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How to Write a Credit Repair Dispute Letter

admin — Thu, 29 Apr 2010 15:46:08 +0000

Are you contented with your credit report? If your score is 700 or above, you may well be but if it is 600 or under, you should worry since you will be paying more when you try to get a loan or purchase something. If you think that your credit score should be higher, you should know how to write a credit repair dispute letter.

Before you can write your credit repair dispute letter, you need to first a copy of your credit status. You can obtain this for free from one of the three credit agencies namely Equifax, Experian or Trans Union.

When you get the copy, review it carefully and check if there are any errors. Take note of every one and then being composing your letter.

Since the credit agencies gave you the report, the errors you would like to dispute has to be addressed to them. Since the report from the three credit agencies may vary, it can be a good idea to send each one a copy so everybody is on a similar page relating to your credit rating.

Don’t make the mistake of putting all the errors in one letter. It is most beneficial to dispute each claim one at a time so the credit agency will not think that you are simply pulling their leg. You do not have to wait for an answer before sending another one it’s just that each claim must be handled delicately so a proper investigation into the matter can be achieved.

You should afford the credit agency time to reply to the claims you have disputed. The reason for this is the credit agency will conduct their own individual investigation before sending you a response. To make their work a little easier, send maintaining documents when you write the credit repair dispute letter.

It may not be a big deal but when you write a letter to the credit agency, consider writing it rather than typing this and printing it on paper.

To prove a point, it is better to use strong words like erroneous, outdated, misleading or unverifiable. Remember, you do not have to go into detail well why you are complaining because the maintaining documents and an investigation will make the truth come out.

For individuals who have never written a dispute letter before, the’re some samples which you can copy online. Just change the name, the date and a few other points because your concerns are completely different from what was established as a guide.

When you finished writing the credit repair dispute letter, mail it using the postal service and just wait. Typically, it may need 2 seven days to a calendar month before they receive it. If the investigation has demonstrated that you are right, you will receive a new credit status 2 to 4 weeks later with a higher credit score.

Since 1970, the Fair Credit Reporting Act of FCRA has been in place to give people the opportunity to dispute the claims that are printed on their credit status. If you believe that the report is false, do not just accept it but take steps so this can be changed.

Now that you know the way to write a credit repair dispute letter, get a copy of your credit report and then review it thoroughly.

Keith has been writing articles online for nearly 4 years now. Not only does this author specialize in credit repair but you can also check out his latest video on Car Accident Claim. Help is not hard to find for Accident Injury Compensation if you look hard enough. Keith’s video has lots of information on Whiplash Compensation and is available for any questions you may have.

How to Smartly Manage Your Credit Card Charges

admin — Mon, 08 Jun 2009 11:47:33 +0000

As a card holder, what can you do to stay out of credit card debt? Here are 6 tips on how to handle your account the smart way:

1. Be aware of your credit card’s exact terms. How well do you understand your credit card’s Terms & Conditions? Surprisingly, many cardholders are not even aware of their exact interest charges, transaction fee costs and penalties. If you’ve had that credit card for a long time, has there been any change in your interest rate and fees? Do you take the time to read your credit card mails? Remember, your credit card company can increase your charges at anytime as long as you’re given the 15-day advance notice.

2. Ask for a lower rate. If your credit card has increased your interest rates, you can call them up, speak with the manager and ask for a lower rate. Don’t be afraid to point out the interest rates that other credit card companies offer. If you feel that you need to threaten your credit card issuer of leaving, go ahead and do so. However, it’s best to raise your issues politely and with dignity. If your credit card company refuses to give in, you can try calling them again after a month or two.

3. Maintain an excellent credit score. You’ll have more negotiating power if you have an excellent credit score. Lenders simply can’t say no to your requests, as long as they’re reasonable. If you’re applying for a new credit card, the best credit card deals often require excellent credit. If you’re asking for a lower interest rate, you can easily point out that you are one of their best customers and they can’t afford to lose you. Furthermore, a high credit score protects you from sudden increases in your rates and charges.

Business Credit Cards and Personal Liability

admin — Sun, 18 Jan 2009 10:31:22 +0000

For a new business, the basis for credit card approval usually depends on the business owner’s personal credit history. By carefully reviewing your contract, you can become more aware about the personal liability clause imposed by your bank or business credit card issuer.

Personal Guarantee on Business Credit Card

The moment you sign your business credit card agreement, you become personally responsible for your business account. In case the business fails, you- the business owner is still accountable for all debts charged to your business credit card.

Building Corporate Credit for Your Business

admin — Fri, 22 Aug 2008 04:03:01 +0000

If you own a business, then you’ll be interested to learn how to build a corporate credit. What are the steps you need to take to build a corporate credit? Why is it important to establish your company’s credit? Let’s discuss these two questions more closely.

What is corporate credit?

Corporate credit is used to define the credit history of a business, a company or a corporation. As the term implies, a sole proprietorship cannot apply for a corporate credit since it would too easy for anyone to declare that he/she is operating a business. To qualify for a corporate credit, a business needs to prove that it is a partnership, a Limited Liability Corporation (LLC) or a corporation.

Why is it important to have corporate credit?

As an individual, no doubt you are aware about the status of your personal credit history. Your credit history shows your track record in dealing with different creditors.

Obviously, an excellent credit rating would make you an impressive candidate for all lenders. On the other hand, a poor credit score would make you a high-risk borrower in the eyes of lenders. A poor credit would make it more difficult for you to get approved for new accounts or demand lower rates.

The same principles apply to businesses. By establishing a separate credit history for your company, you are building a solid foundation for your business. Thus, any time you need to get a business loan or a business credit card, it would be easier for you to get approved and choose lenders with the best deals.

Furthermore, having corporate credit protects your personal credit history from debt or damages in case the business doesn’t go as expected. Without corporate credit, you- the business owner- would be solely liable for all debts incurred in your business account. Failing to keep up with your payments would also affect your personal credit score. For this reason, entrepreneurs are advised to establish a separate business and personal credit history as early as possible.

How do you establish corporate credit?

Before applying for corporate credit, your business must have a valid physical address and a business telephone line. Secure all business licensing and permit requirements in your State or local region. Next, register your business with Dun & Bradstreet – a leading credit tracking agency for businesses.

See to it that all lenders and suppliers you deal with report your payments to the business credit bureaus as this is the only way to build up your corporate credit. You can also apply for a business credit card to build up your credit history more quickly. Again, make sure that your business credit card issuer regularly reports to the business credit bureaus.

Take note that your personal credit history would be checked when you apply for a business credit card. However, after a year or two, when you have built a separate credit history for your company, your corporate credit would be used for all your business dealings with lenders.

Top 10 Pointers on Building Good Credit

admin — Thu, 30 Aug 2007 08:08:00 +0000

Is there a secret to building good credit? The truth is, everyone has the power of building good credit. Sometimes, people just forget about the important steps of building and maintaining good credit along the way. Here are the top 10 pointers on credit building that we all must remember:

1. Open a Savings Account. One way to establish good credit is by opening a savings account. Anyone can have their own savings account, even those below the legal age of 18. You don’t necessarily have to own a credit card right away in order to build credit. A bank savings account in your name is a good start.

2. Open a Department Store or Gas Station Card. A department store card or a gas station card doesn’t impose strict rules to get an approval. In fact, for people without a credit history, these cards are great stepping stones in building one. These cards work much like credit cards in a way that you can borrow credit from your account and pay your balances on a monthly basis. However, since these cards can only be used in exclusive gas stations and limited establishments, you can have more control with your spending and stay away from bad credit.

3. Understand your credit score. Your credit score will be based on two major things. The timeliness of your payments and the how much of your credit is used. However, other things can also have a negative effect on your score like submitting too many applications to different creditors. Understanding how your credit score is calculated will give a better idea on what to do and what not to do to keep your credit in good standing.

4. Don’t be late. Many consumers do not realize the value of paying their bills on time. Even if your credit card doesn’t charge you a high interest, that’s not an excuse to be late on your payments. Bear in mind that a single late payment will affect your credit score.

5. Don’t max out your credit. Aside from promptness, maxing out on your credit limit should be a big no. Ideally, a card holder should not spend more than 30% of his allowable credit if he wants to have an excellent credit score.

6. Pay your balances in full. Contrary to popular belief, leaving a balance on your account will not give you a higher credit score. But paying just the minimum amount of your balance puts you at more risk. You should always aim to pay off your balances in full as much as possible.

7. Get help from a co-signer. Finding a credit card with good rates is too difficult if you have bad credit or no credit at all. Still, with the help of a co-signer with excellent credit, it is possible for you to open a credit card or a loan without resorting to subprime lenders. However, keep in mind that your co-signer is accountable for your debts so be a responsible borrower.

8. Be vigilant on the use of your credit card. Every credit card holder must always be conscious on the use of credit cards. Charge only what you can afford to pay. Don’t get in the habit of using your credit card for purchases that you use to pay in cash. Always remember that credit cards can put you in bad credit in just one swipe.

9. Regularly check your billing statements. Awareness of your credit is crucial. Study your billing statements regularly to make sure that all charges in your account are correct. This will also help you take note of the due dates and pay your bills on time.

10. Budget your money. Finally, building good credit will depend on how you handle your money. Make sure that you are not spending more than what your monthly income allows. Aside from your personal needs and paying your creditors, don’t forget to allot a portion of your budget to your savings account and to your emergency fund. This way, in case unexpected events get in your way, you’ll be financially ready.

Help for People with No Credit

admin — Sat, 18 Aug 2007 01:34:52 +0000

People with no credit history find it harder to deal with a society that uses credit history to measure one’s credibility and credit worthiness. Banks, financial institutions, landlords, employers – they all look into an individual’s credit report when considering an application.

Yes, even landlords and employers check on your credit history before accepting you as a tenant or as an employee. Even if you’re not thinking about getting a loan, without a credit history, it can bring about some problems with your finding a job or a place to live.

But what if you have no credit? Does that put you in a hopeless situation? Is it possible for you to build credit? The answer is yes! Let’s talk about the ways on how you can establish your credit history today.

Get a department store card. A department store card works just like a credit card but you can only use it with one particular store. You can use this card to purchase items from the department store and pay it back by the end of the month. The difference is that department store cards are easier to obtain and does not require a credit history to get approved. In fact, many people who have no credit start with a department store card to establish credit.

Get a gas station card. Just like a department store card, a gas station card is a credit card used to purchase from a particular gas station. You don’t need a credit history to get a gas station card but it’s a good way to build one. Just remember, whether you have a department store card or a gas station card, it’s important to pay off your monthly balances on time.

Open an account with a co-signer. Another way to build credit history is to ask someone to co-sign for you. Banks or lenders will check on your co-signer’s credit history instead. Once you get approved, you can start building your credit history slowly. Always keep in mind that your co-signer will be accountable for all your debts. Be sure to pay off your dues on time and be a responsible borrower.

Apply for a secured credit card. A secured credit card will require you to submit a security in exchange for your credit. You can use your home or a land title as a security to start building your credit.

However, be aware that it puts you at risk of losing your property if you fail to keep up with your debts. Thus, it is extremely important not to delay or miss any of your dues. You also have to be very carefully on using your credit card.

These are your options to start building your credit now. Remember, the key to building a good credit history is to pay your bills on time. Be constantly aware about your payment dates so you wouldn’t delay or miss in submitting your payments. Furthermore, be aware of your spending and make sure that you can afford to pay back what you owe.

Top 10 Blunders on Using Credit Cards

admin — Tue, 14 Aug 2007 12:40:52 +0000

Whether you’re a first time credit card holder and has been using credit cards for a long time, it’s time to make a check on how you’ve been using that plastic.

Here are the top 10 most common blunders that credit card holders often commit:

1) Closing the wrong credit card accounts. Thoughtlessly closing your unused credit card accounts can do more damage than good for your credit. Yes, owning many credit cards do not increase your credit rating, but closing the wrong credit card accounts can decrease your credit rating. How? Closing an old credit card account is like deleting an essential part of your credit history.

How far back your credit history goes is an important factor on your credit. Thus, if you want to avoid spending on your old credit cards, don’t close them. Use them after every few months for a small amount of purchase to prevent your banks from closing them. If you just have too many credit cards in your account, make sure you don’t close your old ones.

2) Maximizing the use of your credit. Maximizing on your credit limit has a negative impact on your credit standing. Financial consultants recommend all credit card holders not to go beyond 50% of their allotted credit. Not only does this protect you from getting stuck in bad credit, it also protects you from being seen as a high-risk borrower by your creditors.

3) Not paying your credit card balances on time. Delaying or missing on your credit card payment is just plain bad habit. In fact, most people who have bad debt or who had to file bankruptcy started with unpaid credit card bills. Not paying your credit cards on time charges you with high interest and penalty fees that could’ve been prevented if you paid your dues promptly.

4) Excessive spending. Overspending on your credit cards is a dangerous practice. First of all, credit cards often come with high interest and if you can’t pay off your monthly balances, you’re in trouble. As much as possible, don’t use your credit card on unnecessary spending or things that you can pay for in cash. If you must use your credit card, make sure that you have planned a way to repay it before its due date ends.

5) Submitting credit card applications to different banks. Do you often apply for a credit card even without the intention of getting it? Perhaps you’re just after a free t-shirt or other freebies that the credit card company offers for new applicants. Watch out! Submitting too many applications to different banks and lenders can be very damaging on your credit. Remember, each time you apply for credit, creditors automatically check on your credit report. Too many inquiries and rejected applications on your credit report affect your credit score.

6) Signing up for the first credit card offer. It’s easy to get enticed by different credit card offers. Credit card companies often use attractive advertisements just to get new clients to sign up. However, if you’re not careful, you might miss the real terms or hidden charges that come with the card. If you want to get a credit card, take the time to compare different credit cards and make sure you clearly understand all the terms and conditions.

7) Using your credit card to take cash advances. Some credit cards also work as debit cards and allow its holders to take cash advances. However, be aware that these come with high interest and you’re charged with the interest immediately after you made the advance. Never use this option unless in extreme emergency.

Paying only the minimum on your credit card. Paying only the minimum extends your repayment period. Not only will it hurt you with interest fees, it also puts you at risk of being stuck in bad credit.

9) Not checking on your credit card statements regularly. Every credit card holder must pay close attention to his credit card statements. Always ensure that there are no incorrect or fraudulent charges in your account. Furthermore, updating on your credit card statements regularly helps you submit your payments on time.

10) Failing to read the credit card agreement. Your credit card agreement contains all the terms and conditions of your card. It contains your rights and obligations as a credit card holder. A credit card agreement is a binding contract and once you’ve signed up, you’re forced to comply with what’s in the contract.