Bad Credit Online Magazine - Daily News and Advice on Credit, Debt and Mortgage : Credit Repair
Credit Repair
December 12, 2005
Home buyers with bad credit helped by a developer
Bad credit won't prevent Integrated Property Solutions from selling you a home. Moreover, this developer will help you with credit repair and subsequent refinancing too. And did we mentioned, the homes are priced at around $105,000?
They build an several states, including Oklahoma, Georgia, Alabama and Texas. Other states are likely to be in play.
The Integrated Property Solutions helps the buyers to obtain a bad credit mortgage with a steep rate, from 9 to 11 percent. But there is no prepayment penalties and once you credit repaired, you can refinance and drop often up 2 -4 percent.
For details, visit Integrated Property Solutions.
Posted at 09:57 AM
November 17, 2005
Duplicate collection records on credit report
Q: I was wanting to know how you can dispute a collection that is being reported by 5 different collection agencies on the same item? Each shows that I have an unpaid balance.
A: That should be fairly simple. Duplicate collection records should show the same balance and identical original creditor, just point this to all credit agencies reporting it.
If this is not enough, you need to furnish some proof, that there is only one collection agency you deal with, like letters from this collection agency, its phone numbers that show them calling you. For the phone records, ask for a detailed bill from your phone provider.
Finally, you may have some letters from the previous collection agencies showing that the collection was sold, if it ever was.
Posted at 04:45 PM
October 28, 2005
Hawk Alert question from professional
Q: Good Morning - I am a mortgage originator in Ludington, Michigan and I have a customer whose credit report has a Hawk Alert that says she is deceased. She isn't. She is an older lady and doesn't have a computer. How can she get that Hawk Alert fixed? The alert is holding up her purchase of a home. Thanks in advance for your assistance.
A: Did you try the full factual credit report?
I would just initiate the dispute with a credit agency. Use some of the stronger credit dispute letters, modifying them accordingly.
But to make sure they would comply fast, take this nice lady to a public notary with her pension checks or social security checks or whatever she gets, and have the notary put down an affidavit that the present lady is the lady known as such and she is well and alive. You can even take her to the bank where she has an account and do the same. That should take care of this for good.
Posted at 12:10 AM
October 15, 2005
Q & A on statute of limitations for judgments
Q: I just had a restraint put on my bank accounts from a credit card debt from 1988 at which time a judgment was filed. Isn't this past the statute of limitations? I've read that the statute of limitations in New York is 10 years and on other sites I've read it is 20 years. So which is it? Also I got a credit report and it showed no judgments against me and I got approved for a mortgage and a car loan. If this judgment against me was still valid would I have been able to get these loans and wouldn't it have shown up on my credit report.
A: It is 20 years for the money judgments, check NY State assembly:
"
211. Actions to be commenced within twenty years.
(a) On a bond.
(b) On a money judgment.
(c) By state for real property.
(d) By grantee of state for real property.
(e) For support, alimony or maintenance.
(b) On a money judgment. A money judgment is presumed to be paid and
satisfied after the expiration of twenty years from the time when the
party recovering it was first entitled to enforce it. This presumption
is conclusive, except as against a person who within the twenty years
acknowledges an indebtedness, or makes a payment, of all or part of the
amount recovered by the judgment, or his heir or personal
representative, or a person whom he otherwise represents. Such an
acknowledgment must be in writing and signed by the person to be
charged. Property acquired by an enforcement order or by levy upon an
execution is a payment, unless the person to be charged shows that it
did not include property claimed by him. If such an acknowledgment or
payment is made, the judgment is conclusively presumed to be paid and
satisfied as against any person after the expiration of twenty years
after the last acknowledgment or payment made by him. The presumption
created by this subdivision may be availed of under an allegation that
the action was not commenced within the time limited.
"
The judgment should have been on the credit reports under Public Records.
May still appear as it takes up to 3 months now for credit agencies to update credit report trade lines.
Posted at 04:54 PM
October 08, 2005
Bad credit may be the next problem for Katrina's survivors
The homeowners who lost their homes and/or jobs, because of recent hurricanes and now can't keep up with the mortgage payments, can find their credit scores completely ruined.
Bad credit is the last problem these people need, but unless the three credit reporting agencies can find a solution for this very real situation, that is what going to happen. So far Equifax, Experian and TransUnion have declined to participate in the proposed plan that would take "a pre-Katrina credit score snapshot of all residents in the affected areas. Later, when victims apply for loans, the pre-Katrina score could be used to identify whether victims were good credit risks before the storm."
Other proposals are on the table but still there is no any practical solution in sight.
This is very sad situation, needless to say. You lost you house and you will try to rebuild it, but how you can get a decent interest rate with bad credit? These people will need every dollar when they start rebuilding their lives. At least lenders have been understanding somewhat, granting up to 90 days grace periods to those consumers who live in storm zones. But what is going to happen afterwards if people can't find a decent job comparable with the one they held before.
What is going to happen if their houses are still standing. Will they be foreclosed?
Read more on the story
Posted at 05:24 PM
September 26, 2005
Credit Scores - Survey Shows How Much Do We know about them
The Consumer Federation of America and Providian published a survey about the FICO credit score. It mainly shows that we still don't know enough about it or truly understand it.
Here are some numbers at a glance:
- Only 27 % of the people surveyed knew their scores measure only credit risk.
(The Fico score doesn't take in consideration age or income.)
- Nearly 66 % of college graduates surveyed had gotten a copy of their credit report.
- Barely more than 25 % of high school dropouts had seen their credit reports.
(The survey showed that the higher your education and income, the more likely you're to know your credit score)
- Nine of 10 people surveyed knew that lenders check your score before issuing you a loan.
- Only 58 % knew that cell phone companies will check your score.
- Only 57 % knew that homeowner's insurance companies look at your score to decide how much you'll pay.
- Only 23 % named the big three credit bureaus: Experian, Equifax and TransUnion.
Posted at 03:54 PM
September 25, 2005
Credit repair for auto insurance?
Credit repair is a must before applying for a mortgage or a car loan. But bad credit also affects your car insurance payments. If you think I am kidding, I beg you not.
92 of the 100 largest auto insurance companies check your credit report on a regular base. Some do it more often than others. Are they looking simply for an excuse to raise your premium? May be, may be not..., insurance companies are saying that there is a solid connection between the need for credit repair and the number of car accidents - according to a study by the Insurance Information Institute, "Drivers at the bottom of the credit heap file 40% more claims than drivers at the top of the credit heap".
More on credit repair need.
Posted at 04:38 PM
September 21, 2005
Improve your credit score - How To
It won't hurt to remind you that your Fico credit score is not just a number, it's a tool you can use to save money. Here are 5 excellent tips from MyFico.com that we've found in the CNN article about how to improve your credit score with 5 tips. Follow these tips to improve your Fico score:
- Pay your bills on time. Delinquent payments can have a major negative impact on your score and the longer you pay your bills on time, the better your score. For example, someone with an average credit rating of 707 can raise their score by as much as 20 points by paying all their bills on time for one month.
- Keep balances low on credit cards. High outstanding debt can affect your score. Maxing out your credit cards could lower your average score by as much as 70 points.
- Don't open a number of new credit cards that you don't need. New accounts will lower your average account age, which could actually lower your score by up to 10 points.
- Have credit cards - but manage them responsibly. In general, having credit cards and installment loans (and making timely payments) will raise your score. Someone with no credit cards, for example, tends to be higher risk than someone who has managed credit cards responsibly.
- Closing an account doesn't make it go away. A closed account will still show up on your credit report and may be factored into the score.
Posted at 06:03 PM
September 20, 2005
Americans don't understand credit scores
According to the survey which was conducted by consumer advocacy group Consumer Action and Capital One, we, the US consumers, are pretty dumb because we "lack understanding of credit scores" among other unfortunate things. I can actually think of a few questions that lack sense, so I put my comments in italic.
"A majority of Americans surveyed either did not know (31.7 percent) or responded incorrectly (35.1 percent) when asked to define a good credit score (700)". - I wonder if the second figure is so high, because "good credit score" is not a specific number to begin with, but the range from 680 to 699. Credit scores of 700 and above are considered excellent.
"Fifty-four (54) percent of those surveyed wrongly stated that age is a factor considered in determining credit scores." - That is actually a good question. I don't think that anyone knows for sure, except those people who developed the credit scoring models for the big three. But everyone knows that insurance companies charge much more if you are unmarried, young, etc. So it is logical to follow the same model when it comes to credit scoring system. Younger consumers can be more prone to the bad money management and subsequently to credit problems then older ones.
"A majority of Americans (52 percent) do not regularly review their credit report each year. Twenty-three percent of Americans have never reviewed their credit report." - The free annual credit report option became available in December 1, 2004 and for the West only. The Eastern states that include Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, Vermont, Virginia, and West Virginia plus the District of Columbia, Puerto Rico, and all U.S. territories got this option on September 1 of this year. So there weren't many options for consumers to review, unless they were denied credit or purchased credit report.
You can read this survey for your own conclusions.
Posted at 02:04 PM
August 22, 2005
Bankruptcy changes are to become a law soon
Several previous versions of the bill mandating bankruptcy reforms had been defeated in the past. But in March, the Senate passed sweeping bankruptcy reforms. Those reforms are about to make many potential bankruptcy seekers very unhappy. Some consumers will be simply unable to afford declaring bankruptcy.
For many supporters of the bill, the most rational argument is that those who are able to pay for the whatever they bought, gambled or wasted, must pay. As simple as that. Opponents who are in the minority, argue that this bill unfairly targets poor and middle class, while leaving plenty of loopholes for the richer crowd.
This Bankruptcy Law Changes article give a pretty good idea about the changes and consequences.
With the large debt come large monthly payments that are often becoming late ones. Late payments is the fastest thing to ruin someone credit. And with the new law, many may have to start thinking about credit repair. Bankruptcy option may not be available to wipe the debt clean and get a fresh start.
Posted at 08:51 PM
August 16, 2005
Marketer of 'free credit reports' settles FTC charges
"Consumerinfo.com Inc., doing business as Experian Consumer Direct, has settled Federal Trade Commission charges that it deceptively marketed "free credit reports" by not adequately disclosing that consumers automatically would be signed up for a credit report monitoring service and charged $79.95 if they didn't cancel within 30 days, in violation of federal law."
What is interesting, that Consumerinfo.com Inc. is a wholly owned subsidiary of Experian North America, which owns Experian. Experian is one of the three national credit reporting companies.
Under the settlement, Consumerinfo must give up $950,000 and stop false and misleading advertising pushing supposedly free credit reports. It also must disclose all terms and conditions. This comes from Inman Realestate News.
Consumerinfo used TV, radio and internet to promote two websites, www.freecreditreport.com and www.consumerinfo.com promising not only free credit reports but also free trials of a credit-monitoring service as a bonus. Valid credit card was required but not to be charged, just to open an account. But "According to the FTC's complaint, Consumerinfo's advertising and Web sites failed to explain adequately that after the free trial period for the credit monitoring service expired, consumers automatically would be charged a $79.95 annual membership, unless they notified the defendant within 30 days to cancel the service. Consumerinfo billed the credit cards that it had told consumers were "required only to establish your account," and, in some cases, automatically renewed memberships by re-billing consumers without notice. The FTC charged that the defendant's failure to adequately disclose the automatic billing and to get consumers' consent to bill their accounts violated federal law."
We can recommend the only official, FTC approved website www.annualcreditreport.com.
Or you can visit our Free Annual Credit Report website for a few more things to learn, no credit card required.
Posted at 03:35 PM
August 03, 2005
Free annual credit report search can land you in credit troubles
You looked for a free annual credit report on the web and thought you found it. Instead you found a shady credit repair company that subscribed you for its services that you didn't need to begin with, and then turned you to debt collection agency. Can't happen to you? Read this story. And there are plenty more examples of how unscrupulous people trying to redirect you to their websites with only one purpose - to get few of your dollars.
If you want a free annual credit report, you have to know one thing for sure. The only one website approved by FTC and backed up by Equifax, Transunion and Experian is www.annualcreditreport.com.
We at BCA also invite you to visit our unofficial Free Annual Credit Report site that also explains few additional points. And please realize that we don't sell, offer or promote anything on this web page. It is only for your information.
Posted at 01:26 PM
Capital One teams up with Consumer Action to provide stipends in 10 states for financial education
Credit repair is one of the topics that are taught by the ambitious and well needed financial literacy program called MoneyWi$e.
Other topics include development of personal finance skills, credit basics and educating parents on how to communicate money issues with teenagers.
The states are California, Texas, North Carolina, Illinois, Oklahoma, Florida, Minnesota, Georgia, Tennessee, and Virginia. Total of 28 community based organisations will get the stipends.
Read more at Business Wire
Posted at 12:43 PM
July 22, 2005
Lock Down your Credit Report with new Credit Report Freeze option
New credit report freeze option prevents identity theft better than credit report Hawk Alert.
Your credit can be ruined rather fast if your identity is stolen. To prevent an identity theft, states are taking action. If you live in Louisiana, Texas, Vermont and Washington, you are about to have an ability to freeze your credit report. Similar law has been successfully used in California since 2003.
What it means is that no credit will be issued on your name without your very explicit permission. Various checks will be put in place to verify your identity to unfreeze your frozen credit report.
In some states like Colorado which imposes similar law on July 1 of 2006, credit reporting agencies are prohibited from releasing the credit report or any information contained in that report without prior authorization obtained from consumer.
If you live in Texas, Vermont and Washington you can freeze credit report only if your identity was stolen before.
Other states to follow are Nevada, Connecticut, Illinois and Maine.
How to prevent identity theft with credit report freeze.
Posted at 12:31 PM
July 14, 2005
TransUnion works on credit repair fraud prevention
Credit repair is a big business these days and with so many people trying their best to repair bad credit, many are being ripped off, having their identity stolen, etc.
TransUnion has sponsored National Fraud Awareness Week which started on July 10th and ends tomorrow, July 15th.
There are very useful tips and concrete steps that anyone should follow in case of any type of identity fraud committed. You can find them on TransUnion's Fraud Victim Assistance Department.
Posted at 11:55 AM
July 12, 2005
Collateral - what it is in terms of loan specifics
Collateral is nothing more than something of a value that secures a loan.
Collateral loan can be a mortgage, a car loan or a little cash from a neighborhood pawn shop.
A house, a car and say a piece of jewelry are respective collaterals.
As you can see that while this type of collateral loan is not as exciting as the recent Tom Cruise movie, it serves as quite a backbone of our economy.
And if you default on payments few times too many, you collateral will be taken from you. That is called repossession.
So be careful how you treat you collateral loan.
From the standpoint of real estate investing, collateral has a bit different and more positive meaning.
Will review it later ...
Posted at 09:27 PM
July 11, 2005
Bad credit repair hint - changing defaulted account status
A common bad credit repair question - how can I make sure that a lender or collection agency will change the status of a delinquent account to "Pay as Agreed" or even remove it after I send the payment.
You can't. Even if you get the letter of agreement from supervisor or a manager, nothing can guarantee that he or she honors that later. Good chances are it will be honored, but don't be surprised if it won't be. You may have to follow up with more letters and faxes.
Credit repair is so tedious often because you pissed people off.
One suggestion is while negotiating, stipulate that you pay 70% of the agreed amount, then bank or debt collection agency changes status to your liking and then you send the remaining 30%.
You can find plenty of useful hints and ideas on our Credit Repair website.
Posted at 11:46 PM
Bad credit time limits
How long bad credit records stay on your credit report? Long enough to make you go nuts. The worst bad credit offences like bankruptcy, collection, late payments can stay up to 7 - 10 years.
Unpaid tax liens and federal student loans will stay forever.
Get more information on bad credit time limits.
Posted at 03:41 PM
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Bad Credit Advisor online magazine provides daily news about credit, debt and mortgage. We aren't paid to mention specific deals or products. We cover what we think is interesting as industry professionals ourselves.
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