Frank Lucer asked:


It is an unfortunate truth that the credit repair industry as a whole has taken a lot of heat because of the actions of several unethical and (sometimes) illegal credit repair organizations.  The Federal Trade Commission has worked with various states\’ attorneys general to shut-down those credit repair companies that operate outside of legal procedure.  When choosing a company to help repair your credit, it is imperative that you look for an established company, which has passed the review of the FTC, Attorneys General, and the Better Business Bureau.  In addition, there are other things you can look for to help you make a good decision about your credit repair.

Things to look out for before hiring a credit repair organization:

* Offering to \”create a new identity\”

* Claims that they can remove debts, liens, and bankruptcies from your credit report

* Claim to remove accurate negative information from your credit report

* Not up front about what you can do legally on your own

* Asking for money up front before services are rendered (which may violate \’right of rescission\’ laws

* Make outrageous guarantees about how quickly or effectively they can remove items on your report

What does a true credit repair firm do that makes them a legitimate company?

* Can only help remove inaccurate information on your credit report

* Provide comprehensive consulting on how to be a better consumer

* Have established relationships with creditors and the big three credit bueaus

* Be up front about the cost, only require a relatively small startup fee, and offer services risk free with a \”cancel at any time\” policy

* The startup cost follows state mandated \”right of rescission\” periods in which they do not actually charge your credit card until after the period has ended

* Have successfully served many clients, with a relatively small number of complaints from customers, and proof of their services provided.

* Never trust a guarantee that we can \”clean up your credit\” and make sure the company is up front about the fact that credit repair is typically a 3-6 month process and can even last 1 full year

* Be transparent about what they do and how you can actually repair your own credit without their services

* Ensure they are not on the FTC watch list or in their database of credit repair scams

Even the most compliant, transparent and industry leading comapanies are sometimes powerless to help certain credit situations facing consumers.  There are many credit organizations that make false claims, and because of this some customers may have inaccurate information about what can legally be done to help them repair their credit.  If a credit repair company cannot help you, it is their duty to give you advice on how to best handle your situation, and not sign you up for additional services that you don\’t need.

The act of credit repair is legal and it is within the rights of the consumer to pursue the removal of inaccurate credit repair information through any legally-acceptable channel available to them.  Keep in mind, however, that involvement with any illegal credit repair scheme could result in you receiving punishment for your involvement.  Most commonly, credit repair scams are brought up on charges of mail or wire fraud, or the federal crime of falsely reporting information to the IRS or credit organizations.  These accusations are not taken lightly, and it is not worth the risk of being involved in a credit repair scam to repair your credit when perfectly legal and acceptable solutions are available.

If you believe you may already have been a victim of a fraudulent credit repair company, do not hesitate to report the case to the Attorney General in your state, to file a claim with the Better Business Bureau, or visit www.fraud.org and report your experience there.

Ian Webber asked:


Credit Repair Done Right

If you want your credit repair effort to succeed you need the right credit scores and credit reports. The wrong approach can put you on the path to lower credit scores and frustration. The information you are about to read may shock and amaze you. But if you do it right you will have a great advantage and avoid some serious frustration.

The Scores You Need

Do you know what your credit scores are? Are you sure? If you are going to begin a credit repair effort and want to benchmark your starting point you should do it right. Here’s the problem. The credit scores sold by the credit bureaus are not the same scores lenders use. Huh? That’s right; the credit bureaus created their own credit scores to cash in on the market opportunity. If you muddle through the fine print at the credit bureau websites you will discover the disclaimer.

Avoid Those Imitation Scores

This unfortunate fact applies to the army of credit resellers on the web as well. There is another problem with bureau scores. You may think that even an imitation score will serve your credit repair purposes, believing that your progress should be reflected in some way. I’m sorry to say that these scores do not behave the same as your real lender scores and are almost sure to result in disappointment.

MyFICO, the Right Score for Credit Repair



If you want your real scores you have to go to MyFICO.com the website of Fair Isaac Corp, the creator of the FICO score. The current cost of scores is about $50 for all three combined. A bit pricy, but it’s the only game in town. And for those intrepid credit repair warriors that want more detail, Equifax does in fact sell a FICO score. Unfortunately, they only make it available for your Equifax report, and you definitely want all three scores for your credit repair effort. Also, they use an older release of the formula, so the results will vary.

But Nix on their Credit Reports



So, head on over to MyFICO and get your scores right from the source. It’s the right credit repair choice. But there is another twist. Although MyFICO is the only way to get your scores, the credit reports they provide are the pits. For some strange reason MyFICO blocks out virtually all of the account numbers and offers only about half of the information that your credit repair effort will need. So get your wallet out again because you will have to buy your reports elsewhere. It takes few bucks to get your credit repair underway, but it’s worth doing it right.

The Right Reports



Although the credit bureaus peddle poor credit score products, they offer excellent tri-merged reports, full of all of the detail you need for your credit repair project, and when it comes to credit repair every detail matters. I’ve taken you down a twisty road so far, and I’m sorry to say that there is one more twist on this journey before we arrive at our goal.

Credit Repair and the Right Deal



Here is the final twist. The credit bureaus want to sign you up for monthly membership, hence the offers of free credit reports in exchange for joining this or that service. If you are not careful your free credit report will end up costing you hundreds of dollars. If you want to join a monthly service, that’s another story. There are benefits. But if you just want to get your credit repair underway and want a good cheap tri-merged report you have to look very carefully.

Hiding in Plain Sight

TrueCredit.com offers the best cheap one shot tri-merged report on the web. But it’s not easy to find, so don’t just run off to TrueCredit and think you’re going to find it clearly advertised. In fact, it’s about the last thing that they want you to buy. But it’s there, hiding in plain sight. Well, almost. Scroll down the home page. Look under the main picture for small print in light gray that says that coverage is not available for residents of New York.

Credit Repair Treasure Hunt Success

Right under that line you will find another line that says that you can also get your 3-bureau credit report without the free score. Click on the words, without the free score. It’s a credit repair treasure hunt. How hard can they make it? Wow. Make sure to uncheck the two boxes where they try to sell you two other ridiculous items that have no use for your life, not to mention your credit repair efforts. Now you have the tools you need to get started. Good luck!

Copyright © 2008 Ian Webber. All Content. All Rights Reserved.

Maggie Gee asked:


How healthy is your Credit Rating?  Do you know that a good Credit Rating can significantly enhance your chances of obtaining a low interest loan? It can open the door to other important choices in your life, and even affect your job application.

1.    Getting your House in order

In the current financial climate now more so than ever, it’s imperative to get your house in order. As lenders become tighter on what they look for in a customer this has left vulnerable people exposed to lenders with higher interest. Therefore having a good Credit Rating could be the key in making sure you keep your head above the water and stay away from the sharks.

2.    The Key to Cheaper Finance



Why is your Credit Rating so important?  Many people would not give this a second thought, much less actually do something to improve things.  Other people, whilst they may be aware of its existence, they would not necessarily understand the reasons for its importance. 

Basically a good Credit Rating is the key to finding cheaper finance.  There are lenders prepared to lend to the ‘higher risk’ category of person, but these lenders will create different categories of loans to which those people with lower credit scores would qualify.  These different ‘categories’ of loans work in favour of the lender, and those with the lower credit scores will invariably have to pay higher interest rates, and incur less favourable conditions than those with a higher credit rating score. 

That’s unfair, you may say, but if you consider it from the other side of the coin, the lenders do have to guarantee their own business as well.

3.    Banks look at your Credit Rating Report

It does seem pretty obvious to point this out, but credit reports are principally about assessing you as a safe financial bet.  Banks and other lenders are obsessed with credit ratings.  They need to ensure they are going to get their money back, should they provide you with credit. Therefore your Credit Rating, or your ‘score’ if you will, is going to ensure the banks and lenders can assess your ability to repay.  This is then used to either approve or reject your credit application. If you have been unfortunate enough in the past to default on a repayment or two, your will have a lower credit rating score, and therefore you may incur a higher interest charge from a lender, should they even consider you at all.

4.    Somewhere to Live



Other occasions when credit rating reports are utilised is when you are applying to rent or lease accommodation.  This enables the prospective landlord to assess whether you will be in a position to pay your rent on time.

5.    Job Applications

These days there is a trend among employers to use credit ratings when assessing job applicants.  Whilst every prospective employee will be rated on his or her merits, there is a consensus of opinion that a good credit report is a good sign that the applicant is reliable and worthy of consideration for employment.  This seems most unfair, as the time that someone really needs a job is the very time they are probably in greater need of cash to help ease their financial problems.

Check out your Credit Rating Report

To get a free credit report simply Google ‘free credit report’.  It’s as easy as that!  Ok you will have to submit full details about yourself and your credit card, but once this is complete you can instantly log on to your free credit report.  Remember to cancel your membership before the end of trial period, otherwise you will be billed for the membership.

So, with the above in mind it stands to reason it’s in your own interest to keep your credit rating squeaky clean.

This article may be copied and distributed, so long as the signature file and active links are also included.

Clint Jhonson asked:


While it may seem like there is little hope if you have a poor personal credit rating, there are steps that you can take to repair it. Working proactively to repair your credit will save you money over the long term as you will be in a better position to secure financing at attractive interest rates. While some individuals hire credit repair agencies to follow this process for them, others work through these tips to repair their credit on their own.

Follow these 5 tips to help repair a bad credit rating:

1-    Create a List and Organize Your Debts

The first thing to do when working on repairing your personal credit is to take a thorough inventory of all of your debts. Create a list of each consumer debt, the amount owed, the current interest rate and the minimum required monthly payment amount. You will need this information as you work through the remainder of the tips so even though it will take some time to become better organized, completing this step will save you money over the long term.

2-    Review your Current Credit Report

Be sure to request a copy of your current credit report from each credit agency for review. It is important to review reports from each reporting agency as they can each contain slightly different information and numerical scores. As you review each credit report, be sure to begin with checking your personal information. Is your name spelled correctly? Are there any versions of your name that have been listed on the report incorrectly? Review the listed addresses for accuracy. Then, review each credit account listed on the report to ensure that you in fact utilized credit from the company and that all related information is correct. Identity theft has become common so it is important to review each component, including the bad credit components to ensure that they are related to you personally. If there is something that has been reported incorrectly, report this finding immediately to the credit agency and to the company reporting the credit extended to you. If the information can be proven to be false, it will be removed from your credit report, therefore improving your score.

3-    Write Responses to the Credit Reporting Agencies

To elaborate on the process of managing facts and information that have been reported on your personal credit report incorrectly, the first step in the process is to create written responses. Create letters for each incorrect fact noticed and send them both to the credit reporting agency and to each individual reporting account. Continue to send letters until they respond or until the item has been corrected or removed from your report.

4-    Begin to Re-Build Credit

Once you have removed the negative items from your personal credit report, you will need to begin work on rebuilding your score. Start by using secured credit cards or personal loans. These credit lines extend small amounts of credit based upon you providing the capital that the credit lines are secured against. As you use the credit and repay on time, your credit score will be strengthened. And, once it has been strengthened enough, you will be able to apply for and secure unsecured credit lines. Be patient and work to conservatively build your credit over time.

5-    Learn to Use Credit Wisely

The last and probably most important step to take when rebuilding your credit is to learn how to use credit wisely. Consumers run into financial problems when they overextend themselves financially, they borrow too much for their personal incomes or they improperly use the credit that has been extended to them. Use only the credit that you need at the time of purchase or learn how to view credit as a way to leverage your current financial standing. Credit should not be used to purchase items that you cannot afford as over time, you will be placing yourself into a challenging financial situation. Also, learn to use credit for purchases such as homes, property and automobiles instead of just everyday consumer purchases. By learning to use credit wisely, it will be available when you are looking to make these wise financial purchases in the future.

Mark Aucamp asked:


If you believe everything in the news these days, it’s almost impossible to get a good deal on credit. Luckily, that’s just not true. If you have a good credit rating, you can still qualify for some great deals – whether you want a card, loan, mortgage or simply the right mobile airtime package. Follow these tips and you could see a real improvement to that all-important number.

Month 1

Understand credit ratings

When lenders decide whether to grant you credit and what interest to charge, they calculate your credit rating (also known as a credit score) to assess the likelihood that you will repay what you owe them. They do this by allocating a value to items from your application and your credit report – the personal history of your credit accounts, such as loans, cards and mortgages – and adding them up to get a single number. In general, the higher your score, the easier you’ll find it to get credit.

You don’t have a single credit rating, as every lender uses a different formula. Your credit score also changes over time, as your circumstances change – which is where these tips come in.



Check your credit report

It’s crucial that this is up to date and accurately reflects your circumstances, so lenders don’t turn you down unnecessarily or lend more than you can really afford to repay. Start by getting an overview of your credit accounts and how well you’re managing them. You can see your Experian credit report online with a 30-day free trial of the credit monitoring and ID fraud protection service CreditExpert.

It’s an urban myth that your credit rating suffers every time you look at your own report. In fact, checking your credit report regularly could help you to manage your finances better and build a better credit score.

Month 2

Register to vote at your current address

The electoral roll is used to confirm that you live where you say you do – you may lose points if you don’t appear and lenders may ask you to provide further proof of residence or even turn you down.

Set the record straight

If you find any discrepancies on your report, such as an account that is closed but is listed as open or a late payment that you know you made on time, get in touch with the relevant lender and explain the problem. Be prepared to provide proof and ask them to amend the entry.

Month 3

Give yourself some breathing space

Look for zero per cent balance transfers or spending deals on credit cards, which will give you some breathing space while you sort out your finances – but remember to save up the money to repay them when the introductory period is up.

Close unused accounts

Target unused accounts listed on your credit report and close them down. Lenders take into account the amount you could borrow when they decide what to offer you. Lower that total and you could increase your credit score.

Month 4

Make the most of savings on your mortgage

If you have a tracker mortgage that has benefited from the record lows in interest rates, now’s the time to consider whether paying off more of your home loan will leave you better off rather than using the surplus to repay other debts. Check first that you won’t be penalised for any early repayment.

Rationalise your borrowing

Get out your statements and work out which of your remaining accounts are costing you most in interest, then do your research to see if you can roll them up into a single, less expensive loan. If that’s not possible and you have spare cash, use it to pay off these debts first – you’ll be better off than if you keep the money in the bank and, as your balance falls, your credit rating could rise.

Month 5

Explain yourself

Past financial problems such as missed repayments stay on your credit report for at least three years, while IVAs and bankruptcies are there for a minimum of six years. If special circumstances explain why you got into trouble, you can ask to add a note of explanation that will be seen by lenders. For example, you might have had an accident and skipped a few repayments but have never had any problems before or since.

Sweep up your footprints



Every time you make an application for credit, the lender will search your credit report and leave a record known as a footprint. These stay on your credit report for 12 months and lots of these in a short space of time can make them fear that you’re desperate for money or even suspect that a fraud is being planned, so if you spot something listed as an application when you were only asking for a quotation, contact the lender and ask for it to be removed. When you want to know what kind of a deal you can get, be careful to ask for a quotation search that won’t count against you.

Month 6

Protect your ID



ID fraud is one of the fastest-growing crimes of the 21st century. It takes place when a criminal gets hold of enough of your personal data and impersonates you, take over your accounts, borrow money in your name – and trash your credit rating. When you check your credit report, look out for unfamiliar transactions or applications and tell the lender immediately if you think you’re a victim. The Home Office recommends this as an effective protection.



Update your relationships



One section of your credit report lists your financial associates – people with whom you have a financial relationship, such as a mortgage or joint credit card account. Lenders may check the credit reports of your financial associates when you apply for credit, as their situation could affect your ability to repay what you borrow, so it’s important to ensure that the list is up to date – or you could be penalised for someone else’s financial problems. It’s always best to close joint accounts when a relationship ends.

So how are you doing?

See whether you’ve boosted your credit rating by ordering your Experian Credit Score for £5.95 at any time when you check your Experian credit report with CreditExpert. It won’t be exactly the same as one calculated by a lender but it will demonstrate the impact of your credit history on your credit score and help you to track your progress.

mrdeservn913 asked:


I have no idea where to start to repair my credit. They are always offering free credit reports but I am leary of that. Could someone please tell me where to start?

Michelle B asked:


I am trying to raise my credit score quickly. Right now I am at 593-around 650 depending on agency. So, by paying off the 5 credit cards that I currently have(some with amounts ranging from 1,500-2,500), should that raise my credit score a great deal? If not, will a credit repair company help or are they just a scam?

Kameko Oliver asked:


Having a bad credit score has several implications, one of which is that it can affect your chances of getting a loan. To fix a bad credit score, many people find it advantageous to try credit repair. Some of the ways of doing credit repair include keeping debt in control, getting copies of credit reports and disputing inaccuracies, doing goodwill negotiation, and seeking help from companies that provide credit repair services.

Keywords:

credit repair,credit report repair, FICO score

The effects of having bad credit can be far-reaching. Among the main disadvantages of having a bad credit score is that it can affect your chances of getting a loan later on, prevent you from getting a new credit card, or even keep you from being accepted for a job. Lenders such as banks and other financial institutions will take a look at your FICO score to see whether you are capable of paying back the loan. This FICO score is an indicator of the likelihood that you will default on a loan. If your FICO score is low, chances are you’re going to be turned down when you ask for a loan. Aside from that, credit card companies are likely to refuse your applications for a credit card in case you want a new one.

Start taking control of your debt.

The first thing you have to do once you realize that you have bad credit is to take the time to think about how you’re going to improve your credit score. There are many ways by which you can do credit repair, and it’s always best to start early. You can do credit repair by yourself, or you can choose to get some help from companies offering credit repair services. One of the most important steps you have to do is to make sure that you keep your debt under control by avoiding accumulating any more of it.

Get copies of your credit reports.

Before you start doing credit report repair, you first have to know what exactly you need to fix. Your credit reports contain information that lenders and other companies will see, and it would be good for you to get copies of your latest credit reports from the three credit bureaus. In case you find some inaccurate, outdated, or misleading information on any of these credit reports, then you should dispute the information so that they can be removed from your report.

Do credit repair by goodwill negotiation.

If you want to get some information removed from your credit reports, you can do this by doing goodwill negotiation. Goodwill negotiation is a way to do credit report repair by negotiating with creditors and asking them to remove various questionable items on your report. It won’t cost you anything to do this credit repair, and having several items removed from your reports can make a substantial difference. 

Do credit report repair by credit disputation.

According to the Fair Credit Reporting Act, you have a right to contact credit bureaus directly and dispute questionable items on your reports. When you do this, the items you dispute will have to be reviewed by the credit bureaus. In case they don’t find any proof that the items you’re disputing are correct, then they will be obliged to remove those information from your reports.

Get help from companies providing credit repair services.

If you’re having a difficult time doing credit repair on your own and you want the help of professionals, you might want to consider contacting companies who are offering credit repair services. They can help you when it comes to negotiating with creditors or disputing items on your credit reports. They can even help you prepare a debt management plan or help you plan ways on how you can pay off your debts quickly and increase your credit score. What’s great about getting help from these companies is that you won’t have to pay as much as you would if you get the help of a lawyer. Aside from that, you can be sure that you’d have the help of a professional who will guide you every step of the way.

justin narin asked:


Your credit rating is something you shouldn’t take for granted. If left to spin out of control, it can cause serious repercussions that will follow you throughout your life. If your credit isn’t the best, or could use an improvement, here are a few ways how you can improve your credit rating.

Make Payments on Time

If you pay your bills late, you’re not only incurring late fees, but you’re also damaging your credit. And if you miss a payment, it’s even worse. Your payment history, even for minor items such as utilities and cable television, is reported to a number of different credit bureaus, so any missed or history of late payments is recorded and weighed against your credit. If you want to build and maintain your credit rating, pay your bills on time and don’t miss any payments. If you have missed payments in the past, get back on track. Your recent payment history counts more than ancient history, so be sure to get back on track… and then stay there.

Pay Off Your Debt

If you have debt, pay it off. Don’t transfer it all to a credit card and then transfer it from card to card to card. If you just move around your debt, you’re not doing anything to pay it down. And even though all your debt might be on your credit card, your credit is still in danger. So, start budgeting to pay off your debt. Pay off that credit card and your other debt payments until nothing remains. If you ignore it, it’s going to haunt you for years to come.

Establish Credit History

Your credit rating is established partially on your credit history. Your credit history is based on the information that your creditors have reported to credit bureaus, including credit cards, loans, and even some utility bills. If you have little to no history, there’s nothing to go off of to establish your rating, so your credit will be established at a lower rate. There are no prior indicators whether or not you’re a delinquent or on-time payer. So, if you want to build your credit, get a credit card, charge a few things, and pay off the majority of the balance. Financial experts recommend keeping your account balances less than 50% of your available credit. It shows that you have the ability to pay back your debt.

Don’t Apply for or Take on Too Many Credit Cards

Having and using a credit card wisely can be beneficial to your credit rating. However, if you’re constantly applying for new credit cards, it can hurt your rating, especially if you’re getting turned down for them. Applying for too many credit cards, in a way, shows that you don’t have enough capital to afford your cost of living on your own income. And if you’re getting turned down by creditors, it’s an indication that your credit standing just isn’t up to par, and other creditors will weigh these rejections against you.

Your credit can make or break you. Your credit rating dictates the interest rate you get on loans and whether or not you qualify for additional credit. If left to grow uncontrollably, your credit can be the death of your ability to purchase a home, a car, or even get basic cable television. If you want to improve your credit score, don’t let it spin out of control. Pay off all debts, continue your credit history, and pay everything on time.

For more articles on Credit Rating visit: http://www.bills.com/credit-score/

Catherine B asked:


I’d like to know of anyone who has actually used Lexington Law credit repair and of their experience. I have gotten mixed reviews on the company, so I’d like to hear from some actual users. Was it successful? How long did it take? Any problems? How was their communication/customer service? Do you get to talk to a real lawyer ever?