Self Help may be best

2005-04-17T15:05:00.000-07:00

creditrepairboard.com - <a href="http://www.mintcreditrepair.com/credit_score/index.html">Credit Repair, Self Help may be best.

Credit Repair, Self Help may be best.

Date: Sunday, April 10 @ 12:13:29 EDT
Topic: Credit Repair information and tips.

You see the advertisements in newspapers, on TV, and on the Internet.
You hear them on the radio. You get fliers in the mail. You may even
get calls from telemarketers offering Credit Repair services. They all
make the same claims:

"Credit problems?
No problem!"

"We can erase
your bad credit-100% guaranteed."

"Create a new
credit identity-legally."

"We can remove
bankruptcies, judgments, liens, and bad loans from your credit file
forever!"

Do yourself a favor
and save some money, too. Don't believe these statements. Only time, a
conscious effort, and a personal debt repayment plan will improve your
credit report.

This brochure explains how you can improve your credit worthiness and
lists legitimate resources for low or no-cost help.

The Scam

Everyday, companies nationwide appeal to consumers with poor credit
histories. They promise, for a fee, to clean up your credit report so
you can get a car loan, a home mortgage, insurance, or even a job. The
truth is, they can't deliver. After you pay them hundreds or thousands
of dollars in up-front fees, these companies do nothing to improve
your credit report; many simply vanish with your money.

The Warning Signs

If you decide to respond to a Credit Repair offer, beware of companies
that:

Want you to pay
for Credit Repair services before any services are provided;

Do not tell you
your legal rights and what you can do-yourself-for free;

Recommend that
you not contact a credit bureau directly;

Suggest that you
try to invent a "new" credit report by applying for an Employer
Identification Number to use instead of your Social Security Number;
or

Advise you to
dispute all information in your credit report or take any action
that seems illegal, such as creating a new credit identity. If you
follow illegal advice and commit fraud, you may be subject to
prosecution.

You could be charged
and prosecuted for mail or wire fraud if you use the mail or telephone
to apply for credit and provide false information. It's a federal
crime to make false statements on a loan or credit application, to
misrepresent your Social Security Number, and to obtain an Employer
Identification Number from the Internal Revenue Service under false
pretenses.

Under the Credit Repair Organizations Act, Credit Repair companies
cannot require you to pay until they have completed the promised
services.

The Truth

No one can legally remove accurate and timely negative information
from a credit report. But the law does allow you to request a
reinvestigation of information in your file that you dispute as
inaccurate or incomplete. There is no charge for this. Everything a
Credit Repair clinic can do for you legally, you can do for yourself
at little or no cost. According to the Fair Credit Reporting Act:

You are entitled
to a free copy of your credit report if you've been denied credit,
insurance or employment within the last 60 days. If your application
for credit, insurance, or employment is denied because of
information supplied by a credit bureau, the company you applied to
must provide you with that credit bureau's name, address, and
telephone number.

You can dispute
mistakes or outdated items for free. Ask the credit reporting agency
for a dispute form or submit your dispute in writing, along with any
supporting documentation. Do not send them original documents.

Clearly identify
each item in your report that you dispute, explain why you dispute the
information, and request a reinvestigation. If the new investigation
reveals an error, you may ask that a corrected version of the report
be sent to anyone who received your report within the past six months.
Job applicants can have corrected reports sent to anyone who received
a report for employment purposes during the past two years.

When the reinvestigation is complete, the credit bureau must give you
the written results and a free copy of your report if the dispute
results in a change. If an item is changed or removed, the credit
bureau cannot put the disputed information back in your file unless
the information provider verifies its accuracy and completeness, and
the credit bureau gives you a written notice that includes the name,
address, and phone number of the provider.

You also should tell the creditor or other information provider in
writing that you dispute an item. Many providers specify an address
for disputes. If the provider then reports the item to any credit
bureau, it must include a notice of your dispute. In addition, if you
are correct-that is, if the information is inaccurate-the information
provider may not use it again.

If the reinvestigation does not resolve your dispute, have the credit
bureau include your version of the dispute in your file and in future
reports. Remember, there is no charge for a reinvestigation.

Reporting
Negative Information

Accurate negative information generally can be reported for seven
years, but there are exceptions:

Bankruptcy
information can be reported for 10 years;

Information
reported because of an application for a job with a salary of more
than $75,000 has no time limitation;

Information
reported because of an application for more than $150,000 worth of
credit or life insurance has no time limitation;

Information
concerning a lawsuit or a judgment against you can be reported for
seven years or until the statute of limitations runs out, whichever
is longer; and

Default
information concerning U.S. Government insured or guaranteed student
loans can be reported for seven years after certain guarantor
actions.

The Credit Repair
Organizations Act

By law, Credit Repair organizations must give you a copy of the
"Consumer Credit File Rights Under State and Federal Law" before you
sign a contract. They also must give you a written contract that
spells out your rights and obligations. Read these documents before
signing the contract. The law contains specific protections for you.
For example, a Credit Repair company cannot:

make false claims
about their services;

charge you until
they have completed the promised services; or

perform any
services until they have your signature on a written contract and
have completed a three-day waiting period. During this time, you can
cancel the contract without paying any fees.

Your contract
must specify:

the payment terms
for services, including their total cost;

a detailed
description of the services to be performed;

how long it will
take to achieve the results;

any guarantees
they offer; and

the company's
name and business address.

Have You Been
Victimized?

Many states have laws strictly regulating Credit Repair companies.
States may be helpful if you've lost money to Credit Repair scams.

If you've had a problem with a Credit Repair company, don't be
embarrassed to report them. While you may fear that contacting the
government will only make your problems worse, that's not true. Laws
are in place to protect you. Contact your local consumer affairs
office or your state attorney general (AG). Many AGs have toll-free
consumer hotlines. Check with your local directory assistance.

Need Help? Don't Despair

Just because you have a poor credit report doesn't mean you won't
be able to get credit. Creditors set their own credit-granting
standards and not all of them look at your credit history the same
way. Some may look only at more recent years to evaluate you for
credit, and they may grant credit if your bill-paying history has
improved. It may be worthwhile to contact creditors informally to
discuss their credit standards.

If you can't resolve your credit problems yourself or you need
additional help, you may want to contact a credit counseling service.
There are non-profit organizations in every state that counsel
consumers in debt. Counselors try to arrange repayment plans that are
acceptable to you and your creditors. They also can help you set up a
realistic budget. These counseling services are offered at little or
no cost to consumers. You can find the office nearest you by checking
the white pages of your telephone directory.

In addition, nonprofit counseling programs sometimes are operated by
universities, military bases, credit unions, and housing authorities.
They're also likely to charge little or nothing for their services.
Or, you can check with your local bank or consumer protection office
to see if it has a list of reputable, low-cost financial counseling
services.

Do-It-Yourself Check-Up

Even if you don't have a poor credit history, it's a good idea to
conduct your own credit check-up, especially if you're planning a
major purchase, such as a home or car. Checking in advance on the
accuracy of the information in your credit report could speed the
credit-granting process.

You're entitled to one free report a year if you can prove that (1)
you're unemployed and plan to look for a job with 60 days, (2) you're
on welfare, or (3) your report is inaccurate because of fraud.
Otherwise, a credit bureau may charge you up to $9.00 for a copy of
your report.

Credit bureaus usually are listed in the yellow pages of your
telephone book under "credit reporting agencies." Three large national
credit bureaus supply most credit reports: Equifax, Experian and Trans
Union. You may want to contact each of them for a copy of your report.

This article comes from creditrepairboard.com

http://creditrepairboard.com

The URL for this story is:

http://creditrepairboard.com/modules.php?name=News&file=article&sid=1

mintcreditrepair.com

2005-04-03T10:23:00.000-07:00

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