Bad Credit folks helped by New FICOWritten by T.Pikus
(NextGen FICO Scores)New FICO Score eases bad credit repair as FICO Corp. 'relaxes' scoring model. Bad credit folks who sign up for Credit Counseling or Debt Consolidation plan hear this a lot: "your Beacon score is too low...", "you must improve your FICO score...". Little do they know that their FICO score may've improved already without them noticing. Every 5 points up counts! According to Fair Isaac Corporation (NYSE:FIC), new FICO is a more predictive and consumer friendly score now... And forget about Beacon score - name is NextGen now! What? You didn't know? According to research done by Bad Credit Advisor.com, it's true, most people don't know that three major credit agencies TransUnion, Experian and Equifax are now using new and more friendly NextGen scores. How people with bad credit history can benefit from these new and improved scores? They can get better rates. And more people will get loans, and for larger amounts... It would also help their credit repair! FICO NextGen scores go easier on Sub-prime loan seekers! On their web site, FICO Corp. states: [new scores] "... allow for more scoreable files (credit reports), updated treatment of mortgage and auto inquiries to better reflect consumer rate-shopping (low interest rates), and more consumer-friendly treatment of finance trades(!) and low-balance collections(!) and public records(!)." Why these improvements? Bad Credit Advisor thinks that FICO Corp. is trying to meet sub-lenders requirements for more applications processed and better interest rates offered. With such low rates, sub-lenders are making all money by giving 'great' deals to people with bad credit history. The new scores let more people in range of allowed FICO scores, thus creating more business for lenders. And keeping housing industry strong.
| | How to Dispute Credit Report ErrorsWritten by Omar M. Omar
Your credit report--a type of consumer report--contains information about where you work and live and how you pay your bills. It also may show whether you've been sued or arrested or have filed for bankruptcy. Companies called consumer reporting agencies (CRAs) or credit bureaus compile and sell your credit report to businesses. Because businesses use this information to evaluate your applications for credit, insurance, employment, and other purposes allowed by Fair Credit Reporting Act (FCRA), it's important that information in your report is complete and accurate. Some financial advisors suggest that you periodically review your credit report for inaccuracies or omissions. This could be especially important if you're considering making a major purchase, such as buying a home. Checking in advance on accuracy of information in your credit file could speed credit-granting process. Getting Your Credit Report If you've been denied credit, insurance, or employment because of information supplied by a CRA, FCRA says company you applied to must give you CRA's name, address, and telephone number. If you contact agency for a copy of your report within 60 days of receiving a denial notice, report is free. In addition, you're entitled to one free copy of your report a year if you certify in writing that (1) you're unemployed and plan to look for a job within 60 days, (2) you're on welfare, or (3) your report is inaccurate because of fraud. Otherwise, a CRA may charge you up to $9.00 for a copy of your report. If you simply want a copy of your report, call CRAs listed in Yellow Pages under "credit" or "credit rating and reporting." Call each credit bureau listed since more than one agency may have a file on you, some with different information. The three major national credit bureaus are: ·Equifax, P.O. Box 740241, Atlanta, GA 30374-0241; (800) 685-1111. ·Experian P.O. Box 2002, Allen, TX 75013; (888) EXPERIAN (397-3742). ·Trans Union, P.O. Box 1000, Chester, PA 19022; (800) 916-8800. Correcting ErrorsUnder FCRA, both CRA and organization that provided information to CRA, such as a bank or credit card company, have responsibilities for correcting inaccurate or incomplete information in your report. To protect all your rights under law, contact both CRA and information provider. First, tell CRA in writing what information you believe is inaccurate. Include copies (NOT originals) of documents that support your position. In addition to providing your complete name and address, your letter should clearly identify each item in your report you dispute, state facts and explain why you dispute information, and request deletion or correction. You may want to enclose a copy of your report with items in question circled. Your letter may look something like sample below. Send your letter by certified mail, return receipt requested, so you can document what CRA received. Keep copies of your dispute letter and enclosures. CRAs must reinvestigate items in question--usually within 30 days--unless they consider your dispute frivolous. They also must forward all relevant data you provide about dispute to information provider. After information provider receives notice of a dispute from CRA, it must investigate, review all relevant information provided by CRA, and report results to CRA. If information provider finds disputed information to be inaccurate, it must notify all nationwide CRAs so they can correct this information in your file. l Disputed information that cannot be verified must be deleted from your file. ·If your report contains erroneous information, CRA must correct it. ·If an item is incomplete, CRA must complete it. For example, if your file showed that you were late making payments, but failed to show that you were no longer delinquent, CRA must show that you're current. ·If your file shows an account that belongs only to another person, CRA must delete it.
|
