Credit Card Fraud: An Idiots Guide To Prevention
Modern society has created a monster known as credit card fraud. With the considerable use of credit cards, the world has become a playground for the common credit larcenist. But, if you educate yourself on the issue at hand, and learn the steps to take, you can combat this momentous problem.
Some credit card perpetrators have started combing through garbage cans searching for your credit card data. If they discover credit card receipts or credit card account statements, they are in luck. The thieves then use the credit card numbers to purchase items on the internet. Some even produce a new credit card using your account number and all of your credit information.
This type of credit card fraud can easily be prevented. Before you throw any credit card receipts or statements containing your account number away, make sure they are completely destroyed. This will assure that your credit card information can never be discovered and reused.
Checking your credit report and credit card statements monthly can ensure that no unauthorized charges have been made to any of your credit card accounts. If you come across something curious in one of your credit accounts, you should act at once.
Call the credit card company immediately and report that someone has stolen your credit card or credit card number, and you would like this card canceled without delay. Invalidating the card will assure that no further charges can be made to your account and no additional financial damage can be done to your credit.
Your credit cards should be with you at all times for safe keeping. While most people carry their cards in wallets, it is actually better to carry them in a separate compartment. An example would be a small container, a mini pouch or a business card holder.
Always stay alert with each credit card transaction you make. Be sure to get your card back immediately after the purchase is completed. Not all credit thieves are after your actual credit card; most just want your credit card account number to finance their illicit business deals.
Credit card fraud has become quite abundant on the internet. There are several things you should avoid when using a card online. Never enter your credit card number on websites that are hyperlinked through an email. This screams fraud. This will most likely lead you to a scam site created to steal your credit card information.
You should be very cautious when giving your credit card number to online companies. If at all possible, try to only supply your number when only critical. If you do need to make a purchase online, there a payment services now offered that permit you to purchase an item without having to give your credit card information to an unauthorized third party.
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Taking A Stand Against Identity Theft
The first and most important thing you can do to become better prepared and protected against identity theft is to lose the attitude that "it could never happen to you". Identity theft is much more common than most people believe, and the belief that it won't happen to you leaves you much more vulnerable than someone who actively takes steps to protect themselves against the crime. Identity thieves are able to obtain information they need to assume someone else's identity- often with little effort.Take Care to Protect Personal Information
Do you shred information before you throw it away? The easiest way for identity thieves to gather information to assume your identity is through the paperwork you throw in the trash. You may as well hand a thief your credit card, social security card and driver's license if you're throwing out (without shredding) credit applications, resumes, credit card and utility bill statements.
Sometimes thieves will intercept your incoming or outgoing mail by taking items from your mailbox. With enough information, perhaps gathered through various bank statements or credit card applications, the data can be pieced together by a thief to use your name to apply for loans and credit in your name. You may want to consider mailing documents from a post office mailbox rather than a personal mailbox- the little red flag you put up on your box to signal your mail carrier that you have mail waiting for pick up is also a signal for identity thieves of a potential victim!Preventing Identity Theft
Other than shredding paperwork prior to throwing it away, there are a few other methods you can use in order to protect yourself against identity theft:
Cut credit cards into tiny pieces before throwing away, even if the card has expired, and throw the tiny pieces into more than one trash bag so even if one bag is found the card could not be put back together.
Report any stolen or lost credit cards immediately.
Destroy receipts, tax information, credit card applications, mortgage information or cancelled checks before throwing away- and keep such documents in files in a locked file cabinet inside your home. Don't rule out the possibility of the babysitter or housekeeper or guests taking paperwork lying around your home.
Keep a close eye on your credit reports and credit card statements to watch for anything out of the ordinary, or transactions you know you didn't make. Investigate anything suspicious immediately.If You Are a Victim of Identity Theft
Victims of identity theft often spend months or years trying to recover from the crime. Not only may it cost victims money, but their credit score is going to be ruined and will take work and time to repair. While the three major credit bureaus do have policies for fixing credit scores and reports after identity theft crimes have occurred, it does take a long time for the errors to be corrected and repaired.
Before the report and score is corrected, the victim is going to have a difficult time obtaining any sort of financing (from credit cards to student loans to car loans or mortgages). In some extreme cases, identity theft victims are even arrested for crimes they didn't commit.
Being a victim of identity theft interrupts your life. It is far easier to take appropriate steps to protect yourself than it is to repair your credit reports and credit score after your identity has been stolen.
What, in the name of Credit Crunch…?
What, in the name of Credit Crunch…?
By Ngaire-Elizabeth Pratt 10/05/2009
This is how the credit crunch means nothing to me. Glorious 2008. The world was my lobster and I was Queen Crab. A superbly enjoyable role within a large Publishing company coupled with a part-time work from home job, combined with singing in a local band provided the basis for a thriving social life and endless (useless) materialistic commodities. At 24, I was living in the greatest city in the world, and presumed myself indestructible. The words ‘slump,’ and ‘depression,’ were hollow phrases a world away, I was untouchable.
This is how the credit crunch has demolished me. 2009 brought with it hardship, fret and privation. After losing my permanent job, running out of free-lance work, and having all gigs cancelled, I came crashing down with an almighty wallop. It didn’t just rain; it bucketed down with acidic blizzards torrentially pouring on my soul. I went from being the happiest 24 year old in England to overwhelmingly dejected. Having always been an exceptionally hard worker (as my references will support…) and being a rare beast who enjoyed working, it shocked my whole being to go from three jobs to unequivocal unemployment. I have illogically become unemployable.
How the credit crunch rejected and dejected me. When discussing with peers, their, ‘something will come along soon,’ and, ‘you and two million other people,’ remarks only push the salt deeper into the wound. Realisation comes with the hardest slap in the face, recognising a position that two years ago would have been handed to me on a plate is now so highly contended that candidates with 10 years more experience and 10 more qualifications are competing. The job market has become obsolete for a 25 year old graduate with half a CIPD and a years marketing experience. What use am I? On the recessional land fill, my career and future decomposing faster than a half-eaten apple.
How the credit crunch crept up on me. I have strained previously strong friendships through my constant refusal of invitations, my consistent monotonous drones about ‘my situation’ and my general loss of optimism.
Of course I have intelligent friends who mystically foretold the future, who hoarded their spare income whilst I frivolously squandered my minimal surplus remuneration on ‘socialising.’ And shoes. But at 25 and imperishable, not only does the ‘rainy day’ not require consideration, it is inconceivable. Yet, aforementioned intelligent friends are now shrewdly investing in the distressed property market, procuring bargain portfolios and preparing for retirement at forty.
How the credit crunch fooled me. I consider my degree a lie. The labour government broke fee increase promises, devalued the worth of the degree and scammed us into loan agreements that deceived us. Realising the (de-)value of the degree, post-graduation, I endeavoured to prove I was ‘better than average’ (the 50% of people being pushed into higher education) by undertaking a self-funded professional qualification. Check mate. Without significant experience I’m unemployable. Over-competent; under practised. The classic catch-22. I would be decidedly indebted to the individual who is able to provide resolution. I am a broken spirit, applying for roles with titles such as ‘envelope stuffer’ post rejection from white-collar posts citing my inexperience, and rebuffed from blue-collar roles claiming my over-qualification- they (somewhat appropriately) fear training will be wasted on a candidate who will abscond at the first prospect of career progression.
This is how the credit crunch has disheartened me. I fear it is pilfering my bliss, darkening my shadows and gnawing at my soul. My foreseeable future and definite present, is awash with trawling the jobsites everyday, buying papers every week, applying for anything with a vague hint of apposite, and making the fortnightly ‘walk of shame’ to the jobcentre to join the two-million other citizens draining the already stretched benefit system.
This is how the credit crunch has denigrated me. I would give my right arm to be back in that dead-end office job with the unreasonable tyrant of a foul-mouthed boss and extrovertly perverse colleagues. This is the credit crunch, devaluing myself is a necessity, I am no longer ‘worth’ what I once was. Depression in every sense of the word.
This is how the credit crunch has deprived me. Begging my parents for ‘help’ with the rent, who imprudently believed on my graduation day that the ‘bank of mum and dad’ would go the same way as Lehman Brothers and close forever. Little did they predict I would end up on the recession scrap heap soon after, with rent contracts and bill commitments that must be satisfied.
This is what the credit crunch means to me. A twist in the ‘perfect relationship’ I’ve enjoyed since my teenage years, now reduced to quarrels over money (or lack thereof) and resentment on my behalf for being the cause of the despondency and antipathy on his behalf for my declining self-assurance. The ‘mortgage’ we had in our dreams now a distant memory from when the future looked promising, wrestled from our clutches like the proverbial sweet from the baby, with all too much ease.
This is what the credit crunch has done to me. I have turned into a ‘grumpy old woman,’ unemployed with rapidly depreciating self-worth and hopes declining by the day.
This is how the credit crunch has humbled me. No longer do I look down on people less fortunate than I once was, I am now amongst the multitude being looked down upon. I finally realise how it is not a choice, but a series of unfortunate results. I finally recognise in the face of desperation turning to the most unpalatable depths is often through necessity. I finally admire those willing to go to any lengths and using any means possible to ensure they can provide for their families. I finally truly understand my fortune in terms of family and friends, health and education. I finally understand the reasons for faith.
This is what the credit crunch will do for me. I refuse to succumb to the trap of unemployment. I will fight harder, I will communicate better, I will not allow myself to be a victim of the banks greed. I will not lose my sparkle. I am somebody. I will stand up and be counted. I will emerge victorious and admired, will be an exemplar for the recession refugees, I will not rest until I achieve my potential.
I just need to get a job first.
This is how the credit crunch will destroy me.
© 2009 Ngaire-Elizabeth Pratt
Go Online For Information On Your Credit Score
The good thing about the twentieth century is the vast advancement in technology specifically with the use of computers. At this time and age, people don't have to worry about almost anything.
One can shop, do business, learn and enjoy the world, communicate with family and friends even at the opposite side of the globe, and make new acquaintances using the computer.
There is no need to leave the comforts of one's home, no need to tire and outdo oneself in borrowing references, and definitely no need to wait for long periods of time for letters and business correspondence to arrive, like knowing your recent credit score in the market.
Consumers can now just access the internet and get the latest updates on their credit reports for no fees and less effort. And a lot more can be obtained by being online.
Other related articles on credit can also be downloaded and looked into via the internet. Some of which are the following: Credit Reporting Bureaus, Guide on Credit Scoring, Credit Profiles, Inquiries on Credit Ratings, Tips on How to Improve One's Credit Score, and so on.
Through online surfing, the consumer can also be given email alerts on any alteration to his or her credit score. Their credit reports and scoring can be monitored daily by just being online everyday.
The consumer can also avail the unlimited services offered by all leading credit reporting bureaus though online. All credit reporting bureaus have their own web sites for consumers to easily locate them.
However, consumers must also be alert and check those credit reporting agencies that offer free credit reports via online. Considerations must be made before availing the services being offered by these online credit reporting agencies.
Many online credit reporting agencies who offer free credit reports and credit scores turn out to be just scams. They might put on the market your home and email address that in turn will send your home junk mails or might hack into your personal profiles online.
Others might offer you programs like free trials and after which will require you to pay for not remembering the cancellation of the program.
Consumers can look for legitimate online credit reporting bureaus which offer their services for a small fee.
They must really do a careful background checking on a target credit reporting agency so as not be lured into a hoax.
When online, consumers can readily get in touch with the concerned credit reporting agencies to make appropriate corrections on their credit score and credit reports to make sure that the creditors and lending agencies are viewing the latest payment history and most accurate personal information in your credit profile
Most lending agencies go online if they want to keep abreast with their client's credit profiles. In this manner, they can also save their resources for much bigger and important financial transactions.
Consumers who are not in a hurry to get their credit scores might just consider ordering it via the usual mail. It might take quite a long period of time, but consumers are assured that their personal records like credit reports and credit history are kept very private.
And to erase the worry of low credit scores and to avoid getting into trouble with your creditors and lending agencies, settle all your accounts on time.
WorldCreditPages.com,
WorldDebtPages.com,
WorldLoanPages.com and
WorldMortgagePages.com
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Understanding Credit Counseling Services
Credit counseling services have helped millions of people break the debt cycle. If you’re considering counseling, review these frequently asked questions to learn more about the credit industry and its practices.
Most are considered tax-exempt non-profit organizations, however not all of them are. Before you sign up with a service, verify that it’s not more interested in turning a profit than it is in helping you. Start by checking them out at the Department of Justice’s bankruptcy website and the Better Business Bureau. Remember, being non-profit doesn’t automatically make them legitimate.
For the most part, they can help you resolve any debt situation, but the various options aren’t available for all debts. Mortgages and student loans usually can’t be settled or entered into debt management programs. Student loans can be consolidated, however. You may also be able to reduce car loan interest through debt consolidation. Medical bills and credit card bills are the easiest for credit counselors to deal with.
Most services are actually funded by contributions they receive from creditors. Many also receive a portion of the funds you pay into a debt management program. Review the organization’s website for a complete disclosure of their funding sources. If you can’t find one and they won’t provide the information to you, consider using a different service.
Fees vary, depending on the services you need. The initial consultation should cost no more than $50. If you can’t afford to pay, many will provide some services for free. A debt management program often includes a one-time setup fee or a monthly maintenance fee. Debt settlement frequently includes high fees. Debt consolidation may involve a smaller fee, or you could attempt to consolidate on your own. Educational materials are often available free. Money management courses may be free or offered for a small fee.
They must be licensed to operate in your state. Most are also certified to provide credit counseling. Before signing up with a service, ask if they’re licensed in your state and if certifications are current.
How Do I Know If I’m Being Scammed?
The fear of being scammed is one factor that keeps many people away from credit counseling. Most services are completely reputable and interested in helping you. As with any industry, there are a few bad apples, though. You may be dealing with a scammer if they:
* refuse to send you any information before you meet with them
* refuse to provide a written list of fees
* pressure you to sign-up that day or risk losing their great offer
* recommend a debt management plan before reviewing your finances
* offer to settle debts for pennies on the dollar
* offer to repair your credit for a fee
* recommend that you stop paying on your debts
* say they can cancel student loans or secured debts like mortgages
* don’t provide budgeting or money management education.
Although it’s important to choose a credit counseling service carefully, you shouldn’t let fear or shame keep you from calling them. A good credit counseling service can help you resolve your debts and learn how to avoid creating new debt. If you’re not sure how to tackle your debts, contact a service for more information about your options.
For more articles on Credit Counseling, visit: http://www.bills.com/credit-counseling-services/
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Eliminate Bad Credit
This Article is written because it has come to the attention of this Author that too many people are being scammed out of their hard earned money trying to restore their credit. You do not want to try to restore by paying a debt or trying to cancel a debt. You want to Crush A Debt. This will Eliminate Bad Credit. You want collections and charged-off debts to disappear forever.
Restore credit is a term that many use. These companies that promise this will charge you an upfront fee, then a monthly fee for their services. What they do is write a common letter, that anyone can get a copy of, and send it to the credit reporting companies. This letter simply states that the bad credit item is not correct, or not your debt. They write this letter month after month hoping the reporting agency will get tired of hearing from them and cancel the debt. This typically does not happen. What does happen is, you get charged the fee every month. You will not Eliminate Bad Credit this way.
Simply writing a letter requesting a debt be removed is not a successful way to eliminate debt. You cannot just remove a debt, you must Crush A Debt totally from your record.
If you hire a company to eliminate bad credit from your report and they succeed, it is not permanent. This debt will return. Collection companies like to sell bad debts to other companies. As soon as your debt is removed, it is sold and within a couple of months placed right back on your report again.
There is only one company, that this Author has found, that will totally eliminate bad credit from your report and collection or charged-off debts disappear forever. You do not want a company to just write a letter to remove a debt, you want a company that will crush a debt. This is not a .org or a .net company, this is a typical .com company.
Feel free to contact this Author with any questions concerning you bad debt or how to crush a debt.
Lee Selders has been involved in the Internet for over 10 years and has achieved extremely high ratings with all associated aspects. Feel free to contact with questions at dglhomebiz@gmail.com
Lee Selders produces success. Always consult a person with this type of vast experience before you start or expand your home based business.
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There is No Easy Way Out of Debt
If you are in debt, you are probably hoping that it will magically disappear. I hate to be the bearer of bad news, but that just isn't going to happen. Forget your dreams about the lottery and the ads that tell you it can be quick and easy. It just doesn't happen that way.
There are many companies out there just looking for consumers who are desperate to get out of debt. They promise to legally eliminate your debts, or even to cancel them. But they aren't telling you the entire truth.
The ads promise to eliminate your credit card debt. Many say that they will help you fight the legality of your credit card debt for a fee, which is charged to your credit cards and then contested by the company.
The sales pitch will be excellent. The company tells you that there is a legal basis for how consumers can legally eliminate their debt. They even quote several laws, but the laws have nothing to do with rendering credit card debt illegal. Many companies will tell you that the credit card company's contract with you isn't legal. However, it is. The company is just trying to scam you.
Some companies promise to show you how to force your credit card company into legal arbitration in order to get your debt fully discharged. However, they will tell you to stop paying your debt in order to do this. By not paying your debt, you are ruining your credit history. You can forget about getting credit in the future. You may end up in arbitration or possibly court, but you will not win. You will pay back every cent of your debt, plus the default interest, the fees paid to the debt elimination company and the legal fees and court costs of the credit card company.
A few companies will prepare you a legal sounding document called a "Bond for Discharge of Debt." They tell you that when the credit card receives this with your minimum payment, that they've agreed to eliminate your debt by cashing the payment. This is not true.
The companies that put forth these scams are after one thing -- your money. They will charge you high fees and you will get nothing in return. In fact, you could destroy your credit and end up owing much more than you started with.
If you borrow money, you have to repay the money. No company can eliminate your debt. Your credit card debt is not illegal. Never respond to ads related to your debt. Legitimate debt management companies and counselors will not advertise this way. Always know exactly who you are doing business with before you hand over any money or personal information.
If you are in debt trouble, take the time to educate yourself on the proper way to manage and eliminate your debt. It isn't quick and it does take some work, but once you start, you will be surprised at how it becomes a part of your daily routine. Debt management is an essential part of handling your finances in today's world. Take the time to learn how to eliminate your debt wisely.
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Credit Repair: Avoiding Scams!
The Credit Repair Professional
The credit repair business requires a clear grasp of the interaction of many factors. Credit bureaus, creditors, and collectors are each regulated under their own set of federal laws. There are state laws that may supercede the federal laws. In the background of all of this activity is Fair Isaac and Company that formulates your FICO Score based on the makeup of the information on your report. Credit repair professionals must have a working knowledge of all of these factors and more.And the Not-So-Professional
True credit repair professionals provide an incredibly valuable service. But there are also those that misrepresent themselves and the services they offer. These deceptive practices will waste your money, and in some cases leave you worse off than ever. Here is our list of the top offences…Authorized User Alert
Some so-called credit repair companies have been brokering "authorized user" status on credit card accounts. This involves making the customer an authorized user on someone else's credit card to boost the customers FICO score. This is not illegal, but you should be aware that Fair Isaac and Company, in response to this practice, has eliminated authorized user benefits from the new FICO scoring model. According to Fair Isaac, one of the three credit bureaus will begin using the new scoring model in September 2007. The other two credit bureaus will adopt the new model by mid-2008.The New Identity Trap
There is a busy little credit repair sub-culture that offers to help you establish a new identity by applying for an Employer Identification Number (EIN) which they suggest that you use in place of your Social Security Number. This amazes us! And it is a serious crime that could put you in prison. Steer clear.Promises Promises
Watch out for companies that guarantee results such as a specific increase in your credit scores in a specific period of time. Professional, reputable credit repair companies can produce dramatic results! But given the fact that there is no way to predict the responsiveness of the credit bureaus, creditors, or collectors it is inappropriate to make such promises, and a sure sign of bad business.The One-Dimensional Credit Repair Problem
Beware of credit repair companies that offer credit bureau disputes, and nothing more. They are most likely using software that simply pumps out dispute letters - repeatedly. This one dimensional approach to credit repair is certain to produce disappointment. Effective credit repair requires the skill to challenge the bureaus, creditors, and collectors alike; all with the knowledge and understanding of the legislation that governs them, and a grasp of how each change in your report can affect your FICO scores.Power Corrupts
I’m going to stray a bit from the category of credit repair scams and touch on two of the more egregious offenders in the credit reporting industry. Many people mistake size for honesty. Power can corrupt, and the journey to the dark side is often led by corporate attorneys who constantly test the limits of consumer’s tolerance. Credit repair can be tricky enough, but getting hoodwinked by the credit bureaus can be downright discouraging. Here are offenders that we encounter on a daily basis. False Credit
Every day untold numbers of consumers go to TransUnion's "True Credit" website and pay for what they believe to be their credit scores. What they get are deceptively named "TrueCredit" scores which vary significantly from the FICO scores used by lenders. Here is the (almost impossible to find) small print from the TransUnion website. "TrueCredit is not connected in any way with Fair, Isaac and Company; the credit score provided here is not a so-called FICO score. The credit scores of TransUnion may not be identical in every respect to any consumer credit scores produced by any other company."Not Free Credit Report
Are you starting your credit repair effort? You can get all three of your credit reports for free, one time per year, from AnnualCreditReport.com. Don’t be fooled by Experian's freecreditreport.com website! Here is the fine print: "When you order your free report here, you will begin your free trial membership in Triple AdvantageSM Credit Monitoring. If you don't cancel your membership within the 30-day trial period, you will be billed $12.95 for each month that you continue your membership." And it may not be so easy to cancel. The Office of the Attorney General of Florida lists the following issues in their investigation of Experian: "Deceptive advertising, misleading domain name, and failure to honor cancellations in violation of Chapter 501, Part II, Florida Statutes (Florida Deceptive and Unfair Trade Practices Act)."
Copyright © 2007 James W. Kemish. All Content. All Rights Reserved.
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Choosing the Correct Debt Management Service For You
When going about choosing a debt managment service, there are probably several different questions that might be running through your mind as you endeavour to get on top of your finances. If you're able to see past the fear of being in debt, then the questions you should be asking yourself are, which companies are not scams? How much are the fees? Are there hidden costs? How do I check out the authenticity of a debt management company? Can I cancel at any time and what will my payments be? What if I can't pay?
Here are a few tips on how you can help keep yourself from being scammed and paying too much.
First and foremost, you should look to find any charities or government organsisations that offer debt advice for free. For example in the UK, The Citizens Advice Bureau [CAB] would be a good port of call. The CAB offers a phone, online and a drop-in service. The CAB is manned with helpful staff who will do what they can to advise you on your best course of action.
You can find details of the CAB in your local telephone book as well as other companies that can help you with your debt. Put together a list of potential companies that you might do business with. From here, use the internet. Type the name of the company in and look at the results. You should also look into the FCC and the BBB to see if the companies are legitimate, non-profit and complaints that have been filed against them. If you do not have the internet, the public library usually has internet connections available to the public. You may have to join the library though or take some ID with you. Check some of the consumer websites in your country and find out what others are saying about local or national debt management companies.
Debt management is not binding as is filing a bankruptcy notice. At any time you can discontinue the agreement and begin to work on your debt without any assistance. However, when you do agree begin working with a debt management company, they will begin by doing a few things for you. First, they will call your creditors and notify them of your financial hardship. From here, they will make arrangements to pay a smaller amount of money. Usually, he or she will ask for a smaller interest rate or even remove the interest rate altogether. It should be noted that the debt management company will most likely only deal with your non-priority debts. Also, most debt management companies do not give benefits advice or financial advice so you may lose out on important information about your finances. If you're fortunate enough to have a family member or a close friend who is a financial adviser then seek their advice as soon as possible.
In most situations the creditors prefer to work with the debt management companies, simply because they are more apt to make the payments on time every month. They are also more willing to lower your payments when you are working with a debt management company.
After the debt management company has completed the negotiations with your creditors, they will then give you a new monthly amount to pay. This will be a lower single payment each month. This payment goes directly to the debt management company. Usually, they require a certified check or to have an automatic withdrawal out of your bank account.
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Credit Report & Repair Scams
Credit Report & Repair Scams Newspapers, radio, TV and the Internet are filled with advertisements that offer for a fee to erase accurate negative information in your credit file. The credit repair scam artists who run these ads can't deliver. Only time, a deliberate effort, and a plan to repay your bills will improve your credit history record. This section is designed to help you understand credit reports and credit repair scams. Credit Reports Does your credit report accurately represent you? A recent study conducted by the Public Interest Research Group (PIRG) found over 70% of credit reports contain errors. Among the principal findings of the report were the following: * Twenty-nine percent (29%) of the credit reports contained serious errors that could result in the denial of credit." * "Serious" errors included false delinquencies, public records or judgments that belonged to a stranger, or credit accounts that did not belong to the consumer; Seventy percent (70%) of the credit reports contained mistakes or errors of some kind, also including the following:
* Forty-one percent (41%) of the credit reports contained incorrect personal demographic identifying information; Twenty percent (20%) of the credit reports were missing major credit cards, loans, mortgages, or other accounts that are critical to demonstrating consumer credit worthiness. Consolidate debt your debt now free -- quote now! One of the first steps to credit repair, is understanding credit reports. When applying for mortgages, home loans and refinances, one of the most important factors in determining whether or not you will be approved is your credit. This is true for other important factors as well, such as obtaining lower interest rate auto loans and credit cards. Good credit can open many doors. If you have had credit issues in the past, or are currently in a situation that will affect your credit, be prepared to address these issues upfront. The mortgage industry has its own language when it comes to your credit report. Mortgage lenders get their name from the grading system they use. Items that determine your credit rating (A+ to D-) are payment history, amount of debt payments, bankruptcies, equity positions, and credit scores. Credit scores are also known as "FICO" scores, and are used by the mortgage industry to determine credit risk. The higher the credit score, the better the credit risks. FICO stands for Fair Isaac Company, the company that created the original scoring system. Each credit bureau has its own unique system that allows them to offer a score based solely on the contents of the credit bureau's data about an individual. A numerical score at one bureau is the equivalent of the same numerical score of another. For example, a score of 700 from Experian indicates the same creditworthiness as a score of 700 from Trans Union or Equifax. However, the calculations used to determine these scores are different for each bureau. FICO scores range from 375 to 900 points. A score of 650 or above indicates a very good credit history. However, lenders do not necessarily give the same value to a particular credit score, and they do not necessarily use credit scoring! FICO scoring places a value on the types of accounts you hold, as well as your credit history. The formula that determines your scores, however, is not disclosed to the consumer. The 5 most important factors to determining your credit score are: * Your payment history * The amount of outstanding debt you have compared to your credit limit * Your credit history * The types of credit you use * Negative information Remember, FICO scores range from 375 to 900 points. A score of 650 or above indicates a very good credit history. Credit Repair Scams You've seen it in newspapers, maybe even heard it on the radio or television -- Erase accurate negative information in your credit file! -- The credit repair scam artists who run these ads can't deliver. Only time, a deliberate effort, and a plan to repay your bills will improve your credit record. This section is designed to help you understand the two top credit repair scams that are circulating newspapers, television, magazines and radio. Credit Repair Scam #1 - File Segregation If you filed bankruptcy, you may be the target of a credit repair scam called "file segregation." In this scam, you are promised a chance to hide unfavorable credit information by establishing a new credit identity. That may sound like a good idea but, file segregation is illegal. If you use it, you could face fines or even a prison sentence. Credit Repair Scam #2 - New Credit Identity If you have filed for bankruptcy, you may receive a letter from a credit repair company warning you about the inability to obtain credit cards, personal loans, or any other types of credit for 10 years. For a fee, the company promises to help you hide your bankruptcy and establish a new credit identity to use when you apply for credit. These companies also make pitches in classified ads, radio, TV, and the Internet. When signing up for the service you will be required to pay a fee and may be directed to apply for an Employer Identification Number, commonly referred to as an EIN, from the Internal Revenue Service (IRS). Typically, an EIN is quite similar to a social security number and is used by businesses to report financial information to the IRS and the Social Security Administration. After you receive your EIN, the credit repair service will tell you to use it in place of your social security number when you apply for credit, inform you to use a new mailing address and obtain additional credit references. That may sound like a good idea but, using false information is illegal and considered fraud. If you use it, you could face fines or even jail time. Credit Repair Company's And False Claims Credit Repair False Claim #1: You will not be able to get credit for 10 years. Each creditor has its own criteria for granting credit. While one may reject your application because of bankruptcy, another may grant you credit. And, given a new reliable payment record, your chances of establishing additional credit could probably increase as time passes. Credit Repair False Claim #2: The company or "file segregation" program is affiliated with the federal government. The federal government does not support or work with companies that offer such programs. Credit Repair False Claim #3: The "file segregation" program is legal. It is a federal crime to make any false statements on a loan or credit application. It is a federal crime to misrepresent your Social Security number. It also is a federal crime to obtain an EIN from the IRS under false pretenses. Further more, you could be charged with mail or wire fraud if you use the mail or the telephone to apply for credit and provide false information. Worse yet, file segregation likely would constitute civil fraud under many state laws. Your Rights Under The Credit Repair Organizations Act This law prohibits false claims about credit repair and makes it illegal for these companies to charge you until they have performed their services. It requires that companies tell you about your legal rights. Credit repair companies must provide this in a written contract that also spells out just what services are to be performed, how long it will take to achieve results, the total cost, and any guarantees that are offered. Under the law, these contracts also must explain that consumers have three days to cancel at no charge. Finding Help for Credit Problems It's a good idea to try to solve your debt problems with your creditors as soon as you foresee or realize that there is a financial problem. If you can't resolve your credit problems yourself or need additional help, contact debt-consolidation-Kimberly.com We are a full service debt consolidation organizations with clients nation wide that counsels and educates individuals and families on debt problems, budgeting and using credit wisely. We work directly with your creditors to help resolve your debt problems by negotiating a repayment schedule that is affordable for you and acceptable to the creditor.
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