Credit issues and tidbits

[Andrew Ikeda 0]

From: "andikeda2003" <andikeda@netscape.net>

To: mortgagementor@yahoogroups.com

 

(A posting from my yahoogroup mortgagementor chat group)

 

 

Greetings Everyone:

 

There are a lot of people interested in credit repair and

obtaining credit reports, etc, etc.

 

Last year, I went through a credit repair specialty group and

they did nothing for me. They dont and shouldnt collect any upfront

fees but rather, will collect the fees when the derogatory items are

taken off your credit report.

 

However, I have also since learned that it is as simple as just

contacting the credit bureaus and reporting any errors. This can be

done directly in writing. You will also want to contact the creditor

whom you have an issue with in writing also to report an error. The

agency (credit bureau) MUST investigate and respond within 30 days.

 

Be aware that some issues cannot be immediately removed, such as

a bankruptcy - even if it has been discharged. Items that can be

removed are things like a misdirected payment. I had a borrower who

accidentally sent her mortgage payment to a jewelry store that her

husband had bought their engagement/wedding rings at. The jewelry

store was gracious enough to provide a letter explaining the mistake

and the lender and credit bureaus took it off her credit reports and

raised her score.

 

Here are some websites that may be of interest to you:

 

www.mix6.com (free info on credit repairs including sample

letters to write to the three credit bureaus.)

 

www.ftc.com (Federal Trade Commission makes excellent resources

available on their website. The publication, "Building a Better

Credit Report", can be printed from this site and provides specific

guidance on correcting credit report errors.)

 

The Three Credit Agencies or Repositories:

 

Equifax (www.equifax.com) 1-800-685-1111

Experian (www.experian.com) 1-800-397-3742

Transunion (www.transunion.com) 1-800-916-8800

 

Just some helpful hints on improving credit profile:

 

1) Pay your bills on time (Obviously!)

2) Dont max out your credit cards! (I've been told not to go over

50% of your limit by a few lenders and account executives)

3) Pay more than the minimum payment (Even if it's an extra $10!)

4) Limit the number of credit cards you have (Again, the standard

for most lenders and banks is three credit cards. Fewer than three

doesnt seem to be enough proof of sufficient credit and more than

three shows a lender that the borrower may be a big spender or

tempted to spend after a home or property purchase)

5) Review your credit report at least once a year! (I've heard

that you are entitled to one free credit report every 12 months from

each agency...I need to verify this..not 100% sure)

 

Hope this answers some concerns and questions regarding credit

reports and how they relate to applying for a mortgage.

 

Andrew (Moderator/Mortgage Consultant/Investor)

[mpine 0]

Here is the advice I give borderline clients and those that do not qualify for a loan.

 

1. Get all credit cards below 50%, the lower the better

2. Pay down all other debts as soon as possible

3. Order your 3 score report, and DISPUTE EVERYTHING

4. Get a secured loan from your bank, and pay it back early

5. Keep immaculate records

6. Make all Payments on time

7. Always deposit your full checks into the bank. You can take your money out later.

 

In a 12 month period I have seen scores rise over 100 points doing this. Nothing is sure fire, but doing the right things can only help. Another big key to getting convetional finacing is getting your DTI around 45% (comfy room below 50%)From what I have seen, a good 4 out 5 negatives can be removed with a forceful letter writing campaign.

 

Write your first letter, and state account #, item in dispute, and dates. They have 30 days from the day received to get back to you. On Day 30 send out follow up letters if you have not received feedback, and simply state you wish to resolve this immediately or you will bring in legal counsel to remove said marks.

 

I always tell my clients to send all mail Certified, 2 day postal ($1.98 I believe)

[Andrew Ikeda 0]

Thanks mpine!

 

For those of you reading this, mpine has a great plan and ideas for simplifying your credit history! I guess great minds think alike, eh?

 

Andrew

[-Tony- 0]

It kinda funny cause we ran my wifes tri-merge report a couple of nights ago. Much to our surprise it wasn't as bad as she thought it was, but we were thinking about questioning things on it to see if they would take them off.

 

Does anyone have a sample letter that has worked for them?

 

Thanks

[mpine 0]

Tony,

 

Just write a simple form letter, do not disclose any information other then the account number and item in dispute and any dates you may have. The burden of proof is on them.

 

Mike

[Andrew Ikeda 0]

Tony,

 

The www.mix6.com has letters and examples of letters that should help.

 

Andrew

[-Tony- 0]

Thanks

[lacashman 0]

For some good credit info try this link.

 

Credit Net