Credit Repair has a Secret Weapon

By Marc Chase

Credit Repair can be easy if you have the right tools. One of the hardest parts of repairing your credit report is deciphering the laws. This "how to" article is written in terms that are easy to understand and cut through the legal jargon.

Let's say you owe Mike (original creditor) $100.00 and a Guy named Steve (collection agent) comes up stating he wants $100.00 on behalf of Mike. Would you just hand him your money, or ask for proof of who he is and that he has the right to collect the $100.00?

This is called Debt Validation and is a very powerful tool for credit repair. Let me explain.

You can write Steve and ask for the following and he must provide it all or he cannot collect the $100.00, nor can he report it to the credit bureaus.

• - A contract between him and Mike proving he owns the debt or was hired to collect it. Think about it. If he cannot provide that contract, he is just some guy named Steve asking for $100.00
• - Account statements from Mike. Perhaps you paid mike $20.00 of the $100.00. Mike will have records of that. Steve has to provide you with that and IT CANNOT BE his own statements - they have to be from Mike.

This is important! Steve (collectors) like to provide their own printouts and this is not legal. It must be Mike's original accounting and come directly from Mike. So, here's the process to credit report repair, using Debt Validation:

Step 1: Send a letter to Steve Requesting the above information e.g. proof he has the right to collect the debt and Mikes original statements which itemize the debt and payment history.

Step2: Dispute the debt with the Credit Bureaus at the same time.

Step3: Wait about 30 days and you'll get a letter from Steve which will have one of the following results.

Most Common: Steve's own printout which is a violation of the FDCPA, you can then sue Steve and have it removed from your credit report. Remember, it must be Mike's personal records.

Pretty Common: No response in which case it will be removed from your credit report.

Somewhat Rare: Steve Provides the contract showing he has the right to collect the debt, a copy of thecontract you signed with Mike and your payment history.

The latter is the legal method for Steve and is Rare. For some reason, Steve (collectors) still are not smart enough to follow all the rules. However, if he finally got smart and provided all the information that is required, you have one more trick.

Check and see if he is licensed in your state to collect debts. Most states require licenses, bonding and insurance to collect debts. It is very common for Steve to get those items in his own state, but not each state he attempts to collect in.

If your state requires those things, Steve must obtain them in your state and any state he attempts to collect in or he has no right to collect.

Marc Chase is a Partner at My Credit Group Inc. – A nationally recognized authority on credit report repair and authors of "The official guide to credit repair & credit repair companies."

Fix Your Credit Now While You Still Can

By FJ Tapia

There is probably nothing more important in our financial world as our unique credit score. This score also known as the FICO score can have an immense impact on our financial lives both good and bad.

Let's spend some time on discussing one who has a lower credit score between 300 and 620. Such ones are deemed high credit risks with those lower numbers probably not getting any credit whatsoever.

Your FICO scores when in this low range will cost you in getting loans in the first place. Then if you are lucky enough to get a loan or credit card, your finance rates will be very, very high. This ultimately means a higher monthly payment.

Persons who are in this category are indeed a financial risk and are undeserving of any good rates at the present time. Alot of persons in this predicament are also irresponsible in that they do not even take the time to ask for their free credit report so that they can study their financial being on paper.

And although there aren't many secrets in this world anymore, information that you do not know or have access to might as well be a secret. And in this case, their are many secrets that most attorneys and credit repair companies hope you never find out.

But the situation gets worse.

There are mistakes on your credit report. But they just won't go away. You must take the proper steps in getting them removed and it does not take a rocket scientist to do this.

But the interesting point is, no matter how many mistakes exist on your credit report, it's your responsibility to get them addressed and removed if possible.

In fact, you can get any item removed on your credit report that the credit bureau cannot legally proves to exist. If you have late payments or charge-offs on your credit report, many of these can legally be removed even if accurate. Why? Because only those items that can be proved to exist with legal documents can remain.

Read that again. The only negative information that can remain on your credit report is NOT what is accurate, but what the Credit Bureaus can prove to be accurate under the F.C.R.A.

Although I do not advocate shirking your responsibilities by not paying, the Fair Credit Act does provide legal avenues for ones to challenge items on one's report that are clearly erroneous and items that creditors can no longer prove.

Expert financial consultant Floyd Tapia addresses an issue that few people really know about. You do not have to live with bad or no credit. You can do something about it today that is legal and is guaranteed to work. Knowledge is power; use this power wisely. http://www.YourBadCreditGone.com

Credit Repair - Tips And Tricks That Work

By Collins Deconle

When you apply for credit, your lender will request a credit report from a credit reporting agency. A credit reporting agency pulls together a credit report electronically. It collects information about your financial transactions and credit history and compiles them into a report that other credit grantors can review. The subscribing companies use the information to evaluate your credit worthiness.

If you have made financial mistakes in the past, it's not too late to start fixing your credit report today. Here you'll discover the little tips and tricks you can use to convince the lenders and creditors you're trustworthy.

The first step to repairing your credit is to check your credit report. You are entitled to one free credit report per year. To get your report, contact the credit bureau that has your file. You are also entitled to a free credit report if you have been denied credit within the past 60 days.

Once you receive your credit report, review it carefully to spot any errors. Inaccurate information, especially if they are in a derogatory status can significantly impact your credit rating and the possibility of qualifying for credit or a loan. You need to make sure that all information is being reported correctly.

You have the right to demand verification of negative information on your report. If you believe some of the items on your report are inaccurate, you should demand that the items be verified.

By law the credit bureau must investigate the matter within the alloted time. If the item cannot be verified it must be removed from your file. The credit bureau must provide you with a free copy of your corrected credit report.

Send your dispute letter to the credit bureau via certified mail, return receipt requested.

If the credit bureau completes its investigation and decides that the negative information should remain in your file, you can add a one hundred-word explanation to refute the claim.

Once you have finished erasing negative items from your report, the next step is to rebuild your credit. You can add positive credit items to your report by taking out a small secured loan or obtaining a secured credit card. You can also build good credit by having someone with a good credit record cosign on your application for a small loan.

Collins DeConle is the owner of http://www.aboutcreditrepairhelp.com This website is jam-packed with articles, ebooks and the latest secrets on credit repair.

Is Your Credit Card Debt Spiralling Out Of Control

By Brian Wilton

A credit card is a useful way to spread payments throughout the month and means you don’t need to carry too much cash with you. You could also use your card to obtain a loan for a small amount over a short period. However, credit cards should not be used as a way of borrowing money over a long period. The less you pay off the more interest you will end up paying and the rate is likely to be much higher than a bank loan.

If you do not pay the full amount due on your credit card each month then a credit card debt will soon mount up. Credit cards are easy to use and it can be tempting to continue spending with no plans to repay the debt in full. If credit card debt is ignored then at some point it will have an impact on other areas of your personal finances.

Even if you make the minimum monthly payments this may only be 3% of the total bill. You will be charged a high rate of interest on the remainder so within a few months you may find your debt spiralling out of control.

If you are in this situation then you need to take action to reduce your credit card debt. First you should aim to limit your spending and ideally stop using the card. If you cannot clear the debt then at least aim to pay off more than the minimum each month. This will reduce the amount of interest added.

You could consider switching cards as many providers offer special deals on balance transfers. For example you could get a low, or even zero, interest rate for six months. If you can clear your debt within the low rate period then it is worth switching. However, if not then you will quickly loose any advantage once the rate reverts to normal.

Credit card debt settlement can also be achieved using a debt consolidation loan. This would involve taking out a personal loan at a lower rate in order to pay off your credit card debt. However, make sure you check all the small print for unexpected charges and restrictions on any new loan. Also remember that credit reference agencies keep track of credit and loan applications, and also report on your payment records. If lenders think you have too much outstanding credit then further applications may well be refused, particularly if you have missed payments.

Brian Wilton is prolific provider of clear and simple advice and tips on all areas of debt management. His latest card debt advice can be found at http://www.card-debt.co.uk

Bad Credit Personal Loans

By Daniel Wesley

What are Personal Loans?

Personal loans are usually unsecured loans paid by the credit card companies, banks, shopping stores, hospitals and pharmacies, gas agencies, educational institutions, auto vendors, and so on. If a borrower fails to honor his repayments in time, the lapses are reported by the vendors/lenders to the credit rating agencies such as TransUnion, Experian, and Equifax in the USA and similar national credit rating agencies in case of other countries.

Credit History

A lender, who is approached for a loan by a borrower, will first check the borrower’s credentials from these credit agencies. If the borrower's credit report contains any negative entries, the lender will shy away from offering the loan or if at all he offers the credit, it will be accompanied by a higher rate of interest and also more stringent conditions. Given this fact, it is better that you check your credit report before applying for a new credit as there may be some inadvertent errors in it. Compare the entries on the credit card with the records of your payment receipts and if there is any error, contest it and have it reflected in your credit history. The Fair Credit Report Act allows the borrowers to add the corrections to their credit report. This is important because the absence of any positive information may obstruct the procurement of new credit. In case your credit report does not contain much favorable information about your creditworthiness, you should provide the credit reporting agencies the unreported repaid debts, payments, rent payments and so on. Make a request to the credit bureaus to contact the lender and persuade him to erase the negative remarks.

How to Obtain Bad Credit Personal Loans

If, somehow, your bad credit report for your personal loans is due to the late or non-payment of your loans, there is no need to despair. There are lenders who specialize in providing loans to the borrowers with bad credit. In such situations, you should explain to the lender the circumstances that led to the bad credit and convince him of your sincerity to pay back the loan. You should also support your arguments with proper documentary evidence of your assets, capacity to repay the loans, and your income and expenditure details. Since the money lending market is saturated with lenders, there is a stiff competition to attract the borrowers including even those who request for bad credit personal loans. It must therefore be borne in mind that the lenders are as much interested in providing the loans as the borrowers even with bad credit history are interested in getting them.

Factors to Consider for Bad Credit Personal Loans

Consider a situation when you may want a personal loan for a new car, or, for making improvements in your home. The best thing for you to do is to do some intensive comparison shopping. Browse the net, and you will find that there is a wide array of loans available in the market. On first glance, they may seem attractive but if you do not study the terms and conditions to the minutest detail, you may end up with paying high installments. It is important that you understand the interest rates, the cost of payment protection insurance, early payment charges or penalties and also some contingent circumstances that may affect your ability to repay. Most reputed moneylenders have their websites that list their resources and also informative articles for educating the borrowers about the process of money lending.

These websites also have pages that give the comparative features of each plan offered by the various lenders in the market. You may contact these websites to obtain their quotations. Some web sites also offer online help and so if you inform them about the amount of loan that you need along with a few personal details that may include information on your late payment of loans, credit cards and so on, they will be able to guide you about the loan that would be ideal for you. Also let them know if you have been turned down for other loans and also if you have been awarded any County Court Judgment in any case. No important information should be withheld from the lender to because any future adverse revelations will further affect your already dented credibility.

Bad Credit Personal Loans for consumers with a bad credit history.These loans will definitely involve a higher rate of interest.

Eliminating Negatives from Credit Report

By Jack Tanner

Eliminating negatives from credit report and increasing your FICO score can be both easy and extremely profitable.

If you only increase your credit score by just 10 points, you could save thousands of dollars in interest over the term of a home equity mortgage.

The reason eliminating negatives from credit report is so important is because lenders believe homeowners with poor credit scores are risky.

What's their proof? More than 16% of "subprime" mortgages are delinquent and another 4% are in foreclosure.

Lenders therefore charge higher interest rates and extra fees and points to people with poor credit. So, if you want a lower cost loan, clean up your credit reports and present yourself in as positive a manner as possible before applying for a mortgage.

Begin by requesting copies of your credit reports from Equifax, Experian and TransUnion. These three major credit report companies are now required by law to provide you with one free report each year.

However, don't contact each individual credit-reporting agency directly. They've set up a mutual website, toll-free number and mailing address to make this service easier for consumers.

Just be careful that you go to the official source. The web is crowded with companies out to make a profit by charging consumers money for credit reports that they could get for free.

When you get your reports, check for mistakes. Research shows that three quarters of credit reports have correctible mistakes. And one quarter are serious enough to deny you credit or penalize you with a higher interest rate.

So the smart thing to do is immediately write the credit agency, giving them specific details and requesting your reports be corrected.

Then pay all your past due accounts, since these can significantly lower your score.

Once you're up to date, contact your creditors again and request they remove all records of late payments from your files. If you're persistent, there's a good chance they'll do it.

Next, if you're in good standing with any creditors, ask them to increase your credit limit. This improves your debt to credit limit ratio, which helps to increase your credit score.

But, first make sure they won't pull a credit report on you, since recent credit inquiries lower your score. By the way, personally requesting a free credit report for your own information has no effect on your score.

One last point! In the process of eliminating negatives from credit report, never close inactive accounts. The number and type of different credit accounts you have adds up to about 10% of your total FICO score. And canceling accounts lowers your score.

You're better off making a small purchase to reactivate the account, as active accounts look good and add points.

Following these steps will probably take about six weeks to complete, but they can improve your FICO score by as much as 100 points or more.

This could make the difference in you getting a loan or not and/or saving a lot of money in interest. So it's definitely worth the time and effort.

Jack Tanner blogs about his experiences with home equity loans and rates at www.HomeEquityLoansZone.com. Stop by and learn all the tips and tricks he's used over the years to take advantage of home equity loans.