The Truth About Increasing Your Credit Score And What Really Works

The Ultimate Solution to Fix Credit Report Errors

There are millions of people with errors in their credit reports and some don’t even know it and others cannot get the errors fixed. In fact, CBS news estimated that as many as 80% of the public has errors.

The first step, as en educated consumer, is to look at your credit report. Review it carefully. You can get a free copy of your credit report from the three major credit bureaus: Experian, Equifax and Transunion at You can get this free copy once annually and I recommend you put a date on your calendar to get it each year.

Errors in your credit file can create significant problems for you such as:

a. The failure to qualify to purchase a home, refinance a mortgage or get a car loan
b. A credit score that is lower than it should be resulting in your being charged higher rates for credit

Most people are able to get the credit report errors fixed simply by following the steps outlined by the Fair Credit Reporting Act:

  1. Write to the credit bureau and tell them of your error and with the documentation (the evidence or proof) that you are correct. This could be something like a cancelled check or statement copies showing that a debt has been paid.
  2. Send the same item to the creditor (the company that loaned you money).
  3. Hopefully, within 30 days, you will get a notice that the error has been fixed. But in many cases, you will get no result.

Understand that the credit report bureaus will simply take your request and pass it along to the creditor. If the lender then reports back to the credit bureau stating that the information is accurate, the credit bureau will simply send you a letter stating that they have verified the information in their files. Since you have already also sent the same request to the creditor, if they also state that they believe the information they have (the error) is accurate, you are then stuck. There is little you can do under the law, until you read how I solved this problem.

On two occasions, with two different well-known financial companies. I wasted several months attempting to get my credit report errors fixed through the normal channels first with the credit bureaus and then directly with the creditors. I even employed a firm which advertises prolifically about helping to fix credit errors and they simply sent the same letters I had already sent and they got the same result. I then found the ultimate solution. I sued the creditors in small claims court. Within 60 days my credit reports errors were fixed and I even received $2,500 from one lender as damages.

Using small claims court is tremendously effective for five reasons:

  1. It is fast. Your total time investment is maybe 4 hours as compared to hours, weeks and months of delay when you do this the old way by sending letters and making calls
  2. In some states, the creditor cannot deal as they would like. Normally, any formal legal action is handled by their legal department and they have a well-structured process for responding through legal channels (by having a contract attorney in your state fight you). However, in a few states. their lawyers are of no value as lawyers are not permitted in small claims court. This means that the creditor, in order to appear or respond, must do so with their non-legal employees. This is inconvenient and expensive for them as they don’t have a system for this. It’s much easier for the creditor to just fix your credit report.
  3. In states where the creditor can use their legal department to respond, the problem is that the response must be by appearance at a hearing. In other types of court, issues can be handled by mail and fax. Not so with small claims – only personal appearance will suffice. This is expensive because someone representing the creditor might need to get on a plane and invest a lot of hours and expense in dealing with your complaint. It’s much easier for the creditor to just fix credit report.
  4. Filing a formal legal action is the only way to get the attention of anyone with intelligence or authority at the creditor (and for these credit report issues, a small claims action is much better than the normal type of suit that people file). Until you have your small claim delivered to your creditor, you’ll be dealing with clerks and automatons who simply repeat the same company policy over and over and you get nowhere. Once your claim arrives at their office, you get the attention of intelligent people; in many cases, it becomes quickly apparent to them that they need to change the reporting on your credit report.
  5. It is inexpensive to use the small claims system. You get the attention of the right people at the credit bureaus and the lender and make yourself a thorn in their side for under $100, which is the typical cost of filing a claim in small claims court.
  6. Don’t waste weeks and months of time and have lots of grief and irritation. You can learn how to use a small claims to fix your credit report errors fast.

Could Credit Cards Could Be Hurting Your Credit Score More Than You Think?

According to the Consumer Financial Protection Bureau’s new report, credit cards might be hurting your credit score more than you know. The major agencies who collect debt information and provide credit scores are Transunion, Equifax, and Experion. These companies are responsible for calculating and providing your credit score to lenders. The score helps lenders determine loan amounts, loan interest rates, how likely you are to pay back the loan, and if they should loan to you at all. Along with mortgage loans, auto loans, and educational loans, credit card histories can also impact your credit history.

Statistics published with the CFPB show that approximately 57% of the credit lines on your average credit report are taken up by your credit card history. The remaining 43% are filled with mortgage loans (7%), educational loans (7%), debt collection agencies (13%), and auto loans (16%). Although the visibility of your credit card history on your credit report does not affect credit score calculations, it could affect your overall image with the lender more than it should.

Regardless, late card payments do hold weight and when it comes to your credit score, being behind on your card payments is considered only slightly better than being behind on a mortgage payment. When you have a high credit score of say 900 points, a 60 day late card payment might lose you 85-100 point whereas a late mortgage payment might lose you around 100-120 points. Although, using an example of a more average consumer with a score of say 750 and a 60 day late on a credit card payment, they could lose anywhere between 70-90 points which roughly equivalent to a 60 day late mortgage or car payment.

In the world of lending, multiple loans also weigh into your credit score more heavily than individual loans of the same monetary value. For example, let us say you had 5 small loans and you were late on all of them and you were also late on one large loan that happened to be worth the same amount of money as the 5 small loans together. Let us also assume that with the 5 small loans, the money you were late on added up to the same amount as the money you were late on with the one big loan. In this scenario, your credit score would more negatively affected by late payments on the 5 small loans than it would be by the late payment on the one large loan even though the monetary values are the same.

With consumers often carrying more than one card, late payments on credit cards can cause serious damage to credit scores. Often times consumers would never dare let a mortgage, auto, or educational loan slip but many times we don’t worry too much about those late card payments. Paying attention to your cards and making sure they are paid on time can save you credit down the road. A helpful tip might be to lighten your purse or wallet by getting rid of some of those excess cards you don’t need.

Advantages Of Banking Online

Mona, a single mother, works in a private organization and has an engaging and hectic schedule throughout the week. She always has to seek help from friends or relatives when she needs to go to the bank to deposit some money or withdraw as she hardly has any spare time to do so.

There are many people like her who face difficulty in taking out the time to visit the bank often. It’s like another task added to their already packed to-do list. However, as technology advances, the more easy and convenient our lives are becoming. So, if you are thinking whether there is any solution that technology has to offer to you in this situation; well, the answer is in the affirmative.

Today, the internet-based services offered by banks allow customers to conduct financial transactions on a secured website, which is controlled and operated by the banks themselves. Referred to as ‘Online- Banking’ or ‘E-Banking’, these have completely transformed the way we do banking.

Online banking is basically a facility which allows you to perform banking activities from the comfort of your home/office through the internet. It has made life so much easier as it is more convenient and hassle-free. As a customer, you can control your finances at any time through this wonderful facility. All you need a laptop or a PC with an internet connection. Banking through internet has become faster and more pleasant. It also leads to a reduction of a lot of cumbersome administrative work of the banks, thereby saving them a lot of money and plenty of your time.

Banking can now be divided into two types, traditional and online. Traditional banking provides physical presence along with the online facility whereas online banking is done virtually. For accessing the online banking facility, a customer needs to register with the bank which is a fairly simple step. Next, they’d be provided with a login ID and a password through which the customer can access a host of banking facilities online.

Apart from the common features like viewing account balances, ordering cheque books, downloading bank statements etc., E-banking also provides features such as home loan EMI calculator and home loan interest rate. Home loan EMI calculator helps you in ascertaining whether a particular loan is affordable for you or not. You’d not need to visit a bank or meet an executive for this purpose anymore.

All these services and many more are now available at the click of the mouse. All you need to do is to go the banking website, log in and get the service you are looking for. It’s really that simple!

It’s true that physical banking provides a certain kind of reassurance and trust however being dynamic is an asset. Online banking has proved to be extremely advantageous for those with extremely busy professional as well as personal lives. It is time you seek the guidance of your banking personnel and access your bank account online.

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