Debt Consolidation
I've included this section after I found out a lot of people look for
making money online as a result of having debts and bad credit...
So, lets call this section "make / save money online".
If you're having debt problems and looking for debt consolidation
or solution, please take the time to choose a plan that is right for
you.
There are 3 things you must be doing right away:
1. Raise your income - to minimize your debt in the short term.
2. Save money - to prevent your debt from growing in the long
term.
3. Get yourself a well targeted plan. That could be: How do I
become debt free within 2 years?
How can I pay my mortgage? Or a plan to prevent you from filing
bankruptcy, or whatever.
The most important thing is that you stick to your plan, and drop off
your plans or habits that got you into debt to begin with.
Not all debt is equal. And not all of it is bad. Some debts are an
inescapable part of life.
Be especially wary of double-digit debt - credit cards and loans
that charge 10% or more in annual interest. At this level, balances
snowball quickly, and it's tough to get a return on the borrowed
money that beats this cost.
Good debts, like some mortgages and student loans, combine two
things: a relatively low, tax-adjusted interest rate; and the
potential to invest in something that, over the long run, will grow in
value.
Time to plan your attack.
First, break the habit of only paying the minimum required each
month. Paying the minimum - usually 2% to 3% of the outstanding
balance - is precisely what the banks want you to do. The longer
you take to repay the charges, the more interest they make, and
the less cash you have in your pocket. Don't play their selfish game.
Instead, pay as much as you can each month. Try doubling your
monthly payment.
Make a few sacrifices, and you will find the extra dollars needed to
increase your debt repayments dramatically. Those increased
payments will save you hundreds, if not thousands, in interest
payments. Plus, you will get out of the hole you've dug for yourself
much more quickly. Is it fun? No. But it sure beats fearing bills each
month.
Take a long, hard look at all your credit cards. Pay particular
attention to the one with the lowest interest rate. Have you
reached the maximum limit on that card? If not, consider
transferring a higher interest bill to that one. Many credit cards
permit this, and it's positively Foolish to trade an 18% debt for one
at 12% at any time.
If your entire balance is too large to fit on one low-interest rate
card, pay at least the minimum amounts due on all of your cards
except one. Funnel the majority of your debt repayments into that
one credit card, and pay it off as quickly as possible. When the
balance on that card reaches zero, move on to the next with the
same aggressive repayment plan.
You could cash out your savings and investments and use the
proceeds toward debt repayment. No one wants to do that. The
dollars in your savings account are not earning anywhere near the
rate of interest on your debt.
Dozens of plans were reviewed for this section, we listed only the
ones that we believed had something NEW to offer, to make sure
the information you pay for is valuable.
As always, To your success
making money online as a result of having debts and bad credit...
So, lets call this section "make / save money online".
If you're having debt problems and looking for debt consolidation
or solution, please take the time to choose a plan that is right for
you.
There are 3 things you must be doing right away:
1. Raise your income - to minimize your debt in the short term.
2. Save money - to prevent your debt from growing in the long
term.
3. Get yourself a well targeted plan. That could be: How do I
become debt free within 2 years?
How can I pay my mortgage? Or a plan to prevent you from filing
bankruptcy, or whatever.
The most important thing is that you stick to your plan, and drop off
your plans or habits that got you into debt to begin with.
Not all debt is equal. And not all of it is bad. Some debts are an
inescapable part of life.
Be especially wary of double-digit debt - credit cards and loans
that charge 10% or more in annual interest. At this level, balances
snowball quickly, and it's tough to get a return on the borrowed
money that beats this cost.
Good debts, like some mortgages and student loans, combine two
things: a relatively low, tax-adjusted interest rate; and the
potential to invest in something that, over the long run, will grow in
value.
Time to plan your attack.
First, break the habit of only paying the minimum required each
month. Paying the minimum - usually 2% to 3% of the outstanding
balance - is precisely what the banks want you to do. The longer
you take to repay the charges, the more interest they make, and
the less cash you have in your pocket. Don't play their selfish game.
Instead, pay as much as you can each month. Try doubling your
monthly payment.
Make a few sacrifices, and you will find the extra dollars needed to
increase your debt repayments dramatically. Those increased
payments will save you hundreds, if not thousands, in interest
payments. Plus, you will get out of the hole you've dug for yourself
much more quickly. Is it fun? No. But it sure beats fearing bills each
month.
Take a long, hard look at all your credit cards. Pay particular
attention to the one with the lowest interest rate. Have you
reached the maximum limit on that card? If not, consider
transferring a higher interest bill to that one. Many credit cards
permit this, and it's positively Foolish to trade an 18% debt for one
at 12% at any time.
If your entire balance is too large to fit on one low-interest rate
card, pay at least the minimum amounts due on all of your cards
except one. Funnel the majority of your debt repayments into that
one credit card, and pay it off as quickly as possible. When the
balance on that card reaches zero, move on to the next with the
same aggressive repayment plan.
You could cash out your savings and investments and use the
proceeds toward debt repayment. No one wants to do that. The
dollars in your savings account are not earning anywhere near the
rate of interest on your debt.
Dozens of plans were reviewed for this section, we listed only the
ones that we believed had something NEW to offer, to make sure
the information you pay for is valuable.
As always, To your success
The TRUTH About Credit Repair...
-by Terry Price
(C) Copyright Terry Price
All Rights Reserved
Have you ever wondered what companies send you when they claim you can erase bad credit overnight? How about those ads that say
you can get any major credit card without a deposit or a credit check? Ads abound almost everywhere these days (online and off) selling
books, systems and secrets to help you fix your credit. Many of these programs have claims which read like the covers of supermarket
tabloids: "In 3hrs my credit score jumped from 580 to 676!"... "Erase bad credit and smash your debts with just 2 Magic Letters!"
Are these types of claims ALWAYS too good to be true? The answer is "Yes and... no".
While many people would love for you to believe the only thing that
can fix bad credit is time; in reality... nothing could be further from the truth. The fact is, time is only one factor which can fix a credit report,
but it's a far cry
from being the only factor. How can I back this up? Easy.
Under a consumer protection law known as the Fair Credit Reporting
Act (a.k.a. the FCRA) the only negative information which can
remain on your credit report is not what is accurate... but what
can be proved as accurate under the FCRA. What's this mean to you?
It means any negative item on your credit report can only remain there if it is accurate and CAN BE PROVED AS SUCH under the
guidelines of the FCRA. This
undisputable fact presents consumers with both good news and bad news.
The good news is that through the FCRA your credit score can most likely be improved dramatically in a very short period of time with only
a modest amount of effort on your part.
The bad news is that while the actual "work" will take very little of your time, it is vital that you have good information on "how" to go about
it. This is the bad
news; 9 out of 10 courses on restoring your credit will do nothing more than lead you into snake pits because they will provide you with
what the industry refers
to as "Boiler Plate" dispute letters. These are nothing more than form
letters and... quite frankly (more bad news) the Credit Bureaus and
Creditors will laugh at you if you try to use them.
While I agree with the Federal Trade Commission (FTC) that "Anything a
Credit Repair Clinic can do for you legally, you can do for yourself at little or not cost"... the key element you need for success is the latest
inside techniques and procedures to get the results you want. This involves strategies such as "Proof
of Contract", "Constructive Notice", "Challenge of Procedure" or "Restrictive Endorsement" and many others.
All these terms may "sound" impressive but they are really quite simple. In the
end, it is nothing more than a method of communication which exercises your
consumer protection rights, gets the results you want and raises your credit
score. Even more impressive, once you learn how simple it can be by doing it
for yourself, you will find there is a fortune to be made doing it for others!
In the next segment we'll talk about:
"Is Your Credit Score Costing You A Fortune?"
=======================================
Terry Price is the founder of Consumer
Education Group which publishes the
Credit Secrets Bible (in print since
1994).
For more information on the CREDIT SECRETS BIBLE Click Here
-by Terry Price
(C) Copyright Terry Price
All Rights Reserved
Have you ever wondered what companies send you when they claim you can erase bad credit overnight? How about those ads that say
you can get any major credit card without a deposit or a credit check? Ads abound almost everywhere these days (online and off) selling
books, systems and secrets to help you fix your credit. Many of these programs have claims which read like the covers of supermarket
tabloids: "In 3hrs my credit score jumped from 580 to 676!"... "Erase bad credit and smash your debts with just 2 Magic Letters!"
Are these types of claims ALWAYS too good to be true? The answer is "Yes and... no".
While many people would love for you to believe the only thing that
can fix bad credit is time; in reality... nothing could be further from the truth. The fact is, time is only one factor which can fix a credit report,
but it's a far cry
from being the only factor. How can I back this up? Easy.
Under a consumer protection law known as the Fair Credit Reporting
Act (a.k.a. the FCRA) the only negative information which can
remain on your credit report is not what is accurate... but what
can be proved as accurate under the FCRA. What's this mean to you?
It means any negative item on your credit report can only remain there if it is accurate and CAN BE PROVED AS SUCH under the
guidelines of the FCRA. This
undisputable fact presents consumers with both good news and bad news.
The good news is that through the FCRA your credit score can most likely be improved dramatically in a very short period of time with only
a modest amount of effort on your part.
The bad news is that while the actual "work" will take very little of your time, it is vital that you have good information on "how" to go about
it. This is the bad
news; 9 out of 10 courses on restoring your credit will do nothing more than lead you into snake pits because they will provide you with
what the industry refers
to as "Boiler Plate" dispute letters. These are nothing more than form
letters and... quite frankly (more bad news) the Credit Bureaus and
Creditors will laugh at you if you try to use them.
While I agree with the Federal Trade Commission (FTC) that "Anything a
Credit Repair Clinic can do for you legally, you can do for yourself at little or not cost"... the key element you need for success is the latest
inside techniques and procedures to get the results you want. This involves strategies such as "Proof
of Contract", "Constructive Notice", "Challenge of Procedure" or "Restrictive Endorsement" and many others.
All these terms may "sound" impressive but they are really quite simple. In the
end, it is nothing more than a method of communication which exercises your
consumer protection rights, gets the results you want and raises your credit
score. Even more impressive, once you learn how simple it can be by doing it
for yourself, you will find there is a fortune to be made doing it for others!
In the next segment we'll talk about:
"Is Your Credit Score Costing You A Fortune?"
=======================================
Terry Price is the founder of Consumer
Education Group which publishes the
Credit Secrets Bible (in print since
1994).
For more information on the CREDIT SECRETS BIBLE Click Here
Is Your Credit Score Costing You A Fortune?
-by Terry Price
(C) Copyright Terry Price
All Rights Reserved
While some surveys show that 9 out of 10 consumers are
unaware what their credit score is, I'd like to quickly share with you how your credit score could be costing you a fortune (in more ways
than you can imagine).
We all know a low credit score will make everything in the
world of finance more expensive because of higher interests rates from lenders due to being considered a greater credit
risk (i.e. higher interest rates on cars, homes and credit cards).
While this may be considered common knowledge by some, it's truly devastating effects are understood by few.
For example. If you purchase a $200,000 home on a 30 year fixed mortgage at 8% interest instead of 6% (because of your credit score);
that 2% is going to end up costing you a total of $96,934.11 over the term of the loan. Now, think about how many extra years you'll have
to work to pay off $96,934.11
because of an extra 2% in interest?
The part few people talk about is all the other areas in life where a low score will increase your cost of living on an annual basis. For
example. In addition to paying more for a car, home and credit cards, a low credit score will most likely have you paying more for the
following as well:
1.) AUTO INSURANCE. As many as 92% of the 100 largest personal automobile insurers use credit information to underwrite new
business, according to a 2001 study by Conning & Co., an insurance-research and asset-management firm.
2.) HOMEOWNERS INSURANCE. It's thought many insurance companies see a correlation between low credit scores and increased
property insurance claims. Therefore, a low score will result in a higher rates.
3.) LIFE and HEALTH INSURANCE. Customers who are unable to pay their monthly insurance premium thereby
pass along that increased cost to the insurance company whose stuck with the bill (resulting in a loss for the company). Since
customers who pay without lapse are more profitable it
is felt by many that a low credit score now even affects a monthly life and/or health insurance premium negatively.
One of the more shocking areas where a low credit score will you cost you is in the area of employment. It's estimated
as many as 42% of employers now do credit checks on applicants before hiring them (according to a 1998 survey by
the Society for Human Resource Management).
While many employers claim they only do it to verify information on your application (such as where you live and where you have worked
etc.) we can both assume they are taking the liberty to have a peek at how you handle your financial affairs as well. According to the
Public Research Interest Group (PIRG) as many as 79% all credit reports contain errors, 25% of which are serious enough to cause the
denial of credit (according to a 2004 report).
And that's all the more troubling in light of the increasing impact a bad credit report can have, says Ed Mierzwinski, director of PIRG's
consumer program. "It's outrageous
that the credit bureaus are claiming their scores are accurate enough to take people's lives and screw with them like this".
In the next segment we'll be talking about something very, very exciting.It's called...
"Insider Techniques to Raise
Your Credit Score... FAST!"
For more information on the CREDIT SECRETS BIBLE
Click Here
-by Terry Price
(C) Copyright Terry Price
All Rights Reserved
While some surveys show that 9 out of 10 consumers are
unaware what their credit score is, I'd like to quickly share with you how your credit score could be costing you a fortune (in more ways
than you can imagine).
We all know a low credit score will make everything in the
world of finance more expensive because of higher interests rates from lenders due to being considered a greater credit
risk (i.e. higher interest rates on cars, homes and credit cards).
While this may be considered common knowledge by some, it's truly devastating effects are understood by few.
For example. If you purchase a $200,000 home on a 30 year fixed mortgage at 8% interest instead of 6% (because of your credit score);
that 2% is going to end up costing you a total of $96,934.11 over the term of the loan. Now, think about how many extra years you'll have
to work to pay off $96,934.11
because of an extra 2% in interest?
The part few people talk about is all the other areas in life where a low score will increase your cost of living on an annual basis. For
example. In addition to paying more for a car, home and credit cards, a low credit score will most likely have you paying more for the
following as well:
1.) AUTO INSURANCE. As many as 92% of the 100 largest personal automobile insurers use credit information to underwrite new
business, according to a 2001 study by Conning & Co., an insurance-research and asset-management firm.
2.) HOMEOWNERS INSURANCE. It's thought many insurance companies see a correlation between low credit scores and increased
property insurance claims. Therefore, a low score will result in a higher rates.
3.) LIFE and HEALTH INSURANCE. Customers who are unable to pay their monthly insurance premium thereby
pass along that increased cost to the insurance company whose stuck with the bill (resulting in a loss for the company). Since
customers who pay without lapse are more profitable it
is felt by many that a low credit score now even affects a monthly life and/or health insurance premium negatively.
One of the more shocking areas where a low credit score will you cost you is in the area of employment. It's estimated
as many as 42% of employers now do credit checks on applicants before hiring them (according to a 1998 survey by
the Society for Human Resource Management).
While many employers claim they only do it to verify information on your application (such as where you live and where you have worked
etc.) we can both assume they are taking the liberty to have a peek at how you handle your financial affairs as well. According to the
Public Research Interest Group (PIRG) as many as 79% all credit reports contain errors, 25% of which are serious enough to cause the
denial of credit (according to a 2004 report).
And that's all the more troubling in light of the increasing impact a bad credit report can have, says Ed Mierzwinski, director of PIRG's
consumer program. "It's outrageous
that the credit bureaus are claiming their scores are accurate enough to take people's lives and screw with them like this".
In the next segment we'll be talking about something very, very exciting.It's called...
"Insider Techniques to Raise
Your Credit Score... FAST!"
For more information on the CREDIT SECRETS BIBLE
Click Here
Insider Techniques To Raise Your Credit Score... FAST!
-by Terry Price
(C) Copyright Terry Price
All Rights Reserved
If there is one question I'm asked by consumers more than any other about credit, it's this "What's the fastest way to raise my credit
score?". My response is always the same "How much do you want to raise it?"
If you wish to increase your score from 580 to 650 then your strategy will be very different from someone wanting to go from 670 to 725.
Why? Because you starting point is different which requires a different approach. Also, while the removal of negative items
from a report will almost always lead to an increase in score, it's a basic concept at best. Therefore, within this article, we'll discuss
somewhat inside techniques known by very few (since this is what our company specializes in publishing).
In relation to just removing negative items, these are techniques which you can use even if you have NO derogatory information on your
credit report. We'll start with the most overlooked strategy first and that's your...
DEBT to CREDIT RATIO: The most fraudulent belief I've been hearing for over 15 years is "I have excellent credit, I pay all my bills off in full
every month!" This is a false belief for one to buy into and understanding your debt to credit ratio holds the key to getting your "credit
mindset" right.
Your debt to credit ratio is your ratio of debt to total available credit
you have been extended (revolving accounts only). For example. If you have $10,000 in total unsecured revolving credit accounts and
you're currently in debt $2500, then your debt to credit ratio is 25%. Since the main way lenders make money is by charging interest, one
of the elements of the credit scoring model is driven by your
ability to maintain balances and pay over time. This shows your true (long term) credit worthiness which is most profitable to lenders
since they make money primarily via interest and not annual fees.
Over the years we've discovered without question that carrying the
proper debt to credit ratio will boost your score faster than paying off your bills in full each month. I have argued with the Better Business
Bureau on this topic for and they still disagree (despite my sending them proof from Fair Isaacs own website www.MyFico.com the
organization which invented the credit scoring software used by credit bureaus).
Of course, what do you do if you're like most Americans and your debt to credit ratio is too high? For example. You have $10,000 in
unsecured revolving accounts but you owe $8500, thereby giving you an 85% debt to credit ratio. How can you bring it down without
selling everything you own? The answer is simple and takes us to the next technique which is...
SUB-PRIME MERCHANDISE CARDS: The single most cost effective (and powerful) tool for consumers to increase their high credit limit
and decrease their debt to credit ratio is the use of Sub-Prime Merchandise Cards which report to one of more of the major credit
bureaus.
Unfortunately, despite their immense benefits, these are the most
misunderstood cards in the credit industry. A large portion of the
misunderstanding is due to marketers misrepresenting the cards and the growing number of companies promoting them. When you
learn how they work one quickly understands why they have been
the subject of much misrepresentation.
A Sub-Prime Merchandise Card is nothing more than a card attached to a line of credit which allows you to buy merchandise from a
specific vendor (usually the company that sold you the
card). The merchandise (in most cases) will be purchased through a catalog or online mall.
Where the problem arises is that the cards are marketed almost exclusively to the sub prime market via email, telemarketing and direct
mail etc. The reason for this is they can advertise
almost irresistible offers like "$5,000 Credit Card... GUARANTEED! No Credit Check! NO Cosigner! You cannot be turned down!" or
"Unsecured $10,000 Credit Line! Everyone Approved!". I'm sure you get the idea...
While there are many companies which do this and are a "shady at best", there are a few which do it legitimately and it's the best kept
secret to build your credit and build it fast.
Here's how it works: the company approves anyone with a pulse
(literally) and gives them a card for $2,500 to $12,500 with NO credit check and NO cosigner. However, the card is only good for
merchandise through their website or catalogs and the consumer is
required to put down a deposit on whatever they purchase. After the
deposit is paid, the remaining balance is financed on the card.
For example. A person buys $1,000 worth of merchandise. Their deposit is $300 so they then finance $700 on their merchandise card
and make payments. Sound like a scam? If you say "Yes"
like most people then you're missing the point... big time.
With a legitimate Sub-Prime Merchandise Card your credit line WILL
be reported to at least one major credit bureau (or more). This means if you get a $5,000 card and you finance $500, on your credit report
it will look like any other credit card and will do three extremely important things for you.
1.) It will increase your current "High Credit Limit" by $5,000 almost
overnight as the account "looks" like any other unsecured revolving account.
2.) By carrying a small outstanding balance it will positively impact your credit report by building and showing potential lenders your credit
worthiness.
3.) With a good payment history you are virtually guaranteed to receive "legitimate" pre-approved credit offers in the future due to other
lenders renting your name from the credit bureaus.
This technique is hard to beat for both cost and effectiveness. Of
course, the whole key is knowing exactly which cards report to the
credit bureau and offer the best rates. The only thing more effective is...
PIGGYBACKING: Despite its' virtually unlimited potential, piggybacking is not used by nearly as many consumers as it should be. It's
easy, effective, and extremely fast. Unfortunately, it's mostly used among parents and siblings while those who can really
benefit stay in the dark.
How it works. Almost every credit card or credit account will allow the
primary account holder to add on (at a later date) what's known as an
"Authorized User" or "Secondary Account Holder". In most cases, when this is done, the entire account history (retroactively) gets posted
to the authorized users credit report regardless of their current age or credit history!
For example. If it's a credit card with a $10,000 limit which has been
paid as agreed for the last 10 years, then that complete history will be posted to the authorized users' credit report. I once saw a clients'
credit report who used this technique with his mother. He was only 24 at the time and he had a $15,000 Gold credit card on his report
with history going back 11 years! I laughed as I thought to myself that this kid would have had to be approved when he was 13 years old
for this account to be his!
As you can see, this strategy is usually only used by parents and their children and in most cases with no regard to the benefits the
children are reaping credit wise! In fact, in recent years, due to its'
effectiveness, this technique has led individuals with excellent credit
scores to "rent out" authorized user accounts on one or even multiple credit cards in return for a fee! I once recall seeing an ad in USA
TODAY for just such an opportunity. Like most good credit loopholes, I'm sure this methods' days are numbered much like
what may be the case with...
ADVANCED CREDIT PROFILING: This is a strategy while not complex, can be taken to very complex levels. Even in its' most basic form,
it's taken advantage of by very, very few. It involves intentionally building your credit report in a way which creates a
"profile" that closely fits the criteria of most lenders (as well as
the overall credit scoring system). Again, this is a technique which can be used in a myriad of complex ways, but for simplicity I will
explain it in its' most basic form.
While many consumers will boast when they have 10, 20, 30 or even 50 thousand dollars worth of credit cards on their report, many of
these same people do NOT have even one mortgage, automotive loan or lease, equipment loan or a even a line of credit with a
local bank or credit union. These other forms of credit create a much
more well rounded credit profile for the consumer. This is achieved by showing greater credit account diversity and experience with
multiple types of credit due to the various lines held.
For example. A person with $50K in credit cards does not represent near the credit experience as a person with the same $50K along
with a mortgage, an automotive loan and an equipment lease.
We have clients who have financed vehicles not because they had to (or even wanted to) but because they "needed to" in order to create a
credit profile that would position them in the future to secure the lowest possible rate on a mortgage when they applied
and needed it.
More complex forms of Advance Credit Profiling involve one subscribing to affluent or semi-affluent business and
professional publications and organizations. These would include
magazines, newsletters, trade journals and national associations. The goal is to get ones name into the databases of these
publications and organizations. Why? To get on highly targeted lists
in order to receive select credit offers.
Marketers of credit offers have found that simply renting names of consumers from the credit bureaus does not provide enough
information about the person as a credit risk anymore. Therefore, it is speculated that many will rent a list from the credit bureau and then
cross-reference this list against another list they have secured
from a consumer source such as an affluent business or professional publication, trade journal or organization.
By crossing the two lists together the marketers find the names contained on both lists. This in turn provides them with one highly refined
and targeted list to mail their offer to. This results in shortening the process of securing a new quality account holder
thus lower the overall account acquisition cost of new accounts.
When a consumer learns how to intentionally put themselves into these databases to wind up on these refined lists, the credit building
process is sped up exponentially. Of course, many
would call this "highly speculative" but we have undeniable experience that it works.
DEPOSIT LOAN PROGRAMS: This is a technique so unbelievable that I myself proclaimed it had to be a scam before researching the
facts. It allows the consumer (or business) to have a $25,000 to $250,000 loan appear on their credit report as "Paid as Agreed"
by way of very creative financing. This method is extremely effective and not within the budget of most ($750 to $7,500 upfront). Also,
because this technique takes advantage of certain banking laws, I have reason to believe it could be made unavailable at any
time if those banking laws were to change. This method can be used with consumer credit files on SSN's as well as business and
corporate credit files done on TIN's as well as Dunn and Bradstreet.
In the end, all of us need to remember that today our credit score is more important than it has ever been in the history of the credit
reporting system. While credit miracles don't happen overnight, you can create your own credit miracles by applying simple insider
strategies consistently over time. Before you know it, you're a
proud member of the 700 Club. The "700 Plus Credit Score" club that is!
In the next segment we'll talk about...
"Facts Consumers Should Know BEFORE
Using A Credit Counseling Service!"
For more information on the CREDIT SECRETS BIBLE Click Here
-by Terry Price
(C) Copyright Terry Price
All Rights Reserved
If there is one question I'm asked by consumers more than any other about credit, it's this "What's the fastest way to raise my credit
score?". My response is always the same "How much do you want to raise it?"
If you wish to increase your score from 580 to 650 then your strategy will be very different from someone wanting to go from 670 to 725.
Why? Because you starting point is different which requires a different approach. Also, while the removal of negative items
from a report will almost always lead to an increase in score, it's a basic concept at best. Therefore, within this article, we'll discuss
somewhat inside techniques known by very few (since this is what our company specializes in publishing).
In relation to just removing negative items, these are techniques which you can use even if you have NO derogatory information on your
credit report. We'll start with the most overlooked strategy first and that's your...
DEBT to CREDIT RATIO: The most fraudulent belief I've been hearing for over 15 years is "I have excellent credit, I pay all my bills off in full
every month!" This is a false belief for one to buy into and understanding your debt to credit ratio holds the key to getting your "credit
mindset" right.
Your debt to credit ratio is your ratio of debt to total available credit
you have been extended (revolving accounts only). For example. If you have $10,000 in total unsecured revolving credit accounts and
you're currently in debt $2500, then your debt to credit ratio is 25%. Since the main way lenders make money is by charging interest, one
of the elements of the credit scoring model is driven by your
ability to maintain balances and pay over time. This shows your true (long term) credit worthiness which is most profitable to lenders
since they make money primarily via interest and not annual fees.
Over the years we've discovered without question that carrying the
proper debt to credit ratio will boost your score faster than paying off your bills in full each month. I have argued with the Better Business
Bureau on this topic for and they still disagree (despite my sending them proof from Fair Isaacs own website www.MyFico.com the
organization which invented the credit scoring software used by credit bureaus).
Of course, what do you do if you're like most Americans and your debt to credit ratio is too high? For example. You have $10,000 in
unsecured revolving accounts but you owe $8500, thereby giving you an 85% debt to credit ratio. How can you bring it down without
selling everything you own? The answer is simple and takes us to the next technique which is...
SUB-PRIME MERCHANDISE CARDS: The single most cost effective (and powerful) tool for consumers to increase their high credit limit
and decrease their debt to credit ratio is the use of Sub-Prime Merchandise Cards which report to one of more of the major credit
bureaus.
Unfortunately, despite their immense benefits, these are the most
misunderstood cards in the credit industry. A large portion of the
misunderstanding is due to marketers misrepresenting the cards and the growing number of companies promoting them. When you
learn how they work one quickly understands why they have been
the subject of much misrepresentation.
A Sub-Prime Merchandise Card is nothing more than a card attached to a line of credit which allows you to buy merchandise from a
specific vendor (usually the company that sold you the
card). The merchandise (in most cases) will be purchased through a catalog or online mall.
Where the problem arises is that the cards are marketed almost exclusively to the sub prime market via email, telemarketing and direct
mail etc. The reason for this is they can advertise
almost irresistible offers like "$5,000 Credit Card... GUARANTEED! No Credit Check! NO Cosigner! You cannot be turned down!" or
"Unsecured $10,000 Credit Line! Everyone Approved!". I'm sure you get the idea...
While there are many companies which do this and are a "shady at best", there are a few which do it legitimately and it's the best kept
secret to build your credit and build it fast.
Here's how it works: the company approves anyone with a pulse
(literally) and gives them a card for $2,500 to $12,500 with NO credit check and NO cosigner. However, the card is only good for
merchandise through their website or catalogs and the consumer is
required to put down a deposit on whatever they purchase. After the
deposit is paid, the remaining balance is financed on the card.
For example. A person buys $1,000 worth of merchandise. Their deposit is $300 so they then finance $700 on their merchandise card
and make payments. Sound like a scam? If you say "Yes"
like most people then you're missing the point... big time.
With a legitimate Sub-Prime Merchandise Card your credit line WILL
be reported to at least one major credit bureau (or more). This means if you get a $5,000 card and you finance $500, on your credit report
it will look like any other credit card and will do three extremely important things for you.
1.) It will increase your current "High Credit Limit" by $5,000 almost
overnight as the account "looks" like any other unsecured revolving account.
2.) By carrying a small outstanding balance it will positively impact your credit report by building and showing potential lenders your credit
worthiness.
3.) With a good payment history you are virtually guaranteed to receive "legitimate" pre-approved credit offers in the future due to other
lenders renting your name from the credit bureaus.
This technique is hard to beat for both cost and effectiveness. Of
course, the whole key is knowing exactly which cards report to the
credit bureau and offer the best rates. The only thing more effective is...
PIGGYBACKING: Despite its' virtually unlimited potential, piggybacking is not used by nearly as many consumers as it should be. It's
easy, effective, and extremely fast. Unfortunately, it's mostly used among parents and siblings while those who can really
benefit stay in the dark.
How it works. Almost every credit card or credit account will allow the
primary account holder to add on (at a later date) what's known as an
"Authorized User" or "Secondary Account Holder". In most cases, when this is done, the entire account history (retroactively) gets posted
to the authorized users credit report regardless of their current age or credit history!
For example. If it's a credit card with a $10,000 limit which has been
paid as agreed for the last 10 years, then that complete history will be posted to the authorized users' credit report. I once saw a clients'
credit report who used this technique with his mother. He was only 24 at the time and he had a $15,000 Gold credit card on his report
with history going back 11 years! I laughed as I thought to myself that this kid would have had to be approved when he was 13 years old
for this account to be his!
As you can see, this strategy is usually only used by parents and their children and in most cases with no regard to the benefits the
children are reaping credit wise! In fact, in recent years, due to its'
effectiveness, this technique has led individuals with excellent credit
scores to "rent out" authorized user accounts on one or even multiple credit cards in return for a fee! I once recall seeing an ad in USA
TODAY for just such an opportunity. Like most good credit loopholes, I'm sure this methods' days are numbered much like
what may be the case with...
ADVANCED CREDIT PROFILING: This is a strategy while not complex, can be taken to very complex levels. Even in its' most basic form,
it's taken advantage of by very, very few. It involves intentionally building your credit report in a way which creates a
"profile" that closely fits the criteria of most lenders (as well as
the overall credit scoring system). Again, this is a technique which can be used in a myriad of complex ways, but for simplicity I will
explain it in its' most basic form.
While many consumers will boast when they have 10, 20, 30 or even 50 thousand dollars worth of credit cards on their report, many of
these same people do NOT have even one mortgage, automotive loan or lease, equipment loan or a even a line of credit with a
local bank or credit union. These other forms of credit create a much
more well rounded credit profile for the consumer. This is achieved by showing greater credit account diversity and experience with
multiple types of credit due to the various lines held.
For example. A person with $50K in credit cards does not represent near the credit experience as a person with the same $50K along
with a mortgage, an automotive loan and an equipment lease.
We have clients who have financed vehicles not because they had to (or even wanted to) but because they "needed to" in order to create a
credit profile that would position them in the future to secure the lowest possible rate on a mortgage when they applied
and needed it.
More complex forms of Advance Credit Profiling involve one subscribing to affluent or semi-affluent business and
professional publications and organizations. These would include
magazines, newsletters, trade journals and national associations. The goal is to get ones name into the databases of these
publications and organizations. Why? To get on highly targeted lists
in order to receive select credit offers.
Marketers of credit offers have found that simply renting names of consumers from the credit bureaus does not provide enough
information about the person as a credit risk anymore. Therefore, it is speculated that many will rent a list from the credit bureau and then
cross-reference this list against another list they have secured
from a consumer source such as an affluent business or professional publication, trade journal or organization.
By crossing the two lists together the marketers find the names contained on both lists. This in turn provides them with one highly refined
and targeted list to mail their offer to. This results in shortening the process of securing a new quality account holder
thus lower the overall account acquisition cost of new accounts.
When a consumer learns how to intentionally put themselves into these databases to wind up on these refined lists, the credit building
process is sped up exponentially. Of course, many
would call this "highly speculative" but we have undeniable experience that it works.
DEPOSIT LOAN PROGRAMS: This is a technique so unbelievable that I myself proclaimed it had to be a scam before researching the
facts. It allows the consumer (or business) to have a $25,000 to $250,000 loan appear on their credit report as "Paid as Agreed"
by way of very creative financing. This method is extremely effective and not within the budget of most ($750 to $7,500 upfront). Also,
because this technique takes advantage of certain banking laws, I have reason to believe it could be made unavailable at any
time if those banking laws were to change. This method can be used with consumer credit files on SSN's as well as business and
corporate credit files done on TIN's as well as Dunn and Bradstreet.
In the end, all of us need to remember that today our credit score is more important than it has ever been in the history of the credit
reporting system. While credit miracles don't happen overnight, you can create your own credit miracles by applying simple insider
strategies consistently over time. Before you know it, you're a
proud member of the 700 Club. The "700 Plus Credit Score" club that is!
In the next segment we'll talk about...
"Facts Consumers Should Know BEFORE
Using A Credit Counseling Service!"
For more information on the CREDIT SECRETS BIBLE Click Here
Facts You Should Know BEFORE Considering Credit Counseling or Debt Consolidation
-by Terry Price
(C) Copyright Terry Price
All Rights Reserved
There is one topic which every time I write about it seems to generate some hate mail while at the same time spawning a flurry of
wonderful praise from consumers. Of course, the hate
mail is always from a few people that happen to own these "certain types" of businesses I discussed and those
businesses of course are Credit Counseling or Debt Consolidation companies; of which many "claim" to be
non-profit organizations.
You'd almost have to be an ostrich with your head stuck in the sand to not see or hear at least one advertisement a day from a Credit
Counseling or Debt Consolidation Company. However, you can expect this to change and change soon. Since this is a topic which
tends to "stir up" the owners of these
businesses, I am going to take a different approach by NOT sharing my opinion, but rather, the opinion of others. I will start with the news
media and the Internal Revenue Service:
"(NPR News, May 15, 2006). The Internal Revenue Service is revoking the tax exempt status of some of the largest credit counseling
agencies in the country. An IRS investigation
disclosed that the firms solicited business from people seriously in debt and that they didn't provide counseling
or consumer education, as required.
Prodded in part by a congressional oversight committee and consumer advocates, the IRS began investigating dozens of credit
counseling agencies -- most holding non-profit status -- two years ago. IRS Commissioner Mark Everson says the companies "poisoned
an entire sector of the charitable
community."
Everson says in many instances, companies were organized merely to funnel business to loosely affiliated for-profit companies. Many of
the firms spend millions of dollars on
commercials that urge anyone with debt to call them to solve their financial woes. And because tax-exempt organizations are not bound
by the federal do-not call list, the firms were able to randomly call consumers, pitching their services under the guise of a non-profit
counseling service.
The IRS investigations are also likely to affect consumers, thanks to a new bankruptcy law that requires consumers considering
bankruptcy to get counseling before they are allowed to file. The IRS wants to ensure that only legitimate non-profit agencies are doing
the counseling. In addition to
the actions announced Monday, the IRS is sending more than 700 compliance letters to the rest of the credit counseling industry (END)."
Since almost all Credit Counseling and Debt Consolidation companies claim a non-profit status, I feel most consumers are easily
sucked in with their skepticism and defenses at bay.
After all, when most of us hear the word "non-profit" the first thing we usually think of is a church or homeless shelter.
From the NPR article and the actions of the IRS, I think it's fair
to assume that many of these "non- profit" organizations have been operating under a scenario similar to that of a wolf guarding a hen
house. However, this doesn't mean all credit
counseling and debt consolidation companies are bad but... you do need to know the truth about how they operate
and their limitations.
The first thing you want to understand is these companies are ALL more interested in making money off you than they are in preserving
your credit rating. The bottom line with either
credit counseling or debt consolidation is that it absolutely ruins your credit. I can just hear the companies arguing this with a consumer
right now, telling them nonsense like "It helps
your credit since it tells creditors that you're working on your situation and not just running away from it."
Listen... if one these places tells you that than watch out. Why? Because they will lie to you about other things as well!
One of the first actions these programs usually requires you to do is for you to CLOSE all your revolving credit accounts. You then make
payments to the organization and they take care of everything for you. What this says to all your creditors (as
well as anyone considering giving you credit) is that you are so out of control with your finances that you can't even manage paying
everyone back on your own. Therefore, you're hiring
someone else to do it for you!
99% of the time these companies will claim they can negotiate with your creditors and get interest rates reduced thereby saving you
money. While this is true, what's also true is
you can easily negotiate these same rates as well as they can by just calling your creditors yourself. You'd be amazed at how many of
your creditors would love to hear from you (especially
when the chips are down!). Not too mention, any money the counseling company was to save you would more than
likely be sucked back up by their monthly fees (usually around $500 to $1,000 per year).
This brings us into a whole other dynamic of their business model. Because these companies always make their money off of monthly
fees paid by the consumer, the longer they can keep those monthly fees coming in the more profitable their business will be. It's for this
reason that most consumers who sign up with these companies usually find themselves on
payment plans with the lowest monthly payment possible (which turns out to also be the LONGEST payment plan as
well). Not surprising is it?
Am I against Credit Counseling and Debt Consolidation companies? Absolutely not. After all, there are millions of people in America who
will never be able to manage their finances. Credit to them is a destructive addiction much like alcohol or drugs and they will never be
able to control it. Instead, it will always control them. We've all seen these people. Every time they are extended credit shortly thereafter
they are in financial trouble (usually blaming it on some external factor). For these people I think these credit and debt
counseling programs can be a good thing (as a ruined credit report is not a hindrance to them but actually an asset). It keeps them out of
future financial trouble by forcing them to
live their lives on a "cash and carry" basis; which is ultimately conducive to a better standard of living down the road.
On the other hand. If you're good with your finances and have control with credit but went through some type of hardship beyond your
control in the past (i.e. divorce, job loss etc); then
the services of these companies will never be for you. You will do far better and preserve your credit rating by taking matters into your own
hands. Reason being is that you understand
your credit rating is a powerful tool that can help you move ahead faster, help others and help yourself as well as create the life you want.
It all comes down to self management. We all know that those who cannot manage themselves will ultimately be managed by others.
Credit is no different.
When you learn to manage it well, you are the master and it is the servant.
If you care about your credit and want to benefit from it in the future, then you will never rely on a credit or debt counseling service to help
you get out of any trouble you find yourself
in. Instead, you'll look inward and get yourself out while preserving your credit rating the best you can. Credit and debt counseling is for
people who are "ok" with throwing their credit
rating in the trash so they can have "someone else" manage their payments for them (since they are unable to manage them
themselves). And again, as far as negotiating interest rates, you can do just as good as them or better. If you don't believe me just call
any of your creditors and straight out tell
them your situation. You will quickly find you don't need to be afraid of them. They just want to get paid like the rest of us.
CREDIT SECRETS BIBLE
-by Terry Price
(C) Copyright Terry Price
All Rights Reserved
There is one topic which every time I write about it seems to generate some hate mail while at the same time spawning a flurry of
wonderful praise from consumers. Of course, the hate
mail is always from a few people that happen to own these "certain types" of businesses I discussed and those
businesses of course are Credit Counseling or Debt Consolidation companies; of which many "claim" to be
non-profit organizations.
You'd almost have to be an ostrich with your head stuck in the sand to not see or hear at least one advertisement a day from a Credit
Counseling or Debt Consolidation Company. However, you can expect this to change and change soon. Since this is a topic which
tends to "stir up" the owners of these
businesses, I am going to take a different approach by NOT sharing my opinion, but rather, the opinion of others. I will start with the news
media and the Internal Revenue Service:
"(NPR News, May 15, 2006). The Internal Revenue Service is revoking the tax exempt status of some of the largest credit counseling
agencies in the country. An IRS investigation
disclosed that the firms solicited business from people seriously in debt and that they didn't provide counseling
or consumer education, as required.
Prodded in part by a congressional oversight committee and consumer advocates, the IRS began investigating dozens of credit
counseling agencies -- most holding non-profit status -- two years ago. IRS Commissioner Mark Everson says the companies "poisoned
an entire sector of the charitable
community."
Everson says in many instances, companies were organized merely to funnel business to loosely affiliated for-profit companies. Many of
the firms spend millions of dollars on
commercials that urge anyone with debt to call them to solve their financial woes. And because tax-exempt organizations are not bound
by the federal do-not call list, the firms were able to randomly call consumers, pitching their services under the guise of a non-profit
counseling service.
The IRS investigations are also likely to affect consumers, thanks to a new bankruptcy law that requires consumers considering
bankruptcy to get counseling before they are allowed to file. The IRS wants to ensure that only legitimate non-profit agencies are doing
the counseling. In addition to
the actions announced Monday, the IRS is sending more than 700 compliance letters to the rest of the credit counseling industry (END)."
Since almost all Credit Counseling and Debt Consolidation companies claim a non-profit status, I feel most consumers are easily
sucked in with their skepticism and defenses at bay.
After all, when most of us hear the word "non-profit" the first thing we usually think of is a church or homeless shelter.
From the NPR article and the actions of the IRS, I think it's fair
to assume that many of these "non- profit" organizations have been operating under a scenario similar to that of a wolf guarding a hen
house. However, this doesn't mean all credit
counseling and debt consolidation companies are bad but... you do need to know the truth about how they operate
and their limitations.
The first thing you want to understand is these companies are ALL more interested in making money off you than they are in preserving
your credit rating. The bottom line with either
credit counseling or debt consolidation is that it absolutely ruins your credit. I can just hear the companies arguing this with a consumer
right now, telling them nonsense like "It helps
your credit since it tells creditors that you're working on your situation and not just running away from it."
Listen... if one these places tells you that than watch out. Why? Because they will lie to you about other things as well!
One of the first actions these programs usually requires you to do is for you to CLOSE all your revolving credit accounts. You then make
payments to the organization and they take care of everything for you. What this says to all your creditors (as
well as anyone considering giving you credit) is that you are so out of control with your finances that you can't even manage paying
everyone back on your own. Therefore, you're hiring
someone else to do it for you!
99% of the time these companies will claim they can negotiate with your creditors and get interest rates reduced thereby saving you
money. While this is true, what's also true is
you can easily negotiate these same rates as well as they can by just calling your creditors yourself. You'd be amazed at how many of
your creditors would love to hear from you (especially
when the chips are down!). Not too mention, any money the counseling company was to save you would more than
likely be sucked back up by their monthly fees (usually around $500 to $1,000 per year).
This brings us into a whole other dynamic of their business model. Because these companies always make their money off of monthly
fees paid by the consumer, the longer they can keep those monthly fees coming in the more profitable their business will be. It's for this
reason that most consumers who sign up with these companies usually find themselves on
payment plans with the lowest monthly payment possible (which turns out to also be the LONGEST payment plan as
well). Not surprising is it?
Am I against Credit Counseling and Debt Consolidation companies? Absolutely not. After all, there are millions of people in America who
will never be able to manage their finances. Credit to them is a destructive addiction much like alcohol or drugs and they will never be
able to control it. Instead, it will always control them. We've all seen these people. Every time they are extended credit shortly thereafter
they are in financial trouble (usually blaming it on some external factor). For these people I think these credit and debt
counseling programs can be a good thing (as a ruined credit report is not a hindrance to them but actually an asset). It keeps them out of
future financial trouble by forcing them to
live their lives on a "cash and carry" basis; which is ultimately conducive to a better standard of living down the road.
On the other hand. If you're good with your finances and have control with credit but went through some type of hardship beyond your
control in the past (i.e. divorce, job loss etc); then
the services of these companies will never be for you. You will do far better and preserve your credit rating by taking matters into your own
hands. Reason being is that you understand
your credit rating is a powerful tool that can help you move ahead faster, help others and help yourself as well as create the life you want.
It all comes down to self management. We all know that those who cannot manage themselves will ultimately be managed by others.
Credit is no different.
When you learn to manage it well, you are the master and it is the servant.
If you care about your credit and want to benefit from it in the future, then you will never rely on a credit or debt counseling service to help
you get out of any trouble you find yourself
in. Instead, you'll look inward and get yourself out while preserving your credit rating the best you can. Credit and debt counseling is for
people who are "ok" with throwing their credit
rating in the trash so they can have "someone else" manage their payments for them (since they are unable to manage them
themselves). And again, as far as negotiating interest rates, you can do just as good as them or better. If you don't believe me just call
any of your creditors and straight out tell
them your situation. You will quickly find you don't need to be afraid of them. They just want to get paid like the rest of us.
CREDIT SECRETS BIBLE
The TRUTH About Creating An Alternate Credit File
-by Terry Price
(C) Copyright Terry Price
All Rights Reserved
What if I told you there was a way you could solve all your bad credit problems overnight by creating a brand new credit file in 24hrs -
would you be interested? And what if I told you this program was 100% legal and even backed by the federal government - would that
sound too good to be true?
Well... you're right. It is too good to be true but these types of ads are now surfacing again after the Federal Trade Commission launched
"Operation New ID Bad Idea" over 8
years ago. This operation targeted (and took down) over 50 credit repair organizations and companies selling
consumers both pamphlets and services giving them a brand new credit file under the pretense it was 100% legal and in some cases
even claimed it to be a "government sponsored" program!
The con was simple. Companies would target consumers with bad credit and offer to create a brand new credit file for them by
substituting an Employer Identification Number (EIN)
for their Social Security Number (SSN) along with a new address. EIN's were obtained from the Internal Revenue
Service on behalf of the consumer. With the EIN and a new address the companies would either have the consumer apply for credit with
the "new information" or the company would apply for them. When the creditor would run the application it would automatically create a
new credit file because the
computer would be unable to find the consumer in the database due to the new address and SSN.
While there is some dispute among privacy experts as to whether or not this is legal, the FTC's actions at the time were not up for debate.
Companies were advertising and luring in
consumers in order to have them falsify credit applications by providing new information such as their address and SSN in order to obtain
credit. This was a direct violation of the Truth in
Lending Act (TILA) and worse yet, the companies were advertising to consumers that this was 100% legal and in some cases claiming it
was a government sponsored program. As you'll hear me say often "In reality, nothing could be further from the truth".
Privacy experts will argue that using an EIN or 9 digit PIN (simply a made up number) in place of ones' SSN is completely legal since
creditors are on shaky ground asking for your SSN in the first place. In regards to the truth in lending act they will argue that one has to
exhibit "an intent to defraud" a creditor. My question "Is concealing ones' adverse credit history intent in itself?" While I am not an Attorney
on the matter of credit law I can conclude that if a consumer was to
create an alternate credit file using the EIN or PIN method they better be darn sure they never have a problem paying their bills. If they do,
they most likely would find themselves in a
courtroom with a case involving credit fraud. Which brings me to my next topic.
How To Create An Alternate Credit File Legally
Most consumers are unaware that in addition to consumer credit reports, both Experian and Equifax own and operate business credit
reporting services. By creating a business
credit profile a consumer can now create an alternate credit file
legally. While some creditors such as residential utility companies will not allow you to use business credit in
place of personal credit, we have had numerous clients who have successfully used business credit to obtain credit cards, automotive
leases and loans. This technique (although controversial) can be very effective when done properly.
The basics of building business credit involve 1.) Setting up the proper structure for your business (i.e. Corporation, LLC, etc.). 2.)
Obtaining an EIN as well as a DUNS number (Dunn and Bradstreet). 3.) Borrow and/or buy products and services
from vendors who reports to business credit reporting agencies such as Experian, Equifax and Dunn & Bradstreet. While building
business credit requires time just like personal
credit, don't get discouraged. Remember, when you set out to begin building your business credit you are starting with a clean slate. This
is when it becomes imperative that one
learn from the mistakes of their past. Remember, in the credit world those who do not learn from their past are (inevitably) doomed to
repeat it.
For more information on the CREDIT SECRETS BIBLE Click Here
-by Terry Price
(C) Copyright Terry Price
All Rights Reserved
What if I told you there was a way you could solve all your bad credit problems overnight by creating a brand new credit file in 24hrs -
would you be interested? And what if I told you this program was 100% legal and even backed by the federal government - would that
sound too good to be true?
Well... you're right. It is too good to be true but these types of ads are now surfacing again after the Federal Trade Commission launched
"Operation New ID Bad Idea" over 8
years ago. This operation targeted (and took down) over 50 credit repair organizations and companies selling
consumers both pamphlets and services giving them a brand new credit file under the pretense it was 100% legal and in some cases
even claimed it to be a "government sponsored" program!
The con was simple. Companies would target consumers with bad credit and offer to create a brand new credit file for them by
substituting an Employer Identification Number (EIN)
for their Social Security Number (SSN) along with a new address. EIN's were obtained from the Internal Revenue
Service on behalf of the consumer. With the EIN and a new address the companies would either have the consumer apply for credit with
the "new information" or the company would apply for them. When the creditor would run the application it would automatically create a
new credit file because the
computer would be unable to find the consumer in the database due to the new address and SSN.
While there is some dispute among privacy experts as to whether or not this is legal, the FTC's actions at the time were not up for debate.
Companies were advertising and luring in
consumers in order to have them falsify credit applications by providing new information such as their address and SSN in order to obtain
credit. This was a direct violation of the Truth in
Lending Act (TILA) and worse yet, the companies were advertising to consumers that this was 100% legal and in some cases claiming it
was a government sponsored program. As you'll hear me say often "In reality, nothing could be further from the truth".
Privacy experts will argue that using an EIN or 9 digit PIN (simply a made up number) in place of ones' SSN is completely legal since
creditors are on shaky ground asking for your SSN in the first place. In regards to the truth in lending act they will argue that one has to
exhibit "an intent to defraud" a creditor. My question "Is concealing ones' adverse credit history intent in itself?" While I am not an Attorney
on the matter of credit law I can conclude that if a consumer was to
create an alternate credit file using the EIN or PIN method they better be darn sure they never have a problem paying their bills. If they do,
they most likely would find themselves in a
courtroom with a case involving credit fraud. Which brings me to my next topic.
How To Create An Alternate Credit File Legally
Most consumers are unaware that in addition to consumer credit reports, both Experian and Equifax own and operate business credit
reporting services. By creating a business
credit profile a consumer can now create an alternate credit file
legally. While some creditors such as residential utility companies will not allow you to use business credit in
place of personal credit, we have had numerous clients who have successfully used business credit to obtain credit cards, automotive
leases and loans. This technique (although controversial) can be very effective when done properly.
The basics of building business credit involve 1.) Setting up the proper structure for your business (i.e. Corporation, LLC, etc.). 2.)
Obtaining an EIN as well as a DUNS number (Dunn and Bradstreet). 3.) Borrow and/or buy products and services
from vendors who reports to business credit reporting agencies such as Experian, Equifax and Dunn & Bradstreet. While building
business credit requires time just like personal
credit, don't get discouraged. Remember, when you set out to begin building your business credit you are starting with a clean slate. This
is when it becomes imperative that one
learn from the mistakes of their past. Remember, in the credit world those who do not learn from their past are (inevitably) doomed to
repeat it.
For more information on the CREDIT SECRETS BIBLE Click Here
Facts Consumers Should Know Before Using
A Credit Repair Company
-by Terry Price
(C) Copyright Terry Price
All Rights Reserved
Have you ever wondered about those ads you see from companies and law firms which offer to fix your credit for a low monthly fee? People with credit problems often ask me when it
comes to improving their credit score whether they should hire a credit repair company or do it themselves? Unfortunately, there is no simple or universal answer to this question.
However, I will shed some light on the subject if you're in need of a little
enlightenment.
According to the Federal Trade Commission (FTC) "Everything a credit repair clinic can do for you legally you can do for yourself at little or no cost". While I agree with the FTC I also
understand some consumers do not have the time, patience (or knowledge)
to do the work themselves and the thought of "drive-thru-we-do-it-all-for- you-credit-repair" becomes very
appealing. After all, everything a mobile oil change service can do for me I can also do myself at little or no cost (but you won't find me changing the oil in my car this weekend!).
Although some things are better done yourself, only you can determine if doing your own credit restoration work will be one of them. This is why understanding both the advantages
and
limitations of a credit repair company and the structure from which it operates are VERY important.
REFERENCES: Any legitimate company or individual doing credit restoration work for consumers will be able to provide you with at least half a dozen references. If the company or
person is local you should be able to call these references. This is without
question the most important point of consideration when hiring a
professional to do the work for you.
If possible, I suggest you ask friends, family, relatives and
professional contacts if they know of someone who does credit restoration work as a side business. By far the highest percentage of successful stories I hear from consumers are
those which come from those who found a credit consultant via personal referral. I cannot stress this enough. It's the difference between going on a vacation with a close friend
instead of
a stranger.
CONTRACT: Unlike painting a house or putting in a driveway, credit restoration work (and results) are extremely broad. Therefore, the use of a contract is imperative. Most likely your
credit challenges didn't occur overnight and they won't be improved overnight either. A good contract protects you as well as the service provider. The contract should be easy to
understand without an Attorney and spell out the actual services which will be rendered as well as the service providers' limitations (i.e. they cannot guarantee the removal of any one
particular item but can guarantee an overall increase in score overtime).
MONTHLY FEE: One of the most critical elements which affects "how" a credit restoration company operates is determined by its' payment structure. One of the most common
payment structures of large companies or law firms doing credit restoration is that
of the monthly "auto-debit" fee. In this structure the consumer usually pays $49 to $99 up front and then a monthly fee of $39 to $49 per month. While there is an advantage to this
method (affordability) with it comes many disadvantages.
1.) The first disadvantage this structure creates is that it gives the
company absolutely no incentive to work quickly or aggressively on behalf of the consumer. In fact, the opposite is true. The longer they take the longer they will continue to collect
their
monthly fee! In most cases this structure leads to slow results over a very long period of time. Looking at it logically, this shouldn't come as a surprise.
2.) The other challenge within this structure is the actual amount of time, effort and resources which a company or law firm can reasonably allocate on a consumer's behalf.
Remember, any large business has a tremendous amount of overhead which quickly chews up most of that monthly fee. Out of that $39 to
$49 there are monthly expenses including but not limited to:
Advertising, Office Rent and Utilities, Employee Payroll and Taxes, Health Insurance, Phone Service, Office Supplies, Refunds, Computer Maintenance and Programming, Website
Administration, Office Supplies and let's not forget postage for mailing letters to creditors, collection agencies and credit bureaus. A much simpler way to think of this is by imagining
if you had a client paying you $39 a month; how much work would
you be willing to do?
3.) One of the biggest challenges credit repair companies charging low monthly fees run into is being forced to rely on the use of Automated "Boiler Plate" Dispute and
Correspondence
Letters. Boiler Plate Letters are simple form letters which are used for ALL consumers (one format fits all). Once set up in a computer program with the consumers' information they
are
"shot out" automatically based on the consumers needs (i.e. late pay, charge-off, judgment etc).
The problem here is that when a credit repair company has thousands of clients they are shooting these form letters out for, the creditors, collection agencies and credit bureaus can
take notice of these letters being used over and over and discover your
correspondence is coming from a third party (i.e. credit repair company or law firm) and in some cases ignore it or (worse yet) mark the dispute frivolous and flag your credit report. I
spoke with a man recently who was on the inside of a large credit repair
company who informed me they had an archive of over 10,000 boiler plate letters on file to avoid this problem. Of course, they charged customers by the month.
NON-DISCLOSURE OF METHODS: One of the most troubling issues with 95% of large credit repair firms (especially law firms) is their non-disclosure of dispute tactics and
methods. As a
consumer it is vital that you are made aware of the methods they are using in dealing with your creditors,collections and the credit bureaus. If the organization or law firm violates
laws or makes errors (I have witnessed both) you could be held liable for
their negligence. In addition, this can actually make your credit worse and create problems which are very difficult to clean up. Anyone doing credit restoration for you should disclose
"what" they are doing since you are paying for a service. If they won't, you better run the other way as they could be pouring gas on a blazing
camp fire.
LOCATED IN HOME STATE: This is one of the most overlooked keys to successful third party credit restoration which
consumers miss. It is absolutely vital when having someone else do your credit restoration work for you that they
operate within your home state. Here's why: if a credit repair company or law firm mails dispute letters or correspondence on your behalf from another state, that mail will be
postmarked from that state. If the credit bureau catches this they can (and in many cases will) mark the dispute as frivolous and flag your credit file.
It is known that many Credit Repair Companies and Law Firms will resort to or create a method to avoid and out of state postmark in order to get disputes postmarked from the
consumers' home state (potentially violating postal regulations). For example. If they are in NY and you are in CA they will first
have to mail your dispute letters inside an envelope from NY to CA. Once in CA someone opens the envelope and then mails your dispute letters from CA so they postmarked from
your home
state. I am not an expert on postal regulations but had one postal employee tell me the concept sounded extremely shady at best.
CUSTOMIZATION: It's for this reason that some of the most advanced forms of credit restoration are done completely
customized for the client and even (in many cases) by hand. The best credit restoration companies I've seen are usually run by one person or a small number of people and are
extremely
customized for each client. The is the most effective but with effectiveness comes cost. Every one of these services I have seen charges a very large upfront fee and works entirely off
of referrals. This type of service is simply impossible to perform for $39 or even $49 a month.
Unfortunately, if you are unable to find someone in your area (preferably an individual) by way of referral through a friend, relative or professional contact, then I recommend you take
matters into your own hands and do it yourself. I realize most
consumers do not want to hear this but the good news is that it will almost always turn out to be the highest paid work you will ever do in your life. How high? How does $500 to
$2500 an
hour sound? I understand that's a bold claim but not one I am unable to back up.
If you're ever going to finance a first or second home (which everyone eventually should for the tax breaks) the difference between good credit and poor credit will affect your interest
rate. If you secure a $200,000 mortgage on a 30 year term and your interest rate is only 2% lower because of a high credit score, that 2% will save you $96,934.11 over the course of
the loan (just because you had better credit). Take that $96,934.11 and divide it by the 30 to 50 hours you may spend working on your credit situation and you'll quickly realize credit
restoration when done properly does not cost - it pays!
(END)
This is the end of our article
series for the "Credit Secrets Bible".
Order your copy now by clicking this
After all, you deserve it!
A Credit Repair Company
-by Terry Price
(C) Copyright Terry Price
All Rights Reserved
Have you ever wondered about those ads you see from companies and law firms which offer to fix your credit for a low monthly fee? People with credit problems often ask me when it
comes to improving their credit score whether they should hire a credit repair company or do it themselves? Unfortunately, there is no simple or universal answer to this question.
However, I will shed some light on the subject if you're in need of a little
enlightenment.
According to the Federal Trade Commission (FTC) "Everything a credit repair clinic can do for you legally you can do for yourself at little or no cost". While I agree with the FTC I also
understand some consumers do not have the time, patience (or knowledge)
to do the work themselves and the thought of "drive-thru-we-do-it-all-for- you-credit-repair" becomes very
appealing. After all, everything a mobile oil change service can do for me I can also do myself at little or no cost (but you won't find me changing the oil in my car this weekend!).
Although some things are better done yourself, only you can determine if doing your own credit restoration work will be one of them. This is why understanding both the advantages
and
limitations of a credit repair company and the structure from which it operates are VERY important.
REFERENCES: Any legitimate company or individual doing credit restoration work for consumers will be able to provide you with at least half a dozen references. If the company or
person is local you should be able to call these references. This is without
question the most important point of consideration when hiring a
professional to do the work for you.
If possible, I suggest you ask friends, family, relatives and
professional contacts if they know of someone who does credit restoration work as a side business. By far the highest percentage of successful stories I hear from consumers are
those which come from those who found a credit consultant via personal referral. I cannot stress this enough. It's the difference between going on a vacation with a close friend
instead of
a stranger.
CONTRACT: Unlike painting a house or putting in a driveway, credit restoration work (and results) are extremely broad. Therefore, the use of a contract is imperative. Most likely your
credit challenges didn't occur overnight and they won't be improved overnight either. A good contract protects you as well as the service provider. The contract should be easy to
understand without an Attorney and spell out the actual services which will be rendered as well as the service providers' limitations (i.e. they cannot guarantee the removal of any one
particular item but can guarantee an overall increase in score overtime).
MONTHLY FEE: One of the most critical elements which affects "how" a credit restoration company operates is determined by its' payment structure. One of the most common
payment structures of large companies or law firms doing credit restoration is that
of the monthly "auto-debit" fee. In this structure the consumer usually pays $49 to $99 up front and then a monthly fee of $39 to $49 per month. While there is an advantage to this
method (affordability) with it comes many disadvantages.
1.) The first disadvantage this structure creates is that it gives the
company absolutely no incentive to work quickly or aggressively on behalf of the consumer. In fact, the opposite is true. The longer they take the longer they will continue to collect
their
monthly fee! In most cases this structure leads to slow results over a very long period of time. Looking at it logically, this shouldn't come as a surprise.
2.) The other challenge within this structure is the actual amount of time, effort and resources which a company or law firm can reasonably allocate on a consumer's behalf.
Remember, any large business has a tremendous amount of overhead which quickly chews up most of that monthly fee. Out of that $39 to
$49 there are monthly expenses including but not limited to:
Advertising, Office Rent and Utilities, Employee Payroll and Taxes, Health Insurance, Phone Service, Office Supplies, Refunds, Computer Maintenance and Programming, Website
Administration, Office Supplies and let's not forget postage for mailing letters to creditors, collection agencies and credit bureaus. A much simpler way to think of this is by imagining
if you had a client paying you $39 a month; how much work would
you be willing to do?
3.) One of the biggest challenges credit repair companies charging low monthly fees run into is being forced to rely on the use of Automated "Boiler Plate" Dispute and
Correspondence
Letters. Boiler Plate Letters are simple form letters which are used for ALL consumers (one format fits all). Once set up in a computer program with the consumers' information they
are
"shot out" automatically based on the consumers needs (i.e. late pay, charge-off, judgment etc).
The problem here is that when a credit repair company has thousands of clients they are shooting these form letters out for, the creditors, collection agencies and credit bureaus can
take notice of these letters being used over and over and discover your
correspondence is coming from a third party (i.e. credit repair company or law firm) and in some cases ignore it or (worse yet) mark the dispute frivolous and flag your credit report. I
spoke with a man recently who was on the inside of a large credit repair
company who informed me they had an archive of over 10,000 boiler plate letters on file to avoid this problem. Of course, they charged customers by the month.
NON-DISCLOSURE OF METHODS: One of the most troubling issues with 95% of large credit repair firms (especially law firms) is their non-disclosure of dispute tactics and
methods. As a
consumer it is vital that you are made aware of the methods they are using in dealing with your creditors,collections and the credit bureaus. If the organization or law firm violates
laws or makes errors (I have witnessed both) you could be held liable for
their negligence. In addition, this can actually make your credit worse and create problems which are very difficult to clean up. Anyone doing credit restoration for you should disclose
"what" they are doing since you are paying for a service. If they won't, you better run the other way as they could be pouring gas on a blazing
camp fire.
LOCATED IN HOME STATE: This is one of the most overlooked keys to successful third party credit restoration which
consumers miss. It is absolutely vital when having someone else do your credit restoration work for you that they
operate within your home state. Here's why: if a credit repair company or law firm mails dispute letters or correspondence on your behalf from another state, that mail will be
postmarked from that state. If the credit bureau catches this they can (and in many cases will) mark the dispute as frivolous and flag your credit file.
It is known that many Credit Repair Companies and Law Firms will resort to or create a method to avoid and out of state postmark in order to get disputes postmarked from the
consumers' home state (potentially violating postal regulations). For example. If they are in NY and you are in CA they will first
have to mail your dispute letters inside an envelope from NY to CA. Once in CA someone opens the envelope and then mails your dispute letters from CA so they postmarked from
your home
state. I am not an expert on postal regulations but had one postal employee tell me the concept sounded extremely shady at best.
CUSTOMIZATION: It's for this reason that some of the most advanced forms of credit restoration are done completely
customized for the client and even (in many cases) by hand. The best credit restoration companies I've seen are usually run by one person or a small number of people and are
extremely
customized for each client. The is the most effective but with effectiveness comes cost. Every one of these services I have seen charges a very large upfront fee and works entirely off
of referrals. This type of service is simply impossible to perform for $39 or even $49 a month.
Unfortunately, if you are unable to find someone in your area (preferably an individual) by way of referral through a friend, relative or professional contact, then I recommend you take
matters into your own hands and do it yourself. I realize most
consumers do not want to hear this but the good news is that it will almost always turn out to be the highest paid work you will ever do in your life. How high? How does $500 to
$2500 an
hour sound? I understand that's a bold claim but not one I am unable to back up.
If you're ever going to finance a first or second home (which everyone eventually should for the tax breaks) the difference between good credit and poor credit will affect your interest
rate. If you secure a $200,000 mortgage on a 30 year term and your interest rate is only 2% lower because of a high credit score, that 2% will save you $96,934.11 over the course of
the loan (just because you had better credit). Take that $96,934.11 and divide it by the 30 to 50 hours you may spend working on your credit situation and you'll quickly realize credit
restoration when done properly does not cost - it pays!
(END)
This is the end of our article
series for the "Credit Secrets Bible".
Order your copy now by clicking this
After all, you deserve it!
Credit Secrets bible: The #1 Credit
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Don't even think of filing for bankruptcy
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Visit Credit Secrets Bible
Price: $67 Money back guarantee: 8 weeks
Restoration In America .
Don't even think of filing for bankruptcy
before you read this. You can Improve your
credit score without paying lawyers or credit
repair companies.
This is a well known ebook that over the
years many have tried to copy. Read articles
from the writer below, or
Visit Credit Secrets Bible
Price: $67 Money back guarantee: 8 weeks
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live. You can start shrinking your debt for
FREE if you choose, it's not about
bankruptcy, how to sneak out of paying your
bills, not about living on macaroni and
cheese, not about investment schemes or
advice, not increasing your income, NOT
anything illegal or immoral, and anyone in
the world can do this. They have applied for a
Patent on this one.
Visit Debt Free In 3
Price: $39.97
Money back guarantee: 60 days
Bonus: 5 , + high support
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Are you eligible for the IRS Offer in
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contains everything the IRS has ever said or
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frequently makes mistakes in assessing how
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retain a lawyer or CPA to help you file an
Offer in Compromise; and most of it could be
handled without paying a lawyer or CPA
thousands of dollars.
Visit Tax Debt Reduction Guide
Price: $19.95 Bonus: Free ebook: 'The
credit repair handbook".
Are you eligible for the IRS Offer in
Compromise program that erases 90-95% of
a taxpayer's debt forever and why you will
not hear about it from an IRS agent. You can
force the IRS to give you a copy of the file that
contains everything the IRS has ever said or
written about you. Learn why the IRS
frequently makes mistakes in assessing how
much money you owe them and correct their
mistakes. The law does not require that you
retain a lawyer or CPA to help you file an
Offer in Compromise; and most of it could be
handled without paying a lawyer or CPA
thousands of dollars.
Visit Tax Debt Reduction Guide
Price: $19.95 Bonus: Free ebook: 'The
credit repair handbook".
Don't even think of filing for bankruptcy before you read this!
Debts and bad credit
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