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Bad Credit, No Credit or Low Scores? Simple Fixes.

March 23, 2017

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Do you know what is showing on your credit report?   Have you checked lately?  If not, then maybe you should today.  CreditKarma has a handy “soft pull” system (no hit to your FICO) to see what changes have occurred with all three major credit bureaus.  You can get updates every 7 days and even look at past pulls to compare how you have improved.  Remember, as a consumer you do have legal rights to protect yourself from companies injuring your credit.  You can also get a free annual credit report from each bureau on http://www.annualcreditreport.com.

Cleaning up your credit before a major purchase is vital.  The cleaner the credit the less riskier you will seem to the creditor and the better the rate/terms you will receive.  This could equal thousands of dollars in savings.  You work too hard.  So don’t throw your money away.

You can request disputes online and receive email notifications once the disposition has been updated.  Many don’t realize they can remove name variations, incorrect addresses, old phone numbers or even past employers if needed.   Many times there are duplicate accounts or illegally re-aged collections that are being reported that can also injure your score too.  We find some clients that have child support and student loans in collections that will be required to be current and good standing when applying for a home loan.

Good news is the credit bureaus have decided to remove tax liens and judgments from public records sometime in July for liens and judgments reported that do not contain all of the information: a name, an address, and either a date of birth or a social security number.  This will help many improve their scores.  Read: http://fortune.com/2017/03/13/fico-credit-scores-personal-finance/

Our best advise is to payoff any small credit cards to get the maximum points and to even request credit line increases about 90 days prior to applying for credit.  It can take up to 90 days to update balances.   Keep in mind that you are measured on how much credit you are granted, how much you are using and how old the account is.  We recommend having at least 4 open good standing accounts to continue building your credit.  Many people think you are required to use the credit cards every month and to maintain a balance…this is not true.  Just use the card every so often and pay it off before the grace period to keep the account open.  If you call and verbally close a good standing account you will lose about 20 points when doing so, but if the creditor closes the account due to no activity you will not lose any points.

When applying for a mortgage all disputed accounts will be required to be settled, deleted, or resolved prior to closing your loan.  This can be tricky and time consuming to get the bureaus to update this.  You can call, request online or by mail.

To get the best financing promotions/rates, your goal is to maintain a 720+ mid FICO.  It is best to always stay on top of your credit profile.  You don’t have to hire a credit repair company and pay high fees to clean up your credit.  You can do this on your own.  Here is some great information e found online regarding errors reported by credit bureaus:

From: http://www.creditinfocenter.com/forms/sampleletter12.shtml

The following is a sample letter informing a credit reporting agency that you have filed suit against them.  Make sure to edit this one carefully to include all of your correct information. Some of the language in this letter was from an identity theft case so you will have to tailor the verbiage to fit your situation. You will also want to provide them with a copy of the filed lawsuit.

This letter is part of our debt validation section. We have other sample letters to handle a variety of credit situations. Here is the list.

Date

Your Name
Your Address

Credit Bureau
Bureau Address

RE: Your Social Security Number

Dear Credit Bureau,

Enclosed is a copy of the lawsuit that I filed against you in (your county) court on (date of filed). Currently, the Pretrial Conference is scheduled for (insert date and time and location). The case number is (insert case #).

The lawsuit was filed due to the utter lack of response from your company. When someone is the victim of identity theft, it is simply a nightmare trying to get false information removed from a credit file. I have contacted all of the false creditors listed on my credit file. I have challenged all of the false listings on my credit file. Nothing ever happens to fix the situation.

Over 90 days ago I wrote each the creditors in question and demanded proof that I am their customer. I asked for proof of the alleged debt, including specifically the alleged contract or other instrument bearing my signature. So far none of them has been able to provide such proof to me. I have sent follow-up letters to each of them and there is still no proof. I have attempted phone contact, but I simply get transferred around and nothing ever gets accomplished.

I have fully investigated my rights in this matter. Under the doctrine of estoppel by silence, Engelhardt v Gravens (Mo) 281 SW 715, 719, I may presume that no proof of the alleged debt, nor therefore any such debt, in fact exists. I have copies of the certified letters and dates prepared to bring to court on April 10th. Also, under the Fair Credit Reporting Act, these disputed items may not appear on my credit report if they cannot be supported by any evidence.

Under the Fair Credit Reporting Act, if they cannot verify the debt within 30 days, then it must be removed. Your letters to me claim to have “verified” the debt, but this is in fact not true under law. Simply contacting the alleged creditor and asking them to match up numbers in their database is no sufficient verification for identity theft. Of course the information matches up. Someone clearly used my information without my authorization.

Now I am suing Equifax for being such a pain in the posterior to me. I have provided more than sufficient evidence to get these false accounts removed.

You may contact me before (insert date) via letter at my address listed at the top of this letter. This matter can be settled simply by your agreement to remove the false information from my credit file.

I require a response, on point, in writing, hand signed, and in a timely manner. If I get another pointless letter from you saying that it has already been “verified” then there will be no more opportunity for negotiation. This will proceed in court until I have successfully proven to a judge that this false information must be removed from my credit file. I will also be aggressively pursuing the full judgment that I can get against Equifax for violation of the Fair Credit Reporting Act and Defamation.

I have already won a similar lawsuit against TransUnion. Enclosed is a copy of that settlement. I will agree to a similar settlement with Equifax, if you contact me before (insert date). If you accept the same terms as TransUnion did, then I will dismiss my lawsuit against Equifax and you will not need to appear in (my county and state).

The items to be removed from my credit report are listed as follows:

(list all accounts and account numbers)

I look forward to your response.

Sincerely,

Your Signature

Your Name
SSN# 123-45-6789
Attachment included

More great info:

http://www.experian.com/blogs/ask-experian/category/credit-advice/report-advice/dispute/delete-information/

We hope this was informative.  Let us know how we can help.

PMC offers CPA/P&L/Balance Sheet and Personal/Business Bank Statement Loans (single account – using average monthly deposit averages-100% from personal and 50% from business) and also has other low doc home loans for 500+ FICO borrowers.

Our goal is to find you the best financing available to save  you the most money.  Ask the experts.  Email your scenario to info@pmccanhelp.com.

Make sure to visit our website:   www.pmccanhelp.com

FOR A FAST PRE-APPROVAL: Complete a loan application on our website APPLY ONLINE

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