Every item on a credit report must meet three standards
1st Standard: Item must be reported within the allowable time periods. It must be reporting timely information.
2nd Standard: Item must be one hundred percent accurately reporting all of the information on the account. So all of the information on the account – name of the creditor, account number, status, date of last activity, date the account was opened, date of last delinquency, balance, payment amount, history. All that information must be reported one hundred percent accurately.
3rd Standard: The item must be verifiable. Is this item verifiable? Well, dispute can be simply that this item is not verifiable, because there was no contractual obligation, or there was no written agreement amongst any of the parties, therefore this item is completely one hundred percent unverifiable. “If you can’t prove it, please remove it.”
These are the three thresholds that every item that they’re putting on a credit report must meet. If it doesn’t meet it, they must delete it.
Current Homeowners… Do you owe more than your home is worth? Do you know there is help for you?
The I-Refi program is designed to help homeowners who are current on their mortgage payments but owe more than their home is worth. You can qualify for up to $50,000 in federal assistance to reduce the balance owed on your mortgage and refinance into a new affordable loan based on the current market value of your home. Please note that IHDA does not process loan applications. We use top performing lenders to answer questions about your unique circumstances and help you apply for a refinance.
If you would like to hear more about this program, contact us to connect you with a lender in your area! Info@GetMeApproved.info
Re-negotiate Your Current Interest
Many credit card issuers charge interest rates as high as 30% interest (APR) or higher. And most people do not realize that you can negotiate with your credit cardcompany for a lower rate, especially if you’ve had any of your credit cards for a long time.
To do this all you would need to do is to call their credit card issuer and insist on a lower rate. Even lowering the rate to 12% should save a consumer a lot of money. And the key to getting the lower rate is just to ask for it to be lowered. After all, you never know what you are going to get unless you ask!
Here’s how you can check with their issuer for a lower rate:
1). Start with a credit card that you’ve had for a long time and that they you never been late on with payments.
2). Look on the back of the card and dial the customer service number.
3). Start negotiating. Here’s a sample script:
Consumer: (Upbeat and polite) “I just got an offer in the mail for a new credit card that has an introductory interest rate of only 6.9%! I don’t really want to switch cards, because your service has been wonderful. But even though I’ve had your card for five years, I’m still paying a 19% rate on my balance. I’m going to have to transfer my balance unless you can lower the interest rate.”
Them: (Over the sound of keyboard keys being tapped as your credit and payment history are being examined.) “Hmmm … well, that is the standard rate … but let me see …”
Consumer: “Of course, I understand that, but I can pay a lot less in interest if I transfer my balance. I really need you to reduce the rate to 9% or so.”
Them: “Hold on while I check with my supervisor … OK, how about 9.9%?”
Consumer: “No problem.” (Now pat yourself on the back for saving some bucks!)
This may not work as well if you are frequently late on your payments and over your head in debt. But it can’t hurt to at least ask for an interest rate reduction.
If you have a solid track record, handle your obligations, and are generally polite, your card issuers should be willing to offer you a lower rate to keep from losing you to their competition.
4). Keep trying. If you dont get what you want the first time, tell them to get another customer service rep or a supervisor on the line. They still won’t lower the APR? Try again in a few months.
5). Do not get angry. I have found that I am far more successful in all financial endeavors when being polite. These financial “gatekeepers” have angry people calling them all day long. Imagine what that must be like. If you’re nice and treat them with extra respect, they often return the favor and give you a little extra care.
Costly Mistakes In Disputing
Let me share the most devastating and frequent mistake I see from so-called credit repair firms. Some of the big boys in this industry are making this mistake every day. Avoid this At All Cost!
Do NOT dispute OLD closed accounts or OLD charge-offs just because they have negative payment e.g. over 30 days late….
If you have a limited credit history, removing that old account will reduce your credit score. You must remember all of the factors that go in to a keeping a good score e.g. Credit History, Credit Use, Length of Credit, Type of Credit, and Inquires.
If you dispute an account and it is closed, it is virtually impossible to get it back on the credit report again. If this happens to you, just hope that the creditor will respond to the inquiry from the credit bureau and return the entry.
Remember that a charge-off account will never turn into a good account but an account that had a late payment will show positive within 12-24 months, but a closed account late payment will be reported for 10 years from the closed date. Take a look at your entire history and score before you just start disputing items—even if the account does not belong to you.
I just saw a case of a person who used one of the large credit repair companies and walked in with a 650 score. They were preparing to get a mortgage wanted to increase their credit score. The company took action and this person score dropped to 609 because of this mistake above. They were angry of course but the negative item was removed and it was part of the agreement—so the company did their job. Please assess what’s helping and hurting your score.