you make a payment. When you send the payment, and any other communication, make sure to send it in certified mail, requesting a return receipt, so that you have proof of the correspondence. If the collector does not remove his claim after your payment, dispute it.

One really good way to handle these problems is to hire a credit repair company. They know how to spot questionable claims, and dispute them.

There are so many reasons to pore over your credit report, that many people become obsessed with their credit scores. Paranoia over identity theft is very common in this cyber-age, and rightfully so. In addition, the rocky employment statistics and volatile economy have people scrutinizing their credit reports on sometimes a monthly basis.

This begs the question, “How often should I check my credit report?” The real answer is, “As often as you want to.”

Since it’s your credit report, you can check it as often as you want to. There won’t be any repercussions on your credit score due to frequent requests on your part. This is not true, however, with requests from third parties.

Whenever you apply for a loan, the crediting agency, whether it’s a bank, savings and loan, or credit union, has to get your permission to access your credit report. They cannot legally get your credit report without your permission. This should be no problem, but, if you are shopping for good terms on a loan or a credit card, there are some things you should do to protect yourself.

For example, say you want to buy a car. You don’t want to mess with car salesmen, you’re just going to use your credit union to finance the car, period. In that case, let the credit union check your credit report.

However, if you plan to compare loans, you need to use a different strategy. Money is so tight these days, that car dealerships, among other high-dollar retailers, are offering very competitive rates for seller-financed loans. But, keep in mind that every credit check performed by a third party is recorded on your credit report. One or two, here and there, are no big deal. But, if you let every dealer run a credit check on you, you suddenly have an influx of several potential creditors on your credit report. This looks bad, even if you were being smart and playing the field. Most of the time, it damages your actual credit score, because it looks like something has happened to make you desperate for quick money.

The best way to handle this scenario is to get your credit report, yourself. Your requests don’t show up on the report. Take this report with you when you shop for a car loan, and they can base their quote on that. This way, you can get your range of quotes without multiple inquiries showing up on your report. Once you make your final decision, your lender can get their own official copy of your credit report for their records.

Everyone should check their credit report at least once a year. You may be to the point where you can begin repairing your credit, or maybe you wonder if your identity was stolen. You may have been denied credit, and wonder why. If you think things are amiss with your credit report, you can hire a credit repair agency for very low fees. They are experts at fixing credit reports.

As you read over your credit report, you may run across accounts that you have closed in the past. Each of the accounts will have a reason for having been closed. You may have finished paying off the loan, such as a car, mortgage, or student loan. Or, you may have, in an attempt to curb your own spending, requested that a credit card company close your account, leaving you to pay off the balance as per the usual payment plan. In a worst case scenario, your crediting agency may have closed your account, themselves, in a negotiation to reduce your interest rate and expedite your ability to pay off the card. The credit card company may have also closed your account because you don’t make regular enough payments on it.

If your creditor closed your account, it will show up on your credit report as “closed by grantor” or “closed at grantor’s request”. This usually only happens if there is a problem with your payments, because the creditor wants to keep all of the paying customers it can.

If a card is closed at grantor’s request, it won’t necessarily hurt your credit score – unless it has a balance on it. Then, it’s a sure sign that you’ve been delinquent in payments, and the credit card company is shutting you down. It can also hurt you if you have other credit cards carrying a balance. It may make those other companies worry that you will close your account with them, once you have a balance charged up. In addition, if this was your only credit card, it can hurt your score if the company closes your account.

However, “closed at grantor’s request” could also be wrong. Maybe you requested that the card be closed. This happens often. When people start getting debt paid off, they revel in canceling their credit cards and cutting them up. You just need to be sure to cover all your bases when you do that. You have to request, in writing, that the credit card company close your account. Make sure you state that this is at your request. Keep your documentation, too.

Because, if it shows up on your credit report as a decision made by the creditor, it will send out alarms to potential creditors. They all know that no grantor will lock out a client who pays well.
If you have closed an account, and it shows up on your credit report as “closed by grantor”, you need to immediately dispute the report entry. Make a copy of the letter you wrote requesting that the account be closed. Send the copy of the letter through certified mail to each of the 3 credit reporting agencies. If you don’t send it as certified mail, send it with a return receipt, so that when the agencies get the letter, they have to sign to prove they got it.
If you don’t get any satisfaction, contact a credit repair company. They know what to do, and can straighten it out quickly.

When you get a copy of your credit report, it is a snapshot of your balance at the time the report is printed. Your balance will fluctuate all through the month, based on charges, payments, and interest compounded. In fact, the difference may be simply because the credit card company has not reported the latest change to the credit bureaus.

Give it a Month

For instance, if you just made a big payment, and paid off your credit card, it may take a month for it to show up on your credit report.

Mistakes

However, there can also be mistakes. If you have had a credit card that shows a sudden increase in balance, first of all, call the credit card company or go online to make sure your number has not been stolen. They will have procedures in place to protect your balance. Make it clear that you need your credit report corrected ASAP.

If the credit card company does not take care of the problem immediately, you can file a credit report dispute. By following the steps included in the dispute, you can have your credit report straightened out.

Credit Repair Companies

Often, people will hire a credit repair company in these situations. These companies do this full time, and for a minimum fee they’ll contest any questionable entry on your credit report. You will have to authorize the credit repair company to work on your behalf. They can then contact each of your creditors and challenge questionable entries on your credit report. Credit card companies and other creditors are required, by law, to produce proof of their statements about your credit. If there has been an incorrect balance entered on your credit report, the repair company will require proof of your charge, which can then be disputed on your behalf.

Verifications

Any element of your credit report that cannot be verified by the creditor must be removed. You can dispute these entries yourself, but it often takes several dispute letters and phone calls, with all of the run-around you get with calling big organizations. A credit repair company is familiar with the process, and know how to expedite the process. The fact is, most creditors know they can’t prove their assertions against you, and so, must withdraw the evaluation. Even when they can prove it, they don’t want to waste the time digging up the proof, and so will withdraw the evaluation.

So, in general, an incorrect credit card balance on your credit report will reflect plus or minus about one month’s payment and associated interest, and that’s about all. It’s also pretty typical. If also may not reflect your most recent purchase with the card. If, however, the difference is greater or less than it should be, based on your payments and charges, contact the credit card company and the credit reporting agency immediately. There could be fraud involved, or hijinx on the part of the credit card company.

Your credit score is subject to study by just about everyone. It’s not just banks and car dealerships that are interested in your credit rating. Sure, they’re about to lend you money, so you expect them to make inquiries. But others, from potential landlords to potential employers, also scrutinize your credit report. They want to know if you’re dependable and will pay your bills on time. Since everybody and his dog seems to have their chance at your credit score, it might help to know the difference between a credit report and a credit score.

Your credit report is the summary of a lot of information. It’s the history of credit applications, credit paid off, late payments, and total debt. It will report any actions companies have taken to collect debts from you. Credit card companies, banks, and any other lenders contribute to the report. Even employers can contribute. Also listed in your credit report are the number of credit cards you have, the number of loans you have, and the amounts of each. Your payment history is also reported, with early as well as late payments. The amount of time you have had each account is also part of your credit report. In addition, every time someone makes an inquiry about your credit history, it’s recorded on your credit report. For this reason, you should limit the number of people you allow to view your credit report. If you, for instance, are shopping for a car or a mortgage, just tell the potential lender your credit score and let them do their calculations from that point. Once you make your decision about your choice of lenders, you can let that one agency run a credit check. Otherwise, when the report is scored, it looks like you’ve been shopping for multiple loans, and your score goes down.

The credit score is a number of points – your score – that is supposed to predict whether or not you are worthy of credit. It is intended to relay the likelihood of your repayment of loans, and whether you will make your payments on time. Your score will change over time. It is calculated by a mathematical algorithm that figures in your payment history (as in whether or not you pay on time), types of credit you have, applications for new credit, the length of your credit history, and how much you owe, among other things. As you pay debts off, or go further into debt, your score will change.

Your salary is not figured in on your credit score – only whether or not you appear to be shopping for credit and make timely payments. Credit scores also are not influenced by your race, sex, age, or religion. The score is, basically, a grade you get based on the information in your credit report. That’s why it’s so important to make sure your credit report is accurate. You can even hire companies to contest negative points in your reports.

Nearly 95% of buyers reach their credit frontier in the very first 45 days of turning on their credit cards. If you too are in a similar situation, it’s advisable to opt for credit card consolidation as a way to pay off your debt. With a credit card debt consolidation program, you can combine your numerous credit card bills and consolidate these into one monthly payment. However, you may consider a credit repair business to aid you in getting your finances back on track. Loan officers, auto dealers, real estate agents and mortgage brokers make use of credit repair to close more loans and produce fresh leads.
Following are a few steps to help you get started with a credit repair business.

• 1. Obtain a copy of your own credit report – You are allowed to receive a free copy of your credit report every year. You can obtain them from three main credit bureaus – Experian, Trans-Union and Equifax.
• 2. Try to collect some information about the credit reporting system – You can do so by downloading guides from the FTC website.
• 3. Comprehend your responsibility in the process – After you receive your clients credit reports, you can start working with that client to rectify any error, functioning as the mediato r between them and the creditor or credit bureau.
• 4. Be careful about what you are selling – It’s not possible for a credit repair company to “erase” any negative information that has been there on the credit report for below seven years. Nevertheless, you can minimize the negative impact with a bit of skill if you learn the appropriate negotiating strategies and approach the collection agencies and creditors in the exact manner.
• 5. Work smart – The most frequent mistake made by entrepreneurs is that, they fail to manage their time efficiently. Time spent in handling paper work and forming dispute letters can actually waste your precious time and lower your hourly earnings. This is where software proves to be quite helpful. It saves a lot of time by automating the process and providing you with some off-time to benefit from your success.
• 6. Market and promote your credit repair business – Once you have the whole thing in place, start promoting your credit consulting business. For this, you may contact local credit repair businesses in order to know about the services they recommend and the fees related to these services. Also offer your family and friends your credit repair services for free, and request them for a note of recommendation. Remember that word of mouth is the best type of marketing. This will speedily aid you in building your client support.

Make it a point to be sincere with your clients. Remember that you’re providing them with an essential service. You and your business must be trusted by your clients. For many, credit repair can be very confusing. Encourage and provide them with the information they need.
This will boost your credibility and enhance your credit repair business in the forthcoming days.

Do you know that too many inquiries can hurt your credit score? If you are shopping around for the best possible rates and deal for credit cards chances are because of the numerous offers that each card gives you are having a hard time deciding on which one to choose. You may like something about a certain card but dislike its other terms. Do keep in mind that there is no such thing as perfect even when making a choice among what credit card to choose.

As you go along with your credit card shopping it is prudent not to apply for each one of them. Do you know that too many inquiries can hurt your credit score? As a consequence it can cost you damage even without you knowing. The fact is that every time you inquire about any type of loan this “inquiry” goes into your credit report. This is called as hard inquiry. A hard inquiry can actually cost you to drop your score by a few notches. Each creditor has their own set of guidelines; some creditors consider four or more inquiries as excessive if it is done in a span of six to nine months.

When you place a request for a copy of your credit report this will not count against you this is what you call “soft inquiry”. To give some examples of both soft inquiry and hard inquiry here are few examples.

Soft inquiry:

• Personal request for credit report and credit score
• Primary credit checks by credit card/mortgage companies that want to offer you a pre-approved credit card/loans
• Background check by a prospective employer
• Periodic credit checks by your credit card company

Hard Inquiry:

• New credit card application
• Your personal request for pre-approved credit card activation. The lender will take an in depth look into your credit history
• New mobile phone contract activation
• New bank checking or savings account application

For the best credit card rate you should do your “shopping” around within a 30 day period so that it will not be counted against you. A good approach would be to make multiple inquiries within 14 days so that it can be treated as just one inquiry like in the case of making mortgage inquiries. Choose what you apply for carefully and think if having a new credit card or loan is worth dropping your credit score by a few points.

The major credit bureaus have their own set of determining of rules when categorizing soft and hard inquiries. One thing is common though among the three, soft inquiry is recorded on your credit history but it does not affect your credit score. It is just noted there as reference. It is different with hard inquiry since they can hurt your credit score.

Have you been turned down for an auto loan because of your credit score?  Does this sound familiar? Thousands of people have found themselves in the same position as you are. If you want to start anew then the solution would be to sort your finances as soon as possible. If you have been place on the black list of lenders do not fear since everyday more and more people are seeking for ways to rectify their credit scores so that they can apply for an auto loan. Being blacklisted means you are a high risk borrower, one who is declared as a potential financial liability.

There are instances when the reason why you are facing a huge debt may have to do with a joint account holder’s fault hence the low credit score and dents on your credit history. This may sound unfair to some extent because you are blamed for another person’s mistake but it is how the system works.

So what can you do? The whole process is not that complicated. Correcting matters of importance in your credit report should be your prime goal. Get a copy of your credit report from the three major credit bureaus. Check the documents if all the details that are place there are true. Check how much you owe and who you owe it to. If you have a co-credit holder of which you no longer share financial responsibility with do write the credit bureaus to know of the change.

In the past most lenders would only approve loans that have a credit score of 600 or above but because of the economic crisis some may be approving loans for those who may linger at the middle or bottom of the credit score list like a credit score of 480.  They are willing to overlook the other negative items listed in your credit report. Lenders have lowered their minimum credit score standards in order to keep their doors open and their business thriving. The best approach would be to weed through the countless offers that may be available online. Once you have cleared your name your dream car will no longer remain a dream.

Here are some tips on how to improve your bad credit score:

• Get a credit report copy and check it for discrepancies.
• Pay your credit card and other debts. Increase your score to 50%
• Use your credit card if you have not done this since having not enough debt can also give you a low credit score
• Pay all of your bills on time
• Keep your car loan applications to a two week period so that it will be seen as one credit check. Do note that frequent credit checking can hurt your score

When applying for a loan a person needs to have a credit report issued by a credit bureau. This credit bureau is an organization that tracks down the credit history of an individual as well as any related information connected with the person in question. In order for a government to sustain its financial needs credit bureaus are created to effectively manage credit risks. This is the reason why there is an increase in the creation of credit bureaus around the world.  Aside from the credit reports these credit bureaus have other functions. There are three major credit reporting agencies that are present in the United States these are: Equifax, Experian and TransUnion, they are tasked by the Federal Government to handle the credit records of consumers, and issue credit report to interested parties such as financial institutions.

These are a list of their functions:

• Collection and Updating of Credit Information
  Credit bureaus gather complete information regarding individual’s personal information as well as credit activities. The usual information that they gather contains the person’s identification details, his employment background, his payment records and public records information. Basically they keep a record of everything about the individual. They are also tasked to do updating in case the person has transferred to another job, or place of residence. In case the person files for bankruptcy or perform other credit related activities they keep a record of it all. There are cases when people are arrested or sued so the credit bureau has this information on their files too.
• Computation of Credit Scores
• Credit bureaus use a specialize software that tabulates the credit rating of each consumer. The credit score that it gives is very important since lenders access these files to help them decide whether to approved a consumer’s credit line or turn them down. Credit (FICO) scores range from 350 to 850. If your rating is 720 or higher the lending institution will tagged you as a trustworthy borrower. Your personal credit score is determined by your latest payment history for the past two years. TransUnion determines the credit score through a set of factors. They usually get information on how you pay your loans, how much money you owe, length of time when you opened an account, different types of credit that you use, and your available credits.
• Provide Credit Information to Financial Institutions
  For people who wants to ask for a bank loan the credit information provided by the credit bureau can help these financial institutions decide whether to grant a loan or not.
• Respond to Consumer Disputes
  The credit bureau is tasked by the Federal Government to help the consumer settle their disputes and complaints. The credit bureau is obliged to conduct an investigation in order to settle these disputes and to make the needed updates in the consumer’s credit file. It is a common fact that sometimes typographical errors can be made by either the creditor or the credit bureau. The investigation that this credit bureau makes usually takes a maximum of 30 days and the consumer should be sent a response to their dispute within this period. If the specific bureau has found validity to the person’s claim he needs to inform the other two credit bureaus in order for them to update their records.

It is wise to get a copy of these credit reports annually in order to check it for accuracy.  List down any set of items that you found that is inconsistent or misleading. Sometimes some people see this credit reports as potentially harmful but if view positively the credit reports provided by these credit bureau can help the people manage their finances better, help them not to fall into debt traps and help them improve their credit scores so that they would have more options in the future, if ever they decide to file for a loan.

Consumers must take note also that each of the three credit bureaus operate separately from the other so it is advisable to get copies( one from each) from each of them separately then make a comparison. As a consumer, under the Fair Credit Reporting Act you have your specific rights especially when you believe that you are a victim of an unfair credit report.