When it comes to the subject of "Credit Repair", you have choices. Should you Do it Yourself or Pay someone for credit repair services?

There is no clear answer to this question because it depends on several factors:

There is a misnomer that a professional credit repair company can "magically" make bad credit disappear from your credit report!

The point of credit repair is to make sure that any ERRORS on your CREDIT REPORT are removed.

What kind of errors can be removed from your Credit Report?

• debts that you have paid off that still show an outstanding balance due
• debts or a bankruptcies that have been on your credit report from longer than the statute of limitations in your state allows
• judgments that have been satisfied (paid-in-full or settled)
• Incorrect personal information...Social Security Number, Date-of-Birth, etc.

Credit Repaire is simple, yet can be VERY TIME CONSUMING!

• Order your credit reports (www.annualcreditreport.com)
• Review all three credit reports very carefully
• Dispute any errors you find
• Document ALL communication & keep copies of EVERYTHING
• Follow-UP, Follow-Up, Follow-Up

Although these steps seem easy, you will most likely have to dispute items several times before getting to a resolution with the credit bureau.  Some items will be easy to clean up, such as incorrect address or employer information.  However, removing trade lines from your credit report can be more tricky and can take several months and many hours of your time to complete.

Why pay for Credit Repair services?

Although the Credit Repair process is relatively simple, it can be extremely time consuming.  A reputable Credit Repair agency will handle the hours of paperwork and follow-up for you for a relatively small fee. Plus, they can often clean up your credit report much faster than you can on your own. Good Credit Repair agencies have been doing this work for years and know the tricks and techniques to get items removed quickly.

It's important to do your research and only work with a company that you trust and that has a good BBB rating.  There are a lot of scammers out there, but there are a lot of good companies too. 

Look for a Credit Repair company that charges fees based on performance.  Most good Credit Repair companies will bill you a set amount once an item has been removed from your credit report, however, there are others that will charge a monthly fee until the disputed items have been removed. 

It's up to you to decide if it makes sense to pay for services or do it yourself.  Only you can make that decision based on your available time and budget.  If you have outstanding debts that you actually owe, we can help you eliminate those debts for much less than what you currently owe. 

If you'd like more information, give us a call at 877-492-4109 or simply click on the link below for a free debt elimination evaluation.

Finding out your identity has been stolen is tough. You’ll be angry and frustrated that this has happened to you. But worse than that will be the frustrations you encounter as you’re trying to clean up the mess.

Since identity theft tends to start as a financial crime in most cases, the most important part of clearing up the damage is fixing credit report errors or unauthorized charges and accounts opened in your name. The key to cleaning up your credit report is to move quickly and be patient.

The faster you catch and dispute errors, the easier it will be to clean them up. Just understand that even when errors are caught early, disputing a credit report entry will take time.

What are your rights when dealing with identity theft?

The Fair Credit Reporting Act (FCRA) of 1970 made it a law for credit reporting agencies such as TransUnion, Experian, and Equifax  to investigate disputes about the information contained on your credit report. Even so, they aren’t required to handle the disputes with a good attitude and a smile on their face. In fact, it’s not uncommon for the credit reporting agencies to claim that disputes are frivolous or even for them to claim that your request for dispute is illegal. That’s not true, which is why you need to understand your rights as a consumer.

You have the right to dispute inaccurate and unauthorized entries on your credit report. According to the FCRA, you’re also entitled to:

• A written explanation of the results of any investigation resulting from such a dispute
• A free copy of your credit report once any corrections have been made.

Once an investigation is complete and your credit report has been corrected, you also have the right to request that a copy of the updated report be delivered to every creditor that has pulled your credit in the last six month and every employer that has requested in the last two years. The catch is, you must request this services and must be done in writing.

What happens if the investigation finds you to still be liable for the debt?  

Sometimes an investigation doesn’t lead to an answer that’s in your favor. If an investigation finds that you’re still liable for an entry on your credit report, then you can request, in writing, that the dispute be noted on your credit report and that your dispute letter be included each time your full credit report is requested.

How long does the investigation process take?

You have the right to a reasonably speedy investigation of any dispute that you make. By law, that investigation should be complete within 20 business days of the date that the credit reporting agency receives your dispute letter. That usually means you can expect to see the results of their investigation within 30-45 days after submitting the dispute. If you don’t have results within that time frame, you can follow-up on your dispute and you may have the right to have the disputed entry removed from your credit report, regardless of the results of the investigation. Please note, however, this is an activity that needs to be handled by appropriately qualified legal counsel.

Don’t be a victim; know your rights, and stand up for yourself.

If you have ever shopped around for car insurance, you probably already know that there are a number of factors that affect the rates you will be paying. Age, experience, and the type of vehicle you drive all seem like reasonable criteria, but what about your credit score? Whether you are aware of it or not, your credit rating in most cases does affect your insurance rates; knowing your credit rating and what it means for your rates makes it easier for you to get the best deal.

How Does My Credit Score Affect My Insurance?

We all know that your credit rating can affect your ability to get a loan or purchase a home, but how your credit score affects your skill as a driver may not seem apparent—because it does not. The use of credit ratings as criteria for insurance premiums is a controversial topic, and the decision of insurance companies to include them is not fully understood. Your best strategy in determining what role your credit score has on your rates is to contact your insurance company and ask them for information.

How Do I Find My Credit Score?

If you are concerned about the effect of your credit score on your car insurance rates, you can easily determine your credit score. You can obtain your credit score from the three main credit bureaus such as Equifax, Experian, and Trans Union.  Each of these agencies will charge you a small fee to see your credit score when getting your FREE Annual Credit Report.  If you don’t need to see your credit report, you can check Credit Karma for your FREE CREDIT SCORE.  Having an up-to-date and accurate breakdown of your credit rating before contacting your insurance company will give you the power of knowing whether or not their evaluation is a fair reflection of your credit rating.

What Can I Do If I Have A Bad Credit Score?

If you do have a low credit score, repairing your credit is your best strategy in eliminating this negative factor in your insurance company's calculation of your premiums; this will not reduce your rates in the short term, however. If your credit score has a considerable effect on your rates, your only real option in the short term is to shop around for a new policy at renewal time.

Though the fairness of insurance companies in using credit scores as criteria for evaluating the risk of insuring a particular individual is arguable, at this point it cannot be changed. Arming yourself with information about how your rates are calculated—and remembering that as a consumer you have the right to shop around—will help reduce the impact of this factor.

photo by: jcrakow

Have you or someone you know been a victim of Credit Card Skimming?  Skimming is a method by which thieves steal your credit card information, and all it requires is a little technology and a lot of criminal intent by those who handle your credit card.

Unfortunately, this is becoming a bigger and bigger problem across the country. You need to understand how Credit Card Skimming works and what you can do to protect yourself.

Here's how it works

The bad guys buy magnetic card readers (readily available online) and attach them to legitimate card readers at ATM machines, gas station pumps, movie rental kiosks, or anywhere they think they can get away with it.

The counterfeit card reader captures the credit card information of everyone who uses the machine. (On ATM machines, crooks also attach tiny video cameras to steal PIN numbers.)

They then remove the phony device and use the stored information to buy stuff online or write the data onto new magnetic strips to make counterfeit credit cards or ATM cards.

Counterfeit Credit Card Trends

Portable skimmers (small enough to fit in a palm) can be used by anyone who handles your credit card, such as a waiter. All they have to do is get your card out of your sight for a second. That's enough time to swipe it through the device, and steal your information without you suspecting a thing.

Follow these tips to protect yourself from Credit Card Skimming:

• Don't let your credit card out of sight. Watch carefully anyone who handles your card.

• Keep track of receipts and check your credit card statements regularly to make sure you authorized all purchases.

• Report any unauthorized purchases immediately to your credit card companies.

• Don't use a credit card reader if there are any signs of tampering. Don't swipe your card through devices that offer to clean the magnetic strip. Those are scams designed to capture your credit card information.

Have you been a victim of Credit Card Skimming? 

• Call the police. When your identity or credit card is stolen, it's just like having a car stolen. Make a police report and hang on to the police report number.
• Contact your bank or credit card issuer immediately and tell them your card was stolen. If you don't make a report quickly, you may be liable for some or all of the unauthorized charges.
• If you report swiftly, federal law caps your liability at $50. Most credit cards voluntarily go further, and won't charge you at all -- again, if you report quickly. "If you end up being a victim, it's probably not going to cost you any money," Brewer says. "If you notify your bank quickly, they'll return the money. Don't get hung up about the fact that someone might drain your bank account. The most you will probably spend on it is wasted time and lots of aggravation, since it can be a long process to get everything worked out."
• Contact the three major credit bureaus -- TransUnion, Equifax and Experian -- to request a security freeze, which prevents new credit authorizations without your consent. Brewer suggests visiting the website www.annualcreditreport.com. "It's an institution created in response to a large number of identity theft victims and the cost incurred to them," Brewer says. Through the site, which was mandated by federal law in response to consumer outcry, you are entitled to receive one free credit report each year from each of the three major credit bureaus.

Need help eliminating your credit card debt?

Our Debt Consolidation and Debt Settlement programs can get you out of debt fast and save you money.  Give us a call, or click on the link below to get your FREE Debt Elimination Summary or talk to one of our Debt Solutions Specialists today!

photo by: akpoff

You CAN correct errors on your credit report in 3 easy steps!

Step #1 - Get a Copy of your Credit Report

If you are willing to spend a little time and effort, there is no reason to spend hundreds of dollars paying someone else to correct errors on your credit report.

Start by pulling a current copy of your credit report. You can do this absolutely free once per year at www.annualcreditreport.com. 

This site allows you to access your credit report from all three of the major credit reporting agencies (Experian, Equifax, & TransUnion)

If you want to see your credit score, you will have to pay a small fee.  However, if you are just looking to clean up your credit report, there is really no reason to pay for your score at this time. 

Step #2 - Take a Close Look at Each Credit Report

If you have paid off old accounts and they are still showing a balance or if it was charged off and moved to a collection agency, you can dispute the entry and it will be removed.

Most disputes can be addressed online.  Each agency will have it's own procedure, but basically you will need to provide them with proof of payment such as:

• A statement from the creditor or collection agency showing the account has been paid.
• A canceled check showing the payment was processed.
• A bank statement showing canceled check or check-by-phone entry to the agency.

Here are the links to dispute errors:

• Experian Disputes
• Equifax Disputes
• Transunion Disputes

Step #3 - Follow Up!

Correcting or removing errors on your credit report may take 30-60 days. You should receive an email or letter as to the status of your dispute, If you don't, go back online to see what's been done.

If the credit bureaus have not made the correction, make a follow up dispute!  If you have provided proof (as above) that this account has been paid or settled-as-agreed, they will eventually correct the error, so don't give up.

You may need to call the agency and speak to a representative if you can't find any updates online.

Experian:       888-397-3742

Equifax:         800-685-1111

TransUnion:  800-916-8800

If you have accounts that you have not paid on in some time, we may be able to negotiate a settlement at 50% or less!

photo by: TrinityCreditServices

Improve Your Credit Score

When many people think of credit reports and credit scores, they see them as important if you want to apply for a loan. And of course they are important when you apply for a loan. But your credit report and score are also absolutely critical to getting rid of debt. With a good credit score, you qualify for lower interest rates that can help bring down your total interest charges. With bad credit, you’re stuck paying double digit rates. So let’s look at some tips and tools that can help you:

1. Understand the Importance of Your Credit Score: As noted above, your credit score is an important tool in getting out of debt as quickly as possible. To underscore this, check out these stats from myfico.com for individuals with a FICO score of 660 (fair credit) versus 760 (excellent credit):

   • Mortgage: The average interest on a home loan today is about 4.766% for excellent credit, but 5.379% for fair credit.

   • Car Loan: With a credit score of 760, you can expect a car loan interest rate of about 6.3%. With a score of 660, the rate increases to about 9.8%.

   • Home Equity: Excellent credit can expect a rate of around 8% or lower, while fair credit borrowers will pay as much as 11% or higher.

2. Get your Free Credit Report: The starting point is to get your free credit report and check it for errors.
3. Get your Free Credit Score: Next you should get your free FICO score. You can’t get this from annualcreditreport.com, but there are several sources that offer your real FICO score in exchange for signing up for a free trial of a credit watch program. You can always cancel before the end of the free trial if you don’t want to keep the service.
4. Pay Your Bills on Time: There are a number of factors that go into a credit score, but one of the most important is paying your bills on time. Do whatever is necessary not to forget a payment, and make sure you make the payment far enough in advance of the due date so that there is no chance it will be late.
5. Don’t Close Accounts: As a general rule, don’t close credit card and other revolving accounts. One of the factors in determining credit score is the amount of debt you have in comparison to the amount of available credit. The greater the available credit, the better. You can always cut up some of your cards if you don’t want to risk using them, but don’t cancel them. Here are some other tips to improving your credit score.

phot by: Horia Varlan