Beware of Credit Repair Services

Legal FICO Score Credit Repair Section - Lendfast.com

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Credit Repair Services

Do yourself a favor and save some money. Don't believe these statements. Only time, effort, and a personal debt repayment plan will improve your credit report. Our self credit repair service web page explains this in detail.We explain how you can improve your worthiness and lists legitimate resources for low- or no-cost help.

Please understand though, there are legitimate credit repair companies who work on your behalf with your creditors to strengthen your credit. The fact is that most of the credit repair companies that we have come across are legitimate.

However we must stress they are only a service. There is no magic trick that heals your credit, it is time consuming hard work. Some good reasons to use them is lack of time or you simply do not wish to deal with collectors. We have a form that will allow you to contact the most respected credit repair companies here.

If you decide to respond to a repair offer, beware of companies that:

Credit Care Sections

Credit Reporting Agencies.

Types of credit reports.

What is a FICO score?

Correct errors on my report.

Credit Consumer Rights.

Fair Credit Reporting Act.

Identity Theft Precautions .

If Identity Theft Occurs.

Self Credit Repair Help.

Professional Credit Repair.

Facts About Cosigning a Loan.

Facts About Chapter 7 BK.

Facts About Chapter 13 BK.

Free Sample Collection Letters.

Speak with a Credit Advisor.

Professional Tax Debt Help.

Free Credit Report & Score.

The Warning Signs

Want you to pay for repair services before any services are provided;
Do not tell you your legal rights and what you can do yourself for free;
Recommend that you not contact a credit bureau directly;
Suggest that you try to invent a "new" credit report by applying for an Employer Identification Number to use instead of your Social Security Number;
Advise you to dispute all information in your credit report or take any action that seems illegal, such as creating a new identity. If you follow illegal advice and commit fraud, you may be subject to prosecution.

If you provide false information while using the mail or telephone to apply for a loan, you could be charged and prosecuted for mail or wire fraud. It's a federal crime to make false statements on a loan application, misrepresent your Social Security Number, or obtain an Employer Identification Number from the Internal Revenue Service under false pretenses. Under the CRO's Act, these companies cannot require you to pay until they have completed the promised services.

The Truth
No one can legally remove accurate and timely negative information from a credit report. If you wish to dispute information contained in your report, the law allows you to request a reinvestigation of the information in question. There is no charge for this. We offer a Free credit repair service page designed to help you fix your bureau. Everything one of these scam companies can do for you legally, you can do for yourself at little or no cost. According to the FCRA:

You are entitled to a free copy of your report if you've been denied credit, insurance or employment within the last 60 days. If your application for a loan, insurance, or employment is denied because of information supplied by a bureau, the company you applied to must provide you with that bureau's name, address, and telephone number.
You can dispute mistakes or outdated items for free. Ask the credit reporting agency for a dispute form or submit your dispute in writing, along with any supporting documentation. Do not send them original documents.
Order your free credit report
Whether or not you are a victim of identity theft, take advantage of your free annual credit reports, now a requirement of federal law.
- Phone: (877) 322-8228
- Web: www.annualcreditreport.com (This report is usually not available online and will be sent to you in the mail)
- Free Credit Report with Score (This is a company that will give you instant scores and reports but charges for its monitoring service.)

Clearly identify each item in your report that you dispute, explain why you dispute the information, and request a reinvestigation. If the new investigation reveals an error, you may ask that a corrected version of the report be sent to anyone who received your report within the past six months. Job applicants can have corrected reports sent to anyone who received a report for employment purposes during the past two years.

When the reinvestigation is complete, the credit bureau must give you the written results and a free copy of your report if the dispute results in a change. If an item is changed or removed, the credit bureau cannot put the disputed information back in your file unless the information provider verifies its accuracy and completeness, and the credit bureau gives you a written notice that includes the name, address, and phone number of the provider.

You also should tell the creditor or other information provider in writing that you dispute an item. Many providers specify an address for disputes. If the provider then reports the item to any credit bureau, it must include a notice of your dispute. In addition, if you are correct, that is, if the information is inaccurate, the information provider may not use it again.

If the reinvestigation does not resolve your dispute, have the credit bureau include your version of the dispute in your file and in future reports. Remember, there is no charge for a reinvestigation.

Reporting Negative Information
Accurate negative information generally can be reported for seven years, but there are exceptions:

Bankruptcy information can be reported for 10 years;
Information reported because of an application for a job with a salary of more than $75,000 has no time limitation;
Information reported because of an application for more than $150,000 worth of credit or life insurance has no time limitation;
Information concerning a lawsuit or a judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer; and
Default information concerning U.S. Government insured or guaranteed student loans can be reported for seven years after certain guarantor actions.

The Credit Repair Organizations Act (CRO)
By law, CRO's must give you a copy of the "Consumer File Rights Under State and Federal Law" before you sign a contract. They also must give you a written contract that spells out your rights and obligations. Read these documents before signing the contract. The law contains specific protections for you. For example, a credit repair company cannot:

make false claims about their services;
charge you until they have completed the promised services;
perform any services until they have your signature on a written contract and have completed a three-day waiting period. During this time, you can cancel the contract without paying any fees.

Your contract must specify:

the payment terms for services, including their total cost;
a detailed description of the services to be performed;
how long it will take to achieve the results;
any guarantees they offer;
the company's name and business address.

Refinance Guige

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Step 1: Check your credit report
<p>If you are considering refinancing your mortgage, one of the first steps you should take is checking your credit. By refinancing, you are requesting a new loan with better terms and rates, so you want to be sure all of your credit information is correct, allowing you to get the best possible interest rate. <br />
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Your credit report is based on information gathered by the three credit bureaus (Experian, Equifax and TransUnion). They gather your personal information and credit payment history to compile your credit report. From that they calculate your credit score, a number between 300 and 850. 850 indicates the strongest possible credit score and 300 is the worst. <br />
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When refinancing, lenders will look at your credit report and credit score to determine your credit worthiness. Lenders offset the risk of lending to someone who has a low credit score by increasing their interest rates or lowering the limit they are allowed to borrow. That is why you want to be sure that all of the information on your credit report is correct. Otherwise, you could be charged a great deal more than you deserve, all because of a simple error. <br />
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Since mistakes sometimes occur, especially with people with similar names and social security numbers. If you find an error on your credit report, immediately contact the credit bureau to have the error fixed. This can take time, so it's important to do this before you begin the refinance process. <br />
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And don't forget, you entitled to a free credit report once a year from each of the three credit bureaus. You can also get a free credit score with a trial membership in the LendingTree Credit Monitor program. </p>
<p><a href="http://www.emjcd.com/click-1762781-10499336?url=www.lendingtree.com/smartborrower/Guide-to-refinancing-your-home/Step-2-Find-the-right-loan-for-your-needs.aspx">Next step: Find the right refinance loan for your needs</a></p>
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Step 2: Find the right loan for your needs
<p>Refinancing is taking out a new mortgage, often with better interest rates and terms, to pay off your old mortgage. But there are other reasons to refinance, and when refinancing you should have a goal in mind. Do you want to lower your monthly payments? Save interest over the life of your loan? Use your home equity to pay for college expenses? Your goal will determine which type of refinance mortgage is right for you. <br />
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It's important, however, to understand the differences between the types of refinancing available, along with their costs and benefits, before deciding which option is right for you. <br />
<br />
<strong>What type of refinancing is right for you? <br />
</strong><br />
<strong>1. Rate and Term Refinancing</strong> <br />
For many people, the aim of refinancing is to either lower their monthly payments, pay their mortgage down faster, or reduce the amount of interest on their loan. These homeowners generally wish to keep their loan amount the same, while simply changing the way they pay it off. This is called rate and term refinancing, and it may be desirable: </p>
<ul>
    <li><strong>To get a better fixed interest rate. <br />
    </strong>If interest rates have fallen since you took out your mortgage, refinancing may enable you to get a better rate and lower monthly payments. For example, a $160,000 fixed rate mortgage with a 30-year term at 8 percent requires a monthly payment of $1,175. Lowering the rate to 6 percent drops the monthly payment to $960. </li>
    <li><strong>To stabilize your payments.</strong> <br />
    Perhaps the interest rate of your adjustable rate mortgage has gone up every adjustment period and you're concerned the trend will continue. Locking it in for a fixed term at its current rate may mean higher payments initially but will prevent you from being hit with increasing monthly payments should interest rates continue to rise. </li>
    <li><strong>To obtain better loan features.</strong> <br />
    Your credit rating might have been mediocre when you took out your mortgage, but it has since improved. Refinancing may enable you to get a lower rate or, in the case of an adjustable rate mortgage, a more protective cap (a limit on how much your payments can increase). </li>
    <li><strong>To build your home equity more quickly.</strong> <br />
    A recent change in your financial situation may make it possible for you to pay off your loan faster by increasing your monthly payments. Refinancing a 30-year $100,000 mortgage at 6 percent with a 15-year $100,000 mortgage at the same rate would raise your monthly payments from $600 to $844 but allow you to pay down the principal in half the time and save you almost $64,000 in interest over the life of the loan. However, you can also build equity more quickly without refinancing by making additional principal payments each month. </li>
    <li><strong>To reduce your monthly payments. <br />
    </strong>If you are having difficulty meeting your monthly payments, you may wish to refinance your mortgage for a longer term. For example, increasing the term of a $150,000 mortgage at 7 percent from 15 years to 30 years would reduce your monthly payments from $1,350 to $1,000. </li>
</ul>
<p><strong>2. Cash-out Refinancing</strong> <br />
The other major category of refinancing involves taking out a new mortgage with a larger principal than the one you're currently carrying. This is called cash-out refinancing and its goal is not simply to pay less interest, but to turn some of your home equity into cash. (Remember, though, that the loan is secured by your home.) For example: </p>
<ul>
    <li><strong>To free up money for a major expense.</strong> <br />
    You may have built up $180,000 in equity after 20 years of mortgage payments, and now you have two children whom you want to help through college. Rather than taking out a personal loan (which generally carries a higher interest rate with no tax advantage), you can refinance your mortgage, adding $40,000 to the principal, and use that money for tuition. </li>
    <li><strong>To consolidate debt.</strong> <br />
    Perhaps you have $50,000 in credit card debt with interest rates as high as 18 percent. Now that you have curtailed your spending, you decide to refinance your mortgage, adding $50,000 to the principal and locking it in at 6 percent. This will allow you to consolidate your debt and pay it off at a third of its present rate. </li>
    <li><strong>To combine first and second mortgages.</strong> <br />
    If you have a first mortgage of $100,000 and a home equity loan of $30,000, each with a different lender, you may wish to raise the principal of your first mortgage to $130,000 to cover both loans, with the aim of getting a better rate and more convenience. </li>
</ul>
<p><strong>Is refinancing right for you?Â <br />
</strong>As there is a cost involved with refinancing, you must determine whether refinancing makes financial sense for you. The benefits of refinancing add up over time, so if you're planning to move in a year or two, any potential savings will likely never be realized. In addition, factor in that you may be extending the time it takes to own your home "free and clear." In general, the longer you plan to stay in your current home, the more sense it makes to consider refinancing. </p>
<p><a href="http://www.emjcd.com/click-1762781-10499336?url=www.lendingtree.com/smartborrower/Guide-to-refinancing-your-home/Step-1-Check-your-credit.aspx">Step 1: Check your credit report and score.</a></p>
<p><a href="http://www.emjcd.com/click-1762781-10499336?url=www.lendingtree.com/smartborrower/Guide-to-refinancing-your-home/Step-3-Compare-offers-and-perform-break-even-analysis.aspx">Next step: Compare offers.</a></p>
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Step 3: Compare offers and perform break-even analysis
<p>Once you're decided that refinancing makes sense for your situation, you need to shop around so you can compare offers and perform a detailed break-even analysis. <br />
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<strong>The break-even point <br />
</strong>In the end, deciding whether the cost of refinancing is worth it comes down to a simple question: "How long will it take before I start to save money?" In theory, this is a simple calculation. You start with the amount you will save by lowering your monthly payment. Then you add up all the costs associated with refinancing and divide the total by your monthly savings. This will reveal the number of months it will take to reach the break-even point. <br />
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For example, let's assume that refinancing would lower your payment from $1,000 to $800 (for a savings of $200 per month) and your prepayment penalty, closing costs and points add up to $5,000. Divide $5,000 by $200 and you'll see that it would take 25 months to realize the savings. <br />
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In reality, however, your break-even point also depends on other factors, including your tax situation and whether you pay closing costs upfront or add them to the principal of your new mortgage. If you are refinancing and your home has appreciated in value, you may also be able to save by canceling your private mortgage insurance. <br />
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<strong>Comparing offers <br />
</strong>One of the first things you should look at when comparing refinance offers is the interest rate. Even a slight difference in interest rates can mean a lot of money over the life of a loan. Make sure you understand if the rate offered includes discount points, which is money you pay up front to lower your interest rate. <br />
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But the interest rate isn't the only rate to look for. Another good benchmark for comparing offers is their annual percentage rate (APR). This figure combines the interest costs and other fees charged by a lender over the life of the loan, and expresses them as a yearly percentage. Make sure to ask for an itemized list of what's included in each APR calculation, so you know you're making a fair comparison, as some lenders don't include all of their fees in the calculation. <br />
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Other details matter too: Do the lock in terms vary? Is there a pre-payment penalty? What are all the closing costs and fees? Ask for a read a Good Faith Estimate (GFE) for each loan, and ask questions if something doesn't make sense. </p>
<p><a href="http://www.emjcd.com/click-1762781-10499336?url=www.lendingtree.com/smartborrower/Guide-to-refinancing-your-home/Step-2-Find-the-right-loan-for-your-needs.aspx">Step 2: Find the right loan for your needs.</a></p>
<p><a href="http://www.emjcd.com/click-1762781-10499336?url=www.lendingtree.com/smartborrower/Guide-to-refinancing-your-home/Step-4-Closing.aspx">Next step: Close on your refinanced mortgage.<br />
</a><br />
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Step 4: Closing
<p>Completing a refinance is much simpler than closing on a home purchase. Without another party involved there are fewer hurdles. <br />
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Your lender will likely require that your home be appraised again before closing on your loan. Lenders use your appraisal to determine your loan amount, to ensure that the home isn't worth less than what they are lending. You may also want to review your private mortgage insurance policy at this point; if your loan-to-value ratio is less than 80 percent, your lender most likely won't require this. <br />
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Once the appraisal is complete, closing should be simple, though it will still require a fair amount of paperwork. It's still critical to ask your lender for all the loan paperwork a few days in advance so you have time to review it. </p>
<p><a href="http://www.emjcd.com/click-1762781-10499336?url=www.lendingtree.com/smartborrower/Guide-to-refinancing-your-home/Step-3-Compare-offers-and-perform-break-even-analysis.aspx">Step 3: Compare refinance loan offers. <br />
</a></p>
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Beware of Credit Repair Services

Legal FICO Score Credit Repair Section - Lendfast.com

Credit Repair Services

Credit Care Sections

Refinance Guige