Credit Repair - Go to ACAW.NET http://www.acaw.net Sun, 29 Jan 2012 21:25:17 +0000 en hourly 1 http://wordpress.org/?v=3.3.1 Credit Cards vs. Debit Cards http://www.acaw.net/creditordebit/ http://www.acaw.net/creditordebit/#comments Thu, 01 Sep 2011 20:47:57 +0000 Tim http://www.acaw.net/?p=156 In this modern day and age, owning an electronic money-transferring card is practically expected in the world. Hundreds of millions of people in the United States alone have at least one credit or debit card. There are a number of perks that come with having a credit or debit card, but with such convenience comes [...]]]> In this modern day and age, owning an electronic money-transferring card is practically expected in the world. Hundreds of millions of people in the United States alone have at least one credit or debit card. There are a number of perks that come with having a credit or debit card, but with such convenience comes great responsibility.

Credit Card and Debit Card Responsibility

Credit cards and debit cards are both electronic ways of paying for things, but they have many differences. When working to repair your credit, it’s up to you to decide which type of card is better for you to have.

Credit Cards

          About Credit Cards: By using a credit card, you are basically paying for something using someone else’s money. You will be responsible for paying back the creditor.

          How Credit Cards Affect Your Credit: Because you are being credited money from someone else, the way you pay the creditor back will show on your credit report. If you are good with paying bills on time, using a credit card could have a positive effect and help repair your credit. If you aren’t so good with paying bills on time, using a credit card could worsen your credit history.

          Other Important Things to think About: If you are someone who could be classified as a “spendthrift”, using a credit card might not be the best way to repair your credit. Even if you are good with paying bills on time, if you overspend using a credit card you might not be able to pay back the creditor, which will negatively affect your credit.

Debit Cards

          About Debit Cards: When you use a debit card, you are using money that you already have. If you are using a bank issued debit card, the money that you use is directly taken out of your bank account. There is no one that you will need to pay back for using the debit card.

          How Debit Cards Affect Your Credit: Using a debit card will not directly affect your credit at all. The only way your credit could be affected by using a debit card is if you overspend and don’t keep track of your finances. If you use too much money from your bank account and find that you don’t have enough left to pay your bills, your credit will be negatively affected because of the late/unpaid bills.

          Other Important Things to think About: If you are careful and use great responsibility, using a debit card is a good way to improve your credit. Debit cards might not directly increase your credit, but they will at least prevent any negative credit from going on your credit report from not paying credit card bills.

 If You’re Still Not Sure

If you have a habit of spending too much through a card and can’t decide which you should use, it might be best to just use cash. Having the convenience of a credit or debit card means that you need to keep track of what you spend. By having a certain amount of cash in your pocket, you know what your budget has to be. Once you improve on keeping track of spent money, then you can think about getting a credit or debit card.

]]> http://www.acaw.net/creditordebit/feed/ 2 Disputing Credit Report Errors http://www.acaw.net/disputing-credit-report-errors/ http://www.acaw.net/disputing-credit-report-errors/#comments Thu, 01 Sep 2011 07:50:29 +0000 Tim http://www.acaw.net/?p=134 Someone’s credit report contains a lot of information regarding someone’s bill-pay history, arrest history, and other court-related history. Having a lot of negative information on your credit report can strongly affect whether or not a company will grant you credit. People with high credit scores don’t have to worry about this as much, since they [...]]]> Someone’s credit report contains a lot of information regarding someone’s bill-pay history, arrest history, and other court-related history. Having a lot of negative information on your credit report can strongly affect whether or not a company will grant you credit. People with high credit scores don’t have to worry about this as much, since they have good credit. However, sometimes a mistake will be made and an inaccurate (usually negative) piece of information gets placed on their credit report. Hope is not lost though, as this mistake can be fixed.

Disputing Inaccurate Credit Report Information 

As stated in the Fair Credit Reporting Act, both the creditor and the credit reporting agency must investigate and (if proven inaccurate) fix any incorrect information on your credit report. However, the companies will not begin an investigation on their own. That’s why it is very important to obtain a copy of your credit report and look for mistakes. If you find something inaccurate on your credit report, you are the one who is responsible to begin the dispute. You must do this for the credit dispute process to begin.

The Dispute Process

i.            You Contact the Credit Reporting Agency: In writing, inform the credit reporting agency with the information that you believe is incorrect. Explain in details why you think the item is incorrect and provide any copies of documents that could be used as evidence. Be sure to make a copy of the dispute letter before you send it.

ii.            The CRA Begins Investigating: Once the credit reporting agency receives your dispute letter, they must begin the investigation within 30 days. The credit reporting agency will forward the letter and all relevant evidence to the company that first reported the negative information. The company must then investigate and report all information back to the credit reporting agency.

iii.            The Results Are In: Step three splits two ways. This is where the dispute is reported as either true or false.

  • Dispute is True & Information is Inaccurate: If the company finds that you were correct in identifying the inaccurate information, it must notify all three credit reporting agencies to fix the information on your report. The original credit reporting agency will contact you in writing with the results. Along with the letter, they will provide you with a free copy of your credit report to show you that the item has been removed.
  • Dispute is False or Unsolved: If the company finds that the information on your report was true or if the investigation remains unsolved, the credit reporting agency will notify you in writing with the results. You are given the option of keeping a report of the dispute in your credit history so potential creditors may see that you believed the information was incorrect.
]]> http://www.acaw.net/disputing-credit-report-errors/feed/ 2 The Importance of your Credit Report http://www.acaw.net/the-importance-of-your-credit-report/ http://www.acaw.net/the-importance-of-your-credit-report/#comments Thu, 01 Sep 2011 04:51:06 +0000 Tim http://www.acaw.net/?p=128 As mentioned throughout this website, a positive credit report is a key factor in obtaining credit from businesses. It is important to keep an eye on your credit report and your credit rating. Lower credit ratings could decrease or even eliminate your chances at receiving credit from a company.

What all is on my credit [...]]]> As mentioned throughout this website, a positive credit report is a key factor in obtaining credit from businesses. It is important to keep an eye on your credit report and your credit rating. Lower credit ratings could decrease or even eliminate your chances at receiving credit from a company.

What all is on my credit report?

 The majority of the information on your credit report is financial-related information such as:

  • How you pay your bills (whether it’s early, on time, or late).
  • Whether or not you’ve filed for bankruptcy.
  • Whether or not you’ve been sued and how it turned out if you have been.

However, there is additional information on your credit report for creditors to use to determine whether you should be trusted with credit or not. Examples of this type of information are:

  • Whether you’ve been arrested or not.
  • Whether or not you’ve been convicted of a misdemeanor and/or felony.

How often should I check my credit report?

 It’s very important that you obtain a copy of your credit report at least once a year. This way you can look over it and verify that everything is correct. If you believe that something on your credit report is incorrect, you may file a credit dispute.

How do I get my credit report?

There are several ways you can obtain your credit report. You must either:

Every twelve months you are entitled to request a free copy of your credit report. If you’d like to receive a copy of your credit report, but the 12 month period has not passed since your last free copy, you have the option to purchase a copy.

]]> http://www.acaw.net/the-importance-of-your-credit-report/feed/ 1 Pre-Screened Credit Offers http://www.acaw.net/pre-screened-credit-offers/ http://www.acaw.net/pre-screened-credit-offers/#comments Tue, 30 Aug 2011 10:02:54 +0000 Tim http://www.acaw.net/?p=113 You walk outside to check your mail and find a letter from a random credit company. The letter tells you that you’ve been approved for credit from this company. Questions race through your mind and you wonder how they approved you to redeem credit from them. This type of letter is called a pre-screened credit offer.

What Is [...]]]> You walk outside to check your mail and find a letter from a random credit company. The letter tells you that you’ve been approved for credit from this company. Questions race through your mind and you wonder how they approved you to redeem credit from them. This type of letter is called a pre-screened credit offer.

What Is a Pre-Screened Credit Offer?

A “pre-screened” credit offer is where a company hoping to offer you their services has pre-approved you through a credit reporting agency. Companies do this by providing a credit reporting agency with a criteria list. The credit reporting agency will then make a list with names of the people who qualify for the companies’ services and give the list back to the companies.

Facts about Pre-Screened Credit Offers

There are a few frequently asked questions that have to do with pre-screened credit offers. Rather than having more questions pop up, here are some facts about pre-screened credit offers that people often ask about:

  • Prescreening for credit offers will have no negative or positive effect on your credit report. There will be no inquiry saved to your report about any of these offers.
  • Most times, pre-screened offers will be sent to you through the mail. Occasionally companies will offer you their services through e-mail, but with the amount of spam mail received nowadays, companies stay away from this.
  • Pre-screened offers of credit will usually come from credit card companies and insurance companies. Other local services such as items sent to “current resident” are not considered pre-screened offers.
  • You have the option to either temporarily or permanently stop receiving pre-screened credit offers.

To Stop Pre-Screened Credit Offers

Even though prescreening will not affect your credit report, some people prefer not to receive these pre-screened offers. If you would no longer like to receive pre-screened credit offers, you can do something called “opt-out”. This can be done both temporarily and permanently.

“Opting Out” of Pre-Screened Credit Offers

If you decide you would not like to be sent pre-screened credit offers, you can choose to either 1) opt-out temporarily, which will last for five years, or 2) opt-out permanently.

  • To Opt-Out Permanently
    • To permanently stop receiving pre-screened credit offers, you must print, fill out, and sign the Permanent Opt-Out Election form from the opt-out website. You will need to provide personal information used only as a security measure while “opting you out” of pre-screened credit offers.
    • To opt-out permanently, visit www.optoutprescreen.com
    • If you don’t have access to the internet, you will need to write each credit reporting agency and request to be permanently removed from their prescreening lists.
  • To Opt-Out for Five Years
    • To temporarily opt-out from pre-screened credit offers, you must contact the credit reporting agencies by phone or through their website. This option is only good for five years.

Toll free opt-out phone number: 1-888-567-8688

https://www.optoutprescreen.com

To Opt-In 

If you opt-out from receiving pre-screened credit offers, you do have the option to “opt-in” if you decide you’d like to receive offers again. There should be no charge for opting in or out of receiving pre-screened offers of credit.

]]> http://www.acaw.net/pre-screened-credit-offers/feed/ 0 Credit Freezes http://www.acaw.net/idrecovcreditfreezes/ http://www.acaw.net/idrecovcreditfreezes/#comments Sat, 27 Aug 2011 10:47:24 +0000 Tim http://www.acaw.net/?p=58 When you place a credit freeze, you are keeping any potential creditors from gaining access to your credit report. 

What a Credit Freeze Will and Won’t Do for You

 Placing a credit freeze on your credit report will provide increased security against becoming a victim of identity theft. However, some people become confused by what [...]]]> When you place a credit freeze, you are keeping any potential creditors from gaining access to your credit report. 

What a Credit Freeze Will and Won’t Do for You

 Placing a credit freeze on your credit report will provide increased security against becoming a victim of identity theft. However, some people become confused by what a credit freeze will and won’t do.

  • Credit freezes will prevent any potential creditors from receiving your credit report. This means that no new account can be opened using your identity during the time the freeze is in place
  • Any companies you are already doing business with will still have access to your credit report. An example of this is a cell phone or internet service you are receiving from a company.
  • With a credit freeze in place, you will still receive your free yearly credit report, or purchase a copy of your credit report.
  • Companies that you have not signed up for will still be able to offer pre-screened credit offers to you.
  • If an identity theft already has access to an account that you already have open, a credit freeze will not stop them from using it.

Fees for Placing a Credit Freeze

 The fee required to set up a credit freeze varies in amount depending on which state you live in. For most states, setting up a credit freeze for somebody who has been a victim of identity theft is free. Someone who is placing the credit freeze for additional security is charged a small fee, usually ten dollars. This fee is for each credit reporting agency. After all three have been contacted about the credit freeze, the final price is thirty dollars.

Temporarily Lifting a Credit Freeze

 If you are applying to open an account with a business that needs access to your credit report, you have the option to temporarily lift a credit freeze. In most cases, the credit reporting companies will charge you a fee to temporarily lift the credit freeze. This cost varies depending on which state you live in, but usually will cost the same as the freeze creation fee. To lift the freeze, you will also need the Personal Identification Number (PIN) that the credit company sent you when you created the freeze. The credit reporting companies have up to 72 hours to lift the freeze.

]]> http://www.acaw.net/idrecovcreditfreezes/feed/ 0 Fraud Alerts: What They Can Do for You http://www.acaw.net/idrecov-fraudalerts/ http://www.acaw.net/idrecov-fraudalerts/#comments Sat, 27 Aug 2011 10:30:02 +0000 Tim http://www.acaw.net/?p=44  There are two different types of fraud alerts that could be placed on your credit report. The type of alert issued depends on your situation. The first type of fraud alert is called an Initial Fraud Alert, and the second type is called an Extended Fraud Alert.

Initial Fraud Alerts

For an initial fraud alert [...]]]>  There are two different types of fraud alerts that could be placed on your credit report. The type of alert issued depends on your situation. The first type of fraud alert is called an Initial Fraud Alert, and the second type is called an Extended Fraud Alert.

Initial Fraud Alerts

For an initial fraud alert to be placed on your credit report, you need to either 1) believe that you are about to be a victim of identity theft, or 2) think that you have been a victim of identity theft. An initial fraud alert is generally placed on someone’s credit report when someone first thinks that they’ve been a victim of identity theft, but doesn’t know for sure or have any evidence that they are a victim.

  • An initial fraud alert is good for three months, or 90 days.
  • Initial alerts are sometimes created as a security purpose if you’ve lost your social security card, credit cards, drivers license/state identification card, or any other document with personal information that an identity thief could use to gain access to your finances.
  • When placing an initial fraud alert, the credit company will need to verify your identity. The identity thief could already have the personal information they would ask for, so try to come up with something unique to prove that you are you. Also, ask to speak with the credit company over the phone. Your voice will help somewhat with verifying your identity.
  • When you place an initial fraud alert on your credit report, you are allowed one free copy of the credit report from each credit reporting company. Look over these reports carefully, keeping an eye out for incorrect transactions and information.

Extended Fraud Alerts

Extended fraud alerts are for people who have been a victim of identity theft. The victims have, without a doubt, been a victim of identity theft and must provide the credit companies with a copy of the identity theft report. There is proof that the theft did take place.

  • Extended fraud alerts are good for seven years
  • The consumer reporting companies will remove your name from all the marketing lists for pre-screened credit offers for five years. If you wish, you have the right to request that your name be put back on the list before the five years are up.
  • With an extended fraud alert, any potential creditors must have direct contact with you before issuing any credit in your name.
  • You are allowed two free copies of your credit report from each credit reporting company. These two free copies must both be claimed within the first 12 months after the extended fraud alert is placed on your credit report.

Placing an extended fraud alert on your credit history after being a victim of identity theft is an intelligent step to take. The rights and benefits you receive from an extended fraud alert is like having a built in security system for your credit history.

]]> http://www.acaw.net/idrecov-fraudalerts/feed/ 0 Identity Theft Victims: Four Main Steps to Recovery http://www.acaw.net/id-theftfourstepsrecovery/ http://www.acaw.net/id-theftfourstepsrecovery/#comments Sat, 27 Aug 2011 10:22:51 +0000 Tim http://www.acaw.net/?p=30 A Guide of Government-Recommended Steps to Recovering from Identity Theft

Recovering from having your identity stolen can be a difficult and confusing thing to do. You’ve been victimized, possibly by someone you haven’t met. You’re probably scared and you’ve been forced to become vulnerable. According to the Federal Trades Commission (The FTC), there [...]]]> A Guide of Government-Recommended Steps to Recovering from Identity Theft

Recovering from having your identity stolen can be a difficult and confusing thing to do. You’ve been victimized, possibly by someone you haven’t met. You’re probably scared and you’ve been forced to become vulnerable. According to the Federal Trades Commission (The FTC), there are four main steps to recovering from Identity theft. It is very important that you keep a record with details on everything you do during this time. Each step will be further explained in other posts throughout this recovery section.

Step 1: Contact a Consumer Reporting Company & Place a Fraud Alert

 By placing a fraud alert on your credit reports, you will be preventing the identity thief from creating any new accounts in your name. There are three consumer reporting companies, but you will only need to contact one. By law, the company is required to contact the other companies and inform them of the fraud alert. After the other companies have been contacted by the first, they will contact you confirming that they’ve placed a fraud alert on your credit reports from them as well. The three companies are:

After placing a fraud alert, you are allowed to receive one free copy of your entire credit report from each company. Do this, and carefully look over each entry. Be sure to check for transactions you don’t recognize, accounts you didn’t create, and any other fraudulent information and have it removed. Also be sure to check that all of your personal information is correct (name, address, social security number, etc.). Make sure to report and fix anything that isn’t correct.

Step 2: Close All Accounts the Thief Used and/or Created Illegally

Call up your bank and/or credit company and cancel and accounts that you believe have been accessed illegally. Ask to speak with someone in the security department. It is very important to close the old account and create a new one, or the identity thief will still have access to your account. Be sure to remember to do the following:

  • When you open a new account, remember to create a new password, Personal Identification Number (PIN), and new security questions/answers. Otherwise, the identity thief would still have all the information needed to use your new account.
  • Look at the old accounts before closing them, and check to see if the identity thief used your money or charged anything by credit. If he/she did, ask for the company’s fraud dispute forms. If the right proof is given, the company should either cancel the transactions (if possible) or not charge you for them.
  • Look to see if any new accounts were created by the thief. If one was, file another report with the police about the newly discovered fraud. After reporting it, obtain a copy of the Identity Theft Report. Give this report to the company that the thief created the new account with. This letter will require the company to stop reporting any information on that account to credit report companies.
  • After all the accounts are closed and all the illegal transactions are discharged be sure to ask for a letter from the company to prove it has all been done. This letter can be used as proof in case an error occurs within the company.

Step 3: File a Complaint with the FTC

 By filing a complaint with the FTC, you will provide additional information that will help the authorities find and catch identity thieves throughout the United States. Not only will your information help them with finding your identity thief, but it will help investigators better understand different ways identity thieves do their “work”. Be sure to print a copy of the complaint to give to your local authorities during step four.

Step 4: File a Report with Your Local Authorities

Call your local authorities and ask to set up a time where you could meet in person and file a report on your identity theft. Make sure you bring the printed copy of your complaint with the FTC, all bank/credit account documents, and any other important documents you received from steps one, two, and three. It is still important to report this “bulk” crime even if you’ve already reported the fake account creation from step two. Be sure to ask for a copy of the final written report.

For More Information on Recovery…

 Here are some links to other information articles on identity theft recovery throughout this website:

]]> http://www.acaw.net/id-theftfourstepsrecovery/feed/ 0 Credit Repair: Is It All A Lie? http://www.acaw.net/credit-repair-is-it-all-a-lie/ http://www.acaw.net/credit-repair-is-it-all-a-lie/#comments Wed, 24 Aug 2011 00:51:23 +0000 admin http://www.acaw.net/?p=10 In this current day and age, poor credit history is unfortunately very normal throughout the United States. Nowadays, credit history is a large factor when it comes to doing business with certain companies. Someone’s credit history could be the key towards succeeding in high goals, or the chains holding someone back from them; the better [...]]]> In this current day and age, poor credit history is unfortunately very normal throughout the United States. Nowadays, credit history is a large factor when it comes to doing business with certain companies. Someone’s credit history could be the key towards succeeding in high goals, or the chains holding someone back from them; the better the credit rating, the higher the odds of it being the key to success, rather than the chains of despair.

Factors Affecting Credit History and Credit Scores

Most of the factors that will affect someone’s credit rating are very similar and fall within the financial category. Some examples of these factors are:

• Paying household bills (Electric, gas, etc.) after the deadline date given by the company.
• Completely missing a bill payment.
• Agreeing to a “rent-to-own” contract and failing to keep up with your end of the deal.
• Failing to pay child support
• Paying only partially for a bill by the due date.

These are only a few examples of many ways for someone to bring their credit rating down. The same factors apply for bringing someone’s credit rating up; only instead of missing a payment they would be regularly paying the bill on time.

Credit Repair Companies

Because so many people in the U.S. have such poor credit ratings, there are many credit history repair/removal services offered by businesses through the media. Some of these companies’ offers are genuine, but some of them are scams. When deciding how to improve your credit history, the key skill is to know how to separate the real offers from the scams. However, if you know the right signs to look out for, it won’t always be difficult to do.

• If the company is guaranteeing poor credit removal from your credit history, the offer is a scam. Once something is on your credit history it’s there for good, no matter how many positive things you add to the list.

• By law, credit repair companies are required to inform you of your rights and to tell you how you could fix your credit rating on your own. If the company does not do this, it is a scam.

• If a credit repair company tries to charge you a startup fee, it is a scam. By law, credit repair companies are not allowed to charge you for their services until they’ve helped you improve your credit rating at least a little bit.

• If a credit repair company is offering to help you create a new credit history, it is a scam. Everyone has their own credit history, and they only have one. All you would accomplish by taking their services is illegally creating a fake identity.

Repairing Your Credit History by Yourself

If you are truly committed to repairing your credit rating and maintaining a good credit history, the best place to start is by paying all of your current bills on time and in full. All you need to do to repair your credit history is add a lot more positive credit information to the list. In time, these positive additions will outweigh the negative information on the list.

Investigating False Credit History Reports

If you ever believe any negative information on your credit history is inaccurate, you have the right to write the credit information companies and explain why you believe it is incorrect. Be sure to provide the companies with any extra information and proof that you have that can support your statement. The companies are required to investigate your claim within thirty days of receiving it.

If You’ve Been Scammed:

• Report the crime to the authorities immediately!
• Ask for help from the authorities as well; the company you put your trust in now has lots of your personal information, putting you at huge risk. There is nothing wrong with asking for help.
• If you gave the fake credit repair company your credit card information, put the credit card on hold or cancel it altogether.
• Be sure to let the authorities know as much information as possible. Depending on the services the credit repair companies offered, you could have unknowingly broken the law. Let the authorities know so that you don’t end up taking the consequence when you were the one who was scammed!

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