October 31, 2006

Included in Bankruptcy but Reporting as “charged off”

A 1998 FTC staff letter addresses the question of whether a tradeline discharged in bankruptcy can be listed by a creditor as “charged off as bad debt”.  The CRA’s are obligated by Section 607(b) of the FCRA and must “follow reasonable procedures to assure maximum possible accuracy of the information concerning the individual about whom the report relates”.  The report states “In our view, it is not a reasonable procedure to label an account that has been discharged in bankruptcy as ‘charged off as bad debt’ if the account was open and not charged off when the consumer filed bankruptcy.  Such a designation would be inaccurate or misleading, because it would indicate that the creditor had written off the account at the time of bankruptcy when it had not in fact done so”.    (more…)

October 30, 2006

Give Your FICO 30 Minutes

Are you considering buying or refinancing a home?  Here’s good advice: increase your credit score and lower your interest rate. If you’re new to this site, then you should know that we’re not selling credit repair books or tapes and we’re not selling credit repair services.  As a matter of fact, we’re not selling anything.  Mortgage and real estate industry professionals created this website to provide you with the information that you need to improve your credit score – free of charge.  We believe in the golden rule and thought that just maybe, if we helped you to raise your credit score by more than a few points, you would consider choosing one of our sponsors to grant you that low interest rate mortgage loan.  Either way, I want you to have a higher FICO and the only investment that is required on this site is that of time, 30 minutes to be exact. (more…)

October 29, 2006

TransUnion & The Dispute Process

“Therefore, the reinvestigation process set forth in the FCRA places the consumer reporting agency as the intermediary between the consumer and the data furnisher, in essence the arbitrator of disputes.  This intermediary role, the highly competitive nature of the consumer credit reporting industry, and the consumers moral quandary to question not only ‘inaccurate’ information but all negative information, has caused the consumer reporting industry to incur millions of dollars of costs, incur the scorn of consumers and customers, and be an imperfect process.”

John W. Blenke
Executive Vice President
TransUnion

(source=ftc.gov/os/comments/fcradispute/OP-1209_092.htm)

October 27, 2006

What Your Credit Report Says About You

Our economy is based on credit. Most people finance their homes with mortgages and pay for their cars with loans. Young people often obtain loans to pay for college. And, of course, countless people routinely make purchases with credit cards. (more…)

October 26, 2006

Credit Score Confusion

Filed under: Credit Scores,FICO

What’s your credit score?  Well, that all depends on which credit score you’re referring to.  The Fair, Isaac Score, commonly referred to as FICO, is by far the most widely used.  OK, so what’s your FICO score?  Sorry, it’s not that simple.  Are you applying for a mortgage or an auto loan?  FICO has a separate model for both the mortgage and auto industry.  As a matter of fact, there are different scoring models for bankcard, personal finance, and installment loans.  There are also credit scores utilized by insurance agencies.  To top it all off, the credit bureaus will sell you a credit score that some have dubbed FAKOs, because they differ from the FICO scores utilized by lenders.  Let’s take a more in depth look at what this author calls credit score confusion. (more…)

October 25, 2006

Identity theft – the crime that isn’t going away

Jax Nixon, Missouri’s Attorney General, in an article with the above title has stated “Identity theft has been in the news consistently for the last several years, and what we know about this crime continues to change. Each year there are new statistics, threats discovered and sales pitches offering everything from insurance to credit monitoring to shredding services.  So let me try to clear a few things up, cut through the clutter and give you the basic information the savvy consumer needs.” (more…)

October 24, 2006

Credit Repair – The Best Things in Life are FREE

Credit Repair, credit repair, credit repair – an internet search for ‘credit repair’ yields tens of millions of websites offering information on credit repair for a price.  Credit repair services for a fee, credit repair books, and credit repair this and that – please enter your pay pal information.  It’s discouraging to say the least; a search for ‘free credit repair’ seems to yield the same results, the same ‘for profit’ companies selling their credit repair wares.  Does that sound like ‘free credit repair’ to you?  Me neither.  So for an apparent change of pace, you are presently reading the words of an author who truly believes that ‘free’ means ‘free’.  With this in mind, let the reader know that the Broken Credit Blog is your source for ‘free credit repair’ and this because you and I share the same dictionary.  For the record, my dictionary defines ‘free’ as an adverb meaning ‘without charge’. (more…)

October 23, 2006

Credit Inquiries – Tiptoeing Through a Minefield

There’s a right way to do things and a wrong way.  Success and failure are dependent upon that path chosen – good or bad.  Far be it from me, to know the right way for you to go and not tell you.  Whether or not the reader heeds my words is another matter.  I have seen the minefield of credit inquiries and how the sudden appearance of miscalculated inquiries can devastate a credit score.  Watch that step, a little to the left, now forward, NO NOT THAT WAY – KABOOM!!! (more…)

October 21, 2006

The Cosigner for the Astronaut’s Condo

Filed under: Mortgage,Real Estate

Cosigning for an Astronaut on Mars

I understand you want to cosign for the astronaut who applied to buy the condo on Mars. Tell me, how can I be sure you will actually occupy the subject property as your primary residence?

October 20, 2006

For People on Debt Management Plans: A Must-Do List

Reputable credit counseling organizations employ counselors who are certified and trained in consumer credit, money and debt management, and budgeting. Those organizations that are nonprofit have a legal obligation to provide education and counseling.

But not all credit counseling organizations provide these services. Some charge high fees, not all of which are disclosed, or urge you to make “voluntary” contributions that can cause you to fall deeper into debt. Many claim that a debt management plan is your only option before they spend time reviewing your financial situation, and offer little or no consumer education and counseling. Others misrepresent their nonprofit status or fraudulently obtained nonprofit status by misrepresenting their business practices to regulators. (more…)

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