Question

I need help in repairing mine and my husbands credit and getting out of a hole that unforseen circumstances got us into.  We are hard working people but got into a slump that never ended til now.  Now we are behind so far we are being threstened with forclosure and only a month behind.  Can you help us?

Emily S.

Answer

Emily

I am so sorry to hear of the hard times you and your family are going through.  It seems to be going around these days!

The number 1 thing you need to do is to save your house.  Mortgage lenders these days are willing to work with borrowers that have fallen behind.  With the rise in foreclosures, the last thing the banks want today is another vacant home on their books.

There are two programs that are common right now…

1)      Loan Modification: This is where your current lender will give you a new interest rate and new monthly payment to your current loan.

2)      Forbearance: This is where your current lender will tack the past due amount on to the end of your loan and you would stay making normal, current payments.

There are professional negotiators out there that can help you do this.  Normally, these negotiators tend to be attorneys.

If you would like a free referral to one, please do not hesitate to call us @ 800-445-8540.

Thanks and Good Luck.

Candice

Question

In 2000 I needed to file a business bankruptcy but since I was self  employeed I had to file a personal bankruptcy.  Since it has been  7-years what can I do or can the bad ding on my credit be taken off?  Thank you in advance for your responce.

J.R. H.

Answer

J.R.H.

According to the Fair Credit Reporting Act, a court record can stay on your credit bureau report for UP TO 10 years.  In the case of a chapter 7 bankruptcy, the 10 year time frame would begin at your discharge date.

So, unfortunately, you still have time until this is removed on its own.

If you feel anything on your report is misleading, unverifiable, inaccurate or obsolete, you have the right to dispute those items and they could be removed prior to the maximum time outlined by the Federal Statue.

In addition, many creditors look at the last two years of credit history.  So it is important to pay your current bills on time, keep you balances low, keep your inquiries low and have a healthy mixture of credit.

Hope this helps.

Candice

Question

i would like a credit card but right this moment i dont have no credit in my name.how can i get one of them so i can be better on it.

Megan J.

Answer

Megan

Building your credit score can take some time and effort.  But, it is important to do so and to do it correctly.

You may want to start out applying for a secured credit card.  This is a card that you put a deposit on and the line of credit either equals or exceeds the amount of your deposit.  The trick here is to make sure they report you as an unsecured credit card.  You may also want to consider applying for a gas card or an in store retail card.  These are usually easier to be approved for.

Always pay your bills on time and use your credit wisely, keep you balances low and your credit score should climb.

You can go here to find a credit card  http://www.creditrepair.com/credit-cards/

Also, read this article http://www.creditrepair.com/debt/credit-card-debt/using-credit-cards-wisely.htmlThanks,
Candice

Question

I am in the procross of trying to buy me my first home but i have a credit score of 517. I know that my score si low but do you think that i may be able to get a mortgage with a score that low. I also do not have the money to put down for a down payment so do you think that i will be able to get my first home with what i just told you.

Daniel M.

Answer

Daniel

Thanks for your question.  Unfortunately with the market change, a credit score of 517 will not be high enough to get a new mortgage loan. Now a days, you will need a 680 credit score or higher with the best rates going to those with a 720 credit score or higher.

There is good news though…you can become a home owner!

It will take time and a plan, but you can do it!

Some things to consider…first, start repairing your credit.  There are many ways to do this. 

1)    Challenge all questionable negative listings

2)    Pay off all collections, judgments and liens you may have

3)    Pay down your revolving accounts below 30% of their balance

4)    Start building positive credit with a gas credit card or an in store credit card and never be late on these!

In addition, it will take 20-25% of the purchase price of your new home as a down payment.  You may want to consider setting up a separate bank account and put as much as you can into that account each paycheck.  You may also want to ask family for some assistance.  There are also Down Payment Assistance programs out there.

Let us know if we can help you further.  Call us or fill out one of our forms on CreditRepair.com and we will match you to the most reputable partners in the country that may help you achieve your goals!

Thanks,

Candice

Question

how much does it cost a month to pay a credit counselor to dispute my accounts on my credit report

 James T.

Answer

James

The cost of credit repair services varies from company to company.  They range from $39 - $120 a month.  It is important to know that according to the Credit Repair Organizations Act which regulates companies that provide credit repair services, it is unlawful to collect fees BEFORE performing the work.

With the down turn in the economy, there are more and more credit repair “shops” popping up to provide these services.

Creditrepair.com will provide you with a free referral to the most reputable credit repair company based on your individual situation.  Give us a call @ 800-445-8540.

Thanks

Candice

Mortgage rates were impacted by the news that the government would take over Freddie Mac and Fannie Mae. According to Bankrate.com, a 30-year fixed mortgage dropped from 6.55% to 6.2% when the market opened on Monday September 8^th.

Read more in Marketwatch, Mortgage rates fall on Fannie, Freddie Rescue.

Jerry Howard, chief executive of the National Association of Home Builders, in an interview Monday said the government action was “a very important first step” that will help ease mortgage rates and restore confidence in the debt of Fannie and Freddie. The government bailout was aimed at lowering mortgage rates and assuring that home loans would be available to consumers. This is good news for consumers looking to buy a home. There are currently more homes on the market, and low rates. It is the perfect time to take advantage of a buyer’s market.

If you are considering a home purchase, it is important that you qualify for the lowest rates available. You can do this by taking control of your credit rating. Credit Report Repair services are just another way of optimizing your position and taking advantage of the current mortgage market.

Find out your options with a free phone consultation.

Question

I am overwhelmed in credit card debt and would like to try the debt settlement.  A company called Zwicker and Associates has already taken over my Discover card.  What can they do to me?  Is debt settlement a good idea?

Julianna H.

Answer

Julianna-

Debt settlement is usually a good program for old unpaid collections, charge offs, judgments or tax liens.

Usually, in the cases I just listed, you can get a 40 to 60% reduction in the balance that you owe.

There a few pitfalls to be aware off.

1)      The remaining balance that you do not pay on your settlement may be considered income by the IRS and is taxable as ordinary income.

2)      Your credit report will be updated as a “settlement for less than full balance” which can be a red flag for future creditors that you may apply for new credit with.

3)      Lastly, some settlement companies will take monthly payments from you until you have enough to equal the settlement amount.  Be aware that these monthly payments are going to the settlement company and not your creditors.  This means that the creditors still have the right to attempt to collect the debt including garnishing your wages, getting a judgment or seizing your assets.

Let us know if we can be of any assistance finding a reputable partner for you.

Candice

Question

How can I increase my credit score quickly?

Mary J.

Answer

Hi Mary

Good news…there are many ways to improve your credit and there are things you can do today to see some improvement quickly.

1)    You have the right to dispute any negative item that you question as being accurate, obsolete, unverifiable or misleading.  Audit your credit report and challenge any questionable negative item to make your report as accurate as possible.

2)    By off or pay down your balances.  If you have old collections, charge offs, judgments or tax liens, you should resolve these and get these satisfied.  Also, any revolving accounts need to be paid on time and keep the balances low, usually below 30% of your available credit.

3)    Build positive credit.  You should have a good mixture of revolving and installment credit on your credit reports.  And, continue to pay on time!

4)    Lastly, check your credit often.  Make sure there are no mistakes and make sure no one is pulling your credit.  Inquiries can lower your score.

If you would like a customized personalized solution to increasing your credit score, please don’t hesitate to call us.

Thanks,

Candice

Question

Hi Candice I’m having trouble trying to initiate a credit dispute with Equifax.  Everytime I give them the basic info that they want,  I’m told the can’t proceed.  Any suggestions?  Also could you recommend a web site for a professional credit repair compnany.  Thank you.

David W.

Answer

Hi David-

The Fair Credit Reporting Act allows the credit bureaus the opportunity not to research a dispute request if they deem the dispute to be FRIVOULOS.  Many times the bureaus will respond to a dispute asking for more information in an effort to see if the dispute is legit or frivolous.

The best disputes are in writing, they clearly state the account you are disputing and why you believe it to be inaccurate, unverifiable, incomplete, obsolete or misleading.  They also have a copy of the evidence backing up your belief.  For instance, if you are disputing a late payment, include a copy of the cancelled check that shows you paid on time.

It is also recommended that you send your disputes by certified mail.  Document all of your communications with the credit bureaus.

Creditrepair.com serves to match consumers to the most reputable companies in the credit report repair, debt, mortgage, auto and foreclosure industries.  Give us a call @ 800-445-8540 and we can match your personalized situation with the best partner available.

Thanks

Candice

Who is safe from Identity Theft? The answer coming indirectly out of NASA this week, yes as in the National Aeronautics and Space Administration, is that nobody truly is 100% protected from malicious identity theft criminals.  This week the International Space Station became one of the latest victims of a computer virus, known as W32.Gammima.AG. This specific virus copies itself onto computers in an attempt to steal users log-on information. Log-on information that can easily and quickly be used to, in effect, steal the identity of the computer user. 

Many times when we hear of identity theft our thoughts wander to someone stealing our wallets or purses, or perhaps recently we have heard a myriad of stories where companies, hospitals, or corporations lose computers, laptops, or memory sticks that contain thousands and even millions of data records for consumers like you and I. 

News out of NASA highlights another area that identity theft criminals can utilize; computer viruses. In early 2004 a computer virus called MyDoom successfully infected 1 million computer users in just the month of May. While MyDoom was not designed to steal the identity of others, this illustrates just how quickly and damaging the combination of viruses and identity theft can become. 

Nearly 1 in 20 adult Americans have been victims of identity theft as of April 2003 (Star Systems). Every single day identity theft rings are craftily attempting to steal your identity, passwords, social security numbers, or any other personal information that they can use to their criminal advantage.

What can you do to protect yourself?