By law, under the FACT ACT, everyone is entitled to receive one free credit report each year. There are several ways to do it. Before I get to how to really get a copy of your credit report for free from each of the 3 main national credit bureaus, Experian, TransUnion, and Equifax, I want to give you a heads up on where not to get one that claims it's free, but charges you.
If you watch any amount of TV at all, you've most likely seen that obnoxious commercial with that smug actor telling you to get your free credit report at freecreditreport dot com. (notice I did NOT give you the actual link!) What he doesn't tell you, is that it isn't really free if you're not careful. You shouldn't have to provide a credit card to get a "free" credit report! But you do at this site!
Another site that claims to give you a free credit report is credit dot com. Again, you have to have a credit card. They tell you it's because it is going to verify your identity. But it's not really. It's so that after 30 days they can charge their monthly fee to your card.
Identityguard dot com will also give you your free reports. You will need a credit card here and after the free trial period, it only costs you 12.99 a month! So much for free here too!
Are you getting the idea? Some of the companies offering these supposed free credit reports are either owned by the "Big 3" or have a business relationship with them. As mentioned in an earlier post, these credit bureaus are in the business of making money off of your information. They hate that the law forces them to give you a free credit report every year. So they found a way to give it to you and still make money.
You will need to watch out for all these companies. There's a ton of them out there online. Many of them claim to be free, all of them have something to sell you. This will range from FICO scores, monitoring service, identity theft protection service, etc. It's just how they capitalize on the "free" credit reports you are entitled to legally.
They will give you your credit report for free, sure, but you have to buy their services from them, or at least take a trial run of their services. They flaunt that you will also get your FICO scores with your report. If you forget to cancel the service before the end of the trial period, which they are hoping you will do, you will be billed, uummm, sorry - charged - for that month.
So, if you are wanting to really get your credit report for FREE, there is really only one place online to get it. It is the only site that is legally authorized to give you your free credit report. This time I'm going to hyperlink the website address for you. That's because it really is free! It's called annualcreditreport.com. You will get a copy of your report from each bureau. You will NOT have to provide a credit card, unless you want to know what your FICO scores are.
You will need to create an account so you can login. That's free. Then you will pick the bureaus you want your reports from. It can be just one or two, or all three. Doesn't matter how many you want, your report is free. Then it will go to a bureau and you will be asked a couple of multiple choice questions to match your identity to information already on your report. This is how they verify your identity, not with a credit card.
Be careful during this process. If you answer incorrectly, you will be forced to request it by mail, plus they will want you to send in a copy of a government issued id and other things to prove who you are. If you have a question given to you with answers that leave you trying to remember that old information, just stop. Go back and start the process to get the report from the next bureau. The questions are usually different.
Once you get through the questions correctly, you will be able to print your report or save a copy to your hard drive. That's what I always do. That way, when I go back to the other bureau with the questions I had trouble with, I can look at my report from the bureau I just got, and find the answer! Maybe it's cheating, but dang it, it's my report! I don't necessarily remember the original payment amount or loan amount I had 12 years ago! I don't remember the exact year I worked at some crappy fast food restaurant!
Those are some of the questions they ask you. Here's some more examples of things you will be asked. Mortgage company name, car loan companies, past employers, addresses you've lived at - be careful with this one, they sometimes put addresses that look very similar to an actual address to trick you.
You will do this for each bureau, and each time you will be able to print and/or save it to your computer. If you end up having to mail in their form to the bureau to get your copy, here's my suggestion. DON'T USE THEIR FORM! Instead, write a letter to them requesting your free credit report. Include your Full Name, Current Address, Social Security number and Date of Birth. Mail it to the address they provide. Don't give them a copy of your SS card, utility bill, or driver's license. The less they know about you, the better!
If they send you back a letter requesting that you need to send them the copy of license, etc., mail them back saying that obviously they got the right person because you received their letter, and please send the credit report now! This has always worked for me when the bureaus try to pull this during credit repair for several of my clients.
You can also request your free credit reports by phone. Here is the number you call for this. It is a toll free number, so it won't even cost you anything to call.
877-322-8228
You can also receive your free reports by mail. You will need to print this form (it's in .pdf format) and mail it to the following address:
Annual Credit Report Request Service,
P.O. Box 105281,
Atlanta, GA 30348-5281
DO NOT request it from the individual bureaus themselves because they don't have to honor it. They will require a fee, unless you meet the criteria for a free credit report, such as having been turned down for credit very recently. You will need to provide a copy of that rejection letter at the time of your request.
Wednesday, September 26, 2007
Monday, September 24, 2007
Credit Repair and Student Loans
When your student loan goes into default, you may think that credit repair will help. Well, that isn't necessarily so. Credit repair is great for removing bad credit like late pays, charge offs and collections. Credit repair can also remove public records like judgements and bankruptcy/bankruptcies. But student loans are a little different.
Defaulted student loans can give you really bad credit. This is because, though it may only be one loan that you default on, it gets reported separately for every dispersement that was given. So, if you went to college for 2 years, and every semester you had a dispersement, it will show up on your credit report as 4 tradelines, one for each dispersement. But it gets worse!
Those 4 tradelines, or however many, while being paid on time, or in deferment, give you great credit. But just like creditors turn your credit card accounts to collections, so do student loan providers. Now, your tradelines double! And they are all giving you bad credit! Both the original provider and the collector are allowed to report these lines of credit on your credit report.
Credit repair can remove those tradelines, sometimes, but it is mainly by luck. But the luck isn't necessarily always good on them, when disputing. The government is usually pretty good at keeping those records, so they have no problem validating. The problem is, if it isn't reporting accurately, by law,it must report accurately. So if it is reporting inaccurately in your favor, they may correct it and then it looks even worse!
Even if you are lucky and the student loan entries come off, you will ALWAYS owe the debt to the government. They have enacted laws to always get theirs. This is a debt that is almost always paid or taken to the grave. They will eventually take your tax refunds, wages, social security, you name it.
The best thing to do with your defaulted student loan is to call your provider or the Dept. of Education. They can help you rehabilitate your loan, which will pull it out of the default status. Depending on what kind of loan you have, that will take 9-12 on time payments over the next 10 months, or according to an agreed payment plan. Payments that have been garnished, or paid involuntarily, will not count as part of the rehabilitation.
The good thing about rehabilitation though, is when you complete those payments, your credit is repaired on the student loans. They take them out of the derogatory category and mark them "paying as agreed". They do this without even having to dispute, in most cases. After you have rehabilitated your student loan, if needed, you can apply for deferment. You should repair any other credit issues on your report while the rehabilitation is going on. By the time your loan is rehabbed and you are applying for deferment, if you do apply for deferment, your credit reports should be looking pretty sweet!
Your FICO scores will take a jump from removing other negative items through credit repair. Then when your student loans move out of derogatory to satisfactory, your scores will rise even higher. Make sure you repair your credit on any student loans that are not showing in the positive categories on your credit report after you have finished the rehabilitation. This is when I see most positive results with credit repair for student loans.
Defaulted student loans can give you really bad credit. This is because, though it may only be one loan that you default on, it gets reported separately for every dispersement that was given. So, if you went to college for 2 years, and every semester you had a dispersement, it will show up on your credit report as 4 tradelines, one for each dispersement. But it gets worse!
Those 4 tradelines, or however many, while being paid on time, or in deferment, give you great credit. But just like creditors turn your credit card accounts to collections, so do student loan providers. Now, your tradelines double! And they are all giving you bad credit! Both the original provider and the collector are allowed to report these lines of credit on your credit report.
Credit repair can remove those tradelines, sometimes, but it is mainly by luck. But the luck isn't necessarily always good on them, when disputing. The government is usually pretty good at keeping those records, so they have no problem validating. The problem is, if it isn't reporting accurately, by law,it must report accurately. So if it is reporting inaccurately in your favor, they may correct it and then it looks even worse!
Even if you are lucky and the student loan entries come off, you will ALWAYS owe the debt to the government. They have enacted laws to always get theirs. This is a debt that is almost always paid or taken to the grave. They will eventually take your tax refunds, wages, social security, you name it.
The best thing to do with your defaulted student loan is to call your provider or the Dept. of Education. They can help you rehabilitate your loan, which will pull it out of the default status. Depending on what kind of loan you have, that will take 9-12 on time payments over the next 10 months, or according to an agreed payment plan. Payments that have been garnished, or paid involuntarily, will not count as part of the rehabilitation.
The good thing about rehabilitation though, is when you complete those payments, your credit is repaired on the student loans. They take them out of the derogatory category and mark them "paying as agreed". They do this without even having to dispute, in most cases. After you have rehabilitated your student loan, if needed, you can apply for deferment. You should repair any other credit issues on your report while the rehabilitation is going on. By the time your loan is rehabbed and you are applying for deferment, if you do apply for deferment, your credit reports should be looking pretty sweet!
Your FICO scores will take a jump from removing other negative items through credit repair. Then when your student loans move out of derogatory to satisfactory, your scores will rise even higher. Make sure you repair your credit on any student loans that are not showing in the positive categories on your credit report after you have finished the rehabilitation. This is when I see most positive results with credit repair for student loans.
Saturday, September 22, 2007
Credit Bureaus - What Is Their Purpose?
Well, that sounds like it has an easy answer now doesn't it? Actually they have more than one purpose, but they have ONE MAIN purpose. And the answers are pretty easy. Just by the name, you know that they are a warehouse for credit information. But, what is a warehouse used for? Storing stuff. Well, yes, credit bureaus store stuff - our information. But what do warehouse owners do with the stuff in the warehouse besides store it? They SELL it! Yep! That's right. So do credit bureaus!
Credit bureaus are in the business of making money! Your credit is the product that they sell. They sell your information to any one who wants to buy it, which may be one of their subscribers or whoever you authorize to view your credit by filling out an application for credit. That's how they make money. Just as having bad credit costs you more to get more credit, say a loan or car, or line of credit, or the interest rate on credit cards, bad credit brings them a heck of a lot more money than selling a file with good credit. In fact, the 3 main bureaus, Experian, Equifax and TransUnion, have a combined annual revenue of over $4 BILLION!!!!
They know that people with bad credit more often than not, have some financial concerns. They apply for credit more often. About 10 times more often than people with good credit. They don't care if the information on your credit report is wrong. They know that it has errors on it. It's a game to them. They know that the law says that the only information that can be on your report is information that is 100% correct. But they figure, unless you catch the error, why should they waste the time and money verifying your information is accurate? That would cost them too much money and cut into their profits!
There's all kinds of information floating around about what percentage of credit reports have errors on them. NY state attorney general estimates that 1/3 of all credit reports have errors on them. The US Congress estimates that 1/2 of all credit reports have errors on them. Then there are studies and surveys done that report different amounts. I've read some that estimate about 60% and the bureaus themselves admit to about 79%. I think that they're all way off, and that the bureaus are dyslexically reporting their numbers. I think that the number that is closer to accurate is 97%! In the 14 years I've been doing credit repair, I've found errors in 100% of the credit reports I've reviewed!
I'm not being fair though. I have people come to me to help them clean up their credit. I see a lot of poor credit. So it's very likely that I don't get to see the perfectly reported credit that is stored at the bureaus. I mean, hey, there are billions of credit files out there and probably only about 3 percent of them are accurate. What's the chance of seeing one that is 100% correct? My chances of winning the lottery are probably better than my chance of seeing one of those!
Just so those of you with bad credit don't feel too bad, let me tell you this. I'm a real estate agent. My office also brokers real estate loans. We have clients with great credit, good credit, okay credit, and poor credit. Here's how I'm going to help you feel a little better. I'm going to tell you a secret! The secret is...............
EVEN THE GREAT & GOOD CREDIT CLIENTS HAVE REPORTS WITH ERRORS ON THEM!
Are you shocked? Millionaires with crappy credit!! I've seen it for myself! I'm telling you the truth. I have NEVER seen a credit report, good or bad, that didn't have errors on them! It almost seems intentional. Just like creditors hate their customers that pay their bills off every month, credit bureaus hate perfect credit. (okay, not necessarily a fact, but my opinion)! They are in the business to make money. They are not government agencies. They are not even government regulated. They are FOR-PROFIT-COMPANIES!
So, how can you slow them down a bit from making money off of you? Here you go! You need to get on the "OPT-OUT" list. This is a list of consumers that says to them, "I don't want you to sell my information to anyone!" It's free to do. It prevents them from selling your information to all those companies that offer you credit by mail or phone. That's what all those inquiries on your credit report are, that only you can see. There's a bonus to doing this as well. I don't know why, but I have noticed a little jump in the credit score after my clients have opted out.
So, if you want to get on the "Opt-Out" list, I've provided the information below! It's time to start fighting back, every little way we can!
OPT OUT by Phone
1-888-5OPT-OUT
(Make sure you wait for the prompt to opt out for good. The first one is only for a few years. Selecting the second option, by pressing 3, will opt you out forever)
OPT OUT by Mail
You need to send the letters to all 3 bureaus. You can go here for a sample form letter to send them. http://www.ftc.gov/privacy/cred-ltr.htm - (if you need to copy/paste!)
Credit bureaus are in the business of making money! Your credit is the product that they sell. They sell your information to any one who wants to buy it, which may be one of their subscribers or whoever you authorize to view your credit by filling out an application for credit. That's how they make money. Just as having bad credit costs you more to get more credit, say a loan or car, or line of credit, or the interest rate on credit cards, bad credit brings them a heck of a lot more money than selling a file with good credit. In fact, the 3 main bureaus, Experian, Equifax and TransUnion, have a combined annual revenue of over $4 BILLION!!!!
They know that people with bad credit more often than not, have some financial concerns. They apply for credit more often. About 10 times more often than people with good credit. They don't care if the information on your credit report is wrong. They know that it has errors on it. It's a game to them. They know that the law says that the only information that can be on your report is information that is 100% correct. But they figure, unless you catch the error, why should they waste the time and money verifying your information is accurate? That would cost them too much money and cut into their profits!
There's all kinds of information floating around about what percentage of credit reports have errors on them. NY state attorney general estimates that 1/3 of all credit reports have errors on them. The US Congress estimates that 1/2 of all credit reports have errors on them. Then there are studies and surveys done that report different amounts. I've read some that estimate about 60% and the bureaus themselves admit to about 79%. I think that they're all way off, and that the bureaus are dyslexically reporting their numbers. I think that the number that is closer to accurate is 97%! In the 14 years I've been doing credit repair, I've found errors in 100% of the credit reports I've reviewed!
I'm not being fair though. I have people come to me to help them clean up their credit. I see a lot of poor credit. So it's very likely that I don't get to see the perfectly reported credit that is stored at the bureaus. I mean, hey, there are billions of credit files out there and probably only about 3 percent of them are accurate. What's the chance of seeing one that is 100% correct? My chances of winning the lottery are probably better than my chance of seeing one of those!
Just so those of you with bad credit don't feel too bad, let me tell you this. I'm a real estate agent. My office also brokers real estate loans. We have clients with great credit, good credit, okay credit, and poor credit. Here's how I'm going to help you feel a little better. I'm going to tell you a secret! The secret is...............
EVEN THE GREAT & GOOD CREDIT CLIENTS HAVE REPORTS WITH ERRORS ON THEM!
Are you shocked? Millionaires with crappy credit!! I've seen it for myself! I'm telling you the truth. I have NEVER seen a credit report, good or bad, that didn't have errors on them! It almost seems intentional. Just like creditors hate their customers that pay their bills off every month, credit bureaus hate perfect credit. (okay, not necessarily a fact, but my opinion)! They are in the business to make money. They are not government agencies. They are not even government regulated. They are FOR-PROFIT-COMPANIES!
So, how can you slow them down a bit from making money off of you? Here you go! You need to get on the "OPT-OUT" list. This is a list of consumers that says to them, "I don't want you to sell my information to anyone!" It's free to do. It prevents them from selling your information to all those companies that offer you credit by mail or phone. That's what all those inquiries on your credit report are, that only you can see. There's a bonus to doing this as well. I don't know why, but I have noticed a little jump in the credit score after my clients have opted out.
So, if you want to get on the "Opt-Out" list, I've provided the information below! It's time to start fighting back, every little way we can!
OPT OUT by Phone
1-888-5OPT-OUT
(Make sure you wait for the prompt to opt out for good. The first one is only for a few years. Selecting the second option, by pressing 3, will opt you out forever)
OPT OUT by Mail
You need to send the letters to all 3 bureaus. You can go here for a sample form letter to send them. http://www.ftc.gov/privacy/cred-ltr.htm - (if you need to copy/paste!)
Wednesday, September 19, 2007
How To Get Bad Credit
Most people living in the United States with a social security number have had messed up credit at one time or another in their life. This includes me! I ‘ve gone from great credit to crappy credit, back to great credit again and so forth. Situations happen in everyone’s lives that cause our credit files to get all screwed up. It’s not just about being irresponsible. It wasn’t in my case, but it sure looked like it when you saw my credit!
I don’t actively condone not paying bills. But, much of the blame for credit issues are the creditors’ fault. I’m not only talking about extending too much credit for someone who couldn’t possibly make the payments on the full limit, or part of the limit for that matter. I’m talking about excessive interest rates, sneaky ploys to cause payments to be late, over the limit fees, especially the ones that their own fees are what put you over the limit! Conditions like having to pay by 12 noon EST to get your payment posted the same day!
I’m sure you’ve noticed that when you’re hurting financially and need to have some credit to get by or get on your feet, that’s when the whole business of credit is against you. The people who could benefit the most from some credit leeway are the ones that get rejected and penalized, while the ones with decent income, cash flow and credit can get more and more and more.
It really pisses me off. That’s one of the reasons that I decided to help others repair their credit. The bureaus and FTC like to say you can’t repair your credit. They like to say that accurate information has to stay on 7 to 10 years. Those statements are so twisted. They are half truths, worded into a way of making you feel helpless. The truth is, you can remove bad credit! The laws regarding credit are written to protect us, the consumer, not the publicly traded companies that are credit bureaus, pretending to be official government agencies.
Bad credit doesn’t have to stay on 7 to 10 years. It doesn’t even have to be reported! The law really is, bad credit cannot stay on your credit for more than 7 to 10 years! Accurate entries on your report can only stay on your credit report if they are 100% accurate, and I mean 100% accurate!
This is why credit repair works! The law allows for information that is not completely accurate to be removed! Come back soon for more truths and tips about credit repair.
I don’t actively condone not paying bills. But, much of the blame for credit issues are the creditors’ fault. I’m not only talking about extending too much credit for someone who couldn’t possibly make the payments on the full limit, or part of the limit for that matter. I’m talking about excessive interest rates, sneaky ploys to cause payments to be late, over the limit fees, especially the ones that their own fees are what put you over the limit! Conditions like having to pay by 12 noon EST to get your payment posted the same day!
I’m sure you’ve noticed that when you’re hurting financially and need to have some credit to get by or get on your feet, that’s when the whole business of credit is against you. The people who could benefit the most from some credit leeway are the ones that get rejected and penalized, while the ones with decent income, cash flow and credit can get more and more and more.
It really pisses me off. That’s one of the reasons that I decided to help others repair their credit. The bureaus and FTC like to say you can’t repair your credit. They like to say that accurate information has to stay on 7 to 10 years. Those statements are so twisted. They are half truths, worded into a way of making you feel helpless. The truth is, you can remove bad credit! The laws regarding credit are written to protect us, the consumer, not the publicly traded companies that are credit bureaus, pretending to be official government agencies.
Bad credit doesn’t have to stay on 7 to 10 years. It doesn’t even have to be reported! The law really is, bad credit cannot stay on your credit for more than 7 to 10 years! Accurate entries on your report can only stay on your credit report if they are 100% accurate, and I mean 100% accurate!
This is why credit repair works! The law allows for information that is not completely accurate to be removed! Come back soon for more truths and tips about credit repair.
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