Personal Financial Resources - Credit Repair and Debt Consolidation

by Jonathan P. Mann 

Pulling your credit report at http://www.annualcreditreport.com is a good start.

You can pull all three agencies version for free. You’ll need to answer some security questions to verify your identity. Examples are: old addresses (they will provide the street name, you will need the address number and zip code), Old employers (they’ll have dates you worked and you’ll need to fill it the name. Sometimes it can be hard because they’ll abbreviate the name or there is a limited character space to enter in the name).

Also they will let you prove your identity by entering account numbers of different debts. They pick the debts so try and have all of your bills/statements avail in case.

You’ll need to create a login and password for some of the agencies. **HOLD ONTO that information** Lots of people fill it out and then lose it. You’ll need that info every time you pull these free reports every year, so keep it in a place you won’t misplace/lose it.

Consider paying for the add-on credit score option. You are getting a free credit report that does not affect you in a negative manner. It’s worth thinking about if you can afford it.

Disputes:

http://www.ftc.gov/bcp/conline/pubs/credit/crdtdis.htm

That is a direct link to the disputes section for the FTC. It also has a sample letter you can use for the dispute process. Once you go over your credit report and find any inaccuracies etc send your dispute letters out the companies in question and the credit reporting agencies.

Below are the addresses for the credit reporting agencies:

CREDIT REPORTING AGENCIES

EQUIFAX             
P.O. BOX 740241
ATLANTA, GA 30374 

EXPERIAN
P.O. BOX 2002
ALLEN, TX 75013   

TRANSUNION
P.O. BOX 1000
CHESTER, PA 19022 

by Jonathan P. Mann

(Continued from yesterday)

8) Ask (and state that you can’t afford it now but you want to
ask) if they can offer you a settlement and how much is the total
payoff?

If they say they specifically cannot do that, see if they’ll
check for you. Ask how long is the offer good for? Ask how long
it can be paid over?

9) Explain to the collector that you are experiencing a financial
hardship right now, and you’re struggling to make payments.
Explain to the collector that they will be paid, but that you’re
going through tough times, and you hope to get through it.

Thank them for the information, and explain to them that you need
to check your financials to see what you can afford. Explain once
you are certain of what you can afford, that you will be making a
payment and by the due date. Thank them for their time and end
the call.

Now if you have someone that was rude to you on the phone, you
can call back and speak with a manager, and say exactly who it
was, what they did etc.

Also, if you get someone nice, you now know how to get in touch
with them, and continue with that rapport.

TIP: Making payments - Mail your payments to the creditor, and
make sure you leave enough time to get to the creditor before the
due date at least one day if you can. Try to allow seven to ten
days for the mail to reach the company.

TIP: Receiving Mail - Get a manila folder, and keep it marked
with a specific creditor. Make sure it stays in a place where you
won’t lose it. Whenever you receive mail from this creditor: Open
it, read it, and then put it in the folder. Look out for mail
that has the words: “Legal” “Legal Action” “Charge off” “Final
Notice” “Lawsuit” These are really important letters and you need
to make sure you hold onto them.

Here’s a easy checklist for you to keep by the phone. Keep the
rest of the article for a refresher if you forget something.

Checklist:

Date

Time

Creditor calling/Representatives Name

Contact info

Hours working

Best time to contact

How many days delinquent

When is due

Date/Billing Cycle

Is the account Re-age Eligible? What is the minimum payment?

How much to drop 60 days, 90 days, 120 days etc (based on how
many days delinquency. Everything is in 30 days increments)

Can you do a settlement? How much? How long is the offer good
until?

Explain you are in a financial hardship, etc. that you will make
payments and by the due date.

Thank them for their time.

End call

by Jonathan P. Mann

The tips shared in this article are applicable whether you’re
receiving calls from your creditor or calling your creditor for
information yourself. Jonathan P. Mann, the author of this
article, is a professional debt consolidation counselor.

TIP: Leave a bunch of paper and some pens by the phone so you
don’t have to look around for it.

General: Be calm, relax, and be nice! Don’t let them make you
angry. You’re now on the phone for a reason; to get the
information you need and get off the phone. Make sure you control
the conversation. Ask the necessary questions and get off the
phone. If this person will not give you the answers you’re after,
hang up and call back to get someone else on the phone.

Repeat the process until you have the desired result. When you
receive a call: Get a piece of paper and a pen, and write down
the date and the time and the creditor that is calling or who
you’re calling.

1) Get the full name of who you’re talking to. If they will not
give it to you, explain you won’t speak to them. If they give a
first name, that’s fine to start. Get their extension. If the
claim they don’t have an extension, ask how you get in touch with
them if you need to call them back. If they say “just ask for me”
ask what their last name is (if they didn’t give it initially)
and say something like “I’m sure you work in a big building with
a lot of people, and if I need to get back in touch with you, I
might get someone who doesn’t know you. I’d really like to talk
with just one person, and you sound nice.”

Once you have a name, and an extension (if they have them, not
all collectors do), ask what time is best to get in touch with
them if you need to talk again (most of them will be fine with
this, but you might get some resistance. It’s not a big deal, but
it doesn’t hurt).

2) “How many days delinquent is my account?” Write it down.

3) Ask what your due date/billing cycle is and ask if it ever
changes. 4) Ask if you have any grace period of time on that (if
the payment is mailed in and posts a day late, will they still
count it for last billing cycle? Write this stuff down.

5) Ask if your account is re-age eligible.

A “re-age” is a program most credit card companies offer where
you are able to make three consecutive minimum payments, and have
your delinquency cleared out. It can be done once per year or a
total of three in a five year period. You may have already used
it and not known. It happens.
6) Ask what your minimum payment is. If they say the whole
balance, tell them you don’t have that much and you need to know
what the minimum is that will drop your account thirty days in
delinquency. It should be about $130.00 right now, but let’s just
call it $150.00. It might stay the same for awhile or go slightly
up. Don’t be surprised. Also once you find out how delinquent
your account is, don’t stop with how much the minimum is.

A minimum payment is somewhere between two and three percent of
your balance. This may have changed if the credit card company
has raised your minimums due to the news laws that have passed.
In that case it could be four percent now.

7) If you’re 120 days delinquent right now, ask how much is it to
drop your account 60 days, 90, 120 days in delinquency. Write the
answers down clearly. Make sure you write the corresponding costs
with the drop in delinquency. Double check the numbers after you
write them down.

(Continued)

By Winn Griffin

Misconceptions about credit scores and credit repair abound. Some consumers who use credit cards don’t believe they have a credit score or that their credit scores don’t matter so they would never think about credit repair. However, without a good credit score or without credit repair when you score is blown to bits, a consumer may hurt themselves in day-to-day living.

If you have a bank account and bills to pay then you have a credit score and you may be a candidate for credit repair. Credit scores were developed by FICO (FICO is a registered trademark of Fair Isaac Corporation) as a measure of credit risk and are the most used credit scores in the world. A FICO credit score is a three-digit number that gives lenders a clue about how likely you are to repay your bills. If your FICO credit score is bad. You may be a candidate for credit repair.

Your credit score is accessible to anyone with a legitimate business need. Here are two examples. An apartment manager my use your score to decide if you can be trusted to pay your rent on time. Employers may use your credit score to decide if you can be trusted in a high-responsibility job that requires you to handle money. Not knowing about credit scores leaves one vulnerable and you possible need for credit repair.

As with most potential problems there is often a lot of misinformation circulated about the solution to the problem. This is surely true about credit scores and credit repair. When trying to gain accurate information, consumers often come away with the idea that one can boost their credit score by paying more money to a company or hiring a “credit repair” expert.

Here are some areas you need to consider doing. You may need to define a credit score, a credit report, and other key financial terms to help in credit repair. You may need to develop a personalized credit repair plan that addresses your unique financial situation. You may need to find the resources and people who can help you repair your credit score. You may need to repair your credit effectively using the very techniques used by credit repair experts.

Remember, your credit repair does not happen in a vacuum. You may need some outside help.

Dr. Winn Griffin writes several blogs. One on Credit Repair. You can review a list of them at Library of Blogress and here is a credit repair resource that might be helpful for you.

Article Source: http://EzineArticles.com/?expert=Winn_Griffin

When just starting out, many young people face that age old question; “How to get credit when you don’t have credit already” or when you’re in need of credit repair. While this can indeed be a challenge, there are some things you can do that will make this process a little more workable.

Most creditors want to look at your past credit history to see how reliably you have handled credit in the past but there are some that rely on your salary, your job and other financial information that you put on your credit application.

If you do not have any credit history or you are in need of credit repair, here are five things that you can do to start building to your first credit card.

1)      Open up a checking account and a savings account, preferably at a credit union if you are eligible to join one.

2)      You might be able to receive a small loan from the bank or credit union where you have your checking and savings account. Try this about six months after you’ve opened your checking and savings accounts. Hint: Credit unions are often a bit more lenient with loans to their members than traditional banks are. That’s why it’s preferable to open your checking and savings accounts with them.

3)      Apply for a department store credit card. Department stores are anxious to have your business and so are often more lenient in granting credit cards and they can be an excellent way to start building your credit history. Make sure to ask the credit department whether or not they report to the credit bureaus. If they do not, they will no be much good at achieving a better credit history.

4)      If you were turned down for the loan in step #2, ask if they could give you a loan which is secured by funds that you deposit with them as collateral. The bank can then issue a credit card with a limit no higher than the funds you deposit.

5)      If all else fails, try and find a relative or friend with a good, established credit history who will co-sign for you on a credit card. You would be granted credit based on the strength of your co-signer’s credit history. Once you have used the card and paid the bill on time for about six months, then try and apply for another card at another lending institution in your name alone.

Remember that paying each and every bill on time contributes to your good credit history so make it a priority to do so.

By Drikus Botha

If you start missing payments on a credit card or loan, or — worse — your creditor sends one of your outstanding debts to a collection agent, a negative mark will go on your credit rating, which will often prevent you from getting credit in the future.

If you find yourself in this situation, it is imperative that you take steps to repair your credit rating as soon as possible.

Although it seems like a daunting task, if you do nothing your credit rating will remain the same for up to seven years, causing you all sorts of hassles, and preventing you from obtaining any type of loan.

An important step in credit repair is the acquisition of a secured credit card. Generally, if you have bad credit, you will be turned down for any credit card application.

This puts you in a bind, because without a credit card you have no way of improving your situation by proving to creditors that you can pay your bills on time and responsibly.

To engage in credit repair, you should look into what is called a “secured credit card.” This is a credit card marketed specifically to people with bad credit.

Generally, these cards work by requiring an initial deposit that is equal to your credit limit. In other words, if you make an initial deposit of $500, you will have a credit limit of $500.

The issuer will then reserve the right to use your deposit against any outstanding balance on the card if payments are not met after a certain amount of time.

As you can see, this type of card carries no risk for the issuer (because they can always use your deposit against the balance - you’ll never end up “owing” them anything), and therefore can be freely issued to people with bad credit.

Unfortunately, most of these cards will have yearly annual fees that regular credit cards are often free of.

Once you have a secured credit card, you can engage in credit repair by using it sparingly but regularly, and making sure you make all payments on time.

By doing this you will slowly repair your credit. What you will be doing is demonstrating to creditors that you are responsible and can be trusted with credit.

If you don’t take steps towards credit repair by doing things like getting a secured credit card, your credit rating will effectively remain in a static state for years.

Credit reporting agencies will keep any marks on your credit report for 7 years, so unless you are willing to wait that along, it is imperative that you take the necessary credit repair steps.

By obtaining a secured credit card and using it responsibly, you will be able to reduce the 7 year wait period before being offered credit again.

Drikus Botha is wellknown for his articles and e-courses. You can subscribe to one of his free credit repair e-courses right here!

Article Source: http://EzineArticles.com/?expert=Drikus_Botha