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Tuesday, December 29, 2020

You will need to write a letter to your creditor and advise them that you are disputing a charge on your account. You will need to state why you are disputing the charge, and what you are trying to get from them. Be sure to provide a copy of your credit report, and let them know that you are a consumer, not a collector, making this dispute. Ask that the charge be verified and removed from your account. Let them know that you need your credit report to be correct because the charge will appear again for another creditor to take on it. Let them know that the charge is not yours, and ask them for their help in getting it removed from your credit report. They can copy and mail instructions to have the certain information corrected on your credit report.

Let them know that you will contact them in writing, and make certain that you send the letter Certified Mail, Return Receipt Requested. This means that you have a written paper trail that can prove that you contacted the creditor about the disputed charge, and they received the dispute. The credit reporting agencies are now required by law to remove the disputed item from your report. To ensure that it will go in quickly, ask them to please send the letter to the original creditor, and make certain that you have your paper trail.

If you ask that an account be corrected, the creditor also needs to investigate any disputed accounts and report back to the bureau. Some creditors report the account as closed as they obtained from the debtor, so have the creditor report back to the bureau that the account was in dispute, and the creditor found it was in dispute. Then they will have to report that information back to the bureaus. As long as your account is in dispute, then you can see a credit card be listed as being in dispute. However, if your account is not in dispute, then the creditor may not report the account as not being in dispute. It is up to you to decide which you wish. Emphasize the fact that the creditor does not have to report anything and then if there is any disputed information showing that you as the debtor in question did not pay one bill, the account should be deleted from your report.

It is also important to note, that US law requires credit reports by law to include your most recent information. The credit reporting agencies are required to take this into consideration when release their credit reports. If you have a closed account on your report and your derogatory account stay on your report for 10 years. However, the information about the closed account will stick around for 7 years. If you do not have a bill account in dispute, if it is closed 7 years or older, then it should show as being "closed". However information about an open account can sometimes show up on your credit report even though it is not in dispute for as long as it is reported for more than 7 years.

When it comes to cell phones, land lines, emails and subscriptions, do not be so quick to pull your credit report. It is very easy to get stuck with fees, and misunderstandings. On an account which is in collection, it is important that they notify the credit bureaus about the account.

There are two basic approaches for credit repair. One is the do-it-yourself method and the other is hiring an expert. You might think you know everything you need to know about credit repair and where to start and where to stop. But at the end of the day, nothing will have been done for you unless you have the guts to go for it. For the do-it-yourself technique, the usual information you might need (apart from your credit report, which is the key to start credit repair) will be: your credit card account history, the outstanding balance over the past six months, the types of accounts involved, and the number of inquiries from creditors or credit providers in the past two years. In order to have the most effective results, you need to get all this information from multiple credit providers and credit card issuers, as it will help you to streamline your efforts. The second approach to credit repair involves working with a qualified professional. That means looking for a firm or lawyer that specializes in fixing credit problems. In general, this kind of credit repair consists of the following steps:  

  1. At the very least, knowing where you stand financially
  2. Creating a budget
  3. Learning the strategies and tactics to erase your debts

You might have become aware that your credit is bad and you have a lot of debt to settle before you can get on with your credit repair. So, how can you go about with do-it-yourself credit repair? Here are the basics of a do-it-yourself credit repair - creating you own budget, creating a debt management plan, learning strategies to erase your debts, and knowing how you can stop creating more debts. The most important strategy is to first of all, stop increasing your debts. If you are the type of person that can't resist buying stuff even though you know you don't need it, this approach isn't for you because you will be babbling to yourself and doing damage to your credit score in the long run. The other strategy is not to pay any and every bill, including medical bills, which is not a particularly wise idea if you have no money left for some things after paying for your necessities. The strategy of credit repair is not greatly affected by the actual length of time the bills were overdue or the number of times you were late. However, the most important factor is the extent that you were able to damage your credit score. That's because the absolute fastest way to do a lot of damage to your credit score is to pay medical bills or stop paying your other bills. I'm sure everyone knows people who have been trying for months to repair their credit score whose major credit card companies have refused to reduce the minimum balance on their bills.

Monday, December 28, 2020

We all know that good credit is important, but most people struggle from time to time with too much debt, loss of income, or other financial emergencies. Collection agencies start entering the picture when payments are late or incomplete. People often file bankruptcy hoping for a new start, only to find their future credit is negatively affected for seven or more years. Understanding how to repair your credit is a far better alternative emotionally and financially.

Credit reports and scores determine such things as: 

  • What kind of loans you can qualify for
  • What interest rates you can afford
  • Whether or not you will be hired for a job, promoted, or get a loan, a credit card, an apartment, or in some cases a home
By having a better credit score you can save money by getting lower interest loans. Lower interest loans can save you hundreds of dollars each year. Think about this. If you could save $400 each month for 30 years, what would you do with that money? Pay your bills? Get out of debt? Repair your home? Because our credit score is our lifeblood, by repairing our credit we can save money and protect it. We need a good credit score for everything from getting a loan to mortgage to buying a house, car, and education. There are simple steps to take to make sure our credit report is accurate.

Although having good credit is important to our financial future, today more than ever it is more important than ever. With credit card companies relaxing their requirements and making it easier and cheaper to get credit, it is now more important than ever to have a good credit score. Even people with the best credit are paying, on average, 20% more on a mortgage with less than perfect credit. If your credit score is low and you need to get a mortgage, they will look at your credit score. If you have a blemish of any kind, even a few late payments, your score will be pulled. If your credit score is low, you are less likely to get access to credit, lower credit card limits, and even affect your job and even work performance.

If you have a low credit score you need to repair it. The first thing to do is order your credit report. By law you are entitled to one free credit report every twelve months. You can also order your credit report through a third party if you so choose. Look for items on your report that do not belong to you. If you have been reported for something and you know it is not yours, dispute it by writing a letter explaining what is on your report. By law the burden of proof is on the credit reporting agency and they need to prove the item is valid. They have thirty days from the day they receive your dispute to prove it's validity. If they fail to prove it's validity, or do not remove it from your report, by law you can be protected. The next step is making a list of all the problems on your report. Then, together with a good friend of mine who is knowledgeable in this process (he actually uses this information for his real estate transactions) we take some mock letters and approach the credit card companies and banks to dispute the items we want to dispute. Once we have the information we need to challenge the bad credit, we challenge the item with a fresh letter. It's really that simple. Now we have someone else to challenge. After your credit report gets pulled another credit report will come out with the information we found on the first report. This time we have our company challenge it with this new information and hopefully get it removed or corrected. At this point if we are really lucky we have made some progress. If we get the information deleted, our credit score goes up. If the information is corrected or corrected we score some more. The amount of improvement depends on how bad the past problems were vs the new report. If we had messed up once, that might only get us a few points, but if we get the information corrected and re-reported, we possibly can up our score easily 20-30 points.

Removing incorrect information from your credit reports, whether correcting your name, correcting your address, or deleting inaccurate information will benefit you greatly. It is even possible to dispute incorrect information on your credit report and have that information removed.

FICO scores are calculated based on information on your credit report. As loners, those with longer credit histories are substantially more likely to remain stable in their payment of bills. The FICO score is a cumulative score based on the payment history or credit data of a person, ranging from a low score of 300 to a high score of 850. The majority of prospective lenders use FICO scores to calculate the risk of lending to potential borrowers. Although the average American has a credit score of around 675, the score of 680 or higher is considered good, while a score of 535 means the applicant is very likely to default on the loan. The risk of lending to applicants with lower scores is substantially less.

Knowing how to read your credit report, once every 12 months, will give you valuable insight into what is being reported by your lenders. If you find inaccurate information about your credit report, contact the credit reporting agency immediately, discussing your findings with them directly and requesting that they correct the information in the credit report. To add to the best of their efforts, ask them to send a written notice to the credit reporting agency, instructing them to delete the incorrect information. Can you convince them that you don't owe the money, or that the debt is not yours? If the collection company or creditor can not provide legal proof to back up their claim, they must remove the account. The easiest way to find out if you actually owe the debt, is to ask the creditor to send you proof. If they cannot provide this information, they must investigate your claim and remove the account from your file. If the creditor can not provide that proof, your next step is to write them a letter and request that they correct the inaccurate information and provide you with their findings. Send copies of the proof that you requested them to provide you with as well. Send this letter through certified mail with a return receipt request. Keep a copy of the letter for your records, and send copies of your certified mail receipt to the FTC. They are required to investigate the situation and reply within 90 days. If the creditor does not reply within 90 days, you must write another letter. If they do not reply within 30 days, the FTC can take action against the creditor. Once the investigation is complete, they are required to provide you with the results, in writing. This written report must tell you whether or not the creditor deleted information that should be on your credit report, or whether the creditor has verified the information, and if they did indeed correct the inaccurate information. The written report must also tell you if there are any changes you need to make to your report. These changes may include spouse, or references that were not included in the original report. If your report changes, the creditor is also required to notify you of these changes.

There is nothing wrong, or illegal about this, as you have the right to know how your credit is reported and what information is on your report. If you find errors that are inaccurate, you can write to the credit reporting agency with the error, asking them to correct it and send you a copy of the corrected report. Since credit reports change often and some information, such as your account number, may not be the same twice, you may need to contact all three credit reporting agencies.

This is not going to be a very quick process; you may have to write or fill out forms and mail them by regular mail or email to the credit reporting agency. Your credit reports will contain the same information listed, relative to your FICO score, as your credit reports do for credit you have already requested. However, if there is a difference you have to dispute any errors, regardless of who supplied that information.

Be careful applying for new business credit accounts. Too many inquiries can have a negative effect on your credit report, so if you are looking for credit lines, don’t be tempted by companies that offer account guarantees. They are exaggerating on both of those counts. A flat-out no credit check type of arrangement is the worst type of credit arrangement you can run into since it allows for lenders to check on all manner of financial information on your company and your company's officers and directors.

Interest rates can vary depending on the type of account, credit history, credit score, and the amount of collateral asset used. The value of collateral will determine the interest rate on an account, with the amount of collateral a primary determining factor. Collateral can include things like inventory, equipment, vehicles, inventory-backed accounts receivable, and personal guarantees. If you are having trouble securing new business credit, or you just need to improve the effectiveness of your existing business credit, consider the possibility of using your company's cash on collateral as a means of simple bank financing.

A company cannot conduct any business without a system of recording business transactions. As the current economy has shown us, paper can be of great value, but it can be a bad thing too, especially when it is fraudulent. Credibility is one of the most valuable assets a company can have, but a lack of it can kill a company's credit. Your company’s credit rating is directly impacted by the integrity of your records. All of the data you enter into your business credit profile will be examined for discrepancies. As an example, if you miss an application for credit and your company’s records show that it was a miss, you could be denied a loan. Too many contacts you have does not mean you are bad at your business, and it does not mean that an account is open or not. It means that somewhere in the system there may be a problem that needs to be addressed. If the credit process was transparent and faceless, this would not be the case. It is very important to state that for every action that impacts your credit report negatively, there is an equal number of positives. The world of financing is very competitive and shifting, so make sure you set up systems and employees that can support you in this journey. Create manageable, well-tested systems, and hire qualified people to implement them. Don’t try to be all things to all people. Remember, entrepreneurs should have an internal culture that supports the success of their business without cutting into personal time or finances. Make sure you have financial guidance and support without leaving the home front. Interestingly, having the support of family and close friends looks much better in the long run than having a corporate business phone bank calling at the drop of a hat.

Get your corporate credit in order, build solid systems, and find competent people to implement them. It is possible to secure corporate credit and then implement that credit through an efficient process that is well supported and monitored internally. Consider investing in the systems and people that will make your business credit report a success.

Tuesday, December 22, 2020


Usually, a business credit report costs around $20. It includes everything that the business that is being offered credit. It indicates the creditworthiness of the business, and it provides lenders with the sales records in addition to and as an addition to the credit reports that are on file for them, although they sometimes show up as references on other credit reports.

A business's credit report is a history. It is basically the record of how a company has had a good or bad credit experience with other credit suppliers and fulfilled their rental, commercial, or manufacturing obligations. Businesses that have no records provide a hindrance to completion of new business relationships. It is another word for a trade credit report. It is compiled every time a company extends credit as part of completing a transaction. Sometimes these transactions are trade and purchase. That is, if a company sells something to another company that they buy partly from them. However, these purchases are usually very small, and it is contractors that make them. People to whom equipment and materials are provided are the suppliers of these dealings. After the initial transactions are done, the trade credit is recorded for that company by a trade credit bureau. Advance rent reports or rent changes are the most common form of trade credit. Under this arrangement, an enterprise will extend credit to an enterprise or host a supplier to whom the supplier provides part of the goods. For example, a company may sell to a large subcontractor or vendor that provides the goods to them in stages. The subcontractor provides up to eighty percent of the goods. The company provides the rest. Under the terms of the arrangement, the client company reports the trade references for each of its subcontractors each quarter. In the example above, the company would owe its subcontractor credit for each quarter the subcontractor provides them ten percent of whatever they receive from the client company. At the end of the quarter, each subcontractor would receive their ten percent in payments from the company. The trade credit report for each subcontractor would show how much they owe the client company, and who they owe it to, and the method by which the payments are made. The trade credit report also provides a record of how payments are made on the outstanding credit that is extended to a company. After a transaction is completed, every credit reference in the trade credit report indicates whether or not the transaction was successfully, or is still in process. If a company extends credit to another company, and the other company fails to make payments on the credit, it will appear in the trade credit report as well.

All of the trade credit reports in a company show the credit score, with a implying scale that ranges from 81 to 100, with an overall score of 120 being the highest possible score. An overall rating of six hundred and twenty-eight will be an excellent score. A company with an overall rate of four hundred and thirty is considered satisfactory. These are the establish standards that companies use. The exact score by each credit bureau is different because each uses different algorithms. If a trade credit report indicates that a company has a credit score of ninety, that firms will usually get an incredible amount of credit, but that the trade credit bureaus low down the interest rates and zero out the balances with processing fees. Even if a company has a credit score of just five, and thus a major advantage, they can still receive tons of credit, but the interest rates would be sky-high.

Monday, December 21, 2020

Although many conventional credit experts say you should maximize your credit limits, doing that could hurt rather than improve your credit history. Credit experts recommend that you should keep your balance below 40% of the credit limit on your cards. That means if you have a $15,000 credit limit, you should keep your balance below $2,000. A possible exception could be if the card you are transferring a balance from has a higher interest rate. Most cards today have some sort of balance transfer option. If you prefer to keep a card and its balance unpaid, there are several different ways you could do so. However, if you enjoy transferring balances, then you should immediately pay down your credit card balance before you close the account.  If you are worried about closing your account early, then it’s a good idea to only have one card with a balance. This way you won’t be tempted to spend several years paying the balance. In some cases, you may be tempted to open new credit card accounts once you transfer a balance from a higher interest rate card. If you are looking to open credit card accounts and don’t have to close your old cards, then you could find yourself in a position where you have too much credit available and close some of the accounts to accommodate the new accounts. If you close the accounts, you lose all of the built up credit.

In an ideal situation, after the transfer is completed, you should continue to pay your bills every month on time. If you can pay them before the due date, do so. Once you pay on time for six months or more, then you can begin to take out credit and your utilization rate must be lower.  That means your utilization must be lower than 40% of your available credit. Another possible scenario may occur after you transfer your balance. A new card issuer may put a freeze on your account that prevents you from applying for any new credit. While this is rare, it does show up when you have too many accounts linked to your name. You should be aware that one inquiry will keep your credit report from being looked at again, even if you don’t apply for new credit. However, opening up new credit cards often raises your credit utilization, so trying to open a new card may be seen as a wasted effort.

This is probably not as serious as it seems, but as with anything financial you must be careful. If you make some small charges every now and again, then you should be able to pay for them before the item goes to collection. Receiving a collection letter does hurt your credit score. Processing this in a timely fashion may make a better workout for you.

Credit cards can be a good thing if they are used properly. However, if you fill out the application and are not responsible, then you will receive the credit card™s bad habits and you will pay for it with high interest and fees.

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