A friend at myfico.com wrote this in a post and I thought I'd share it here on my blog I liked it so much.
Superb (820 and up) (midnight blue) (rank: god/goddess)
You are the king (or queen) of credit. You have a very long history of polishing your financial brass to a blinding gleam, with nary a misstep or a jot out of place, and it shows. You have managed to avoid even the tiniest of misfortunes. There's a plaque next to third base at Wrigley Field commemorating your birth there. Traffic signals turn green at your approach. Lenders will fall all over themselves to give you the lowest possible rates, and may even ask you for your autograph. Who is your publicist?
Excellent (775 to 819) (deep blue)(rank: emperor/empress)
While a little short of perfection, your credit is sterling, obviously the product of many years of good financial management (or extraordinary luck). You'll have no trouble at all getting a great deal on a house, car, or aluminum siding, and you can count on plenty of willing lenders. In fact, if you go to any buyer's fair for homes, or to a car lot, you had better carry a Taser at full charge to fend off the foaming-at-the-mouth salesmen. Yours is the charmed life.
Very Good (740 to 774) (azure) (rank: king/queen)
Congratulations. Your credit is quite up to the task of securing any loan, and at excellent rates. You could get your FICO higher, but what's the point? You're decidedly above average, a cut above the rest, so why work harder than you have to? The only value of credit surpassing yours is snob appeal, and who needs that?
Good (710 to 739) (turquoise) (rank: governor)
You have good credit. Not outstanding, not perfect, not as handsome as Adonis himself, but quite respectable. You're responsible, but you have better things to do in life than obsessing over your FICO score or those few extra pounds on your waistline. You should get that car loan or mortgage you want, at rates just a few hairs above the bottom.
Decent (675 to 709) (green) (rank: mayor)
Your credit is right around average. Average isn't bad. Maybe not good, but not bad either. You'll be eligible for almost any loan, but not at the best rates. Keep rowing harder, and you can get ahead!
Fair (625 to 674) (spring green) (rank: principal)
Your FICO score is in a gray area. You're below average, but you aren't low enough for anyone to make any snide remarks. You're just sucking along a couple strokes above par. Mediocrity is the American way, so don't be ashamed. If you want to bother, you can raise your FICO and significantly improve your interest rates. And did we mention your ScoreWatch subscription will also give you whiter teeth?
Shaky (600 to 624) (yellow) (rank: store clerk)
At this level, a few people may raise their eyebrows. You're far enough below average to definitely not be in the In crowd. Mortgage brokers and car loan bankers will approve you, but grudgingly, and for rather high rates. At least they won't spray the chair you sat in with Lysol after you leave, so be grateful for small favors.
Poor (550 to 599) (orange) (rank: busboy)
Your FICO is in definite need of help. If you golfed as well as you managed your credit, you'd have a hole in ten. Suffice it to say you won't be on the guest list of any parties in the better parts of town. Not only will your loan applications probably be rejected, but they WILL Lysol the chair after you leave their office. Sucks to be you. Stick to the secured cards and avoid needless humiliation.
Bad (480 to 549) (red) (rank: bum)
You're just one short step above untouchable. Your loan and credit applications will be fished out of the incoming mail cart with tongs by clerks dressed in full environment suits, and fed into the incinerator unread. Take heart though, because your class of FICO underachievers has driven a whole new area of innovation: the max fee credit card. Your statements arrive with postage due. In addition to the $1000 deposit for your $200 line of credit, you also have a membership fee, an account maintenance fee, an annual fee, a stamp-licking fee, a balance change fee, and a payment processing fee. Oh, and every time you read your paper statement or load the Web page with your electronic statement, that'll be a $2.99 statement reading fee.
Terrible (below 479) (maroon) (rank: leper)
Your FICO sucks. You must have worked hard to get such lousy credit. Have you ever paid anything on time? Your luck is beyond bad. If you entered into a bet involving a coin toss, and were guaranteed five times your original stake for heads or tails, the coin would land on edge and stay there. If you bet there was going to be hot weather this summer, the Earth would fall off its axis and we'd slide into an Ice Age. No one will ever offer you credit. If you could put up the Saudi oilfields and the Taj Mahal as collateral, you couldn't even borrow enough money for lunch at McDonald's. You can't even get a punch card at the local deli. The library will ask you for your card back. And even if you could get into the loan department of a bank before the Dobermans were released, you would see a picture of yourself on the bank wall, the caption reading "Do NOT give this person credit for ANY reason WHATSOVER!!!!"
Reason Codes that Creditors use when Denial of Applications
Creditors can use one of these items or multiple depending on the scoring system used when an applicant get's denied.
Be aware that you have the right to know why you've been denied a credit account.
Be aware that you have the right to know why you've been denied a credit account.
CREDIT BUREAU RISK SCORE REASONS |
EQUIFAX
FACTA BEACON 5.0
|
TRANS UNION
EMPIRICA
98
|
EXPERIAN
FAIR ISAAC
VER 2
|
| Amount owed on accounts is too high |
1
|
1
|
1
|
| Level of delinquency on accounts |
2
|
2
|
2
|
| Too few bank revolving accounts |
3
|
N/A
|
3
|
| Too many bank or national revolving accounts |
4
|
N/A
|
4
|
| Too many accounts with balances |
5
|
5
|
5
|
| Too many consumer finance company accounts |
6
|
6
|
6
|
| Account payment history is too new to rate |
7
|
7
|
7
|
| Too many recent inquiries last 12 months |
8
|
8
|
8
|
| Too many accounts recently opened |
9
|
9
|
9
|
Proportion of balances to credit limits is too high on bank revolving or other revolving accounts
|
10
|
10
|
10
|
| Amount owed on revolving accounts is too high |
11
|
11
|
11
|
| Length of time revolving accounts have been established |
12
|
12
|
12
|
| Time since delinquency is too recent or unknown |
13
|
13
|
13
|
| Length of time accounts have been established |
14
|
14
|
14
|
| Lack of recent bank revolving information |
15
|
15
|
15
|
| Lack of recent revolving account information |
16
|
16
|
16
|
| No recent non-mortgage balance information |
17
|
17
|
17
|
| Number of accounts with delinquency |
18
|
18
|
18
|
| Date of last inquiry too recent |
N/A
|
19
|
N/A
|
| Too few accounts currently paid as agreed |
19
|
27
|
19
|
| Length of time since derogatory public record or collection is too short |
20
|
20
|
20
|
| Amount past due on accounts |
21
|
21
|
21
|
| Serious delinquency, derogatory public record or collection filed |
22
|
22
|
22
|
| Number of bank or national revolving accounts with balances |
23
|
N/A
|
23
|
| No recent revolving balances |
24
|
24
|
24
|
| Number of revolving accounts |
26
|
N/A
|
26
|
| Number of established accounts |
28
|
28
|
28
|
| No recent bankcard balances |
N/A
|
29
|
29
|
| Time since most recent account opening too short |
30
|
30
|
30
|
| Too few accounts with recent payment information |
31
|
N/A
|
31
|
| Lack of recent installment loan information |
32
|
4
|
32
|
| Proportion of loan balances to loan amounts is too high |
33
|
3
|
33
|
| Amount owed on delinquent accounts |
34
|
31
|
34
|
| Serious delinquency and public record or collection filed |
38
|
38
|
38
|
| Serious delinquency |
39
|
39
|
39
|
| Derogatory public record or collection filed |
40
|
40
|
40
|
How to remove a collection account older then 7 years +
The Fair Credit Reporting Act (FCRA) mandates that past due accounts that are older than 7 years be removed from a credit report. This is seven years from the first delinquency date. Sometimes collectors will try to manipulate the system and re-age a debt so that it remains on your credit report for longer than it should.
If you have a collection on your credit report that is older than 7 years you can dispute the debt and have it removed from your report. Any supporting evidence of the first delinquency you may have will help you achieve these results.
You also have the option to send a special little letter called debt verification letter to the collection agency to push them to provide to you proof of the debt within 30 days of your certified request.
*DO NOT SIGN THIS DOCUMENT* then they have your signature, do not give them proof of anything let them send you the documents !
Here is a sample letter I use to handle this issue
At this time I will also inform you that if your offices have reported invalidated information to any of the 3 major Credit Bureau’s (Equifax, Experian or TransUnion) this action will constitute fraud under both Federal and State Laws. Due to this fact, if any negative mark is found on any of my credit reports by your company or the company that you represent I will not hesitate in bringing legal action against you for the following:
If your offices are able to provide the proper documentation as requested in the following Declaration, I will require at least 30 days to investigate this information and during such time all collection activity must cease.
If your offices fail to respond to this validation request within 30 days from the date of your receipt, all references to this account must be deleted and completely removed from my credit file and a copy of such deletion request shall be sent to me immediately.
It would be advisable that you assure that your records are in order before I am forced to take legal action. This is an attempt to correct your records, any information obtained shall be used for that purpose.
If you have a collection on your credit report that is older than 7 years you can dispute the debt and have it removed from your report. Any supporting evidence of the first delinquency you may have will help you achieve these results.
You also have the option to send a special little letter called debt verification letter to the collection agency to push them to provide to you proof of the debt within 30 days of your certified request.
*DO NOT SIGN THIS DOCUMENT* then they have your signature, do not give them proof of anything let them send you the documents !
Here is a sample letter I use to handle this issue
[Current Date]
[Your Name and address]
Attention:
Address of Collection Agency
Re: Acct #[123456789] Or Social # [123-45-6789]
To Whom It May Concern:
This letter is being sent to you because of a letter I received from your company concerning a debt that I owe. Be advised that this is not a refusal to pay, but a notice sent pursuant to the Fair Debt Collection Practices Act, 15 USC 1692g Sec. 809 (b) that your claim is disputed and validation is requested.
This is NOT a request for “verification” or proof of my mailing address, but a request for VALIDATION made pursuant to the above named Title and Section. I respectfully request that your offices provide me with competent evidence that I have any legal obligation to pay you.
Please provide me with the following:
- What the money you say I owe is for;
- Explain and show me how you calculated what you say I owe;
- Provide me with copies of any papers that show I agreed to pay what you say I owe including my signature for verification;
- Provide a verification or copy of any judgment if applicable;
- Identify the original creditor;
- Prove the Statute of Limitations has not expired on this account
- Show me that you are licensed to collect in my state
- Provide me with your license numbers and Registered Agent
At this time I will also inform you that if your offices have reported invalidated information to any of the 3 major Credit Bureau’s (Equifax, Experian or TransUnion) this action will constitute fraud under both Federal and State Laws. Due to this fact, if any negative mark is found on any of my credit reports by your company or the company that you represent I will not hesitate in bringing legal action against you for the following:
- Violation of the Fair Credit Reporting Act
- Violation of the Fair Debt Collection Practices Act
- Defamation of Character
If your offices are able to provide the proper documentation as requested in the following Declaration, I will require at least 30 days to investigate this information and during such time all collection activity must cease.
If your offices fail to respond to this validation request within 30 days from the date of your receipt, all references to this account must be deleted and completely removed from my credit file and a copy of such deletion request shall be sent to me immediately.
It would be advisable that you assure that your records are in order before I am forced to take legal action. This is an attempt to correct your records, any information obtained shall be used for that purpose.
Sincerely,
[Your Name]
Canceling credit cards to raise fico score
So you've been told to cancel your credit cards to increase your scores :)
Hahah wrong...
Cancelling your credit cards will reduce your fico score because your account is aged and also has a credit line which contributes to your available total credit.
Let's say you've got 5 credit cards which each has a credit line of $500 dollars, now that's a total of $2500 dollars available to your total credit if there is no balance on them. Your current fico score is 650.
When you charge on them it will take away from your available credit, so spend $100 on 2 cards.
$100 * 2 = $200 - $2500 = $2300 total available credit.
When you close 3 of your cards now what happens,
$500 * 3 = $1500 closed
$2300 - $1500 = $800 total available credit.
Now your score just dropped from a 650 to a 578 ouch.
Don't start cancelling accounts that have aged and an available credit line that will only hurt your fico score not help it.
Hahah wrong...
Cancelling your credit cards will reduce your fico score because your account is aged and also has a credit line which contributes to your available total credit.
Let's say you've got 5 credit cards which each has a credit line of $500 dollars, now that's a total of $2500 dollars available to your total credit if there is no balance on them. Your current fico score is 650.
When you charge on them it will take away from your available credit, so spend $100 on 2 cards.
$100 * 2 = $200 - $2500 = $2300 total available credit.
When you close 3 of your cards now what happens,
$500 * 3 = $1500 closed
$2300 - $1500 = $800 total available credit.
Now your score just dropped from a 650 to a 578 ouch.
Don't start cancelling accounts that have aged and an available credit line that will only hurt your fico score not help it.
Closing old accounts or credit cards
The common myth is to close your credit cards or old accounts to be able to get a good rate on a mortgage interest rate. The truth is that when you close older accounts they actually lower your scores.
Why because your account is aged and when you have an old account it counts much higher then a new account.
A percentage of your credit is based on how old your accounts are and when they fall off your account you now have lost something that contributed to your fico score.
So remember that closing old positive accounts can hurt your fico score, tell that to your mortgage agent next time he tells you to close those accounts.
Why because your account is aged and when you have an old account it counts much higher then a new account.
A percentage of your credit is based on how old your accounts are and when they fall off your account you now have lost something that contributed to your fico score.
So remember that closing old positive accounts can hurt your fico score, tell that to your mortgage agent next time he tells you to close those accounts.
Collection Agency won't respond to my Debt verification letters?
You should make sure you recorded all your efforts to the collection agency and certify everything through the post office or send via UPS or Fedex to have proper tracking.
Your next step is to send a follow up letter to the collection agency explaining that you have not heard back and put in a copy of the first letter and the certified receipt information, then wait 30 days for a response.
If still they refuse to reply you should contact the BBB and attorney general with the documents you have to file complaints.
Wait at least 30 days from the complaints filed before proceeding, then if no results go to the federal court and file the paperwork for a lawsuit against the collection agency.
Make sure you pay to have them served you can find some online services to do this if not in your state and the courts will serve them too but you want to get the paperwork to them asap in hopes of getting them to remove your negative credit tradeline they put on your report.
If you need help you should contact us at the top left of the screen and contact us.
Your next step is to send a follow up letter to the collection agency explaining that you have not heard back and put in a copy of the first letter and the certified receipt information, then wait 30 days for a response.
If still they refuse to reply you should contact the BBB and attorney general with the documents you have to file complaints.
Wait at least 30 days from the complaints filed before proceeding, then if no results go to the federal court and file the paperwork for a lawsuit against the collection agency.
Make sure you pay to have them served you can find some online services to do this if not in your state and the courts will serve them too but you want to get the paperwork to them asap in hopes of getting them to remove your negative credit tradeline they put on your report.
If you need help you should contact us at the top left of the screen and contact us.
Credit cards to get after Bankruptcy
I highly recommend Orchard Bank who are great for rebuilding your credit. Also Capital One is a good choice too for any trying to rebuild.
Orchard Bank Cards
Capital One Cards
If you can only get approved for a secured card make sure you keep your balance at 10% while your card reports each month this will keep your utilization low and will boost your scores over time.
The only thing you have is time cause that's what it will take to get your credit back in the excellent category.
If you want to speed the process up of getting a better credit limit and approval for non-secured credit card then you should contact us to repair your credit, it's on the top left of the screen.
Orchard Bank Cards
Capital One Cards
If you can only get approved for a secured card make sure you keep your balance at 10% while your card reports each month this will keep your utilization low and will boost your scores over time.
The only thing you have is time cause that's what it will take to get your credit back in the excellent category.
If you want to speed the process up of getting a better credit limit and approval for non-secured credit card then you should contact us to repair your credit, it's on the top left of the screen.
Getting Credit after bankruptcy :P
So you've made the decision to go bankrupt or you've already done the obvious either in the past or just recently.
If you've not gone through with your bankruptcy then I suggest you read this article to understand what kind of next 7-10 years your into.
The date is 2001 your sitting in the lawyer's office filling out the paperwork to prepare for bankruptcy. The lawyer is asking you a series of questions while taking notes on your debts.
As you trowl through the paperwork your debt gives you the overwhelming feeling of disappointment.
You give your deposit to your lawyer and he will finish the paperwork and meet you in court soon.
Court date arrives, your sitting there waiting for your name to be called up to the judge. You watch while each person gets called up and some have creditors there greeting them to dispute any items showing up on the court paperwork.
Finally your name is called and you sit in front of the judge and show your drivers license for proof of identity and they record your name on a tape recorder.
They ask you a series of simple questions and ask if any creditors are there for your case, hmm no one, you thought after all the items you've had listed someone should of come up.
Your lawyer guides you through the process of questions and you then have to sign some paperwork while your finishing up.
You leave the court house with a sigh of relief that your worries are over and your debt free.
A few months later you get a letter that your Chapter 7 is discharged and complete.
Step forward 2 months later and you apply for a car loan through local dealers, you get a phone call later that your denied from every bank. Gezz didn't think it was going to be this hard.
You continue your search for a bank who will give you a second chance, after a few weeks you get a 29% interest rate on a car loan with $1K down.
You get your car with $389 dollar a month payment for 5 years, ouch for a vehicle which is worth about $150 a month.
You decide to get the car since you've got little chance of getting approved elsewhere.
Step forward 8 months later you've been paying your car all along and things seem ok, you want to get your credit moving and get a credit card.
You apply for a high interest credit card and get approved @ 21% with $45 late fee's and $45 dollar over the limit fee's and a $300 dollar limit.
4 months later your credit card is maxed out at $298 dollars...
You run into some problems financially where you've got no choice but to miss either the car or the credit card payment.
You miss the car payment because the payment is much higher each month, what's one month?
Now your credit report hit's 30 days late ouch your score drops from 601 to 540 :(
Next month you cannot catch up and they report you late again although you make your payment but that one payment is still behind.
Now your credit score report hit's another 30 day late and your score drops from 540 to 480.
This continue's until finally you get yourself caught up.
You vow to not be late again this is not how things should work and for 5 years your not late anymore.
The scoring system was not easy on you after bankruptcy but now your score is really bad and you've already gone through bankruptcy.
You need a new car your loan is finished and this car has had it.
You go all over the place to get approved but no one wants to touch your credit,
excuses after excuses why you can't be approved..... "You went bankrupt and you've not been on time with your payments", "You need a few more years to get approved just keep paying on time".
Guess what you've wrecked your scores because you did the all no no, you do not want to miss any payments after bankruptcy period or your scores will take a dive.
If you've managed to not be late your scores should be pretty good but not great.
Don't think even if you've been a good boy/girl that you'll get whatever you want cause those days are over.
2 more years later, your almost close to getting the bankruptcy to fall off your report yahooo you think it's almost over.
You apply for a mortgage and get denied all day long they wouldn't touch you with that bankruptcy on your report.
What a ride this many years and you thought you've heard stories about how easy it is to get credit back after bankruptcy, I can tell you while you can get approved the interest rates are high and limits are low and forget local banks they hate your credit.
If you've got any marks on your report between when the bankruptcy and when it falls off your score will take a bigger dive because now your going to be judged against people with perfect credit.
So the goal here is to not be late and avoid bankruptcy if at all possible like a plague it'll destroy your chances for getting credit for a looonnnggg time.
I hope you understand the impacts of bankruptcy it's not a fun game to play with.
Need some help fixing that credit click the contact form on the top left.
If you've not gone through with your bankruptcy then I suggest you read this article to understand what kind of next 7-10 years your into.
The date is 2001 your sitting in the lawyer's office filling out the paperwork to prepare for bankruptcy. The lawyer is asking you a series of questions while taking notes on your debts.
As you trowl through the paperwork your debt gives you the overwhelming feeling of disappointment.
You give your deposit to your lawyer and he will finish the paperwork and meet you in court soon.
Court date arrives, your sitting there waiting for your name to be called up to the judge. You watch while each person gets called up and some have creditors there greeting them to dispute any items showing up on the court paperwork.
Finally your name is called and you sit in front of the judge and show your drivers license for proof of identity and they record your name on a tape recorder.
They ask you a series of simple questions and ask if any creditors are there for your case, hmm no one, you thought after all the items you've had listed someone should of come up.
Your lawyer guides you through the process of questions and you then have to sign some paperwork while your finishing up.
You leave the court house with a sigh of relief that your worries are over and your debt free.
A few months later you get a letter that your Chapter 7 is discharged and complete.
Step forward 2 months later and you apply for a car loan through local dealers, you get a phone call later that your denied from every bank. Gezz didn't think it was going to be this hard.
You continue your search for a bank who will give you a second chance, after a few weeks you get a 29% interest rate on a car loan with $1K down.
You get your car with $389 dollar a month payment for 5 years, ouch for a vehicle which is worth about $150 a month.
You decide to get the car since you've got little chance of getting approved elsewhere.
Step forward 8 months later you've been paying your car all along and things seem ok, you want to get your credit moving and get a credit card.
You apply for a high interest credit card and get approved @ 21% with $45 late fee's and $45 dollar over the limit fee's and a $300 dollar limit.
4 months later your credit card is maxed out at $298 dollars...
You run into some problems financially where you've got no choice but to miss either the car or the credit card payment.
You miss the car payment because the payment is much higher each month, what's one month?
Now your credit report hit's 30 days late ouch your score drops from 601 to 540 :(
Next month you cannot catch up and they report you late again although you make your payment but that one payment is still behind.
Now your credit score report hit's another 30 day late and your score drops from 540 to 480.
This continue's until finally you get yourself caught up.
You vow to not be late again this is not how things should work and for 5 years your not late anymore.
The scoring system was not easy on you after bankruptcy but now your score is really bad and you've already gone through bankruptcy.
You need a new car your loan is finished and this car has had it.
You go all over the place to get approved but no one wants to touch your credit,
excuses after excuses why you can't be approved..... "You went bankrupt and you've not been on time with your payments", "You need a few more years to get approved just keep paying on time".
Guess what you've wrecked your scores because you did the all no no, you do not want to miss any payments after bankruptcy period or your scores will take a dive.
If you've managed to not be late your scores should be pretty good but not great.
Don't think even if you've been a good boy/girl that you'll get whatever you want cause those days are over.
2 more years later, your almost close to getting the bankruptcy to fall off your report yahooo you think it's almost over.
You apply for a mortgage and get denied all day long they wouldn't touch you with that bankruptcy on your report.
What a ride this many years and you thought you've heard stories about how easy it is to get credit back after bankruptcy, I can tell you while you can get approved the interest rates are high and limits are low and forget local banks they hate your credit.
If you've got any marks on your report between when the bankruptcy and when it falls off your score will take a bigger dive because now your going to be judged against people with perfect credit.
So the goal here is to not be late and avoid bankruptcy if at all possible like a plague it'll destroy your chances for getting credit for a looonnnggg time.
I hope you understand the impacts of bankruptcy it's not a fun game to play with.
Need some help fixing that credit click the contact form on the top left.
How long before a bankruptcy is discharged?
The answer depends on what chapter you are filing and the circumstances of your case. Typically a Chapter 7 filing will be discharged in 4-6 months.
A Chapter 13 filing will be discharged in 3-5 years, depending on your income level. There are circumstances, however, that can severely delay discharge and I have seen Chapter 7 cases still not discharged after 6 years because of the actions of the debtor.
Sample Dispute letter 1 incorrect current balance
Okay so you want to dispute a balance that you have on an account for your credit report. Here's what you do. First answer the following questions so you have a clear understanding of how this works.
Is the account older then 7 years?
Is the account near 7 years old?
Is the account coming from a collection agency who are asking you for money when you haven't heard from Jack **** in years?
If you answer yes then you might want to re-think what your doing otherwise scroll down to the sample dispute letter below.
Okay so if the account is older then 7 years then you can just write the CRA's explaining that and it will get removed pretty easily in 30 days. Send the letter via USPS and use a return receipt this will show them you mean business. It's not required but you can sue them later if they do not comply.
The 7 year date goes based on the date the account was first delinquent and no other payments caught you up. Sometimes you might think it's older then 7 years and it's not be sure that it is.
If a collection agency is crabbing up your butt then you need to evaluate whether you want to send anything to the CRA's, you really need to send a dispute to the collection agency first that will hold them off.
You also have an option to call the credit bureau's too look here for those details.
Is the account older then 7 years?
Is the account near 7 years old?
Is the account coming from a collection agency who are asking you for money when you haven't heard from Jack **** in years?
If you answer yes then you might want to re-think what your doing otherwise scroll down to the sample dispute letter below.
Okay so if the account is older then 7 years then you can just write the CRA's explaining that and it will get removed pretty easily in 30 days. Send the letter via USPS and use a return receipt this will show them you mean business. It's not required but you can sue them later if they do not comply.
The 7 year date goes based on the date the account was first delinquent and no other payments caught you up. Sometimes you might think it's older then 7 years and it's not be sure that it is.
If a collection agency is crabbing up your butt then you need to evaluate whether you want to send anything to the CRA's, you really need to send a dispute to the collection agency first that will hold them off.
You also have an option to call the credit bureau's too look here for those details.
Always when sending disputes include a copy of your drivers license and utility bill for proof of residence. Send the letters certified mailing by usps to force the 30 day reply from the CRA's.
Don't forget to include your middle name too !
[Date]
[Full Name]
[Your Address]
[City, State and Zip Code]
[Your Address]
[City, State and Zip Code]
[Social Security Number]
Equifax
P.O. Box 740241
Atlanta, GA 30374
P.O. Box 740241
Atlanta, GA 30374
TransUnion
P.O. Box 1000
Chester, PA 19022
P.O. Box 1000
Chester, PA 19022
Experian
P.O. Box 2002
Allen, TX 75013
P.O. Box 2002
Allen, TX 75013
Re: Credit report error
Dear Sir or Madam:
I have discovered inaccurate information on my credit report maintained by [credit agency name]. The report is in my name [enter your full name here] and my Social Security number is [enter your Social Security number here].
Enclosed, please find a copy of my credit report containing the incorrect data. I highlighted the errors. Specifically, the following information is in wrong:
[Jenny Fisher Account XXXX3455 ] is showing the incorrect current balance. Please remove this account asap from my credit report.
If you have any questions about my request or the credit information in question, please do not hesitate to call me [at work or home phone number, depending upon when you would prefer to discuss the matter].
Thank you for your prompt attention to my request.
[Full Name]
[Your Signature]
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You can also see a dispute sample from myfico.com
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You can also see a dispute sample from myfico.com
How to send Credit Report Dispute Letters
When you send a dispute letter to the credit bureau's you'll want to make sure you include your signature, a copy of a utility bill, copy of your drivers license.
You want to make sure you put the date on the top of the letter when describing the dispute issue.
The credit bureau's have 30 days plus 5 days for mailing to get a response to you, if you send out your dispute by regular mail you will not have any proof of the dispute sent.
I suggest you send your dispute by certified mailing which does cost more but it's your only method to prove that the letter got to the destination at XYZ date.
Having the certified mailing doesn't mean you need to spend extra on the signature unless you want to but it's not required to have return receipt.
Make sure you mark down the date you send the letter in your calendar so your prepared to handle a follow up letter dispute if they take longer then the 30 day period.
You also can go above and beyond by getting your letters stamped by a Notoriety from your bank, that just proves you wrote the letters.
Here is a sample layout for a dispute letter:
You want to make sure you put the date on the top of the letter when describing the dispute issue.
The credit bureau's have 30 days plus 5 days for mailing to get a response to you, if you send out your dispute by regular mail you will not have any proof of the dispute sent.
I suggest you send your dispute by certified mailing which does cost more but it's your only method to prove that the letter got to the destination at XYZ date.
Having the certified mailing doesn't mean you need to spend extra on the signature unless you want to but it's not required to have return receipt.
Make sure you mark down the date you send the letter in your calendar so your prepared to handle a follow up letter dispute if they take longer then the 30 day period.
You also can go above and beyond by getting your letters stamped by a Notoriety from your bank, that just proves you wrote the letters.
Here is a sample layout for a dispute letter:
[Name]
[Address]
[City,St ZIP]
[Address]
[City,St ZIP]
Social Security number: [XXX-XX-XXXX]
Date of birth: [XX/XX/19XX]
Date of birth: [XX/XX/19XX]
Equifax
P. O. Box 740241
Atlanta, GA 30374-0241
P. O. Box 740241
Atlanta, GA 30374-0241
01/01/2007
Dear Credit Bureau,
.....[Disputed information goes here]
I've sent this letter by certified mail and you've got 30 days to reply.
Sincerely,
[Name]
[Signature]
Credit Karma
Credit Karma is a cool site which I use to pull free scores from a user for transunion and it won't affect you or hurt your report as a inquiry.
The score is a fako so don't go to crazy on what it says, fako? it's not your real score is what I mean.
It will track your progress though if you pull your score every 15 days or so and it will show you how your score is affected from changes in your credit report.
It's free and fun enjoy it.
Sign up and check out your scores. www.creditkarma.com
The score is a fako so don't go to crazy on what it says, fako? it's not your real score is what I mean.
It will track your progress though if you pull your score every 15 days or so and it will show you how your score is affected from changes in your credit report.
It's free and fun enjoy it.
Sign up and check out your scores. www.creditkarma.com
Credit Card Utilization Technique
One of my favorite sites talks about how to handle credit card utilization Credit Karma
What is credit card utilization?
It's the amount you've used on your credit card and is calculated based on your total available credit. Example let's say you've got a $1000 dollar limit and your balance is $500 dollars your utilized percent would be 50%.
Formula (card balance amount/ Total available credit) x100
example $500 / $1000 * 100 = 50%
Source: Credit Karma
Every credit score improvement article suggests that consumers should not have a high credit card utilization rate. (Defined as: total credit card balances / total credit card limits). Often the recommendation is the lower the credit card utilization rate, the better the credit score. Experts also suggest that the credit card utilization rate should never exceed 35%.
I actually try to keep the credit card utilization down lower like around 10-17%, my experience has shown my scores to be better when you do this. I've also seen lower scores because your balance is $0.00 and you don't utilize your card at all.
FINDINGS
The data and chart do suggest there is strong correlation between a consumer’s credit card utilization rate and their credit score. The lower the credit card utilization, the better the credit score generally speaking.
There is one exception in this recommendation. At credit card utilization rate of 0%, the average credit score for this group is actually much lower than at the 1-10% (742 vs. 667). People with 0% credit card utilization could fall into 2 categories.
- 1) They don’t have a credit card because they have poor credit. Having a credit card and different types of credit help demonstrate credit worthiness in the eyes of lenders and credit scoring algorithms.
- 2) They don’t use their credit cards at all. This is the reason why credit score tips usually suggest you use your credit card every couple months if only on small purchase to show an active credit profile with positive payment history.
With the results in mind, it would be unproductive to suggest not carrying a balance at all since this is a primary benefit of credit cards. The reality is that many consumers need the convenience of revolving debt from credit cards. Keeping this mind, we suggest keeping your balance lower than 35% on all your credit cards and making sure you pay on time and the debt is something you can manage.
It is important to understand that card utilization is not the only thing that determines your score it's just all part of the process of scoring your credit worthiness.
But if you already have good scores and you want to make them better then you should spend on your cards even if it's a few dollars every month and pay when your bill comes in. Don't over due it but just keeping it between 5% - 17% is what will build your credit because your showing that you can handle your credit cards.
All images are copyright to creditkarma.com and respectable third parties.
DOLA, DOFD, SOL Explanation
SOL: statues of limitations
It's basically how long before your debt can be forced in the court system, does not apply to all debts. Also if you get papers for being sued and you don't reply or go to court SOL means nothing they win by default.
DOFD: Date of First Delinquency
This is the date of when you became delinquent but didn't catch up with your debt. The date of first delinquency is abused sometimes by lenders because they lie about the DOFD so that your bad credit stays on your report for a longer period. Also I've had lenders attempt to say you got caught up and then re-report the DOFD date on a credit report. It's important to keep any and all documents because you can fight the DOFD with the lender or credit bureau's.
DOLA: Date of last activity
This is the date when your tradeline was last updated with some activity.
Your debt will fall off your report 7 years from DOFD on your report (not all debt applies).
If your debt was charged off and you make any payments it should not change the DOFD which means your bad trade line should fall off at the same time whether you pay it off or not.
If you pay and get caught up on your account then you'll have a derogatory mark for 7 years from the time you were late.
The debt was charged off in 2001 but the collection agency shows it opened on 2004 how can this be?
Yes either way you need to realize that the date opened is not the DOFD which is set by the original creditor.
Also if you need to check your credit report you can do this for free at annual credit report, this site was designed because the government passed a law to make all the credit bureau's comply to giving you 1 free credit report a year. But here's the catch if you want to save money it will hurt you because they also said if you use the free option you now have to wait 45 days instead of 30 days for credit disputing so if your in a hurry just pay for a credit report. I recommend something which allows you to see all three credit reports a tri-merge report.
More information is at Fico Forums
It's basically how long before your debt can be forced in the court system, does not apply to all debts. Also if you get papers for being sued and you don't reply or go to court SOL means nothing they win by default.
DOFD: Date of First Delinquency
This is the date of when you became delinquent but didn't catch up with your debt. The date of first delinquency is abused sometimes by lenders because they lie about the DOFD so that your bad credit stays on your report for a longer period. Also I've had lenders attempt to say you got caught up and then re-report the DOFD date on a credit report. It's important to keep any and all documents because you can fight the DOFD with the lender or credit bureau's.
DOLA: Date of last activity
This is the date when your tradeline was last updated with some activity.
Your debt will fall off your report 7 years from DOFD on your report (not all debt applies).
If your debt was charged off and you make any payments it should not change the DOFD which means your bad trade line should fall off at the same time whether you pay it off or not.
If you pay and get caught up on your account then you'll have a derogatory mark for 7 years from the time you were late.
The debt was charged off in 2001 but the collection agency shows it opened on 2004 how can this be?
Yes either way you need to realize that the date opened is not the DOFD which is set by the original creditor.
Also if you need to check your credit report you can do this for free at annual credit report, this site was designed because the government passed a law to make all the credit bureau's comply to giving you 1 free credit report a year. But here's the catch if you want to save money it will hurt you because they also said if you use the free option you now have to wait 45 days instead of 30 days for credit disputing so if your in a hurry just pay for a credit report. I recommend something which allows you to see all three credit reports a tri-merge report.
More information is at Fico Forums
Credit Dispute letter bankruptcy
When disputing any accounts you do not want to do too many disputes at once or while your in a dispute with a tradeline, I've gotten better results then credit repair professionals by being careful how I dispute my items and what I dispute.
Realize that disputing your bankruptcy first is a bad idea, even if you had success on your first attempt you will destroy your credit scores with other negative items present.
Why is that, I thought you said Bankruptcy is bad?
Well it is bad but you need to understand that when a bankruptcy is removed it also means your fico scoring is going to put you in a new credit scoring bucket.
What is this bucket you speak of?
Think of it like this, you are being judged by your credit with other people who have bankruptcy and negative items, if you remove your bankruptcy they put you in to be judged by people who have no bankruptcy or no negative items at all. How well do you think you would look against people with perfect credit? Guess what you'd probably be a 450 fico score at the most...
Keeping your bankruptcy on your report until you get all your negative items off it will be the best thing you can do.
Also realize that you have to build up your credit before that bankruptcy is removed otherwise you cannot expect too much of a score increase and most likely a decrease. Knowing the right mix of getting those items on your credit is a challenge but reading my blogs will help you.
So how long do Bankruptcy Chapter 13 and 7 stay on my report?
A Chapter 7 stays on your credit report for 10 years from the date you FILED. Yes the date it was FILED.
A Chapter 13 stays on your credit report for 7 years, but if your chapter 13 was dismissed guess what Equifax will keep it on your report for 10 years from the date FILED.
Now getting to the issue at hand, how can I remove this sucker?
Bankruptcy will be rejected if your report has any accounts which state "Included in Bankruptcy"...
How would the credit bureaus remove them if your accounts are setup as included and you expect them to remove i t bahahahah yeah right.
Make sure before you go disputing this that you've got no accounts included in bankruptcy otherwise your wasting your time and just going to be marked as a fraud dispute.
Review the details of your bankruptcy filing date, docket #, place you filed bankruptcy etc... If any of those items are wrong you can dispute and get the entire thing removed.
When disputing you want to emphasize the facts and let them correct it by doing a delete. Don't give them documentation otherwise they will just update the details. The goal here is to get the items removed not updated.
There is a another method to getting it removed which I cannot state here for liability reasons etc... I'd be willing to help you if your interested though just contact me by going to my website on the left side of the screen.
Remember that there is an order to dispute it, you wouldn't want to first dispute by docket # but that the bankruptcy is not yours to begin with, only of course if it really doesn't belong to you.
The order should be Not Mine, Wrong Filing Date, Wrong Docket #, Wrong Bankruptcy Location Filed, Wrong Bankruptcy type etc...
Sample Dispute Letter for Bankruptcy
Realize that disputing your bankruptcy first is a bad idea, even if you had success on your first attempt you will destroy your credit scores with other negative items present.
Why is that, I thought you said Bankruptcy is bad?
Well it is bad but you need to understand that when a bankruptcy is removed it also means your fico scoring is going to put you in a new credit scoring bucket.
What is this bucket you speak of?
Think of it like this, you are being judged by your credit with other people who have bankruptcy and negative items, if you remove your bankruptcy they put you in to be judged by people who have no bankruptcy or no negative items at all. How well do you think you would look against people with perfect credit? Guess what you'd probably be a 450 fico score at the most...
Keeping your bankruptcy on your report until you get all your negative items off it will be the best thing you can do.
Also realize that you have to build up your credit before that bankruptcy is removed otherwise you cannot expect too much of a score increase and most likely a decrease. Knowing the right mix of getting those items on your credit is a challenge but reading my blogs will help you.
So how long do Bankruptcy Chapter 13 and 7 stay on my report?
A Chapter 7 stays on your credit report for 10 years from the date you FILED. Yes the date it was FILED.
A Chapter 13 stays on your credit report for 7 years, but if your chapter 13 was dismissed guess what Equifax will keep it on your report for 10 years from the date FILED.
Now getting to the issue at hand, how can I remove this sucker?
Bankruptcy will be rejected if your report has any accounts which state "Included in Bankruptcy"...
How would the credit bureaus remove them if your accounts are setup as included and you expect them to remove i t bahahahah yeah right.
Make sure before you go disputing this that you've got no accounts included in bankruptcy otherwise your wasting your time and just going to be marked as a fraud dispute.
Review the details of your bankruptcy filing date, docket #, place you filed bankruptcy etc... If any of those items are wrong you can dispute and get the entire thing removed.
When disputing you want to emphasize the facts and let them correct it by doing a delete. Don't give them documentation otherwise they will just update the details. The goal here is to get the items removed not updated.
There is a another method to getting it removed which I cannot state here for liability reasons etc... I'd be willing to help you if your interested though just contact me by going to my website on the left side of the screen.
Remember that there is an order to dispute it, you wouldn't want to first dispute by docket # but that the bankruptcy is not yours to begin with, only of course if it really doesn't belong to you.
The order should be Not Mine, Wrong Filing Date, Wrong Docket #, Wrong Bankruptcy Location Filed, Wrong Bankruptcy type etc...
Sample Dispute Letter for Bankruptcy
[Name]
[Address]
[City,St ZIP]
[Address]
[City,St ZIP]
Social Security number: [XXX-XX-XXXX]
Date of birth: [XX/XX/19XX]
Date of birth: [XX/XX/19XX]
Equifax
P. O. Box 740241
Atlanta, GA 30374-0241
P. O. Box 740241
Atlanta, GA 30374-0241
01/01/2007
Dear Credit Bureau,
I noticed that the Bankruptcy Docket #12345 is incorrect on my credit report and I demand that you remove this public record off of my report now. This is the second letter I've written to you about this issue and you have not resolved this matter. Your destroying my credit and score because of this error, please remove this record asap it's not correct.
I've consulted with my lawyer and will sue you if you do not comply. [Insert all FTC Law sections depends on what your disputing]
I've sent this letter by certified mail and you've got 30 days to reply.
Sincerely,
[Name]
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Send the letter by certified mail, you won't need the return signature it's a waste of money.
Make sure you keep copies of what you send and when you sent them and store the documents in something like google docs or in your file cabinet.
Good luck and remember I'm here for your help if you need me.
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