5 Demystified credit repair myths every debtor must be aware of

Do you have bad credit and are you looking for ways to repair it without putting much extra effort? If answered yes, you must be aware of some particular credit terms like credit repair. Credit repair is nothing but restoring your credit score and emerging creditworthy to obtain favorable lines of credit in the near future. Apart from the easy and effortless ways to improve your credit score, there are some credit repair myths too that are believed by most people who are looking for credit repair services. If you too are someone who is geared up to repair your credit, you must first be aware of the credit repair myths so that you’re able to boost your credit score without taking any wrong decisions.

Myth No. 1: You need a third party organization to repair your credit

Truth: While a credit repair firm can help you out, it is just possible to repair your credit on your own. Most studies show that among 90% cases of credit repair are all due to mistakes that are committed by the credit bureaus. By disputing the erroneous information, it is quite possible to boost your credit score on your own. Before taking help of a pro to repair your credit, think twice as this can easily be done on your own.

Myth No. 2: Credit scores are always the same from all credit bureaus

Truth: You must be aware of the three credit bureaus, TransUnion, Experian and Equifax. But if you’re misled into believing that the score that you obtain from all the credit bureaus is all the same, you’re grossly mistaken. Each store, agency or bank with whom you deal will use different credit bureaus. It may happen that your grocer uses TransUnion while your dentist uses Experian. Therefore, as you pull out a copy of your credit report from all the three credit reporting agencies, you will get a different score. Differences can often be as good as 80 points.

Myth No. 3: Checking your credit score may cost you some points

Truth: This is partially a myth as checking your credit online by signing up with the website of any of the three credit bureaus will not hurt your score as this will be considered as “soft inquiry”. Unauthorized checks by companies including the credit repair firms may also not hurt your score. On the other hand, if you’re applying for loans from companies and they want to check your credit score, this will cost you some points.

Myth No. 4: Shopping around for loans may hurt adversely affect your credit score

Truth: You, as a debtor, must be aware of the fact that most credit bureaus will classify credit checks within a 12 day period to be a single inquiry. This rule has been designed specifically so that the people can shop around for a reasonable loan without putting their credit score at stake. Thus, if you go to a lending institution on two consecutive days, the credit bureaus will consider this as one single enquiry.

Myth No. 5: Credit repair only deals with removing erroneous information

Truth: Sure, credit repair does involve removing all the erroneous information but that doesn’t mean that it is all about removing the wrong information. You also have to keep on paying off your high interest debt and lessen your debt burden so that you can boost your credit score and become creditworthy.

Thus, if you’re keen on repairing your credit score, you must make yourself aware of the myths mentioned above. Stay aware of all the credit terms so that you are not hoodwinked by the financial institutions.

Student Loan - 6 Ways To Get Your Student Loan Out of Default Status

Ever wonder how many days you could be late on your student loan payment before you are considered in default status. Well, you are considered in default once your payment is 270 days behind. Once this takes place, the lending institution can come after you with the power of the government. The entire balance of the loan will become due. You will not be eligible for a deferment or forbearance. There is no statute of limitation on collections. You can't discharge the loan in bankruptcy. You can't get further loans. The school may withhold your transcripts, and your tax refund will be intercepted. Your wages can be garnished. Your credit report will be damaged, collection fees will be added to your balance, liens can be placed on your personal and real property, and your bank accounts and other assets can be seized.

How do I get out of default status?

• Ask the lender for a payment plan based on your income.
• Try to get into the loan rehabilitation program. With this plan, you make 12 on time payments, and then a new lender will buy your loan providing you with a fresh payment plan and a lower monthly payment.
• Consolidate all of your defaulted loans. You will get a better interest rate and payment plan under a different lender.
• Settle your balance by seeking a compromise with the lender.
• File for bankruptcy after proving undue hardship. You must show that your present income is too low to pay the loan, and there are various steps you must take to prove your case.
• File a Chapter 13, and your interest, collection attempts, wage garnishments, and tax refund interception will stop while you are paying back your loan.

As you can see defaulted on your student loan could have a tremendous negative effect on your personal and financial life. When you are in default status, most lenders will assist you with bringing your account current. However, you have to take action and use one of the above techniques that fits your situation.

How to Write a Convincing Debt Negotiation Letter Article Source: http://EzineArticles.com/5794077

Let me ask you a question. Are you searching for a way to reduce your bills through some form of settlement? If so, you may have an understanding of what a debt settlement letter is, and how it could help you financially. You can also look at these letters as a powerful debt negotiation tool.

These letters are very straight to the point and persuading. They could be used in court if either party broke their agreement. These letters are very important if you expect handling debt negotiations yourself and not employ a third - party company. In the planning stage of negotiations, you must understand how to craft a convincing letter that gets results. Understand that a convincing letter is one of your secret weapons to reducing your debt load in a big way. Keep in mind that you must convince the lender that it is in their best interest to settle with you. This in returns lowers your debt.

Right before send out your first letter to the lenders or collectors, make sure that you have a basic knowledge on how the game works. You have to know the ends and out of debt settlement because the creditors and collectors are masters in this area. Here are a few tip you can use when crafting your convincing debt settlement letter.

1. Because the debt settlement letter could be used in court, have an attorney review it to make sure all terms are accurate.

2. You can also seek the advice of a friend who has successfully negotiated debt with these types of letters.

3. Make sure you understand the terms and conditions that you are asking for in the letter.

4. Include what you want eliminated like, fees, taxes, and interest rates.

5. Include the total amount you can pay in the settlement.

6. Let the creditor know that in exchange for the payment, you want the negative item deleted from your credit report.

7. Creditor's know most of the strategies used by consumers and debt settlement companies, so do not try to trick them with words like if you do not accept my payment, I will file bankruptcy. Instead, say that this is all the money I have, and I am are currently unemployed.

Here is a sample debt settlement letter that you can use as a model to write your first letter.

Your name:

Your address:

Address of the creditor or the collection agency:

Date:

Reference account number:

Dear creditor or collection agency,

In the last six months, I have been facing hard times with a lost of my job, my mother passing away and my brother going to jail. I sincerely apologize for falling behind on my debts, but I assure you my neglectfulness was circumstantial. Now that I have a job, I'm ready to settle my outstanding debt, and I would like to offer you 20 cents on the dollar (put a dollar amount here) for a deletion of all negative information from my credit report and no further collection activities. Currently, I'm in negotiations with other creditors on a similar deal, and I would like to close my account with you fast. If I receive a signed agreement from you, I will gladly send payment out overnight.

Sincerely,

Your signature here.

In summary, know what you owe and then compare it to what you have in your bank account. By doing this, you will know where to start with your negotiations. In addition, some creditors will ask for 80% of the balance but this is just a starting point of the settlement. You do not have to have that amount to settle with as it is just the start of negotiations. Your letter must be accurate due to its legal nature, and always double - check the terms and conditions of the letter before sending it out. Now that you are empowered with more information, go out there, and take action.

Mark Clayborne is a Certified Credit Consultant with ten years of experience assisting consumers with credit issues. For more powerful secrets on credit repair, debt settlement, stopping collectors, rebuilding your credit, and raising your score, please read the first chapter of The Guide to credit and get a Free Restore your Credit E-class at http://www.hiddencreditrepairsecrets.com

Student Loan Garnishments - Secrets Revealed on Student Loan Garnishments

In this economy, it is becoming more common for people to be unable to afford their student loan debts. When you have no income and are forced to choose between making a payment and feeding your family, a loan debt can understandably be set aside. However, by not paying your debt, you are leaving yourself vulnerable for a student loan garnishment and possibly a higher overall debt.

What is a student loan garnishment? A student loan garnishment is when your loan payment is taken out of any income you have. This can easily be a paycheck (if you have become re-employed) or an income tax refund.

How does this happen, you wonder? Well, the IRS can legally intercept if you default on your loans. This is one of the most popular ways the Department of Education collects from defaulted loans. In fact, they claim to receive millions of dollars annually through this avenue. This is usually the most common way that government issued loans are repaid if they are defaulted on.

Another way a loan garnishment happens is through your paycheck. How this works is a set amount comes out of each paycheck, via your employer, and goes straight to the loan lender until your debt is fully paid. While no lender can request more than 15% of your disposable income or 30 times the federal minimum wage limit, this can definitely leave you financially vulnerable.

Student loan garnishments can also come via any federal benefits you may have, including Social Security retirement benefits and Social Security disability payments. Again, there is a limit to what can be taken of no more than $750 per month. This student loan garnishment through your retirement and disability income would continue until the debt is paid in full.

The final common way a student loan garnishment takes place is through a lawsuit. Both the federal government and private lenders can take you to court to try to get your loan payments made. This can be even more costly than the initial debt, as court costs and lawyer fees are often tacked onto the full amount. The final judgment amount usually ends up on your credit record and will cause you to have to make higher payments than you originally had.

In short, even if your income is limited, it is beneficial to continue making loan payments. Discuss with your lender your current financial situation and you might be able to get the monthly payment amount temporarily lowered. Now that you are empowered with more information, go out and take action.

How to Write a Convincing Debt Negotiation Letter

Let me ask you a question. Are you searching for a way to reduce your bills through some form of settlement? If so, you may have an understanding of what a debt settlement letter is, and how it could help you financially. You can also look at these letters as a powerful debt negotiation tool.

These letters are very straight to the point and persuading. They could be used in court if either party broke their agreement. These letters are very important if you expect handling debt negotiations yourself and not employ a third - party company. In the planning stage of negotiations, you must understand how to craft a convincing letter that gets results. Understand that a convincing letter is one of your secret weapons to reducing your debt load in a big way. Keep in mind that you must convince the lender that it is in their best interest to settle with you. This in returns lowers your debt.

Right before send out your first letter to the lenders or collectors, make sure that you have a basic knowledge on how the game works. You have to know the ends and out of debt settlement because the creditors and collectors are masters in this area. Here are a few tip you can use when crafting your convincing debt settlement letter.

1. Because the debt settlement letter could be used in court, have an attorney review it to make sure all terms are accurate.

2. You can also seek the advice of a friend who has successfully negotiated debt with these types of letters.

3. Make sure you understand the terms and conditions that you are asking for in the letter.

4. Include what you want eliminated like, fees, taxes, and interest rates.

5. Include the total amount you can pay in the settlement.

6. Let the creditor know that in exchange for the payment, you want the negative item deleted from your credit report.

7. Creditor's know most of the strategies used by consumers and debt settlement companies, so do not try to trick them with words like if you do not accept my payment, I will file bankruptcy. Instead, say that this is all the money I have, and I am are currently unemployed.

Here is a sample debt settlement letter that you can use as a model to write your first letter.

Your name:

Your address:

Address of the creditor or the collection agency:

Date:

Reference account number:

Dear creditor or collection agency,

In the last six months, I have been facing hard times with a lost of my job, my mother passing away and my brother going to jail. I sincerely apologize for falling behind on my debts, but I assure you my neglectfulness was circumstantial. Now that I have a job, I'm ready to settle my outstanding debt, and I would like to offer you 20 cents on the dollar (put a dollar amount here) for a deletion of all negative information from my credit report and no further collection activities. Currently, I'm in negotiations with other creditors on a similar deal, and I would like to close my account with you fast. If I receive a signed agreement from you, I will gladly send payment out overnight.

Sincerely,

Your signature here.

In summary, know what you owe and then compare it to what you have in your bank account. By doing this, you will know where to start with your negotiations. In addition, some creditors will ask for 80% of the balance but this is just a starting point of the settlement. You do not have to have that amount to settle with as it is just the start of negotiations. Your letter must be accurate due to its legal nature, and always double - check the terms and conditions of the letter before sending it out. Now that you are empowered with more information, go out there, and take action.

Mark Clayborne is a Certified Credit Consultant with ten years of experience assisting consumers with credit issues. For more powerful secrets debt settlement, please read the first chapter of The Credit Ebook Book and get a Free Restore your Credit E-class at http://www.hiddencreditrepairsecrets.com

Sample Dispute Letter - Can You Show Me One?

When using sample dispute letters, enter the information in the letter as directed. Make sure you put your report number at the top of the letter. Within the sample dispute letter, enter the reason for your dispute. You can find various valid reasons to dispute by cafefully viewing your credit report. Retype and print out the first dispute letter and then sign it. Make a copy of each credit report with the negative items circled and send it with your first letter. Include any proof that will help validate your claim, like receipts stating the item was paid.

Include a copy of your driver's license and a recent utility bill that displays your name and address, as the credit bureau needs this information to verify your identity. Every time you send sample dispute letter, send a copy of your credit report with the negative items highlighted. Mail your letters certified mail with a return receipt to establish a paper trail just in case you have to sue the credit bureau for failing to investigate your disputes. Send your letters to the following credit bureaus listed below.

Experian
NCAC PO BOX 9701
ALLEN TX, 75013

Equifax
PO BOX 105518 

ATLANTA GA, 30348

Trans Union
PO BOX 2000
CHESTER PA 19022

A sample dispute letter looks like this.

Your Full name:
Your Address:
Your Date of Birth:
Your Social Security number:
Report Number:
Date:

Dear Credit Bureau

I'm writing to let you know that your company is reporting inaccurate credit information on my credit report. The FCRA ensures that bureaus report only 100% accurate information. Therefore, I would like for the following information to be investigated.

Account one:
Account two:
Account three:

Please delete this misleading information, and supply me with a corrected credit report within 30 days.

Sincerely,

Print your name here.

Sign your name here.

Mark Clayborne is a Certified Credit Consultant with ten years of experience assisting consumers with credit issues. If you liked this article, then please sign up to read the first chapter of The Credit Repair Book/HCRS and get a Free Restore your Credit E-class at http://www.hiddencreditrepairsecrets.com This article may be freely reprinted or distributed in its entirety in any Ezine, newsletter, blog, or website. The author's name, bio and website links must remain intact and be included with every reproduction.

Disputing Your Credit Report - How Can I Remove Negative Items From My Credit Report?

Disputing your credit report can be a time consuming process. Using the dispute process to remove negative items off of your credit report can be frustrating. Nevertheless, it is one of the best ways to get negative information off of your credit report. Starting with the basic dispute process is quite often the fastest and most effective way of disputing your credit report.

Now that you have your reports in front of you, make sure to check the personal information section and check that all entries are correct. Check your name, date of birth, present, and past address, current and past employer, and social security number. After you have verified your basic information, you should scan all three reports and circle or highlight any errors you find. 

Scroll down each report and check for any errors or discrepancies regarding accounts, or 

inquiries.

Here are some important red flags to look for:

When disputing your credit report look for discrepancies regarding accounts and inquiries:

Unauthorized users
Customers listed as deceased
Former spouse name
Negative accounts from your divorce
Negative co-signed accounts
Unauthorized inquires
Illegally re-aged collection accounts (which report an incorrect last date of activity)
Foreclosure attempts
Consumer credit counseling loan indications
When disputing your credit report look for Discrepancies regarding balances and accounts
Balances incorrect
Credit limits listed incorrectly
Duplicate collections
Accounts listed incorrectly
Credit lines not listed
Paid accounts still showing that you owe
Closed accounts shown open
Closed accounts should say closed by consumer and not closed by the creditor

When disputing your credit report look for Discrepancies regarding negative trade lines:

Late payments, 30, 90, and 120 days
Collections
Charge offs
Tax liens
Judgments
Debt consolidation marks
Bankruptcies not saying withdrawn or dismissed
Repossession indication when it should say voluntary surrendered

Now, before you start trying to repair your credit report, let me tell you what the law says about disputing your report.

The Fair Credit Reporting Act regulates how the credit bureaus handle your report under § 611. For procedures in cases of disputed accuracy [15 U.S.C. § 1681i], the law states that if you dispute the accuracy of any item or data in your reports, the credit bureau shall conduct a reasonable investigation within 30 days to determine if the challenged item is correct.

After the 30 days have expired, if the credit bureau has not verified or completed the investigation, the disputed item must be deleted. There you go, that is the law, and you will use it to start your dispute process.

When disputing your credit report, you can write your own dispute letter or use a standard dispute letter that you find on the internet. If you decide to write the letters, you must include your full name, date of birth, address, social security number, the items you're disputing, the reason you are disputing them and your signature at the bottom. Once you have your letter s are ready, send them to the following agencies:

Experian
NCAC PO BOX 9701
ALLEN TX, 75013

Equifax
PO BOX 105518 

ATLANTA GA, 30348

Trans Union
PO BOX 2000
CHESTER PA 19022

Mark Clayborne is a Certified Credit Consultant with ten years of experience assisting consumers with credit issues. If you liked this article, then please sign up to read the first chapter of The Credit eBook/HCRS and get a Free Restore your Credit E-class at http://www.hiddencreditrepairsecrets.com This article may be freely reprinted or distributed in its entirety in any Ezine, newsletter, blog, or website. The author's name, bio and website links must remain intact and be included with every reproduction.

Article Source: http://EzineArticles.com/5549585

When to File for Bankruptcy - 5 Sure Fire Options You Must Explore Before Filing for Bankruptcy

As a credit consultant, my clients always ask me when to file for bankruptcy. As a result, I advise them to file only when you have exhausted all of your available avenues such as talking with your credit card company, car, and mortgage lenders and your student loan representative about the various options you have to explore. You should also look into Consumer credit counseling organizations, debt consolidation, balance transfers and taping your savings and investments. If none of these options worked, and your debt exceeds your annual salary, then it's time to talk with a bankruptcy lawyer. Moreover, you must look at your advantages and disadvantages to filing.

When to file for bankruptcy option 1 - Credit cards

Talk with your lender and see if any of the following options are available.

• Having your interest and payments reduced
• Changing your payment dates.
• Qualifying for a hardship program
• Suspend payments until you get caught up
• Settling your debts for 20% on the dollar

When to file for bankruptcy option 2 - Car

Before you get to behind on your car payment, see if the bank will let you do any of the following:

• Move your late payments to the end of your loan
• Refinance the car for a lower payment and interest rate
• Participate in a hardship program

When to file for bankruptcy option 3 - Home

Talk with your lender to see if they can help you in any way. You can also do the following:

• Try to get your payments reduced and suspended
• Contact your local housing authority for help
• Try refinancing
• Selling the home

When to file for bankruptcy option 4 - Student Loan

Since the student loan can't be discharged in bankruptcy, talk with a representative at the student loan center and try some of the following options:

• Request a deferment
• Apply for a forbearance
• See if you qualify for the income sensitive program

When to file for bankruptcy option 5 - Credit Counseling

Schedule an appointment with credit consumer counselor. The CCC is a non-profit organization that assists consumers who are in financial trouble. Here is what they will do for you:

• Help sort out your financial problems
• Provide credit education
• Help you with a budget
• Provide you with a plan to get out of debt
• Set up a payment plan for you
• Negotiate with creditors on your behalf
• Reduce interest rates and get late fees removed

Concluding, as you can see there are many options you can explore before making the decision to file BK. Just because you are over you head in debt does not mean you should think about BK. Bankruptcies stay with you forever so keep that in mind along with the information you learned in this article. Now that you are empowered with new information, please make the right choice.

Mark Clayborne is a Certified Credit Consultant with ten years of experience assisting consumers with credit issues. For more powerful secrets on credit repair, debt settlement, stopping collectors, rebuilding your credit, and raising your score, please read the first chapter of The Credit Repair Book and get a Free Restore your Credit E-class at http://www.hiddencreditrepairsecrets.com

Car Repossession - Secrets Revealed About A Car Repossession Article Source: http://EzineArticles.com/5619849

Let's face it, when you default on your financial obligations, the lender will use the courts to take back property that is secured by a loan. If want to keep your vehicle because you were set back do to temporary financial problems, there are multiple technique's you can try to prevent a car repossession.

Car repossession secrets revealed - How do I stop the bank from taking my car

• If you can't afford the vehicle, try to sell it and pay the difference in your loan.
• You can also refinance it if possible.
• Ask your lender if you can add the delinquent amount to the end of the loan.
• Voluntarily surrender it to avoid the car from being repossessed. If you let the repo man take the car, two things will happen. There will be more fees involved because the bank had to hire a company to come out and pick up the car. And the word repossession will be placed on your credit report, which is more damaging than voluntary repossession.

Car repossession secrets revealed - How can I get my car back?

According to the law, you have a certain amount of time to reinstate the vehicle. Call the bank and ask them how much time you have to pay the back payments, late penalty and repossession fees.

Car repossession secrets revealed - What if I owe a balance on my car after the auction?

Once your repossessed car has been sold in the auction, you will receive the deficiency amount (the amount you owed from your original loan minus the auction sale price and fees) from the bank. You can try to settle the debt for 20 cents on the dollar. You can also set up a payment plan to settle the balance, and then subsequently challenge the item. If you don't posses the money to pay, it will go to a collector and possibly to court if it's a large amount. If this happens, follow the strategies used for collection agencies and judgments. See nfa.org for car repossession laws in your state.

Car repossession secrets revealed - What if I'm sued for the deficiency amount?

Find a good lawyer to represent your interest. Once you have found a lawyer, talk with him or her about the various arguments listed below. These defenses can be used to cancel the deficiency amount.

Car repossession secrets revealed - Arguments you can use:

• You have evidence that the mileage disclosure was false.
• The car sale was not commercially reasonable according to the law.
• The dealer failed to display the Federal Buyers Guide as required by Federal Law.
• Upon financing, you did not receive a completed sales agreement in a format required by the Federal law.
• Most state statues list a category of deceptive trade practices (Check your state statute to see if the dealer or the creditor violated any of these practices).
• If your car was sold with a written warranty and was taken back to the dealer for repairs, you may have an argument if the dealer refused to fix it.
• Any breach in warranty is considerable.
• The creditor did not send you a written notice advising you that they would sell the car, and that you would have a certain amount of time to redeem (pay off) the vehicle before it was sold.
• Dealers are required by law to let you know that the car was either wrecked, rebuilt, salvaged, stolen, water-damaged or a buy back lemon. If they did not disclose this information, and it caused you some type of damage, you can use this as an argument.
• Some states require dealers to inspect the engine and drive train on cars purchased after October 1, 1997. The dealer must give the buyer a written disclosure of any defects. If your car breaks down after you leave the lot, then you can use this argument because the dealer did not disclose the problem with the car.

Car repossession secrets revealed - How do I get late car payments off of my credit report?

You want to make the lender prove that you were late for those days indicated on your credit report. Call the loan company and ask them to send you proof that you were behind on your bill. If they can't provide you with proof, contact the credit bureau by letter and advise them that the bank has not provided you with proof and that the late entry should to be deleted from your report.

As you can see there are multiple techniques you can use when it comes to dealing with a car repossession, so take your time and apply the technique that fits your situation.

Mark Clayborne is a Certified Credit Consultant with ten years of experience assisting consumers with credit issues. If you liked this article, then please sign up to read the first chapter of The Credit Credit Book/HCRS and get a Free Restore your Credit E-class at http://www.hiddencreditrepairsecrets.com. This article may be freely reprinted or distributed in its entirety in any Ezine, newsletter, blog, or website. The author's name, bio and website links must remain intact and be included with every reproduction.

Hidden Credit Repair Secrets

Credit Card Debt Settlement
Having to many credit cards can be overwelming, I know because I was in your shoes.  But there are ways to deal with this debt and it's called credit card debt settlement.   Click here to get your Free debt Settlement Report  Here

Ways to Increase Your Credit Score in 90 Days

Have you ever image how you could get your credit score up so that you could buy that dream house, new car and that new flat screen TV. Are you tired of being turned down for credit because your three-digit number is too low? What about being charged high inter rates. Well, rest assure because if you apply the four proven strategies listed below, I guarantee you will see results with an increase credit score.

Increase credit score tip 1 - Pull your credit report

You can start by removing errors from your credit report. While scanning your credit report, look for any inquiries that you did not authorize. Inquiries could lower your score as much as five points per inquiry. Get the creditor to prove that you gave them permission to pull your credit report, and if they can't prove it, then the inquiry must be deleted according to the law. You should also inspect your report for the following:

• Accounts that are not yours
• Trade lines that are incorrect
• Outdated debts
• Accounts with the mark of authorized user
• Credit accounts that were paid but still shows outstanding
• Credit limits that are not being reported
• Any errors that require dispute
• Unauthorized Inquiries

Increase credit score tip 2 - Pay your bills on time

Make a list of all of your debts and their due dates. Then type in the due dates into your computer and cell phone calendars with reminders made active. Use the Internet banking program, and your online credit card site to send you email reminders when your bills are due. In addition, you can set up your accounts to have the money automatically taken out at the due date. When paying your bills, you can pay them as they come in, use online banking or bill pay or through your financial institution web site. Using the various methods mentioned above will help you pay your debts. Making each payment on time raises your credit score.

Increase credit score tip 3 Pay down your debt

Put your debts in order from the card with the highest balance to the lowest. Pay each account down to 30% and keep it there to increase your three digit number. Finding money to help you pay down your debt may be difficult, but there are numerous ways to raise extra cash. You can have a garage sale, sell on Ebay, get an extra job, pull from your savings, borrow from friends, and cut your expenses. Any of these are an option.

Increase credit score tip 4 Don't close old accounts

Closing trade lines won't help. In fact, it will hurt your three digit number by reducing your total available credit and making your balances seem higher. It also makes your total credit look young, and the FICO model likes to see age on accounts because of payment history. Last, you want to keep the cards active by having a monthly bill debited from your card at the end of the month to avoid the creditor from closing your account due to lack of use.

Concluding, working to increase credit scores are a time-consuming process because of the many techniques you must apply to make the four strategies work. However, you may not need to use most of the methods to raise your score. So now that you are empowered with new education, go out there and get the financial things you want in life.

Mark Clayborne is a Certified Credit Consultant with ten years of experience assisting consumers with credit issues. For more powerful secrets on credit repair, debt settlement, stopping collectors, rebuilding your credit, and raising your score, please read the first chapter of The Credit Repair Book and get a Free Restore your Credit E-class at http://www.hiddencreditrepairsecrets.com

Article Source: http://EzineArticles.com/5684325

Six Powerful Ways to Remove a Judgment From Your Credit Report and Watch Your Credit Score Increase

First, write down the court information listed under the judgment in your credit report, then contact the court and ask them to send you a copy of the judgment. Once you have a copy of the judgment, try any of the following techniques to remove it from your report.

Try the basic dispute method to see whether the judgment will simply fall off. If you have no success with challenging negative items, you can settle them for 20-50 cents on the dollar and try for a deletion. If the creditor won't accept a complete deletion, request that your creditor list your account as "paid as agreed." From there you can begin the basic dispute process. Make sure you get a judgment satisfaction letter to send to the court advising them that the debt was paid.

You can make an agreement with the creditor's counsel to stand still for full payment of the debt. You can then file a motion (i.e. make a request) to have the judgment vacated based on a mistake such as a clerical error. Most likely, the attorney will not respond to your motion. As a result, the judgment will be vacated. Make sure you send the order to the credit bureaus for complete deletion.

You can file a motion to have the judgment vacated (dismissed) based on a technicality, errors in the complaint, or the judgment has moved to another state, or the collection agency did not validate the debt. A technicality can be. You were not properly served or the statute of limitation has run out to collect the debt. You can find errors in the complaint like. The amount of the judgment was wrong. Your name is misspelled, or the date is incorrect.

You can file a motion to have the judgment vacated based on discrepancies in the notice or any difficulties in obtaining it. For example, if you did not initially receive the notice, if the server left the notice on your doorstep or at an incorrect address, or if your spouse was served instead of you, you may be able to have the judgment vacated. Also, if the notice has the wrong district indicated, your name incorrectly listed, or if you are ill on the day of court, you may also be able to file a motion.

If the judgment follows you to another state, you can dispute the interest by arguing that the collection agency did not validate your debt according to the FDCPA. By doing this, it can result to the judgment being vacated.

Mark Clayborne is a Certified Credit Consultant with ten years of experience assisting consumer with credit issues. If you liked this article, then I invite you to sign up to read the first chapter of my book Hidden Credit Repair Secrets and get a Free Restore your credit E-class at http://www.hiddencreditrepairsecrets.com "This article may be freely reprinted or distributed in its entirety in any Ezine, newsletter, blog, or website. The author's name, bio and website links must remain intact and be included with every reproduction."

Wage Garnishment - How to Stop Them and Keep My PayCheck Article Source: http://EzineArticles.com/5437919

Having a wage garnishment attached to your weekly or monthly income can be devastating to most consumers. But with a little education and know how, there are ways to avoid a wage garnishment. Wage garnishments can be initiated after the creditor gets a judgment against you for the debt you owe. The creditor will contact a sheriff who will send the garnishment paperwork to your employer. This allows money to be taken from your paycheck until the judgment is satisfied.

How long can my check be garnished? 
It depends on your state law. Some states allow the creditor to pull money once, and other states allow the creditor to garnish your wages until the debt is satisfied. Check your state law for further information on this matter.
What kinds of wages are exempt from garnishment?
Welfare
Unemployment
Veteran benefits
Social security
Workers compensation
Child support
Pension
Sick and vacation days

How much can be taken out of my check? 
Again, check with your state on the amount that can be taken out. Most states allow up to 25% on regular debt. For child support or alimony, 50% can be taken out. If you support a second child or spouse, up to 60% could be taken from your paycheck. See wage garnishment laws in the appendix.

How do I stop a wage garnishment? 
You can stop this by filing a wage garnishment exemption with the court or with the levy officer within 10 days from the start of the garnishment. You want to claim that you cannot afford to have money taken because it will create a hardship for your family. In addition, it will prevent you from buying the basic needs like food. Only present this argument if you will indeed experience a hardship. If you file a claim for exemption and the creditor fails to challenge it within a certain amount of time allowed by the court, the judge may set the garnishment to the side.

You, or a lawyer, may file a motion to set aside, suppress, or void a writ of garnishment due to a lack of jurisdiction or unlawful bases. You can challenge the writ by stating that you never owed the debt to begin with, or that the statute of limitation to collect it has expired. You can also argue for inaccuracy, or that an improper person is identified as the debtor.

When settling, make sure you get a release to prevent the creditor from trying to collect the difference. Moreover, get a satisfaction of judgment letter. This document tells the court that the debt has been paid in full.

If the debt is too big and your negotiations fail, you can file bankruptcy. After initiating a bankruptcy, you must let your employer, the creditor's attorney, and the levy officers know by sending them a copy of the voluntary petition. This will stop the wage garnishment. For more information on wage garnishment, check Title 111 of the Consumer Credit Practice Act.

Mark Clayborne is a Certified Credit Consultant with ten years of experience assisting consumers with credit issues. If you liked this article, then please sign up to read the first chapter of Hidden Credit Repair Secrets and get a Free Restore your Credit E-class at http://www.hiddencreditrepairsecrets.com This article may be freely reprinted or distributed in its entirety in any Ezine, newsletter, blog, or website. The author's name, bio and website links must remain intact and be included with every reproduction.

How Long Does Negative Information Stay on Your Credit Report

What is a credit report and why is it important?
Your report is a snapshot of your payment history. It details when you applied for credit, how many positive and negative accounts you have, who viewed your report, and all of your personal information. Reviewing your report every four to six months gives you a chance to check for identity theft, inaccurate accounts, and incorrect information. It allows you to manage your financial situation before applying for a credit card, auto loan, bank loan, mortgage loan, employment, or insurance. For example, if you check your credit and notice that there were a few negative items on your report, you will have a chance to fix those items before applying for credit. By doing this, you avoid embarrassment and several inquiries, which lower your credit score.

How Long Does Negative Information Stay on Your credit file?
Every month, the creditors and collection agencies that you have accounts with?will report positive and negative information to the credit bureaus through a computer tape monitoring system that is updated regularly. The credit bureaus then turn around and update the information. A third-party company normally passes public record information onto the credit bureaus.

When does negative information come off my credit file?
Each negative item has a federal statute of limitation on when it must drop off your credit report. Once the statute of limitation has expired, the item must be deleted from your credit report according to the Fair Credit Reporting Act.

Federal Statute of Limitations

Late payments:
Once you become more than 30 days late on any of your bills, the financial institution that you hold the loan with will disclose your late status to the credit bureau. You can be reported as either 30, 60, or 90 days late, and by law, the late marks will remain on your credit report for seven years.

Inquiries:
Whenever you apply for a credit card or a loan, your report is checked, which results in a hard inquiry. These inquiries could damage your credit score if you have more than six in two months. They can also stay on your credit report for up to two years.

Charge offs:
These are debts that the creditor felt that they could not collect on anymore after 180 days, so they charged them off as a bad debt. However, the creditor can still sell the account to a third-party collector for collection purposes.

Judgments:
If a creditor takes you to court and sues for a judgment, this destructive item will be placed on your report. The courts issue judgments that can stay on your report for up to seven years, but it can be renewed until it is paid or until it reaches the 20-year mark. See appendix for your state statute of limitation on judgments.

Child support:
If you stop making child support payments, it becomes part of your public record and will therefore show up on your credit report. This negative mark can stay on your report for up to seven years.

Foreclosure/Repossession:
Foreclosures take place when you default on your home mortgage and the bank takes the house back. Repossession is when you can no longer pay your car note, and the lender confiscates?the vehicle without your permission. Both create negative marks that will remain on your credit report for seven years.

Tax liens:
Tax liens are public records that will find their way into your credit report if you default on your tax liability with the IRS. Paid tax liens will stay on your credit report for seven years, but while owed, they can remain on your record forever.

Collection:
If you see an old account on your credit report under the collection trade line, this is a bill that was sold or assigned to a collection agency. It was passed onto the collector from your original creditor because you refused to pay. These debts can legally stay on your credit report for up to seven years, but you cannot be sued for it after the state statute of limitation has expired. See appendix for the state statute of limitation on revolving accounts.

Bankruptcies:
Your credit report will list the date you filed for bankruptcy and the time it was discharged. A Chapter 7 bankruptcy can remain on your credit report for ten years, and a Chapter 13 bankruptcy will remain on your credit report for seven years.

To answer your question on how long does negative information stay on your credit report various by the type of negative information on your report.

Mark Clayborne is a Certified Credit Consultant with ten years of experience assisting consumers with credit issues. If you liked this article, then please sign up to read the first free chapter of Hidden Credit Repair Secrets and learn more on when negative accounts falls off and get a Free Restore your Credit E-class at http://www.hiddencreditrepairsecrets.com This article may be freely reprinted or distributed in its entirety in any Ezine, newsletter, blog, or website. The author's name, bio and website links must remain intact and be included with every reproduction.

Charge Off Account - Killer Tips on Dealing With a Charge Off Account

You might disagree, but hear me out on this one. There are many things you need to know about a charge off account. Most consumers when they have an account in that stage, they just give up because they feel that they don't have a chance to make things right. But, with these killer tips you will have a better understanding on the concept of a charge off account.

Killer tip one - Can you tell me how to avoid them?

When the bank can no longer collect on a debt, it writes of the account as a bad debt, which is called a charge off. Allowing your account to fall so far behind that it turns into a charge off account will not only damage your credit score further, but also it will also cause you other financial problems.

• Ask the bank to suspend the late payments until you catch up.
• Ask the bank about hardship programs.
• Ask the bank to freeze your account until you can catch up with your payment.
• If you have the money, try to settle your debts for pennies on the dollar.

Killer tip two - What happens if I'm approaching the 180-day deadline?

If you don't resolve your delinquent account before 180 days, the account will take one of the following courses:

• Write the account off and the lender will take a tax write off. If the debt is more than $600, then the lender is required to send you a 1099-c with the amount charged off account amount and report the debt to the IRS. The IRS considers the charged off account as a gain to you, therefore you must pay income taxes on it.
• Sell or assign your debt to a collection agency
• Assign the debt to their prepaid legal department for a possible lawsuit.

Killer tip three - How do I deal with it if it's on my account?

Dispute the information inside of the negative account listing, for example, the date the account was open, the high balance, or the amount owed. If any of the information is incorrect, you have a good chance of getting it deleted by contacting the creditor and negotiating to have the adverse information removed. If you were not able to get the item removed, take the paid as agreed indication. After paying the debt, start your basic dispute method. During your dispute process, the negative item you just settled will be easy to come off because the creditor is already paid.

Killer tip four - Even though the account is charged off, can the creditor still collect money owed?

Yes, just because the account is charged off does not mean the creditor can't come after you. They can still employ a third - party collection agency to collect the debt from you.

Ok, now you understand the various ways you can stop this negative account, and how it could damage your credit report if you do nothing. Take this information and apply it to your situation when it comes to a charge off account.

Mark Clayborne is a Certified Credit Consultant with ten years of experience assisting consumers with credit issues. If you liked this article, then please sign up to read the first chapter of The Credit Repair Book/HCRS and get a Free Restore your Credit E-class at http://www.hiddencreditrepairsecrets.com This article may be freely reprinted or distributed in its entirety in any Ezine, newsletter, blog, or website. The author's name, bio and website links must remain intact and be included with every reproduction.

Suing Credit Bureaus - Discover the 7 Violations Credit Bureaus and Creditors Could Be Sued For

Collection agencies, creditors, and credit bureaus know that most consumers will not sue them in court because of the time and expense required. As a result, agencies often take advantage of the average person by violating the consumer laws put in place to protect you. However, with a little knowledge on how the law and the small claims court system work, you can turn the big agencies bad ways against them and make them follow the law. If the credit bureau violates any of the four laws, talk with a lawyer about a possible lawsuit.

Suing the credit bureau - First cause of action

If the bureau refused to correct information on your credit report after being provided with proof, you can sue them for defamation and willful injury. (FCRA Section 623). Recovery-extent of damages incurred by the wronged party, as deemed by the courts.

Suing the credit bureau - Second cause of action

If the bureaus re-insert a removed item from your credit report without notifying you in writing within five business days, you can sue them for violating FCRA Part (A)(5)(B) which carries a fine of $1000.00.

Suing the credit bureau - Third cause of action

If the bureaus fail to respond to your written disputes within 30 days, a 15-day extension may be granted if they receive information from the creditor within the first 30 days, you can sue them for violating FCRA Section 611 Part (A)(1) which carries a fine of $1000 per violation.

Suing the credit bureau - Fourth cause of action

If a creditor or bureau tries to re-age your account by updating the date of last activity on your credit report in the hopes of keeping negative information on your account longer, you can sue them for violating FCRA Section 605, which carries a fine of $1000.00 per violation.

As a bonus I'm proving you with the following laws if the creditor violates any of the following laws, they could be sued in court.

Suing the creditor

You are well within your rights to sue the creditor if they violate any of the following laws under the FCRP/FDCPA:

First cause of action

If a creditor reports your credit history inaccurately, you can sue them for defamation, and financial injury. See US Court of Appeals, Ninth Circuit, No. 00-15946, Nelson vs. Chase Manhattan for precedent. This violation carries a fine of $1,000.00 per violation.

Second cause of action

If you dispute a debt with the creditor, and they fail to report the dispute to the credit bureaus, they will be in violation of Section 623, which carries a fine of $1,000 per violation.

Third cause of action

If the creditor pulls your credit report without your permission, you can sue for injury to your credit report and credit score, which carries a fine of $1,000.00. (FRA Section 604 (A)(3).

Concluding, education, and action is the key to getting the credit bureaus to stop violating your rights and follow the law. Every day the credit reporting agencies are breaking the law because they know that most consumers with bad credit are unaware of these four laws. But, now that you know how to fight back with your new weapons, hold the bureaus accountable if they violate the law.

Mark Clayborne is a Certified Credit Consultant with ten years of experience assisting consumers with credit issues. For more powerful secrets on credit repair, debt settlement, stopping collectors, rebuilding your credit, and raising your score, please read the first chapter of The Credit Repair Book and get a Free Restore your Credit E-class at http://www.hiddencreditrepairsecrets.com Article Source: http://EzineArticles.com/?expert=Mark_A_Clayborne

How to Raise Your Credit Score In 5 Easy Steps

Ever wonder how a particular person raised their credit score to 750. Well, I used to ask myself that same question until I started applying the five sure killer steps to my situation. Once I started using these techniques, my three digit number started increasing overtime.

How to increase my credit score step 1- Ask for a credit increase

Ask your creditor to raise your limit that way it will reduce your balance and give you a slight bump up in your score.

How to increase my credit score step 2 - Apply for credit sparingly

Don't apply for many accounts in a short period of time because the credit bureau will send a Trans Alert to the creditors informing them that you have applied for multiple accounts.

How to increase my credit score step 3- Re-aging

Ask your creditor to re-age your account to improve your credit score. This method is the process by which your creditor agrees to forgive your late payment history and reclassify your account as up to date. You must qualify for re-aging according to (FFIEC) Federal Financial Examination Council and must establish and follow a policy that requires you to demonstrate a renewed willingness and ability to repay the debt. The account must be at least nine months old, and you must make three consecutive minimum monthly payments.

How to increase my credit score step 4 - Rapid re-score

In this method, the lender will review your credit report and tell you which item needs to be paid off or fixed. You will then pay off the negative items and get proof from the creditor. You then give the proof to the lender who will give it to the third - party vender who passes the information to the credit bureau. The bureau will then update your credit report reflecting your new credit score. This strategy is used primarily when you are trying to get a home. This feature is offered by a third - party vender, and the company is contracted by the credit bureau, not to offer the service to the public, but only to mortgage brokers.

How to increase my credit score step 5 - Have the credit bureaus add new accounts

Ask the credit bureau to add any account with a payment history that is not reflecting on your credit report.

Concluding, raising your credit score is not an easy task because it takes education, time, money and patience. Remember the saying that Rome was not built over night. This concept also applies to your three digit number. Now that you are empowered with additional education, gout there and take action.