Making sure your credit report is correct

Q. How do I read my credit report? A. Once you've ordered and received your credit report, the next step is to understand it and make sure it is correct. Your credit report is a history of your debts and how you have paid them, and you should review it carefully. Each consumer reporting company arranges its reports in a slightly different format, but all the reports have similar groups of information and share some basic categories. You will see: Personal Information: including your name, address, Social Security number, date of birth, and current employment. Credit Account Information: listing all the credit accounts you have opened in the last seven to 10 years-sometimes longer. It includes accounts that are currently active and closed accounts. You will see specific information, including: - account number; - creditor's name; - current balance; - date the account was opened; - timeliness of payments; - number of late payments; - credit limit or loan amount. A consumer reporting company may separate this information into "accounts in good standing" and "accounts past due." Be sure everything in your credit report is correct; down to the letter and number. Are account numbers correct? Is the payment history up to date? Check the report against your own records. Even small mistakes can cause big headaches later on. Inquiries: listing all companies and individuals who have asked to see your credit history. There are two types of inquiries. Hard inquiries, which you initiate, include applications for credit, housing, or loans. Creditors, employers, insurance companies, or landlords can see the hard inquiries when they evaluate your creditworthiness. Soft inquiries are created when companies look at your report before they send you a pre-approved offer, when you request your credit report, and when your existing creditors monitor your account. You are the only person who can see soft inquiries, and they do not have an impact on your creditworthiness. Public Records: These records stay on your report for different lengths of time: - tax liens; - foreclosures; - bankruptcy files; - unpaid court judgments, including child support judgments; - criminal convictions. Many people are surprised to find accounts they thought were closed are still listed as open. If you find this, contact the creditor and officially close the old, inactive account. Q. What are some common errors I might find on my credit report? A. Information on your credit history comes in from many different sources. Each CRC may have slightly different information or even slightly different mistakes in your report, so it's important to check all three companies' reports. Remember: serious errors on your report can affect your ability to get a loan, a job, or insurance, and could make you pay a higher interest rate to borrow money. As you read the reports, look for: Information that is about you, but includes mistakes: - misspellings or numerical mistakes in birthdates or addresses; - the same loan listed more than once; - a lack of positive information; for example, that you paid up a delinquent account, or resolved a legal matter; - accounts that are closed but are listed as open. - Information that does not belong on your report: For example, information about Mr. Johnson Sr. might be included in the report for Mr. Johnson Jr., or Rob Smith's information might be included in Robert Smith's report. Information that is about you, but is not current and should be removed include old addresses, employers, or a previous spouse's information. Q. How long can a CRC report negative information? A. Only the passage of time will remove most accurate negative information. Most accurate negative information remains for seven years. Information about a lawsuit or an unpaid judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer. Bankruptcy information can be reported for 10 years. There is no time limit for reporting information about criminal convictions. Q. What can I do about errors on my report? A. You can dispute information for free. 1. As soon as possible, write to both the CRC and the person or company who gave the information to the CRC. If the problem is with your credit card, write to the credit card company. Include your full name, address, and clearly identify every item you dispute. Explain the facts and what information you think is inaccurate. Ask them to cancel or delete the information. Send copies, not originals, of documents that support your position. Send the letter by certified mail, return receipt requested, for proof that the CRC got the letter. 2. Usually, the CRC must investigate within 30 days and send copies of your dispute to the information provider. The information provider (for example, your credit card company) must investigate, and send results to the CRC. If the information provider finds that the information was wrong, as you claimed, it must notify every national CRC. Then, the incorrect information must be deleted. 3. When the investigations are over, the CRC must give you written results and a copy of your report, if they made changes because of your dispute. This free report does not count as your annual free report. You can ask the CRC to send a correction notice to anyone who got your report in the last six months. If an item is changed or removed, the CRC cannot put it back in your file-unless the information provider can prove that the information is accurate and complete. Even then, the CRC must give you written notice. Q. What if the CRC or information provider won't change the item I dispute? A. You can ask the CRC to include a statement of the dispute in your file. It will appear in future reports. You can also ask the CRC to send your statement to anyone who got a copy of your report recently, but there may be a fee for this. If you tell an information provider that you dispute an item, your dispute notice must be included each time the information provider reports the item to one of the CRCs. Q. Who can help me fix problems in my credit report? A. No one can legally remove accurate, current negative information from your report. Everything a credit repair company will do for a fee, you can do yourself for low cost or no cost. Don't believe the companies who offer to 'erase bad credit', 'create a new credit identity', or 'remove bankruptcies & judgments from your file forever.' Companies that promise to clean up your credit report for money cannot make good on the promise. The money you pay these companies will be lost forever, and your credit report will not be repaired. If you decide to get help with your report, choose a company that obeys the law. Under law, credit repair companies must give you: - a written contract listing your rights and obligations; - an explanation of the total cost of services; - a description of the work they will do; - a statement of any guarantees they make; and - the full company name and address. Watch for danger signs when you choose a company. Avoid a company that: - charges you for services before they complete the promised services; - starts doing work for you before you have signed a written contract and waited 3 days. During the 3-day period, you can cancel the contract without paying any fees; - does not explain your rights and what you can do for free; - says you should not call the CRC yourself; - urges you to invent anew' credit report for yourself by applying for an employer identification number to use instead of your Social Security number. It is illegal to apply for an employer identification number under false pretenses, and to buy a new Social Security number.

Get on the road to financial recovery part i

What You Can Do for Yourself Review your specific obligations that creditors claim you owe to make certain you really owe them. If you dispute a debt, first contact the creditor directly to resolve your questions. If you still have questions about the validity of the debt or the collection practices, contact your state or local consumer protection office or state Attorney General. Contact your creditors to let them know you're having difficulty making your payments. Ideally, this should be done before a payment is late or missed. Tell them why you're having trouble -- perhaps it's because you or a spouse recently lost a job or have unexpected medical bills. Try to work out an acceptable payment schedule with your creditors. Most are willing to work with you and will appreciate your honesty and forthrightness. Many have "hardship programs" which provide for adjustment of payments for a period of time. The Fair Debt Collection Practices Law prohibits a debt collector from showing what you owe to anyone but your attorney, harassing or threatening you, using false statements, giving false information about you to anyone, and misrepresenting the legal status of your debts. Remember that under other federal laws to collect debts, creditors cannot seize most government assistance and can only garnish a portion of wages to collect debts. Budget your expenses. Create a spending plan that allows you to reduce your debts. Itemize your necessary expenses (such as housing and health care) and optional expenses (such as entertainment and vacation travel). Start a savings plan so that funds are available for unforeseen but essential expenditures. Stick to the plan. Try to reduce your expenses. Cut out any unnecessary spending such as eating out and purchasing expensive entertainment. Consider taking public transportation rather than owning a car. Clip coupons, purchase generic products at the supermarket, and avoid impulse purchases. Above all, stop incurring new debt. Consider substituting a debit card for your credit cards. Use your savings and other assets to pay down debts. Withdrawing savings from low-interest accounts to settle high-rate loans usually makes sense. Selling off a second car not only provides cash but also reduces insurance and other maintenance expenses. Look for additional resources from governmental and private sources for which you may be eligible. Government assistance includes unemployment compensation, Aid to Families with Dependent Children (AFDC), food stamps, low-income energy assistance, Medicaid, and Social Security including disability. Other resources may be available from churches and community groups. Often these sources are listed in the Yellow Pages of your phone book.

Top 10 ways to repair your credit score

You must never underestimate the value of having good credit. You will definitely need your credit score in the future. For example if you are a student, you’ll need to borrow a certain amount using a student loan in order to attend school. At this point, your credit history will definitely matter and will have a big impact on getting you the funds that you need. If you are applying for a student loan, your creditor or the lending institution will probably request a copy of your credit report and the credit score, which comes from an authorized credit-reporting agency. This will help identify your credit criteria and will determine if you are qualified for a loan. And if you are, your credit score will influence what interest rate you will be paying for the funds. You must be able to demonstrate good credit to be approved by most of the private student loans. This also applies to the loans you might need such as auto loans, business loans and mortgages. Here’s what you can do to keep your credit score high and your credit good. 1. Make your payments prompt and timely. Make sure that you don’t miss any deadline. 2. Pay the minimum monthly payments. This will repair your credit score remarkably. 3. Limit the number of credit card accounts you have open at any one time. 4. Maintain available credit on your open accounts. 5. Request a copy of your credit report at least once a year from each of the three national credit-reporting agencies. 6. Check your reports for errors. You must clear up any errors that do appear in your report right away, time is critical in this. 7. Don’t open multiple accounts all at one time, especially if your credit history is not good. This tends to look a bit risky to lenders because you are taking on a good deal of possible debt, all at once. 8. Remember that you must know how to prioritize your needs. Leave those credit cards that are not needed aside for a while. Then after you have recovered from all the other debts, you can add these cards back into your wallet. The new accounts will lower the average age of your account and this is something that counts toward your FICO score. 9. Don’t open accounts that are not necessary. They will just be a burden. Even if you have a very high income, you can still encounter some difficulties. 10. Make sure that you don’t close accounts with the thought that the account will be removed from your record. That will not help at all. Closing accounts can sometimes even hurt your score.

Perks of citibank credit card

Citibank credit cards offer a wide range of benefits. Basically, all of it features offer clients with security during emergencies, the advantage of not bringing cash and checks, and improving independence and responsibility in financial management. Other than these basic perks of credit cards, there are specified benefits the Citibank credit cards have to offer. Here are some of the credit cards and their corresponding perks: 1) Diners club international credit card. This kind of credit card provides you with the decision of your own credit limit. The interest rates would not show on your bill for fifty days. Since this Citibank credit card could be used all around the world, it gives you the privilege of using it within five million companies worldwide. The ATM card could be used anywhere in the world. And lastly, there is no extra fee when the Citibank credit card is lost. 2) The Citibank Gold Card. This kind of Citibank credit card provides you with a higher credit and cash limit. It offers you access on international lounges and airports. It has a strong and secured insurance. And there is no fee when the credit card has been stolen, lost or damaged. 3) Jet Airways Citibank International Gold Card. This kind of credit card allows the cardholder to take advantage of jet privileges and promos on jet miles when you make use of the credit or cash. When you have been approved with this kind of credit card, you will be automatically given a jet airways ride of 1500 miles. Plus, the services and credit card is insured. 4) The Citibank Silver Card. This kind of credit card has several kinds of insurances like personal accidents, baggage and household insurances that would cover up your expenses. There are also occasional discounts on certain stores and zero costing on lost credit cards. 5) The Citibank Woman’s card. This kind of credit card targets the women. It provides women with discounts on jewelry, cosmetics, health products, clothes and many shopping stores. It also provides jewelry insurance and there is no extra fee when the Citibank credit card is lost. 6) Specialty cards. There are Citibank credit cards that provide you specifically with music and book stores usage, gives you an advantage on concerts and movie passes, and could give you discounts on oil transactions. These kinds of credit cards would depend on which you apply for and use regularly. With those numerous advantages, you will surely wonder how you were able to get along without it.

Credit card minimums not doubling but might still hurt

: Executives at Debt Shield, Inc., a Maryland-based debt settlement firm, said that the increased minimum monthly payments on credit card balances will most likely not double, as it is widely reported, but that the increase might push financially struggling cardholders into bankruptcy or bankruptcy alternatives, like debt settlement. “While credit industry experts and the media claim that credit card companies are doubling their minimum monthly payments from 2% of the outstanding balance to 4%, the actual minimum payment increase is more complicated and less drastic for most cardholders,” explains Mark Baylis, President of Debt Shield. “The new rules require credit card banks to set their minimum payments to cover all interest and fees plus 1% of the outstanding balance, which will result in significant increases for high-interest accounts.” Baylis said that a cardholder with $10,000 on a credit card at 18% Annual Percentage Rate (1.5% monthly) pays $200 under the 2% minimum requirement. Out of that $200 payment, $150 (1.5%) goes towards interest and only $50 (0.5%) goes towards the outstanding balance. Under the new rule, the minimum payment will increase so that the amount applied to the outstanding balance in this example is at least $100 (1%), so the minimum monthly payment must increase by $50 (0.5%) to $250 (2.5%). The average APR is currently just under 14% (1.17% monthly), but credit card companies increase the APR to 27% or higher if the cardholder makes one late payment. This means that the reality of the new rule will punish low - to medium-income families struggling with credit card debt more than high-income families who are able to avoid paying late. Baylis said that even a small increase can have drastic consequences for families struggling to make the existing payments and manage inflation combined with stagnating income. The MMP on a credit card debt with the above-average 18% APR will increase by $50 while the same $10,000 debt with a 27% penalty APR will increase by $75. Also, the 27% APR charges $75 more in monthly interest than the 18% APR. Baylis said that this clearly demonstrates the financially destructive power of high interest rates. “The increased minimums will be good in the long term because it should encourage less debt,” Baylis continued. “But if the credit card companies want to help consumers, they need to stop punishing cardholders with outrageously high interest rates.” About Debt Shield, Inc. Debt Shield, Inc., is a debt settlement company dedicated to helping consumers resolve their unsecured debt through mutually agreeable and discounted lump sum settlements in consideration of legitimate financial hardships. By helping consumers avoid bankruptcy, Debt Shield provides a service for both debtors and creditors. For more information about Debt Shield, call 1-888-397-7546 or visit the website at debtshield.

Secrets of credit repair

Rick Miller: Helping Credit Ridden Individuals Recover from Debt Millions of individuals all around the world are in over their heads in debt. Debt can turn an individual or their family’s life upside down. Without the proper help from experienced professionals, many individuals only end up cause more damage to their credit. Individuals or families in debt run the risk of loosing their home, vehicles, or other assets. Many of those who do not own a home or other obtainable assets are likely to never be able to own one. All of the debt that an individuals owes appears on a credit report. Credit repots are used by financial institutions when a loan has been requested. The higher the score is the better looking your credit appears and visa versa. Many individuals or families with a large amount of debt have a low credit score; therefore, they are generally unable to receive loans or credit cards. There are numerous groups, individuals, or products on the market that are designed to help individuals dig their way out of and recover from debt. Although these products are available, there are still thousands of individuals that choose not to receive assistance. It is true that some individuals may be able to recover from debt on their own; however, it will likely take a large amount of time and stress. Lets face it, some individuals are just too ashamed to ask for help. If you are one of those individuals, a man by the name of Rick Miller may be able to help. Rick Miller is a former manger of a credit bureau; therefore, he is familiar with the ins and outs of making your way out of debt. Mr. Miller has developed a credit repair system that, if used effectively, is proven to help improve your credit score. His credit repair system is unlike any other on the internet. He has the history and work experience to back up this claims and helpful tips. If you unsure if purchasing this credit repair system is the best choice for you, sign up for the free newsletter that is offered and keep on reading. The Federal Trade Commission, commonly referred to as the FTC, is an a federal program that tries to operate in the best of businesses and consumers. The FTC also offers resources for individuals or businesses who are trying to escape from their growing debt. Credit counseling programs are designed to help individuals recover from debt by working with creditors to eliminate interest rates and possibly develop a monthly payment plan. These credit counseling programs are often non-profit and generally offer debt ridden individuals assistance; however, there are a lot of programs that are scamming individuals who are only seeking help. On their website, the FTC warns individuals of fraudulent credit counseling programs. Although many credit counseling companies are legitimate, using the wrong company can land you in more debt that you were in before. For a small investment, the credit repair system developed by Rick Miller can help you improve your credit score often in record times. His credit bureau experience has allowed him to learn secret tips for removing bad credit from your credit report. With the help of Mr. Miller you can learn ways to obtain your free credit report and effectively learn how your credit report is translated into a credit score. In addition to this helpful information, you will also learn ways to reduce your debt and ways to keep you out of it. Debt can cause stress, health problems, and even tear an otherwise healthy family apart. If you are suffering from debt, do not suffer any longer than you have to. Obtain assistance today.