Erasing Bad Credit Manual 0402

8/8/2019 Erasing Bad Credit Manual 0402

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Get you credit back on track

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keBusinesspower 2000,2001 www.ErasingBadCredit.com

Revision 04/02


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Table of Contents

TABLE OF CONTENTS.......................................................................................................2

PART I ....................................................................................................................................7

WHAT IS A CREDIT BUREAU?........................................................................................7

HOW DO THE CREDIT BUREAUS OBTAIN INFORMATION?.................................9

HOW LONG DO THE CREDIT BUREAUS KEEP MY CREDIT INFORMATION?.9

WHY SHOULD I CHECK MY CREDIT REPORT?........................................................9

HOW DOES THE CREDIT REPORTING SYSTEM WORK?.....................................10

HOW HAS THE COMPUTER AGE AFFECTED THE CREDIT REPORTING

PROCESS? ...........................................................................................................................10

WHAT ARE THE LAWS GOVERNING CREDIT BUREAUS?...................................11

HOW DOES INFORMATION GET INTO A CREDIT REPORT? ..............................12

DO I HAVE THE RIGHT TO KNOW WHAT IS IN MY CREDIT FILE?..................13

HOW CAN I FIND OUT WHAT INFORMATION IS IN MY CREDIT FILE?..........15

WHO MAY OBTAIN A COPY OF MY CREDIT FILE?...............................................17

HOW DO ERRORS OCCUR AND HOW FREQUENTLY?..........................................18

CAN I REMOVE ACCURATE CREDIT INFORMATION FROM MY CREDIT

REPORT?.............................................................................................................................18

HOW CAN I ADD POSITIVE DATA TO MY CREDIT REPORT?.............................19

WHAT SHOULD MY GOALS BE IN CREDIT RESTORATION?..............................20

SHOULD I APPLY FOR CREDIT WHILE IN THE RESTORATION PROCESS? ..20

HOW LONG SHOULD THE CREDIT RESTORATION PROCESS TAKE?.............21

WHY DOES THE CREDIT RESTORATION PROCESS TAKE SO LONG? ............21

HOW MANY ROUNDS OF DISPUTES SHOULD I EXPECT TO UNDERTAKE? ..22


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WHAT CAN I EXPECT FROM THE BUREAUS AS I WORK THROUGH THERESTORATION PROCESS?.............................................................................................22

ARE THE CREDIT REPORTS ALL THE SAME? ........................................................23

WHAT'S THE WORST THING THAT CAN APPEAR ON MY CREDIT REPORT?................................................................................................................................................23

HOW TO READ AND INTERPRET YOUR CREDIT REPORT .................................24

What is an inquiry? ....................................................................................................24What is a Revolving Account?...................................................................................25

What is an Installment Account? ...............................................................................25

EQUIFAX ..................................................................................................................26TRANS UNION.........................................................................................................30

TRW - NARRATIVE.................................................................................................34

TRW - BLUE/RED CODED .....................................................................................36

WHAT ARE THE NOTATIONS ON MY CREDIT REPORT SUPPOSED TO MEANTO ME?.................................................................................................................................39

WHAT IF THE CREDIT REPORT IS NOT TRW, TRANS UNION OR EQUIFAX?

................................................................................................................................................44

PART II.................................................................................................................................45

STRATEGIES YOU MUST KNOW BEFORE YOU EMBARK ...............................45

SIMPLE STEP BY STEP INSTRUCTIONS TO REPAIR YOUR CREDIT................46

FEDERAL LAWS ARE IN YOUR FAVOR!....................................................................48

THE EASY ITEMS TO REMOVE....................................................................................50

AND THE HARD ONES ARE: ..........................................................................................51

DETAILED STEP-BY-STEP ACTIONS:.........................................................................51

Step 1: Get your 3 credit report and identify the derogatory items........................51

Step 2: Write and send your dispute letters............................................................52

Step 3: After receiving your updated files (30 or so days) review them and preparefor the next round. ..................................................................................................52

Important:...............................................................................................................53

Step 4: Removing items that were verified by the Credit Bureaus........................53Step 5: So, youve done all the steps above and the creditor has supplied you with

proof. ......................................................................................................................55

Step 6: No money to settle No problem ..............................................................56

CCCS: CONSUMER CREDIT COUNSELING SERVICE ...............................................57


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Q. WHAT IS SECURED DEBT? .......................................................................................59

Q. WHAT IS AN UNSECURED DEBT?...........................................................................59

Q. WHEN DOES A SECURED DEBT BECOME AN UNSECURED DEBT?.............59

BEWARE..........................................................................................................................60

File Segregation: ................................................................................................60

REASONS TO DISPUTE DATA .......................................................................................64

HOW DO I BUILD CREDIT?............................................................................................65

WHAT IF THE CREDIT BUREAU REFUSES TO ACCEPT MY DISPUTE SAYING

THAT I'M USING A CREDIT REPAIR CLINIC?.........................................................66

WHAT ARE THE PRIMARY REASONS FOR THE DENIAL OF CREDIT? ...........66

WHAT IF YOU DON'T GET ANY RESULTS? ..............................................................67

BONUS #1 .............................................................................................................................69

TEMPLATE LETTERS TO DISPUTE WITH CREDITORS AND CREDIT BUREAUS.........................691. General Dispute To Collection Agency .............................................................70

2. Dispute of Collections........................................................................................71

3. Dispute to Collection Agency ............................................................................724. Negotiating a Settlement ....................................................................................73

5. Negotiating a Settlement with Utility Companies..............................................74

6. Negotiating a Settlement with Creditors............................................................75

7. After No Response from a Credit Bureau..........................................................768. Disputing Specific Items and Inquiries ..............................................................77

9. Request Reinvestigation of Items that are Still Showing on report ...................78

10. Answer Letter to Credit Bureau's Request for More Information..................79

BONUS #2 .............................................................................................................................80

How to speak with the Creditors Representatives ....................................................80

BONUS #3 .............................................................................................................................81

THE FAIR CREDIT REPORTING ACT .........................................................................81

BONUS #4 .............................................................................................................................90Your Credit Score - FREE .........................................................................................90


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The following techniques will help correct your credit rating and

should be undertaken with all Credit Bureaus.

In this book you will learn the ways to remove negative items from

your credit file.

These methods are sometimes referred to as "Credit Repair". These

are the exact same methods credit repair clinics and attorneys

charge up to $3,500 to perform. Since these so called clinics and

attorneys do not always carryout those procedures correctly,

consumers have been taken for millions of dollars over the pastyears.

I will also show you all the jealously guarded secrets by the financial

and credit lending institutions on how to outsmart creditors who are

damaging your credit!

In the first part of the book (PART I) you will get to understand who

are the credit bureaus, how they operate, why they are not on your

side and what the laws governing their conduct are, as well as your

rights.

In the second section (PART II) you will get step-by-step instructions

on removing negative items from your credit.

Some credit blemishes will be easier to remove than others. The

simple blemishes will be removed fairly quickly. As a result, your

credit score will immediately start to improve.


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Other blemishes will be more difficult to remove. But, if you are truly

dedicated to repairing your credit report, you must find patience and

persistence to go thru the process completely. I will show you all the

tricks for removing those difficult blemishes.

The methods listed in this book were put to use over the last 18

months and they do work.

Put them to use for yourself and Good Luck. You deserve good

credit!

BenBenBenBen


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PART I

What is a credit bureau?

A credit bureau, or credit repository, is an entity that gathers information

about consumers' credit histories.

Your credit history/report includes information regarding the following

items:

Identity information such as your name, address, social security

number, spouse and date of birth

Payment habits such as how promptly you have made payments to

previous creditors

Public records such as records of arrests, indictments, convictions,

lawsuits, tax liens, marriage, bankruptcies, and court judgments.

Debts

Other relevant credit data

Information concerning your current employment such as the

position you hold, length of your employment, and possibly your

income Information about your personal history such as the number of

dependents you have, your previous addresses and information

about your previous employment.

Credit bureaus sell credit reports to credit grantors, such as banks, finance

companies, and retailers. Credit grantors use credit reports to determine

whether or not a potential borrower is creditworthy.

There are three major credit bureaus in the United States:

Experian

Equifax

Trans Union


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These three bureaus provide nationwide coverage of consumer credit

information.

The credit bureaus are a for-profit system that generates billions of

dollars in revenue each year from selling copies of credit reports to

creditors and mailing lists. Transunion made 1.5 BILLION dollars last

year.

It is essential to understand that Credit Bureaus are

nothing more than record keepers.

Simply put, they keep a record of who has given you credit, when they

gave you credit, how much credit you are given and whether or not youpaid it back on time.

When you want to obtain credit cards, loans, financing for a car or home,

leases, apartments and sometimes even employment, the lender or bank

will check your credit to see your financial history.

Credit Bureaus are paid by the people w ho request your

credit file.

Credit Bureaus are not run by banks, police or government, and they have

no legal power over you. So don't be intimidated by them.

They are the Credit Bureaus because they own large computer systems

capable of storing credit information on everyone in the United States.

However, because of the tremendous amounts of information on their

computers, their method of storing information is very basic and containsnumerous errors.

Since the bureaus have made so many errors in the past, all Federal Laws

regarding credit information are very much in your favor.


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How do the credit bureaus obtain information?

Credit bureaus obtain identification and credit information from credit

grantors, such as banks, retailers, and collection agencies.

Bureaus obtain monetary-related public record information directly from

the court systems.

How long do the credit bureaus keep my creditinformation?

The credit bureaus keep your personal credit history for a period ofapproximately ten years.

Closed or Inactive Accounts - 10 years from the date of last activity.

Derogatory Accounts - 7 years from the date of originaldelinquency.

Public Records - 7 years from the date of payment or indefinitely ifthe Public Record is an unpaid tax lien.

Chapter 7 Bankruptcies - 10 years from date filed.

Why should I check my credit report?

The information on your credit report can be used to determine whether or

not you are able to:

Buy a new car Rent an apartment

Get a loan

Qualify for other credit.

Obtain special employment


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By monitoring your personal credit report, you'll stay informed about your

current credit rating.. You'll know which businesses and credit grantors

have requested to view your credit report, which new accounts have been

activated in your name, and whether or not derogatory information has

been added.

Checking your credit also allows you to be alerted to information that may

have negative, long-term effects on your credit historysuch as excessive

inquires and possible fraud.

By checking your credit report, you can discover possible inaccuracies in

your credit history. Correcting inaccuracies ensures that your credit report

is current and correct, which in turn helps speed the processing of yourcredit requests.

How does the credit reporting system work?

The principles underlying the Fair Credit Reporting Act (FCRA) are to

ensure that this country's consumer reporting system functions fairly,

accurately and efficiently without unwarranted intrusions into consumerprivacy. These principles are even more important, in the face of

technology and computers that can provide instant access to vast

amounts of credit relatedinformation on consumers. (See end of report for

the full list of the FCRA).

How has the computer age affected the creditreporting process?

Where once a credit grantor might have offered credit based on the

application of a handful of credit-related criteria, credit reporting today

often applies dozens of interrelated criteria. Although the creditor who

views your credit report may not see a paper copy of the credit file, the


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amount of information that he knows about you is almost limitless.

What are the laws governing credit bureaus?

Congress passed the Fair Credit Reporting Act (FCRA) in 1972 to curb the

abuses of the credit reporting bureaus. The FCRA is the governing

federal law on the issue of credit reporting.

The Fair Credit Reporting Act helps consumers promote and use their

right to make changes to credit reports. It is a requirement, under section

1681e, that:

(b) Whenever a consumer reporting agency prepares a

consumer report, it shall follow reasonable procedures to

assure maximum possible accuracy of the information

concerning the individual about whom the report relates.

Further, the FCRA provides a procedure in case of disputed accuracy,

under section 1681 i whereby a consumer can demand that an

investigation be made into the completeness or accuracy of any

information in a credit report. If the status of the information cannot bedetermined, the data must be removed or corrected. The FCRA states:

(a) If the completeness or accuracy of any item of

information contained in his file is disputed by a consumer,

and such dispute is directly conveyed to the consumer

reporting agency by the consumer, the consumer reporting

agency shall within a reasonable period of time reinvestigate

and record the current status of that information unless it has

reasonable grounds to believe that the dispute by the

consumer is frivolous or irrelevant. If after such

reinvestigation such information is found to be inaccurate or

can no longer be verified, the consumer reporting agency

shall promptly delete such information. The presence of


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contradictory information in the consumer's file does not in

and of itself constitute reasonable grounds for believing the

dispute is frivolous or irrelevant.

You have the right under the FCRA to remedy all file information that is

irrelevant, improperly utilized, inaccurate, incomplete, misleading or does

not reflect your creditworthiness, credit standing or credit capacity.

REMEMBER: THE PRACTICE OF CHALLENGING CREDIT DATA AND

SECURING CREDITOR-BASED TRADE LINE DELETIONS ARE

WHOLLY WITHIN THE PURVIEW OF THE LAW AND ARE THE

RIGHTS OF ALL CONSUMERS.

How does information get into a credit report?

When you enter into most credit relationships, you give the creditor the

right to provide information about you and your bill paying history to any

credit bureau by your signing the credit application. The information also

comes from public record sources such as tax and court records, your

employer (if a credit report is used for employment purposes), utility

companies and debt collectors.

Your creditors usually report information about you to the bureaus on a

monthly basis.

One out of every three(credit) reports containserrors

Attorney General of New York


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This information contains details about how much you owe, your payment

schedule, the payment history and personal information including address,

phone number, date of birth, Social Security Number, spouse name and

employer.

Do I have the right to know what is in my credit file?

Consumers have the right to know what is in their credit files at credit

bureaus under the Fair Credit Reporting Act. Consumers are not,

however, entitled to obtain the actual report. Most credit bureaus will

furnish copies.

What are the addresses and phone numbers of the big-

three credit bureaus?

Equifax Information Services, LLC

P.O. Box 740241Atlanta, GA 30374

1-800-685-1111

Trans Union

See below for address800-888-4213

Experian

National Consumer Assistance Center

PO Box 2002

Allen, TX 75013

888 EXPERIAN (888 397 3742).


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Mail your dispute to:

TransUnionP.O. Box 2000Chester, PA

19022

TransUnionP.O. Box 34012Fullerton, CA

92831

TransUnion de PuertoRicoConsumer Relations

P.O. Box 13968Santurce StationSan Juan, PR00907-3968

If you live in:

Alabama

America Otherthan Canada

Arkansas

Canada

Connecticut

WashingtonD.C.

Delaware

Europe,Middle East

FederatedState ofMicronesia

Florida

Georgia

Illinois

Indiana

Iowa

Kentucky

Louisiana

Maine

Marshall

Islands

Maryland

Massachusetts

Michigan

Minnesota

Alaska

AmericanSamoa

Arizona

California

Canal Zone

Colorado

Guam

Hawaii

Idaho

Kansas

Mexico

Montana

Nebraska

Nevada

New Mexico

North Dakota

Oklahoma

Oregon

Pacific

Palau

South Dakota

Texas

Utah

Washington

Wyoming

Puerto


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Mississippi

Missouri

NewHampshire

New Jersey

New York

North Carolina

North MarianaIslands

Ohio

Pennsylvania

Rhode Island

South Carolina

Tennessee

Vermont

Virgin Islands

Virginia

West Virginia

Wisconsin

How can I find out what Information is in my creditfile?

You are entitled under the Fair Credit Reporting Act to know the nature

and substance of all information in your credit file. The credit bureaus

comply with the law by giving consumers a written copy of the file,

sometimes for a fee.

If you applied for credit and were rejected, or you were denied insurance

or the cost of the insurance is increased based on information contained in

a credit report, the creditor or insurers denying you credit or insurance is

required by law to supply you with the name and address of the credit

bureau(s) who supplied the report(s).


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The credit bureau is required to disclose the information they have about

you free of charge, if you ask for the disclosure within 30 days (or 60 days

by federal order if TRW, Trans Union or Equifax) of being notified of your

credit or insurance denial. You can get in touch with the credit bureau,

either in person, by letter, or by telephone, to learn what is in your file.

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REMEMBER: A CREDIT BUREAU MAY CHARGE YOU FOR YOUR

CREDIT REPORT IF YOU HAVE NOT BEEN DENIED CREDIT IN THE

LAST 60 DAYS. A COMPLIMENTARY COPY OF YOUR CREDIT

REPORT IS AT THE DISCRETION OF THE CREDIT BUREAU!

Who may obtain a copy of my credit file?

Only someone with permissible purpose under the Fair Credit Reporting

Act may see your credit file. Your file may be disclosed only to someone

who the credit bureau believes will use the information for one or more of

the following purposes:

Granting you credit, reviewing your account, or collecting on youraccount

Considering you for possible employment

Considering you for an insurance policy;

Deciding whether or not you are eligible for a license, or other

government related benefits, which by law require consideration of

your financial responsibility or status (A credit bureau may also

disclose "identifying" information, limited to your name, address,

place of employment, and former addresses and places of

employment, to a government agency

Furnishing information for a business transaction between you and

another person, such as renting an apartment, as long as the

person requesting the report has a legitimate business need for the

information


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Responding to a court order; and

Responding to an Internal Revenue Service subpoena. The IRS

must notify you of the request and give you time to challenge the

subpoena.

Your credit file may also be disclosed to someone if you give your written

permission to the credit bureau to disclose your file to that person.

REMEMBER: YOU DO NOT HAVE TO GIVE YOUR PERMISSION FOR

ANOTHER PERSON OR COMPANY TO OBTAIN YOUR CREDIT

REPORT!!!

How do errors occur and how frequently?

Depending on the source of your statistics, estimates of credit bureaus

errors run as high 90%. The Attorney General of New York State has

estimated that credit bureau errors are in at least one-third of all reports,

the United States Congress has estimated that errors exist in at least one-

half of all reports, a Consumers Union study found errors in 40% of credit

files and the Charles Givens Organization conducted a study in which

90% of the credit reports reviewed contained errors.

REMEMBER: EVEN ONE MINOR MISTAKE CAN CAUSE YOU TO BE

DENIED CREDIT!!!

Can I remove accurate credit information from mycredit report?

Yes, your credit report is intended to convey your overall

creditworthiness. It is not a verbatim transcript of your bill paying habits

nor does your creditor have to report any data about your account(s). The

Fair Credit Reporting Act is clear in its requirements that information must


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be deleted from a credit report even if it is accurate, if the information does

not properly convey your overall creditworthiness.

REMEMBER: THERE IS NO LAW THAT REQUIRES CREDIT OR BILL

PAYING INFORMATION TO BE REPORTED IN YOUR CREDIT

REPORT EXCEPT DELINQUENT CHILD SUPPORT PAYMENTS!I!

How can I add positive data to my credit report?

The purpose of adding positive data to your credit report is to build a

stronger baseof positive data and to increase the overall creditworthiness

of your report.

Equifax will add positive trade references for a small fee (about $10).

The sources must be established and credible for Equifax to accept the

trade line, For example, if a consumer is a renter of a dwelling or property

and has made timely payments, add the reference to the credit report.

Contact the landlord to verify the positive status and then write to Equifax

to add the entry.

Not all creditors report credit data. Consistent with the provisions of the

ECOA, not all creditors report data because there is no requirement to do

so under the law. This fact can harm or help a consumer.

If the consumer has a good credit history with a source that is not currently

reporting or has not updated the trade line, contact the creditor directly in

writing and request that the positive data be added to the outgoing credit

information.

Establish secured credit. In the past few years many of the traditional

creditors have started to issue secured credit lines, which usually lead

directly into true credit in about one year.


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If you maintain a positive payment pattern without "maxing" out the card,

the creditors will take someone with marginal creditworthiness and offer

that consumer a true line of credit. The line may be nominal in value and

have a high interest rate, but any credit is good credit when trying to get

back into the system.

17 months ago I started with a $500 secured Visa. I made timely

payments and today the same creditor has issued me an unsecured line

on the same card of $8,600.

What should my goals be in credit restoration?

Each person has different needs for their credit report. Because a credit

report can be used for granting credit, insurance, employment or

government benefit you should define why you want or need the report as

part of the restoration plan.

Set incremental goals such as paying off one bill at a time and focusing

your efforts on the most negative credit report information.

REMEMBER: YOUR CREDIT REPORT IS ONLY ONE PART OF THECREDIT APPLICATION. FOCUS ON THE POSITIVE NOT THE

NEGATIVE AS YOU WORK TO RESTORE YOUR CREDIT!!!

Should I apply for credit while in the restorationprocess?

NO.Each time you apply for credit an inquiry is recorded on your credit

report. Toomany inquiries can, in and of itself, be a cause for you to be

denied credit.

Only when you are finished to your satisfaction, with the credit restoration

process, then you should apply for credit. Take the time to ask a potential


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creditor for the criteria used in making credit decisions to determine, in

advance, if you will qualify for their credit.

How long should the credit restoration processtake?

The restoration of your credit report is not an overnight project. You

should reasonably expect this process to take somewhere between four

and eight months, perhaps even a year. The delaying tactics and

obstacles of the credit bureaus will be used on an on-going basis to

prevent your restoration of the credit report.

REMEMBER: YOUR CREDIT REPORT HAS BEEN DEVELOPED

OVER MANY YEARS AND CORRECTING IT MAY TAKE SOME

TIME. BE PATIENT!l!

Why does the credit restoration process take so

long?

The Fair Credit Reporting Act requires that the credit bureaus conduct

their investigations of disputed information in a reasonable period of time.

Recent court orders and settlements give TRW, Trans Union and Equifax

only 30 days in which to complete their investigations of disputed

information.

REMEMBER: IF THE CREDIT BUREAU DOES NOT COMPLETE

ITS REINVESTIGATION OF DISPUTED INFORMATION WITHIN

30 DAYS, BY LAW IT MUST DELETE THE DISPUTED DATA

FROM YOUR CREDIT FILE!!!


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How many rounds of disputes should I expect toundertake?

It is my experience that a minimum of three rounds of disputes are

usually needed to bring your credit report back into a good credit position.

This estimate will vary depending on the quantity and level of information

in your individual credit report. A round is defined as one dispute to each

of the three bureaus.

REMEMBER: BE PERSISTENT IN THE CREDIT IMPROVEMENT

PROCESS AND TAKE THE TIME NECESSARY TO DO THE JOB

PROPERLY!!!

What can I expect from the bureaus as I workthrough the restoration process?

I have prepared samples of the most frequent credit bureau

correspondence and the appropriate responses for your use. Many of the

communications from the bureaus are efforts to stall your dispute. Don't

expect the bureaus to help you in clearing up your credit. The credit

bureaus make their money selling negative information to creditors, debt

collectors, lawyers and others.

REMEMBER: DON'T GIVE THE CREDIT BUREAUS ANY MORE THAN

THE MINIMUM POSSIBLE INFORMATION. YOU ARE NOT THEIR

EMPLOYEE AND YOU DO NOT RECEIVE COMPENSATION FOR

HELPING THEM DO THE WORK!l!

Credit bureaus can sell information about youwithout your permission


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Are the credit reports all the same?

Your credit report from TRW, Equifax and Trans Union will all appear

differently and contain different data. Because these three companies

each have their own databases and do not regularly share data, what you

read in one report may not resemble what you find on another report.

REMEMBER: JUST BECAUSE YOU HAVE CLEARED UP

INFORMATION ON ONE CREDIT REPORT DOES NOT MEAN THAT IT

HAS BEEN DONE BY ALL THREE MAJOR BUREAUS!!

What's the worst thing that can appear on my creditreport?

There are basically ten things that look the worst on your credit report.

Here they are, listed from the best to the worst:

1. Credit inquiries

2. Credit rejections

3. Late payments

4. Past due and unpaid payments

5. Court judgments

6. Collections

7. Loan defaults

8. Repossession

9. Foreclosure

10. Bankruptcy.


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How to read and interpret your credit report

Each of the three major bureaus uses a different reporting form and

format. The descriptions below correspond to the bureau indicated at the

top of each description. Read the description while reviewing your report

directly. Reading your credit report without the description is confusing

and may cause you to not fully understand the depth of the data about you

in your credit file.

What is an inquiry?

An inquiry occurs when an entity requests a copy of your credit report.

These inquiries can be made by credit-granting organizations, such asbanks and retail stores, when you are applying for credit. Other inquiries,

from requestors such as insurance companies, potential employers, or

rental housing agencies, can be made after you have given the requestor

your consent. The entity's name will appear on your credit report, allowing

you to monitor who accessed your credit history. When you personally

check your credit report, the inquiry that is recorded will NOT adversely

affect your credit standing.

What is a Public Record?

Not all personal information is private including Public Records. All

federal, state, and county courts make certain information public. This

includes information about legal matters affecting your credit. It works like

this: the courts record legal information, make it public, put it on your credit

report, and it becomes a "Public Record." The most common types of

Public Records include:

Judgments against you in civil actions

State or federal tax liens

Bankruptcies


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Public Records stay on your credit report for seven years. If the Public

Record is a Chapter 7 Bankruptcy, it will stay on your credit report for ten

years. If you have a Public Record on your credit report, you can take

steps to ensure that you receive credit under the best possible terms. The

most important step is to make timely payments on your Public Records.

Set a goal for yourself: Aim to have your Public Records paid-in-full by a

certain number of months or years. By sticking to your payment plan,

youll prove to potential creditors that you are a creditworthy consumer.

What is a Revolving Account?

Revolving Accounts have open terms and varying payments. This means

that your monthly payments will vary depending on the balance of the

account. Examples of revolving accounts include all major credit cards

and credit cards from department stores.

Facts about Revolving Accounts:

When you open a revolving account, such as a credit card account,

you are given a maximum amount that you can charge--a limit.

Its up to you how much of your limit you will spend.

The amount that you owe will change each month, depending on

how much of your limit you have charged.

What is an Installment Account?

Installment Accounts have fixed terms with regular payments. If youve

ever had a car loan, student loan, home loan, or personal loan, you knowwhat were talking about. Lets say your car payment is $300 per month

this means that each month you pay the $300 installment.

Facts about Installment Accounts:


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You owe a certain amount of money.

You have to pay back a set amount of that money each month and

this set amount does not change.

You also have a certain amount of time to pay off the loan.

EQUIFAX

1) All information appearing above the line reading "credit history"

is identification information. Moving below the "credit history"

line is the substantive information about your credit.

2) Read each trade line from left to right. The first item is the"company name". This indicates who the creditor is that is

reporting data about your to Equifax. The next item is the

account number assigned by the creditor to the account. This

number may not be the same as the account number in your

records due to scrambling for privacy/security reasons or

creditor added numbers to segregate files by creditor office or

region.

3) The next item is "whose account". The code in this entry

corresponds to your involvement with the account. For example

the letter "S" indicates that you are an authorized user of the

account; the letter "J" indicates that this is a joint account and

that you share liability on the debt; the letter "I" shows that it is

your individual account and that you are solely liable for its

repayment; the letter "T" indicates that your involvement with

the account is terminated and "U" shows that the bureaus does

not know your relationship with the account.

4) The next column "Date Opened" is the date on which the

account was opened. This date may be different than your

records due to refinancing, creditor assignment of accounts,

company mergers or other creditor based activity.


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5) The next item "months reviewed" indicates the period of time that

the Equifax records cover. For example, if the account was

reviewed for 12 months, the credit data reflects only one year of

payment history.

6) The next column called "date of last activity" is one of the most

important parts of the trade line. The "date of last activity" is the

starting point from where the bureaus measure the seven years

that information may remain on your credit report. The date of

last activity is properly measured from the date when an

account went to collection, was charged to profit and loss (write-

off) or became delinquent.

7) The "high credit" column gives you the highest amount of credit

you have used on the account. This amount may be higher

than your credit limit.

8) The column shown as "terms" indicates the monthly payment on

the account. For an installment debt, the terms indicates the

fixed monthly payment that you agreed to in your contract. For

a revolving debt, like gasoline cards, Visa or MasterCard, the

amount is the minimum monthly payment. Most revolving credit

cards have monthly payments approximating 1/36th of the total

debt.

9) The next item shown as "balance" provides you with the amount

outstanding on the account. This may not reflect the actual debt

as of the date of the report, but indicates the balance

outstanding as of the date the information was provided to thecredit bureau.

10) The "past due" column shows the total amount of your account

balance that is delinquent, if any, as of the time the information

was reported to the bureau.


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11) The next column "STATUS" is the most important information in

the credit report. This item shows the actual rating of the entire

trade line. To begin, the status item will start with a letter. The

letter "R" stands for revolving, the letter "I" stands for

installment, the letter "U" indicates unspecified and "O" stands

for open. After the letter is a number indicating the manner of

payment for the account. The number "1" indicates timely

payment. The number"2" indicates that the account was paid

late but not more than 60 days past due. The number "3"

indicates that the account was paid late more than 60 days but

fewer than 90 days. The number "4" indicates that the account

was paid late more than 90 days but fewer than 120 days. Thenumber "5" indicates that the account was paid but more than

120 days late.

An account status with the number "8" indicates some form of

repossession activity. The number "9" stands for some form of

bad debt; either a charge off to profit and loss by the creditor or

referred for collection.

Reading the status codes from 1 to 9 provides you with a scale

of the relative detriment shown by each item. Starting with "1",

the best rating any item can have, going to "9", the absolute

worst rating available for any item, you can judge just how good

or bad any particular trade line is rated.

12) The final column "date reported" gives you the date on which

the information for the trade line was provided to Equifax.

13) Moving to the next line of the item, you will find the payment

status of the account. The indication "closed account" indicates

that the account is no longer open and that your relationship

with this account is terminated.


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14) The designation "prior paying history" gives you the details of

how your payments were made. Again, from left to right, the

space between the parentheses after the "30' indicates how

many payments were received 30 days late. The space

between the parentheses after the "60" indicates how many

payments were received 60 days late. The space between the

parentheses after the "90" indicates how many payments were

received 90 days late during the months reviewed.

15) The dates immediately after the 30-60-90-payment history

indicate the months on which the payment(s) were late.

16) Moving to the next line of the item, if any, you will find notationsabout the account.

17) Reading further down the report will appear collection and

public record information may appear. For collections the data

should tell you what the collection is for, the amount of the debt,

when the debt occurred, to whom the debt was referred for

collection, when the debt was referred for collection and the

account number, if any, given to the debt by the collection

agency.

According to the credit bureaus' lowest figure for creditreport errors, more than 13 million people fall victim to themistakes of the bureaus each year


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TRANS UNION

1) Reading from left to right; the first item of information reported

under "subscriber name" is the creditor or supplier of

information.

2) The next item is the Trans Union code for the subscriber. This is

an internal reference for Trans Union and does not need to be

included in your disputes.

3) The next item "date opened" is the date on which the account

was opened. This date may be different than your records due

to refinancing, creditor assignment of accounts, companymergers or other creditor based activity.

4) The "high credit" column gives you the highest amount of credit

you have used on the account. This amount may be higher

than your credit limit.

5) The next column provides the "date verified". This data is the

date on which Trans Union either received the data from the

creditor or the date on which Trans Union verified the data with

the creditor. The letter appearing immediately after the "date

verified" will indicate the meaning of the date. For example, the

letter "A" means that the data was entered in your file through

an automated transfer. This is simply the monthly reporting of

the account information by computer. The letter "V" means that

the data was verified as accurate with the creditor on that date.

The letter "M" indicates that the data was manually frozen on

that date.

6) The next item shown as "balance owing" provides you with the

amount outstanding on the account. This may not reflect the

actual debt as of the date of the report, but indicates the

balance outstanding as of the date the information was provided


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to the credit bureau.

7) The "amount past due" column shows the total amount of your

account balance that is delinquent, if any, as of the time the

information was reported to the bureau.

8) The "payment pattern" column is one of the most confusing parts

of the credit report. When this field is filled in, it indicates the

payments to the account for the last 24 months; the first 12

months in the top row and the second 12 months immediately

below in the next row.

The numbers in the "payment pattern" field range from 1 to 5 orthe letter "X". The number "1" indicates timely payment. The

number "2" indicates that the account was paid late but not

more than 60 days past due. The number "3" indicates that the

account was paid late more than 60 days but less than 90 days.

The number "4" indicates that the account was paid late more

than 90 days but less than 120 days. The number "5" indicates

that the account was paid but more than 120 days late. The

letter "X" indicates that no transactions were reported for that

month.

Immediately below the second row of the "payment pattern"field, you will find 4 sets of numbers. Reading from left to right,

the first number indicates the total number of months that the

account has been reviewed. The next numbers indicate

respectively the quantity of payments more than 30 days late,

60 days late and 90+ days late during the months reviewed.

Credit Bureaus:

Public Enemy #1U.S. PIRG


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9) The next column, to the far right with the heading "TYPE

ACCOUNT & MOP", is the most important information in the

credit report. This item shows the actual rating of the entire

trade line. To begin, the status item will start with a letter. The

letter "R" stands for revolving, the letter "l" stands for

installment, the letter "U" indicates unspecified and "O" stands

for open. After the letter is a number indicating the manner of

payment for the account. The number "1" indicates timely

payment. The number "2" indicates that the account was paid

late but not more than 60 days past due. The number "3"


less than 90 days. The number "4" indicates that the accountwas paid late more than 90 days but less than 120 days. The

number "5" indicates that the account was paid but more than

120 days late.

An account status with the number "8" indicates some form of

repossession activity. The number "9" stands for some form of

bad debt; either a charge off to profit and loss or referred for

collection. The letter following the number designates the

current status of the item.

Reading the status codes from 1 to 9 provides you with a scaleof the relative detriment shown by each item. Starting with "1",

the best rating any item can have, going to "9", the absolute

worst rating available for any item, you can judge just how good

or bad any particular trade line is rated.

44% OF COMPLAINTS (ABOUT CREDIT BUREAU ERRORS) WEREABOUT SOMEONE ELSE'S DATA MIXED IN WITH THE CONSUMER'SREPORT...64% CONCERNED TOTAL STRANGERS

U. S. PIRG


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10) Moving to the next line you will find the account number given

to this information by the creditor.

11) The next column shown as "terms" indicates the monthly

payment on the account. For an installment debt, the terms

indicate the fixed monthly payment that you agreed to in your

contract. For a revolving debt, like gasoline cards, Visa or

MasterCard, the amount is the minimum monthly payment. Most

revolving credit cards have monthly payments approximating

1/36th of the total debt.

12) The next item "credit limit" provides the maximum credit

extended or the total limit of credit available to you under thisaccount.

13) The next column is very confusing. The "date closed" entry

provides you with the date of last activity. The date of last

activity is the starting point from where the bureaus measure the

seven years that information may remain on your credit report.

The date of last activity is properly measured from the date

when an account went to collection, was charged to profit and

loss (write-off) or became delinquent.

If the account does not have collection, or write-off status, the

"date closed" entry will give you the date on which the account

was closed, paid off or when the last payment was made on the

debt.

14) The "maximum delinquency" item refers to a previously past

due account that is currently up to date. The item indicates howmuch was past due at the point when the account was

previously delinquent.

15) Moving to the next line the code in this first entry corresponds

to your involvement with the account. For example the letter "A"


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indicates that you are an authorized user of the account; the

letter "C" indicates that this is a joint account and that you share

liability on the debt; the letter "1" shows that it is your individual

account and that you are solely liable for its repayment; the

letter "T" indicates that your involvement with the account is

terminated and "U" shows that the bureaus does not know your

relationship with the account.

16) The next item "collateral" provides you with the method by

which your debt is secured by the lender. In cases of automobile

or home loans, this line will give the property that supports the

debt.

17) The "remarks" item is a narrative of the account's current

status. If the account was placed for collection, closed,

transferred or has other available comments, such information is

entered at this location.

TRW - NARRATIVE

There are two types of reports generated by TRW. Your initial request for

a credit report should provide you with the TRW "narrative" report. This

report essentially gives you all the report information in easy to understand

wording rather than codes and symbols.

The other TRW report is printed with red and blue ink and is generated

with codes similar to the Trans Union or Equifax reports.

1) Reading from left to right, the TRW narrative report begins with a

column entitled "item". This simply is a follow along count toenumerate and separate all items. All accounts with an asterix

"*" to the left of this column are considered negative.

2) The next column "account name" gives you the name of the

creditor or supplier of information, the address of that entity and


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the account number, if any, provided by the source the

information.

3) The "description" column provides you with information about the

opening date of the account. This date may be different than

your records due to refinancing, creditor assignment of

accounts, company mergers or other creditor based activity.

The "description" column next gives you the repayment terms. For an

installment debt, the terms indicate the fixed monthly payment that you

agreed to in your contract. For a revolving debt, like gasoline cards, Visa

or D, the amount is the minimum monthly payment. Most revolving credit

cards have monthly payments approximating 1/36th of the total debt.

The next item in "description" identifies your relationship to the account.

This will specify if you are individually liable, partially liable under a joint

account or other relationship to the account.

Immediately after the description of your relationship to the account is the

high credit or balance information.

4) The next column "status/payments" is the most important

information in the credit report. Instead of reporting your

account on the 1 through 9 scale like Equifax and Trans Union,

TRW describes in narrative form what has happened with the

account and the current status of the account.


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TRW - BLUE/RED CODED

1) The TRW report with blue and red ink is coded in the same

manner as Trans Union and Equifax. Reading from left to right,

the first column is "account profile". This field is divided into

three sections listed as "pos", "non" and "neg".

Any reference in the "pos" section indicates that the information

for that trade line is positive in nature. An indication of "non"

indicates that the trade line is neutral or not rated. The

designation "neg" indicates that the trade line is negative or

derogatory in nature.

2) The next item "subscriber/court name" is the creditor or supplier

of information.

3) The next item is the TRW code for the subscriber. This is an

internal reference for TRW and does not need to be included in

your disputes.

4) The next item is "assn. code". The code in this entry

corresponds to your involvement with the account. For example

the number "3" indicates that you are an authorized user of the

account; the number"2" indicates that this is a joint account and

that you share liability on the debt and the number "1" shows

that it is your individual account and that you are solely liable for

its repayment.

5) The "amount" column gives you the highest amount of credit you

have used on the account. This amount may be higher thanyour credit limit.

6) The next item shown as "balance" provides you with the amount

outstanding on the account. This may not reflect the actual debt

as of the date of the report, but indicates the balance


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outstanding as of the date the information was provided to the

credit bureau.

7) The next item "account/docket number" is the account number

assigned by the creditor to the account. This number may not

be the same as the account number in your records due to

scrambling for privacy/security reasons or creditor added

numbers to segregate files by creditor office or region.

8) The "payment profile" column is one of the most confusing parts

of the credit report. When this field is filled in, it indicates the

payments to the account for the last 24 months; the first 12

months in the first row and the second 12 months immediatelybelow in the next row.

The numbers in the "payment pattern" field go from 1 to 5. The

number "1' indicates timely payment. The number "2" indicates

that the account was paid late but not more than 60 days past

due. The number "3" indicates that the account was paid late

more than 60 days but fewer than 90 days. The number"4"


fewer than 120 days. The number "5" indicates that the account

was paid but more than 120 days late.

9) Moving to the next line, the first item is the "status comment".

This is a narrative of the account's current status. If the account

was placed for collection, closed, transferred or has other

available comments, such information is entered at this location.

10) The next item is the "status date". This entry provides you withthe date of last activity. The date of last activity is the starting

point from where the bureaus measure the seven years that

information may remain on your credit report. The date of last

activity is properly measured from the date when an account

went to collection, was charged to profit and loss (write-off) or


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became delinquent.

11) The next item "date opened" is the date on which the account

was opened. This date may be different than your records due

to refinancing, creditor assignment of accounts, company

mergers or other creditor based activity.

12) The column "type" gives you the type of obligation most

appropriately describing this account. This line will indicate

whether the account is secured, a charge card, auto, home,

etc...

13) The "terms" column next gives you the repayment terms. Foran installment debt, the term indicates the fixed monthly

payment that you agreed to in your contract. For a revolving

debt, like gasoline cards, Visa or MasterCard, the amount is the

minimum monthly payment. Most revolving credit cards have

monthly payments approximating 1136th of the total debt.

14) The next column provides the "balance date". This data is the

date on which TRW either received the data from the creditor o-

[r the date on which TRW verified the data with the creditor.

15) The "amount past due" column shows the total amount of your

account balance that is delinquent, if any, as of the time the

information was reported to the bureau.

REMEMBER: DATA CHANGES CONSTANTLY. IF IT IS REPORTED IN

A CERTAIN WAY TODAY, IT MAY BE DIFFERENT TOMORROW!l!


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What are the notations on my credit reportsupposed to mean to me?

The codes and statements on any credit report are supposed to be clearly

defined and explained by the credit bureau issuing the report. As you

have probably already determined, the credit reports are almost

impossible to read and even more difficult to decipher.

Following list is intended to explain what most of the credit bureaudefinitions actually mean. As with most definitions regarding competing

products, there will inevitably be some variation.

Late Pay/Delinquency - Anindication that payments to an account were

not made on a timely basis. For installment loans, it indicates that

payments were not paid by the contractually stated date. For revolving

accounts, it indicates that the minimum payment was not made by the

date required by the creditor.

Paid Was Late - This notation indicates that an account was in a late

pay/delinquency status but was brought up to date.

Paid Was Delinquent -This notation indicates that an account was in a

late pay/delinquency status but was brought up to date.

Charge Off - This notation provides that the account has been taken off

the creditor's books and is considered un-collectible. A charge-off isconsidered a loss and is deducted from a creditor's profits.

Paid Charge Off - This references an account that has been taken off the

creditor's books but has been subsequently paid by the consumer. The

notation indicates that the debt has been satisfied and does no longer

24 out of 25 credit reports contain errorsCharles Givens Organization


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owe.

Collection (paid/unpaid) -This indicates that an account was placed

either to an in-house department or outside third party for the purpose of

collecting past due amounts of the debt.

Judgment - The binding opinion of a court entered on behalf of a party

involved in a lawsuit. In credit reports a judgment normally shows against

the consumer. A judgment means that a consumer is liable to another

party for the amount of the judgment. A judgment is the official and

authentic decision of a court of justice upon the respective rights and

claims of the parties to an action or suit therein litigated and submitted to

its determination.

Satisfied Judgment - Where a judgment has been ordered, this

reference indicates that the consumer has paid/extinguished the obligation

imposed by the court through the judgment issued.

Closed Account - Reported by Subscriber- This notation reads that the

account is no longer in existence and the consumer is unable to use that

account to incur debt. It also indicates that the creditor closed the account

because the creditor chose to no longer do business with the consumer.

This line indicates a negative connotation regarding the data.

Tax Lien - This refers to a tax obligation that has not been paid and has

had a lien placed against the assets or holdings of the consumer.

Paid Tax Lien - This shows that a tax obligation resulting in a lien has

been satisfied and that the consumer is no longer liable for the taxobligation.

Bankruptcy -Indicates that the account was involved in a bankruptcy

proceeding. This does not necessarily state that the account was

discharged, only that the account was included in some form of action.


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Discharged in Bankruptcy - This notation states that the account was

included in bankruptcy and that the debt was extinguished by virtue of the

bankruptcy court discharging the consumer from further liability on the

debt.

Foreclosure Process Started - This means that the consumer is in

default of the mortgage and the creditor is in the process of seizing the

property.

Foreclosure - Indicates that due to default, the creditor had to seize and

sell the property to satisfy the mortgage debt.

Deed in lieu - The consumer has defaulted on a mortgage and the

creditor has accepted the deed to the property in lieu (or exchange) of

seizing the property and selling it at auction to satisfy the debt.

Subscriber Cannot Locate - A notation normally indicating a defaulted or

delinquent obligation in which the creditor retains a collection interest but

is unable to locate the consumer to enforce the collection.

C or Current - The account is current as of the date reported.

1 - The account is or was 30 days past due.





7 - Making regular payments under wage earner plan or similar

arrangement.


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8 - Repossession. This account indicates a debt held with a security

interest. Where repossession is shown, it means that the creditor took

the property securing the debt back. If the trade line indicates

Voluntary Repossession it means that the consumer returned the

security interest to the creditor before it had to be taken back by the

creditor.

9 - Seriously delinquent/bad debt. This notation shows that the account

loan has not been repaid in a long time or that the debt is considered

un-collectible and is a bad debt.

R - Revolving Account. This notes that the account has or had a variablebalance and payment structure. Most Visa and MasterCard are open-

end credit cards, which allow one to pay a minimum or any amount

above that level without a fixed dollar amount each month.

I - Installment Account. This means that the account has a contractually

fixed payment structure with a specific fixed dollar amount due (usually

each month) and a particular due date. Examples of common

installment accounts are mortgages, auto loans, furniture, appliances,

boats, etc...

Joint Account -Account made with two contractual parties. Both parties

assume ultimate liability for the repayment of the obligation.

Authorized User - Indicates that the consumer is entitled to use the

credit card of another person. An authorized user does not incur any

obligation to repay the debt nor assume any contractual obligation to

make payments on the account.

Profit and Loss Write-off Is a Bad debt where the creditor has

accepted the amount as a loss of the amount against the profit of the

company.


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Above Item Deleted -TRW's indication that disputed data was removed

from your credit report.

Creditor Did Not Reply -TRW's indication that in response to your

dispute, it undertook an investigation and did not hear back from the

source to verify the data. The result is that the disputed data was

removed from your credit report.

Item Changed As Above - TRW's indication that in response to your

dispute the data has been verified but with modification. The change to

the trade line is indicated as noted in the updated report.

Above Item Remains - Confirmed by Source - TRW's indication that in

response to your dispute of data, TRW has contacted the source of the

information and verified that the data is accurate as reported.

Above Item Deleted From File - TRW's notation that the item of

information listed was disputed. During the course of the reinvestigation it

was determined that the data could not be verified and was then removed

from the credit file.

Above Item Deleted From File - Duplicate - TRW's notation that

information in the file was multiple entries for a single trade line and that

the duplication has been deleted.

Credit Line Closed - Grantor Request - Reported by Subscriber -TRW's notation that the account has been closed by the creditor. The

notation is to be construed as negative in nature.

The credit bureaus are for-profit and make billions ofdollars each year


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PART II

Strategies you must know before you embark

As we discussed in the previous section, you should not fear

the Credit Bureaus. They are nothing but (IC) Information

Collectors. And by the way, they profit from that.

Transunion made 1.5 Billion dollars in 2001

So,

Heres what you need to know:

The Credit Bureaus and the Creditors cannot just insert

anything they want to your credit report. But that doesnt

mean it does not happen either. Credit Bureaus have 30

days to remove any unverifiable items, and its the LAW.

You can challenge any and all items that are contained in

your credit report. Each and every time the Credit Bureau

must re-investigate. But again, it does not mean that they

do it. In my experience with dealing with them, I have

found that sometimes (after several disputes in a row)

they will send you a letter stating that it was already

investigated on Date XX-XX-XXXX (prior date of your

dispute).

There are 2 ways that items on your report can be erased:


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o The first one is the most common Creditors must

verify the items they have reported to the Bureaus.

If they dont, then it must be deleted.

o The second might come through input errors. We

are all humans and Credit Bureau computer

operators are no different.

Simple Step by Step instructions to Repair YourCredit

1. You will need to obtain your three credit reports. If you have

been turned down recently you can use that letter to get a free

copy of your credit report. The only problem will be that it is for

only one credit bureau. You can order and download your 3

reports immediately over the Internet today by Clicking Here.

2. By getting your 3 (or merged) credit report you will instantly

see all the credit reporting that different vendors and creditors

have reported to the Credit Bureaus.

Note:Each item may not be reported on all 3 Credit Bureaus and

you might even find that some creditors dont even report any

information (thats good or bad depending on your standing with

that creditor)

3. The first thing you will do and over the next few months will

be to dispute all of your negative items to each of the 3 major

Credit Bureau. You will write one letter per Bureau and list all of
http://www.credit.com/r/cc411online/997358/http://www.credit.com/r/cc411online/997358/http://www.credit.com/r/cc411online/997358/


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the negative items you want to challenge. See list of letters

attached at the end of this eBook

4. Mail your 3 letters. Within 10 days you will get 2 or 3 letters

from the Bureaus indicating that they have received your letter,

are investigating your dispute and will include a nasty page

about how illegal it is to use a Credit repair Agency. Dont

worry it is not illegal and by the way, you are doing it yourself.

They just try to frighten you so that you stop bothering them.

5. In about 4 to 5 weeks you will get your credit report back

from each agency. Your new reports will indicate what action

they have taken with each disputed item. Items that were notverified by creditors or have taken longer than 30 days will be

removed. Others will remain.

6. You will need to repeat each and every month. Your letters

are saved, so all you need to do is delete the items that have

been removed, print the letter and mail.

7. Stop around early September. Read #8 for explanation.

8. During the busy times of the holidays, creditors are swamped

with credit applications and thus are less likely to get to your

bothersome request on time. I advise you to re-start your

disputes around the second week of November which gives you a

2 month window meaning your next letter should be sent

around the second week of December.

9. Some creditors keep good records and will not be deleted. Iadvise you to negotiate. Negotiate a payoff amount in return for

their removal of their information from the credit report. PS:

They can do that, its within their power, even if they tell you

that they cant do it. - Get it in writing!


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10. An important note: After you send your first dispute, the

bureaus may ask you to fill out a preformatted form. DO NOT in

any case use their form. Just write your letters on a blank piece

of paper and include your name, SS# and address. Include the

items you are disputing. DO NOT use any of the Credit Bureaus

reference #s. PERIOD!

Federal Laws are in your favor!

The Federal Fair Credit Reporting Act. Is the law that governs

credit, creditors and Credit Bureaus and what protects you from

unfair practices.

The law states that the Credit Bureaus must verify the

correctness of your information with the creditors that

reported the information within 30 days. If the Bureau is

unable to verify the information within 30 days, it must be

removed.

The Fair Credit Reporting Act states that a consumer hasthe right to dispute, correct and update their credit file.

None of these laws mean anything if you do not put them

to use. You must get started today.

You have Rights under the Fair Credit Reporting Act

1. Every time you dispute your report with the Credit Bureau,

they must investigate or re-investigate your claim. They dont

always do that and you should remind them that under the Fair

Credit Reporting Act they must do so or be legally liable.


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2. You can dispute items in your credit report any time and it is

your right to do so.

3. The Credit Bureaus have 30 days to investigate your claim.

4. If the credit bureau does not get a reply form the creditor

within 30 days, they must delete that information immediately.

5. If the credit bureaus find an error in the item challenged, they

must correct that information immediately.

Remember:Credit Bureaus dont really care whats in your

report. They get paid by big business to pull your file. They are

just record keepers.

Personal Experience: It took me several months to clean my

credit file. What I did not know was that when the Credit Bureau

said they verified the information on xx date previously, they

meant that all they did was look at their previous notes (from

the previous dispute) and re-verified the same findings. When

you see this happening, include in your next letter that under

the FCRA they are compelled to verify that the item is correct

with the creditor and not just in their files.

Make sure you keep a small log of when you sent the

letters and their results.

Use Certified mail and get a return receipt.

Have patience. You will prevail. You can repair your credit even

if the items contained are correct just through sheer persistence.


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Eventually creditors want you to go away, so they will stop

responding to the Credit Bureaus. Some creditors do not keep

older files handy and for sure would not spend the time and

energy of their staff looking for old records.

Check your credit report each time. Record what was

deleted and re-dispute the remaining items.

Repeat, Repeat, Repeat!!!

Be persistent. Even if the Credit Bureaus tell you that all

your items are verified and correct, just keep hammeringthem. You will make progress over time.

The easy items to remove

If youre items fall in these categories, youre in luck. They aremuch easier to remove than the other category.

Bankruptcies that are discharged, irregardless of Chapter 7, 11 or

13

Any account that is older than 2 years or has had no activity in the

last 2 years

Inquiries

Repos.

Collection accounts Late payments

Paid off accounts


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And the hard ones are:

Fresh Bankruptcies (3 years or less)

Pas due and current accounts

Judgments and legal actions Unpaid Collection accounts

IRS Tax Liens

Child Support

Note:You should always dispute all the items. Although I have

categorized items as easy or difficult to remove, you need to

challenge all the items over and over. You will get results!

Detailed step-by-step actions:

Step 1:Get your 3 credit report and identify the derogatory items. Clickhereto download your tri-merge reportStep 2: Write and send your dispute letters.

Step 3: After receiving your updated files (30 or so days) review them andprepare for the next round.Step 4: Removing items that were verified by the Credit BureausStep 5: So, youve done all the steps above and the creditor has suppliedyou with proof.Step 6: No money to settle No problem

Step 1: Get your 3 credit report and identify the derogatoryitems

Click hereto order and Download your tri-merged report Identify the derogatory items and categorize them by each

one of the 3 Credit Bureaus.
http://www.credit.com/r/cc411online/997358/http://www.credit.com/r/cc411online/997358/http://www.credit.com/r/cc411online/997358/http://www.credit.com/r/cc411online/997358/http://www.credit.com/r/cc411online/997358/http://www.credit.com/r/cc411online/997358/http://www.credit.com/r/cc411online/997358/http://www.credit.com/r/cc411online/997358/


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Step 2:Write and send your dispute letters.

You will be writing 3 letters, one for each of the major

Credit Bureaus In each letter list all the items you want disputed. Mail your 3 letters certified and with a return receipt In about 10 days you will get a letter from 2 or all of the

Credit Bureaus indicating that they are investigating yourclaim

Wait 30 days to receive your updated credit report. You will receive one report from each of the Credit Bureau.

Step 3:After receiving your updated files (30 or so days)review them and prepare for the next round.

Review each of your new credit files

Hopefully, some items have been removed.

If not, do not get discouraged. Your persistence will pay

off. Just look at it as a game that you eventually win.

Open up your 3 saved letters, delete the items that

have been removed, print and send.

DO NOT use the Dispute Forms attached with your

updated credit report that they sent you. It's much

more effective to easily follow the outlines of the

sample letters included in Bonus #1. These letters

have been proven effective time and time again.

When disputing items, do not give reasons. Creditors

and Credit Bureaus do not care. Just say that these

items are not yours or that you never applied for credit

with them.

Remember: Good credit items will always outweigh bad items,

so as bad items are removed, you need to start building good

credit. Secured Credit Cards are a great way to start. Click here

to go to erasingbadcredit credit link site
http://www.erasingbadcredit.com/creditlinks.html


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Important:

Negative item that you want removed from your credit, such as a

bankruptcy, charge off or collection account, you want to write that

this is NOT your account and you want it removed immediately.

If your account is now paid off or you have settled, but was

delinquent or late at one time, write that it is your account but was

NEVER past due and you need it updated to reflect that.

Step 4:Removing items that were verified by the CreditBureaus

Are you an attorney?.. Not! No problem Use theirtactics and get over your creditors.

Follow the instructions you'll get similar results as any attorney (you just

won't have to pay).

When the Credit Bureaus verified your disputed items as valid or

correct you still have recourses. Contact the creditor that you want

removed from your report and ask (require) that they send you

proof (must be written) that it is your account.

Give the creditor 7 days to get the documentation and proof to you.

If you do not get anything in 10 days follow the steps below.

You must contact the Attorney Generals Office in the city of thecreditor who is damaging your credit.

Get the phone number through directory assistance.


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You have requested proof that the account belongs to

you and they do not have it. They are damaging you

credit and this account is not yours.

They will contact the creditor and take care of it. This

technique guarantees they will get the item removed.

Take the Creditor to Small Claims Court.

Call your county courthouse and get all the information

on filing a claim. You can do it all yourself.

You will fill out the forms and write that you wish to

remove the item from your credit file since it is not yours

and the creditor has no proof that it is your ac

Documents

Erasing Bad Credit Manual 0402