Archive for August 30, 2014

Too Many Americans Are Completely Clueless About How Credit Scores Work

Too Many Americans Are Completely Clueless About How Credit Scores Work
News from Businessinsider India:

Flickr / Rebecca Selah

Credit card companies don’t control your credit score?!

A new survey by BMO Harris Bank of 1,500 Americans reveals that 80% of us feel like we know how to get good credit.

In further questioning, however, we came up a bit short.

Here are a few of the statements the survey asked respondents to declare true or untrue.

The catch? Not one of them is true.

Your credit score improves if you carry a balance on your credit card.
30% agreed true.

A balance i…………… continues on Businessinsider India

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FTC Seeks to Shut Down Phony Debt Relief and Credit Repair Scheme

FTC Seeks to Shut Down Phony Debt Relief and Credit Repair Scheme
News from Kansas City infoZine:

 

Washington DC – infoZine – The FTC’s complaint targets the operators of two websites that were allegedly full of misrepresentations about the fake program, which they called the “Bill Payment Government Assistance Program.” The sites claimed that the program was governed by the Recovery Accountability and Transparency Board, a government agency formed to oversee projects funded by the American Recovery and Reinvestment Act of 2009.

Beyond claiming affiliations with and/or endorsements from the Recovery Board, the Department of Treasury, and other federal agencies, the complaint alleges that YouTube videos created by the scam’s operators included a purported personal endorsement from the President with an audio recording of him saying, “I approve this message.”

The complaint alleges that the defendants purported to offer up to $ 75,000 in debt relief to consumers, along with promises that consumers’ credit scores would “increase within 30 days.” Consumers contacting the scammers, according to the complaint, were told that in exchange for an advance “service charge” of $ 900 to $ 1,100, the defendants would pay off the consumers’ debts.

According to the complaint, scammers would ask consumers for details of their outstanding debt, including account num…………… continues on Kansas City infoZine

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http://www.LegacyLegal.com If you have decided that you don’t want to tackle your credit repair issues on your own and that hiring a third-party credit repai…

3 Crucial Steps Toward Credit Repair

3 Crucial Steps Toward Credit Repair
News from Motley Fool:

If your credit is bad, or not as good as you would like, there is no time like the present to get things moving on the right path. After all, your credit report and score are fluid, meaning that they simply indicate how strong your creditworthiness is now. What they look like in the future is up to you.

There are some credit repair steps you can take now, and with a little effort, you could begin to notice your credit improve very soon.

Know where you stand
You can’t really start fixing your credit unless you know what’s wrong. Fortunately, by law, you are entitled to a copy of your credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) absolutely free of charge once a year.

You can request your reports at this website set up by the credit bureaus. Be aware that most places advertising a “free credit report” are not part of this program, and will require you to sign up for a credit monitoring service. The actual annual credit report site will not ask for your credit card information or any monetary commitment whatsoever.

Once you have obtained your credit reports, go through them and highlight any negative entries…………… continues on Motley Fool

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Feds call for shutdown of bogus debt relief and credit repair scheme
News from ConsumerAffairs:

© John Takai – Fotolia.com

The Federal Trade Commission (FTC) wants a federal court to drop the hammer on a debt relief scam that claims to have the endorsement of President Obama .

According to the FTC, two websites promoting what is called the “Bill Payment Government Assistance Program,” are full of misrepresentations about the fake program.

The sites claim the program was governed by the Recovery Accountability and Transparency Board, a government agency formed to oversee projects funded by the American Recovery and Reinvestment Act of 2009.

In addition, YouTube videos created by the scam’s operators included a purported personal endorsement from the president with an audio recording of him saying, “I approve this message.”

Via YouTube

Cleaning up your credit

The FTC’s complaint alleges that the defendants purported to offer up to $ 75,000 in debt relief to consumers, along with promises that consumers’ credit scores would “increase within 30 days.”

Consumers contacting the scammers, according to the complaint, were told that in exchange for an advance “service charge” of $ 900 to $ 1,100, the defendants would pay off the consumers’ debts.

According to the complaint, scammers would ask consumers for details of their outstanding debt, including account numbers, and then arrange bogus electronic pa…………… continues on ConsumerAffairs

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FTC Asks Court to Shut Down Phony Debt Relief and Credit Repair Scheme

FTC Asks Court to Shut Down Phony Debt Relief and Credit Repair Scheme
News from ACA International:

The Federal Trade Commission has asked a federal court to shut down a scam that targeted financially distressed Americans  through a phony debt relief and credit repair program.

The FTC’s complaint targets the operators of two websites that were allegedly full of misrepresentations about the fake program, which they called the “Bill Payment Government Assistance Program.” The sites claimed that the program was governed by the Recovery Accountability and Transparency Board, a government agency formed to oversee projects funded by the American Recovery and Reinvestment Act of 2009.

The false claims include that the program was provided and funded by the federal government and endorsed by President Barack Obama.
Beyond claiming affiliations with and/or endorsements from the Recovery Board, the U.S. Department of Treasury, and other federal agencies, the complaint alleges that YouTube videos created by the scam’s operators included a purported personal endorsement from the president with an audio recording of him saying, “I approve this message.”

The defendants allegedly purported to offer up to $ 75,000 in debt relief to consumers, along…………… continues on ACA International

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FTC Seeks Shutdown of Costly and Bogus Debt Relief, Credit Repair Scheme
News from eCreditDaily.com:

The two websites made some incredible claims about reducing consumers’ debt load and fixing their credit reports, and it was all supposedly backed by President Obama.

In reality, it’s a scam, the Federal Trade Commission told a federal court as the agency seeks to shut down another scheme that targeted financially distressed Americans.

The sites pitched a phony debt relief and credit repair program. Operators also falsely claimed the program was provided and funded by the federal government and endorsed by President Obama. The operators were not identified, but the scheme did business as American Bill Pay Organization and American Benefits Foundation, through the websites www.americanbillpay.org and www.benefitsfoundation.org, states the FTC’s complaint.

The FTC’s complaint targets the unnamed operators of two websites. They labeled the fake program the “Bill Payment Government Assistance Program.” The sites claimed that the program was governed by the Recovery Accountability and…………… continues on eCreditDaily.com

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http://www.LegacyLegal.com Repair Credit? Repair Credit Scores? Credit bureaus don’t like to repair credit or to repair credit scores. They make money by sel…

Credit scores to improve with settled debt, bills

Credit scores to improve with settled debt, bills
News from Pittsburgh Post Gazette:

Many consumers who have been denied credit or charged higher interest rates due to a low credit rating could soon be in a better position as the nation’s most widely used credit scoring agency is revamping how it computes credit scores.

Fair Issac Corp., creators of the FICO score, announced its calculations will no longer include any record of a consumer failing to pay a bill if the bill has been paid or settled with a collection agency. The new FICO score also will give less weight to unpaid medical bills that have gone to collection agencies.

FICO Score 9, as it’s been named, will be released to the three major credit bureaus this month. After testing and validating the new score, the credit bureaus will make it available to lenders later this year. Lenders must decide when they will begin using it.

The changes are expected to increase the number of people approved for loans, especially those shut out of the credit market due to medical debt sent to collection agencies. FICO representatives said consumers whose only major flaw on their credit reports is medical debt collections will see their scores increase by a median 25 points.

More than 64 million consumers in the U.S. have medical debt collections on their reports, according to credit reporting agency Experian. The Federal Reserve Board reports over half of all collections listed on…………… continues on Pittsburgh Post Gazette

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COSL blasts credit repair companies

COSL blasts credit repair companies
News from Broker News Australia:

The Credit Ombudsman has delivered harsh words to credit repair companies.

COSL has announced it is proposing to no longer deal with representatives of consumers – namely credit repair companies – “who behave badly”.  Ombudsman Raj Venga warned consumers to be wary of credit repair companies who claim to be able to improve credit reports, and said many companies charge considerable fees.

“We have seen instances of consumers being charged an upfront fee of up to $ 900, and then around $ 1,000 per default listing, even when the debt for which the consumer was default listed is under $ 500,” Venga said.

Venga said COSL is routinely approached by credit repair firms, while its services are already provided to consumers at no charge. He said consumers could be paying significant amounts of money to access a service that is already available to them free of charge.</…………… continues on Broker News Australia

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10 Ways To Improve Your Credit Report

10 Ways To Improve Your Credit Report
News from Investopedia:

The ability to access credit can make life a lot simpler. From everyday items such as gas and groceries to big-ticket purchases such as cars and houses, most people rely on some form of credit. To make sure you can get that credit when you need it, it’s important to have a good credit report. Check yours regularly (see Top Places To Get A Free Credit Score or Report). If your credit rating could use a little boost, here are 10 tips that will help you improve your score.

1. Fix the Facts

There are three major national credit bureaus: Equifax, Experian and TransUnion. Credit card issuers, banks and other entities rely on reports created by these bureaus to help them judge the credi…………… continues on Investopedia

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FICO’s new model set to improve consumer credit scores
News from Market Intelligence Center:

Fair Isaac Corporation (FICO), a leading personal credit score provider, is implementing a new credit analysis scoring model, which will give less weight to unpaid medical bills. The new system will improve the credit record of many borrowers, and will also enhance the risk-assessment capability of lenders. Investors were neutral to the news as share price was flat over the subsequent trading session.

The new model, known as FICO Score 9, is supposed to make obtaining loans easier for consumers who have settled bad debt, or have overdue medical payments.

The scores of Fair Isaac, a software analytics company, are the most comprehensively used credit-scoring formula in the U.S., influencing lending decisions such as setting interest rates on home loans or issuing credit cards. The company developed FICO Score 9 after some of its biggest customers, including major lending institutions and regulators, reportedly suggested that overdue medical debt was unduly weighing on consumers’ credit scores.

Additionally, a study by the Consumer Financial Protection Bureau, based on five million anonymous credit records, revealed that consumers may have been overly penalized for medical debt compared with othe…………… continues on Market Intelligence Center

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Money Talks News: Should You Pay for Credit Repair?

Money Talks News: Should You Pay for Credit Repair?
News from KGBT-TV:

“I had a guy come in who had never had a house; no one in his family had ever been a homeowner. We were able to put him in a position to get a loan approval. He has a house now. He’s the first person in his entire family to do so.”

Chris Harvey is in the business of credit correction: repairing your credit history so it reflects the highest possible credit score.

Most consumer advocates, including yours truly, would say you should never pay someone to repair your credit, for a simple reason: There’s nothing a service can do that you can’t do yourself free. What would a pro say to that?

“The service we offer is so much more than just basic credit repair. We really focus in on credit coaching. We also have an alliance with a law firm, so an attorney is going to be representing you in addressing these issues.”

But most people don’t need those services, and you can do it yourself.

Step one? Get a free copy of your credit report from each of the big three credit reporting agencies at annualcreditreport.com. Then stare at em.

Look for errors, like an account that’s not yours, or a bad mark that’s should have aged off your report. Fix any mistakes by disputing them either online or by writing…………… continues on KGBT-TV

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ANITA JOHNSON: Get the Best Financial Management Strategies For Improving …

ANITA JOHNSON: Get the Best Financial Management Strategies For Improving …
News from Sacramento Observer:

OPINION – Most lenders or banks usually look at the credit score before they can approve any loan application from their customers. Because of this reason, many people want to learn how they can rebuild their credit as quickly as possible, to improve their chances of getting their application approved.

This article is going to talk about several recommended strategies to manage your finances and ultimately improve your credit. These tip are useful for anyone who wants to have good financial management skills.

How to Improve Your Credit Score

1. Diagnose the credit score

Get a copy of your credit report and diagnose the credit score. You have to know where you are before you can find out where you have to be. There are sites that allow you to get your consumer credit report and offer score estimators at no additional costs. This gives you the flexibility to see potential changes that can be made to your credit profile and improve your score.

2. Reduce debts

Reducing debt can impact your credit score by as much as 30%. It is one of the easiest ways to improve the credit score in a short period of time. There are a lot of debts that can affect the overall finance situation, but reducing revolving debt or credit card debt to below 30% of the limit will have increased the score most significantly.

3. Get back involved in th…………… continues on Sacramento Observer

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How to improve your credit score after late payments
News from Today.com:

personal-finance

Aug. 5, 2014 at 9:25 AM ET

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How to improve credit score where better credit is due

How to improve credit score where better credit is due
News from USA TODAY:

Sharon Epperson, CNBC 9:03 a.m. EDT August 10, 2014

15

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These Are the 5 Best Ways to Improve Your Credit Score
News from TIME:

How to Improve Your FICO Credit Score – 1

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