The following is based on information taken from H L Saffell's book: "REPAIR YOUR CREDIT WITH LITTLE KNOWN SECRETS the scam
artists hope you don't find out about"
This is where we get down to the business at hand. This section, if properly used,
will alleviate most if not all of your credit problems. So study it well and apply what you learn with diligence and patience. Remember, you must stick to it until you finish the job. Do it right and you will be on your
way to a better life. Really, cleaning up your credit is easy - it just takes time to do it right. So do it yourself. The only time you would want to hire expensive legal help is in case a merchant or a credit bureau
balks at following the necessary steps required by law. But remember, such professional help is expensive and should only be done when necessary and as a last ditch effort. However, most of you will sail right through
the process and come home free.
Your first step is to obtain reports from all three of the major credit bureaus, such as Transunion, Equifax and Experian. (It's a good idea to get copies of
your credit report at least once a year, sometimes more often than that. Even if your record is good, you should check up on it from time to time to make certain it still is clean.) You can also check with your local
credit bureau and see if it's connected with any of these big three. If this local bureau isn't connected with those three, then you must also get a credit report from them, just to be on the safe side. Ninety-nine per
cent of merchants and lenders will be members of one or more of the big three.
To repeat, in order to get a free report from these agencies, you must have been turned down for credit within
the past 60 days. Some people find this a convenient way to get a free report, particularly if they know their credit is not good. So they apply for credit from a merchant and follow through. Others who can get free
credit reports are those who are unemployed and are seeking employment. Those who are on public welfare rolls and are receiving aid are eligible for a free credit report. Finally, those who think their credit file may
have inaccuracies due to someone committing fraud can also receive a free credit report. HOWEVER, in most cases there will be a charge for the reports. The charge is nominal and really of not that much consequence.
Order the reports in writing. Include your name, address, social security and telephone numbers. Address the letter to "Consumer Affairs". Ask the bureau to please send you a copy of
your credit report. State that you have enclosed proper identification such as your Social Security number or a utility bill or even a copy (NOT THE ORIGINAL) of your driver's license. Anything which will prove you are
who you are. Enclose a check or money order for the cost of the report if so required. You can find out what the charge is by calling them. IN ALL CASES, sign and date the letter. And KEEP A COPY OF IT!
YOU MUST GET ALL THREE REPORTS!
Why? Because all three credit bureaus have different computer systems and what's in one's files may not be the same in another's files. In
addition, bear in mind the reason you are checking these files is because you think there may be inaccuracies contained within them. You have good reason to think this: one out of four people with credit files may
contain some inaccuracies.
One reason for this discrepancy is because the credit bureaus depend upon the information given to then by the merchant or lender from who you obtained credit
originally. If that report is not accurate, then neither will your file be accurate. BECAUSE the credit bureau DOES NOT CHECK the merchant or member information for accuracy. Strange world, isn't it?
If you have been rejected for credit, just call the credit bureaus and tell them you want to find out why you were rejected. If you are a resident of Georgia, Maryland, Vermont, Colorado or Massachusetts,
you may also qualify for a free report. For any other reason stated above, just call and tell them what your problem is and ask to have a free credit report.
WHAT ARE THE THINGS WHICH CAN GIVE YOU A BAD CREDIT REPORT?
The following will stand out like a sore thumb if they are in your credit file:
1. Foreclosures
2. Bankruptcies
3. Tax liens
4. Late payments
5. Student loans
6. Repossession
7. Information which belongs to someone else
8. Collection agencies
9. Paid collections
10. Charge offs
11. Charge accounts at stores
12. Judgements ( both paid and unpaid)
13. Things already taken care of but which still appear on your file
14. Unnecessary Inquiries*
Why do we highlight "Unnecessary Inquiries? To alert you to the following fact. Every time you ask for a new credit card or credit at a new place, there will be an inquiry made to the
credit bureau and it will be noted in your file. Why is this bad? Too many of these will make a merchant ask why you are doing this. Is it because you are desperate in trying to get credit? In any case, the merchant
will probably back off and not give you the credit you asked for. So be careful - don't make unnecessary credit attempts, such as shopping around from one credit card issuer to another, hoping by accident one will
finally accept you.
Some credit repair outfits (or clinics as they like to call themselves) will tell you that these inquiries can be removed and they're just the ones who can do it.
NONSENSE! Nobody can remove inquiries unless they can prove fraud. Again, here time tells the tale.
Six months has to go by before lenders or merchants will ignore these inquiries. By that
time you have had time to do some removing of your own.
By the way, why would you want a credit card at this time anyway? Haven't you already proven to yourself that you have a difficult time
controlling your spending? Better wait until you get some discipline under your belt before you think of credit cards
The following is based on information taken from H L Saffell's book: "REPAIR YOUR CREDIT WITH LITTLE KNOWN SECRETS the scam artists
hope you don't find out about".
WHAT CAN YOU DO ABOUT BILL COLLECTORS?
Or the collection agencies as we call them. If you are one of those unfortunates who must deal with these fellows bear in mind that preparation is the name of the game. You must prepare yourself for their
tactics and make a case for the settlement you wish to make. Bill collectors only get paid when they collect; so the more they can get the more they earn. Here's where you have to stand firm and not let them get you to
repay the entire debt.
Your weapons for dealing with the collection agency is to state that you want to be fair to all of your debtors, but you only have so much money to give to each. And if
all of them decided to use a collection agency to get their money you might be forced into bankruptcy. That last word will get their attention.
If you need to deal with the bill collector,
then address him courteously, pointing out the reasons why you were late and the settlement you wish to make. You must sound convincing to get his attention. If the bill collector refuses to go along with your idea,
make sure you leave him with a good taste in everyone's mouth. That is, you've treated him with respect and appreciate the reception he gave you.
If you have his supervisor's name, you can
write a letter of commendation which will shortly be followed by a Letter of Restrictive Endorsement. Compliment everyone and include a cashier's check for 50-60% of what you owe. Type the terms on the check, such as
the negative entry (mention the entry by name) will be completely erased from your credit file. If they accept and the check is cashed, you now have proof that you may, if needed, show to one and all.
To make certain the item has been removed from your record, contact the credit bureaus again with a letter of dispute and follow through in the usual fashion.
Suppose the
collection agency won't accept the above cashier's check. Suppose the collection agency says they are going to take you to court to collect. Then your next recourse is to work out a payment plan which doesn't last more
than 12 months. Tell the bill collector (collection agency) that you'd much rather settle the matter before it goes any further. Both of you can avoid a lot of trouble by making a reasonable settlement.
Still the bill collector is not satisfied. He wants a big percentage of the debt paid immediately with a payment plan to follow. Don't believe it. Just repeat your offer of reasonable payments over a 11 or
12 month period. Don't ask for any longer than that because the creditors will grow uncomfortable and may not approve it.
Why make an offer at all? You want to prevent your having to apply
for bankruptcy. What's more, the creditor will be happier to deal with a payment plan which pays off the debt. He gets nothing if you go bankrupt. And a bankruptcy on your record will be the worst thing you can do.
But the bill collector still remains dissatisfied and begins using questionable tactics and threats on you. In this case contact and write one of the following offices of the Federal Trade
Commission:
Federal Trade Commission, Washington DC 20580 202-523-3598 Federal Trade Commission, 150 Causeway St, Boston, MA 02114 617-223-6621 Federal Trade Commission, 915 Second Ave,
Seattle, WA 98174 206-442-4655 Federal Trade Commission, 26 Federal Plaza, New York, NY 10278 212-264-1207
These offices are for unsecured debts owed to businesses other than banks. You can
also write to the Attorney General of your state. Tell then both, in writing, how the bill collector treated you. You'll get some action then. You can also get action against bank bill collectors by contacting the
Attorney General's office of your state.
Bill collectors are not allowed to harass you if you don't want them to do so. The Fair Debt Collection Act gives you the right to write the
collection agency for whom the bill collector works and tell them to stop bothering you. You usually use this right when things get out of hand. You have the right to:
1. Stop all future
collection attempts. 2. Prohibit bill collector from calling you at work. 3. Prohibit late calls to your home at night. 4. Make certain the money you do pay goes to the debt you want paid.
The letter must contain material which relates to your ability to pay, when and what you will be able to pay. State the abuse the collector has inflicted on you and your family and make a specific demand that the
collector stop contacting you. You must be tough and stick to your guns at this point. Don't let them get away with it, The law is strictly on your side!
All of the above will work on the
bill collector but not the original debtor. The law mentioned above protects you only from the bill collector being overly zealous. The creditor can take up contacts with you without worry. Normally he doesn't do this
when the collection agency tells him they couldn't collect. He just files it away for the future. And usually forgets about it. Unless one fine day he sees you driving an expensive car.
The following has been taken from information based on
that found in H L Saffell's book: "REPAIR YOUR CREDIT WITH LITTLE KNOWN SECRETS the scam artists hope you don't find out about".SECURED CREDIT CARD MARKETING SCAMS
This is a real
goody - and you should see all the sharks who advertise it. You see their ads everywhere, on television, in newspapers, in magazines, even on the internet. And don't they sound convincing? Again, don't you believe it!
You see ads like these:
Bad credit? No matter. We guarantee you both Visa and Mastercard! BAD CREDIT? NO CREDIT? NO PROBLEM! ANYONE CAN QUALIFY FOR A MAJOR CREDIT
CARD!
Sound good? Too good to be true? If you were a banker would you give a credit card to someone with your credit history? Come on, let's get real!
Lets see what the FTC says about Credit Card Scams:
Beware: while secured credit cards can be an effective
way to build or re-establish your credit history, some marketers of secured cards make deceptive advertising claims to entice you to respond to their ads.
Secured vs. Unsecured Cards
Secured and unsecured cards can be used to pay for goods and services. However, a secured card requires you to open and maintain a savings account as security for your line of credit; an
unsecured card does not.
The required savings deposit for a secured card may range from a few hundred to several thousand dollars. Your credit line is a percentage of your deposit, typically
50 to 100 percent. Usually, a bank will pay interest on your deposit. In addition,you also may have to pay application and processing fees -- sometimes totaling hundreds of dollars. Before you apply, be sure to ask what
the total fees are and whether they will be refunded if you're denied a card. Typically, a secured card requires an annual fee and has a higher interest rate than an unsecured card.
Deceptive Ads and Scams
The Federal Trade Commission (FTC) has taken action against companies that deceptively advertise major credit cards through television, newspapers, and postcards. The
ads may offer unsecured credit cards, secured credit cards, or not specify a card type. The ads usually lead you to believe you can get a card simply by calling the number listed. Sometimes the number is not toll-free.
A '900' number service, for which you are billed just for making the call, may instruct you to give your name and address to receive a credit application, or give you a list of banks offering secured cards. It also may
tell you to call another '900' number -- at an additional charge -- for more information.
Deceptive ads often leave out important information.
The cost of the
'900' call -- which can range from $2 to $50 or more; The required security deposit, application, and processing fees; Eligibility requirements like income or age;
An annual fee or the fact
that the secured card has a higher than average interest rate on any balance.
How to Avoid the Scam
To avoid being victimized, look for the following signs:
Offers of easy credit. No one can guarantee to get you credit. Before deciding whether to give you a credit card, legitimate credit providers examine your credit report. A call to a '900'
number for a credit card. You pay for calls with a '900' prefix -- and you may never receive a credit card. Credit cards offered by "credit repair" companies or "credit clinics." These businesses
also may offer to clean-up your credit history for a fee. However, you can correct genuine mistakes or outdated information yourself by contacting credit bureaus directly. Remember that only time and good credit habits
will restore your credit worthiness.
Credit Reporting
If you're considering a secured card as a way to build or re-establish a credit record, make sure the issuer
reports to a credit bureau. Your credit history is maintained by companies called credit bureaus; they collect information reported to them by banks, mortgage companies, department stores, and other creditors. If your
card issuer doesn't report to a bureau, the card won't help you build a credit history.
Actually
what the FTC says about credit cards above is pretty tame compared to what goes on. The so-called "non-secured" card is actually an in-house card. It cannot be used anywhere else outside the issuing company
and its catalog subsidiary. Seldom are your payments reported to a credit bureau - and if they are, the credit bureau places little value in such reports.
Close all credit card accounts which
you are not using or don't intend to use. (Actually, two credit cards at the most are all you'll ever need.) Why close them? Because they show up on your credit record and would be creditors will include the limit
totals on all cards, including the ones you don't use, when determining if they want to extend you credit. These cards are marked "current" on your credit record. You need to WRITE the credit card company and
tell them to cancel the cards and also ask the company to tell the credit bureaus that these items were "closed by the consumer".
