How to clean up my credit

"Daunting, confusing, time-consuming, stressful, frustrating and educational all at once!"

How I did it: I read everything and anything I could get my hands on regarding credit repair. I had worked as an investigator and developed excellent skills in fact finding and reading regulations so learning about FCRA, FDPA and how to capture the errors on my credit report was helpful. I requested all my credit reports from the credit bureaus directly and started reviewing every detail on who reported information in me, who inquired into my credit history, the codes that were used for my credit relationship, like balances, paid on time, lates, collection companies and dates, when the accounts were reported late and when they are reported as opened. I reviewed every detail to get familiar with the language and terms.

Lessons & tips:

• Be honest about your credit problem. If its spending, set up a budget you can live with; most credit problems begin with lack of budgetting and over spending.


• Read everything before you sign in it even the fine print! Credit card applications are loaded with tricks that can get you into trouble.


• If collectors call you, do not tolerate harrassment, let them know that you have no business with them!


• Confused about late payments to a credit card company, get the facts request a record of payment history - the answer that could lead to a deletion lie in the records you get.


• Be patient, your credit problem didn't happen over night, correction takes time.


• Be willing to make lifestyle changes that help you stay out of debt.

Resources:

1. Fair Credit Reporting Act


2. Fair Debt Practices Act

It took me 1 year.

It made me say - "YEAH!"

See more progress on: clean up my credit

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Rebound from Credit Chaos!

I am a credit specialist and I own a company in California called Get GR8T Credit. I started this company recovering from my own credit issues and discovered just how important credit scores are.
I used to never pay my credit obligations on time, had late pays, collections and have even been a victime of identity theft multiple times. I have truly gleened a whole lot from having really bad credit.
My company has been in business now going on 4 years. I went from a 489 to 700 credit score and what a journey it was.

I now work with people all over the country seeking honest credit help and advise; I offer workshops to assist people in learning about credit and how the rebuilding process works. I am absolutely dedicated to helping people make smarter, wiser and more strategic decisions regarding credit and financial planning.

Get GR8T Credit is about the total credit picture. Credit problems would never exist if people learned to budget, from that credit accounts get paid on time, than you save what you didn’t spend on bills and high credit card interest.

Need help: Contact me!

2009 can be better for you! It just takes some strategy and commitment!

See more progress on: help people make better financial decisions

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Will the credit market truly recover?

It's been a while since I blogged on credit issues and boy have some things handicapped what most Americans have gotten very used - easy access to credit!
When I started this blog, I knew it was just a matter of time before the credit availability would change and it changed literally overnight! My office has received a lot of calls from people not only in my local market, but in other markets as well.
Everyone wants to know - what's next? What happens if I cannot pay my mortgage, my car loan, my credit cards? Well, you just cannot pay them. If you are vasculating every day trying to stretch money that cannot cover those expenses, you will need to overhaul your spending, really look hard at your spending, examine where you can cut some costs and begin to re-build with a plan to use less credit until your situation changes.

The credit markets will recover, it could very well take into next year for that happen, as so much is at stake. U.S. Federal Reserve Chairman Ben Bernanke's has been really called on the carpet for the credit mess and the stress that it has taken on working families, especially those that have lost jobs due to the market crash. Small business have taken a super hit because cash spending has been slowed to a crawl, those that do have have access to cash are not spending much of it due to concerns of money running out. So where does that leave you?

The credit markets will recover and while things are a sloppy mess, take this time to re-structure your household spending, pay down or settle those credit card balances and boost those credit scores!

Need help? My office specializes in helping people get back on track with their credit, we provide credit correction, debt managment, bill pay and budget structuring services. All of these services are an amazing combination to recover from a poor credit file. Get a head start for 2009! Be a fan of your credit - Get
GR8T Credit!

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FICO scores linked to Mortgage Delinquencies

In the wake of the mortgage meltdown all over the country, FICO scores are being scrutinized even more than ever before. Even for those with higher credit scores like 680 or higher, banks are reviewing credit limits with a keen eye. Why? The perception is that, even if you are not feeling the credit pinch, have a loss of income or you are not one the unfortunate who's is experiencing an issue with a high mortgage payment, you could still be a high risk borrower! Now, what is that about?

I hear you, I have noticed banks are acting rather funny with anyone and everyone.
Myself included! That's right, I am not very happy with American Express! I guess many card holders have credit problems, so they are treating everyone the same!

Well, here is the breakdown; at one time, even relatively recently in the last 5 years, FICO scores were not so heavily dependent on receiving a mortgage. Other factors were considered, it wasn't just the credit scores. As the mortgage meltdown has created scarcity for easy credit, a review of FICO scores and their link to the possibility of a delinquency on a mortgage payment is being studied, here is what it looks like:

Lenders studied the relationship between credit scores and mortgage delinquencies. There was a definite relationship. Almost half of those borrowers with FICO scores below 550 became ninety days delinquent at least once during their mortgage. On the other hand, only two out of every 10,000 borrowers with FICO scores above eight hundred became delinquent.

So lenders began to take a closer look at FICO scores and this is what they found out. The chart below shows the likelihood of a ninety day delinquency for specific FICO scores.

The scores below are rated in the likely-hood that a payment would be missed.

1) 595 FICO reveals that odds in 2.25% to 1 says you will miss 1 payment
2) 615 FICO reveals that odds in 9 to 1 says you will miss 1 payment
3) 630 FICO reveals that odds in 18 to 1 says you will miss 1 payment
4) 645 FICO reveals that odds in 36 to 1 says you will miss 1 payment
5) 660 FICO reveals that odds in 17 to 1 says you will miss 1 payment
6) 680 FICO reveals that odds in 144 to 1 says you will miss 1 payment
7) 700 FICO reveals that odds in 288 to 1 says that you will miss 1 payment
8) 780 FICO reveals that odds in 576 to 1 says that you will miss 1 payment

Now, are those some interesting numbers? I was shocked to learn this!

Drop me an email, I would like to hear your opinions in this issue. I will stand by!

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HELP! I'm wrapped in Plastic!

It is no secret that we here in America are a country of spenders. We are inundated with offers for credit card every single day. Thus having a credit card has become a status symbol of sorts. This is especially true among our country's middle class who is responsible for a majority of consumer spending nationwide.
It has become a race to see who can carry the most cards for the longest time and this destructive mindset is ruining people's lives.

So credit card debt has become a way of life for a great many people. The credit card companies make it as easy as possible to acquire a card. Some even ignore certain negative aspects of your credit score in order to issue a card to somebody.
It is common now to be able to apply online and have a response in as little as thirty seconds. I have always said that anything worth having is worth waiting for. That idiom holds true here as well.

The circumstances above have created the need for another market; namely debt settlement and debt negotiation companies. These companies offer services to get the debtor out from under the crushing weight of credit card debt.
You know when you are in over your head when your creditors call incessantly for a payment, your stomach is always upset, you start losing sleep and basically your health begins to suffer. Not to mention that those delinquencies are having a negative effect on your credit score.

Before you scream "HELP! I'm wrapped in plastic!" and call the first debt settlement company you cross paths with, here are a few things you should know.

1. Do a little homework. Pick out several debt settlement companies and call them up. Get a feel for their program and how they treat you in general. You need to feel comfortable with these folks as you will be sharing your financial information with them for some time. Be sure to pick the company that fits your needs. You can expect to settle your debts for around 50% to 60% of the original amount owed.

2. Don't let the critics sway you! Critics of debt settlement will tell you half truths that sound good, but lack credibility. Most of these critics are financial professionals in the credit business themselves. It's your debt and it's your decision so move forward.

3. You will hear that using debt settlement will hurt your credit rating. This is absolutely not true. Settling your debt will actually help your rating numbers. The fact is that the debt will be reported as "satisfied" or "paid in full" across the board. How can that hurt you? Remember, it is being consistently delinquent that hurts the credit score, not taking care of the responsibility.

4. Another thing you will hear from critics is concerning tax liabilities on settled debt. In some cases (VERY few, actually) there is a tax liability. If your settled debt is over the amount of $600, it is considered taxable and must be reported. However, the IRS has a contingency called "the insolvency rule" that covers this. Insolvency means that if your debt is greater than your assets, you wouldn't be able to satisfy your debts even if you sold everything you have. Insolvency absolves 95% of debt settlement solutions. Think about it a minute. Even if you did have a small tax liability, you are settling your debt for around 60% of what you originally owed, so you are still ahead by a long shot.

5. Debt settlement is looked upon favorably by most potential creditors. After all, you could have just filed a chapter 7 bankruptcy and liquidated your debt entirely. This solution WILL negatively impact your credit score. As a matter of fact, a bankruptcy will prevent you from getting any type of credit for a long, long time. This includes buying a car, a house or even getting a video rental card. Chapter 7 liquidation remains on your FICO score for at least 7 years and as long as 10 years. This is a huge red flag to credit issuing entities.

6. Realize that credit card companies want you to pay your balances. If you need to use debt settlement to accomplish that, they are willing to work with you and your debt settlement company. This is a better solution for them than having you just wipe the slate clean and be done. This is why debt settlement is much better than bankruptcy.

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Quick Tips to Help Reduce Debt

In the past couple of years, the times have become quite economically stressful, for many people across the United States. Of course if you have debt obligations that are ever on the rise, this can add even more stress to an already stressful time in your life. If you happen to have debt that seems to be mounting by the day and you are now depending primarily on credit cards and lines of credit, it is definitely time for you to get serious about reducing your debt. Your financial future depends on this, so you need to consider using some of the following tips to help reduce your debt.

Tip #1 – Get a Debt Consolidation Loan – One great tip to consider if you really need to reduce you debt is getting a debt consolidation loan. Sure, this probably isn’t really what you wanted to do, but it really can help. Many times you can get a debt consolidation loan against your home, or in some cases you may even be able to get an unsecured debt consolidation loan to help out as well. Getting one of these loans can help you combine several payments together so you only have one monthly payment. Just make sure that you get lower interest rates. The lowered rates will save you money each month, so you’ll be able to pay off your loan quicker. Also, it is much more convenient to deal with just one payment as well.

Tip #2 – Consolidate all of Your Credit Cards – If you have many different credit cards in your name, it may be time to consider consolidating those cards. Often you can find one good card to pay off those other credit cards. Some cards may offer you 0% APR on balance transfers, which is an excellent deal. Just make sure that you find out how long you have that APR for. Take the time to research the best credit card, then transfer your balances over to that card and do your best to avoid using the cards that are now debt free.

Tip #3 – Consider Another Job – In some cases you may have to even consider getting another job. Sure, you probably don’t want to work a second job, but if you can reduce your debt to make your financial future a bit brighter, it may be worth it in the long run. After all, getting a second job is definitely a better option than having to go through a bankruptcy in the future. If you do get a second job, make sure that you take all the income made from that job and put it right to the debt to make sure you can reduce it as quickly as possible.

Tip #4 – Sell Some Items – If you have some things around your home that you can sell, you may want to consider it. You may have a second or third card in the garage, a hot tub you don’t use, or even some jewelry that never gets worn. If you sell these items, you can take the money that you make and put it towards your debt right away. No one likes to sell their possessions, but if you really aren’t using them, they really can help you get better control of your debt.

Tip #5 – Credit Counseling – You may not be able to reduce your debt on your own, and if you can’t, you may want to consider going to credit counseling. Often these counselors can teach you how to work with money better, and they can also negotiate with creditors to get you better interest rates, and in some cases they may be able to negotiate your debt down a bit as well. So, if your debt is really getting bad, consider going to a credit counselor for some help.

Being over your head in debt can be extremely frustrating, so no doubt you’ll want to get out of debt as soon as possible. Take these tips and use them in your life, and you’ll be on your way to finally getting out of that pit of debt that you’ve been in for so long.

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Simple tips to create a budget you can maintain

The mere mention of a budget can cause many people to cringe with fear but, the truth is, a workable budget that can actually be followed is the primary key to financial security. Unfortunately, many people give up on budgeting because they can’t develop a plan that can really be maintained. At the same time, it is impossible to ever think of managing your finances and controlling your spending without some sort of plan to track your progress, while guiding you toward financial freedom.

The following tips will help you create a simple budget that is easy to understand and just as easy to follow:
#1...Before putting anything on paper, gather copies of all your bills, check stubs, and financial statements so you have accurate information to put on paper. Having everything in front of you will also make it less likely for you to leave out easily overlooked expenses like gas or monthly subscription charges.

#2...Start by dividing a piece of paper into two columns. The first will be for your income. A monthly budget works best for most households, so list all sources of money coming into your home each month.

#3...Your monthly expenses will make up the second column. To make budgeting simpler, separate your expenses into those that are fixed and those that can be changed, or are variable. Fixed expenses are the bills that stay the same each month, credit card payments, the mortgage, car notes, etc. while variable expenses can be altered, electrical and water expenses, gas, groceries, entertaining, etc.

#4...Remember to include yearly expenses like property taxes, miscellaneous expenditures including gifts and hobbies, and purchases of toiletries or other necessities.

#5...Once everything is recorded as accurately as possible, total your income as well as your expenses and compare the two figures. An ideal plan would have equal totals, meaning every penny of your income is accounted for and spent wisely. In most cases, the numbers will not be the same. This is where budgeting actually starts.

#6...If your income is greater than your expenses, you’re ahead of the game. Allocate the extra money to a savings account or adjust expenses for larger living. If your expenses are more than your income, you’re living beyond your means and you need to adjust your budget.

#7...Cutting your expenses is the hardest part of creating a manageable budget, but it is generally easier than increasing your income. Look over your variable expenses and find ways to save money that will balance your budget. In some cases, you may be able to completely eliminate an expense and use that money somewhere else but, most of the time, you will need to decrease spending in several different areas to produce a balanced plan. Consider:
- Cutting back on unnecessary habits, like smoking or alcohol.
- Pack your lunch for work rather than eating out.
- Opt for cheaper entertainment like a movie in rather than at the theater.
- Air dry clothes to save electricity.
- Join a car pool to decrease spending on gas.

#8...When you have a written plan for your finances in place, it’s time to put it in action. Each time you receive your income, spend it exactly according to your budget guidelines. Take the time to review your budget each month. If it is not working, make the adjustments needed to make it work and stick to it. You will soon be on the road to financial freedom.

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Building Business Credit triples the success of your business!

I recently received a call from a casual friend of mine inquiring into services my company offers for acquiring lines of credit for a business. So, I ask the caller how they have been in business and the response was, "well not very long". I shared with the caller that the likely hood that they could acquire business lines of credit when having been in business less than 2 years is practically impossible! The person gasped and than said, my personal credit score isn't very high and shared that their score was less than 600 FICO. I hated to crush their bubble, but I had to give it to this person straight so that an immediate decision could be made by this person. What I shared with person is very important! There is alot of hype in the marketplace about what it really takes to establish business credit lines. So here is the deal:

1) You must be in business for at a minimum of two years! Meaning licensed and incorporated, at least an LLC.

2) Have a business Checking account in your business name and address with a phone number that is listed in the 411 directory.

3) Have a copy of the rental agreement where you are located for your business. Many banks will ask for this, it creates credibility for you and your business.

4) Be prepared to potentially have to co-sign for your initial line of credit, in many instances banks may want your personal credit as a guarantee before an account will be opened.

5) Request a DUNS number from Dun and Bradstreet. You may need it, you may not.
It's free and can be requested online on the Dun and Bradstreet website. Most likely the bank that grants your company a credit line will report your relationship with the bank to D & B. It's very important that timely payments are made so that positive credit reporting is maintained.

Building business credit will help the success of any business very early. Self funding a business venture is noble, but very costly! I have personally done it and have been successful, but costs can get away from you when gearing up.

Because of the questions my office has received regarding acquiring business credit, we went to work to provide some critical services for our clients whom were contacting us to not only boost their personal score, but learn how to position themselves to acquire large lines of business credit.

We introduced the Start-up Corporation for individuals whom wanted the maximum in high end products and credit lines to create an instant corporation to gear up fast!

Get GR8T Credit's Start-up Corporation package is an amazing package that creates the corporation entity for you within 30 days with up to $200,000 in lines of credit! Qualifications are FICO of 720 or better, 3-5 personal lines of credit with personal debt percentage 40% of less, priced at $12,000! You just can't beat it!

Want more information, give us call!

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GRAB DEBT PROBLEMS BY HORNS!

You get home and the phone is ringing. You walk over and answer the call. As you greet the caller, you quickly realize that the person on the other end of the phone is your credit card company, asking when you are going to make last month's payment. Your mind is running ninety miles a minute and your heart is beating so fast you can hear it in your ear-drums. You feel like screaming at the caller and saying, "I can't take it..I can't pay..I have no more money.." You finally realize as the caller is demanding a payment date and amount, that you have a debt problem. The question then becomes “how do I solve my credit problem?”

One of the first steps in solving a debt problem is simply realizing that your debt is a problem. Often times, people believe that they have a complete grasp on their debt. When in reality, their debt has a grasp on them. After you admit that you have a credit problem, then you can take the needed steps to begin fixing the problem.

It is often easy to ignore debt. However, by ignoring it, you are quickly making it a very serious problem. It is easiest to deal with debt head on, in the early stages. The longer you ignore your debt, the harder it is to fix the situation. Therefore, after you realize you have a debt problem you will need to make a list of how much debt you have and to whom you owe the money to. This will help you have a better understanding of exactly how much you owe.

Next, you need to come up with an action plan to pay off the debt. There are a variety of different ways to do this. However, you will need to find a solution that will work best for your personal needs. One of the first steps of your plan should be to get rid of your credit cards. You can simply cut up your credit cards so that you are not tempted to use them while you are trying to pay them off. You can also stick them in a bowl of water and put them in your freezer. This will help curve those impulses to use the credit cards. One card can be kept for emergencies. However, it is important that the card only be used for a true emergency, not a sale at the mall.

Many people will turn to debt consolidation in an attempt to get their debt under control. If you have several credit cards, you can attempt to put all of your debt onto one card. If you choose to go with this route, choose the credit card with the lowest interest rate. This will help you to pay off your debt quicker and will save you money in the long run.
You can also choose a debt consolidation loan. You can obtain a personal loan and pay off all your debt. Then, you can make monthly payments to pay off the personal loan. Again, by consolidating your payments into one monthly payment, you are not only helping to pay off your debt quicker, but will most likely save you money in the long run. If you have equity in your home, instead of taking out a personal loan, you can take out a home equity loan to help consolidate your debt into one easy to make payment.

Whether you choose a personal loan or a home equity loan, be sure to shop around. There are a variety of different online companies that can help you to obtain a loan. You will want to make sure that you are getting the best possible terms of the loan as well as the best interest rates. Another solution you may want to consider is debt settlement. This is a great solution for long term debt. With debt settlement, a management company will try and negotiate to reduce your payments and or lower your interest rate. It is important to note that if you go with a debt settlement, it could have a negative impact on your credit rating.

Debt and harassing phone calls do not have to be a way of life. There are a variety of different steps you can take to help reduce your overall debt and stop the harassing phone calls. It is important that once you get your debt under control, you do not fall back into the same patterns you once had. Before you can begin paying off your credit card debt, you must quit using the cards. Otherwise, you will quickly be back to the large debt and harassing phone calls.

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Student Tips on Smart Credit Card Use

When you send your child of to college I am sure that you have sat them down and warned them about the dangerous they may face. But most parents don't even think to warn them about credit cards. See, when your child shows up to campus to get settled in it will be very hectic. There will be many people handing out different kinds of information and brochures. Some of them will be credit card applications.
The applications are very easy to fill out and if your child has not been warned about the pitfalls of getting credit cards they may look at them as free money. They are anything but free money and the damage they can cause to their credit ratings can haunt them for years after college.
Almost every student that fills out a credit card application will receive a credit card. Most will have a credit limit of between $200 and $1000. Won't they don't usually realize is that the interest rates will be very steep, unusually up around 28%.
So before your child leaves for school, sit down with them and give them tips on smart credit card use:

1) Use the card for emergencies only. You may need to explain that not having pizza on Friday night is not an emergency. Having to replace a flat tire is.
2) Never carry a balance, if you cannot afford to pay off your purchase the next time you are billed, don't use it.
3) Since many of them will not follow rule #2 explain that they can never only pay the minimum due. At 28% interest and paying the minimum balance you could actually owe more after you make the payment.
4) Never pay a bill late. Paying late fees is crazy. If you bought a CD for $20 dollars and you pay late, by the time you add the minimum late fee of $25.00 to the payment you have now bought the CD for $45.00.
5) The minute that you see that you have gotten yourself into trouble cut them up. Fix what needs to be fixed immediately, the longer you ignore the problem the more costly it gets.
6) Limit the number of cards that you have. I would suggest that they only carry two, a MasterCard or Visa, and a gas card. This allows them to purchase any thing that may come up.

They should also know that the credit card companies do not care why you cannot pay; they just want their money back. So using a credit card to try and stay afloat when your studies are overwhelming and you cannot work as many hours is not a good idea. Tell them to try and tighten their budgets and live within their means.
Make sure that your child really understands the repercussions of using credit cards irresponsibly. Getting credit to begin with is easy and so is ruining your credit score. If they ruin their credit when they are 18or 19 years old that will stay with for at least 7 years and will effect them in ways that may not seem important now but will be when they are looking for car insurance rates or apply for a job.
Even if your child uses the credit cards somewhat responsible but still carries a balance the interest rate alone with have them paying off that credit card after they have graduated and are looking for their first job.
Hopefully before they leave home you will have taken the time to explain all the pros and cons of using credit cards. Take the time and teach them to budget their money correctly so that they will their credit cards sparingly. Then when they actually need to use them the will pay them off as quickly as possible.
They should also realize that if they end up with more debt then they could ever repay that with the new laws in place it is very difficult to try and declare bankruptcy. If they do actually file bankruptcy the damage done to them will take many years to recover from it. And whether it is fair or not, a lot of employers now will not hire people with bad credit ratings.
So hopeful these tips will help your college student learn to use their new credit card is a very smart way.

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Steps to take to recover from Identity Theft

Identity theft is becoming an issue that affects more and more people each day. No matter how careful you think that you have been with your personal information, there is still a high chance that it may happen to you. If you have been the victim of identity theft there are a number of steps that you need to take:

1. Stay Calm and Make Notes
The ways that you are likely to be alerted to the possibility of your identity being stolen include when you find your wallet missing, or you have a call from a collection agency relating to a debt that is not yours. It is important to stay calm, and take down as much detail as you can.

2. Limit Further Damage
Do not give out any more of your personal information. This includes opting out of any programs that share personal information.

3. Change All Passwords
Change all passwords that you have previously used. Ensure that they are very different from the old ones and that you do not save them online or on your computer.

4. Contact a Credit Report Agency (CRA)
There are three national credit report agencies; Equifax, Experian and TransUnion. Just contact one of them and ask for a fraud alert to be put on your credit reports. They will inform the other two. This will prevent any further accounts being opened in your name. Also ask for a free copy of your credit report so that you can see if anything unusual is on them.

5. Close Unauthorized Accounts and Report Lost Checks and Cards
This should be done as soon as possible to lower the amount of your possible liability for any fraudulent activity. Report lost checks, ATM, debit, prepaid, gas station, phone, department store, or any other cards to the appropriate company or bank.

6. Call All Financial Companies for Information
You need to contact all of the financial organizations that you have had dealings with. You can then begin to assess when the identity theft occurred. Also, you should close any accounts that have been abused.


7. Contact Social Security and the State Department
You should do this, even if your Social Security card and passports have not been stolen.

8. Lodge a Complaint with the Federal Trade Commission
This is important to enable local and national law enforcement officers to track down identity thieves. They may also be able to offer you some help and support, so don’t be afraid to ask.

9. File a Report with your local police
This is often required by some of your creditors before you can obtain any information. However, it is more important to do this when you are certain that you have been the victim of identity theft.

10. Get organized
Find all of your paperwork and make sure that there are no consecutive ones missing as this may indicate that they are being sent to another address.

11. Block Erroneous Information on Your Credit Report
Once you have identified which are fraudulent transactions, and have proof, you can ask the credit bureaus to block these from your report.

12. Stop Information from Being Reported to Consumer Reporting Agencies (CRA)
Contact all companies that send reports to CRAs with proof of the identity theft, and tell them what information you do not want passed on.

13. Query Bills
Send proof in writing about the amounts that you are disputing. State that you are happy to cooperate with any investigation but you are not going to pay the bill.

14. Be Prepared to Deal with Wrongful Criminal Cases
Your identity may have been used in the commission of a crime. If this happens then you can contact the court where any judgment has been made and provide proof of your identity theft. If this is not successful then you can contact the Department of Justice.

15. Get a Lawyer
They will help you to decide if you want to take legal action of any kind. A specialist in consumer law, the Fair Credit Reporting Act, and the Fair Credit Billing Act is most suitable.


16. Keep All Personal Information Safe
To prevent this from happening again, you need to store items with personal information on securely and ensure that you dispose of everything properly by shredding it before you throw it in the trash.

17. Be Thorough
Check the FTC ID Theft website and others to ensure that you have not overlooked anything.

Don’t expect everything to be worked out in a few days. These things take time and, depending on how long the thief has had your identity for, it may be months before you can get yourself back on track. Keep at it, and don’t be disheartened.

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REMOVING BAD CREDIT FOR IDENTITY THEFT VICTIMS

Identity Theft ranks as the number one complaint to the FTC year after year and accounted for 37% of all complaints in 2005. Identity Theft is a real problem in today’s society. Your good credit rating can be damaged when someone uses your personal information without your permission to open credit accounts. The purpose of this article is to outline some of the steps that you can take to have the bad credit that results from this activity removed from your credit report.

If you suspect that your identity has been stolen, then you must immediately contact the CRA’s (Equifax, Experian, and TransUnion) to have a Fraud Alert added to your credit file. A Fraud Alert will help prevent the thief from opening any new accounts in your name. You must also contact the fraud department of any company that you know or suspect has had an account opened or tampered with and you must have those accounts closed immediately.

The next step involves filing an identity theft report. This is an important step. Under the “Police Report Initiative” credit bureaus will automatically block fraudulent accounts and bad debts from appearing on your credit report. You will need to file a report. Unfortunately, there is no federal law requiring a federal agency to take a report about identity theft. State laws vary and depending on your geographic location, you may be told that identity theft is not a crime under state law. If this is the case then the FTC recommends that you request to file a “Miscellaneous Incidents” Report instead. Florida (myfloridalegal.com) has an identity theft law, allowing the report to be filed in the location in which the offense occurred, or, the county in which you reside.

The FTC has an ID Theft Affidavit (consumer.gov/idtheft/pdf/affidavit.pdf) that is accepted by many companies (some creditors require a different or additional forms). The affidavit should be completed and notarized and contains a Fraudulent Account Statement that must be copied for as many accounts that will be disputed on the basis of identity theft.



The following excerpts are from the FTC’s website (consumer.gov/idtheft/con_resolv.htm#correct):

“Consumer reporting companies will block fraudulent information from appearing on your credit report if you take the following steps: Send them a copy of an identity theft report and a letter telling them what information is fraudulent.”

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Sample Blocking Letter Consumer Reporting Company


Date
Your Name
Your Address
Your City, State, Zip Code

Complaint Department
Name of Consumer Reporting Company
Address
City, State, Zip Code

Dear Sir or Madam:

I am a victim of identity theft. I am writing to request that you block the following fraudulent information in my file. This information does not relate to any transaction that I have made. The items also are circled on the attached copy of the report I received. (Identify item(s) to be blocked by name of source, such as creditors or tax court, and identify type of item, such as credit account, judgment, etc.)

Enclosed is a copy of the law enforcement report regarding my identity theft. Please let me know if you need any other information from me to block this information on my credit report.

Sincerely,
Your name

Enclosures: (List what you are enclosing.)
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Note: “The consumer reporting company has four business days to block the fraudulent information after accepting your identity theft report.”

“Information providers will stop reporting fraudulent information to the consumer reporting companies once you send them an identity theft report and a letter explaining that the information that they’re reporting resulted from an identity theft”

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Greetings Everyone!

2008 is the year of money and success, take advantage of the housing prices while they are dropping and get that credit in gear!

Congress has approved a 'stimulus' package to assist in boosting the spending for all Americans. Your family will benefit with a check to your home for up to $1200.00! That's not a whole lotta moola, BUT it is depending on "how" you spend it.

If your credit is less than stellar, maybe consider using that $$ to invest in a credit building and restoration program. There are some opportunities that could come your way that without a solid credit score you could totally miss out.

If you want to buy rental properties, you need a solid credit score! Lenders aren't taking the risks they did in 2005, 2006 and 2007! BE PREPARED!

If government contracting is an interest of yours, a bond is in your future AND THAT MEANS, a solid credit score is needed to secure bonds, especially for high dollar projects like construction - BE PREPARED!

If you want a loan to expand your homebase or small business, YOUR personal credit will get reviewed...BE PREPARED!

If anything in this email grabs your attention, you are affected and you should contact me! I can tailor a program that fits your needs and puts the spring back in your game!

Love to hear from you!

Alexis - The Credit DIVA!

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10 Tips for Boosting your credit TODAY!

10 TIPS FOR BOOSTING YOUR CREDIT TODAY!

If your credit rating is faltering or has hit rock bottom, there are ways that you can boost your credit score. It is easier than you think and these ten tips will help to get you on your way.

1. Obtain all three copies of your credit report.There are three main credit reporting agencies and not all companies will report to all three of them. It is vital that you obtain copies of your credit report from all three agencies. This way, if you have a problem on one report it may not necessarily show up on the other reports and you can still ward off any mistakes or issues. Don't just get a report from one of the "big three" agencies, get all of them.

2. Check your credit report often.Experts advise checking your credit report at least once a year. Some people, however, obtain their reports as often as every quarter. It really depends on the activity and other factors as to how often you should check. The common consumer who only has a few lines of credit can probably get away with checking less often. It is important, though, to check your credit report so that you can ward off any problems, issues or even unauthorized activity.

3. Delete your negative credit.If you have any negative credit such as delinquent accounts or slow payment history you need to work to bring it all current. Pay on delinquent accounts to get them to a current status. You should also begin to make regular, timely payments on a payment history that is slow or lagging. If you can pay your delinquent accounts all at one time to bet them to a current status, but if that is not a possibility, you can pay on the accounts in increments and pay it a little at a time until current.

4. Don’t close old accounts.While you may be tempted to close old accounts, resist that temptation. Keeping old accounts open and current will show as current accounts on your report. This will show that you have active, good credit and will help to boost your rating. The longer that you have revolving credit accounts with no negative reports, the better it makes your credit appear. This translates to a better overall credit score. Many credit experts advise that you keep a balance a balance or 30 percent of your credit limit.

5. Pay your bills on time - always.You may think that this tip is rather obvious, but it still stands to be repeated. Your credit score can begin to decline even if you are only 30 days late in payment. Even if you pay every month, if you pay late every month, you are still damaging your credit. Your best bet is to make your payments on time every single month.

6. Use credit to pay for credit.This is an old, tried and true technique for credit building. Get a secured credit card for "x" amount of dollars. Once you receive your card, get a cash advance of 70 percent of your credit limit. Do this with a second and third cards as well, using the cash advance from the previous card. Open a checking account with the cash advance on the third card. Use this checking account solely for making payments on your three cards. Pay on time each month and your credit score will increase. It may drop initially because of the three accounts taken out so quickly in succession, but within 4 months it will have rebounded and your score will be greater.

7. Keep different types of credit.Diversify your credit with revolving accounts, unsecured loans and secured loans. This shows that you are able to manage several different types of credit at once. Get a vehicle, mortgage or personal loan so that you can have an installment loan on your credit report and charge cards give you the revolving credit. This shows that you can handle short term credit, long term credit, fixed payments and variable monthly payments.

8. Don't file for bankruptcy.While bankruptcy may seem like an easy way to get out of debt, resist the temptation. Don't file for bankruptcy or foreclosure; they remain on your credit report for 10 years and will cause your credit score to plummet. However, the older a bankruptcy becomes (as long as it is combined with a credit history that is rebuilt), the less impact it will have on your credit score.

9. Don't open new lines of credit.Do not open new lines of credit unless you absolutely must. Every time that you apply for credit there is an inquiry that is placed on your report. This often causes your credit score to drop slightly. This is more important when you are just starting out or when you are rebuilding credit because you either show no payment history or a negative payment history. That, combined with a lowered score can show you as a credit risks to creditors.

10. Stay on top of all credit issues.As soon as you realize that there is a problem with your credit, you need to take care of it as soon as possible. When you are staying on top of your credit issues you can ward off problems that will destroy your credit score. This strategy will also help you ward off fraudulent activity that may occur on your account due to thieves and identity theft.
When you use these tips to boost your credit rating you will see great results. Your credit rating will improve and you will have better access to credit if you never need it for emergencies.

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