OfflineCleaning up Your Credit
Lenders generally check with three credit bureaus (1 for autos and consumer finance) in order to evaluate your past payment history. Your goal in cleaning up your credit report should be to clean up each of the three bureaus. If you only work on one, this does not effect the reporting to the other bureaus.
Get A Copy of Your Credit Report
The first step is to get a copy of your merged credit report, which shows all three of the major bureaus, Experian (formerly TRW), Equifax (formerly CBI), and Trans-Union. Most mortgage lenders will obtain data from all three of these bureaus in analyzing your credit history. The exception is that some portfolio lenders (usually adjustable rate lenders) may only review one. To make it easier for you, FreeCreditReport.com, iCredit, Credit.com and others will allow you to order a Merged Report on-line. It costs about $29 and is delivered to you by e-mail, mail or directly online once you have completed the request.
What to Say When You Call Your Creditors
There are two efforts that must be made. First, call any creditors reporting a negative and ask them to remove the negative item. Ask in a nice calm voice and do not get upset when they say no. Simply repeat your request over and over in your nice pleasant voice. If you get nowhere, then ask to speak to the supervisor. Make sure you keep a log of your conversation, noting the date, time, who you spoke to and what they said. Repeat this procedure over and over. In a high percentage of cases, it works.
Get Written Confirmation of Agreements
Be sure to ask for a letter by mail or fax that shows the creditor is correcting the negative information. You may need this letter for two reasons. First, they may not actually make the changes. With the letter, you can appeal directly to the credit bureau and they will make the correction. Second, if you are applying for a mortgage before the changes actually hit the credit bureau's report, your lender will need this documentation.
If you have a charge off or collection account that shows as unpaid, don't just send them a check and pay it off. Call the creditor on the phone, explain that you have the funds to pay the account in full, and calmly explain why it should not have been reported on your credit in the first place. Then ask if they will provide you a letter deleting the account entirely from all credit bureaus if you pay off the account. Try to get them to fax it to you. As before, be sure to document all of your telephone contact and always keep a nice pleasant tone in your voice. In a large percentage of cases, this also works.
Disputing the Report -- When Your Creditor Will Not Remove an Item
There will be cases when the creditor does not agree to remove the negative credit item. If it is an item that is definitely not yours, call the credit bureau immediately (except for Equifax, who only responds by mail). When on the telephone, do not discuss any negative items that are accurate. Do not discuss any items that may be accurate in general but have some small error in detail that you can dispute by mail. Once you confirm any accuracy at all, you cannot dispute it later by mail.
For the remaining items, you need to dispute them by mail, writing directly to the credit bureaus. Write a letter to the appropriate bureau including your name, social security number, address, disputed accounts, and account numbers. You must sign the letter. Inform the bureau that you are disputing the data as it appears on your credit report. One of the best changes in credit reporting and dispute resolution is the fact that the three bureaus will allow you to dispute online. Disputes still take 30 days to complete but you will be notified in writing of the results.
Increasing Credit Score
One of the quickest ways is to be added to someone else’s credit card as an authorized signor. This option will be going away soon but until such time, it does allow the positive credit reflected on that credit card to be added to the overall assessment of your current credit profile. This is not an option necessarily endorsed by this institution but merely an option that has been exercised in the past by others.
Obtain 2-3 guaranteed credit cards or bank loans. You may take a slight hit in the first 30 days after issuance, use the cards and pay them off by the third week of every month and you will reap the benefit of increased credit scoring. This option although slow can reflect in a 20-30 point increase in fico score for every two accounts activated.
Reporting Agency Contact Information
Equifax Consumer Relations
800.685.1111
P.O. Box 740241
Atlanta, GA 30374-0193
www.equifax.com
TransUnion Consumer Relations
800.888.4213
P.O. Box 1000
Chester, PA 19022
www.transunion.com
Experian Consumer Relations
888.397.3742
P.O. Box 2002
Allen, TX 75013
www.experian.com
Summary
It’s important to note that raising your FICO credit score is a bit like losing weight: It takes time and there is no quick fix. In fact, quick-fix efforts can backfire. The best advice is to manage credit responsibly over time and by just following these tips and raising your credit score over time.
Payment History Tips
• Pay your bills on time.
Delinquent payments and collections can have a major negative impact on your FICO score. This impact can be as much as 60-80 points the moment it is reported.
• If you have missed payments, get current and stay current.
The longer you pay your bills on time, the better your credit score.
• Be aware that paying off a collection account will not remove it from your credit report.
It will stay on your report for seven years. As noted above, you can negotiate removal at time of payoff. They may tell you they are not allowed to do it, realistically they are allowed because they posted the negative information in the first place.
• If you are having trouble making ends meet, contact your creditors or see a legitimate credit counselor.
This won't improve your credit score immediately, but if you can begin to manage your credit and pay on time, your score will get better over time.
Amounts Owed Tips
• Keep balances low on credit cards and other “revolving credit”.
High outstanding debt can affect a credit score. It is widely believed that balances should be less than 40% of available credit to actually see scores improve or to maintain the high score.
• Pay off debt rather than moving it around.
The most effective way to improve your credit score in this area is by paying down your revolving credit. In fact, owing the same amount but having fewer open accounts may lower your score.
• Don't close unused credit cards as a short-term strategy to raise your score.
If you want to close accounts, do it over a period of time. Multiple accounts closed at the same time will actually drop your score. Inactivity can actually drop your score as well.
• Don't open a number of new credit cards that you don't need, just to increase your available credit.
This approach could backfire and actually lower your credit score.
Length of Credit History Tips
• If you have been managing credit for a short time, don't open a lot of new accounts too rapidly.
New accounts will lower your average account age, which will have a larger effect on your score if you don't have a lot of other credit information. Also, rapid account buildup can look risky if you are a new credit user.
New Credit Tips
• Do your rate shopping for a given loan within a focused period of time.
FICO scores distinguish between a search for a single loan and a search for many new credit lines, in part by the length of time over which inquiries occur.
• Re-establish your credit history if you have had problems.
Opening new accounts responsibly and paying them off on time will raise your credit score in the long term.
• Note that it's OK to request and check your own credit report.
This won't affect your score, as long as you order your credit report directly from the credit reporting agency or through an organization authorized to provide credit reports to consumers.
Types of Credit Use Tips
• Apply for and open new credit accounts only as needed.
Don't open accounts just to have a better credit mix - it probably won't raise your credit score.
• Have credit cards - but manage them responsibly.
In general, having credit cards and installment loans (and paying timely payments) will raise your credit score. Someone with no credit cards, for example, tends to be higher risk than someone who has managed credit cards responsibly.
• Note that closing an account doesn't make it go away.
A closed account will still show up on your credit report, and may be considered by the score.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
Thank you Nate...excellent info
would you mind posting this or copying it under CREDIT ( http://www.deangraziosi.com/node/3944 ) in financing and credit. Just trying to streamline this topic into one and make it easier to find for newbies
Anita
******************************************
TWITTER - anitarny / FACEBOOK - anitarny
"FAILURE IS NOT AN OPTION"
Nate,
This is great info! Thanks a ton!!!!
-DGadmin
Since you are allotted one free credit report a year. I order one credit report from each of the credit bureaus every three months. So I never have to pay for my credit report. Anytime I see an error or something unusual, I notify all three bureaus by mail with the issue and my argument. (all fact, no folly)
Those who say it cannot be done should not interrupt those who are doing it.
So you get a free one from EACH of the bureaus per year? That's great!
How often can you personally get your credit report without it affecting your score?
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
you can get your annual free credit reports here
www.annualcreditreport.com
And pulling it from here will not affect your credit
Anita
******************************************
TWITTER - anitarny / FACEBOOK - anitarny
"FAILURE IS NOT AN OPTION"
I've done it once already this year at that site and it gave me all three bureaus (I think. I have to look.). Can I do it more than once a year and just pay for it? Or will that affect my score? I'm really curious to see where it's at now.
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
Hi Rina, when you order your own credit report, it doesn't effect your score, only companies that you apply through can effect your score, very little though. Now if someone repeatedly kept applying over and over for credit with all kinds of different companies then that will lower your score significantly. Yes you can order as many as you want yourself and it will not effect your score.
cindy REI
That was very helpful. I've gotten the same answer from a few sources.
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
Well, I went to www.truecredit.com to sign up for unlimited access to my credit report. It was well worth it. It shows current findings (today's) for all 3 bureaus Transunion, Experian, and Equifax. It was somewhat alarming that one of the bureaus had incorrect information about me, an address I had never lived at, wrong birth year! Most of the other information with them was correct. It wasn't a surprise that my score with them was significantly lower than the other two (which were identical, and good scores). I will be contacting them tomorrow.
Thank you so much for all the information given on credit: Anita, Nate, everyone. Thanks for the help.
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
You are so welcome, funny you mentioned about having an incorrect address. A couple of years ago i discovered that they had me living in Kissimee Florida LOL. I said i wish i did but I simply asked the bureau to remove it and they did.
cindy REI
Thank you. I just posted a request for this information in another credit forum. I take it you really like this compaany and it's worth the 14.95 per month?
Roni
PS - On the credit report I received for my PR they had a previous address for me that was actually an old address for my mother. I don't have a clue as to how that happened.
Yes, I've been watching it like a hawk lately. I've had a couple of alerts this week, but they were things I knew were coming. Still, it's nice to know they're on the ball.
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
I truly have gotten a lot of information from this particular post. I am very good a thandling my money, but my credit went way down hill when i was with my exhusband. Now I am trying to make some serious lifestyle changes,not only for myself but for my children as well, especially considering that I am a single mom trying to do this without any child support either. I have not had an active credit account in good standing really except for one for the past several years now. I did recently sign up for a couple of credit cards to at least have some kind of active accounts going. I plan to use the cards to pay for stuff I would have to play for anyway, such as gas or food, and just pay them off within three weeks time. I also plan on using some of your suggestions for some of the older debts on my credit history to see if I can help my score in that way also. Thank you for this article!! Any other ideas anybody may have to help would be greatly appreciated as well.
I am in the process of cleaning up my credit report now. It is work thatis well worth it. Getting negative info removed from your report feels good, also incorrect info should be removed. Talk to your creditors about the items that are yours and they will work with you to resolve your problems.Like making payment arrangements on items that can be paid off, But check your statue of limitations (SOL) for your area. As some of the information may be outdated and it can be removed from your files.
This is easily the most complete and "boiled down" information that I have ever read on Credit Reports! Kudos!
I stand amazed at how quickly one can pick these ideas up and hear (and learn) from others looking at the same info but from other perspective(s) and adding their own experiences...Wow!
And hearing others voice similar questions/thoughts validates my own (sometimes unique) thinking patterns...
This site reminds me of a story about the Stone Soup guy...don't want to get this awesome forum off topic but if interested, ask as it's a great analogy to what these collective forums are doing for the entire DG community.
Have a cool day! wib
"All great social and intellectual movements begin with a group of interested friends." CS Lewis
And we know that for those who love God, that is, for those who are called according to his purpose, all things are working together for good.
Romans 8:28 - International Standard Version (©2008)
What do I do since I am unemployed and have been for a year today. Looking steadlily, however unsuccessful. I try to pay on time but sometimes we don't have a choice but be late. What do I do for that, since I know my business needs my credit too.
make it an even HIGHER priority than you have it now, i can't stress enough how important it is to pay your bills on time, i mean think about it?, If your an REI you need as many lenders as possible to choose from, and when you pay you credit card payments late, the lender will feel thats how your going to pay them, if your going to be LATE on anything, then be LATE on bills that DO NOT report to the credit agencys every month, like: electric bill, cable bill, phone bill, etc., ANYTHING CREDIT PAY IT ON TIME!
YOUR HERO, SULLY
Welcome to the DG family, as we call it, we're very happy that you're here! I'm sorry to hear about your unemployment situation. I've been there myself, I know what it's like to live off credit cards, NOT fun!! You can also lock up a deal with NO credit or money, if you find a FSBO. Do your homework, make sure the numbers are there, find an end buyer and get a fee for your time and effort. I made $25,000 doing this and my credit wasn't the greatest either. Once you have a little extra money you can get your LLC and start building business credit. Once you have business credit established you can pay off your personal credit debt. Although it takes a few months, it can be the long term solution to your problem. I will keep you in my prayers.
God bless you,
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
Hi Everyone,
Unfortunately due to divorce, during the process my credit was critically affected. All accounts closed, however, after doing my research, according to the Fair Credit Reporting Act (FCRA) it is quite legal to challenge any negative reporting on your credit reports (all three). All information must be verified as being totally correct & the older an item is often time the harder it is to verify since often time the originator has sold it off to say a collection agency who does not have all the records.
Also, you can ask the original creditor to remove the negative items and they don't have to wait 7 years also in line with the FCRA. On verifiable negative reports, only the original creditor can remove these items.
Even though I know I could do this myself, I am surely not the expert and between working full-time at another j.o.b. (for now) and learning everything I can here and getting out there, I just don't have spare time. Now my question is to anyone who used any of the Credit Repair Companies and not those that uses a computerized system but uses a personal approach. Who can you recommend and how was your experience. I've narrowed it down to a few:
Please let me know any information about these or any others (Lexington Law is out of the question since they only use a computerized approach in which you decide what to go after...the other companies above decide by their determination on which are affecting your score the most.)
Thank you & God Bless.
Love, Light & Blessings,
Darlene
I don't anything about the ones you posted, but I used on two years ago, they were a local company, I paid $399 and they brought my credit up from a 580 to 680 in 45 days! It was well worth the money, so I would recommend you get referals from people who've used them. This company was willing to provide that for me. I hope this helps you.
Good luck and God bless!
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
I will ask them for referrals. Thanks
Love, Light & Blessings,
Darlene
Just want you to make sure that they're a reputable company that will do what they say.
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
On www.truecredit.com if you view their site, put in your e-mail but don't order anything, the next day you will have an e-mail from them telling you that you can get all 3 credit reports for 9.99. I did this by accident and it worked.
Just passing it along.
Todd H. Brown
Cajun Investments LLC.
You can also sign up for the 30 day free trial @ freecreditreport.com and get it, then just cancel before the 30 days and pay nothing.
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
So far on one of the sites testimonials, the had the actual letter written, not just the words typed. I located many from Auto Dealers, Mortgage & RE firms who sent their clients to this company to help clean up their credit prior to applying for what ever loan. One even offered to contact the company directly to have someone get in touch with me. We will see what happens.
Love, Light & Blessings,
Darlene
I just started DG program, will look at my credit score in the next couple of days. But doing some research today I saw that there are FOUR (4) credit reporting agencies out there. I know about Equifax, TransUnion and Experian, of course.
But does anybody know what the name of the fourth one is? I've never heard this before....
Conny
"POOR people own big TVs. RICH people own big libraries."
Really? I only know of those three, let me know what the fourth is ok? Thanks!
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
Okay I am new, first time on web site. Just got my TALD yesterday. How do you establish business credit?
Erika, REI
Brownstone Investment Group
405.748.0734
www.facebook.com/Erika.Coleman
www.twitter.com/brownstoneREIgr
Job 22:21 Submit to God, and you will have peace; then things will go well for you.
Job 22:28 You will succeed in whatever you choose to do, and light will shine on the road ahead of you.
Deut 28:8 The Lord will guarantee a blessing on everything yo do and will fill your storehouses with grain. The Lord you God will bless you in the land he is giving you.
Could that fourth "credit agency" be Fair Isaac Company(FICO)? They're not really a credit agency, but they establish your FICO score from the aforementioned three. Fair Isaac will not answer any questions about anything. I tried.
cactusbob
....after asking you guys about it here on this thread, I found it myself sometime last week while researching something else. Here goes:
Innovis*
Offers credit reports via mail or phone or web request, including a free credit report for those that are unemployed, receiving public funding, suspect an error in the credit file, or have received a denial in credit matters in the last 60 days. With Innovis, you can initiate a credit report file dispute, place a fraud alert, or place a freeze for extra security on your credit file. By placing a freeze, you prevent creditors from accessing your credit report information without your permission.
User Rating: 5.0/5.0
Hope, that info is helpful to some of you.
Best regards,
Conny
"POOR people own big TVs. RICH people own big libraries."