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Credit Solutions
Credit Score
Sample Letters
Our Sponsors
Major Credit Bureaus
RealNova
Credit Improvement Module
Our purpose
is to provide business owners and consumers with detailed information that assist
them in improving their credit scores, and to offer another credit alternative to
prevent consumers from falling victim to costly credit repair scams. The
information we provide will equip you with important credit information and
allow you the opportunity to improve your credit yourself. We are not a credit
repair company. We only offer very minimum consulting to you at your option.
Our main goal is to assist you in navigating through the credit score
improvement process.
You have now taken the first step to improving your credit score. The
information you are about to read will improve your financial situation
immediately, if applied successfully.
Topics Of Interest
How To Use This Credit
Improvement Information
Credit Ratings and Report
Credit Bureaus
What Your Credit Report Reveals
Public Records: Bankruptcies, tax
liens, judgments and other filings
Obtaining a Copy of
Your Credit Report
Knowing Your Legal Rights
Repairing Your Credit
Prepare a written
protest to the credit bureau
Keep a calendar
Send a follow-up letter
Request an updated credit report
Compare the new report
with the prior report
Repeat the process
Gaining Creditor Cooperation
Study all the facts
concerning each account and the nature of the negative ratings
Contacting the
creditor by telephone
Confirming an
Agreement with a Creditor to Change or Update a Negative Rating
Confirming an
Agreement with a Creditor to Pay Your Debts and Have Your Positive Credit Rating
Restored
Present a “win-win” offer
Obtain an “open account” status
Confirm your agreement
in writing
Honor your agreement
Verify your credit upgrade
Trying again
Dealing With Serious
Credit Problems
How Credit Clinics Can
Ease Bad Credit
Bolstering Your Credit Record
Tax Liens and Your Credit Rating
Make sure the IRS
sends you a Certificate of Release for each tax lien
Conduct a complete lien search
Review your credit report
Add a Consumer
Statement to your credit report
Add a Consumer Statement
Challenge a bankruptcy
How To Use This
Credit Improvement Information
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It is the goal of this Credit Improvement
System to assist you in improving your credit conveniently, efficiently
and economically. Nevertheless, it is important for you to properly use
this System if you are to avoid future problems. Always follow these
instructions:
1. Carefully read
all information, warnings and disclaimers concerning the forms in this System.
If, after
thorough examination, you decide that you have circumstances that are not
covered by the forms in this System, or you do not feel confident about
preparing your own documents, then you should consult with an attorney
immediately.
2. Follow
the format recommended in the Sample Credit Improvement Correspondence. Do
not omit information.
3. Always
use a pen or type on the documents. Write neatly or print. Never use
a pencil.
4. Avoid
reassures and “cross-outs” on final documents.
5. Correspondence
forms should be reproduced on your own letterhead. You can create your own
letterhead simply by typing or printing your name, address and telephone number
on the top/center of the form, as shown below.
[YOUR NAME]
[YOUR ADDRESS]
[CITY, STATE, ZIP CODE]
[TELEPHONE NUMBER]
6. Whenever
the documents are to be executed by a partnership or corporation, the person
signing should also print his/her name and title.
7. Always make
copies of your important documents. If you do not have access to a
photocopier, keep a copy of your draft, or make another copy yourself.
Store all-important documents in a safe place and in a location known to your
spouse, family, personal representative or attorney.
Credit Ratings and Report
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Since many of the things we want to buy must be financed or bought on credit,
good credit is essential. A vast network of credit reporting agencies
keeps track of every American who does business or buys on credit. Each
time you apply for credit through a bank, store or credit card agency, the
prospective lender typically checks your credit with one or more of these
agencies before issuing you credit. If your credit becomes bad, it is
nearly impossible to avoid detection.
Credit Bureaus
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There are many credit bureaus in the United States, but only three large
regional bureaus – Equifax, Experian and Trans Union. The largest,
Experian (formerly known as TRW), has processed over 35 million credit reports
in the last year and boasts 50,000 business subscribers.
Many businesses and potential creditors pay to obtain your credit information
contained in credit bureau files. These businesses rightfully believe that
the information contained in your credit file is a good indication of your
creditworthiness. How you have paid other creditors in the past is an
indication of how you may act in the future. The businesses also use the
credit file to verify information on your credit application.
Businesses that most often deal with the credit bureaus are the commercial
banks, credit card companies, larger savings and loans, major department stores
and finance companies. Utilities, hospitals, credit unions, oil company
credit cards and checking and savings account information deal with credit
bureaus less often.
Usually the same businesses that receive information about you also provide
information to the credit bureaus. When you submit a credit application to
one of these businesses, the information in your application is forwarded to a
credit bureau so that your credit file may be updated. The transfer of
account information involves sending the credit bureau computer disks that
contain account information and any changes and additions to be made to your
credit file every month or quarter. This practice is intended to ensure
that the credit bureau’s file are accurate and up-to-date. However, not
all businesses report what they know about you to the credit bureaus, (And of
those that do, not all report the entire contents of their files.
Therefore, your file may be incorrect or out of date.)
What Your Credit Report Reveals
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Credit reports may vary slightly between agencies; however, most credit reports
include personal identification information, account information, information
obtained in public records, information about credit report request and a
consumer statement.
Personal identification information:
Your full name; your last two addresses; your social
security number; your date of birth; and your place of employment. Length
of employment and income may not be reported. Please note that if you are
self-employed, a credit bureau may incorrectly list you as unemployed. You
will need to contact the credit bureau and instruct that your file be corrected.
Account information:
Credit issuer’s name; opening date of account; original balance/limit; current
balance; terms of account; and the current status of the account. A
specific code system is used to describe the status of each item.
Public Records:
Bankruptcies, tax liens, judgments and other
filings
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Credit report requests:
Each time a creditor requests a
copy of your report, it
is recorded in your report. If numerous requests are made and no
subsequent accounts are opened, other potential creditors may assume that your
credit application was turned down. This may lead to some difficulty in
obtaining credit.
Consumer statements:
A brief (100 words or less) explanation of any entry in your credit report that
is written, and submitted to the credit bureau by you.
Obtaining a Copy of Your
Credit Report return
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Credit bureaus do make mistakes. Therefore, it is important to check your
credit report periodically so that inaccurate information can be corrected.
Information Required:
Credit bureaus routinely
require the following information: your full legal name; your current
address; your former address; your social security number; your date of birth;
and, if applicable, your spouse’s full legal name, social security number and
date of birth. You may call the credit bureaus to inquire about the
specific information they require at the telephone numbers listed on the
following page.
Fee if you have received a credit rejection within
the past 60 days:
None. Simply write a letter in the form of
Sample Letter Number 1 to the credit bureau
listed on the rejection letter and demand that the credit bureau provide you a
free copy of your credit report.
Fee if you have not received a credit rejection within the past 60 days:
$8.00. It would be wise to call the credit bureau to confirm that the fee
has not changed. Send a written request in the form of
Sample Letter Number 2
toh
of the credit bureaus listed below. Since the information compiled and
maintained by the credit bureaus differs, it is important to contact all three
credit bureaus, particularly if you suspect that incorrect or inaccurate
information appears in your credit file.
EQUIFAX Credit Information
Services
P.O. Box 740241
Atlanta, GA 303
1-800-685-1111
EXPERIAN Credit
Information Service (Formerly TRW)
955
American Lane
Schaumburg, IL 60173
1-888-EXPERIAN (397-3742)
TRANS UNION Corporation
P.O. Box 97328
Jackson, MS 39288-7328
1-800-916-8800
Knowing Your Legal Rights return
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The Fair Credit Reporting Act (FCRA), 15 USC Sections 1681 through 1681t,
protects you against credit abuse by granting you the following rights:
1. You
may challenge the accuracy of your credit report at any time.
2. The
credit bureau must “reinvestigate” anything you challenge within 30 days.
3. The
credit bureau’s 30-day period begins when the credit bureau receives your notice
of dispute, unless you send the credit bureau additional
information during the 30- day period. In that event, the credit bureau
may extend the deadline by 15 days.
4. If
the credit bureau cannot confirm the adverse information or finds any error, it
must promptly delete that erroneous information from your credit file.
5. If
the credit bureau cannot or does not confirm the information you have challenged
within a seasonable time period, it also must delete that information from your
files.
6. If
a creditor verifies the information and the credit bureau responds in a timely
manner, the negative marks will remain on your record. However, if you
maintain that the statements is inaccurate or incorrect, then you have the right
to submit a brief statement (called a “Consumer Statement”), that sets forth
your explanation of the credit dispute. Representatives of the credit
bureau are available to assist you in writing a Consumer Statement. Once
your Consumer Statement is finalized, it will appear on every copy of your
credit report that is sent out.
Repairing Your Credit return
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Review your personal information
Once you have received a copy of your
credit report, review it carefully. Check all spellings, numbers and
dates. Then proceed to the “Summary” or “Account Profile” section of your
credit report to determine whether it contains any negative information.
Locate the “Summary” or “Account Profile” section on your credit report.
This section contains a summary rating for each of your accounts. A
summary may be positive, negative, or non-rated for each of your accounts.
“Positive” means that your payments are all on time. “Negative” means you
have a serious credit problem such as having defaulted on a debt.
“Nonrated” means that you may have a few late payments, which could place you in
a weak position, even though there is nothing strongly negative in your credit
report. If you have any “Negative” or “Non-rated” ratings, then proceed to
the section containing negative history remarks. Negative remarks may
appear in the following four sections: Historical Status; Comments;
Inquiries; and Public Records. Make sure you review them all.
..Locate the negative history
remarks.
..Highlight or circle all of the negative remarks in your credit file.
..Locate the key to the coding symbols.
..Familiarize yourself with the coding symbols.
..Compare the highlighted or circled negative remarks to the coding symbols.
To fully repair your credit,
you must protest, and eventually remove, all negative or
non-rated profiles.
Prepare a written
protest to the credit bureau
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To repair your credit,
you must challenge any negative remarks that appear in your credit file.
You have the right to dispute any citation on your report if the information
contained in that citation is inaccurate or incomplete. (Fair Credit
Reporting Act 15 USC Section 1681). The only limitation to your dispute is
that it should not be “frivolous or irrelevant.” To begin preparing your
written protest, refer to the
Sample letter Numbers 3 and 4.
Remember to use a pen or type your letter and
avoid erasures and “cross-outs.” Use photocopies of each document as
worksheets, or as final copies. Create your own letterhead, as instructed
previously.
Do not try to explain
all of the negative ratings in one attempt. Carefully list each negative
rating that you want to challenge. Next, set forth an explanation for or
comment about each negative rating. Even if the explanation is the same
for all negative ratings, it is more effective if you repeat the same
explanation several times for each negative rating. Be sure to include
photocopies of any documents you provide to support your claims. These
might include correspondence with your creditors, canceled checks indicating
payment, receipts or other documents. Explanations for negative ratings
could be: that your debt was satisfied and therefore should not be
reported as a charge off; that the debt was paid, but the creditor failed to
note this in your credit report; that a payment was delinquent due to a mix-up
with the post office. For example, you change your address and bills were
not received even though a change of address was furnished; or something else.
Make a copy of your letter for your records. Send your letter certified
mail with return receipt requested so that you can be sure the bureau receives
it. It is also a good idea to include a copy of your credit report to make
sure the bureau checks the right file. Refer to
Sample Letter Number 3 when your credit report
contains incorrect information. Refer to
Sample Letter Number 4 if you are demanding a
corrected and updated credit report.
Keep a calendar return
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As soon as you mail your letter, log the date for each negative rating that you
have protested. Keep related disputes together in a file with a copy of
the letter, the credit report and any other documents that you include with it.
Also calendar the date that the response is due. By law, credit bureaus
must respond within 30 days.
Send a follow-up letter
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If the credit bureau does not respond within 30 days, you should write a
follow-up letter. Point out that federal law requires the credit bureau to
respond to a consumer dispute within 30 days of the reminder, write a final
follow-up letter. Refer to
Sample Letter Number 6.
Failure of the credit bureau to respond in 30 days entitles you to have any
negative mark on your report deleted provided it was one that you challenged.
Since many creditors won’t take the time or effort to defend the negative entry,
you can eventually “repair” your credit through the default of your creditors.
Do not be discouraged if the credit
bureau does not respond. It is possible to eliminate negative marks simply
by going through this process of disputing the negative
ratings. If the credit bureau fails to immediately provide an
updated credit report, free of
the disputed entry, you may notify
the Subcommittee on Banking, Credit and Insurance and/or the Federal Trade
Commission. Both entities can bring legal action against the credit
bureau.
Request an updated credit report
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At the end of every letter that you send to the credit bureau, ask them to send
you an updated copy of your credit report. Also request that the credit
bureau send the updated credit report to anyone else who inquired about your
credit. 15 USC Section 1681j of the FCRA requires the credit bureau to
send a free notification of any updates to anyone who has received a copy of the
report during the six-month period prior to any corrections or addition to your
credit report. Note: Credit bureaus are not required to send a copy of
your entire report, but they will often do so because it is more convenient.
Compare the new
report with the prior report
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Most credit bureaus will send you an updated report. Compare carefully the
updated report with the original one. Mark all improvements that you find.
Highlight any negative rating that has changed to non-rated rating or any
non-rated or negative ratings that have changed to positive ratings.
Chances are that you will not get results on every protest the first time.
But some progress is likely.
Repeat the process
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If negative ratings remain on your credit report, repeat the process. If a
dispute about a negative rating results in a more negative rating than before,
do not be discouraged. Go back to the beginning of the process and start
again. You should put your credit record through this process at least
twice before going on to the next phase.
Be patient, but persist.
Remember that credit cannot be
rebuilt in a day. It takes patience and persistence. Also remember
that during this process you must be very careful not to allow any new problems
to appear on your record. Keep all your accounts current or pay ahead of
schedule.
Gaining Creditor Cooperation
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A credit bureau may not remove negative ratings if a creditor routinely
cooperates with the credit bureau’s request (s) for verification. In this
event, you will need the creditor’s cooperation to remove the negative ratings.
You will have to persuade the creditor to soften its stance by either toning
down or entirely deleting their remarks on your credit report.
Create an accurate record of your dealings with the remaining creditors who
still give negative ratings. List each creditor’s name, account number,
negative credit remarks and any documents, correspondence or notes you have on
your dealings with them.
Study all the facts concerning each account and the nature of the negative
ratings
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Write a letter to each creditor explaining your version of how the problem
arose. Be specific and give all the relevant details, including full
documentation. Be factual, but also appeal to the creditor’s sense of good
will. Perhaps your company went bankrupt suddenly or you lost your job.
Or perhaps you became ill and were unable to work. Remind the creditor
that you eventually paid the delinquent amount. Appeal to the creditor’s
compassion and request that the negative ratings be removed or that a statement
be included that the account is current. Do not use lame excuses for late
bill-payment habits. Use strong, compelling reasons. At the end of
your letters always thank the creditors for their time and consideration.
Refer to
Sample Letter Number 7.
Send the letter by
certified mail, return receipt request. Keep a copy of each letter.
Contacting the creditor by telephone
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If your creditor does not respond to your letters, use the telephone. This
will allow you to interact with the creditor in a more personal way.
Before you call, study the information you have gathered from your credit
report, your creditor’s responses, and the accurate record of negative ratings
that you compiled. Then write a sample outline of every point that you
want to make during your call. Try not to become angry. Remain calm
and be polite. If your first telephone call does not produce the results
you want, do not give up. Be persistent. Ask to speak to another
person or a manager. Different people will react to you differently.
By speaking to more than one person, you may find someone who will relate to
your problem more positively.
Confirming an Agreement with a Creditor to Change or Update a Negative Rating
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If a creditor agrees
that a change in the rating is justified, ask the creditor to agree on the
telephone that the change will be made in your credit status. Be certain
to obtain the creditor’s name and office address. After your conversation,
immediately send the creditor a letter confirming your agreement. Refer to
Sample Letter Number 9.
Send the letter, along with a self-addressed, stamped envelope. The
creditor should sign the letter and return it to you for your own records.
This letter is important if the creditor forgets to change your status or later
changes his or her mind about helping you. In that event, you can send the
letter to the credit bureau yourself to repair your credit.
Confirming an Agreement with a Creditor to Pay Your Debts and Have Your Positive
Credit Rating Restored return to top
If you have outstanding debts owed to a
creditor and the creditor has placed negative ratings on your credit report, you
may still be able to repair your negative credit. Write a letter to the
creditor, and express your interest in negotiating a repayment plan.
Explain sincerely your ability to make regular payments and pay off your debts.
If a particular circumstance led to your inability to pay, then you should
describe that circumstance, assure the creditor that it will not happen again
and repeat your desire to pay off your debts. Be specific and give all the
relevant details, including full documentation. In return, you are going
to ask your creditors to restore your positive credit rating.
It is always best to avoid having a debt turned over for collection. If
your account has been sent to a collection agency, deal first with the original
creditor. A collection agency receives a percentage of what it collects
from you so it may be less willing to negotiate. Rather, a collection
agency will try to get as much cash as possible from you. The creditor, on
the other hand, may have already given up any expectation of full payment.
By dealing with the creditor, you may have more flexibility to negotiate the
time or the amount to pay. If you cannot avoid negotiating with the
collection agency, use the following points. Which also apply to dealing with a
creditor.
Present a “win-win” offer
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Keep in mind that your goal is to trade money for a positive rating on your
credit report. Perhaps you can offer to set up a payment schedule in
exchange for a promise to improve your credit rating. For example, you
could agree to pay the entire amount owed in 12 monthly installments in exchange
for the creditor agreeing to recognize your new bill paying commitment with
better credit ratings. Be specific. Alternatively, you may agree
that after three months of punctual payments a negative rating could be raised
to a non-rating. Perhaps after six months of regular payments, the
non-rating could be lifted to a positive rating.
Obtain an
“open account” status
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Even if you are making regular payments, a potential creditor may react
negatively if your account is closed to further purchases. Therefore, when
you are negotiating an offer with your creditor ask him or her to reopen your
account while you uphold your end of the agreement. You can be very
persuasive if you offer to pay the entire debt perhaps with interest or a
service charge added.
Confirm your agreement in writing
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The “win-win” negotiation procedure can occur via a telephone conversation.
Once you have reached a verbal agreement, it is imperative that the agreement be
put in writing. Draft a letter that carefully lists all the points of
agreements. Refer to
Sample Letter Number 10.
Do not exaggerate, embellish or take any liberties. Then send the letter
along with a stamped, self-addressed envelop. Once the creditor signs the
agreement and returns it to you, it can become part of your credit record.
Honor your agreement
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Now that you have a written agreement, you need only fulfill it and your credit
rating will be restored. So be punctual. Make every payment on or
ahead of time. If your ability to meet the payment schedule in the
agreement is threatened by unemployment or illness, inform your creditor right
away, before you mail any payments. Discuss your plans for meeting the
payments with the creditor and explore ways to solve your temporary setback.
Verify your credit upgrade
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Remember to order an updated copy of your credit report to verify that the
creditor has honored his or her side of the agreement and made the promised
changes. Allow a reasonable time period from the date the creditor agreed
to make the change. If the changes have not been made, you should
immediately telephone the person with whom you made the agreement and remind
that person of his or her promise. If the creditor still fails to upgrade
your credit rating, then you can effectively dispute the information on your
credit report by sending the credit bureau a copy of the signed agreement.
Trying again
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If a creditor will not cooperate with you and the negative rating remains in
dispute, then a Consumer Statement may be the only tool that can work in your
favor. However, you should remain persistent. Wait a few months and
repeat the process. After a lapse of time, the situation may have changed.
You may find a more receptive person who is willing to help you regain a good
credit rating.
Dealing With Serious Credit
Problems
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If, in your financial past, you have
encountered serious credit problems, such as bankruptcies, court claims,
repossessions, or foreclosures, then these negative ratings may stick to your
credit report, even after you try every method discussed above. For these
serious credit problems, remain patient. You will be surprised at how much
you can accomplish through persistence. Be assured that as these events
drift further into
your past, they will become less
significant in your credit history. With the exception of a bankruptcy or
tax lien, any adverse information more than seven years old must be deleted from
your credit report. A bankruptcy or tax lien may remain on your credit
report for up to 10 years.
How Credit Clinics Can Ease Bad
Credit
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This unique Credit Repair System is designed to help you repair your bad credit
yourself. Credit clinics use the same process. They operate under
the same reasoning discussed above – that each item on a credit report must be
proven and that every negative rating on a credit report can be denied or
challenged at any time. Upon receipt of a denial or challenge, the credit
bureau must then reinvestigate. If the item cannot be reverified within 30
days, it is automatically removed from the file.
A credit clinic will instruct you to send a letter to the credit bureau similar
to those discussed previously. After a few months, the credit clinic will
have you send another letter to the credit bureau starting the process all over
again. These credit clinics understand the value of persistence.
They will encourage you to continue this process until all of your negative
items are removed. Should you tire of the process, the credit clinic will
recommend that you submit a Consumer Statement as discussed previously.
As you can see, you do not need to pay a credit clinic to repair your
credit. With this unique Credit Repair System you can easily and
inexpensively do it yourself.
Bolstering Your Credit Record
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The law remains unclear about adding favorable items to a credit report.
However, the FTC has advised credit bureaus that, where a report has resulted in
unfavorable action against you; you should be allowed to add to your credit
report, thereby creating a more complete and balanced picture of your credit
history. Consequently, most credit bureaus will, for a small fee, contact
any creditor you name and add that creditor’s information to your file.
The charge will usually run $2 to $3 per item.
If you have good credit with a
company that does not report to a credit bureau, then you should contact that
company. Inform them that you need your account information listed on your
credit report. Once they agree to release your account record, tell them
which credit bureau will contact them. Do this for each good credit
account you have. Next, send a letter to the credit bureau with your list
of non-reporting creditors. Refer to
Sample Letter Number 11. Request that the
credit bureau contact these creditors and add the items to your report upon
verification of the information. Once you have cleared your credit report
of as many negative ratings as possible and added all possible positive ratings,
you should have a new and improved credit report that will provide you with
future credit as needed.
Tax Liens and Your Credit Rating
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A
tax lien on your credit report will definitely hurt your chances when applying
for significant credit, such as a loan to buy a home, business, car, boat or any
other major purchase. It may also prevent you from obtaining credit cards.
Tax liens may not be erased from your credit report for 10 years. However,
a past tax lien is not as damaging as a current tax lien. It is important
to avoid having the IRS place a tax lien on your credit report. It is
equally important to ascertain that every credit bureau updates your credit
history to show that past tax liens have been fully paid and discharged.
Make sure the IRS sends you a Certificate of Release for each tax lien
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Once you have fully paid your taxes, the IRS must send to you a Certificate of
Release of Federal Tax Lien (Form 668Z) for each office that has a tax lien on
file. This may include the clerk of your city, town or county, the federal
district court nearest where you reside and wherever real estate transactions
for your locale are recorded. If you have moved, there may be liens filed
where you originally lived. There may also be several tax liens for the
same tax problems if the problems extend over several years.
Conduct a complete lien search
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To ensure that you obtain a Certificate of Release for each tax lien filed, you
must conduct a complete lien search. This can be accomplished by:
(1) requesting that the IRS send you copies of every lien the IRS filed against
you; (2) having a commercial lien search service review the public records; (3)
conducting your own lien search at the public recording office; or (4) reviewing
your credit report. Be aware, however, that a credit report may overlook
some tax liens.
Once you are satisfied that you have identified all the recorded tax
liens, make certain the IRS files a Certificate of release for each lien.
Do not assume the IRS will do this on its on accord.
Review your credit report
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For each recorded lien (not noted as discharged) you must insist that the
reporting agency contact the IRS or check the public records to confirm that the
lien has been released. You may also send the credit bureaus copies of the
Certificate of Release of Federal Tax Lien. Follow up with the credit
bureau to make sure your credit report reflects the discharge of all tax liens
against you.
Add
a Consumer Statement to your credit report
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If you are paying the IRS in
installments, then your credit report can reflect the
anticipated
discharge of your lien because an agreement has been reached with the IRS.
As discussed above, you can submit a Consumer Statement to the credit bureau and
insist that it accompany your credit report.
Challenge a tax lien
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As discussed above, it is possible to erase
negative ratings, including existing and unpaid tax liens by challenging the tax
liens. Follow the same process for challenging negative ratings described
above. If the government does not substantiate the lien within the
required 30 days, the credit bureau must delete the tax lien notice and cannot
later reinstate it. You will be most successful if you attempt to
challenge the tax lien after your tax file has been transferred to the federal
archives. This transfer usually takes about a year and increases the
turnaround time to retrieve the records, making it more difficult for the IRS to
respond within the required 30-day period.
Bankruptcy and Your Credit
Rating
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Bankruptcies may stays on your credit report for 7 to 10 years. While
bankruptcy will obviously damage your credit rating, it may be less damaging
than many negative marks on your credit report. For that reason, you
should file bankruptcy before your credit deteriorates to the point you have a
heavily spotted credit report. The one mark “bankruptcy” may be far less
harmful.
Credit usually eases within a year or two of filing bankruptcy if you can show a
consistent pattern of prompt bill-paying and financial stability following your
bankruptcy filing. For this reason, try to establish even nominal credit
sources that you can use as references. Have these credit sources notify
the credit bureaus of your prompt payment history so you have a favorable
post-bankruptcy credit report.
Add a Consumer Statement
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The events leading up to your bankruptcy can have an important effect on your
credit report. For example, if you maintained a good credit history, but
then fell victim to a financial disaster, such as your business failing, leaving
you with an unmanageable bank loan that necessitated your bankruptcy. If
you are otherwise a prompt bill-payer, it is in your best interest to advise
potential creditors about the circumstances leading up to your bankruptcy.
As discussed above, you should submit to the credit bureau a Consumer Statement
that describes the event that led to your filing bankruptcy. Also, comment
about your otherwise good credit history at the time of the devastating
financial event. Finally, state that the financial problem has been
corrected and that you are financially stable.
Challenge a bankruptcy
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You can possibly eradicate a
bankruptcy mark on your credit report as you could
a negative rating
or tax lien. If you challenge a bankruptcy notation, the government must
document your bankruptcy to the credit bureau within 30 days. Bankruptcy
cases are ordinarily sent to the federal archives after two years.
Therefore, a high probability exists that the credit bureau will not receive a
reply within 30 days if you challenge the notation after two years.
return to top
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Real Consumer Credit Improvement Services Real Credit Repair Quick Credit Repair
Our Purpose Our purpose is to provide consumers with detailed information
to assist with improving their credit scores and to offer another credit
alternative to prevent consumers from falling victim to costly credit repair
scams. The information we provide will equip you with important credit
information and allow you the opportunity to improve your credit yourself.
You have now taken the first step to improving your credit score. The
information you are about to read will improve your financial situation
immediately if applied successfully. Our team of professionals are here to
assist you. Don't hesitate to call us at if you have any questions about
our services. Topics Of Interest How To Use This Credit
Improvement Information Credit Ratings and Report Credit Bureaus What Your
Credit Report Reveals Public Records: Bankruptcies, tax liens, judgments
and other filings Obtaining a Copy of Your Credit Report Knowing Your Legal
Rights Repairing Your Credit Prepare a written protest to the credit bureau Keep
a calendar Send a follow-up letter Request an updated credit report Compare the
new report with the prior report Repeat the process Gaining Creditor Cooperation
Study all the facts concerning each account and the nature of the negative
ratings Contacting the creditor by telephone Confirming an Agreement with a
Creditor to Change or Update a Negative Rating Confirming an Agreement with a
Creditor to Pay Your Debts and Have Your Positive Credit Rating Restored Present
a “win-win” offer Obtain an “open account” status Confirm your agreement in
writing Honor your agreement Verify your credit upgrade Trying again Dealing
With Serious Credit Problems How Credit Clinics Can Ease Bad Credit Bolstering
Your Credit Record Tax Liens and Your Credit Rating Make sure the IRS sends you
a Certificate of Release for each tax lien Conduct a complete lien search Review
your credit report Add a Consumer Statement to your credit report Add a Consumer
Statement Challenge a bankruptcy How To Use This Credit Improvement
Information return to top It is the goal of this Credit
Improvement System to assist you in improving your credit conveniently,
efficiently and economically. Nevertheless, it is important for you to
properly use this System if you are to avoid future problems. Always
follow these instructions: 1. Carefully read all information, warnings and
disclaimers concerning the forms in this System. If, after thorough
examination, you decide that you have circumstances that are not covered by the
forms in this System, or you do not feel confident about preparing your own
documents, then you should consult with an attorney immediately. 2. Follow
the format recommended in the Sample Credit Improvement Correspondence. Do
not omit information. 3. Always use a pen or type on the documents.
Write neatly or print. Never use a pencil. 4. Avoid reassures and
“cross-outs” on final documents. 5. Correspondence forms should be reproduced on
your own letterhead. You can create your own letterhead simply by typing
or printing your name, address and telephone number on the top/center of the
form, as shown below. [YOUR NAME] [YOUR ADDRESS] [CITY,
STATE, ZIP CODE] [TELEPHONE NUMBER] 6. Whenever the documents are to
be executed by a partnership or corporation, the person signing should also
print his/her name and title. 7. Always make copies of your important documents.
If you do not have access to a photocopier, keep a copy of your draft, or make
another copy yourself. Store all-important documents in a safe place and
in a location known to your spouse, family, personal representative or attorney.
Credit Ratings and Report return to top Since many of the
things we want to buy must be financed or bought on credit, good credit is
essential. A vast network of credit reporting agencies keeps track of
every American who does business or buys on credit. Each time you apply
for credit through a bank, store or credit card agency, the prospective lender
typically checks your credit with one or more of these agencies before issuing
you credit. If your credit becomes bad, it is nearly impossible to avoid
detection. Credit Bureaus return to top There are many credit
bureaus in the United States, but only three large regional bureaus – Equifax,
Experian and Trans Union. The largest, Experian (formerly known as TRW),
has processed over 35 million credit reports in the last year and boasts 50,000
business subscribers. Many businesses and potential creditors pay to
obtain your credit information contained in credit bureau files. These
businesses rightfully believe that the information contained in your credit file
is a good indication of your creditworthiness. How you have paid other
creditors in the past is an indication of how you may act in the future.
The businesses also use the credit file to verify information on your credit
application. Businesses that most often deal with the credit bureaus are
the commercial banks, credit card companies, larger savings and loans, major
department stores and finance companies. Utilities, hospitals, credit
unions, oil company credit cards and checking and savings account information
deal with credit bureaus less often. Usually the same businesses that
receive information about you also provide information to the credit bureaus.
When you submit a credit application to one of these businesses, the information
in your application is forwarded to a credit bureau so that your credit file may
be updated. The transfer of account information involves sending the
credit bureau computer disks that contain account information and any changes
and additions to be made to your credit file every month or quarter. This
practice is intended to ensure that the credit bureau’s file are accurate and
up-to-date. However, not all businesses report what they know about you to
the credit bureaus, (And of those that do, not all report the entire contents of
their files. Therefore, your file may be incorrect or out of date.)
What Your Credit Report Reveals return to top Credit reports may vary
slightly between agencies; however, most credit reports include personal
identification information, account information, information obtained in public
records, information about credit report request and a consumer statement.
Personal identification information: Your full name; your last two
addresses; your social security number; your date of birth; and your place
of employment. Length of employment and income may not be reported.
Please note that if you are self-employed, a credit bureau may incorrectly list
you as unemployed. You will need to contact the credit bureau and instruct
that your file be corrected. Account information: Credit issuer’s
name; opening date of account; original balance/limit; current balance; terms of
account; and the current status of the account. A specific code system is
used to describe the status of each item. Public Records:
Bankruptcies, tax liens, judgments and other filings return to top
Credit report requests: Each time a creditor requests a copy of your
report, it is recorded in your report. If numerous requests are made and
no subsequent accounts are opened, other potential creditors may assume that
your credit application was turned down. This may lead to some difficulty
in obtaining credit. Consumer statements: A brief (100 words or
less) explanation of any entry in your credit report that is written, and
submitted to the credit bureau by you. Obtaining a Copy of Your Credit
Report return to top Credit bureaus do make mistakes. Therefore, it
is important to check your credit report periodically so that inaccurate
information can be corrected. Information Required: Credit bureaus
routinely require the following information: your full legal name; your
current address; your former address; your social security number; your date of
birth; and, if applicable, your spouse’s full legal name, social security number
and date of birth. You may call the credit bureaus to inquire about the
specific information they require at the telephone numbers listed on the
following page. Fee if you have received a credit rejection within the
past 60 days: None. Simply write a letter in the form of Sample
Letter Number 1 to the credit bureau listed on the rejection letter and demand
that the credit bureau provide you a free copy of your credit report. Fee
if you have not received a credit rejection within the past 60 days:
$8.00. It would be wise to call the credit bureau to confirm that the fee
has not changed. Send a written request in the form of Sample Letter
Number 2 to each of the credit bureaus listed below. Since the information
compiled and maintained by the credit bureaus differs, it is important to
contact all three credit bureaus, particularly if you suspect that incorrect or
inaccurate information appears in your credit file. EQUIFAX Credit
Information Services P.O. Box 740241 Atlanta, GA 303 EXPERIAN Credit
Information Service (Formerly TRW) 955 American Lane Schaumburg, IL 60173
TRANS UNION Corporation P.O. Box 97328 Jackson, MS 39288-7328
Knowing Your Legal Rights return to top The Fair Credit Reporting Act (FCRA),
15 USC Sections 1681 through 1681t, protects you against credit abuse by
granting you the following rights: 1. You may challenge the accuracy of
your credit report at any time. 2. The credit bureau must “reinvestigate”
anything you challenge within 30 days. 3. The credit bureau’s 30-day period
begins when the credit bureau receives your notice of dispute, unless
you send the credit bureau additional information during the 30- day period.
In that event, the credit bureau may extend the deadline by 15 days. 4. If the
credit bureau cannot confirm the adverse information or finds any error, it must
promptly delete that erroneous information from your credit file. 5. If the
credit bureau cannot or does not confirm the information you have challenged
within a seasonable time period, it also must delete that information from your
files. 6. If a creditor verifies the information and the credit bureau responds
in a timely manner, the negative marks will remain on your record.
However, if you maintain that the statements is inaccurate or incorrect, then
you have the right to submit a brief statement (called a “Consumer Statement”),
that sets forth your explanation of the credit dispute. Representatives of
the credit bureau are available to assist you in writing a Consumer Statement.
Once your Consumer Statement is finalized, it will appear on every copy of your
credit report that is sent out. Repairing Your Credit return to top
Review your personal information Once you have received a copy of your
credit report, review it carefully. Check all spellings, numbers and
dates. Then proceed to the “Summary” or “Account Profile” section of your
credit report to determine whether it contains any negative information.
Determine your overall credit score. ICS can provide you with your current
score, for details call. Locate the “Summary” or “Account Profile” section
on your credit report. This section contains a summary rating for each of
your accounts. A summary may be positive, negative, or non-rated for each
of your accounts. “Positive” means that your payments are all on time.
“Negative” means you have a serious credit problem such as having defaulted on a
debt. “Nonrated” means that you may have a few late payments, which could
place you in a weak position, even though there is nothing strongly negative in
your credit report. If you have any “Negative” or “Non-rated” ratings,
then proceed to the section containing negative history remarks. Negative
remarks may appear in the following four sections: Historical Status;
Comments; Inquiries; and Public Records. Make sure you review them all.
..Locate the negative history remarks. ..Highlight or circle all of the negative
remarks in your credit file. ..Locate the key to the coding symbols.
..Familiarize yourself with the coding symbols. ..Compare the highlighted or
circled negative remarks to the coding symbols. To fully repair your
credit, you must protest, and eventually remove, all negative or non-rated
profiles. Prepare a written protest to the credit bureau return to
top To repair your credit, you must challenge any negative remarks that appear
in your credit file. You have the right to dispute any citation on your
report if the information contained in that citation is inaccurate or
incomplete. (Fair Credit Reporting Act 15 USC Section 1681). The
only limitation to your dispute is that it should not be “frivolous or
irrelevant.” To begin preparing your written protest, refer to the Sample
letter Numbers 3 and 4. Remember to use a pen or type your letter and
avoid erasures and “cross-outs.” Use photocopies of each document as
worksheets, or as final copies. Create your own letterhead, as instructed
previously. Do not try to explain all of the negative ratings in one
attempt. Carefully list each negative rating that you want to challenge.
Next, set forth an explanation for or comment about each negative rating.
Even if the explanation is the same for all negative ratings, it is more
effective if you repeat the same explanation several times for each negative
rating. Be sure to include photocopies of any documents you provide to
support your claims. These might include correspondence with your
creditors, canceled checks indicating payment, receipts or other documents.
Explanations for negative ratings could be: that your debt was satisfied
and therefore should not be reported as a charge off; that the debt was paid,
but the creditor failed to note this in your credit report; that a payment was
delinquent due to a mix-up with the post office. For example, you change
your address and bills were not received even though a change of address was
furnished; or something else. Make a copy of your letter for your records.
Send your letter certified mail with return receipt requested so that you can be
sure the bureau receives it. It is also a good idea to include a copy of
your credit report to make sure the bureau checks the right file. Refer to
Sample Letter Number 3 when your credit report contains incorrect information.
Refer to Sample Letter Number 4 if you are demanding a corrected and updated
credit report. Keep a calendar return to top As soon as you mail
your letter, log the date for each negative rating that you have protested.
Keep related disputes together in a file with a copy of the letter, the credit
report and any other documents that you include with it. Also calendar the
date that the response is due. By law, credit bureaus must respond within
30 days. Send a follow-up letter return to top If the credit bureau
does not respond within 30 days, you should write a follow-up letter.
Point out that federal law requires the credit bureau to respond to a consumer
dispute within 30 days of the reminder, write a final follow-up letter.
Refer to Sample Letter Number 6. Failure of the credit bureau to respond
in 30 days entitles you to have any negative mark on your report deleted
provided it was one that you challenged. Since many creditors won’t take
the time or effort to defend the negative entry, you can eventually “repair”
your credit through the default of your creditors. Do not be discouraged
if the credit bureau does not respond. It is possible to eliminate
negative marks simply by going through this process of disputing the negative
ratings. If the credit bureau fails to immediately provide an updated
credit report, free of the disputed entry, you may notify the Subcommittee on
Banking, Credit and Insurance and/or the Federal Trade Commission. Both
entities can bring legal action against the credit bureau. Request an
updated credit report return to top At the end of every letter that
you send to the credit bureau, ask them to send you an updated copy of your
credit report. Also request that the credit bureau send the updated credit
report to anyone else who inquired about your credit. 15 USC Section 1681j
of the FCRA requires the credit bureau to send a free notification of any
updates to anyone who has received a copy of the report during the six-month
period prior to any corrections or addition to your credit report. Note:
Credit bureaus are not required to send a copy of your entire report, but they
will often do so because it is more convenient. Compare the new report
with the prior report return to top Most credit bureaus will send
you an updated report. Compare carefully the updated report with the
original one. Mark all improvements that you find. Highlight any
negative rating that has changed to non-rated rating or any non-rated or
negative ratings that have changed to positive ratings. Chances are that you
will not get results on every protest the first time. But some progress is
likely. Repeat the process return to top If negative ratings
remain on your credit report, repeat the process. If a dispute about a
negative rating results in a more negative rating than before, do not be
discouraged. Go back to the beginning of the process and start again.
You should put your credit record through this process at least twice before
going on to the next phase. Be patient, but persist. Remember that
credit cannot be rebuilt in a day. It takes patience and persistence.
Also remember that during this process you must be very careful not to allow any
new problems to appear on your record. Keep all your accounts current or
pay ahead of schedule. Gaining Creditor Cooperation return to top A
credit bureau may not remove negative ratings if a creditor routinely cooperates
with the credit bureau’s request (s) for verification. In this event, you
will need the creditor’s cooperation to remove the negative ratings. You
will have to persuade the creditor to soften its stance by either toning down or
entirely deleting their remarks on your credit report. Create an accurate
record of your dealings with the remaining creditors who still give negative
ratings. List each creditor’s name, account number, negative credit
remarks and any documents, correspondence or notes you have on your dealings
with them. Study all the facts concerning each account and the nature of
the negative ratings return to top Write a letter to each creditor
explaining your version of how the problem arose. Be specific and give all
the relevant details, including full documentation. Be factual, but also
appeal to the creditor’s sense of good will. Perhaps your company went
bankrupt suddenly or you lost your job. Or perhaps you became ill and were
unable to work. Remind the creditor that you eventually paid the
delinquent amount. Appeal to the creditor’s compassion and request that
the negative ratings be removed or that a statement be included that the account
is current. Do not use lame excuses for late bill-payment habits.
Use strong, compelling reasons. At the end of your letters always thank
the creditors for their time and consideration. Refer to Sample Letter
Number 7. Send the letter by certified mail, return receipt request.
Keep a copy of each letter. Contacting the creditor by telephone
return to top If your creditor does not respond to your letters, use the
telephone. This will allow you to interact with the creditor in a more
personal way. Before you call, study the information you have gathered
from your credit report, your creditor’s responses, and the accurate record of
negative ratings that you compiled. Then write a sample outline of every
point that you want to make during your call. Try not to become angry.
Remain calm and be polite. If your first telephone call does not produce
the results you want, do not give up. Be persistent. Ask to speak to
another person or a manager. Different people will react to you
differently. By speaking to more than one person, you may find someone who
will relate to your problem more positively. Confirming an Agreement
with a Creditor to Change or Update a Negative Rating return to top
If a creditor agrees that a change in the rating is justified, ask the creditor
to agree on the telephone that the change will be made in your credit status.
Be certain to obtain the creditor’s name and office address. After your
conversation, immediately send the creditor a letter confirming your agreement.
Refer to Sample Letter Number 9. Send the letter, along with a
self-addressed, stamped envelope. The creditor should sign the
letter and return it to you for your own records. This letter is important
if the creditor forgets to change your status or later changes his or her mind
about helping you. In that event, you can send the letter to the credit
bureau yourself to repair your credit. Confirming an Agreement with
a Creditor to Pay Your Debts and Have Your Positive Credit Rating Restored
return to top If you have outstanding debts owed to a creditor and the creditor
has placed negative ratings on your credit report, you may still be able to
repair your negative credit. Write a letter to the creditor, and express
your interest in negotiating a repayment plan. Explain sincerely your
ability to make regular payments and pay off your debts. If a particular
circumstance led to your inability to pay, then you should describe that
circumstance, assure the creditor that it will not happen again and repeat your
desire to pay off your debts. Be specific and give all the relevant
details, including full documentation. In return, you are going to ask
your creditors to restore your positive credit rating. It is always best
to avoid having a debt turned over for collection. If your account has
been sent to a collection agency, deal first with the original creditor. A
collection agency receives a percentage of what it collects from you so it may
be less willing to negotiate. Rather, a collection agency will try to get
as much cash as possible from you. The creditor, on the other hand, may
have already given up any expectation of full payment. By dealing with the
creditor, you may have more flexibility to negotiate the time or the amount to
pay. If you cannot avoid negotiating with the collection agency, use the
following points. Which also apply to dealing with a creditor. Present a
“win-win” offer return to top Keep in mind that your goal is to
trade money for a positive rating on your credit report. Perhaps you can
offer to set up a payment schedule in exchange for a promise to improve your
credit rating. For example, you could agree to pay the entire amount owed
in 12 monthly installments in exchange for the creditor agreeing to recognize
your new bill paying commitment with better credit ratings. Be specific.
Alternatively, you may agree that after three months of punctual payments a
negative rating could be raised to a non-rating. Perhaps after six months
of regular payments, the non-rating could be lifted to a positive rating.
Obtain an “open account” status return to top Even if you are making
regular payments, a potential creditor may react negatively if your account is
closed to further purchases. Therefore, when you are negotiating an offer
with your creditor ask him or her to reopen your account while you uphold your
end of the agreement. You can be very persuasive if you offer to pay the
entire debt perhaps with interest or a service charge added. Confirm
your agreement in writing return to top The “win-win” negotiation
procedure can occur via a telephone conversation. Once you have reached a
verbal agreement, it is imperative that the agreement be put in writing.
Draft a letter that carefully lists all the points of agreements. Refer to
Sample Letter Number 10. Do not exaggerate, embellish or take any
liberties. Then send the letter along with a stamped, self-addressed
envelop. Once the creditor signs the agreement and returns it to you, it
can become part of your credit record. Honor your agreement
return to top Now that you have a written agreement, you need only fulfill it
and your credit rating will be restored. So be punctual. Make every
payment on or ahead of time. If your ability to meet the payment schedule
in the agreement is threatened by unemployment or illness, inform your creditor
right away, before you mail any payments. Discuss your plans for meeting
the payments with the creditor and explore ways to solve your temporary setback.
Verify your credit upgrade return to top Remember to order an updated copy
of your credit report to verify that the creditor has honored his or her side of
the agreement and made the promised changes. Allow a reasonable time
period from the date the creditor agreed to make the change. If the
changes have not been made, you should immediately telephone the person with
whom you made the agreement and remind that person of his or her promise.
If the creditor still fails to upgrade your credit rating, then you can
effectively dispute the information on your credit report by sending the credit
bureau a copy of the signed agreement. Trying again return to
top If a creditor will not cooperate with you and the negative rating remains in
dispute, then a Consumer Statement may be the only tool that can work in your
favor. However, you should remain persistent. Wait a few months and
repeat the process. After a lapse of time, the situation may have changed.
You may find a more receptive person who is willing to help you regain a good
credit rating. Dealing With Serious Credit Problems return to
top If, in your financial past, you have encountered serious credit problems,
such as bankruptcies, court claims, repossessions, or foreclosures, then these
negative ratings may stick to your credit report, even after you try every
method discussed above. For these serious credit problems, remain patient.
You will be surprised at how much you can accomplish through persistence.
Be assured that as these events drift further into your past, they will become
less significant in your credit history. With the exception of a
bankruptcy or tax lien, any adverse information more than seven years old must
be deleted from your credit report. A bankruptcy or tax lien may remain on
your credit report for up to 10 years. How Credit Clinics Can Ease Bad
Credit return to top This unique Credit Repair System is designed to help
you repair your bad credit yourself. Credit clinics use the same process.
They operate under the same reasoning discussed above – that each item on a
credit report must be proven and that every negative rating on a credit report
can be denied or challenged at any time. Upon receipt of a denial or
challenge, the credit bureau must then reinvestigate. If the item cannot
be reverified within 30 days, it is automatically removed from the file. A
credit clinic will instruct you to send a letter to the credit bureau similar to
those discussed previously. After a few months, the credit clinic will
have you send another letter to the credit bureau starting the process all over
again. These credit clinics understand the value of persistence.
They will encourage you to continue this process until all of your negative
items are removed. Should you tire of the process, the credit clinic will
recommend that you submit a Consumer Statement as discussed previously.
As you can see, you do not need to pay a credit clinic to repair your credit.
With this unique Credit Repair System you can easily and inexpensively do it
yourself. Bolstering Your Credit Record return to top The law
remains unclear about adding favorable items to a credit report. However,
the FTC has advised credit bureaus that, where a report has resulted in
unfavorable action against you; you should be allowed to add to your credit
report, thereby creating a more complete and balanced picture of your credit
history. Consequently, most credit bureaus will, for a small fee, contact
any creditor you name and add that creditor’s information to your file.
The charge will usually run $2 to $3 per item. If you have good
credit with a company that does not report to a credit bureau, then you should
contact that company. Inform them that you need your account information
listed on your credit report. Once they agree to release your account
record, tell them which credit bureau will contact them. Do this for each
good credit account you have. Next, send a letter to the credit bureau
with your list of non-reporting creditors. Refer to Sample Letter Number
11. Request that the credit bureau contact these creditors and add the
items to your report upon verification of the information. Once you have
cleared your credit report of as many negative ratings as possible and added all
possible positive ratings, you should have a new and improved credit report that
will provide you with future credit as needed. Tax Liens and Your Credit
Rating return to top A tax lien on your credit report will definitely hurt
your chances when applying for significant credit, such as a loan to buy a home,
business, car, boat or any other major purchase. It may also prevent you
from obtaining credit cards. Tax liens may not be erased from your credit report
for 10 years. However, a past tax lien is not as damaging as a current tax
lien. It is important to avoid having the IRS place a tax lien on your
credit report. It is equally important to ascertain that every credit
bureau updates your credit history to show that past tax liens have been fully
paid and discharged. Make sure the IRS sends you a Certificate of Release
for each tax lien return to top Once you have fully paid your taxes, the
IRS must send to you a Certificate of Release of Federal Tax Lien (Form 668Z)
for each office that has a tax lien on file. This may include the clerk of
your city, town or county, the federal district court nearest where you reside
and wherever real estate transactions for your locale are recorded. If you
have moved, there may be liens filed where you originally lived. There may
also be several tax liens for the same tax problems if the problems extend over
several years. Conduct a complete lien search return to top To
ensure that you obtain a Certificate of Release for each tax lien filed, you
must conduct a complete lien search. This can be accomplished by:
(1) requesting that the IRS send you copies of every lien the IRS filed against
you; (2) having a commercial lien search service review the public records; (3)
conducting your own lien search at the public recording office; or (4) reviewing
your credit report. Be aware, however, that a credit report may overlook
some tax liens. Once you are satisfied that you have identified all
the recorded tax liens, make certain the IRS files a Certificate of release for
each lien. Do not assume the IRS will do this on its on accord.
Review your credit report return to top For each recorded lien (not
noted as discharged) you must insist that the reporting agency contact the IRS
or check the public records to confirm that the lien has been released.
You may also send the credit bureaus copies of the Certificate of Release of
Federal Tax Lien. Follow up with the credit bureau to make sure your
credit report reflects the discharge of all tax liens against you.
Add a Consumer Statement to your credit report return to top If you
are paying the IRS in installments, then your credit report can reflect the
anticipated discharge of your lien because an agreement has been reached with
the IRS. As discussed above, you can submit a Consumer Statement to the
credit bureau and insist that it accompany your credit report.
Challenge a tax lien return to top As discussed above, it is possible to
erase negative ratings, including existing and unpaid tax liens by challenging
the tax liens. Follow the same process for challenging negative ratings
described above. If the government does not substantiate the lien within
the required 30 days, the credit bureau must delete the tax lien notice and
cannot later reinstate it. You will be most successful if you
attempt to challenge the tax lien after your tax file has been transferred to
the federal archives. This transfer usually takes about a year and
increases the turnaround time to retrieve the records, making it more difficult
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financial planning Consumer Credit Improvement Services a division of
International Communication Systems, Inc. Our Purpose Our purpose is
to provide consumers with detailed information to assist with improving their
credit scores and to offer another credit alternative to prevent consumers from
falling victim to costly credit repair scams. The information we provide
will equip you with important credit information and allow you the opportunity
to improve your credit yourself. You have now taken the first step
to improving your credit score. The information you are about to read will
improve your financial situation immediately if applied successfully. Our
team of professionals are here to assist you. Don't hesitate to call us at
if you have any questions about our services. Topics Of Interest
How To Use This Credit Improvement Information Credit Ratings and Report Credit
Bureaus What Your Credit Report Reveals Public Records: Bankruptcies, tax
liens, judgments and other filings Obtaining a Copy of Your Credit Report
Knowing Your Legal Rights Repairing Your Credit Prepare a written protest to the
credit bureau Keep a calendar Send a follow-up letter Request an updated credit
report Compare the new report with the prior report Repeat the process Gaining
Creditor Cooperation Study all the facts concerning each account and the nature
of the negative ratings Contacting the creditor by telephone Confirming an
Agreement with a Creditor to Change or Update a Negative Rating Confirming an
Agreement with a Creditor to Pay Your Debts and Have Your Positive Credit Rating
Restored Present a “win-win” offer Obtain an “open account” status Confirm your
agreement in writing Honor your agreement Verify your credit upgrade Trying
again Dealing With Serious Credit Problems How Credit Clinics Can Ease Bad
Credit Bolstering Your Credit Record Tax Liens and Your Credit Rating Make sure
the IRS sends you a Certificate of Release for each tax lien Conduct a complete
lien search Review your credit report Add a Consumer Statement to your credit
report Add a Consumer Statement Challenge a bankruptcy How To Use This
Credit Improvement Information return to top It is the goal of
this Credit Improvement System to assist you in improving your credit
conveniently, efficiently and economically. Nevertheless, it is important
for you to properly use this System if you are to avoid future problems.
Always follow these instructions: 1. Carefully read all information,
warnings and disclaimers concerning the forms in this System. If, after
thorough examination, you decide that you have circumstances that are not
covered by the forms in this System, or you do not feel confident about
preparing your own documents, then you should consult with an attorney
immediately. 2. Follow the format recommended in the Sample Credit
Improvement Correspondence. Do not omit information. 3. Always use a
pen or type on the documents. Write neatly or print. Never use a
pencil. 4. Avoid reassures and “cross-outs” on final documents. 5.
Correspondence forms should be reproduced on your own letterhead. You can
create your own letterhead simply by typing or printing your name, address and
telephone number on the top/center of the form, as shown below.
[YOUR NAME] [YOUR ADDRESS] [CITY, STATE, ZIP CODE] [TELEPHONE
NUMBER] 6. Whenever the documents are to be executed by a partnership or
corporation, the person signing should also print his/her name and title. 7.
Always make copies of your important documents. If you do not have access
to a photocopier, keep a copy of your draft, or make another copy yourself.
Store all-important documents in a safe place and in a location known to your
spouse, family, personal representative or attorney. Credit Ratings
and Report return to top Since many of the things we want to
buy must be financed or bought on credit, good credit is essential. A vast
network of credit reporting agencies keeps track of every American who does
business or buys on credit. Each time you apply for credit through a bank,
store or credit card agency, the prospective lender typically checks your credit
with one or more of these agencies before issuing you credit. If your
credit becomes bad, it is nearly impossible to avoid detection. Credit
Bureaus return to top There are many credit bureaus in the United
States, but only three large regional bureaus – Equifax, Experian and Trans
Union. The largest, Experian (formerly known as TRW), has processed over
35 million credit reports in the last year and boasts 50,000 business
subscribers. Many businesses and potential creditors pay to obtain your
credit information contained in credit bureau files. These businesses
rightfully believe that the information contained in your credit file is a good
indication of your creditworthiness. How you have paid other creditors in
the past is an indication of how you may act in the future. The businesses
also use the credit file to verify information on your credit application.
Businesses that most often deal with the credit bureaus are the commercial
banks, credit card companies, larger savings and loans, major department stores
and finance companies. Utilities, hospitals, credit unions, oil company
credit cards and checking and savings account information deal with credit
bureaus less often. Usually the same businesses that receive information
about you also provide information to the credit bureaus. When you submit
a credit application to one of these businesses, the information in your
application is forwarded to a credit bureau so that your credit file may be
updated. The transfer of account information involves sending the credit
bureau computer disks that contain account information and any changes and
additions to be made to your credit file every month or quarter. This
practice is intended to ensure that the credit bureau’s file are accurate and
up-to-date. However, not all businesses report what they know about you to
the credit bureaus, (And of those that do, not all report the entire contents of
their files. Therefore, your file may be incorrect or out of date.)
What Your Credit Report Reveals return to top Credit reports may vary
slightly between agencies; however, most credit reports include personal
identification information, account information, information obtained in public
records, information about credit report request and a consumer statement.
Personal identification information: Your full name; your last two
addresses; your social security number; your date of birth; and your place
of employment. Length of employment and income may not be reported.
Please note that if you are self-employed, a credit bureau may incorrectly list
you as unemployed. You will need to contact the credit bureau and instruct
that your file be corrected. Account information: Credit issuer’s
name; opening date of account; original balance/limit; current balance; terms of
account; and the current status of the account. A specific code system is
used to describe the status of each item. Public Records:
Bankruptcies, tax liens, judgments and other filings return to top
Credit report requests: Each time a creditor requests a copy of your
report, it is recorded in your report. If numerous requests are made and
no subsequent accounts are opened, other potential creditors may assume that
your credit application was turned down. This may lead to some difficulty
in obtaining credit. Consumer statements: A brief (100 words or
less) explanation of any entry in your credit report that is written, and
submitted to the credit bureau by you. Obtaining a Copy of Your Credit
Report return to top Credit bureaus do make mistakes. Therefore, it
is important to check your credit report periodically so that inaccurate
information can be corrected. Information Required: Credit bureaus
routinely require the following information: your full legal name; your
current address; your former address; your social security number; your date of
birth; and, if applicable, your spouse’s full legal name, social security number
and date of birth. You may call the credit bureaus to inquire about the
specific information they require at the telephone numbers listed on the
following page. Fee if you have received a credit rejection within the
past 60 days: None. Simply write a letter in the form of Sample
Letter Number 1 to the credit bureau listed on the rejection letter and demand
that the credit bureau provide you a free copy of your credit report. Fee
if you have not received a credit rejection within the past 60 days:
$8.00. It would be wise to call the credit bureau to confirm that the fee
has not changed. Send a written request in the form of Sample Letter
Number 2 to each of the credit bureaus listed below. Since the information
compiled and maintained by the credit bureaus differs, it is important to
contact all three credit bureaus, particularly if you suspect that incorrect or
inaccurate information appears in your credit file. EQUIFAX Credit
Information Services P.O. Box 740241 Atlanta, GA 303 EXPERIAN Credit Information
Service (Formerly TRW) 955 American Lane Schaumburg, IL 60173 TRANS UNION
Corporation P.O. Box 97328 Jackson, MS 39288-7328 Knowing Your
Legal Rights return to top The Fair Credit Reporting Act (FCRA), 15 USC
Sections 1681 through 1681t, protects you against credit abuse by granting you
the following rights: 1. You may challenge the accuracy of your credit
report at any time. 2. The credit bureau must “reinvestigate” anything you
challenge within 30 days. 3. The credit bureau’s 30-day period begins when the
credit bureau receives your notice of dispute, unless you send
the credit bureau additional information during the 30- day period. In
that event, the credit bureau may extend the deadline by 15 days. 4. If the
credit bureau cannot confirm the adverse information or finds any error, it must
promptly delete that erroneous information from your credit file. 5. If the
credit bureau cannot or does not confirm the information you have challenged
within a seasonable time period, it also must delete that information from your
files. 6. If a creditor verifies the information and the credit bureau responds
in a timely manner, the negative marks will remain on your record.
However, if you maintain that the statements is inaccurate or incorrect, then
you have the right to submit a brief statement (called a “Consumer Statement”),
that sets forth your explanation of the credit dispute. Representatives of
the credit bureau are available to assist you in writing a Consumer Statement.
Once your Consumer Statement is finalized, it will appear on every copy of your
credit report that is sent out. Repairing Your Credit return to top
Review your personal information Once you have received a copy of your
credit report, review it carefully. Check all spellings, numbers and
dates. Then proceed to the “Summary” or “Account Profile” section of your
credit report to determine whether it contains any negative information.
Determine your overall credit score. ICS can provide you with your current
score, for details call Locate the “Summary” or “Account Profile” section on
your credit report. This section contains a summary rating for each of
your accounts. A summary may be positive, negative, or non-rated for each
of your accounts. “Positive” means that your payments are all on time.
“Negative” means you have a serious credit problem such as having defaulted on a
debt. “Nonrated” means that you may have a few late payments, which could
place you in a weak position, even though there is nothing strongly negative in
your credit report. If you have any “Negative” or “Non-rated” ratings,
then proceed to the section containing negative history remarks. Negative
remarks may appear in the following four sections: Historical Status;
Comments; Inquiries; and Public Records. Make sure you review them all.
..Locate the negative history remarks. ..Highlight or circle all of the negative
remarks in your credit file. ..Locate the key to the coding symbols.
..Familiarize yourself with the coding symbols. ..Compare the highlighted or
circled negative remarks to the coding symbols. To fully repair your
credit, you must protest, and eventually remove, all negative or non-rated
profiles. Prepare a written protest to the credit bureau return to
top To repair your credit, you must challenge any negative remarks that appear
in your credit file. You have the right to dispute any citation on your
report if the information contained in that citation is inaccurate or
incomplete. (Fair Credit Reporting Act 15 USC Section 1681). The
only limitation to your dispute is that it should not be “frivolous or
irrelevant.” To begin preparing your written protest, refer to the Sample
letter Numbers 3 and 4. Remember to use a pen or type your letter and
avoid erasures and “cross-outs.” Use photocopies of each document as
worksheets, or as final copies. Create your own letterhead, as instructed
previously. Do not try to explain all of the negative ratings in one
attempt. Carefully list each negative rating that you want to challenge.
Next, set forth an explanation for or comment about each negative rating.
Even if the explanation is the same for all negative ratings, it is more
effective if you repeat the same explanation several times for each negative
rating. Be sure to include photocopies of any documents you provide to
support your claims. These might include correspondence with your
creditors, canceled checks indicating payment, receipts or other
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