Repair & Fix Errors

In this Section: Overview RMCN: Credit Repair Firm Rapid Rescore Credit Repair Course - "Do-It-Yourself "

OVERVIEW

 

One of the main reasons that credit scores are low coming out of a bankruptcy is due to mistakes on the credit report. This section talks about how to remedy those mistakes and boost your score.

There are three main options:

• Use an outside firm
• Rapid Rescore
• Do-it-Yourself Credit Repair Program

 

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RMCN CREDIT REPAIR FIRM

 

If you do not have the time or do not want the hassle of fixing the errors yourself, it's best to employ the help of an outside company. They are experts in what they do and keep on top of changes in credit reporting guidelines and regulations.

First off, there are a lot of "credit repair" scams that do not achieve results. RMCN is not one of those companies. We refer everyone we talk to who has less-than-perfect credit to this company. Why? Because they actually achieve results! RMCN is definitely not the cheapest company, but they are the best.

For a free consultation, contact the person below:

RMCN Credit Repair Services
Cory Betz
National Consultant
Phone: (469) 951-0096
Email: c.betz@rmcninc.com
2140 Redbud Blvd Suite C
Mc Kinney, TX 75069

 

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RAPID RESCORE

 

When someone discharges from a bankruptcy, 99.99% of the time credit reports are left with errors. One of the most common errors are balances still reporting as "owed" even though they were included in the bankrtupcy. And since balances account for about 33% of your credit score, these incorrect items bring your score down.

Rapid Rescore is the process of removing those balances within 5 business days.

Cost: $99 processing fee + $95 per line item for each bureau
Average time for items to be removed: Within 5 business days!
Upside: Fast removal of credit items.
Downside: If you are not interested in paying any money for credit repair, this is not the program for you. Also, increase in score cannot be 100% guaranteed.

How to Signup: Contact Us

We will evaluate your credit report against your Schedule F and Schedule D from your bankruptcy to make sure those items were actually included in the bankruptcy. We will then run an online computer program to see what kind of increase in score we can expect. If some items do not look like they provide an increase in score, we will recommend to send letters to those companies using templates provided above.

After the review, you will receive a report detailing the items we plan to remove, and how we expect your credit score to rise. There is no guarantee that your score will go up, but our computer simulator gives us a good estimate. After you make the payment, those items will be removed from your credit report within 5 business days.

 

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DO-IT-YOURSELF CREDIT REPAIR COURSE

INTRODUCTION

So your credit is less than perfect?  I understand that can be discouraging, but you aren't too far from where you need to be... and there are a lot of things that can be done to boost your score fast.  I want to help you improve your credit score over the next several weeks so that you can work on getting a mortgage.

I know how to help you and I am more than willing to give you the guidance you need.  But you'll need to do your part so that we can repair your credit.  I trust that once we get your credit score up, you will be ready for a home loan.

Here's what I'm going to do:

I will walk you through the steps you must take to repair your credit quickly.  Then, in the coming weeks, I will follow up with you periodically to make sure we're on track to get the results we want.

More specifically, in this program I will show you how to:

1. Get your credit report from all three bureaus (at no charge, in most cases)
2. Evaluate your report for mistakes and problems
3. Dispute inaccuracies in your report (online, by phone or by mail)
4. Take additional steps to improve your score

Keep in mind that this is a project that will take one or two months, but most of that time is just waiting for the credit bureaus to make the necessary changes to your credit report.  In the end, your score will improve, you'll be able to qualify for the loan you need and you will save literally thousands of dollars in interest over the life of the loan.

So, roll up your sleeves, follow my recommendations and do the work that's needed.  It will be well worth the time you put into this project!

WHAT YOU WILL USE IN THIS PROGAM

• Credit Report
• Bankruptcy Discharge Letter
• Schdules D & F from your bankruptcy
• Template Letters for Credit Bureaus available here:

Microsoft Word Templates Click Here	Adobe Acrobat Format Click Here
If you have Microsoft Word, you can use these templates to directly edit the forms.	You can download Adobe Acrobat Reader for free to print out these templates. Most computers already have this software loaded, but you may also download it below. Download Adobe Acrobat Here

 

GETTING YOUR CREDIT REPORT (Also, visit Learn: Order A Credit Report in an earlier section about ordering a credit report.)

 

The first step to improving your credit score is to get a copy of your credit report.  This is super important because there's a good chance that there are inaccuracies on your report that are bringing down your score.  At least 50% of credit reports have inaccuracies and some experts estimate that as high as 80% of reports contain inaccuracies.

Fortunately for all of us, the government has recognized this problem and has done some things to benefit consumers.  I'm going to tell you how you can get your credit report without spending any money (in most cases).

For starters, there are three major credit-reporting agencies in the United States: Experian, TransUnion and Equifax.  These agencies (sometimes called "bureaus") all have a credit report and score for you on file.  You must look at your report from all three agencies in order to maximize the improvement in your credit score.  Here's why...

Your "credit score" is actually the middle score of the three scores reported from Experian, TransUnion and Equifax.  If you only work on your credit report from Experian, it doesn't matter how much the score improves because TransUnion and Equifax will still be reporting unimproved scores.  Remember: it's the middle score that counts, so you need to work on your credit report from all three credit bureaus to give yourself the best chance for improvement.

Okay, here's how to get your credit reports from the three bureaus:

Experian:  www.experian.com or (888) 397-3742
TransUnion:  www.transunion.com or (800) 888-4213
Equifax:  www.equifax.com or (800) 997-2493

If you contact the credit bureaus directly, they will charge you around 10 bucks each for your report.  They will also add a few bucks if you want to know your score (which you probably will).  But you may not have to pay anything at all to get your reports... and you can be looking at your credit reports in a matter of minutes.

A new federal law called the Fair and Accurate Credit Transactions Act (the Fact Act) entitles you to one free credit report from each credit reporting agency per year.  You can request your three reports, in accordance with this new law, by going to www.annualcreditreport.com which is the only authorized source for consumers to access their annual credit report online at no charge.  You can also request your reports by phone by calling 877-322-8228.

I prefer to request the reports online because you can get them in about 5 minutes.  But keep in mind that the new law only requires the reporting agencies to give you your credit report, not your credit score.  So, if you want your score from each bureau, you'll have to pay about $5 for each score.  It may or may not be worth it to you, but I like to know what the actual score is that each agency is reporting.  Also, keep in mind that if you got a free credit report within the last 12 months under this new law, you'll have to pay for your report.

Your first assignment is to go order your report from each of the three credit bureaus right away.  Remember to get all three reports.  The next section discusses how to understand your report and how to identify problems with your reports so that you can improve your credit score.

I know it takes a little bit of work, but don't worry, it's worth it!  Follow my suggestions here so that we can improve your credit score and get your home loan done.  You can do it!

 

EVALUATING YOUR CREDIT REPORT FOR MISTAKES AND PROBLEMS

I hope you were able to get your credit reports.  If you don't already have your report from all three credit bureaus, do that right now!  The first step in repairing anything (credit included) is identifying what the problems are.  Go to www.annualcreditreport.com RIGHT NOW, and request your free credit reports.  Once you have your credit reports in front of you, read on to learn how to read your credit report.

Okay, so now that you've got your report, you look it over and you see that it's pretty confusing.  There are a bunch of numbers, abbreviations and terms you've probably never seen before. Trade lines, charge-offs, account review inquiries -- how do you read this thing?

I'm here to help you.  I'll tell you what the various sections of the report are and I'll explain a little bit about each report.

A credit report is basically divided into four sections. They are:

1. Identifying Information
2. Credit History
3. Public Records
4. Inquiries

Identifying Information

Identifying information is just that -- information to identify you. Look at it closely to make sure it's accurate. It's not unusual for there to be two or three spellings of your name or more than one Social Security number.  With regard to identifying information, you just want to make sure that you are the subject of the credit report.  If your name, address or employer is wrong, that's not going to hurt your score.  But if the person on the report is not YOU, that might not really be you're your score, particularly if the person on your report is a real deadbeat.  Point is, don't be concerned about variations; just make sure that the person on the report is you.

Credit History

The next section is your credit history. This is where you want to begin looking for inaccuracies that can hurt your credit score.  Each account will include the name of the creditor and the account number, along with other information such as:

1. When you opened the account
2. The kind of credit (installment, such as a car loan, or revolving, such as a credit card)
3. Whether the account is in your name alone or with another person
4. Total amount of the loan, high credit limit or highest balance on the card
5. How much you still owe
6. Fixed monthly payments or minimum monthly amount
7. Status of the account (open, inactive, closed, paid, etc.)
8. How well you've paid the account.

You want to look at each "blemish" on the report that says you paid late or the debt was "charged off."  Make a note of each blemish contained in the credit history section and move on to the next section.  In a minute, I'll tell you what to do with these black marks.

Public Records

The next section of your credit report is the part you want to be absolutely blank. The public records section lists bankruptcies, judgments and tax liens.  These are the things that will trash your credit faster than anything else.  Again, make a note of anything that shows up in this section and I'll tell you what to do with these blemishes.

Inquiries

The final section is the inquiries. That's a list of everyone who asked to see your credit report.  Inquiries are divided into two sections. "Hard" inquiries are ones you initiate by filling out a credit application. "Soft" inquiries are from companies that want to send out promotional information to a pre-qualified group or current creditors who are monitoring your account.  Each hard inquiry brings down your credit score by 3 - 5 points.  Soft inquiries have no effect on your score.

Okay, now that you've looked through the report and have made a list of all the blemishes on your report, it's time to go to work improving your score.  To do this, you'll focus on three things.

1. Disputing inaccuracies and other blemishes
2. Minimizing other credit risk factors
3. Improving your "creditworthy" behavior

At this point, the quickest and most significant improvement in your credit score will come from disputing inaccuracies in your credit report.  Most likely, some of the "black marks" on your report are inaccurate.  Experts believe that 50% - 80% of credit reports contain inaccuracies.

So, here's what you need to do first.  Look over your list of blemishes and identify any that you believe are incorrect.  Consult with your significant other or anyone else who may have an effect on your credit report (have you co-signed a loan?, etc.) to verify any inaccuracies.

Once you've identified the inaccuracies, you're ready to dispute them.  I'll tell you how to do that in the next section.  For now, make sure you know which black marks are inaccurate and begin assembling any documentation that proves the inaccuracy.

I know it's pretty frustrating to learn about the errors in your report.  Don't worry, we'll take care of them.  Just follow what I'm telling you and get all your ducks in a row so that you can prove that the inaccuracies are wrong.  If you do that, your score will quickly improve.

 

HOW TO DISPUTE INACCURACIES AND OTHER BLEMISHES

Alright, now we're getting to the meat and potatoes of my credit repair program.  You've got your list of black marks and you've identified the ones that you believe are incorrect.  It's time to dispute!  Here's what to do to get rid of these pesky marks on your credit report.

1. Call in a dispute to the creditor (not the credit bureau) that is reporting the black mark.
2. If that doesn't work, file a dispute with each of the three credit bureaus.
3. If that doesn't work, re-contact the creditor with your complaint (make a big fuss) AND submit a personal statement to the credit bureaus.

Now, I'll explain each step and tell you how to proceed to give yourself the best chance at removing the black marks on your report.

First, call the creditor that is reporting you to the credit bureaus.  You can get the correct number for each creditor by looking at your credit report in the last section.  There, you'll see all your creditors and their contact information.

If the creditor is reporting incorrect information, explain why the information is incorrect and tell them you expect them to contact all credit bureaus and correct the information.  You will most likely be required to fax to the creditor any information that supports your dispute (check number, explanation of your dispute, etc.).

If the creditor is reporting correct information, you may still have a chance to get the black mark removed from your credit report.  Explain your situation and the circumstances surrounding the problem and kindly ask them to remove the blemish from your credit report.  In this case, the creditor is not required to remove the black mark, but they have the power to do so and many consumers are successful in their attempts.

HELPFUL TIP: If you are negotiating a settlement with a creditor, you might be successful in getting the creditor to remove the black mark.  But be sure to get their agreement in writing because once you pay on your part of the settlement, you've lost your negotiating power and you may end up with an unresolved black mark on your report.

Second, file a dispute with each credit bureau if the creditor will not remove the black mark.  You can dispute online, by phone or by mail, in most cases.  Here's how to do it.

TransUnion:

1. http://www.truecredit.com/help/disputelc.jsp?cb=TransUnion
2. By Phone:  800-916-8800
3. By Mail:  2 Baldwin Place, P.O. Box 2000, Chester, PA  19022

Equifax:

1. https://www.econsumer.equifax.com/consumer/sitepage.ehtml?forward=online_dispute
2. By Phone:  (800) 997-2493
3. By Mail:  P.O. Box 740256, Atlanta, GA  30374

Experian:

1. http://experian.com/disputes/index.html
2. By Phone:  (888) 397-3742
3. By Mail:  Experian Consumer Solutions, P.O. Box 740256, Atlanta GA 30374

Once you file your dispute, the credit bureau will contact your creditor to verify the validity of the dispute.  If the creditor does not prove the validity of the black mark within 30 days, the credit bureau is required by law to remove the black mark from your credit report... and your score will go up!  Keep in mind that the credit bureaus are only required to remove a black mark if the creditor fails to provide supporting documentation of the derogatory mark within 30 days.  So, if you are disputing marks that you know are accurate, your only hope is that the creditor will not respond to the credit bureau within 30 days.

Here are some helpful hints in disputing inaccuracies.

1. Gather all of the documents you have to support your claim, and attach them to the letters you are going to send to the credit reporting agencies.
2. Make a copy for each agency that shows the error on its report
3. Highlight the error
4. Label each supporting document as Exhibit I, Exhibit II, Exhibit III and so on, so you can refer to the specific exhibits in your letter
5. Keep it short and simple!
6. Fill out the dispute form online, or use the sample letters as a guide

If you use the attached sample letter, be sure to include all elements of the letter.  If you leave something out, say, your social security number, you could experience significant delays.  We're trying to get results as fast as possible, so be sure to provide all necessary information.

Now, if you choose to issue your disputes online rather than by mail, you'll have to be brief.  The credit bureaus usually require you to submit your dispute in just a few sentences.  Many consumers report good results from the online dispute tools, but others feel that the online method provides less of an opportunity to adequately state their claim.  You should go to one of the online dispute links above to see if the online dispute method suits you.  IMPORTANT: be sure to choose one method of disputing each claim.  That is, don't dispute the same claim online and by mail.

After you file a dispute, you'll have to wait a few weeks to get an answer.  Your creditors have 30 days to respond to the credit reporting agencies, so be patient.

Okay, so what if you file the dispute and the creditor tells the credit bureau that the black mark is accurate?  If the black mark is accurate, you'll have to live with it.  But if the black mark is not accurate, you've got a battle on your hands.  Call up the creditor and ask to see the documentation they issued to the credit bureau that supports the black mark.  They have to give it to you.  No documentation = no black mark.  If they insist they are correct, provide them will all of the necessary information to back up your claim and insist on speaking with a "higher up" until you get resolution.

If none of that works, the black mark will remain on your credit report.  However, you do have one last option.  You can submit a "consumer statement' to each credit bureau that will essentially act as an unofficial explanation of a particular black mark on your report.  Lenders may review the consumer statement and take it into consideration when making their credit decisions. The statement remains on your report as long as the disputed information appears or until you request that it be removed.

A word of caution: Don't give up!  It takes some work and some time to dispute all of the inaccuracies on your report.  You probably won't win all of the disputes, but you will win some of them... and your credit score will improve as a result.

In the next section, I'll tell you about some of the other factors that can lower your credit score and I'll give you some quick tips for improving your score.

Yes, this is a pain in the neck, but it's worth it!  You will feel so much better when you get this stuff cleared up and you see improvement in your score.  In the long run, you will save thousands of dollars on your loan by simply clearing up these errors now.

 

HOW TO MINIMIZE OTHER CREDIT RISK FACTORS

I hope you're finding my credit repair course to be useful.  If you're following my suggestions, you know that the process is a tedious, but it's worth it in the end.  I'm happy to be providing you this information and I hope that you're doing your part to make sure that we're successful in our efforts to improve your credit score.

Now that you know how to dispute errors on your report, you need to be aware of the other factors that can reduce your credit score.  These factors are:

1. High credit balances
2. Credit inquiries
3. Closed accounts
4. Late payments
5. High Credit Balances

Your credit score suffers when you have a balance on any account that is greater than 50% of your credit limit for that account.  So, if you have a credit card with a $5,000 limit and you're running a $4,000 balance, your score will suffer.

Most likely, you don't have a wad of cash to pay down the balance (if you do have the cash, by all means, pay down the balance).  So, how do you solve this problem?  You can use two strategies to lower your balance.  First, you can simply call the creditor and request a credit line increase.  In most cases, the creditor will quickly and willingly grant you an increase on the spot.  The second strategy is to pay down your balance using available credit from another account.  The point here is that it's better to have two $5,000 credit lines with balances of $2,500 each than to have one balance of $4,000 and another of $1,000.

The target balance percentage is up for debate.  Obviously, the lower your balance the better.  Most experts agree that you want to carry a balance of no more than 50% of your credit limit.  Many experts believe that your score is not hurt at all if you carry a balance below 30% of your credit limit.  So, shoot for a balance of 50% or less.  And if you can get the balance down below 30%, you're in great shape.

Credit Inquiries

Almost any time you apply for credit, the creditor runs a credit check on you.  That credit check is an "inquiry" that will lower your score by 3 - 5 points.  So, be careful who you allow to pull your credit.  You want to minimize inquiries as much as possible, particularly before making a big purchase (home, car, etc.).  Don't go by a car, furniture or any other large purchase involving a credit check while you're trying to get your credit score in shape for a home loan!!!

A couple of important points...  First, your credit score is not hurt when you check your own credit score with the credit bureaus.  This is considered a "soft" inquiry and it has no effect on your score, although you will see soft inquiries on your credit report.  Second, when applying for credit, all related inquiries in a two-week period count as one inquiry.  This means that you should compress your shopping into two-week time frames so that your score is not hurt each time your credit is pulled.

Closed Accounts

It is best NOT to close accounts when you are trying to boost your credit score.  This is particularly important regarding your credit accounts that have been open for a long time.  You see, part of your credit score is determined by the length of time and the amount of credit you have available to you.  So, if you close an account that you've had open for a long time or that has a generous credit limit, you will probably hurt your credit score.

So, what should you do if you pay off the card or no longer use the account?  Well, during the time period that you're working hard to boost your scores, don't do anything.  Then, once you've achieved the score you need, you can close an unused account, but be sure to specifically tell the creditor that you want the account to be "closed at customer's request."  Those are the words your creditor should report to the credit bureaus in order to avoid the appearance that the creditor chose to close your account.

Late Payments

The absolute most important way to improve your score is to pay your bills on time.  That's not much consolation when you're in a race to improve your credit score because on-time payments take about 6 months to have an impact on your score.  But the impact is significant.  So, start paying everything on time right now... and you'll avoid credit hassles in the future.

In summary, to improve your credit health, you should first dispute all errors on your report and then you should:

1. Maintain low balances (below 50%, or as low as 30%, if possible)
2. Get creditors to increase your credit limits
3. Avoid credit inquiries if at all possible
4. Don't close out your accounts
5. Make your payments on time!
6. Monitor your report frequently to ensure accuracy and improvement

 

HOW TO IMPROVE YOUR CREDIT WORTHINESS

I've taught you how to get your credit report, how to dispute errors and how to minimize other risk factors.  All of those things can help you improve your credit score in a short period of time.  I want to give you some basic tips that will help you improve your credit health in the long run.

These tips are not "quick fixes" but they will help you dramatically in the future if you'll live by them.  Now, I understand that your credit is probably hurting right now because you're not in the greatest of financial position.  When you're in that situation, it's hard to look at these suggestions because they seem unrealistic.  But keep these things in mind as the ideal and do your best to live by these principles.

1. Pay your bills on time. Proving that you can pay your bills on time is the best thing you can do to improve your score. And it's never too late to start. Even if you've had serious delinquencies in the past, these will count less over time.
   
   
2. Keep credit cards balances low. High outstanding debt can pull down your score.
   
   
3. Check your credit report for accuracy frequently. There may be inaccurate information on your credit report that can be easily cleared up. Always contact the original creditor and all three credit bureaus whenever you clear up an error, so that the inaccurate information won't reappear later.  Requesting a copy of your credit report won't affect your score if you order it directly from the credit reporting agency or an authorized organization.

4. Pay off debt rather than moving it around. Consolidating your credit card debt on one card or spreading it over multiple cards will not improve your score in the long run. The most effective way to improve your score is by simply paying down the amount you owe.

5. Have credit cards-but manage them responsibly. In general, having credit cards and installment loans which you pay on time will raise your score. Someone who has no credit cards tends to have a lower score than someone who has managed credit cards responsibly.

6. Don't open multiple accounts too quickly especially if you have a short credit history. This can look risky because you are taking on a lot of possible debt. New accounts will also lower the average age of your existing accounts, something that your FICO score also considers.

7. Don't close an account to remove it from your record. A closed account will still show up on your credit report, and may be considered by the score. In fact, closing accounts can sometimes hurt your score unless you also pay down your debt at the same time.

8. Shop for a loan within a focused period of time. FICO scores distinguish between a search for a single loan and a search for many new credit lines, based in part on the length of time over which recent requests for credit occur.

9. Don't open new credit card accounts you don't need. This approach could backfire and actually lower your score.

10. Contact your creditors or see a legitimate credit counselor if you're having financial difficulties. This won't improve your score immediately, but the sooner you begin managing your credit well and making timely payments, the sooner your score will get better.

If you haven't already submitted all of your disputes, do it right away.  It usually takes about 30 days from the time you submit to get things cleared up, so you can't afford to delay.  The quicker you submit your disputes, the sooner your scores will improve.

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