They Will End Up Making More Money When They Are Able To Approve You!

When you don’t have any say in what happens with your credit report and the information contained in it, you are at the mercy of the credit bureaus and lenders, which is not a good place to be because they ultimately are only concerned with their profits and you are not able to get the items you need on credit.

They could care less how bad your credit rating repair is, or if there are errors, misleading, incomplete or unverifiable negatives on your report. The more of these items appear on reports, the more money they can make from higher interest rates when you do find someone that will approve you.

It is estimated that roughly 79% of credit reports contain errors. This is costing consumers millions of dollars per year from higher interest rates as a result of these errors, and that’s not including negative accounts that should NOT be on credit reports according to the law.

At the end of the day it puts more profits in the pockets of the credit bureaus biggest customers… the lenders!
Herschel

Today is slightly different than usual but Eric Reque a consultant in the Atlanta area sent this to me a while back and I thought I’d share it with you …

This article was in Broker Universe today

Expert: Medical Collections Stopping Refi Opportunities

By Brad Finkelstein

PLANO, TX – According to a top producer of government mortgages, few borrowers are able to take advantage of the steep decline in interest rates, not just because of tighter lending standards and declining home values, but because of issues on their credit reports, specifically medical collections.

According to Rodney Anderson, executive director and senior managing partner of Rodney Anderson Lending Services here, 45% of the 1,701 loan applications he received between June and September 2008 had borrowers with at least one medical collection account. “In evaluating these loans, we uncovered a huge injustice against the American public,” says Mr. Anderson. “The tragedy is that the collection accounts, even those that have been paid in full, are lowering these individuals’ credit scores, often to the point that they either can’t qualify for a loan, or will have to pay higher interest rates if they do.”

He explains that medical collections are particularly problematic because of four main issues:

· Medical billing is a notoriously error-prone arena

· Many individuals with medical collection accounts never received the bill in question

· Medical collection accounts customarily remain on a credit report for seven years after the individual has settled or paid the account in full

· Medical collection accounts can reduce a credit score by as much as 100 points, sometimes more.

“Based on our extensive research, we can surmise that nearly half of Americans have at least one medical collection debt that’s lowering their credit score,” says Mr. Anderson, who uses analytical software to evaluate free credit reports and determine how borrowers can best improve their own credit scores. In doing so, he found that medical collection accounts are routinely reducing borrowers’ credit scores by 60 to 100 points or more. “This is disastrous news for loan applicants, especially since earlier this year Fannie Mae and Freddie Mac started requiring higher credit scores to qualify for loans, and loan servicers of FHA and VA loans have implemented additional credit score-based premiums,” he adds.

So he has initiated a petition to create a federal law mandating the permanent removal of a paid or settled medical collection account from the consumer’s credit report within 30 days of settlement.

“I’ve seen many hard working, conscientious individuals who diligently address their monthly obligations, but because they unwittingly incurred a medical collection account, are forced to settle for a mortgage rate that’s half a percent higher than if they’d never had that collection account,” adds Mr. Anderson. “That half point can translate into thousands of dollars in wasted money, and that’s only for a home loan. They can also expect higher rates for auto financing, credit cards and insurance. That’s a hard pill to swallow for the many individuals who were never notified of the initial billing and who have since paid the collection account in full. In this market, where interest rates and low home prices present the ideal time for buying, we need to make sure that individuals who deserve credit, get it.”

More information on the Credit 911 Medical Relief Bill is available at http://www.rodneyanderson.com/credit/medical_collections.php

Be Bold!

Herschel

There are several ways that your credit rating can be adversely affected.

Many times the items being reported to your credit bureau may be inaccurate. To help consumers protect their credit bureau reports, there are federal laws that can help in disputing negative items and restoring a consumer’s good name. Two of these laws are The FCRA and FACTA.

The FCRA is short for the Fair Credit Reporting Act. The FCRA protects you as a consumer in the event erroneous information is placed on your report by holding the credit agencies responsible for reporting accurate information. The FCRA, passed in 1970, provides consumers with certain protections which include the ability to request a copy of your credit report, dispute negative items on your report, and notification if a removed item has been re-entered into a consumers report. The list I have provided is a few of many rights that a consumer has under The Fair Credit Reporting Act.  To take advantage the Fair Credit Reporting Act it is important to stay on top or your credit rating by monitoring your credit on a consistent basis.

FACTA also known as Fair and Accurate Credit Transaction Act holds credit organization responsible for the way a consumer’s information is handled. This law was put in place to curve the rise of identity theft. The guidelines set by FACTA ensure that certain documents such as personal information are shredded by any organization that handles sensitive personal information.  FACTA also allows consumers the right to receive at least one free credit report per year.  In some states like Georgia the limit is 2 free reports per year.

These two important acts were put in place to give consumers a course of action to take in the event their credit information is ever compromised.  Surprisingly many people are not aware of these laws place in the books to protect them. Taking advantage of FCRA and FACTA is as simple as getting a free copy of your credit report.  If you have been a victim of Identity fraud and or you are having trouble disputing items on your credit report, you may want to review these acts to understand your rights.  Another option is to hire a reputable credit attorney to work in your favor to take advantage of your rights under the guidelines of these laws.

Ignorance of the law is not an excuse, especially when the law was put in place to aid and assist you.  To minimize your risk and maximize your safety, you should educate yourself on the benefits of the FCRA and FACTA.  It is also a wise decision to keep some form of identity protection and credit monitoring service.

Utility companies are getting into the fray of checking for credit worthy customers and tacking on an extra deposit or increased deposit because someone has a poor credit report. It seems it doesn’t take much anymore to cause a company to not trust you and tack on an extra fee, or higher interest rate, etc.

The solution here is to have a good credit score and keep it that way. However, there are those of you who started off on the wrong foot and need help to get things under control. By applying the secret tips in this book, you will realize a great increase in your credit score. However, managing your account correctly won’t get the negatives off your credit report and you will have to wait 7 years to 10 years to see them drop off. There is a better way. Go to the Credit Repair Attorneys Section and see what can be done to get your credit repaired.