Fix Your Credit Report Score

Good credit scores vary according to the type of lender.

Mortgage lenders tend to give you the best rate if your score is 680 and above

while vehicle lenders are a little bit more harsh as they prefer 700 and above.

An acceptable score has more to do with what you have showing on your credit report.

If you have delinquencies then mortgage lenders prefer

that they be at least 2 yrs or older and you generally

cannot have any open collections accounts.

Vehicle lenders are a little bit more lenient on collections accounts

but prefer that delinquent accounts be part of your distant past.

If the delinquency is related to the type of loan you are currently trying

to take out then your rate will probably be higher than you want.

This page contains information about the following:

• Get a free copy of your credit report so you can see what is on it
• Dispute, correct or remove derogatory or inaccurate information
• How to stop creditor harassment
• How to negotiate a debt settlement
  
• Wage And Bank Garnishment
  

Many of us have seen the free credit report commercials thinking that is where we go to get it for free. Wrong, the correct website to get your credit report for free is annualcreditreport.com or call 1-877-322-8228. You may also complete the form on the Federal Trade Commission's website. This report will only provide you with what is on your credit report once a year and does not contain your credit score.

If you have recently been denied for credit, refused employment or had identity theft, by federal law, you may request a copy of your credit report from the agency that provided the information or all of them if you experienced identity theft. You have the right to see what is on your credit report if it has adversely affected you.

You have two options. You can either dispute derogatory information directly with the creditor and have it corrected immediately or you can submit your request to dispute credit information with the credit agencies.

Option 1: To dispute directly with your creditor.

• Contact customer service or the creditor’s collection department to open an investigation on the alleged delinquency and supply all supporting documentation to support your claim.
• If your information proves that there was not a delinquency then you may ask the creditor to remove any derogatory information immediately and any penalties incurred because of it. You may also have the option to sue for punitive damages incurred for their wrong doing such as if you received a higher interest rate due to their negligence. (provide link to information regarding suing or how the person may receive compensation for wrong doing).

Option 2: Dispute/Correct/Remove Derogatory or Inaccurate information with the credit agencies.

With this option you can either go online to dispute or write a letter.

• I prefer and recommend that you write a letter as there is more flexibility with the written letter whereas the online forms usually restrict you to certain options.

• The letter should identify your name and contact information as well as the accounts which you are disputing and the reason along with your request to remove or delete the inaccurate information.
  
• Keep a copy of the letter for yourself and send a copy by certified mail so that there is proof of the date they received it.

• The credit agency will then contact your creditor on which information you are disputing to verify its accuracy. The creditor has 30 days on which to validate the information. If they do not verify the information within the 30 day time frame, the credit agency will automatically delete or remove the derogatory information (Christmas season is the most frequent time when this happens due to staff shortages) and send you a copy of your credit report displaying removal. If the debt is valid or if the creditor has not yet updated payment information in its system then it is possible for the derogatory information to reappear on your credit report within 30 to 90 days depending on the creditor’s reporting period in which case you may temporarily have a higher credit score. Otherwise, to permanently delete it you will need to contact the creditor directly and correct it with them.
• In certain cases where inaccurate bad debt continuously reappears on your credit report you should first contact your local attorney general's office to advise you on what to do next. Your next step is to report them to the Federal Trade Commission if nothing results from following the advisement of your local attorney general. You also have the right to sue for punitive damages caused by your creditor's erroneous reporting.
  

Collection agencies are infamous for bombarding consumers with harassing phone calls and collections letters during the months or years following reported delinquencies on an account. Here are your rights and what to do to stop them without admitting fault.

• Debt collectors should not be contacting you at inconvenient hours (before 8;am or after 9:pm) or places. If they call you at work, you may ask them respectfully not to contact you at work as you are not allowed to engage in personal calls during your work hours. This usually works and the calls from that creditor will cease almost immediately. If they ask you for an alternative method of contact, you may tell them that you cannot speak about the matter while you are work and take their number. You can then proceed to the next step below.
  

• If they send you letters or you just want to make sure they don't call again, you can send them a letter back asking them to cease written and telephone communications as allowed under federal law in the Fair Debt Collections Act. You can also explain to them that you are not admitting fault and that at a future time when things in your life are settled/calmer/better you will initiate contact with them to discuss the matter at hand (do not provide a date).
  

Persuant to the Fair Debt Collection Practices Act rules and guidelines, credit collection agencies should not be engaging in abusive, unfair, or deceptive practices to collect money from you. That includes threatening behavior such as to garnish your wages or take you to court without actually intending to do so. Nor should they be intimidating you by raising their voice or using vulgar language. If you are experiencing this kind of behavior you have the right to report them to the FCRA or you may submit a complaint to your local Attorney General’s office.

The debt collection agency may send you several letters while they are actively collecting. They will usually as you to pay it in full in the beginning or to agree to a payment schedule. If they are unable to commit you to either of their first options and as time goes by, they will be more apt to settle for less than the amount owed. Typically, I have seen them go down to at least 1/3 of the full amount.

• If you are unable to pay the full amount or would rather not make the payment amounts, the next option is to make an offer to settle for less than what is owed. They may reject your first offer and counter offer at first.
  
• If you call them explain to them your dire financial situation (multiple kids, single parent, unemployed/single wage earner, laid off) and that you happen to come across a lump sum of money and you wish to pay off the debt for less than the total amount.
  
• These people get commission for getting the most that they can from the debt. Stand firm with your amount as you do not have any other financial source to add to this amount. Eventually (after supposedly speaking with their boss, etc.) they can drop it down to less and possibly less.

• Make sure that you follow-up with a written letter on the agreed amount and that it is for payment in full so there is no question. When paying the settled amount, write a check and include a small statement that it is for settlement in full for the account (include the #) and a date. If the agency cashes it it they are settling in full for that amount, period. You can use this as proof that they agreed to that amount otherwise it should not be cashed by the collector and the reason for including the date is so that they don't hang onto the check forever.

A creditor or law firm may sue you for a legitimate debt. The process to sue is for the creditor/lawfirm to file a court order request to appear in court.

• They must deliver it directly to you or someone that knows you.
• You should not ignore the court order if delivered to you or someone you know otherwise you will lose your opportunity to fight a garnishment against you by default.
• The garnishment could be against your wages or your financial accounts.
• In court if you can prove that the debt was paid off or settled then it will be dropped.
• If you owe the debt then this is the opportunity to show the judge your financial situation for leniency on garnishment so instead of the maximum garnished it could be reduced to the minimum (different for each state).
• Garnishment could be reduced in single wage earning households or low wage earning households.
• Many types of federal benefits are exempt from garnishment including social security, SSI and Veterans Benefits except to pay delinquent taxes, alimony, child support or student loans.