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How Long Do Negative Items Stay on Your Credit Report? The items on your credit report are called tradelines. They can either be positive or negative. Positive tradelines help your credit score and negative tradelines lower your credit score. Most negative items remain on your credit report for 7 years from the date of first delinquency, but there are exceptions:
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Mistakes Do Happen! This is an alarming report! Here are some key statistics:
Congress eventually followed the states’ lead, adopting some credit reporting reforms in 1996 and criminalizing identity theft in 1998. In December 2003, Congress passed the Fair and Accurate Credit Transactions Act (FACT Act). With the FACT Act, the financial industry won its primary goal: permanent preemption of stronger state credit and privacy laws. The FACT Act also included several modest consumer reforms, borrowing from state laws already enacted, including the right to a free annual credit report on request. Although these consumer reforms came at the unacceptable price of a state’s right to protect its consumers, the law includes a number of provisions designed to enhance the accuracy of credit reports. What should policymakers do? Despite recent federal action, we need to do more to protect consumers’ financial privacy and ensure the accuracy of credit reports. Policymakers should:
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Credit Repair and Auto Insurance
Credit Repair and Auto Insurance Did you know how much you pay for auto insurance is based on your credit? Most people are shocked when they hear that auto insurers use credit scores in the course of deciding whether to cover drivers and what premium they should be charged. If you are like most people, it could be difficult to see the connection. Why should you have to pay a higher rate for your car insurance because you had unpaid bills or some other financial problems. Some customers who had never had an accident or violation were faced with sharply raised premiums when their renewal notices arrived. In fact, auto insurers are passionate in their belief that credit scores are one of the best predictors of future claims. According to the American Insurance Association, here are some of the kinds of data from credit reports that are of most interest to insurers
Solution? Know what is in your credit report. It is a good idea to run your credit regularly and monitor for any inaccuracies. |
Vehicle Repossessions
Once a vehicle is repossessed for non-payment, the lien holder will sell the vehicle to attempt to pay off the balance that is owed. Prior to the sale of the vehicle, the lien holder is required under the law to send notices to the consumer. The notices to the consumer give certain rights which include the redemption of the vehicle. Once the lien holder sends the required notices and waits a specified time period, they are then permitted to sell the vehicle. Vehicles are typically sold at auction or through wholesale channels. Once the vehicle is sold, the lien holder will calculate if they have a loss. The loss is calculated by deducting the amount the vehicle was sold for from the principal balance that the consumer owed. The loss is called a deficiency balance. Once the deficiency balance is calculated, the lien holder will attempt to collect that amount from the consumer. The lien holder will often sell the deficiency balance debt to a collection agency for them to collect. The loophole in the laws for this tactic is simple. If the lien holder does not send the proper notices to the consumer that notifies them of their right to redeem, the deficiency balance is typically considered uncollectable! The following letter sequences utilize this strategy to get the repossession item permanently deleted from the consumer’s credit report. This letter sequence should only be used after 2 years have passed since the vehicle has been sold. This should not be used if there was a judgment filed from the lien holder. Visit www.CarFax.com to obtain the V.I.N. (Vehicle Identification Number), if you do not have it on file. Send letters via traceable mail with a return receipt. |
What is REAL CREDIT REPAIR?
The Right Way
When most people think of credit repair they think of credit bureau disputes. Historically credit bureau disputes have been the heart of the credit repair process. It turns out that it is really just a first step. Credit bureau disputes are the essential to every successful credit repair program. And almost without exception it is necessary to start the process with these disputes. But if your efforts are confined only to disputing your issues with the credit bureaus you are virtually guaranteed to be disappointed. Time and time again, I hear first hand from clients, saying that they are fixing it themselves. Hitting the Credit Repair Wall If you send a dispute letter to the credit bureaus you will receive a response back within thirty days or so. You might be excited to see that some of the problem items have been removed. You are also likely to see that some of the items that you have questioned have been verified. This can be frustrating. What is the next step? You might think that a second dispute is in order, and you may be right. Or you may be wrong. Read carefully. Has the credit bureau asked you to address all future inquiries to the original creditor? If so you may discover that additional credit bureau disputes produce no results. Moving On Many consumers in search of professional credit repair services will find an ample supply of credit repair companies offering a basic low cost program that consists entirely of credit bureau disputes. What happens to this consumer when the credit bureaus ask you to direct future inquiries to the original creditor? There are two possibilities. The End of the Road If you sign up for a credit repair program that only offers credit bureau disputes there is almost zero likelihood that you will end up as a satisfied customer. After the first round of disputes you may get few additional results. Or, if the company that you have chosen does offer additional levels of service you will probably find it necessary to upgrade to a more expensive version of the program in order to get the results that you desire. The truth is that the dispute only credit bureau version of the program should never have been offered….EVER! |
An Integrity Driven Approach
Remember that I started by saying that credit bureau disputes are the essential backbone of every successful credit repair program. It is so. In fact, it’s absolutely logical to start your dispute process with the credit bureaus. But to stop there would be like putting you’re a hat on and then imagining that you are fully dressed. A truly effective credit repair program will seamlessly move from credit bureau disputes to creditors as a natural part of the process. Collection agencies can be challenged as needed in the same way. Educated Consumer Credit Repair can and will produce fantastic results if done in a competent and in a result driven manner. Would you go to dinner at a restaurant that only cooks the food half way? Would you hire an auto mechanic that takes your engine apart but doesn’t quite put it back together again? Of course not! Make sure that your credit repair company will complete the job that you hired them for. An Easy Process It is our opinion that a credit repair program should be inclusive of every step that is necessary to produce the final desired result. And the credit repair professional should be armed with every tool needed to do the job. We believe that the process should be offered as a unified whole. Our customers hire us for the most important reasons in the world. Their goals are inseparable from the quality of their financial life. We believe that credit should be taken seriously. So serious, we dispute every item from day one. Ahead Of The Dispute A comprehensive dispute process encompassing the credit bureaus, creditors, and even collection agencies is essential for success. But it is also equally imperative that these activities occur in the context of a complete understanding of both the credit scoring model and the way creditors view credit in making a decision. I cannot emphasize this enough! A good credit repair company always has their customer’s goals in mind. You do not want to complete a credit repair program and discover that your scores have suffered or that you don’t meet lenders criteria for credit content. When selecting a credit repair company make sure that they have the universal perspective that will produce the real results that you want. It turns out that the details can make all of the difference in the world. Call Today to get signed up. Start reaping the benefits of Great Credit. |