Credit Score questions and answers
Posted in credit repair tips on 05/31/2010 03:57 am by
Archive for May, 2010
Everything you Wanted to Know About Credit Repair Software
Posted in Car Expenses on 05/30/2010 04:33 am by
Credit Report – How Do Late Payments Affect My Credit Report And Score?
Posted in Fliers on 05/25/2010 09:46 am by
How to Fix Bad Credit
Posted in Finance on 05/25/2010 03:25 am by
Chane Steiner asked:
The best way to fix bad credit is to take action by removing negative accounts from your credit report as well as adding positive accounts to your credit report. Both of these processes can take some time. The time to start fixing your bad credit is now, not on the day you are ready to apply for a loan. Depending on how bad your credit is, it can take as little as 1 or 2 months to fix and as much as 12 months to fix.
First, you want to know exactly where you stand. You will need to pull your credit reports and know your credit scores. You can get a copy of your credit reports for free once every year, but it costs a little bit to know your scores (unless a banker or mortgage broker is willing to give you a copy for your credit report for free after applying for a loan.)
Once you know where you stand, you will need to analyze your credit reports and find out what is helping and what is hurting your scores. It may take awhile, but it’s worth it to learn how to read a credit report. Once you figure out what is hurting your credit, you will want to dispute the accounts with each of the credit bureaus reporting them. It is legal for you to dispute the account even if it is yours. You obviously don’t ever want to lie to the credit bureaus, so if you know the account is yours, do NOT dispute it as “not mine”.
The burden of proof is on the credit bureaus. All you need to say is something along the lines of “Please provide documentation that the following accounts belong on my credit report; otherwise please delete this damaging data immediately.” It is then up to the credit bureaus to contact the creditors to verify that all of the information they are reporting about you is correct. Fortunately for you, most creditors keep horrible records and can not verify that the accounts even belong to you. In this case, by law, the accounts must be deleted immediately.
That is one of the best ways to get accounts removed from your credit report but, that is only half of how to fix your credit. The other half is adding positive accounts. I would suggest applying for a few secured credit cards or visiting your local credit union or bank and asking them if they have a credit card with a low limit that can help you rebuild your credit. There are also many other ways to build credit. Make sure to always ask if what you apply for will appear on your credit reports. You want to get credit for paying your bills on time.
Don
The best way to fix bad credit is to take action by removing negative accounts from your credit report as well as adding positive accounts to your credit report. Both of these processes can take some time. The time to start fixing your bad credit is now, not on the day you are ready to apply for a loan. Depending on how bad your credit is, it can take as little as 1 or 2 months to fix and as much as 12 months to fix.
First, you want to know exactly where you stand. You will need to pull your credit reports and know your credit scores. You can get a copy of your credit reports for free once every year, but it costs a little bit to know your scores (unless a banker or mortgage broker is willing to give you a copy for your credit report for free after applying for a loan.)
Once you know where you stand, you will need to analyze your credit reports and find out what is helping and what is hurting your scores. It may take awhile, but it’s worth it to learn how to read a credit report. Once you figure out what is hurting your credit, you will want to dispute the accounts with each of the credit bureaus reporting them. It is legal for you to dispute the account even if it is yours. You obviously don’t ever want to lie to the credit bureaus, so if you know the account is yours, do NOT dispute it as “not mine”.
The burden of proof is on the credit bureaus. All you need to say is something along the lines of “Please provide documentation that the following accounts belong on my credit report; otherwise please delete this damaging data immediately.” It is then up to the credit bureaus to contact the creditors to verify that all of the information they are reporting about you is correct. Fortunately for you, most creditors keep horrible records and can not verify that the accounts even belong to you. In this case, by law, the accounts must be deleted immediately.
That is one of the best ways to get accounts removed from your credit report but, that is only half of how to fix your credit. The other half is adding positive accounts. I would suggest applying for a few secured credit cards or visiting your local credit union or bank and asking them if they have a credit card with a low limit that can help you rebuild your credit. There are also many other ways to build credit. Make sure to always ask if what you apply for will appear on your credit reports. You want to get credit for paying your bills on time.
Don
Deed in Lieu of Foreclosure – A Last Resort
Posted in Finance on 05/22/2010 02:39 am by
Rich Pryor asked:
If foreclosure is looming and you are unable to sell your house, you should consider a ‘Deed in Lieu of Foreclosure’. Basically you are giving the house back to the lender, rather than making them go through with the foreclosure. A foreclosure on your credit report is extremely damaging and will make it nearly impossible for you to buy another home for at least 3-5 years.
If you successfully negotiate a deed in lieu with your lender, it SHOULD keep the foreclosure off your credit report. You must confirm with your lender specifically if that is the case and, if necessary, try to negotiate it as part of the deal. It is considerably less expensive for the lender to simply have you deed them back the house, rather than pay the attorneys to complete all the papers to actually foreclose and go to the Sheriff’s Sale. Tell them you will move out and leave the house clean and in good shape, but you do NOT want the foreclosure on your credit. Insist that they put this in writing, but if they will only tell you verbally then be sure to send THEM a letter, certified mail return receipt requested. Simply write, ‘Dear John, this letter is to confirm our verbal agreement on xx/yy/zz that if I agree to a deed in lieu of foreclosure, you agree the foreclosure will not appear on my credit report.’
However, A Deed in Lieu may not be your first, best option. If you have significant equity, you should work diligently to find a way to sell it to a private party or an investor and recover the equity! If you agree to a Deed in Lieu or the lender completes the foreclosure process, any equity you have is lost. If you have no equity and are just ready to deed the home, it is always better to deed it to the lender than an investor. By deeding it back to the lender, you are terminating the loan agreement and walking away. If you deed it to an investor, the loan is still in force and in your name; if the investor fails to follow through on their promise to make the payments, the foreclosure could proceed, and you would be powerless to stop it. Again, be sure your investor is established and has adequate financial resources to make the payments on your home.
There are dozens of other ways to prevent foreclosure, and most people should not have to resort to a deed in lieu, provided that they address the problem as early as possible and communicate well with their lender. But if all else fails, keeping the foreclosure off your credit is better than nothing.
Joe
If foreclosure is looming and you are unable to sell your house, you should consider a ‘Deed in Lieu of Foreclosure’. Basically you are giving the house back to the lender, rather than making them go through with the foreclosure. A foreclosure on your credit report is extremely damaging and will make it nearly impossible for you to buy another home for at least 3-5 years.
If you successfully negotiate a deed in lieu with your lender, it SHOULD keep the foreclosure off your credit report. You must confirm with your lender specifically if that is the case and, if necessary, try to negotiate it as part of the deal. It is considerably less expensive for the lender to simply have you deed them back the house, rather than pay the attorneys to complete all the papers to actually foreclose and go to the Sheriff’s Sale. Tell them you will move out and leave the house clean and in good shape, but you do NOT want the foreclosure on your credit. Insist that they put this in writing, but if they will only tell you verbally then be sure to send THEM a letter, certified mail return receipt requested. Simply write, ‘Dear John, this letter is to confirm our verbal agreement on xx/yy/zz that if I agree to a deed in lieu of foreclosure, you agree the foreclosure will not appear on my credit report.’
However, A Deed in Lieu may not be your first, best option. If you have significant equity, you should work diligently to find a way to sell it to a private party or an investor and recover the equity! If you agree to a Deed in Lieu or the lender completes the foreclosure process, any equity you have is lost. If you have no equity and are just ready to deed the home, it is always better to deed it to the lender than an investor. By deeding it back to the lender, you are terminating the loan agreement and walking away. If you deed it to an investor, the loan is still in force and in your name; if the investor fails to follow through on their promise to make the payments, the foreclosure could proceed, and you would be powerless to stop it. Again, be sure your investor is established and has adequate financial resources to make the payments on your home.
There are dozens of other ways to prevent foreclosure, and most people should not have to resort to a deed in lieu, provided that they address the problem as early as possible and communicate well with their lender. But if all else fails, keeping the foreclosure off your credit is better than nothing.
Joe
Alternative Ways To Fix Your Credit!
Posted in Finance on 05/20/2010 12:25 pm by
Mary Wise asked:
Though there is not a quick way of reestablishing credit, these tips can aid you in the process. Patience is necessary since raising your credit score won’t happen in a day or two. It can take months or even years to rebuild your credit history depending on the amount and seriousness of the delinquencies that have affected your credit.
Make Sure Creditors Are Reporting All Your Timely Payments
You can have creditors adding good information to your credit report. Creditors are not required to report information to any of the three credit bureaus. After obtaining copies of your credit reports, make sure to note if there are any creditors with whom you have a good history that haven’t reported this to the credit bureaus.
If this is the case, contact them and ask them to release the information to the credit bureaus. For a small fee, a credit bureau will contact your creditor. Simply call and give the credit bureau your creditors name and phone number. Positive repayment information can help neutralize some of the negative information on your credit report.
Tell Your Story
Add a statement to your credit report telling your side of the story. You may include a 100-word statement in your credit report to explain negative credit reports. Write each credit bureau a letter and ask them to include your statement in your credit file. State the facts about your situation. If your credit history shows that you typically pay your bills, a statement can explain away an isolated instance or period of bad credit.
Most financial transactions and situations are susceptible of being proved. Thus, don’t waste your time making up stories, if you have a good justification for the delinquencies that appear on your credit report, add the statement. Otherwise, refrain from doing so and concentrate on improving your credit score by making all your payments on time.
Keep Creditors on Your Side
You can also work with your creditors to clear your credit record. If your poor credit resulted from circumstances that were beyond your control, like illness or losing your job, make sure to keep in contact with your creditors. Once you have reconciled your account, your creditor may be willing to remove negative information from your credit report or at least report you’ve brought your account current.
If you can’t make your payments, contact the creditor and propose a pay-off schedule. If the creditor has charged-off your debt, they may work with you. You may be able to work out a proposal in which you make partial payments, and the creditor changes the information it provides to your credit bureau. Be sure to get your agreement in writing.
Linda
Though there is not a quick way of reestablishing credit, these tips can aid you in the process. Patience is necessary since raising your credit score won’t happen in a day or two. It can take months or even years to rebuild your credit history depending on the amount and seriousness of the delinquencies that have affected your credit.
Make Sure Creditors Are Reporting All Your Timely Payments
You can have creditors adding good information to your credit report. Creditors are not required to report information to any of the three credit bureaus. After obtaining copies of your credit reports, make sure to note if there are any creditors with whom you have a good history that haven’t reported this to the credit bureaus.
If this is the case, contact them and ask them to release the information to the credit bureaus. For a small fee, a credit bureau will contact your creditor. Simply call and give the credit bureau your creditors name and phone number. Positive repayment information can help neutralize some of the negative information on your credit report.
Tell Your Story
Add a statement to your credit report telling your side of the story. You may include a 100-word statement in your credit report to explain negative credit reports. Write each credit bureau a letter and ask them to include your statement in your credit file. State the facts about your situation. If your credit history shows that you typically pay your bills, a statement can explain away an isolated instance or period of bad credit.
Most financial transactions and situations are susceptible of being proved. Thus, don’t waste your time making up stories, if you have a good justification for the delinquencies that appear on your credit report, add the statement. Otherwise, refrain from doing so and concentrate on improving your credit score by making all your payments on time.
Keep Creditors on Your Side
You can also work with your creditors to clear your credit record. If your poor credit resulted from circumstances that were beyond your control, like illness or losing your job, make sure to keep in contact with your creditors. Once you have reconciled your account, your creditor may be willing to remove negative information from your credit report or at least report you’ve brought your account current.
If you can’t make your payments, contact the creditor and propose a pay-off schedule. If the creditor has charged-off your debt, they may work with you. You may be able to work out a proposal in which you make partial payments, and the creditor changes the information it provides to your credit bureau. Be sure to get your agreement in writing.
Linda
Free Credit Report Credit Score Services Online – Do They Exist?
Posted in Lending Institution on 05/19/2010 03:15 pm by
Credit Report Repair: Strategy #9 Get Physical
Posted in Howto on 05/19/2010 07:00 am byCreditRepairExpert asked:
Credit bureaus will give you lower scores if you use a PO Box or Mail Drop location when you apply for credit. Rural Routes with PO Boxes result in lower credit scores as well. Your efforts to protect your privacy by not using your home mail box work against you thanks to the credit bureaus.
Brittany
