Archive for February, 2008

Top 10 Credit Report Repair SCAMS – Consumer Beware

Friday, February 29th, 2008

I am sure we have all heard that you can get your credit report repaired if you hire a credit restoration company. They can repair it usually as long as you pay them around $1000.00 bucks to do so. According to the FTC, a credit repair company is not supposed to collect money from you until services are rendered. Hmmmmmmm. Good luck finding someone that will do that. Ok, here are the SCAMS.

1. I will increase your Credit Score 150 points in 30 days.
2. I will remove late payments on your credit report, even though you were actually late.
3. Don’t pay collections it hurts your credit
4. We can remove collections even though you owe the debt
5. We can remove Bankruptcies even though it’s still within 7 years.
6. We can remove a foreclosure, even though it’s still within 7 years.
7. We can remove judgments, even though you owe it.
8. We can remove tax liens even though you owe it.
9. If the balanced reporting is incorrect we can get collection removed
10. If the Bureaus do not respond to a dispute within 30days, they have to remove item in question.

I am sorry folks, but if you have debt you owe, it will be on there for 7 years from original collection date. No one can delete a debt you owe. I promise. Here is a good link for FTC facts on credit report repair SCAMS. Don’t get me wrong, there are credit restoration companies out there that provide disputes for inaccurate information, and are not SCAMS. Typically credit repair companies prey on the desperate, and take advantage of them. So be careful. I would also recommend pulling a current copy of your credit report, and make sure everything on there is accurate. You can actually do everything credit repair companies do for a fee for free yourself. You can go here for quick guide on how to dispute your credit report.

Author: Mike Clover

Are Credit Reports Racist?

Wednesday, February 27th, 2008

Could your credit report be a racist report? We all know racism is a problem in the U.S., but of course no one wants to admit it. Is it possible that when calculating your credit score your result was lower because of the color of your skin, or because of your sex? Do the Credit Bureaus even know what race you are, or your sex? These are some interesting questions that need to be answered in this article. The following does not determine your credit score according to MyFICO. MyFICO is the inventor of the FICO score that 90% of banks use to determine your creditworthiness.

The following does not determine your credit:

  1. Race, Color, Religion, national origin, sex and martial status
  2. your age
  3. Your salary, occupation, title, employer, date employed or employment history
  4. Where you live
  5. Interest rates currently being charged on any account
  6. Any items reported as child/family support obligations or rental agreements.
  7. Whether or not you are participating in a credit counseling of any kind.
  8. Any information not found in your credit report.
  9. Any information that is not proven to be predictive of future credit performance.
  10. Certain types of inquiries (requests for your credit report).

US law prohibits credit scoring from considering these facts, as well as any receipt of public assistance, or the exercise of any consumer right under the Consumer Credit Protection Act. It is good to know that your credit report is calculated on other factors.

Below is a good example of how your credit score is calculated.

Now you can see how credit reports are not predjustice, they calculate your credit based on the information provided in the pie chart above.

Don’t forget to learn what creditors already know. If you are in the market to make a purchase you might consider getting your free credit score report. That way you know what they will find out.

Credit Bureaus address and phone numbers

Monday, February 25th, 2008

Credit Bureaus address and phone numbers are listed here. We have also listed the online dispute links as well. Your one stop resource for all 3 Bureaus.

Bureaus Addresses and Phone numbers:

P.O. Box 740256
Alanta, GA 30374
(800) 797-7033

P.O. Box 9595
Allen, TX 75013
(800) 583-4080

Trans Union
P.O. Box 2000
Chester, PA 19022-2000
(800) 916-8800

On-line dispute for each bureau:

Dispute online

Dispute online

Dispute online

About the Author: Mike Clover is the owner of is the one of the most unique on-line resources for free credit score report, Internet identity theft software, secure credit cards, and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

FTC Credit Report Repair FACTS – For Consumers

Saturday, February 9th, 2008

The FTC claims that credit report Repair may be better for you if you do it yourself. You have seen advertisements on TV, local newspapers, internet. All of these credit report repair companies claim the following:
• “Credit Problem? No Problem!”
• “ We can get rid of bad credit problems – 100% guaranteed”
• “We can remove bankruptcies, judgments, bad loans and tax liens from your credit file forever

The FTC says “Don’t believe these statements. The only thing that will fix your credit is time, conscious effort, and a personal debt repayment plan will improve your credit report.

This article will explain how you can improve your creditworthiness and gives legitimate resources for low or no cost help.

The Scam

All over the US companies appeal to families and individuals that have bad credit problems. They promise for a fee, to clean up your credit report so you can get a car loan, a home mortgage, a job or even a insurance. The fact is, they cannot deliver. After you pay them hundred of dollars or even thousands of dollars in fees, these companies do absolutely nothing to improve your credit report. They typically vanish with your money says the FTC.

Warning Signs

If you feel credit repair with one of these companies is your choice, look out for the following.
• Companies that want you to pay before services are rendered
• Companies that don’t tell you your legal rights and what you cannot do yourself for free
• Companies that recommend that you don’t contact the credit reporting companies
• Companies that recommend you create a new identity by way of Identification Number.
• Companies that advise you to dispute all information in your credit report

Under the Credit Repair Organizations Act, credit repair companies cannot require you to pay until they have completed services they claim they can provide. The FTC says to get what they claim they can do in written, and once it is done then pay them.


No one can legally remove accurate information from you credit report. If you owe the debt, it will be on there for 7 years from original collection date. The law allows you the consumer to dispute inaccurate information on your report for FREE. There is no cost to you for doing this. Everything a credit repair company does for a fee, you can do it yourself for FREE. This is all in accordance to the Fair Credit Reporting Act (FCRA)

You are entitled to free credit report  if you are denied for the following
1. Credit Application
2. Insurance
3. Employment

You are to ask for this report within 60 days of receiving this notification. You are also entitled to the free report if you are unemployed and are about to apply for job, if you are on welfare, or if your report is inaccurate because of fraud including identity theft.

All 3 Credit Bureaus – Equifax, Trans Union and Experian are required to provide you once a year with a Free Credit Report. In order to get this report you must go to

You are allowed to dispute items that are not yours for free. Under the FCRA any company that is reporting information about you that is inaccurate, this information must be updated correctly. If you owe the debt it will not be removed.

Step One

The consumer credit reporting company that is reporting information incorrectly about you must be informed in writing what information is inaccurate. You are to include a copy of documents backing your claim. You are to clearly identify in the claim the following
1. Your full name
2. Address
3. The item in the report that you are disputing
4. The request that it should be removed or corrected
5. Enclose a copy of the report and circle the item in question.

Your credit report dispute letter may look something like this:

You’re Name
Mailing Address
City, State, Zip
Re: Disputing Inaccuracies on My Credit Report
Name of Credit Reporting Bureau
Mailing Address
City, State, Zip
Dear Sir or Madam:
I am writing for two (2) reasons:
1. To dispute certain information in my credit file; and
2. To have you investigate/re-investigate and remove inaccurate information from
my Credit Report and prevent its re-insertion. The item(s) I dispute are encircled
on the attached copy of the credit report and further identified by (identify the
items by name of source, such as creditor or tax court, etc. and identify type of
item, such as credit account, judgment, etc.)This item is (inaccurate or
incomplete) because (describe what is inaccurate or incomplete and why). I am
requesting that the item be deleted (or whatever specific change you are
requesting) to correct the information.(If you are enclosing documents such as
copies of cancelled checks, payment records, court documents, send copies
only, you should always retain the originals — and use the following sentence.)
Enclosed are copies of the following documents supporting my position:
Please reinvestigate this (these) matter(s) and (delete or correct) the disputed
items within the time frame required by the Fair Credit Reporting Act (FCRA) and
inform me in writing of the outcome. Thank you for your time and consideration in
this matter.
Your name

Once the investigation is complete, whether they removed the item or not, the creditor must give you something in writing. If the information was deemed incorrect, then they must remove it, and not put it back on your report.

Step Two

Advise the creditor or other information provider, in writing, that you dispute an item. Be sure to include copies only, not your original supporting your claim. The creditors usually provide an address for disputes. If the creditor reports the items to the 3 credit bureaus, they must include the dispute during the reporting time. If you are correct, the creditor must remove the item from the Bureaus it’s reporting too.

For information on “How to Dispute Credit Report Errors, go to

The reporting of correct information

When negative information is being reported about you, and it’s accurate the only way it will go away is with time. A consumer credit reporting company can report negative information about you for 7 years and bankruptcies for 10 years. Judgments can be reported for 7 years or until the statue of limitations run out.

Credit Repair Organization Act

By law credit repair companies must give you a copy of the “Consumer Credit File Rights Under State and Federal Law” before you sign any contract. They must also give you a written contract that specifies your rights and obligations. Read these documents carefully before you sign anything.
Example of what a credit report company cannot do:

• Charge you for anything until services have been completed
• Make false claims about there services
• Provide any services until they have your signature on a written contract and have completed a 3 day waiting period.
During this time you may cancel the contract without any fees occurred.
• Payment terms for services rendered, along with total cost
• Detailed description of services you are paying for
• How long it will take to achieve results
• Any guarantees they offer
• Company address and name

Check your Credit Report at least 4 to 5 times a year.

Even if you don’t have poor credit, you need to know what’s on your credit report. Here are some good reasons per the FTC.

• Because the information it contains may affect whether you get a loan and the payment terms for that loan
• Make sure the information is accurate, complete, and up to date before you apply for a mortgage, credit card, car, insurance or even a job.
• To help guard against identity theft

Hopefully this has shed some light on credit repair, and the importance of have a recent copy of your free credit report.


Disclaimer: This information has been compiled and provided by as an informational service to the public. While our goal is to provide information that will help consumers to manage their credit and debt, this information should not be considered legal advice. Such advice must be specific to the various circumstances of each person's situation, and the general information provided on these pages should not be used as a substitute for the advice of competent legal counsel.