The Credit Repair Blog

I logged into my True Credit account for my daily pull and was greeted with a quite unwelcome surprise. About half of my positive tradelines had disappeared. I was aware that daily pulls often caused peoples files to split I never thought it would happen to me.For those of you who don’t know what a split file is let me explain it as simply as possible. Every individual with a credit file takes up a designated amount of space on Transition’s vast collection of computers. As you may have seen when looking at your report, every time you pull your credit it is noted towards the end of the report. Unfortunately too many of these cause a credit file to exceed the amount of space designated by the computers at Transunion. When this happens the file is split into two smaller files. Unfortunately you have no way of knowing which version a potential creditor will see and it more than likely leads to a decrease in your score. Bad News.I called the good folks at Transunion this morning and spoke with the Special Handling Department. I was assisted by a friendly rep named Anne who assured me that the file would be merged and fixed before the end of the week’ most likely in a couple of days. I’ll post about it just as soon as I get a resolution.

I’m guessing most of you are familiar with CreditBoards.com. If not stop reading now and get over there immediately. It’s becoming increasingly rare to find a collection of forums with a true sense of community but that’s exactly what you will find on their site. Members share advice, tactics, and most importantly, support. I first found this site a couple years ago when I was feeling really down about my credit situation. They offered the needed support and advice that has allowed me to turn around me credit profile and scores. I really can’t recommend them enough. Be sire to visit, become a member, and participate in the discussion.

Yet another reason to opt out.

I’m sure it won’t come as a big surprise to most of you but credit reporting agencies make a good deal of money from collection agencies. Experian even advertises it on their site. With a suite of services available Experian assists in locating and collecting from individuals around the country. While I suppose this is legitimate it certainly lets you know where you stand with the Credit Reporting Agencies. They are not your friends.

Credit repair scams are everywhere. Unformatuntely many people must be falling for them since more and more seem to be popping up every day. I’ve said it before but it’s worth repeating, there are no shortcuts, people offering an instant fix are just looking to rip you off. After all problems aren’t created overnight so it’s a little naive to assume they can be fixed overnight.

Check out this page from the FTC. Covers the basics and provides consumers with some quality information.

WhyChat is a credit repair veteran and regular poster at CreditBoards.com. The site offers an excellent list of resources in addition to a large collection of sample letters. If you are in any legal trouble it also provides excellent legal information and links to several lawyers. The most valuable data found on the site is information on the statute of limitations in all fifty states. Figuring out a debt SOL is often difficult and the information here is gold. Be sure to visit!

After a pretty big scare my Transunion report seems to once again be in order. As a nice side benefit I got an account that should have been removed a while back dropeed. Seems like they simply ask what tradelines you want reinserted. I listed all of mine that were missing with the exception of a duplicate. Thankfully I have no more negative tradelines but if I did…

One damaging myth that seems to be widely held is that closing old accounts, especially ones with a checkered hsitory, will help raise your score. Couterintuitive as this may be it just flat out is not the case. Age is a very important factor in determining your overall credit score and losing an older tradeline will often do more harm than good. It isn’t unheard of for people to get a negative mark removed only to se their score decrease. In fact I would venture to guess that unless a tradelines comes complete with an annual fee it would be wise to never close any revolving accounts, and certainly not close down ones that are among your oldest.

The Fair Credit Reporting Act allows any individual the right to dispute any and all items found on your credit report that are inaccurate, unverifiable, incomplaete, or misleading. If the credit bureaus (Transunion, Equifax, Experian) can not prove that the details of your reports are indeed acurate, then they must remove the items in  question immediately.
The law also promises that requesting changes is made as easy as possible. Of course the credit bureaus ensure that it is not the case and often make it difficult. It should come as no surprise that that the FTC gets more complaints against credit bureaus than any other type of business. The credit bureaus are primarily interested in protecting their profits, not helping you get an accurate file. Investigating your disputes consumes their time and thus their profits. Credit bureaus often seem to do everything they can to discourage consumers fand generally make things difficult.
All that said I am still confident that the vast majority of individuals can infact repair their own credit. Read the blog, follow the guidelines and ask questions. Before long you too will have great credit.

This valuation party is meant to utilize a case of the gamble you now become to a lender. Many parameters in your report, including length of credit history, number of open accounts, loans, property debts, public records, and various other things are developed to stand a mark betwixt in 300 and 950. There are supplementary scores used by lenders and companies (some of which are formulated by FICO). These additional elements use supplementary information into account. Often a loaner potty utilizes a combination of your credit mark with extra components when finding out your danger. They all employ the same aim, to find out the borrower’s needed gamble. Irrespective of whether the score was generated by FICO or a body based on FICO accounts, they all purchase an industry standard grade. This grade places the borrower in one of three primary classes. Party credit items of 680 or above, are looked at a prime borrower and can prepare no trouble getting a adept interest rate on your document loan, car loan, or credit card. If your credit mark is less than 680, you are sub prime, and potty required pay a tremendously higher interest rate on your loan. resulting 560 is the toughest mark. At least that is how else virtually all lenders learn from it. You can notwithstanding get a credit card, merely you will likely be hit with a huge fee. Close to addition to that your interest rate can required be huge. You can forget roughly most document loans and the absolute majority of number one auto debts at this grade. You may pay lot higher Within higher interest and unneeded fees. A highly using your computer mark can even check you from getting a occupation with many corporations.

This evaluation formulas is intended to acquire a picture of the hazard you currently constitute to a loaner. Various business relationship* in your credit report file, including duration of credit history, sum of open accounts, debts, mortgages, public records, and a collection of other stuff are originated to develop a grade between concerning 300 and 950. There are further variables used by loaners and corporations (some of which are excogitated by FICO). These higher scores return extra data into account. Sometimes a lender can use a combination of your credit grade with further variables when settling your gamble. They all acquire the same objective, to insure the borrower’s compulsory chance. No matter of whether the mark was yielded by FICO or a models based on FICO things, they all buy an industry standard score. This score places the borrower in one of three principal families. Domesticated credit factors of 680 or other, are viewed a prime borrower and could keep close at hand no affliction getting a good interest rate on your advice loan, auto loan, or credit card. If your credit grade is in the image below 680, you are sub prime, and might in all likelihood pay a great deal higher interest range on your loan. below 560 is the most speculative grade. At least that is any way most loaners examin it. You can yet get a credit card, but you might probably be hit with a prominent fee. Just about addition to that your interest range may possible be big. You can forget do you want virtually all advice debts and the majority of up to date automobile loans at this score. You might pay up great deal additional Inside higher interest and unnecessary fees. A pleasantly online score can even end you from getting a job with many companies.