American Credit Repair: Everything U Need to Know About Raising Your Credit Score (American Real Estate)

385 Pages·2008·11.4 MB·English

by  Trevor Rhodes

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For Grammy and Gramps—
On behalf of Bennett, Brianna, Cameron, Jacob and Tyler
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T
his American Credit Repair volume from Everything U Need to Know...
(EUNTK)would not be possible without the support and assistance from the
following companies and individuals: The National Association of Credit Counseling,
Federal Debt Consolidation Services, AmerUSA Corporation (AmerUSA.net),
Ronald and Mary Rhodes, Marc and Terry Banning.
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Introduction............................................................................................................1
Chapter 1: The Basics of Credit Reporting, Part I: The Agencies and the Laws........ 3
Credit Reporting Agencies...................................................................... 4
The Fair Credit Reporting Act (FCRA).................................................. 5
The Fair and Accurate Credit Transactions Act (FACT Act)................. 9
Chapter 2: The Basics of Credit Reporting, Part II: The Data................................1 1
Where Does Credit Report Information Come From?.......................... 12
What Is a Credit Score and Why Should U Care?.................................1 4
Chapter 3: The Basics of Credit Reporting, Part III:
Who Is Entitled to See Your Credit File..............................................19
Permissible Purpose.............................................................................. 20
Employers............................................................................................. 33
Illegal Requests for Your Credit Report............................................... 34
Chapter 4: Your Credit Report: Getting a Free Copy — For Real!...........................3 7
AnnualCreditReport.com...................................................................... 38
Annual Credit Report by Mail or Phone............................................... 39
FTC Facts for Consumers Brochure......................................................4 2
Chapter 5: Understanding Your Credit Report: How to Read the Big Three..............4 9
Personal Information............................................................................. 50
Employment Information...................................................................... 50
viii
American Credit Repair
Scoring (Credit Score).......................................................................... 51
Public Records...................................................................................... 51
Collections............................................................................................ 52
Revolving Accounts.............................................................................. 52
Installment Accounts.............................................................................5 3
Mortgage Accounts............................................................................... 53
Inquiries................................................................................................ 53
Chapter 6: Repairing Your Credit Report, Part I: The Dispute Process....................5 5
FCRA Section 611................................................................................ 56
Inaccurate or Incomplete Information...................................................6 6
FCRA Section 605................................................................................ 69
Outdated Negative Information.............................................................7 4
Negative Items That Do Not Belong to You.........................................7. 6
Chapter 7: Repairing Your Credit Report, Part II: The Dispute Letter.....................7 9
Verification Forms Used by CRAs....................................................... 80
Fill-In Dispute Forms............................................................................ 82
Picking Your Battles............................................................................. 83
Writing Your Own Dispute Letter........................................................ 84
Sample Dispute Letters......................................................................... 85
Sending Your Dispute Letter................................................................ 90
What’s Included in a CRA’s Response to a Dispute.............................9 1
Chapter 8: Repairing Your Credit Report, Part III:
When Things Don’t Go Your Way........................................................93
Sending a Second Dispute Letter.......................................................... 94
100-Word Consumer Statement............................................................ 97
Speak to a Professional If Necessary.................................................... 99
The Reality of Suing a Credit Reporting Agency............................... 100
ix
Table of Contents
Chapter 9: Collection Agencies: How to Deal with These Bad Guys.......................1 03
How a Collection Agency Operates.................................................... 104
The Fair Debt Collection Practices Act (FDCPA).............................. 104
Validation of the Alleged Debt............................................................1 09
Drafting a Verification Request Letter................................................1 10
Stop Calling Me...................................................................................1 16
Stop Calling My Employer..................................................................1 18
How to Settle with a Collection Agency............................................. 120
Chapter 10: How to Deal with Secured Accounts:
Plus Student Loans & Tax Liens....................................................131
Repossession....................................................................................... 132
Foreclosure.......................................................................................... 134
Student Loans...................................................................................... 136
Tax Liens.............................................................................................1 38
Chapter 11: Bankruptcy: The Pros and Cons of Filing.............................………...1 41
The Term “Bankruptcy”......................................................................1 42
Chapters 7, 11 and 13.......................................................................... 142
Hiring a Bankruptcy Attorney.............................................................1 45
How Bankruptcy Affects Your Credit Report.....................................1 45
Chapter 12: Raising Your Credit Score in 10 Days:
Fast Fixes When Applying for a Mortgage.......................................1 47
The Rapid Re-Score............................................................................ 148
Determining the Factors That Are Affecting You Score.....................1. 49
Assembling Your Evidence.................................................................1 50
Fast Fixes That Do Not Require Money..............................................1 51
Fast Fixes That Require Money...........................................................1 56