Credit And Repair – The 3 Things You Must Know Before Attempting To Repair Your Credit

Most Americans start out in their adult lives attempting to build good credit. It’s just a natural progression for most of us because we all build credit by financing our first car, renting our first apartment, getting that first Visa card and in many other ways that come with growing as an adult and taking … Continue reading “Credit And Repair – The 3 Things You Must Know Before Attempting To Repair Your Credit”

Most Americans start out in their adult lives attempting to build good credit. It’s just a natural progression for most of us because we all build credit by financing our first car, renting our first apartment, getting that first Visa card and in many other ways that come with growing as an adult and taking on more and greater responsibilities.

Invariably, at some point in many of our lives, we also tend to break down almost anything we have built up and our good credit is not immune to at least some level of personal destruction. I’m not saying that we always damage our good credit intentionally, but the statistics show that nearly 75% of Americans have had at least one derogatory remark on their credit report at some point in their lives, usually within the first 15 years of establishing their first credit account.

The next natural step in the credit process after we have initially built it up, then, for some reason harmed that good credit rating, is of course an attempt to rebuild our good credit that we had established in the first place. Some will go to Credit Counseling services, some will hire credit repair companies and even more will attempt to repair their credit themselves. I, for one strongly encourage people to do their own credit repair for many reasons, however before embarking on such an undertaking, there are at least three very important things that you’ll need to keep in mind when starting a do it yourself credit repair project.

Time is on your side. The most common practice in most credit repair projects is to challenge your negative credit report entries with the credit bureaus or original creditors in hopes that they may be unverifiable and therefore qualified for removal from your credit report. The more time that has passed, the more likely those negative items are to be unverifiable. Additionally, if the attempt at removal fails, the next step is typically to negotiate those debts down to a payoff that is less than what you owe. In the world of collections, a debt is worth less and less as time passes. The longer a debt has been on the books, the less a collector is willing to accept to adjust the debt to a “paid” status therefore in both cases, time is definitely on your side.
Excessive inquiries will hurt your credit score. Typically, whenever you apply for a new account or financing of any type, the issuer will request your credit report from the reporting bureaus. Each of these inquiries are logged and added to your official credit report and will be visible to any other potential lender to see. When a potential lender sees multiple inquiries on your report, it is a signal to them that you have a current or recent pattern of requesting credit and that may look to them as though you could be acquiring too many debts which would inhibit your ability to pay them back should they decide to offer you credit as well. As your credit inquiries increase, you ability to secure new credit proportionately decreases.
There is a huge difference between prepaid debit cards and secured credit cards. Most people with poor credit scores have a difficult time getting approved for new credit cards, however in today’s society, having a credit card with a Visa┬«or MasterCard┬« logo is almost a necessity so they are forced to apply for pre paid debit cards or secured credit cards to fulfill that need. Although neither type of card commonly requires a credit check, only the secured card reports your payment activity to the credit bureaus. Both the pre paid and secured cards require an up front deposit when you sign up, however the main difference is in how that money is withdrawn. The pre paid card is much like a checking account debit card which charges your account as soon as you make purchases and once that happens the money is gone. With a secured credit card, your charges are applied against your credit line (equal to or slightly greater than the amount of your initial deposit), but are not billed to you until the end of the month, much like a standard credit card. Once you receive that end of month bill, you can either pay off the total amount or make the minimum payment required by the card issuer. In the case of a secured credit card, those payments are usually reported to the credit bureaus and if made on time, will contribute to the improvement of your credit score. This is a very important distinction when working on rebuilding your credit.

These three important factors are just a sampling of the many things you will want to be aware of before starting your own credit repair and FICO score improvement project. You can empower yourself to do just as good of a credit repair job as any paid professional, however the key to that empowerment is knowledge and these three very important areas of expertise will help you on your way to a new and higher credit score.

Debt Collection Phone Calls and Collection Letters Are Really an Income Opportunity

Debt collection phone calls and collection letters are the most misunderstood items people must deal with when they fall behind on paying their credit card debt. A few “in the know” use it as income opportunity while most are afraid to answer their phone and have no idea about how to make money answering a collection letter.

You fall behind on paying your credit card debt and get a few late notices from the bank. The letters get progressively more threatening as they warn you of all the bad things that are going to happen to your credit report and say your account information will be to be turned over to a debt collector if you do not pay up immediately.

The banking industry and card companies do not care that you have lost your job due to their Wall Street shenanigans which triggered the depression. They just want their 30% interest rate paid and they want it now! They did not get enough bailout money to give every executive a million-dollar bonus and they want you to make the difference!

This should upset every citizen and trigger the “I am not going to take it any more” attitude that every red blooded American has tucked away somewhere in their soul. Instead of triggering fear when some collector calls you should remain calm, smile and say to yourself “I am about to make $1000 on this call.”

The complete strategy for answering phone calls and collection letters is laid out for you in the Fair Debt Collection Practices Act. While most people just want the calls to stop you should turn your fear into an opportunity to make money and reduce your card debt to zero. You will need a digital recording device that you can find at Radio Shack, Wal-Mart or online for very little money.

When the collector calls and asks if this is “your name” you will immediately respond with “this call is being recorded and you have the right to remain silent” which is fair warning. Never give any information other than your first name. Collectors must establish that they are talking to the person whose account information they have purchased for a few pennies on the dollar.

When you give them only your first name they will become frustrated and if you are lucky they will go berserk, curse you, harass you and violate your rights on the phone so keep smiling and keep recording. In addition to the $1000 for the violation you can use it as an incentive to demand the collector mark your account “paid as agreed” instead of collecting the thousand dollars for the violation. It works great.

Collection letters must be answered! If you do not answer the collection letter you will lose in court and your wages will be garnished or a property lien will be filed, perhaps both. Writing a simple demand for proof of a debt is the second way to make money. Rarely can a debt collector show any proof whatsoever that you owe money. If they cannot prove you owe then you are free to go and owe zero on your card account.

Turn your fear of debt collection phone calls and collection letters into an opportunity to zero out your debt allowing you to walk away free and clear. Never let your lack of understanding a few simple principles ruin your life. Change your thinking and change your life forever.

Credit Card Court Summons – How Do I Save Myself From the Credit Card Collection Agency?

Unless you are one of the elite few in the country that can splurge on hundreds of thousands of dollars for a summer vacation in Europe or a white-sand beach in the Pacific, you are probably keeping track of much money is going in and out of your wallet. If the average person is conscious of her or his spending habits, you can be rest assured that financial institutions such as credit card companies and credit card collection agencies are as well. When things start falling through the cracks and you start spending way more than you earn, then you end up in a mountain of debt. When you can’t afford to pay a substantial amount of debt, you could be summoned to court by a collection agency. The process usually unfolds as follows:

First Hearing

You may have heard the story from a friend of a friend, and are now surprised that it is happening to you. You receive mail or a phone call summoning you to court for a payment that you have long thought forgotten. Instead of panicking, especially if the amount due is large, here are several things to consider. First, is the mail authentic? Be sure that the court summon has a docket number and a court address, otherwise it may be an forgery and you may end up unnecessarily worrying yourself for a payment that is not really yours to make.

So, you realize that the summon is real and you really do have unpaid dues to a credit card collection agency. The only decision that a court can really make is to favor the side of the creditor. There is no real use being present in the hearing, as nothing you can say will make a real debt go away. Just wait for the mail or the phone call and follow up on the payment.

Second Hearing

Lets say you fail to follow up on the payment scheme outlined by the court hearing. You will receive another summon, and this one you cannot afford to miss. At this hearing, the court will discuss the reasons why you have failed yet again to pay up. Without a valid defense your financial future is at risk. The police may actually show up at your front door and take you in, or equally worse, you may have your salary garnished. This legal term, in simple language, is when a part of your income automatically goes to the creditor as a result of a court order.

The Escape

So, how could you avoid the collection agency court summons altogether? You could negotiate with the creditor and try to pay a lesser sum up front and whole. For most creditors, chasing after you through the legal system is already a clear-cut sign of their determination to get you to pay up. To try to reduce the burden, especially if you remain in a consistent financial crisis.

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Credit Card Collection Lawsuits – The Basics

In the current economic situation, more and more people are getting caught up in the trap of credit card debt. Credit card companies are willing to go to great lengths to collect, and will use aggressive measures to get their payments. Although the thought of a credit card collection lawsuit may be overwhelming, with a little knowledge, and the advice of a good consumer attorney, you can come out of the suit intact.

Like all lawsuits, you have a strict answer deadline. If you don’t answer a collection lawsuit within the required time, you risk a default judgment in favor of the credit card company. By consulting a consumer lawyer as quickly as possible after you receive notice of the lawsuit, you can avoid missing the answer deadline, and also have more time to plan your defense and work with the collector.

Because the value of the debt decreases as the amount of time increases, many insurers of credit sell their bad debts to third party collectors. These debt buyers buy the debt for pennies on the dollar and try to make a profit by collecting the full amount of the debt. This can sometimes work in your favor, as debt buyers may not have the paperwork required for a successful lawsuit, including the credit card agreement, monthly billing statements, and the terms and conditions of your credit card. Without these documents, an experienced consumer attorney can usually negotiate with the collector to get the case settled out of court, or even get the lawsuit dismissed entirely.

Although these types of lawsuits are unpleasant, by informing yourself ahead of time, and consulting a seasoned consumer attorney as soon as possible, you can often negotiate a very favorable settlement or maybe even get the case dismissed.

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Credit Card Collection Agencies Secrets

Have you ever wondered why collection agencies keep calling you more often? There are numerous situations that credit collectors use to get the money you owe.

But let’s start from the beginning when you get your credit card. Obviously everyone knows that you need to pay your credit card on time. However, situation is not always the same when it comes repaying your credit card debt.

Once you are late on your credit card, Credit Card Company will alert you and give you a chance to work with them to pay off your debt. This is the best chance ever, if you credit card company is willing to work with you. In most cases you will receive late notices and your credit score will start to take a hit. If you are one day late on your credit card payment, your credit card company will report this late as 30 days late on your credit report. Afterwards; you may receive another notice to call their credit department to help you out with your situation or work out some re-payment plan.

If there is no action from you or credit card Company, your unpaid balance may end up in collector’s hands. Collections agencies are commission based most of the time. They have pre-arranged profit negotiations with credit card companies and typically credit card companies will take 40%-60% from your balance you own. If collector is able to collect more from you, they keep larger chuck of the profit for themselves.

Credit card companies are very serious about privacy of their data and most of the time dictate how your information should be transferred before collector can view your name, address, SSN number, etc.. Some of the top requests are SSL (Secure Server Locket), 128 bit encryption, FTP encryption and password, etc. With all of this and more, there are few credit collection agencies that spend money on more sophisticated software as it is very costly for them.

Once your data is opened or extracted from credit card company list, collection agencies use their own scoring model to determine how quickly you are able to repay your debt if they call you. They look into your credit score, how many tradeline you have, balances, late payment if any and so on. Upon all the data, their own credit scoring model will give them number as how quickly you are able to repay your debt.

But did you ever wonder why they keep calling you more and more? Collection agencies will more likely call more those will higher credit scores than those will lower credit score. If you have a good credit score, you are a high candidate for a repayment or settlement. You are more likely to settle than someone with lower credits score. However, if you have good credit score, collection agency will settle around 40% of the balance, as you owe them 60%. When someone with low credit score and same balance may be able to settle at 60%, as they will owe them 40%.

If you have a good credit score, you are more willing to maintain your credit rating. Collection agency knows this and offers you only around 40% settlement as well as they will call you more often to collect.

Once you have a low credit score, collection agency will try to reach you few times but eventually gives up on you for a few months as they know that you will not repay it back quickly for them to claim a profit.

Most financial professionals will tell you that maintaining your credit score is very important, however collection companies exploit that and use it against you. Yes, they are willing to even settle at 60%, but they will not do it as they will loose their profit. This is a game with numbers and profits.

If you have a good credit and fall behind, work with your credit card credit department and make sure they will not turn your unpaid balance to collection agencies, otherwise you will face numerous phone calls for a credit you build so well.

Credit Check Collection Agency

What is a credit check collection agency?

A credit check collection agency provides a service that can help determine the credit worthiness of you the potential consumer. These collection agencies verify whether a potential consumer qualifies for a loan, or any other credit, based on whether he or she has repaid their past debts or loans satisfactorily. At this point your credit score is pulled and then used by banks and any other lending company to qualify and possibly estimate how risky you the borrower may be based on previous experiences based on your debt and credit. In other words, a credit report is a true reflection of your past credit history. Your credit score is pulled by each of the three consumer reporting companies in the U.S.: Equifax, Experian, and TransUnion and these are monitored by the Fair Credit Reporting Act (FCRA). Many credit check collection agencies provide services to many establishments such as auto financiers, banks, credit card companies and retailers to name a few so by doing this these companies allow for a smoother process of allowing those with minimal debts to establish new lines of credit and easier and faster approval times.

Credit check collection agencies also provide other services that help collect debts for the creditors that are delinquent. These agencies are commonly known as debt collection agencies due to the nature of the collection process but still fall under the credit check collection agency regulations. These types of debts range from auto loans to credit cards to mortgage payments. By outsourcing the credit collection process allows the creditor to pass off the debt and liability to an agency that is better equipped to recover these bad debts from the consumer. The bad debt account is evaluated and the creditor pays an up front sum to the collection agency and the liability of the debts is then passed on for future collection. At this point the collection agency arranges for repayment of moneys owed by a person or another company to another person or company. Credit check collection agencies or debt collection agencies are all regulated by the Collection Agencies Act so whether you use one type of agency name or another as a personal preference, these agencies are all governed by this same act.

Many lenders use credit check collection agencies for various reasons:

They are too small of an organization to have their own collection departments
They lack the complete collection expertise to collect payments
They want faster results
They just want to protect their images

These credit check collection agencies are third party organizations that help lenders to obtain repayment faster and in easier ways so they can acquire there debts that they have paid for up front in the whole retrieval process. The usual collection tactics used by a collection agency to recover payments are to initially send collection letters, make phone calls, notify credit reporting bureaus such as Equifax, Experian, or TransUnion, and eventually litigation if none of the other tactics work during the collection process. Some collection agencies have resorted to violence but such practices are unlawful and are regulated by the Fair Debt Collection Practices Act. This act gives a list of what a collection agency can and cannot do.

If you would like more information on this topic and other credit repair topics visit Credit Check Collection Agency

Avoid Getting Sued by a Credit Card Collection Agency – Eliminate Debt

ou can avoid being sued by a credit card collection agency. In most cases even if you have a lot of debt and you stop paying that credit card debt collector will not take you to court. It is very expensive to sue somebody over debt and in most cases the collection agency does not know if you have any assets or not. There are many ways that you can get into a negative financial situation with your credit cards. You always want to try to pay your credit card on time and paying off balances at the end of the month is the best way. many people do not have the money to pay off their credit cards.

It is very important that you understand the laws so that you can’t check yourself against collection agencies. Most of the collection agencies bend or break the laws in order to scare you to give them money. You as is a consumer have rights and make sure that any collection agency that tries to contact you does not step on those rights. There have been cases where the debt amount was very high and the collection agency decided to take the person to court. But the truth of the matter this does not happen very often at all.

Remember that the best and most effective way to avoid being sued over credit card debt is to pay your debt on time. You need to also remember that you as the consumer have rights. Many collection agencies try to do anything they can legal or illegal to collect the money that is owed. You need to be aware that in most cases collection agencies never filed lawsuits against individuals because it is too expensive for them to do.

Credit Report Collections – Impacts on Credit Score

Credit score is a vital aspect of your credit report that defines your position and status to apply for any further loans, mortgages, financed cares etc. A credit report with collections will not only kick the credit score go down but would also create a hurdle to apply for any new finances. Complete finance history is gathered and compiled by credit bureaus and consumer reporting agencies – they get detailed information about consumers from creditors. After analyzing the information they determine the credit score of consumer.

Everyone who is facing credit collections – desires to fix the credit score report to bring things normal again. These collections are red alerts to your entire credit history and thus should be dealt as soon as possible. Credit report collections would hit your credit score so badly to push it to worst levels. It takes a long time and needs a lot of patience to recover and improve the good credit score again.

If you carry a legitimate debt around there in your credit financial report – then unfortunately there is not much you can do to avoid it. Try to negotiate with your creditor for repayments and come up with the minimum deal you can set. Settling the debt would help you to improve your credit repute gradually. Credit bureaus would also lift negative marks when they will be satisfied that your repayments are being settled.

In few cases, you find some collection entries that do not belong to you; these might be the act of some fraudulent activities. Report the findings to your creditor immediately to conduct an investigation process in order to resolve this issue as soon as possible. When creditors completes the investigation, and gets to know that collections do not relate to you – they would report the updates to credit bureaus who would remove the negative marks from your credit report.

How to Remove a Credit Report Collection

A credit score report is the most important and key document for consumers. It determines the true and actual position of consumer’s worth in the world of finances. If your financial scoring report contains the positive marks then you are in the ideal position to apply for loans in the banks and in return banks would be pleased to offer you the required credits whereas if your credit report is piled up with negative marks or collections then it would be a tough task for you to get pass any loans or credits.

Collections would keep on bringing your credit score at minimum worst levels. It would be very difficult for consumers to maintain the same credit score after they become victims of collections made on their credit report. It takes a series of long span of years when your credit score report gets able to throw away the collection.

Fair Credit Reporting Act regulates credit bureaus and collection agencies to wipe out all collections from consumers credit history which reach the age of more than seven years. In case, credit collection agency tries to contact consumers after this period then consumers carry the authority to take collection agency in the court for creating any disturbances.

Many people believe in taking the services of law firms as it is the best way to get rid of this mess. These law firms usually carry the deep understating and expertise to address the issues related to financial disputes and collections. We find the stories of many successful consumers who were able to get rid of collections from their credit report after using these law firm.

Writing a dispute letter to credit bureaus could also be helpful. In case, your dispute letter is successful your financial worthiness via credit report would be updated with the new one without any collections. This means that you will now have an opportunity to claim and apply for any loans, mortgages, liens and credit cards. Always remember that life is only a bed of roses for those who strive hard to seed it for future bloom.

Credit Report Collections

Why would anyone be interested in reading about credit report collections? Well, most the time it’s because they have been denied credit and have ordered the reports to see why. Low and behold there are collections on their credit report. These collections are being reported by collection agencies and they’re killing your credit scores.

When someone searches the internet for credit report collections, they are usually looking to see if there is a way to remove collections from their credit report. The good news is there are a few ways. The most popular way is by disputing them with one of the 3 main credit bureaus (Equifax, Trans Union and Experian) reporting them.

You can also contact the collection agency directly and try to work out a deal with them. You simply ask them to remove it in exchange for paying it in full. This is called pay for delete. Many collection agencies will tell you that they can’t remove it, but they definitely can. Credit reporting is 100% voluntary and anything that can be placed on it can be removed at any time.

If a collection agency doesn’t cooperate with you, simply don’t pay them because even if they upgrade the account to “paid collection” it is still on your credit report for 7 more years from the date you paid, unless you got them to remove it. Of course, you always want to get the agreement in writing as collection agencies don’t always have the most trustworthy people working for them.

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