Posts Tagged ‘credit repair letters’

Working on Better Credit? What You Need To Know About Writing Better Dispute Letters

Here at CR Publishing we are dedicated to helping you to build great credit.

But what if you’ve already had a problem and you’re trying to repair or improve a less than stellar FICO or credit score?

Well, some people prefer to learn about the system and to gradually and effectively improve their own credit. Our Credit Repair Intelligence Guide helps you with that. And, it can be ordered right here.

But other people make the decision to use a credit repair company to help them. And one of the things that credit repair companies help you to do are dispute letters that can clarify errors on your report and get them corrected OR removed. NOTE: The Credit Repair Intelligence System also has a tool to help DIYers to do dispute letters.

Either way, here are a few things you want to ensure are included in every dispute letter you or your credit repair company send.

1) Make sure every dispute letter contains the accurate spelling of your first and last name. You should also include your social security number and current home address to avoid confusion.

The credit bureaus won’t resolve a dispute unless they can verify the consumer who the dispute is related to.

This means you or the credit repair company must clearly identify yourself in the letter.

2) The credit bureaus may also require you or the credit repair company to supply supporting documentation verifying identity. They may, for example, want to see your Driver’s License and/or Social Security Card.

NOTE: If you don’t have a driver’s license, you can include another legal form of ID. Other acceptable forms of ID include a passport or state ID.
In many cases your clients can use a pay-stub or W2 form which have both their name and social security number on them.

3) You (or the company) should also include the account name and account number on the dispute letter.

Sometimes creditors report separate account numbers to each bureau. Look at each account number for each credit bureau you are disputing. Make sure you have that creditor’s specific account number correct on your dispute letter.

In conclusion, whether you’re preparing the letter, or the credit repair company is doing it, be sure to include these items with your dispute to have the best results.

And remember, it’s the REASON for the dispute that the bureaus and their computers will mainly look at to process your disputes, so insure you are clear about your reason for the dispute.

Don’t want to create dispute letters on your own? Keep in mind, Credit Repair Intelligence Guide also gives you access to a dispute letter generator. Need more help? Email me at support@creditrepairpublishing.com and we can refer you to a reputable third party credit repair company that has an outstanding processing department that can create, print and mail the letters for you.

CLICK HERE: to learn more about CR Publishing’s products related to building better credit.

Click here to buy the CREDIT REPAIR INTELLIGENCE System and to get access to the dispute generator.

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FICO Scores On The Rise… Lets Keep It That Way!

Can You Say The Same About Yours? I know I can…

FICO ScoresThe Wall Street Journal recently released an article detailing that the number of sub-prime FICO Scores is actually falling and recently hit its lowest point since 2005.

This can have a very interesting affect on the economy as more people have more buying power and can actually inject more money and responsible consumer spending into the economy making it stronger and stronger.

However, it might be a slippery slope. While it’s a good thing FICO Scores are on the rise how do we keep them above the sub-prime rates we have been seeing? It all comes from education. It’s a pretty safe assumption that a bad credit score, whether it comes from unpaid bills or lack of credit history, normally comes from a lack of consumer education.

So…

That’s exactly what we need to keep the levels of sub-prime borrowers below the all time high of 25% in 2005. And we have a proven system that is capable of helping you build and keep your score where you need it!

I’m not say that you need to get our system (that’s proven to work). If you’re content with your credit score right now and you don’t want to build or protect it that’s fine! There is plenty of fun and education materials and videos for free on our site that you can still benefit from.

But…If you are interested in getting and keeping great credit without using a credit repair company and without spending weeks, months, and probably even years of trial and error using “free” out-of-date content you find on the internet then the Credit Repair Intelligence System, The Debt Free Bible, and The Starter’s Guide To Building and Protecting Your Credit are essential.

We did all the trial and error for you and spent a pretty penny doing it. All so you can have the credit score and debt free life that you want to live. So if you are ready to have the life you want and deserve order right now. (I’m even gonna cover shipping when you add the Starter’s Guide to your order).

If you are not ready to do it yourself call us to talk about your options! The consultation is free and can often be the vital first step to better credit and a better life. Call us 1.800.450.1248

Start with our complimentary e-book to find out some of the secrets the banks and credit bureaus don’t want you to know…

Want to read the Wall Street Journal Article:

http://www.wsj.com/articles/consumers-improving-credit-scores-give-banks-reason-to-cheer-1466587801

What Our Lawyers Make Us Say: CR Publishing publishes and provides quality and actionable do it yourself products and information to consumers who want to improve credit and/or to get rid of debt. The articles and information provided herein are for informational purposes only and are not intended as a substitute for professional advice.
FICO is a registered trademark of the Fair Isaac Corporation in the United States and other countries.

What Law Actually Makes The Creditors Listen?

FCBAThere is a lot of confusion about how the the Fair Credit Billing Act (FCBA) can be used in the credit repair and credit building process.

The FCBA is really a part of the more extensive Truth in Lending Act and it regulates how creditors are supposed to behave and allows you the right to request large amounts of information regarding your billing and payment history.

One provision of the FCBA is often not utilized because it can be confusing to understand from the general wording. This provision is actually the foundation of a great credit repair tactic.
 
The provision essentially states that an individual has 60 days to dispute an unauthorized charge. This seems pretty straight forward. However, in the summary of the tactic, we did not request a disputed charge. The tactic that we want to use here involves another provision of the law- the “Information Request”, and this is a broader term that is not restricted by a limited time period.
 
The FTC summarizes the statute’s prohibitions as: “unauthorized charges; charges that list the wrong date or amount; charges for goods and services you didn’t accept or weren’t delivered as agreed; math errors; failure to post payments and other credits, such as returns; failure to send bills to your current address — provided the creditor receives your change of address, in writing, at least 20 days before the billing period ends; and charges for which you ask for an explanation or written proof of purchase along with a claimed error or request for clarification.”
 
As you read the list of requirements the FCBA, just imagine the credit repair possibilities. Consider something like this…

“In compliance with the Fair Credit Billing Act you are obligated to fulfill with my request for documentation to substantiate the reporting of my account to the major credit reporting agencies. Please provide documentation on how you charged my account, how you calculated the interest rate, as well the full accounting history of where you mailed each of my bills. If you are unable to comply, then please remove your reference to this account from every reporting agency you have reported to. Your expeditious compliance is expected.”

 
The above example from DisputeSuite.com is considered an “information request” and is something no creditor wants to mess with. Creditors are in the business of lending money and not dealing with credit reporting information. So instead of wasting their time with finding all the requested information, they will often simply remove the marking.
 
While FCBA was created to assist consumers with current account disputes, it is actually very effective with older derogatory marks. No company wants to be accused of breaking the law even if it was a few years in the past. This is especially true of creditors. Creditors are highly motivated to avoid even the hint of a lawsuit or some public embarrassment.
 
So this is something to keep in mind when disputing with creditors. You will want to ensure all the below stipulations are met, otherwise request they stop reporting the account to the credit bureaus.
• The account was created at your request.
• Every item billed to an account was billed correctly.
• Every statement was created in a timely manner.
• Every statement was sent to the correct address.
• The creditor never ignored change of address requests.
• The creditor never ignored disputed charges.
• Ignored change of address requests, or disputed charges which weren’t facilitated correctly didn’t contribute to negative credit reporting.
• Interest and late fees were computed in accordance with federal law.
• The creditor didn’t break their contract with their customers in any way.

Remember one of the FCBA’s main credit repair uses is to allow you to request broad amounts of information from the creditor on your account history. It is not asking for verification of the account or making a claim—it is asking for a boat load of information.

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More on How Your Credit Score is Calculated

A credit score provides a lender a quick and efficient way to gauge your creditworthiness It does this by supposedly measuring the likelihood you will pay your loans back and on time.

Your credit score is usually based on five overall factors: 1) credit utilization, 2) payment history, 3) the age of your accounts, 4) the types or mix of credit and 5) credit inquires.

Credit Utilization Rate

Credit usage is, according to many sources, approximately 30% of your credit score1.

Your credit utilization rate, also known as your balance-to-limit ratio compares your total balances to your total credit limits. Generally, the higher your credit utilization (the more you owe vs. the amount of credit available), the lower your credit score will be.

So two key ways to raise your credit score are to pay off your debt as quickly as possible, or shift your balances to a low interest rate card (provided you don’t already have too any cards).

Transferring a balance from one credit card to a new card may add an inquiry to your file, which could cause a temporary but usually small decrease.

However, you if you aren’t taking on new debt and you are increasing your available credit, this should decrease your total balance-to-limit ratio, which may increase your credit score.

Age of Your Credit Accounts

Your credit history accounts for 15% of your credit score1.

Generally, the longer your credit history the higher your score. That’s why it’s important to establish credit early and to make it a habit of paying ON TIME>.

Your credit history is calculated by taking the average the length of your credit accounts and the age of your oldest account.

Balance transfers between existing credit accounts typically won’t impact your score in terms of your credit history. However, when you apply for a new credit card your age of credit will decrease.

Also, if you close a credit account after transferring its balance that can impact your score because it will reduce the overall age of your credit accounts.

Credit Inquires and Why They Matter

New credit inquires make up 10% of your credit score1.

Each time you apply for a new credit card, a “hard inquiry” is placed on your credit report. Hard inquiries from credit card issuers remain on your credit report for 2 years1.

According to FICO, inquires generally only drop a credit score five points or less depending on the other information in your credit report. Too many applications for credit cards can harm your credit score and reduce your chances of approval because it often indicates you pose a higher lending risk.

It’s important to remember that any change in your credit use can affect your score, but over time this could be a positive change. Credit scores frequently move up and down frequently to reflect the information changes within your credit file. Checking your credit score is a good way to keep track of changes to your credit and monitor the impact of positive or negative events.

When considering a balance transfer it’s important to look at the big picture and read the fine print carefully. Understand all the costs involved and think about the cost of the balance transfer versus the long-term cost of carrying high interest debt.

Legal Disclaimer: CR Publishing provides quality and actionable do it yourself products and information to consumers who want to improve credit and/or to get rid of debt.The articles and information provided herein are for informational purposes only and are not intended as a substitute for professional advice.
FICO is a registered trademark of the Fair Isaac Corporation in the United States and other countries.

Are You Going To Let Fraud Follow You On Vacation?

Keep your card safe during your summer travels.

While the U.S. leads the rest of the world in credit card fraud it can happen anywhere. But that doesn’t mean we should make it easy or let it happen.

Whether you are going to be traveling internationally or domestically it is important to follow a couple safety measures to keep your card out of the hands of thieves and criminals.

One of the most important things to do pre travel is to notify your bank and your credit card issuer of your itinerary. This is especially important if you are going to be overseas and can’t easily reach your card company. Give them where you will be each day. Not only will this protect you it will also prevent their security features from shutting your card down unexpectedly.

You also need to pack smart. Especially when traveling to another country. Chances are you are not going to need every single card in your wallet when you are traveling. The risk is not worth having those cards with you. Generally, you should have your credit card that you have decided to use, maybe a bank card, cash, and maybe a backup credit card. Having extra cards that you are not going to use is just asking for trouble. If you lose your wallet or one of those cards falls out its more trouble that you have on a vacation, you are using to get away from it all… So stop making more trouble for yourself.

A little while ago we wrote about the U.S. switch to chip card. (Check Out That Blog Here) Luckily this is the norm with the rest of the world and has been for sometime now. It is important that while you are traveling in the states and even just with every day purchases that you always take advantage of that little chip in your card. A 2015 study showed that in 2015 the United States accounted for 47% of the world’s credit card fraud while only accounting for 24% of the world’s card volume. With EMV Chips this will go down. So if you have the option always use the EMV Chip Reader.

Protecting your credit shouldn’t be hard. And it certainly doesn’t take paying a company $50/ month for ID Theft Protection. Get the Starter’s Guide for Building and Protecting Your Credit.

If you are ready to unleash your full credit potential discover the Credit Repair Intelligence System.

If you haven’t already be sure to get your copy of our complimentary e-book.

And Be sure to follow us on facebook for the most up-to-date credit building and debt fighting news.

For sources and to read more on card fraud in the U.S. go to
Read more: http://www.nasdaq.com/article/credit-card-fraud-and-id-theft-statistics-cm520388

OCR: How Three Seemingly Harmless Letters May Hurt Your Credit

If you haven’t already heard the news, here’s the sum of it: the bureaus are now using “OCR” (Optical Character Recognition) technology to “read” disputes via computer and, if possible, automatically categorize them and even possibly flag them as frivolous.

For the credit bureaus, OCR is an attempt to automate more of their process.  By reducing the need for human labor and categorizing and cataloging disputes via computer software as they are received, the credit bureaus can accomplish several things:

  1. Reduce the likelihood of human error
  2. Reduce staffing costs
  3. Automatically “fingerprint” disputes and store in a database
  4. Detect if similar disputes have been received before
  5. If the dispute can be automatically categorized (with a numerical e-Oscar code), the dispute can be forwarded to the creditor via e-Oscar with no human intervention whatsoever.  At the very least, the computer can do all the work and a human can just review the results and click a button to approve it.

Where the problem really gets kicked into high gear is starting at item #3.

Here’s the problem:

  • 100% of credit repair companies use form letters of some kind.
  • 99% of credit repair books tell you to do the same
  • If the bureaus can tell you are using a letter that they’ve seen before (such as a template from a credit repair product), they may flag your dispute as frivolous “right out of the box”.

So let’s say you buy some “Dummy Credit Repair” book and do what it says.  You use their templates (the ones that match your problems) to send to the bureaus.  Maybe you have been a victim of identity theft and have several accounts that are genuinely “NOT YOURS”.  So you pick the appropriate template, and send them away.

Then the bureaus receive your letters and their computers say “Hey, we’ve already gotten hundreds of letters that look just like this… this is obviously frivolous.”  And before you can say “OCR”, your dispute is rejected (or in many cases seemingly ignored).

Here’s the thing you really need to know about OCR: The only way it will hurt you is if you aren’t prepared for it.

If you are aware of it, and will take steps to protect yourself, the letters O C and R will remain mostly harmless for you.

What steps can you take? We’re still working on what we believe will be the best answer for this, but for now, the following will have to suffice:

- Don’t use a credit repair company.
- Hand write your disputes, or use strange fonts with unusual colors. This makes it difficult for the “OCR” scanner to read your dispute, requiring (hopefully) an actual human being to take a look at it.
- Make sure your disputes are HUMAN READABLE… use standard letter formats that make sense.  The delicate balance is to thwart the computer without totally screwing up your chances when your dispute reaches a live person.

We are working on methods to help consumers better deal with the potentially negative effects of those three innocent letters. I’ll be sure to keep you posted as we further develop those methods.