Reasons Why You Shouldnt Go For A Debt Settlement Offer

Repairing your Credit? Write a Letter to the Credit Bureaus the Right Way



The Fair Credit Reporting Act (FCRA) establishes procedures for correcting mistakes on your credit report and requires that your report be made available only for certain legitimate business needs.

Under the FCRA, both the credit bureau and the organization that provided the information to the credit bureau (the "information provider"), such as a bank or credit card company, are responsible for correcting inaccurate or incomplete information in your report. To protect your rights under the law, contact both the credit bureau and the information provider. It's very important to follow the procedures outlined below. Otherwise you won't have any legal recourse if you have a future dispute with the credit bureau or an information provider about inaccurate information that should be blocked from your report.

First, call the credit bureau and follow up in writing. Tell them what information you believe is inaccurate. Include copies (NOT originals) of documents that support your position. If you don't have any paperwork from the creditor, send a copy of the police report and the ID Theft Affidavit. In addition to providing your complete name and address, your letter should clearly identify each item in your report that you dispute, give the facts and explain why you dispute the information, and request deletion or correction. You may want to enclose a copy of your report with circles around the items in question. Send your letter by certified mail, return receipt requested, so you can document what the credit bureau received and when. Keep copies of your dispute letter and enclosures.

The credit bureau's investigation must be completed within 30 days (45 days if you provide additional documents). If the credit bureau considers your dispute frivolous (which may mean it believes you didn't provide enough documentation to support your claim), it must tell you so within five business days. Otherwise, it must forward all relevant documents you provide about the dispute to the information provider. The information provider then must investigate, review all relevant information provided by the credit bureau, and report the results to the credit bureau. If the information provider finds the disputed information to be inaccurate, it must notify any nationwide credit bureau to which it reports, so that the credit bureau can correct this information in your file. Note that: disputed information that cannot be verified must be deleted from your file.

If your report contains erroneous information, the credit bureau must correct it. If an item is incomplete, the credit bureau must complete it. For example, if your file shows that you have been late making payments, but fails to show that you are no longer delinquent, the credit bureau must show that you're current.

If your file shows an account that belongs to someone else, the credit bureau must delete it. When the investigation is complete, the credit bureau must give you the written results and, if the dispute results in a change, a free copy of your report. 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 information provider.

If you ask, the credit bureau must send notices of corrections to anyone who received your report in the past six months. Job applicants can have a corrected copy of their report sent to anyone who received a copy during the past two years for employment purposes. If an investigation does not resolve your dispute, ask the credit bureau to include a 100-word statement of the dispute in your file and in future reports.

Second, in addition to writing to the credit bureau, write to the creditor or other information provider to tell them that you dispute an item. Again, include copies (NOT originals) of documents that support your position, like your police report and the ID Theft Affidavit. Many information providers specify an address for disputes. If the information provider then reports the disputed item(s) to a credit bureau, it must include a notice of your dispute. If you're correct that the disputed information is not inaccurate, the information provider may not use it again.

To take advantage of the law's consumer protections, you must do the following things. First, Write to the creditor at the address given for "billing inquiries," not the address for sending your payments. Include your name, address, account number and a description of the fraudulent charge, including the amount and date of the error. Send your letter so that it reaches the creditor within 60 days from when the first bill containing the fraudulent charge was mailed to you. If an identity thief changed the address on your account and you never received the bill, your dispute letter still must reach the creditor within 60 days of when the bill would have been mailed to you. This is why it's so important to keep track of your billing statements and immediately follow up when your bills don't arrive on time. Secondly, send your letter by certified mail, return receipt requested. This will be your proof of the date the creditor received the letter. Include copies (NOT originals) of sales slips or other documents that support your position. Keep a copy of your dispute letter.

The creditor must acknowledge your complaint in writing within 30 days after receiving it, unless the problem has been resolved. The creditor must resolve the dispute within two billing cycles (but not more than 90 days) after receiving your letter.

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A Self-Help Guide to Credit Repair after Bankruptcy



There are a lot of ways to get credit repaired after bankruptcy. The best way overall is to be persistent and not to give at any point after bankruptcy while trying to repair credit woes. Do not slip back into the habit of not paying, and plan carefully financial steps for the future. This might even include work habits of not changing jobs, or going back to school to better your financial outlook for the future too. Know what common sense rules should be used in building credit, and start today in doing it.

Many people do not realize until they get into bankruptcy court that a bankruptcy judgment will stay on a credit report for over 10 years. At that point many do not think that they will ever be able to repair their credit, and might just slip back into less than perfect spending habits, and never save a penny. The fact is that the longer that a bankruptcy is in the past, the less it matters to lending institutions as far as credit goes. Banks will look at it, but they will offer the same interests rates that apply for people that have never filed bankruptcy. This is especially true if a good payment history is established during the three years. Banks will look at issues too of a stable work history since that time and how much of a down payment can be made on any loan, such as a mortgage or car loan.

After the judgment is made for filing there are some common sense rules that can be used to get credit up and running on a perfect start. One of the best ways is to open a savings account and deposit money on your pay schedule from work. Try to have a set amount, but do not overload it, and not meet current financial duties. The process of late payments and delinquent accounts will start all over again, and in another seven years, bankruptcy is a possibility again. Any small amount will help, and it can be increased as time goes on. Do not risk not saving for a rainy day, and banks do look at the fact if there is a savings account with payments going in regularly for credit extensions be a person that saves, and it will help reestablish credit.

Secured credit cards are another way to rebuild credit and credit scores after bankruptcy. This is a great way to get credit for the future. However credit cards are offered to people that is secured. That means that money will have to be paid up front to a lending credit card company as security on the account after bankruptcy. A personal or cashiers check will open the account, or there is another option for the account to be opened. Any savings account can be used as the collateral for the credit card, especially those with very low limits. With payments that are made on time the credit increases will go up, but the trick is to keep the limits low at first. In the mean time do not over extend, and cause other payments to lapse. Credit scores will go through the floor and it will be harder to fix the problem with lending institutions.

Another way to rebuild credit after bankruptcy is to take out a very small loan, and pay it back in monthly installments on time. Also in store credit cards is another way to rebuild and it will lead to other offers as long as the bill is paid on regularly. Do not over extend and get to many cards with lots of low payments that can not be paid. Of course another way to make sure that credit is being rebuilt is to make sure that all black marks are taken off any credit report from the national credit reporting agencies of Experian, Equifax and Trans Union. Most of the time updates need to be made after bankruptcy and by working with the prior lending companies of the past, copies of the discharge should be made and mailed directly to them, after the credit report is looked over after the bankruptcy.

A good way to know how to plan to rebuild is to talk with a banker or take a credit management course to learn all of the ways that credit can be rebuilt after bankruptcy. Living life to the fullest and having peace of mind knowing that credit can be new again is the best reason to get on with it.