The Credit System (Part 3)
Free Government GrantsAnyone thinking about going into business for themselves, or wanting to expand an existing ..... ...... example, let's say you owe a department store $100. The department store may have already charged it off and reported it to the credit bureau. Offer to pay the store $50 to settle the account with the understanding that they will also remove the negative mark on your credit report.
The store can either say yes or no to this proposition. If they want a little more than $50, you will have to decide how high you can go and still stay within your payment schedule.
Subscribers have the ability to change your credit rating with the credit bureau. Many will tell you they cannot change the rating, but that is just not correct.
The Credit System (Part 4)Five Steps To Obtaining A1 Credit: Now that you understand the basics of what credit is, and why it is so ..... Please Note:
We are not suggesting this method to discount bills that you already owe. We feel each and everyone should pay their bills on time and in full. However, there are times when you just cannot pay 100% of every bill. Another reason for settling could be you where dissatisfied with the merchandise or service.
If you were dissatisfied with the merchandise, credit card companies have been known to take the bill off your account and charge it back to the store. However, you must notify your credit card company within one month of the purchase date.
If you feel uncomfortable about approaching the creditor yourself, you should hire an accountant, financial consultant, or possibly an attorney to act as your representative. Please check with the professional on how much this will cost you.
Signature LoansHere is another passport to success in taking advantage of a good deal or profitable transaction .....
If you are handling your own case, at some point you will probably reach a settlement. Percentages vary, however. I had a large chemical client that settled for 20 cents on the dollar. Don't expect to get that low in your negotiations. Settlements vary from 30 to 70 percent, with the majority being around 60 percent.
If you feel you can afford 60 percent, don't start out at 60 percent. If you do you will probably end up at 70 or 80 percent. You must start at around 40 percent if you expect to end up at 60. Remember that the collection department will start high to end up somewhere in the middle.
Federal Credit LawsThe Fair Credit Reporting Act of 1971: (a) Gives you the right to know what information is held .....
When you reach a verbal agreement with the collection department have them prepare a SETTLEMENT AGREEMENT and mail it or fax it to you for your review. DO NOT pay your bill prior to receiving this settlement agreement. Arrangements have been known to change from the time of initial phone contact to the receipt of the written settlement agreement. It would also be a good idea to have an attorney review the document for you.
Inquiries - What To Do?:
Excessive inquiries on your credit report can short circuit your loan efforts with any lender.
Using Credit CardsINTRODUCTION: SHOP. Smart consumers do comparison shopping when looking for credit such as a mortgage ..... The first thing you have to understand is how inquiries get on your credit report. Any time you apply for credit from any bank, department store or other creditors, they call up a credit report on you. This is called any inquiry, an d the name of the bank will be listed under inquiries for two years. In some cases you will find a bunch of letters and numbers with no names explaining who they are. You will need to ask your credit bureau to verify the names of these individuals.
Unfortunately it is now a common practice for car salesmen to run a credit report on you at 10 different finance companies. Before he spends time showing you dozens of cars, he wants to make sure that you will be approved for the one that you want to buy. If he can't get you approved for ANYTHING, he will move on to the next person. Leaving 10 different inquiries in his wake.
Naturally, if you have many inquiries listed, it looks like you are in financial trouble and are applying for loans all over the city. If four or more inquiries appear on a credit report within a two month period, a message of Trans- Alert is listed on the credit report. This alerts creditors that you have applied for credit an excessive number of times. Trans-Alert appears on the TransUnion statement. Sometimes banks screen your account to see if you will qualify for their credit card promotions and this just adds one problem upon another.
To correct this problem, I believe it is the easiest to deal with the creditor dispute method where you direct your correspondence to the company that listed the inquiry on your report.
Complaining About CreditComplaining to Federal Enforcement Agencies: First try to solve your problem directly with a creditor. Only if .....
In your letter you must ask them for proof that you authorized them to check your credit rating. If they cannot find that proof, they will have to get the inquiry taken off the credit report.
Many times, creditors do not have the time to go back into their records and verify your account, so automatically you win, and it will be deleted off your credit report.
You can also dispute directly with the credit bureau and ask what legitimate business reason they had to give your personal credit information out to "Company Name". If they can not provide this information, please remove the inquiry.
Do's And Don'ts:
Do not type your letters, write them in your own hand writing and use your own words as much as possible. Typing makes the credit bureaus think you are using a credit repair service.
Do not send mail by "Certified Mail."
Do use your own paper or the dispute forms that come with your credit reports.
Do not use legal language.
Do not apply for credit during the dispute process, it could reverse any results you have attained.
Do not call the credit bureaus for any reason! Always correspond through the mail and make copies of your correspondence.
Do keep copies of everything the bureaus send you.
Do be patient but do not give up. Millions of people have had negative items removed from their credit report!
Do not threaten the credit bureaus or tell them that you will hire an attorney if they don't take the disputed items off of your credit report. They know they have to follow the law. Threats will get you no where.
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