Restore Your Credit Report

CREDIT REPORT Q&A

noreply@blogger.com (Unknown) — Tue, 14 Aug 2007 22:18:00 +0000

What is credit monitoring?
Credit Monitoring is the only automated method available to reduce the threat of identity theft and keep you up to date with changes and inquiries made to your credit file. Credit Monitoring alerts you of any major changes made to your credit file. Credit Monitoring does not affect your credit or credit score.

How do you alert me of changes in my credit file?
You will receive alerts of changes by email. These changes may signal potential identity theft in progress. Credit monitoring notifies you of any suspicious activity to your credit file - so you can take action quickly to minimize the damage.

What types of notifications/alerts will I be receiving?
The type of changes that you will be alerted of are the following:

I. New Accounts
II. Inquires
III. Derogatory information
IV. Public Records
V. Collection Accounts
VI. Serious Derogatory (foreclosure, bankruptcy)
VII. Change of Address

How do I view the changes made to my credit file once I receive an alert?
If you receive an email stating there has been a change to your credit file, log in to the member area either by visiting us at www.RunMyCreditReport.com or click on the link in the alert email. You will be taken directly to the member log in section. Once you have logged in, select the "View Monitoring History" link and a list of all recent and past alerts will be available for you to view.. ;

What happens if I change my email address?
If your email address changes, all you need to do is log into the member area, click on "modify personal info" and enter your new email address. Your email address will be updated immediately and you will continue to be notified of changes to your credit report. ;

Do I receive alerts for changes reported at all three repositories?
No. Currently your credit file is being monitored daily for changes based on your Experian Credit file, one of the three national credit bureaus.

Does the service monitor my wife's/husband's credit file as well?
No. Currently credit monitoring is on an individual basis. A spouse's credit file must be monitored separately.

Can you alert me via telephone or US mail instead of email?
Currently, you can only be notified of changes to your credit file via email. This is to ensure prompt notification in the event of a significant change to your credit file.

My credit is in really poor shape; do I still need to monitor it?
Whether you have bad credit or good credit, identity theft affects your personal credit, and it can lead to a wide range of long-term financial problems making poor credit even worse. Identity theft occurs when someone uses your name, credit card number, or other personal information to make unauthorized purchases or open new accounts in your name. Changes and inaccuracies in your credit file can be an early warning sign of identity theft. Regularly checking and monitoring your credit can be a good way to stop any problems before they get too far.

Learn more at

SeeYourFreeCreditReport.com

RestoreMyCreditReport.com

PERSONAL EVENTS

noreply@blogger.com (Unknown) — Tue, 14 Aug 2007 22:17:00 +0000

Marriage
Managing your credit can be tricky, even when you're the only person involved in your financial decisions. Add a new spouse to the mix, and you have to be extra careful to ensure your credit remains in good standing. For many engaged couples, talking about finances takes a back seat to the excitement of wedding planning. But, before saying "I do," you need to be aware of the credit issues that could arise with a new marriage.

First of all, both you and your spouse should put all your financial records - savings, salaries, investments, real estate, and especially credit - on the table. If one of you has a less-than-glowing credit history, it will affect the other as soon as you start applying for credit together and opening joint accounts. In addition, your new joint accounts will appear on both spouses' credit reports in the future, so be sure to pay careful attention to your bills and pay them on time.

Once you've aired your credit laundry, you'll need to decide whether or not to merge all of your financial accounts. Many couples do this because consolidated accounts often make for easier record keeping. Just remember, both of you are responsible for all debt incurred in any joint credit accounts. So, regardless of who's incurring debt, a missed payment on a joint account will negatively affect both of your records. The same is true in community property states, where virtually any debt entered into during marriage is automatically considered joint. Consider also if you miss a payment on an individual account, that payment may very well impact your ability to open joint accounts because both credit histories will be considered.

The best way to keep your record clean starts with a solid understanding of the terms of your joint accounts. That means paying attention to interest rates, credit limits, annual or late payment fees and cash advance limits. If you decide to consolidate your accounts, you might want to keep at least one credit account in your own name as a safeguard in the event of an emergency. Keeping an individual account can also be a good thing in the event of divorce to reestablish an individual credit history.

Women who take their husband's surname after getting married need to notify the Social Security Administration and their current creditors of this change. You do not need to notify the credit reporting agencies of a name change. They will automatically update the name on a credit report when creditors report it.

The key to successful credit management as a couple is understanding that your individual credit behavior affects both you and your partner. To ensure that you are able to quickly get credit at the best possible terms, be sure you both understand all the implications that accompany a joint account. In addition, consider how the payments stemming from a major credit purchase will affect your overall budget.

Divorce
With divorce and separation come new experiences and responsibilities. Suddenly words like "child support payments" and "100 percent liable for bills" enter the picture. If you ignore your increased financial obligations or fail to separate your accounts, it may be hard to open new accounts and obtain new loans in your name. But there are many moves you can make to protect and restore the good credit that took years to build.

Get your credit report
Before you begin, get an idea of what your credit report looks like. Get immediate online access to your RMCR credit report and Score.

Protect your good credit
Your divorce decree does not relieve you from joint debts you incurred while married. You are responsible for joint accounts, from credit cards and car loans to home mortgages. Even when a divorce judge orders your ex-spouse to pay a certain bill, you're still legally responsible for making sure it is paid because you promised - both as a couple and as individuals - to do so.

The credit grantor (a bank, credit card issuer, mortgage company or other credit-lending business) also has a legal right to report negative information to a credit reporting agency if your ex-spouse pays late on a joint account. If your ex-spouse doesn't pay at all, you'll probably have to pay - or the grantor can take legal action against you.

Close or separate joint accounts. If you can talk to your ex-spouse, you can save a lot of grief. Analyze all your debts and decide who should be responsible for each. Call your creditors and ask them how to transfer your joint accounts to the person who is solely responsible for payments. However, you still might have legal responsibility to pay existing balances unless the creditor agrees to release you from the debt.
Take stock of your properties. You may have to refinance your home to get one name off the mortgage. Or you might need to sell your home and divide the proceeds.
Keep paying all bills. Until you can separate your accounts, neither of you can afford to miss a turn paying bills. During divorce negotiations, send in at least the minimum payment due on all joint bills. Miss even one payment and it stays on your credit profile for up to seven years, making it hard to obtain new credit in your own name. Beware of well-meaning friends and relatives who may tell you to ignore making payments or to run up debts. Always make all payments with at least the minimum due.

Establish credit independently
Start small and build up. Get a credit card that has a small credit limit, perhaps from a local department store or financial institution. Then always pay your bills on time so your credit history will be excellent. After six months, apply for another card and continue paying bills consistently. Don't run your debt up beyond what you can afford to pay. It's a winning strategy that's easy to master.

Ask a family member or friend to cosign. Perhaps a relative or friend with an established credit history can cosign your loan or credit application - provided you repay that cosigned debt on time. Remember, any transaction also will show up on the cosigner's credit profile. After a few months, try again to get credit on your own.

Consider applying for a secured credit card. You must open and maintain a savings account as security for your line of credit. Your credit line is a percentage of your deposit. Beware of the extra fees you may have to pay for secured credit.

Rebuild positive credit history
You can pick up your pieces and start fresh with a positive credit report - if you pay your bills on time. After all, your credit profile is always evolving.

Your recent bill-paying pattern is critical. Your behavior (during the next 18-24 months) is most important in deciding whether you're a good credit risk. Even one late payment can affect your ability to get a mortgage.
Help is available if you're having difficulty paying bills. The nonprofit National Foundation for Credit Counseling (NFCC), 1-800-388-2227, can help you establish a budget and repay creditors. Other organizations offer quality credit counseling as well. Be sure the organization you work with is non-profit and provides budgeting and financial management training in addition to any debt management plan, and does so at little or no cost. Be very cautious of any organization that claims it can provide a quick fix to your credit problems, provides you with no financial management education, or that charges substantial fees for its services.

Bankruptcy is a last resort
Bankruptcy should be the last move to make if you get in over your head.

It's not an easy way out. Filing for bankruptcy is no guarantee that it will be granted because a court judgment must be made. Even if all you do is file your bankruptcy papers with the court, it gets reported on your credit profile.
Not all debts are included in bankruptcy. Things like alimony, child support, student loans and taxes secured by liens still must be paid consistently.
Bankruptcy remains on your credit history up to 10 years. While a declaration of bankruptcy removes many debts, any reference to filing, dismissal or discharge still appears on your credit history for up to 10 years. During this time, you'll find it more difficult if not impossible to get a new mortgage, personal loan or a credit card.

Consider mediation
Mediation can make things much fairer by helping you and your ex-spouse work out a reasonable and equitable divorce agreement. If you'd like help finding a mediator, contact the American Arbitration Association. To locate an attorney, check with your state or local Bar Association.

Death of a spouse
If you've lost a spouse, you're already going through one of the most emotionally draining experiences possible. When a loved one dies, there are also numerous financial matters to deal with, including credit and debt issues. There are, however, some simple steps you can take now to help down the road.

Stabilizing your credit in the event of a death can be difficult, especially if your spouse held all of the credit in his or her name. Keep in mind that in community property states, credit accounts opened during marriage are automatically joint. That means you are still responsible for any debt that your deceased spouse incurred.

By law, a creditor cannot automatically close a joint account or change the terms because of the death of one spouse. Generally, the creditor will ask the survivor to file a new credit application in his or her own name. After reviewing the new information, the creditor will then decide to continue to extend credit or alter the credit limit. You might want to open a new credit account in your name. In doing so, keep in mind that you must use your name only when applying. Including your deceased spouse's name will result in a joint account. Credit Reporting Agencies automatically update its records with periodic reports from the Social Security Administration. When the update is made, your spouse's credit history will be flagged to show that he or she has passed away and their name will be removed from any preapproved credit offer mailing lists.

Learn more at

SeeYourFreeCreditReport.com

RestoreMyCreditReport.com

MAJOR PURCHASES

noreply@blogger.com (Unknown) — Tue, 14 Aug 2007 22:14:00 +0000

Buying a home
Home buying can be complicated and stressful, but if you plan carefully, buying your dream home can become more fun and less work for the entire family. Following these steps can help make your dream a reality.

Get your credit report
Before approving your request for a home loan, mortgage lenders review your credit report. In fact, they often get your report from two or more credit reporting companies to be sure they have your complete credit history.

If you review your credit report in advance, you'll see yourself from a lender's perspective. That can help you avoid possible loan approval delays.

Be prepared
When mortgage lenders review your credit report, they evaluate how much you already owe, how much unused credit you have available, how prompt you are in paying your debts and whether you've recently applied for new credit. They may ask you to explain any late payments, recent inquiries on your credit report or new accounts. If you have no credit accounts, they may ask you to show that you pay your rent, telephone bills or utility payments on time.

Count your savings
Have you saved enough money? You generally need a down payment of at least five percent of your new home's purchase price. You also need money for closing costs.

But that's not all. Be sure to set aside extra funds for emergencies. If you spend every dime on your down payment, you're statistically more likely to lose your new home to foreclosure some time in the future.

Seek preapproval
Touring homes you can't afford makes homes in your price range pale in comparison. Asking a mortgage lender to prequalify (or preapprove) you for a specific loan amount narrows your search, helps you avoid disappointment, improves your bargaining power and speeds the sales process.

Know your options
Ask the lender to give you details on the cost differences of various mortgage plans. Then select the one that's best for you. Options include:

Fixed-rate mortgages for 15, 20 or 30 years
Adjustable-rate mortgages
Balloon mortgages
Government-insured loans or special loan programs.

Remember, besides your mortgage payment and property taxes, your monthly housing costs can include mortgage insurance, home insurance, special assessments and homeowners fees.

As a general rule, your housing costs should total no more than 28-32 percent of your monthly income before taxes. Add other long-term debts such as car and student loans, and your total should take no more than 36-41 percent of your monthly income before taxes.

Narrow your choices
This is not just a house, it's your home. It's where you live. More than that, your home gives you pride of ownership, freedom from landlords and a sense of security. That's why it's a good idea to consider more than finances before buying. Think, too, about your needs and preferences for:

Schools and transportation
Healthcare
Recreational opportunities
Commute to work
Housing styles and lot sizes

Make your payments
How much you borrow, how much you owe and when you pay become a part of your credit history. When you apply for new loans or credit cards, other lenders will review this history.

Late payments can stay on your credit report for up to seven years, can keep you from buying another house or can make it more expensive to buy a car. A good credit history proves you manage your finances well. It lets you enjoy using credit at your convenience and at a lower cost.

Buying a car
No one wants to drive away in a dream car only to find he's heading toward unwanted sacrifices. More than one consumer has bought an expensive automobile or truck and then found that he couldn't afford to put gas in its tank.

The prudent consumer can avoid this situation by reading and understanding the fine print of automobile purchases, and weighing the benefits and drawbacks of both purchasing and leasing a vehicle. Here are some identifiers in support of buying a car:

You have the money for the down payment that's required for your purchase
You like the idea of owning something of value after making payments for years
You want to trade in an old vehicle
You like the idea of carefully maintaining your car, so that it runs perfectly for years and years
You drive tens of thousands of miles each year (if you lease, you might end up paying a relatively large amount of money at the lease's end for exceeding the annual mileage cap, which is generally 12,000 to 15,000 miles).

Here are some identifiers in support of leasing a car:

You generally prefer lower monthly payments
You like driving a new vehicle - particularly a luxury model - every two or three years
You hate the hassle of selling your old car every time you want to buy a new one
You put "hard" miles on your vehicle
You like the idea of driving a vehicle for a few years before purchasing it

If you decide to lease, you need to learn exactly what you're paying for in terms of interest rate (it should be close to the current automobile loan rate). You should negotiate the capitalized cost (the price the financial institution pays the dealer for the leased vehicle), the acquisition fee (which the consumer is charged for initiating the lease) and the disposition fee (which the consumer is charged at lease's end if he decides not to buy the vehicle.). Because of all of these factors, professionals advise that low monthly payments don't necessarily translate into a beneficial transaction for the consumer.

Financing a new business
The success of a new small business largely depends on the creditworthiness of its owner. Whether the office needs more equipment or the employees need more training, it's the owner's responsibility to foot the bill.

Some owners turn to investors for the capital, but many others will secure a loan or a line of credit from a bank. Others simply use their own personal credit cards or a combination of these types of credit. Savvy small business owners will try to find lower interest rates on small business loans rather than the increased cost of using a personal credit card.

Unlike the unsecured credit cards, small business loans generally need to be secured by assets, namely property or goods. You'll also need to calculate the actual cost of the loan, and decide if you're comfortable living with some of the imposed restrictions (such as caps on your salary). To secure a loan, you will probably need to submit a precise business plan, tax returns, balance sheets, income statements and credit history - as well as additional documentation - to the loan officials. Considering about 80 percent of new businesses collapse within three years, it's easy to see why lenders are reluctant to finance new businesses. If securing a bank loan is indeed not a possibility for you and your business, you can always turn to your personal or business credit card to finance your entrepreneurial dreams. But always keep sight of the risks.

Learn more at

SeeYourFreeCreditReport.com

RestoreMyCreditReport.com

BUILDING CREDIT

noreply@blogger.com (Unknown) — Tue, 14 Aug 2007 22:12:00 +0000

Risks and rewards
There are many rewards for handling your credit well. You may be able to improve your lifestyle through purchases that are only possible with credit, utilize services that are only available if you have a credit card - renting a car for example - and have the resources to pay for unexpected emergencies.

However, there are risks. Poorly managed credit can land you deeply in debt, and recovery is not easy. The rules of credit are few and simple. A lender extends you a line of credit. You agree to pay the lender back the amount you spend plus finance charges and perhaps additional service fees. A payment schedule is set up and you are required to make payments according to that schedule. The most important advice is, pay your bills on time!

Types of credit available
Revolving credit: Most credit cards are a form of revolving credit. This simply means you are given a maximum credit limit and you can make charges against that limit, carrying a balance and making payments each month.

Charge cards: While they often look like revolving credit cards and are used the same way, charge accounts differ in that you must pay the total balance each month.

Service credit: Often overlooked, your agreements with service providers are all credit arrangements. You receive goods (natural gas, electricity) or services (apartment rental, cellular phone use, health club memberships) with the agreement that you will pay for them each month just as you would with any other form of credit. Your contract may require payments for a specified number of months, even if you stop using the service. Your accounts with service providers and the associated payment history are appearing more commonly on credit reports. Unpaid bills are almost always reported when the account is turned over to a collection agency.

Installment credit: Car loans and mortgages are two examples. Installment credit is among the most common and easily understood. A creditor loans you a specific sum of money and you agree to repay the money and interest in regular installments of a fixed amount over a set period of time, usually measured in months or years.

Using credit
Getting your first line of credit sometimes can be challenging. Without a credit history, or with a serious blemish like bankruptcy, lenders may be reluctant to extend you credit. You may want to talk to a local department store or bank. Ask if they will open a line of credit for you, for perhaps only $200 or $300.

It may be necessary to have a parent or friend with a strong credit history cosign for you. If a person cosigns on your behalf, they are accepting equal responsibility for the loan or credit line. Without someone to cosign, you may need to begin with a secured line of credit. To do so, you must open an account with a bank or other lending institution. In turn, you will receive a line of credit with a limit equal to a percentage of your bank account balance. Often, this type of credit has higher interest rates and fees, but it may be a good way to get your first credit card.

Tips for using credit
When you are extended a line of credit, use it, but use it carefully. Be certain your account is reported to a credit reporting agency. Most importantly, make your payments on time.

Set up a budget and stick to it. You need to be aware of how much debt you already have and how much you are adding to that debt by buying with credit.
Shop around for credit. Lower interest rates, lower or no annual fees, cheaper service charges and additional benefits such as frequent flyer miles or special insurance rates are available. Find the credit that is right for you.
Once you have signed a credit agreement, you are responsible for it unless the creditor agrees to release you from the agreement. That not only includes credit cards or installment loans, but also health club agreements and cellular telephone contracts, even if you stop using the service. Remember also that a divorce decree does not release you from responsibility for joint accounts.
Protect yourself from credit fraud. Treat your credit cards like cash. Sign them as soon as you get them. Don't leave them lying around. Shred receipts that have your account number on them and do the same with credit offers you receive in the mail but choose not to accept.

Learn more at

SeeYourFreeCreditReport.com

RestoreMyCreditReport.com

VICTIM ASSISTANCE PROCESS

noreply@blogger.com (Unknown) — Tue, 14 Aug 2007 22:11:00 +0000

If you have reason to believe that you are a victim of fraud, Credit Reporting Agencies can assist you in your efforts to protect your credit.

Step 1: Consumer contacts National Consumer Assistance Center

Consumers can call the Credit Repoting Agencies, 24 hours a day, seven days a week, 365 days each year.
A 90-day security alert is immediately added to the consumer's credit file. This alerts creditors to confirm the consumer's identity before extending credit.
The consumer's name is removed from prescreened credit solicitation lists as an additional precaution.
The consumer is provided a complimentary consumer report.

Step 2: Consumer receives reports

The consumer reviews his or her consumer disclosure for fraudulent data and calls a special telephone number listed on the credit report to speak with a consumer assistance associate specially trained in fraud victim assistance.
Together, the consumer and the consumer assistance associate identify fraudulent items. Some items are removed immediately; others must be investigated and verified.

Step 3: Investigation begins
Credit Reporting Agencies verify the information that the consumer alleges as fraudulent with the creditors or data furnishers.

Upon receipt of a valid police report, Credit Reporting Agencies block alleged fraudulent information from view by creditors and other users of the report. This allows a victim to continue to be credit active without being penalized for any fraudulent information on his or her report.
Credit Reporting Agencies employ special system procedures and matching criteria to ensure that fraudulent data is removed as soon as possible.

Step 4: Fraudulent data is removed
Credit Reporting Agencies must complete an investigation within 30 days. If the data contributor cannot verify information as accurate within the statutory deadlines, Credit Reporting Agencies systems are designed to delete or update the information.

Learn more at

SeeYourFreeCreditReport.com

RestoreMyCreditReport.com

PREVENTING CREDIT FRAUD & IDENTITY THEFT

noreply@blogger.com (Unknown) — Tue, 14 Aug 2007 22:09:00 +0000

It's unfortunately not possible to prevent identity theft and credit fraud entirely. But by managing your personal information carefully, and with a full understanding of its importance, you can substantially reduce the likelihood that it will happen to you. The following tips show you how.

How to Outsmart Identity Thieves
Be careful about giving out personal information. Whether on the phone, by mail, or on the Internet, never give anyone your card number, Social Security number, or other personal information for a purpose you don't understand. Ask to use other types of identifiers when possible, and don't carry your SSN card. Be sure to keep it in a secure place.

Protect your mail. To stop a thief from going through your through trash or recycling bin to get your personal information, tear or shred your charge receipts, credit applications, insurance forms, bank statements, expired charge cards, and preapproved credit offers. Deposit outgoing mail in post office collection boxes or at your local post office. Promptly remove mail from your mailbox after it's delivered. If you plan to go away, call the U.S. Postal Service at 800-275-8777 and request a vacation hold.

Guard your credit cards. Minimize the information and the number of cards you carry in your wallet. If you lose a card, contact the fraud division of the credit card company. If you apply for a new credit card and it doesn't arrive in a reasonable period, contact the issuer. Watch cashiers when you give them your card for a purchase. Also, when you receive a new card, sign it in permanent ink and activate it immediately.

Pay attention to billing cycles. Contact creditors immediately if your bills arrive late. A missing bill could mean an identity thief has taken over your credit card account and changed your billing address.

Learn more at

SeeYourFreeCreditReport.com

RestoreMyCreditReport.com

WHAT IS CREDIT FRAUD?

noreply@blogger.com (Unknown) — Tue, 14 Aug 2007 22:08:00 +0000

In a country where consumers owe more than $1 trillion on their credit cards, estimates of $2 billion to $3 billion in credit card fraud losses may not seem all that terrible. That comes out to just two to three one-thousandths of one percent. But it is terrible to victims of fraud. Though they may be protected financially, they are forced to endure major inconvenience. Additionally, we all pay for the costs of fraud in the form of higher prices, higher interest rates and increased inconvenience.

There is no single definition of fraud, but some types of credit fraud that occur include:

Identity theft: the unauthorized use of personal identification information to commit fraud or other crimes
Identity assumption: long-term victimization of identification information
Fraud spree: unauthorized charges on existing accounts

Sources of fraud
Just as there are various types of credit fraud, there are also different ways that credit thieves gather your personal information:

Using lost or stolen credit cards
Stealing from your mailbox
Looking over your shoulder
Going through your trash
Sending unsolicited email
False telephone solicitation
Looking at personnel records

Discovering fraud
There are several warning signs that credit fraud may be occurring:

Your credit report contains inquiries or information about accounts that you did not open
Strange charges show up on billing statements
Bills arrive from unknown or unfamiliar sources
You receive calls from creditors or collection agencies

Learn more at

SeeYourFreeCreditReport.com

RestoreMyCreditReport.com

IMPROVE YOUR CREDIT SCORE

noreply@blogger.com (Unknown) — Tue, 14 Aug 2007 22:06:00 +0000

Some suggestions
Scores reflect credit payment patterns over time with more emphasis on recent information. In general, a score may improve, if you:

Pay your bills on time. Delinquent payments and collections can have a major negative impact on a score.
Keep balances low on credit cards and other "revolving credit." High outstanding debt can affect a score.
Apply for and open new credit accounts only as needed. Don't open accounts just to have a better credit mix - it probably won't raise your score.
Pay off debt rather than moving it around. Also, don't close unused cards as a short-term strategy to raise your score. Owing the same amount but having fewer open accounts may lower your score.

Review your credit report regularly so you know what is being reported. It won't affect your score to request and check your own credit report.

Items that make scores better
Paying your bills on time is the single most important contributor to a good credit score. Even if the debt you owe is a small amount, it is crucial that you make payments on time. In addition, you should minimize outstanding debt, avoid overextending yourself and refrain from applying for credit needlessly.

Applications for credit show up as inquiries on your credit report, indicating to lenders that you may be taking on new debt. It may be to your advantage to use the credit you already have to prove your ongoing ability to manage credit responsibly.

If you do have negative information on your credit report, such as late payments, a public record item (e.g., bankruptcy), or too many inquiries, you may want to pay your bills and wait. Time is your ally in improving credit. There is no quick fix for bad credit.

One common question that many consumers have regarding their credit score involves understanding how very specific actions will affect their credit score. For example, someone might ask if closing two of his/her installment accounts would improve his/her credit score. While this question may appear to be easy to answer, there are many factors to consider. A credit score is based entirely on the information found on an individual's credit report.

Any change to the credit report could affect the individual's scores. Simply closing two accounts not only lowers the number of open installment accounts (which generally will improve your score) but it also lowers the total number of all open accounts (which generally lowers your score). Furthermore, such an action will affect the average age of all accounts that could either raise or lower your score. As you can see, one seemingly simple change actually affects a large number of items on the credit report. Therefore, it is impossible to provide a completely accurate assessment of how one specific action will affect a person's credit score. This is why the score factors are important. They identify what elements from your credit history are having the greatest impact so that you can take appropriate action.

How long does it take to rebuild scores?
Actually, you don't rebuild scores. You rebuild your credit history, which is then reflected by credit scores. The length of time to rebuild your credit history after a negative change depends on the reason behind the change. Most negative changes in scores are due to the addition of a negative element to your credit report such as a delinquency or collection account.. These new elements will continue to affect your scores until they reach a certain age. Delinquencies remain on your credit report for seven years. Most public record items remain on your credit report for seven years, although some bankruptcies may remain for 10 years and unpaid tax liens remain for 15 years. Inquiries remain on your report for two years.

Learn more at

SeeYourFreeCreditReport.com

RestoreMyCreditReport.com

CREDIT SCORE FACTS

noreply@blogger.com (Unknown) — Tue, 14 Aug 2007 22:03:00 +0000

Types of credit scores
There are primarily two types of scores - consumer scores and lending scores. Consumer scores are generated by individual lenders, who rely on credit reports and other information, such as account history, from their own portfolios.

Why lenders use credit scores
Before credit scores, lenders physically looked over each applicant's credit report to determine whether to grant credit. A lender might deny credit based on a subjective judgment that a consumer already held too much debt, or had too many recent late payments. Not only was this time consuming, but also human judgment was prone to mistakes and bias. Lenders used personal opinion to make a decision about an applicant that may have had little bearing on the applicant's ability to repay debt.

Credit scores help lenders assess risk more fairly because they are consistent and objective. Consumers also benefit from this method. No matter who you are as a person, your credit score only reflects your likelihood to repay debt responsibly, based on your past credit history and current credit status.

Credit score factors
Score factors are the elements from your credit report that drive credit scores. For example, your total debt, types of accounts, number of late payments and age of accounts affect credit scores. Score factors indicate what elements of your credit history most affected the credit score at the time it was calculated.

Score factors are the key to improving risk scores. They tell you what you must address in your credit history to become more creditworthy over time. Score factors are usually very consistent from one score to another, so addressing the items identified by the score factors will help you improve virtually all risk scores.

Lenders must provide consumers with the most significant score factors when they are declined credit.

Find out how you rate with all three major credit repositories.

Learn more at

SeeYourFreeCreditReport.com

RestoreMyCreditReport.com

What is a credit score?

noreply@blogger.com (Unknown) — Tue, 14 Aug 2007 22:02:00 +0000

A credit score is a number lenders use to help them decide: "If I give this person a loan or credit card, how likely is it I will get paid back on time?" Credit scores are also called risk scores because they help lenders predict the risk that you will not be able to repay the debt as agreed. Scores are generated by statistical models using elements from your credit report. However, scores are not stored as part of your credit history. Rather, scores are generated at the time a lender requests your credit report and then included with the report.

Credit scores are fluid numbers that change as the elements in your credit report change. For example, payment updates or a new account could cause scores to fluctuate. There are many different credit scores used in the financial service industry. Scores may be different from lender to lender (or from car loan to mortgage loan) depending on the type of credit scoring model that was used.

How scores are calculated
Designers of credit scoring models review a set of consumers - often over a million. The credit profiles of the consumers are examined to identify common variables they exhibited. The designers then build statistical models that assign weights to each variable, and these variables are combined to create a credit score.

Models for specific types of loans, such as auto or mortgage, more closely consider consumer payment statistics related to these loans. Model builders strive to identify the best set of variables from a consumer's past credit history that most effectively predict future credit behavior.

What's in a credit score?
The information that impacts a credit score varies depending on the score being used. Credit scores are only affected by elements in your credit report, such as:

Number and severity of late payments
Type, number and age of accounts
Total debt
Recent inquiries

If a business card/corporate card or gas card does not appear on your credit report, it will not affect your score. Credit scores do not consider:

Your race, color, religion, national origin, sex or marital status. U.S. law prohibits credit scoring from considering these facts, as well as any receipt of public assistance, or the exercise of any consumer right under the Consumer Credit Protection Act.
Your age
Your salary, occupation, title, employer, date employed or employment history. However, lenders may consider this information in making their approval decisions
Where you live
Any interest rate being charged on a particular credit card or other account
Any items reported as child/family support obligations or rental agreements
Certain types of inquiries (requests for your credit report). The score does not count "consumer disclosure inquiry" requests you have made for your credit report in order to check it. It also does not count "promotional inquiry" requests made by lenders in order to make a "pre-approved" credit offer - or "account review inquiry" requests made by lenders to review your account with them. Finally, inquiries for employment purposes are not counted

History of credit scores
Credit scores came into wide use in the 1980s. Long before credit scores, human judgment was the sole factor in deciding who received credit. Lenders used their past experience at observing consumer credit behavior as the basis for judging new consumers. Not only was this a slow process, but it was also unreliable because of human error.

Lenders eventually began to standardize how they made credit decisions by using a point system that scored the different variables on a consumer's credit report. This point system helped to eliminate much of the bias that previously existed; however, it was still tied to intuitive measures of creditworthiness and was not based on actual consumer behavior.

Credit granting took a huge leap forward when statistical models were built that considered numerous variables and combinations of variables. These models were built using payment information from thousands of actual consumers, which made scores highly effective in predicting consumer credit behavior. When combined with computer applications, scoring models made the credit granting process extremely fast, efficient and objective, facilitating commerce and helping consumers quickly get the credit they need.

Learn more at

SeeYourFreeCreditReport.com

RestoreMyCreditReport.com

How to create a positive credit history

noreply@blogger.com (Unknown) — Tue, 14 Aug 2007 21:57:00 +0000

Your credit report shows how well you managed your financial responsibilities during a certain period of time. Negative information drops off over time, but the positive information remains. To create a positive credit history:

Print clearly when applying for credit.
Consistently use your complete name. Providing complete, accurate and consistent identification on your credit applications helps set up your credit history correctly from the beginning. It also minimizes the chance that your credit file will be incomplete or mixed with another consumer's file.
Pay your bills on time. Most lenders look at the most recent information on a report. So if you've paid your accounts on time for the last two to three years, the lender may weigh that more heavily than a series of late payments from five years ago.
Set up a budget, and live within it. In the age of self-help and empowerment, managing your finances should top your list.
Review your credit report 60 to 90 days before making a major purchase (such as a home or car).

Getting help
If you begin to fall behind on your payments:

Contact your lenders. Ignoring the situation will only add to your problems. Many lenders will work with you to set up a different payment schedule or interest rate. It never hurts to ask.
Pay your bills when they're due. If you have an overdue bill, unpaid debt, tax lien or judgment, pay it off. You may find it easier to pay one affordable consolidating loan rather than several separate accounts.
Stop using credit until your finances are under control.
Look to professionals if you need assistance or if you don't have time to develop your own plan. Quality nonprofit credit counseling organizations help consumers understand credit reports, contact creditors, manage debt and set up budgets.
You might also find credit management help at your local community college or community center.

Be an educated consumer
Going to a credit repair clinic will not be of help to you. There is nothing any credit repair clinic can legally do for you - including removing inaccurate credit information - that you can't do for yourself for free, and their fees can be substantial, ranging from hundreds to thousands of dollars.

The Credit Repair Organization Act is a federal law that prohibits credit repair clinics from taking a consumer's money until they have fully completed the services they promised. It also requires such firms to provide consumers with a written contract stating all the services to be provided and the terms and conditions of payment. Consumers also have three days to withdraw from the contract.

Learn more at

SeeYourFreeCreditReport.com

RestoreMyCreditReport.com

Why reviewing your consumer credit report is so important

noreply@blogger.com (Unknown) — Tue, 14 Aug 2007 21:55:00 +0000

Review your consumer credit report
Whenever you apply for a new credit card, loan or extension of credit, the potential lender will most likely review your credit report before making a decision. You should too! Check it several weeks or even months prior to making a large credit purchase.

Get an easy-to-read summary of your credit accounts and total debt - both existing balances and available limits.
Budget and plan for the future.
Assure the accuracy of the information reported about your credit. This is especially important when you're getting ready to buy an expensive item such as a car or new home

Qualifying for discounted or free reports
You may be eligible to receive a discounted or free credit report if you meet one of the following conditions:

Your request for credit, insurance, employment or rental housing is denied based on information received from Credit Reporting Agencies
"Adverse action" was taken against you based on information in your credit report (e.g., your interest rate was raised or your credit limit was decreased). The name of the credit-reporting agency that provided your credit report and how to contact them for a copy will be provided by the company that declined your credit application or took adverse action.
Some state laws require credit-reporting agencies to provide their residents a free or discounted report each year even if they are not denied credit.
If you certify in writing that you are unemployed and seeking employment or receive public welfare assistance.
If you have reason to believe your credit file contains inaccuracies resulting from fraud.

Learn more at

SeeYourFreeCreditReport.com

RestoreMyCreditReport.com

What's included in a credit report?

noreply@blogger.com (Unknown) — Tue, 14 Aug 2007 21:46:00 +0000

Details about your financial behavior and identification information are contained in your personal credit report. This consumer-friendly report is sometimes called a credit file or a credit history. A copy of your credit report makes it easy for you to understand the information a lender would be seeing if they review your credit history. The typical consumer credit report includes four types of information.

Public record information in some states may also include overdue child support. Bankruptcy information can remain on your credit report up to 10 years; unpaid tax liens can remain for up to 15 years; other public record information can remain up to seven years.

Credit information includes specific account information, such as the date opened, credit limit or loan amount, balance and monthly payment and payment pattern. The report also states whether anyone besides you (a joint account holder or cosigner, for example) is responsible for paying the account. Active positive credit information may remain on your report indefinitely, while most negative information remains up to seven years.

Requests by others to view your credit history will show you who has received information from your credit report and who was given your name during the recent past, as allowed by law. According to the Fair Credit Reporting Act, credit grantors with a permissible purpose may inquire about your credit information without your prior consent. This section includes the date of the inquiry and how long the inquiry will remain on your report.

On your personal credit report ordered directly from RMCR, information about those who inquired for the purposes of extending a pre-approved credit offer are included for your information. These inquiries are not revealed to creditors and do not impact your ability to obtain credit.

Personal information can include your name, current and previous addresses, telephone number, reported variations of your Social Security number, date of birth and current and previous employers.

"Statements of dispute" also may be added by you or your creditors. Creditors report temporary dispute statements when you challenge an account's status with them. The statement is no longer reported when the dispute is resolved, usually within 30 days. If you and your creditor cannot agree on an account's status, you may have a "statement of dispute" added to your credit history. The statement will remain for seven years.

Your RMCR credit report does not contain - and RMCR does not collect - data about race, religious preference, medical history, personal lifestyle, political preference, friends, criminal record or any other information unrelated to credit. Nor is there information about your checking or savings accounts.

Learn more at

SeeYourFreeCreditReport.com

RestoreMyCreditReport.com

WHAT IS THE FAIR CREDIT REPORTING ACT (FCRA)?

noreply@blogger.com (Unknown) — Tue, 14 Aug 2007 06:16:00 +0000

Fair Credit Reporting Act (Summary)

Public Law 91-508

The Fair Credit Reporting Act (FCRA) allows a consumer to challenge the information on his credit report on the basis of “completeness and accuracy.” If, after a reinvestigation by the credit bureau, the disputed information “is found to be inaccurate or can no longer be verified, the [credit bureau] shall promptly delete such information.”

The credit bureaus are required to complete the investigation within a “reasonable period of time.” This period has been set at thirty days.

The credit bureaus can ignore the consumer dispute if they have reason to believe that the dispute is “frivolous or irrelevant.” The FTC commentary on the FCRA cites, as an example of a frivolous dispute, a dispute wherein the consumer challenges all negative items on his credit report without providing any allegations regarding specific items in the credit file. However, “A [credit bureau] must assume a consumer's dispute is bona fide, unless there is clear and convincing evidence to the contrary.”

When a consumer challenges a negative credit listing on the basis of extenuating circumstances, such as health problems, divorce, job loss, etc., the credit bureaus are entitled to ignore that dispute.

When a consumer submits a dispute which is neither frivolous nor irrelevant by credit bureau standards, the credit bureau must “at a minimum... check with the original sources or other reliable sources of the disputed information and inform them of the nature of the consumer's dispute.” In some cases of consumer dispute, “Reinvestigation and verification may require more than asking the original source of the disputed information the same question and receiving the same answer.”

In other words, when a consumer files or re-files a valid dispute, the credit bureaus must contact the source of the credit information (the creditor) and confirm that the information is accurate, verifiable, and not obsolete. In some circumstances, the credit bureau is required to go beyond a simple verification of the creditor's own computer record. If, within 30 days, the credit bureau has not received verification from the creditor, then the credit bureau must promptly delete the credit listing.

In theory and law, the process is deceptively simple, thus leading many people to think that they can easily handle this themselves “for the price of a few postage stamps.” Most quickly discover that the credit bureaus have made it much more difficult than one would imagine.

Learn more at

RestoreMyCreditReport.com

DO I NEED TO PAY MY BILLS?

noreply@blogger.com (Unknown) — Tue, 14 Aug 2007 06:14:00 +0000

If there are delinquent accounts appearing on your credit reports that have not been paid off, the actual debt behind the listing remain the same even if we delete the account from your credit report. You still owe the same money that you owed in the first place. If you don’t pay the debt, the creditor or collection agency could always re-report the item. So removing the listing without addressing the debt is only a temporary solution.

Learn more at

RestoreMyCreditReport.com

SOUNDS GOOD AND ALL, BUT IS IT LEGAL?

noreply@blogger.com (Unknown) — Tue, 14 Aug 2007 06:13:00 +0000

Although the credit bureaus would like to have you think otherwise, there is absolutely nothing illegal about disputing items on your credit report. In fact, it is your explicit right by law to do so. (See Fair Credit Reporting Act) Credit report repair is as legal as pleading "not guilty" in a court of law.

Learn more at

RestoreMyCreditReport.com

HOW DO YOU RESTORE BAD CREDIT?

noreply@blogger.com (Unknown) — Tue, 14 Aug 2007 06:11:00 +0000

After you sign up for our program we will use your credit reports to draft letters to dispute negative items on your behalf. These letters are designed to communicate your dispute in such a way that the credit bureaus will accept the dispute and conduct an investigation.

While this may sound easy, any person who has attempted to dispute their own credit will tell you otherwise. According to federal law, the credit bureaus can ignore your dispute under a variety of conditions. In our experience, a large part of dispute letters sent directly from consumers are rejected under one pretext or another.

At the conclusion of the credit bureau's investigation, a new copy of the credit report is sent to your home along with any deletions or improvements. You then copy and send us the new credit report and the cycle repeats itself at timed intervals.

A disputed credit listing must be accurate and verifiable for it to remain on the credit report. If the credit listings is only somewhat inaccurate, the credit bureau may simply change the item to reflect the accurate status. Very often, though, disputed credit items cannot be verified: the creditor either no longer possesses the information or does not wish to go to the trouble of verifying it. Also, the reinvestigation must be completed within 30 days or the listing must be removed. For these reasons, properly disputed credit listings are removed with remarkable frequency.

Each time an investigation is commenced, the odds of receiving a particular deletion increases.

Learn more at

RestoreMyCreditReport.com

CAN I RESTORE MY OWN CREDIT?

noreply@blogger.com (Unknown) — Tue, 14 Aug 2007 06:09:00 +0000

Disputing the credit report is easy. Getting results from the credit bureaus is amazingly difficult, complex, and infuriating. It is not a coincidence that the Federal Trade Commission receives more complaints against credit bureaus than any other type of business. Remember, the credit bureaus are primarily interested in protecting their profits. Investigating your challenge consumes these profits. Short of sparking a mass number of lawsuits, the credit bureaus seem to do everything in their power to discourage consumers from making progress in their restoration efforts.

Restoring your own credit is like repairing your own transmission or representing yourself in court; it is possible, but you must decide if you are willing to take the time and assume the risks of doing it yourself.

Learn more at

RestoreMyCreditReport.com

DOESN'T PAYING MY BILLS RESTORE MY CREDIT?

noreply@blogger.com (Unknown) — Tue, 14 Aug 2007 06:07:00 +0000

You would think that would be true. But, again, the credit reporting system just doesn't work that way.

When you pay an old debt, the negative credit listing doesn't disappear. Once paid, it will appear on your credit report as a paid delinquency, charge off or collection (whatever the case may be.)

That is, you won't get very far paying your debts unless you also work to restore your credit at the same time.

Learn more at

RestoreMyCreditReport.com

WHAT IS A CREDIT REPORT?

noreply@blogger.com (Unknown) — Tue, 14 Aug 2007 06:05:00 +0000

Whenever you apply for any type of credit or financing, a credit report is pulled from at least one of the three major credit bureaus. While there are hundreds of smaller credit bureaus around the country, virtually every credit bureau is affiliated with either, Experian, Trans Union, or Equifax.

These credit bureaus collect and maintain information on the vast majority of Americans, but they are not affiliated with the government in any way. The credit bureaus are for-profit corporations and they sell your personal information for money.

The credit bureaus receive your personal information through the same lenders who grant you credit. They have agreements with each of these credit grantors that require the credit grantor to inform the credit bureaus of everything that occurs in your relationship with the credit grantor. If you make a payment late, the negative credit listing is quickly reported to at least one of the three major credit bureaus and is added to your credit history. Credit reports are not just a record of how you are currently managing your credit accounts. Credit reports are histories of everything you are doing with your credit now, and everything you have done in the past.

The credit bureaus collect this information, list it on your credit report, then sell it to other credit grantors who wish to see your credit history before they decide to lend you money. The credit grantors who review your credit are especially interested in any negative credit. If you have shown any tendency to pay late, or to disregard your financial commitments in the past, then the creditors' computers will immediately reject your application.

Just like when you were in high school, your credit report is your financial report card to the world.

Learn more at

RestoreMyCreditReport.com

HOW MUCH DOES BAD CREDIT COST?

noreply@blogger.com (Unknown) — Tue, 14 Aug 2007 06:02:00 +0000

As you consider our service it would do well to look at the price you are already paying for bad credit. If the cost of our service can produce much greater savings, you would be wise to make the investment. Below are just a few examples of the cost of bad credit.

Credit Cards
Most if not all prime credit cards are entirely out of reach to consumers with bad credit. And the few credit cards that are available to them (known as “sub-prime” cards) typically require excessive setup fees or recurring monthly fees, offer very low credit lines, often require cash deposits, and in most cases do not even report your positive credit activity to the credit bureaus.

Automobile Financing
If you are making payments on a car, you are probably paying between $5,000 and $9,000 more just for having bad credit. This added interest shows up every month in a higher payment. Take a look:

$20,000 CAR PAID OVER 5 YEARS:

CREDIT STATUS

RATE

PAYMENT

COST OF BAD CREDIT

Perfect

Mildly Damaged

Damaged

10%

14%

20%

$424.94

$465.37

$529.88

$0.00

$4,722.54

$8,593.30

Home Mortgage
Bad credit in auto financing can really hurt, but it is nothing compared to the cost of bad credit when a home is involved. A typical home can cost between $150,000 and $400,000 more in interest if you are buying the home with bad credit.

$300,000 HOME PAID OVER 30 YEARS:

CREDIT STATUS

RATE

PAYMENT

COST OF BAD CREDIT

Perfect

Mildly Damaged

Damaged

12%

$1965.90

$2413.86

$3085.83

$0.00

$150,465.72

$392,374.89

CAN CREDIT REPAIR COMPANIES BE TRUSTED?

noreply@blogger.com (Unknown) — Tue, 14 Aug 2007 05:57:00 +0000

Many "credit repair" companies claim to remove negative credit with the flick of a wrist. Their advertisements make bold assertions and money-back guarantees: "Bankruptcy, tax liens, judgments... no problem!! One hundred percent guaranteed!! Credit report 100% cleared in 30 days!!" So, can credit repair companies really guarantee results? Not a chance! No credit repair company is so good that it can guarantee a specific outcome. It would be like a defense lawyer guaranteeing that the jury will find his client innocent. Guarantees are a sure sign of credit repair fraud. A warranty, where the credit repair company promises a refund if certain results don’t occur, is a better, more realistic claim.

While some credit repair companies are outright frauds, others are not frauds and they use the dispute process to obtain impressive results. In fact, they delete thousands of negative credit listings every day - regardless of whether or not the listings are technically accurate.

Unfortunately, the deceptive credit repair companies have given the good guys a bad name. These fraudulent companies were started by entrepreneurs with a penchant for marketing. Consumers have flocked to these "credit doctors" only to discover that their advertisements proved far more impressive than their results.

Go with the professionals who have gained the trust of over 100,000 consumers since 1991.

Learn more at

RestoremyCreditReport.com

Welcome to RestoreMyCreditReport.com

noreply@blogger.com (Unknown) — Tue, 14 Aug 2007 05:43:00 +0000

RestoreMyCreditReport.com can help you be approved for credit by fixing your credit report. Let our credit repair experts fight to improve your credit score, today!