National Resource of Credit Restoration

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DOES THIS MAKE CENTS?

In order to have a high credit score — which can mean lower loan rates — then you’ll need to do things that don’t sound quite right at first.

You pay your bills by the due date, so you expect a good credit score results, right? If only it were that simple.

In fact, your credit score is dependent upon a number of different things, not merely your payment history. Here’s where it gets downright strange: A number of the ways to improve your credit rating don’t even make sense financially.

Your score improves when you have a lot of loans. 10% of your score is dependent upon the types of credit used. That means that someone with car loans, education loans, and retail store accounts may possibly possess a better score than somebody who has just one type of loan, and way better than someone with none.

More credit cards often mean an improved score. Another 30% of your credit score is set, in part, by the quantity of credit you utilize. Although it makes sense that using less credit may help your score, it’s the other part of the equation — the quantity of credit you’ve got — that leads to this particular strange effect.

By opening more than just one or two credit cards, you are able to raise your available credit and lower the percentage of credit used. In the same manner that obtaining more credit cards reduces your overall credit utilization rate, asking for an increased limit will also achieve the same effect.

Pay off the Credit Card well before the due date. As someone who always pays his credit card balances promptly, I was astonished to see that my credit report demonstrated that I owed money on each of my cards.

The straightforward reason is that your balance on any given day can be reported to the credit bureaus as a debt. I’ll still pay my balance only on the due date, but I might pay earlier or avoid credit cards if I was attempting to raise my score to obtain a home loan.

Don’t cancel a credit card. Another 15% of your credit score is determined by the length of your credit history. Among the factors that’s included in this calculation is the average age of your open accounts.

Shop fast. It’s wise to take your time and research prices for the lowest mortgage, car, or student loan, right? In fact, FICO will count repetitive inquiries for new credit as just one inquiry so long as they are all done within 30 days. Take more time to request competitive loan offers and you risk harming your credit score by having lots of inquiries.

While credit scores are determined by mysterious formulas which are never completely disclosed, FICO among others provide us with numerous clues about what elements are included. By focusing on how the credit agencies view your finances, you can make the best decisions to increase your credit scores.

Transunion Hurting Clients

Your Credit Report is Talking: Are you Listening?

Everywhere you go you will notice commercials and articles discussing the significance of an individual’s credit score. Credit ratings affect every part of our financial lives –

qualifying for loans,
the interest rates we pay,
job opportunities,
and even insurance premiums.
Undoubtedly, your credit score has become one of the single most important considerations examined and considered by today’s financial institutions and potential employers. The info reported by the credit bureaus about you impacts nearly every portion of your financial life.

Not Happy About What It’s Saying?
Unfortunately, few people grasp what constitutes a correctable problem (is it valid, is it outdated, can it be verified) on a credit profile. Most are busy with everyday living – families, working, etc. and just don’t have the time to dedicate to researching their credit rights. Consequently, few consumers actually dispute their credit profiles effectively.
Identity theft further complicates the problem. Millions of Americans suffer from credit profiles corrupted by improper and illegal utilization of their particular credit information. All in all, people are saddled with the daunting task of navigating legal frameworks while disputing with unresponsive credit reporting agencies. This unbalanced playing field creates only one major loser – the American consumer.

MASTER CREDIT SOLUTIONS Makes Repairing credit Quick, Easy and Effective for YOU.
This is precisely where we come in. We’re here to assist you achieve your optimal credit profile. We work on your behalf demanding the credit bureaus and the creditors remove and resolve the issues.
At MCS, we’ve effectively challenged every kind of problem a credit profile can have and we’re waiting to assist you now. Allow us to show you the difference MCS can make for your credit right now.

WE ARE SECOND TO NONE IN THE REMOVAL OF ITEMS FROM CREDIT REPORTS!

THE PHONE: NOT A WAY TO PAY YOUR DEBTS

A large number of consumers in the United States are prey to fraudsters collecting phantom debts, amassing $5 million in losses. It caused the Federal Trade Commission to issue alerts to consumers to never pay debt collectors on the telephone without receiving written verification.

The phone calls, which appear in caller ID with local numbers, originate from a call facility in India. It’s the first time the FTC has handled complaints coming from India.

The U.S. District Court granted the FTC’s request for a restraining order in opposition to American Credit Crunchers, the organization the FTC alleges collected phantom payday loan debts. The California-based organization, as well as its owner, Varang Thaker, is now being faced with violating FTC regulations along with the operation’s assets having already been frozen.

The FTC claims the organization obtained private information from online applications that consumers completed for payday loans after which stated to be obtaining money that was due, even though consumers owed nothing.

The Fraudsters recited personal data and made threats, including getting in touch with their employer or proclaiming to be with the “Federal Department of Crime and Prevention.” Some other fraudsters claimed to be local law enforcement and threatened they would arrest the customer if they didn’t pay them within the next 2 hours. For example, JanLaree DeJulius of Las Vegas, the intimidating call came while at the office and, worrying they could arrest her at the job, she gave the caller hundreds of dollars.

On average, the FTC said the fraudsters commanded around $500. The phone calls originate from India, but caller IDs display local phone numbers, plus the callers often do not have Indian accents. Since January 2010, about 8 million phone calls have already been traced to this particular hoax, ending in 17,000 transactions.

The FTC recommends to consumers to not pay debt collectors who haven’t provided you with written verification and reminds consumers that debt collectors can’t make arrests or contact an employer.

This is a very easy fraud to perpetrate. You can obtain phone numbers through each and every Google account you have. How many Google accounts can you have? I do not think there is a limit. I have at least 10 phone numbers through Google, with 8 different area codes, and each one of these are an active, operating phone number in which I can make and receive phone calls.

TAKEAWAY: Never, but never, pay anyone over the phone, especially Collection Companies or Debt Collectors.

If you want, contact me and I will send you my book, “Debt Collectors: Lies, Damn Lies and Deceit” at no charge.

John Mackey

johnmackey@mastercreditsolutions.com

credit monitoring – a waste of time and money

CREDIT MONITORING IS A WASTE OF TIME AND MONEY

Credit monitoring as offered by Equifax, Experian and Transunion (and their subsidiaries) is not worth the money for most people. Besides, there are much better, and less expensive, choices if you need protection and want to reduce your danger. THE BOTTOM LINE IS THIS: CREDIT MONITORING DOES NOT STOP OR EVEN CURTAIL FRAUD.

They lie

Many of these companies tout “free” credit scores and “free” credit reports, and some even try to pretend they’re the official, federally mandated site that offers free credit reports. The only site that is the official free site as mandated by law is www.annualcreditreport.com. However, you cannot get a score there. An official score is not free, at the current time. Why do they lie? They get you to sign up for their paid service. Believe me; the bureaus make a lot of money on the credit monitoring they sell to you, the unsuspecting consumer. (Atlanta-based Equifax had net income of $62.2 million in the fourth quarter of 2010).

If a credit-monitoring company gives you free scores, here’s the scoop: They’re probably not the FICO scores that most lenders use.

Here are some scores: Dallas Cowboys 34, New York Yankees 7. Or how about New York Knicks 102, Minnesota Wild 4. That’s not right you say – that is not fair. I am comparing scores of different sports. What the bureaus do is also not fair because they are using different scoring methods and different weighted systems. One bureau may give you a 646 (that is based on a 995 scoring system) while another, based on the FICO, gives you a 590 (out of 850), basing it off of the same data .If the scores you’re getting don’t say they’re FICOs, they aren’t FICOs — they’re something else, and they may not be scores that any lender uses.

AND THEY LIE AGAIN

When companies are upfront as to what they’re selling, they often advertise credit monitoring as identity-theft “protection. “It does not!! Credit monitoring doesn’t protect you from identity theft any more than a band aid protects you from getting cut. It may help a bit afterward, but it doesn’t prevent the cut.

Credit monitoring won’t stop bad guys from taking over your credit cards or setting up new accounts in your name. At best, it will give you an early alert that the damage has been done. The “insurance” policies many monitoring companies provide are fundamentally worthless, as most people who are victimized encounter few, if any, out-of-pocket expenses.

They’re Too Costly

You will pay $15 to $30 a month, or up to $360 a year, for credit monitoring. That’s a lot of money for many of us. For that kind of money, you should get something significantly greater than what you can to get. Most companies don’t watch your reports at all three credit reporting agencies, and not all creditors report to all three reporting agencies. That leads to gaps in what’s being monitored.

Also, creditors vary as to how often they report to the bureaus. Some report 3 times per year, some every other month, some once per month. Sometimes new accounts can take months to be reported to the bureaus – I have seen as much as 6 months, so you might not be getting as much of a head start on cleaning up any problems as you think.

Profiting from paranoia is OBSCENE
What is a credit report? Why, it is you! It is your information that they have collected. They have collected? I would even argue that – they charged a creditor the right to put that information on your report. They have made their data about you indispensible – everyone is using it. (Not to mention that a lot of the time it is wrong information). You should have access to your credit report once per month or even once per quarter FOR FREE!!! Why do not we receive this courtesy? Then the bureaus would find it much more difficult to sell us their product. And their product is paranoia based! I also think we should have free access to our FICO scores. The idea that these services would lure you into paying hundreds of dollars for data, by fanning your anxieties of identity theft, really stinks.
Here are the newest details of identity theft, as outlined by Javelin Research, which performs an annual survey on this problem:
• 3.6% of Americans were victims of identity theft this past year.
• 1.1% were victims of new-account fraud, the costliest type with regards to the total amount stolen. (The remainder was typically victims of existing-account fraud, including credit card fraud and other takeovers of active accounts.)
• The typical amount paid out of pocket by victims: zero, zilch, zip, nada .For many individuals, managing credit card fraud or an account takeover is as simple as reporting to the creditor.. The phony charges are erased, a new account number is issued, and life continues.
New-account fraud is really a much bigger concern. Although the typical victim doesn’t pay out of pocket, they spend a median of 25 hours resolving the deception.

John Mackey