What is FICO

FICO is a way of reporting your credit with a score within a range of 300-850 with 300 being below standard, 500 being poor, and 700+ being A+ credit. FICO stands for Fair Isaac Company credited with creating this scoring method from the information in your credit report. According to myFICO.com 90% of lenders use this credit scoring system. It would be a good idea to know your score. This score determines what APR you will receive for a mortgage or auto loan. Therefore it determines how much your monthly payments will be. For a score of 500-600 you may pay 3% or more in interest per month than a neighbor buying the same item with a credit score of 700-800. This cost someone with a low score thousands more dollars a year for the same item. Needless to say some credit card companies and other lenders to those with bad credit take full advantage of this information to charge extremely high interest rates.

How Long Does Credit Reporting Remain on Record

At the end of seven years most debts are cancelled. The adage time heals old wounds applies even to credit scores as derogatory information such as slow pays, etc., will be removed from your report after seven years. Reports relating to good credit standing are generally retained on your records. Once these damaging entries are removed from your report. Your credit score should improve your credit repair efforts. Be careful to make timely payments and watch for error reporting.

How Can I Correct Errors on my Credit Report

The best way to address errors once you obtain copies of your credit report from all three credit bureaus (see below) is to write each of them. Document all of the errors and write out your dispute with the report along with copies of any proof you may have. Also contact the creditor that made the error and do the same. Keep copies of all your correspondence and follow up to ensure the corrections have been made. Credit repair efforts may improve your score after these corrections have been completed.

Removing Bankruptcy from My Credit Report

Have you looked at your credit report lately. You are entitled to a free report once a year depending on specific requirements relating to your personal credit history. Contact Experian.com, TransUnion.com, or Equifax.com. If you have filed bankruptcy, according to these credit bureaus your credit report will continue to list this information for ten years. Though you cannot remove the bankruptcy information, you can add a clarification by detailing the circumstances that surrounded the decision to file. A lender may take into consideration this information in determining your creditworthiness. If for example your bankruptcy was due to a life threatening accident and lengthy recovery that caused you to lose your job. Now that your health is restored there may be little or no chance of this recurring; therefore a lender may be willing to extend you credit.

A. Johnson (Tonimaree), Director at Business Business Content Publications, writes SEO content articles, technical documents, and reviews for online sites (over 15 years).  http://ToneeJohnson.com

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1. Dealing With Debt Collectors
2. Celebrity Identity Theft Cases
3. Free Debt Consolidation Services Resources

If the account they are contacting you about is accurate then you should ask for debt validation. This should be done in writing.

If you neglect to do this and ask for validation over the phone 99% of the time it will be completely ignored. Additionally send it certified mail so you have proof that they received your validation letter.

If you account is validated and is within the statute of limitations in your respective state then you can negotiate payment. Limitations are typically seven years from the first date of delinquency.

When negotiating a settlement payment you should never pay the full amount. This is because your account has been bought from the original creditor for just pennies on the dollar. We suggest you start your settlement offer at 50% of the balance.

The agencies will always accept partial payment. This is because there only way to recoup the money they spent on your account is by accepting your payment or selling it for a fraction of what they paid for it to another agency.

When you and the agency agree on a settlement payment you must get in writing from them that in exchange for your payment they will not report any negative information to the bureaus. If you fail to do this you will stop the phone call but you will have a whole new set of problems because of a damaged credit score.

If you just pay the debt it will be recorded as a paid collection. This is still a derogatory mark on your credit and will not improve your score.

Again, you must get in writing that negative information is not going to be posted to your report regarding the debt. Occasionally that negative information has already been reported you must get them to agree to remove it from your report.

If you do not do this there is no benefit to paying the collection. Additionally always pay with a paper check and no other form of payment. Just so you know you can actually use the memo line to repeat the agreed upon contract regarding the bureaus reporting, and once the check is cashed you will have a binding contract.

If you are being harassed by a collection agency you are not alone. Additionally they only can legally do so much. The Fair Debt Collections Practices Act says that a debt collector can not;

- Threaten legal action (arrest, jail)

- Constant harassing calls

- Call your job (once asked not to)

- Claim to be anyone they are not

- Threaten to sue (unless they are taking legal action)

- Threaten to garnish wages or seize property (each state is specific about what is legal, often a court order is needed)

- Call your neighbors or family members and speak with them about your debt

- Only call between 8am and 9 pm

- Call you if you have said to them that you will not accept calls regarding this debt.

Often these regulations are ignored. If you have been a victim you should report the agency to the FTC and the Attorney General. A majority of collection agencies have been fined because of violation of the FDCPA.

Additionally you can file a lawsuit against the agency and be awarded monetary damages. Make sure to keep all communications in writing in case they are in violation.

For a free credit consultation call 1-866-246-7311. If you want information on how to deal with Midland Credit or Palisades Collection two common debt collectors visit us.

Article Source: http://EzineArticles.com/?expert=John_W_Cooper
http://EzineArticles.com/?Dealing-With-Debt-Collectors&id=1933852

©2012 411Lowdown.com. All Rights Reserved.

Related posts:

1. Free Debt Consolidation Services Resources
2. Celebrity Identity Theft Cases

The half brother of comedian Dane Cook has pleaded not guilty to embezzling millions from the comedian and ordered held on million bail.

Darryl McCauley was arraigned Wednesday at Woburn District Court on charges including forgery and larceny. Prosecutors alleged that McCauley, 43, stole the money from Cook while being paid $12,500 a month to act as Cook’s business manager as part of his company, Great Dane Enterprises, Inc.  Read the full story at AccessHollywood.com

Sucks to be you Dane, but you’ve gotta have a better idea of where your money is going.  To be burned by your half-brother too… that’s low.

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1. Michael Jordan getting a divorce

Consolidated Credit Counseling Services. INC

Consolidated Credit Counseling Services Inc for example offers everything you need to begin to get your finances back in your control. Their free debt consolidation services cover credit card debt or any other debt problem you are dealing with.

The company was established in the early 1990′s and has become an industry leader in credit counseling and debt management programs nationwide. Their whole reason for being is to make it possible for people drowning in debt to end whatever financial crisis they’re experiencing so they can get back to their lives, debt free and wiser.

Consolidated Credit Services Inc. helps individuals solve money management difficulties through professional counseling and education. They not only deal with the debt you have now, they teach you how to avoid the pitfalls and mistakes that brought you to them in the first place.

Debt Consolidation Care

Another free debt consolidation service is known as Debt Consolidation Care. Here financial coaches offer advice on consolidation and payday loans, dealing with creditors, collection agencies and more.

The financial advisers can help lower payments and interest, put a stop to collection calls, help you to avoid bankruptcy, end late fees and pay off your debt at once leaving you just one monthly payment to deal with. You’ll not only learn how to become free from your crushing debt, you’ll acquire the tools and knowledge to take steps to avoid repeating the mistakes of the past so you can live debt free from here on out.

Being deep in debt is one of the worst experiences to have to go through. Free debt consolidation services can help you take care of that debt so you can finally relax and learn to live debt free.

This article was put together by Frank Froggatt, an expert on non-profit debt consolidation If you got it bad and are suffering under a burden of debt, you can begin the process of freedom from financial bondage by visiting mydebtconsolidationsite.us.

Article Source: http://EzineArticles.com/?expert=Frank_L_Froggatt
http://EzineArticles.com/?Free-Debt-Consolidation-Services&id=1953039

©2012 411Lowdown.com. All Rights Reserved.

Related posts:

1. Celebrity Identity Theft Cases

Mayor Bloomberg’s Identity Fraud Disaster

New York Mayor Michael Bloomberg has fallen victim to celebrity identity fraud. Two identity thieves forged checks on the mayor’s checking account, to the tune of $10,000! The celebrity identity fraud victim’s nightmare ended when the crooks got greedy. They tried to cash checks totaling more than $400,000 and they got busted during identity verification. The two men, Charles Nelson and Odalis Bostic, were charged with grand larceny and Nelson was also charged with identity theft.

Will Smith Becomes a Celebrity Identity Theft Victim

Movie hero Will Smith became a victim of identity theft when a man used Smith’s identity to open more than a dozen credit card accounts in Pittsburgh. The man ran up $33,000 in credit card charges before he was apprehended. At the time of his arrest, the thief was already on probation for identity theft crimes — against another celebrity victim! The man had already spent more than $80,000 on a credit card in basketball player Steve Smith’s name.

Credit Monitoring Prevents Identity Theft

You don’t have to be a celebrity to get world-class identity theft protection. A credit monitoring service provides you with updates and information about your credit history and credit score and immediately notifies you about suspicious behavior on your accounts. Your   credit monitoring service  will provide you with information about new accounts opened in your name and also will alert you when creditors request information about your credit history, which may indicate potential identity theft.

Article Source: http://www.articlesbase.com/finance-articles/celebrity-identity-theft-cases-371007.html

About the Author:
Lisa Nichols is a freelance writer, website content strategist and marketing and PR strategy consultant. Originally from Eugene, Oregon, Lisa is currently based in Covington, Kentucky (also known as greater Cincinnati, Ohio).

©2012 411Lowdown.com. All Rights Reserved.

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Our Country’s Mortgage Crisis

Many home buyers and people seeking to refinance their existing home loans these days are, for lack of better words, “shit out of luck”.  The mortgage and banking industry has taken advantage of the highly overated economy and rising home prices in most mainstream markets. 

While many homeowners are also to blame for the mortgage crisis, the loan officers, homebuilders and mortgage lenders are primarily responsible for the worrisome circumstances that the country sits in now.  In addition to providing high-interest ARM loans to people who couldn’t afford the homes they were buying, lenders and buyers both manipulated the paperwork required to get a home loan in order to get approved for their mortgage. 

Buyers were led on by promises of low starting interest rates for their home purchases, an over-hyped housing market and rising home prices, and the hope of refinancing their mortgages as the ARM interest rate started to rise.

What’s really happened is that the market has adjusted and those same homes (over appraised) are now worth less than the loan amount, lenders are filing bankruptcy, closing their doors and laying off thousands of employees.  Homeowners can’t refinance their loans because they can’t qualify and foreclosures are rising at unbelievable rates.

Taking Responsibility For Actions

As in any industry, there are good times and their are bad times.  The mortgage industry has enjoyed the good times for a long time without any bad times, and the people working in that industry have taken advantage of the system for far too long.

It appears that the government (Fed) will help out many of the larger companies by offering them low interest rate loans to help keep them afloat.  While this is probably the best thing for the economy in the short-term, it would seem to further bolster these people in the mortgage industry that they can continue to take advantage of us without repurcussions.

These companies that have screwed up should pay for their mistakes; they should not be bailed out.  If all the loan officers, processors and other higher-ups who’ve been buying up BMW’s, boats, vacation homes and other extravagant purchases have to give up their new toys because they can’t afford them anymore… too bad!!!

Mortgage Rates, Points, Commissions

I have several friends and relatives that work in home building, real estate and mortgages.  At least in the real estate and mortgage side, “most” agents, brokers, processors and officers are being overpaid – YES, overpaid. 

You work 10 hrs to close a $300,000 loan and you’re going to take home even 1% as a loan officer – that’s $3,000 for 10 hrs of work, or $300 per hour.  Last time I checked, most doctors, lawyers & attorneys don’t even charge those rates. 

Even worse, are the “big home purchases” where each person involved in the loan process gets the same percentages that they do on the small purchases.  While working the same 10 hrs to close the loan, getting 1% of a $3 million home purchase comes out to $30,000 commission, or $3,000 per hour.

While I might be underestimating the time it takes to process a loan, even if you double the hours the amounts of money these people are making is ridiculous.  What’s worse, is that these same people are adding “points” to the loans to make themselves even more money – all at the home buyers expense.  Afterall, what’s an extra $500-1,000 on a $300,000 loan – it’s only a few dollars a month more on the mortgage payment -hell, the buyer might not even notice it.

I completely understand that the loan officers and loan processors are making the least amount of money in the sale – there’s a hierarchy of people just racking up dollars for doing very little.  Yes, there’s some risk involved, but if you provide solid loans to people that are qualified to receive them – there’s little risk involved in lending them money.

This is just my 2 cents…

(if you know me, please understand this is nothing personal – just my opinion on the issue)

Other Mortgage & Financial Headlines:
As Mortgage Industry Retrenches, Industry Job Cuts Surpass 40,000
Citi, JPMorgan Chase, Bank of America and Wachovia Say They Borrowed $500M Each From Fed
Countrywide Financial Says Bank of America Made Equity Investment of $2 Billion Into Company

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