Has anyone ever used a credit repair service,do they work?
Posted in Credit on 11/27/2010 10:23 am by
Archive for November, 2010
Has anyone ever work with a credit repair agency?
Posted in Credit on 11/26/2010 09:07 am by
betrayed asked:
Is it true that credit repair agencies delete bad items off of your credit report, if you have worked with one, what was the outcome and give me that agency name & #
Veronica
Is it true that credit repair agencies delete bad items off of your credit report, if you have worked with one, what was the outcome and give me that agency name & #
Veronica
Credit Repair – The Question of Inquiries
Posted in Finance on 11/24/2010 01:22 am by
Jim Kemish asked:
Setting Your Priorities
Inquiries may hurt your credit score, or they may do nothing. If you are in a credit repair program there are probably bigger issues on your credit report than inquiries. Since it is best to focus on cleaning up the items that have the greatest impact, your inquiries may be left until everything else is resolved. Even then, you may decide to ignore the inquiries, but before we dismiss them altogether let’s explore a bit further.
Two Types of Inquiries
There are two types of inquiries. “Hard” inquiries will affect your credit score, and occur when you apply for new credit. “Soft” inquiries will not affect your credit score, and are typically triggered by three different events; 1) when you request your own credit report, 2) when potential lenders check your credit prior to offering you pre-approved credit, and 3) when a current lender conducts a periodic review of an existing account.
The Logic of Inquiries
There is logic behind the impact inquiries have on your FICO score. If you are applying for new credit you may be in the process of incurring new debt and placing an additional strain on your budget. Hence you are placed in a higher risk class, designated by a lower credit score.
Rate Shopping
The FICO scoring model was recently modified to accommodate consumers that shop for mortgage or automobile financing. You may now have as many inquiries as you wish in a 45 day period while shopping for a mortgage or automobile loan, and they will only have the impact of a single inquiry on your credit score. To further accommodate this type of shopping, these inquiries will not appear at all for 30 days. Many credit repair customers are relieved to find out that the many inquiries which appeared after they purchased a new car had little or no impact.
Inquiries and your FICO Score
Soft inquiries, as mentioned, have no impact on your credit score. Hard inquiries typically will lower your score between 1 point and 5 points. Credit repair efforts revolve around your credit scores, and it is handy to know that the FICO scoring model considers everything on your report simultaneously. The affect of an inquiry, like other bits of information on your report, can vary depending on everything else in your file. The more credit you have, and the more established it is, the less of an impact an inquiry will have.
Time and Your Credit
Time plays an important role on the impact of an inquiry. As the months slip by the affect of an inquiry diminishes quickly. After six months the affect is negligible. If you are in a credit repair program and are deciding if you want to dispute inquiries, you want to keep this in mind. And if all of those inquiries bother you, it may be helpful to know that soft inquiries fall off your report after 12 months, and hard inquires after 24 months.
Opting Out of Inquiries
Would you like to stop all the pre-screened credit and insurance offers you get, along with all of the soft inquiries that precede them? You may do so by calling (800) 5-OPTOUT. You will be given the option of opting out for 5 years, or permanently. Many of our enthusiastic credit repair customers choose to opt out to reduce the amount of junk mail they receive, which is a nice benefit! But remember that soft inquiries have no impact on your scores, and there is some possibility that you may miss out on some legitimately great offer.
Inquiry Errors Hurt Your Score
In the credit repair business we look at inquiries as a matter of course. Often we decide to ignore them and focus on more pressing issues. Sometimes we return to inquiries for a final clean up when a customer is at the end of the program. It should be noted that not all soft inquiries are properly coded, and as a result may show up as hard inquires and lower your score.
Identity Theft
The last and more urgent warning about inquiries involves the uncomfortable possibility that someone is applying for credit under your name. If you see a hard inquiry on your report you might want to contact the creditor to see if there is an active or pending application in your name. Chances are it is just another stray or improperly coded entry on your report, but it is best to be sure.
Copyright
Setting Your Priorities
Inquiries may hurt your credit score, or they may do nothing. If you are in a credit repair program there are probably bigger issues on your credit report than inquiries. Since it is best to focus on cleaning up the items that have the greatest impact, your inquiries may be left until everything else is resolved. Even then, you may decide to ignore the inquiries, but before we dismiss them altogether let’s explore a bit further.
Two Types of Inquiries
There are two types of inquiries. “Hard” inquiries will affect your credit score, and occur when you apply for new credit. “Soft” inquiries will not affect your credit score, and are typically triggered by three different events; 1) when you request your own credit report, 2) when potential lenders check your credit prior to offering you pre-approved credit, and 3) when a current lender conducts a periodic review of an existing account.
The Logic of Inquiries
There is logic behind the impact inquiries have on your FICO score. If you are applying for new credit you may be in the process of incurring new debt and placing an additional strain on your budget. Hence you are placed in a higher risk class, designated by a lower credit score.
Rate Shopping
The FICO scoring model was recently modified to accommodate consumers that shop for mortgage or automobile financing. You may now have as many inquiries as you wish in a 45 day period while shopping for a mortgage or automobile loan, and they will only have the impact of a single inquiry on your credit score. To further accommodate this type of shopping, these inquiries will not appear at all for 30 days. Many credit repair customers are relieved to find out that the many inquiries which appeared after they purchased a new car had little or no impact.
Inquiries and your FICO Score
Soft inquiries, as mentioned, have no impact on your credit score. Hard inquiries typically will lower your score between 1 point and 5 points. Credit repair efforts revolve around your credit scores, and it is handy to know that the FICO scoring model considers everything on your report simultaneously. The affect of an inquiry, like other bits of information on your report, can vary depending on everything else in your file. The more credit you have, and the more established it is, the less of an impact an inquiry will have.
Time and Your Credit
Time plays an important role on the impact of an inquiry. As the months slip by the affect of an inquiry diminishes quickly. After six months the affect is negligible. If you are in a credit repair program and are deciding if you want to dispute inquiries, you want to keep this in mind. And if all of those inquiries bother you, it may be helpful to know that soft inquiries fall off your report after 12 months, and hard inquires after 24 months.
Opting Out of Inquiries
Would you like to stop all the pre-screened credit and insurance offers you get, along with all of the soft inquiries that precede them? You may do so by calling (800) 5-OPTOUT. You will be given the option of opting out for 5 years, or permanently. Many of our enthusiastic credit repair customers choose to opt out to reduce the amount of junk mail they receive, which is a nice benefit! But remember that soft inquiries have no impact on your scores, and there is some possibility that you may miss out on some legitimately great offer.
Inquiry Errors Hurt Your Score
In the credit repair business we look at inquiries as a matter of course. Often we decide to ignore them and focus on more pressing issues. Sometimes we return to inquiries for a final clean up when a customer is at the end of the program. It should be noted that not all soft inquiries are properly coded, and as a result may show up as hard inquires and lower your score.
Identity Theft
The last and more urgent warning about inquiries involves the uncomfortable possibility that someone is applying for credit under your name. If you see a hard inquiry on your report you might want to contact the creditor to see if there is an active or pending application in your name. Chances are it is just another stray or improperly coded entry on your report, but it is best to be sure.
Copyright
Credit Repair
Posted in Finance on 11/23/2010 09:54 am by
Mike Hamel asked:
More than 30 million have financial problems of one sort or another, from late payments to bankruptcy. The American Bankruptcy Institute reports that, “The number of bankruptcy cases filed in the 12-month period ending September 30, 2005, totaled a record 1,782,643.”
Whether it’s brought on by personal illness, the loss of a job, or overspending, credit problems can seem overwhelming. To ease the financial pressure you can always,
Fill out a change of address card at the post office—and then don’t move. Ask the IRS to take you off their mailing list. Marry your car. Assuming your car produces no income and you file jointly, you can save up to 50% on your taxes.
If you want a more serious approach to credit repair, here are three things you can do.
Clean Up Your Record
No one can legally remove accurate and timely negative information from your credit report. Details about missing a loan payment, defaulting on a mortgage, or filing for bankruptcy, stay in your history for 7-10 years. The only thing that can erase such mishaps is time.
What you can get removed from your report are errors that could result in your receiving a bad credit rating. Consumer Reports magazine estimates that almost half of all consumers have errors in their credit files.
You should request and review your credit report from each of the three major credit bureaus. If you find errors, spell them out in a certified letter to the bureau involved. Include a copy of your report with the erroneous items clearly marked. Identify what you want corrected and include copies of any supporting documentation.
The bureaus are required by law to investigate and correct any listings that are inaccurate or that can’t be verified. At the conclusion of the investigation, the bureau must send you the written results and a free copy of your report if the dispute results in a change.
Change Your Ways
Fair, Isaac and Company, the people who developed credit scoring, offer the following common sense tips for changing your spending habits:
Pay your bills on time. If you have missed payments, get current and stay current. If you are having trouble making ends meet, contact your creditors or see a legitimate credit counselor. Keep balances low on credit cards and other revolving credit. Pay off debt rather than moving it around. Don’t close unused credit cards as a short-term strategy to raise your FICO score. Don’t open a number of new credit cards that you don’t need just to increase your available credit. Do your rate shopping for a given loan within a focused period of time. Check your credit report from the three major credit bureaus regularly.
Consider Refinancing Your Mortgage
Mortgage refinancing involves taking out a new loan to pay off your original mortgage. Depending on the equity in the home, the new mortgage can be for more than the amount of the old loan, giving you cash for debt consolidation.
Refinancing could lower your mortgage payments, saving you money every month. It could also help improve a bad credit rating if you handle the money wisely. You can learn more about mortgage refinancing and get a free loan quote at
Easy Mortgage Refinancing.
There is one caveat to refinancing. If you plan to move in the next three years, it might not be worth it as you won’t have time to recoup the costs of getting a new mortgage.
Courtney
More than 30 million have financial problems of one sort or another, from late payments to bankruptcy. The American Bankruptcy Institute reports that, “The number of bankruptcy cases filed in the 12-month period ending September 30, 2005, totaled a record 1,782,643.”
Whether it’s brought on by personal illness, the loss of a job, or overspending, credit problems can seem overwhelming. To ease the financial pressure you can always,
Fill out a change of address card at the post office—and then don’t move. Ask the IRS to take you off their mailing list. Marry your car. Assuming your car produces no income and you file jointly, you can save up to 50% on your taxes.
If you want a more serious approach to credit repair, here are three things you can do.
Clean Up Your Record
No one can legally remove accurate and timely negative information from your credit report. Details about missing a loan payment, defaulting on a mortgage, or filing for bankruptcy, stay in your history for 7-10 years. The only thing that can erase such mishaps is time.
What you can get removed from your report are errors that could result in your receiving a bad credit rating. Consumer Reports magazine estimates that almost half of all consumers have errors in their credit files.
You should request and review your credit report from each of the three major credit bureaus. If you find errors, spell them out in a certified letter to the bureau involved. Include a copy of your report with the erroneous items clearly marked. Identify what you want corrected and include copies of any supporting documentation.
The bureaus are required by law to investigate and correct any listings that are inaccurate or that can’t be verified. At the conclusion of the investigation, the bureau must send you the written results and a free copy of your report if the dispute results in a change.
Change Your Ways
Fair, Isaac and Company, the people who developed credit scoring, offer the following common sense tips for changing your spending habits:
Pay your bills on time. If you have missed payments, get current and stay current. If you are having trouble making ends meet, contact your creditors or see a legitimate credit counselor. Keep balances low on credit cards and other revolving credit. Pay off debt rather than moving it around. Don’t close unused credit cards as a short-term strategy to raise your FICO score. Don’t open a number of new credit cards that you don’t need just to increase your available credit. Do your rate shopping for a given loan within a focused period of time. Check your credit report from the three major credit bureaus regularly.
Consider Refinancing Your Mortgage
Mortgage refinancing involves taking out a new loan to pay off your original mortgage. Depending on the equity in the home, the new mortgage can be for more than the amount of the old loan, giving you cash for debt consolidation.
Refinancing could lower your mortgage payments, saving you money every month. It could also help improve a bad credit rating if you handle the money wisely. You can learn more about mortgage refinancing and get a free loan quote at
Easy Mortgage Refinancing.
There is one caveat to refinancing. If you plan to move in the next three years, it might not be worth it as you won’t have time to recoup the costs of getting a new mortgage.
Courtney